FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

KonkaGroupCo.,Ltd.

2024AnnualReport

2025-34

April2025

FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

SectionIImportantNotes,TableofContentsandInterpretations

TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofKonkaGroupCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteetheauthenticity,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.

CAOShiping,theCompany'slegalrepresentative,NIEYong,CFO,andPINGHeng,theHeadofthefinancialdepartment(ChiefAccountant)herebydeclarethattheyguaranteethefinancialinformationintheannualreportistrue,accurateandcomplete.

AlltheCompany’sdirectorshaveattendedtheboardmeetingforthereviewofthisreport.

Anyplansforthefutureorotherforward-lookingstatementsmentionedinthisReportanditssummaryshallNOTbeconsideredasabsolutepromisesoftheCompanytoinvestors.Therefore,investorsareremindedtoexercisecautionwhenmakinginvestmentdecisions.

TheCompanyplansnottodistributecashdividends,issuebonusshares,orconvertcapitalreserveintosharecapitalfortheyear.

FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

TableofContents

SectionIImportantNotes,TableofContentsandInterpretations ...... 2

SectionIICompanyProfileandFinancialIndicators ...... 8

SectionIIIDiscussionandAnalysisoftheManagement ...... 13

SectionIVCorporateGovernance ...... 40

SectionVEnvironmentalandSocialResponsibilities ...... 68

SectionVIImportantMatters ...... 80

SectionVIIChangesinSharesandShareholders ...... 100

SectionVIIIPreferenceShares ...... 104

SectionIXBonds ...... 105

SectionXFinancialReport ...... 111

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DocumentsAvailableforReference

1.ThefinancialstatementswiththesignaturesandsealsoftheCompany’slegalrepresentative,ChiefFinancialOfficerandheadofthefinancialdepartment;

2.TheoriginalcopyoftheIndependentAuditor’sReportwiththesealoftheCPAfirmandthesignatures&sealsofthecertifiedpublicaccountants;

3.TheoriginalsofalltheCompany’sdocumentsandannouncementsdisclosedtothepublicintheReportingPeriod;

4.ThisReportanditssummarywiththesignatureoftheCompany’slegalrepresentativeandthesealoftheCompany;and

5.Otherrelatedinformation.

FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

Interpretations

Interpretations

FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

Wankaida

FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

ShangraoKonkaElectronicTechnologyInnovation

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SectionIICompanyProfileandFinancialIndicators

I.CorporateInformation

Stockname

II.ContactInformation

III.MediaforInformationDisclosureandPlacewherethisReportIsLodged

IV.ChangestoCompanyRegistration

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(ifany)

V.OtherRelatedInformationTheindependentauditfirmhiredbytheCompany:

TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyinthereportingperiod

□Applicable√Notapplicable

TheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyinthereportingperiod:

□Applicable√Notapplicable

VI.KeyFinancialInformation

Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.

□Yes√No

Indicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafternon-recurringgainsandlosseswasnegativeforthelastthreeaccountingyears,andthelatestindependentauditor’sreportindicatedthattherewasuncertainty

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abouttheCompany’sabilitytocontinueasagoingconcern.

□Yes√NoIndicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafternon-recurringgainsandlosseswasnegative.

√Yes□No

Item

VIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards

1.NetProfitandEquityunderCASandIFRS

□Applicable√Notapplicable

None.

2.NetProfitandEquityunderCASandforeignaccountingstandards

□Applicable√Notapplicable

None.

VIII.KeyFinancialIndicatorsbyQuarter

Unit:RMB

Whethertherearesignificantdifferencesbetweentheabovefinancialindicatorsorthesumandtherelevantfinancialindicatorsinthecompany'sdisclosedquarterlyreportsandsemi-annualreports

□Yes√No

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IX.Non-recurringProfitsorLosses

√Applicable□Notapplicable

Unit:RMB

Item

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recognizedinalumpsumduetothecancellationormodificationoftheequityincentiveplan

Particularsaboutothergainsandlossesthatmeetthedefinitionofnon-recurringgain/loss:

□Applicable√NotapplicableExplanationonthedefinitionofnon-recurringprofitandlossitemsasrecurrentprofitandlossitemsintheExplanatoryAnnouncementNo.1onInformationDisclosureofCompaniesPubliclyIssuingSecurities-Non-recurringProfitandLossItems

√Applicable□Notapplicable

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SectionIIIDiscussionandAnalysisoftheManagement

I.IndustryOverviewfortheReportingPeriodAtpresent,theCompany'smainbusinessesincludeconsumerelectronicsandsemiconductorbusinesses.Therelevantindustriesaredescribedbelow:

(I)ConsumerelectronicsindustryIntermsofthecolorTVindustry,sinceChinaimplementedthepolicyoftrade-inofconsumergoods,China'scolorTVmarkethasenteredthechannelofmediumandhigh-endcompetitionupgrading.StatisticsfromAVCshowthatin2024,theretailsalesofChina'scolorTVmarketswere

30.86millionsets,down1.8%YoY,buttheretailsaleswereRMB127.1billion,up15.7%YoY.WiththecontinuousdevelopmentoffuturedisplaytechnologiesrepresentedbyMiniLEDandMicroLED,aswellastheintelligentupgradeofvariouselectronicproductsdrivenbytheInternetofThings(IoT),bigdata,cloudcomputing,andartificialintelligence,thedevelopmentofnewTVcategoriesacceleratedin2024.Thepenetrationrateofnewdisplaytechnologies,highrefreshrates,andlarge-sizemid-to-high-endproductshasbeenincreasing.Regardingnewdisplaytechnologies,MiniLEDtechnologyenteredaphaseofrapidpopularizationin2024.AVC'sstatisticsshowthattheretailpenetrationrateofChina'scolorTVMiniLEDmarketwas9.8%in2024,up5.4%from2023.Intermsofhighrefreshrates,aslivingstandardscontinuetoimprove,consumers'pursuitofqualityviewingandgamingexperienceshasbecomeincreasinglyhigh.Consequently,TVswithhighrefreshrateshaveseenacontinuousriseinsalesduetotheirabilitytoprovidesuperiorimagequality.AVC'sstatisticsshowthattheretailpenetrationrateofcolorTVswithrefreshratesabove120HzinChina'smarketwas31.9%in2024,up16.4%from2023.Intermsoflargesize,thetrendoflargescreeninChina'scolorTVmarketcontinues,andtheproportionofsalesofproductsof75inchesandabovehassteadilyincreased.AVC'sstatisticsshowthattheretailpenetrationrateof75-inchproductsinChina'scolorTVmarketwas19.9%in2024,up6.4%from2023.

Intermsofthewhitegoodsindustry,thepaceofproductupgradesacceleratedin2024,withenhancementsinbasicfeaturesandperformance.Simultaneously,theirproductsaremorebeautiful,healthyandintegrated.Thisstructuralupgradeinproductshasdriventhegrowthinsalesofhigh-qualityhomeappliances.Intermsofrefrigerators,thestatisticaldatafromAVCshowsthattheChineserefrigeratormarketperformedsteadilyin2024.Thetotalretailvolumeacrossallchannelsreached40.19millionunits,withaYoYincreaseof4.9%,andtheretailsalesamountedtoRMB

143.4billion,growingby7.6%YoY.Theproportionofmid-to-high-endproductshasbeencontinuouslyrising.Intermsofwashingmachines,statisticsfromAVCshowthatthedomesticwashingmachinemarketmadesteadyprogressin2024,withomni-channelretailsalesof42.97millionunits,growingby7.3%YoY;AndtheretailsalesamountedtoRMB101.4billion,growing

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by7.6%YoY.Asidefromtheriseinsalesvolume,theaveragesellingpriceofwashingmachinesalsosawasteadyincrease.Intermsofairconditioners,accordingtothestatisticaldataofAVC,in2024,theannualproductionofdomesticairconditionersinChinareached195.08millionunits,withaYoYincreaseof19.5%.Thetotalsalesvolumewas189.77millionunits,withaYoYincreaseof20.9%.Boththedomesticandoverseassalesscalesofairconditionershaveincreased.(II)SemiconductorindustryThesemiconductorindustryisastrategic,fundamentalandleadingindustrythatsupportseconomicandsocialdevelopmentandsafeguardsnationalsecurity.Drivenbythedevelopmentof5G,artificialintelligence,theIoT,andintelligentialization,thesemiconductorindustryisexpectedtousherinanewwaveofgrowthcycles.Amongthem,semiconductorstorageisthelargestsubdivisioninthesemiconductorindustryinrecentyears.Atpresent,SouthKoreancompaniesrepresentedbySamsungandHynixareintheleadingpositioninthefieldofsemiconductorstorage.Chinahasalsoacceleratedinboostingtheproductioncapacityofsemiconductorstorageinrecentyears.Itisexpectedthattheself-sufficiencyratewillcontinuetoincrease.

MicroLEDistheprevailingtrendanddevelopmentdirectionoffuturedisplaytechnology.Theindustrialchainisdividedintofourmainlinks:upstreamchipmanufacturingandmasstransfer,midstreampanelmanufacturing,anddownstreamcompletemachineapplication.TheMicroLEDhaswideindustrialapplicationandabroadmarket.

II.PrincipalActivityoftheCompanyintheReportingPeriod

(I)Consumerelectronicsbusiness

Thisdivisionprimarilycomprisesthemultimediasub-divisionandthewhitegoodssub-division,withdetailsasfollows:

1.Themultimediabusiness

TheCompany'smultimediabusinessfacestheglobalmarket,mainlyincludingdomesticcolorTVbusinessandexportcolorTVbusiness.

ThedomesticcolorTVbusinessmainlyfocusesontwobusinessmodels:B2B(anabbreviationforBusiness-to-Business,thatis,business-to-business)andB2C(anabbreviationforBusiness-to-Consumer,thatis,business-to-consumer).Branches,businessdepartments,andafter-salesmaintenanceserviceoutletshavebeenestablishedacrossthecountry.TheoperatingprofitisderivedfromthepricedifferencebetweenthecostofcolorTVproductsandtheirsellingprices.

AsforsellingitscolourTVsabroad,theCompanymainlyreliesonB2B.ItscolourTVsaresoldtoAsiaPacific,MiddleEast,Central&SouthAmerica,EastEurope,etc.AndoperatingprofitsourceisalsothedifferencesbetweenthecostsandthesellingpricesofitscolourTVs.

2.Thewhitegoodsbusiness

ThewhitegoodsproducedbytheCompanymainlyincluderefrigerators,washingmachines,airconditioners,freezers,etc.,whicharesoldthroughB2BandB2Cmainlytothedomesticmarket.

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TheCompanyprofitsfromthemarginsbetweenthecostsandthesellingpricesofitswhitegoods.Throughthemergerandacquisitionofthe"Frestec"brand,theCompanystrengthenedthewhitegoodsbrandfoundation;ByestablishingaNingboair-conditioningproductionbasethroughajointventure,theCompanyhasbuiltupitsownair-conditioningmanufacturingcapabilities;ByacquiringtheChinesefactoryofBeko(front-loadingwashingmachine),theCompanyhasmadeupforthetechnicalshortcomingsinfront-loadingwashingmachineproduction;ByconstructinganewXi'anSmartHomeApplianceIndustrialPark,theCompanyexploresanddevelopsthedishwasherbusiness;Inaddition,theCompanyiscurrentlyoptimizingeachlinkof"research,production,supply,salesandservice"internally,integratingchannelresourcesexternally,achievingchannelreusewiththeupstreamsupplysideandthedownstreamchannelside,andcontinuouslyimprovingtheproductsalesstructureandcompetitivenessofitswhitegoodsbusiness.

(II)SemiconductorbusinessCurrently,theCompanyhasestablishedapresenceinthesemiconductoroptoelectronicsfield,withafocusonthreemajorbusinesssegments,includingMicroLED&MiniLEDchips,masstransfer,anddisplaytechnology,advancingthetransformationofitsoptoelectronicsbusinessfromtechnologicalR&Dtoindustrialization.Afterindustrialization,theCompany'soperatingprofitswillbederivedfromthespreadbetweenproductcostsandsalesprices.

(III)PCBbusinessTheCompany'sPCBbusinessprimarilyfocusesonmetalsubstrateproducts,thickcopperproducts,highmulti-layerandHDI(high-densityinterconnect)products,andrigid-flexproducts.OperatingunderaB2Bbusinessmodel,theCompanytargetsfourmajorelectronicsfields,namelynewenergy,automotiveelectronics,communications&datacenters,andnewconsumerelectronics.Profitabilityisachievedthroughthespreadbetweenproductcostsandsalesprices.III.CoreCompetitivenessAnalysisTheCompany'scorecompetitivenessliesinitsmanufacturingability,R&Dability,brand,marketingnetworkandhumanresources.Intermsofmanufacturingcapabilities,theCompanyhascarriedoutintelligentupgradingandtransformationofitsproductionandmanufacturingbasesinplacessuchasAnhui,Dongguan,Xi'an,Suining,andXinxiang.Amongthem,theKonkafactoryinAnhuihasbeenawardedthetitleof"NationalIntelligentManufacturingDemonstrationFactory",anditsintelligentmanufacturinglevelhasreachedanadvancedlevelintheindustry.IntermsofR&D,theCompanyhasestablishedathree-levelR&Dsystemconsistingof"ResearchInstitute+KeyLaboratory+ProductR&DCenter".IthassetupcomprehensiveAIandIoTlaboratoriesand5GUltraHDlaboratoriesincooperationwithmajoruniversitiesorscientificresearchinstitutions,andestablishedanacademicianworkstation.TheCompanyhasalsoformedatechnologyresearchalliancethatmatchesitsindustriallayout.Itpossessesnearlyahundredcoreandkeytechnologies,aR&Dteamofapproximately1,400members,andhasrecruitedahundredindustrytechnicaltalents

FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

foritsMicroLEDproject.Intermsofbrand,theCompanycontinuestopromotebrandstrategyconstruction,systemconstruction,imageconstructionandculturalconstruction,focusesonimprovingthescientificandinternationalimageoftheenterprise,strengthensthebrandstatus,hasacertainbrandawarenessandreputationintheconsumergroup,andhasgoodbrandcreditinbanksandotherfinancingchannels.Intermsofmarketingchannels,theCompanyinnovateschannelreform,cooperatesonlineandofflineforwin-winresults,andstrivesfordevelopmentathomeandabroad.Inofflinechannels,theCompanyhas48branchesinprovincesandcitiesacrossthecountry,morethan5,000after-salesservicestores,anditsmarketingandservicenetworkcoversthewholecountry;Throughonlinechannels,theCompanyhassettledine-commerceplatformssuchasTmall,JD.com,Suning,Vipshop,Pinduoduo,etc.,toexplorethedevelopmentoflivee-commercebusinessandseeknewgrowthpolesforbusinessdevelopment;Inoverseaschannels,theCompany'sbusinesscoversLatinAmerica,Europe,Asia-Pacificandothercountriesandregions,andhasasoundmarketingnetwork.Intermsofhumanresources,theCompanyboastsaleadershipteamofmanyyearsofmanagementandindustryexperience,aswellasahighqualityexecutionteam.IV.CoreBusinessAnalysis

1.OverviewIn2024,theCompanypromotedreformandtransformation,continuedtodeepenthestrategicdeploymentof"oneaxis,twowheelsandthreeengines",activelypromotedbusinessrestructuring,furtherpromotedspecialactionssuchasassetrevitalization,unifiedlegalentitymanagement,andmanufacturingefficiencyimprovements,advancedvariousproductionandoperationtasks,therebyachievingpositiveoperatingcashflows,andlayingafoundationfortheCompany'sdevelopmentinthenextstage.

In2024,theCompanyachievedoperatingrevenueofRMB11.115billion,down37.73%YoY,andnetprofitattributabletoshareholdersofthelistedcompanyofRMB-3.296billion,down

52.31%YoY;cashflowsfromoperatingactivitiesremainedpositive.

(1)Reasonsforperformancechangesin2024

①In2024,theCompanyfocusedonitstwomainbusinesses,namelyconsumerelectronicsandsemiconductors,continuedtooptimizeandintegrateitsbusinessstructure.TheCompanyproactivelyexitednon-corebusinessesandthosewithweakempowermenttocorebusinessesandinacontinuouslossstate.Asaresult,theCompany'srevenuesawacertaindecline.

②In2023,astheCompanydisposedofsharesinaninvesteecompanyandrecognizedthesharesastradingfinancialassetsforaccounting,approximatelyaprofitofRMB750millionwasgenerated;however,therewasnosimilarlargenon-recurringprofitin2024.Therefore,theCompany'sNPAtSfor2024decreasedYoY.

③In2024,theproductionefficiencyoftheCompany'scolorTVbusinessimprovedandtheproductcompetitivenessgraduallyincreased;however,affectedbyfactorssuchasintensified

FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

marketcompetition,continuousfluctuationsinthesupplychainandlimitedspaceforrigidcostreduction,theCompany'scolorTVbusinesscontinuedtofacepressureandwasstillinalossstate.

④In2024,inordertoacceleratetheindustrializationprocessofsemiconductorbusiness,theCompanycontinuedtoincreaseinvestmentintheindustrializationofMLED(collectivelyreferredtoasMicroLEDandMiniLED),andmadecertainprogressinthesalesofMiniLEDdisplayproducts;however,astheCompany'ssemiconductorbusinesswasstillintheearlystageofindustrialization,itdidn'tachievedlarge-scaleandefficientoutput,whichaffectedtheCompany'sprofitability.

⑤In2024,basedontheprincipleofprudence,theCompanymadeaprovisionforimpairmentofassetsofRMB1.345billionaccordingtoitsaccountingpoliciesandestimates,resultinginadecreaseinprofits.

⑥In2024,thevaluechangesoffinancialassetsmeasuredatfairvalueheldbytheCompanyandtheincreaseofcontingentconsiderationresultedintheCompany'sprofitorlossfromchangesinfairvalueofaboutRMB-363million.

(2)Keytasksfor2024

①SolidlypromotetheCompany'sstrategictransformation

Underthenewdevelopmentframeworkof"oneaxis,twowheelsandthreeengines",theCompanyheldstrategictheory-discussingmeetingsandbusinessseminarsin2024,andconductedin-depthanalysisandsystematicplanningcenteredonkeyissuessuchasfocusingoncorebusinessdevelopmentandimprovingoperationalandmanagementefficiency,resultingintheidentificationofsevenkeytasks,including"adjustingthelayout"and"focusingonbreakthroughs",andtheformationoftheImplementationMeasuresforReformandDevelopmentofKonkaGroup.In2024,centeredonitstwomainbusinesses,namelyconsumerelectronicsandsemiconductors,theCompanyoptimizedandintegrateditsbusinessstructure,anddecisivelyexitednon-corebusinessesandthosewithweakempowermenttothecorebusinessesandinacontinuouslossstate.TheCompanyclarifiedanew"1+4+N"managementstructure,redirectingresourcestocorebusinessessuchascolorTV,whitegoods,semiconductors,andPCB.

②Deepenreformandinnovation

TheCompanypromotedassetrevitalizationthroughorganizationalleadership,establishingthe"AssetRevitalizationTaskForce"in2024.Aweeklyreportingmechanismwasimplemented,andover200assetswererevitalizedthroughouttheyear,generatingcashinflowsofmorethanRMB1.5billion.Asaresult,theCompany'sassetstructurewasoptimized.

TheCompanyalsoinnovateditsmanagementmodelbyfocusingonunifiedlegalentitymanagement.In2024,theCompanyestablishedthe"UnifiedLegalEntityManagementTaskForce"tosystematicallysortoutandclarifythe2025businessobjectivesforthefirstbatchof27majorlegalentities.Asaresult,theCompanyhascompletedtherestructuringofcomprehensive

FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

budgeting,monitoringmodels,andbusinessanalysis,transitioningfromthemanagemententitytothelegalentity.TheCompanydroveapositiveoperationalcycleforitsproductionbasesthroughmanufacturingefficiencyimprovements.In2024,theCompanyestablishedthe"ManufacturingEfficiencyImprovementTaskForce",formulatedamanufacturingefficiencyimprovementplan,andsetcleargoalsforefficiencyimprovementsofitsmanufacturingbases.In2024,theCompanymademilestoneprogressinitsmanufacturingcapabilities.Specifically,theFrestecrefrigeratorandfreezerfactorycompleteditsrelocationandbeganproduction;thedishwasherprojectofShaanxiKonkaSmartHomeApplianceCo.,Ltd.wassuccessfullylaunched;thenewmanufacturingplatformfordrumwashingmachinesofJiangsuKonkaSmartApplianceCo.,Ltd.achievedmilestoneresults;ChengduKonkaElectronicsCo.,Ltd.implementedvariousmeasurestoenhancemanufacturingefficiency,withproduction21%,22%,and40%YoYrespectively.

TheCompanyleveragedmarketingreformtodrivemarketgrowth.In2024,itestablishedthe"MarketingReformTaskForce"toimprovebusinesstravel,commissionandpaymenttermmanagementsystems,whileprogressivelycentralizinglogistics,serviceandonlinedistributionplatforms.Additionally,theCompanyactivelypromotedtheintegrationofwhitegoodsandbrowngoodsmarketing,formulatingimplementationplansandspecifictargetsfortheintegration.

③Continuouslyimprovethemanagementefficiency

Intermsofoperationalmanagementandcontrol,theCompanycomprehensivelysortedoutandreformeddecision-makingmanagementmechanisms,andrevisedrelevantmanagementsystems.Itcontinuouslystrengthenedcashflowbudgetingandimplementationcontrol,adheringtotheoverarchingprincipleof"determiningexpensesandinvestmentsbasedonrevenue".Cashoutflowsweremanagedonaten-daycycletoensurethattheCompany'soperatingcashflowsremainedpositivein2024.

Intermsofcostreductionandexpensecontrol,theCompanyimplementedthefull-processexpensemanagementmechanismandthe"3+3"costreductionmeasures,establishingmonthlybudgetreviewsandspecializedcontrolsforexpenseitems.Periodexpensesfor2024totaledRMB

2.4billion,downRMB410millionYoY(-14.44%).

④Continuouslyimprovetheindustrialcapacity

Steadyimprovementofproductefficiency:in2024,thecolorTVbusinesssuccessfullylaunchedflagshipproductssuchasA8andGrandX7seriesinmassproduction.TheCompanyintroducedtheTianjingMiniAI-LEDA8flagshipproductseries,achievingtheupgradingofproductsystem;Thewhitegoodsbusinesshaspromotedthelaunchofproductssuchasthe462-literseriesand500-literseriesofcross-four-doorflush-mountedrefrigerators,thebrand-newZhencaiseriesofwashingmachines,andthe10kgsingle-washingautomatic-dosingwashingmachine,whichhasenhancedtheproductimage.Theintroductionofdouble-sidedaluminumsubstrate

FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

productsintothePCBbusinessmadeupforthevacancyindouble-sidedaluminummassproductionandlaidafoundationfortheadjustmentoftheCompany'sproductstructure.Steadyimprovementinmanufacturingefficiency:intermsofcolorTVbusiness,in2024,thecomprehensiveunitsperpersonperhour(UPPH)ofAnhuiKonkaElectronicsCo.,Ltd.,DongguanKonkaElectronicsCo.,Ltd.andChengduKonkaElectronicsCo.,Ltd.increasedby20.6%,13.3%and9.6%YoYrespectively;inaddition,unitmanufacturingcostswerereducedby16.6%,3.2%,and46%YoY,andtheOEMbusinessscalegrewby47%YoY;Intermsofwhitegoodsbusiness,in2024,theintegratedUPPHvalueofthemanufacturingbaseincreasedby7%YoY,andthemanufacturingcostdecreasedsignificantlyYoY.Steadygrowthinoverseasbusiness:in2024,theoverseasbusinessrevenueofwhitegoodsincreasedby47%YoYandprofitsincreasedby51%YoY.Amongthem,airconditionerrevenuegrewby85%YoY;washingmachinerevenuegrewby47%YoY;freezerrevenuegrewby130%YoY;refrigeratorrevenuegrewby22%YoY.Additionally,thedishwasherexportbusinesssawsuccessfulshipment;TheoverseasbusinessofcolorTVshasacquired23newcustomers,andtheself-ownedbrandbusinesshasbeenlaunchedinSriLanka.

Steadybreakthroughsinscientificresearchandtechnology:in2024,theCompanywon4nationalawardsand6provincialandministerialawards;thecolorTVbusinesshasdevelopedthe110-inchMiniLEDA8PROTVwith230,000partitions;Thehigh-qualityspecialprojectofChongqingKonkaOptoelectronicTechnologyCo.,Ltd.passedtheon-siteacceptance;Thefirstbatchof-25℃/-40℃medicalfreezersdevelopedbyFrestechasbeenapprovedwiththe"MedicalFreezer"medicaldeviceregistrationcertificate.Meanwhile,thecombinedcommercialultra-low-temperaturecoldstoragedevelopedbasedontheinverseBraytonrefrigerationtechnologyhasbeensuccessfullytested.

2.RevenueandCostAnalysis

(1)Breakdownofoperatingrevenue

Unit:RMB

2024

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memorychipbusiness

(2)OperatingDivision,ProductCategory,OperatingSegmentorMarketingModelContributingover10%ofOperatingRevenueorOperatingProfit

√Applicable□Notapplicable

Unit:RMB

Corebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberforthereportingperiod:

□Applicable√Notapplicable

(3)WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue

√Yes□No

Anyover30%YoYmovementsinthedataaboveandreasons

□Applicable√Notapplicable

(4)Executionprogressofmajorsignedsalesandpurchasecontractsinthereportingperiod

□Applicable√Notapplicable

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(5)BreakdownofcostofsalesByproductcategory

Unit:RMB

Byproductcategory

NoteCostofsaleschangedaccordinglywithoperatingrevenue.

(6)Changesinthescopeofconsolidatedfinancialstatementsforthereportingperiod

√Yes□No

(7)MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod

□Applicable√Notapplicable

(8)MajorCustomersandSuppliers

Majorcustomers:

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reportingperiod(%)

Topfivecustomers

Otherinformationaboutmajorcustomers

√Applicable□NotapplicableNoneofthetopfivecustomerswererelatedpartiesoftheCompany.NoneoftheCompany’sdirectors,supervisors,executiveofficers,coretechnicians,over5%shareholders,DeFactoControlleroranyotherrelatedpartiesheldequityinterestsinthemajorcustomers,directlyorindirectly.

Majorsuppliers:

Topfivesuppliers:

Otherinformationaboutmajorsuppliers

√Applicable□NotapplicableNoneofthetopfivecustomerswererelatedpartiesoftheCompany.NoneoftheCompany’sdirectors,supervisors,executiveofficers,coretechnicians,over5%shareholders,DeFactoControlleroranyotherrelatedpartiesheldequityinterestsinthemajorcustomers,directlyorindirectly.

3.Expense

Unit:RMB

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2024

4.R&DInvestments

√Applicable□Notapplicable

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methodswithindependentintellectualpropertyrights.

DetailsaboutR&Dpersonnel

DetailsaboutR&Dinvestments

ReasonforanysignificantchangeinR&Dpersonnelcompositionandtheimpact:

□Applicable√NotapplicableReasonsforanysignificantYoYchangeinthepercentageofR&Dinvestmentsinoperatingrevenue:

□Applicable√NotapplicableReasonforanysharpvariationinthepercentageofcapitalizedR&Dinvestmentsandrationale:

□Applicable√Notapplicable

5.CashFlows

Unit:RMB

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operatingactivities

MaininfluencingfactorsforsignificantYoYchangesinrelevantdata

√Applicable□NotapplicableReasonsforthechangeinnetcashflowsfromoperatingactivities:thesalespaymentcollectionscaleoftheCompanyduringthereportingperiodhasnarrowedYoY,andthegovernmentgrantsreceivedduringthisperiodhavedecreased.Reasonsforthechangeinnetcashflowsfromfinancingactivities:thecashpaidbytheCompanytorepaydebtsinthereportingperiodincreasedcomparedwiththesameperiodofthepreviousyear.ReasonforanybigdifferencebetweenthenetoperatingcashflowandthenetprofitforthisReportingPeriod:

□Applicable√NotapplicableV.AnalysisofNon-CoreBusinesses

√Applicable□Notapplicable

Unit:RMB

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VIAnalysisofAssetsandLiabilities

1.SignificantChangesinAssetComposition

Unit:RMB

Endof2024

Indicatewhetheroverseasassetsaccountforalargerproportionofthetotalassets.

□Applicable√Notapplicable

2.Assetsandliabilitiesatfairvalue

√Applicable□Notapplicable

Unit:RMB

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2.Derivativefinancialassets

Contentsofotherchanges

SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:

□Yes√No

3.RestrictedAssetRightsasatthePeriod-End

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Total

VIIInvestmentsAnalysis

1.TotalInvestmentAmount

√Applicable□Notapplicable

2.Majorequityinvestmentsmadeinthereportingperiod

□Applicable√Notapplicable

3.Majornon-equityinvestmentsongoinginthereportingperiod

√Applicable□Notapplicable

Unit:RMB

Remark:SuiningKonkaElectronicTechnologyIndustrialParkandFrestecRefrigerationIndustrialParkareunderconstruction;Thefirst-phaseinfrastructureconstructionoftheprojectoftheSemiconductorOptoelectronicsResearchInstituteinChongqingKonkaSemiconductorOptoelectronicsIndustrialParkhasbeencompletedandpassedtheacceptanceinspection,andtheconstructionoftheremainingpartsoftheinfrastructureprojectisunderway.

4.FinancialInvestments

(1)SecuritiesInvestments

√Applicable□Notapplicable

Unit:RMB

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Varietyofsecurity

(2)InvestmentsinDerivativeFinancialInstruments

□Applicable√NotapplicableNone.

5.Useofraisedfunds

√Applicable□Notapplicable

(1)Overalluseofraisedfunds

√Applicable□Notapplicable

Unit:RMB'0,000

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(2)Committedprojectsofraisedfunds

□Applicable√Notapplicable

(3)Projectchangesofraisedfunds

□Applicable√NotapplicableTherewerenochangesinraisedfundsduringthereportingperiodoftheCompany.VIII.SaleofMajorAssetsandEquityInterests

1.Saleofmajorassets

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

2.Saleofmajorequityinterests

□Applicable√NotapplicableIX.MajorSubsidiaries

√Applicable□NotapplicableMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit

Unit:RMB

Name

Subsidiariesobtainedordisposedofinthereportingperiod

√Applicable□Notapplicable

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Informationaboutprincipalsubsidiariesandjointstockcompanies:

NoneXStructuredBodiesControlledbytheCompany

□Applicable√NotapplicableXI.ProspectoftheCompany’sFutureDevelopmentIn2025,theCompanywilladheretotheleadershipofpartybuilding,continuetothoroughlyimplementthenewdevelopmentstrategyof"oneaxis,twowheelsandthreedrives",makegooduseoffourspecialtaskforces:unifiedlegalmanagement,assetrevitalization,marketingintegrationandmanufacturingefficiencyimprovement,comprehensivelypromotethefivereforms,promotetheimplementationofkeytasksof"sixfocuses",andensurethattheoperatingperformancein2025issignificantlyimproved.

(I)Makegooduseoffourtypesofspecialtaskforcestodrivereformandtacklekeyproblems

1.TaketheunificationoflegalmanagementasthestartingpointtofocusonbusinessimprovementThefirstbatchof27legalentitiesoftheCompanysignedthebusinessmissionstatementfor2025attheendof2024.TheCompanywillfullyimplementtheperformanceassessmentmechanismforallemployees,promotetheassessmenttocoverallparticipatingenterprises,andfurtherpromotethereductionofenterpriseswithmorethanthreemanagementlevels.

2.Takeassetrevitalizationasthestartingpointtograspcashreturn

In2025,theCompanywilladvanceitsassetrevitalizationeffortsundertheprincipleof"revitalizingallavailable,maximizingcollateralutilization,sellingalleligible,andclearingallnecessary",furtherpromotetheoperationalmechanismcharacterizedbyheadquartersoverseeingtheoverallplan,specializedtaskforcesactivatingassetsonacategorybasis,businesssegmentsimplementingactionsonanitembasis,andacceleratingbreakthroughsofkeyprojects.TheCompanywilllockinannualtargets,innovateactivationmethods,andacceleratefundrecoverythroughdiversifiedmeasures.

3.Takemarketingintegrationasthestartingpointtoimproveefficiency

Firstly,expandoverseasmarkets.Firstofall,theCompanywilloptimizeitsbusinessmodel,buildoverseasbusinessstations,andbuildalocalizedmarketingorganization;Secondly,theCompanywillstrengthenthegroupgoingoverseas,implementsystematicoperations,andpromotethereuseofmulti-categorychannels;Finally,theCompanywillfocusonthecoremarket,establishbusinessbases,selectkeytargetmarketssuchasNorthAmerica,LatinAmerica,JapanandRussia,givefullplaytotheadvantagesofregions,customersandbrandstopromoteeachother,andstrengthenproductcapabilities,deliverycapabilitiesandqualitycontrolcapabilities.

Secondly,domesticintegrationandplatformempowerment.TheCompanywillfocusonblack-and-whitegoodsintegration,graspcapacitycoordination,andoptimizeresourceallocation.For

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offlinebusiness,intermsoflogistics,services,distributionplatforms,etc.,theCompanywillactivelyexplorenewmodelsofintegrationandefficiencyimprovement,andbuildone-stopservicecapabilitiesforcustomersandusers.Thee-commercebusinesswillstrengthenthebuildingofbrandofficialflag,attachimportancetothecoordinationofoperationalresourcesandtheimprovementofoperationalcapabilities,andrealizemutualempowermentofmultiplecategoriestolearnfromeachother.

4.TakemanufacturingefficiencyimprovementasthestartingpointandfocusoncostcompetitivenessFirstly,optimizetheproductionbaseandremoveexcesscapacity.TheCompanywillactivelyexploretheproductionlinecontractingmodel,andconcentrateorderstofactorieswithhighproductionefficiency,goodcostcontrolandstablequality.Secondly,strengthenproductionandmarketingcoordinationandimprovemanufacturingefficiency.TheCompanywillopenupblack-and-whitegoodsOEMandoverseasbusinesscustomerplatformstoeffectivelymatchproductioncapacityanddemand,manufacturingandmarketing,productionplansandmaterials.Thirdly,strengthenprocessinnovationandbenchmarkthefirst-classindustry.TheCompanywilltacklebottleneckstationprocessestoimproveprocessstability.Fourthly,strengthenmanagementinnovationandechelonconstruction.TheCompanywilloptimizetheproductionlinemanagementlevel,strengthentheprecipitationandreuseofR&Dandmanufacturingtalents,andimprovetheproductionstabilityoftheproductionline.Fifthly,deepenleancostreductionandenhancecompetitiveadvantage.TheCompanywillreasonablyplantheuseefficiencyofthepark,promotethestandardizationofprocessesandparts,andreduceprocurementcosts.

(II)Adheretothefive-pointreformandpromotequalityandefficiencyimprovement

1.Buildaprofessionalandefficientheadquartersmanagementandcontrolsystem

Firstly,combinefullauthorizationwitheffectivemanagement:inlinewiththebusinessoperationneeds,furtherexpandthescopeofauthorization.Atthesametime,strengthenthemanagementofauthorizationapproval.Fortheauthorizedmatters,implementtheresponsibilitysystemwiththebusinessunitstakingthemainresponsibility,andforthematterssubjecttoapprovalbytheCompany'sheadquarters,implementtheresponsibilitysystemwiththecompetentfunctionaldepartmentstakingthemainresponsibility.Secondly,strengthenthefinancialmanagementsystem:

takethefulllaunchofthefinancialsharingcenterandtheconstructionofthetreasurysystemasanopportunitytopromotefull-levelandsub-penetratingstandardizedfinancialsupervision.Atthesametime,basedontheunificationoflegalmanagementandthedual-responsibilityfieldsystemofproductlines,providerefined,preciseandleanfinancialaccountingsupport.Thirdly,improvethecompliancemanagementsystem:continuouslyimproveandstrengthentheconstructionofcompliancemanagementworkingmechanismandmanagementsystem,enhancethepenetrationofcomplianceculturecultivation,furtherpromotelegalandcomplianceoperationandmanagement,

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andkeepthebottomlineofcomplianceoperation.Fourthly,reshapetheworksafetymanagementsystem:focusontheeightelementsofworksafetystandardization,improvethenineworksafetymanagementsystems,takestandardizationasthemanagementnorm,solidlypromotetheworkof"strengtheningthefoundation"ofworksafety,consolidatethefoundationofworksafety,andcomprehensivelystrengthenprocessmanagement.

2.EstablishanoperationresponsibilitysystemwithonepostandtworesponsibilitiesForcoreproductlinessuchascolorTVs,refrigerators,washingmachines,airconditioners,anddishwashers,theproductlineleadersconcurrentlyserveasheadsofcorrespondinglegalentities.TheCompanyensuresthattheseleaderswillbeaccountablefortheoperationoftheirlegalentities,operatingindependentlyandassumingprofit-and-lossaccountability,whilebeingresponsiblefortheoverallperformanceoftheirproductlines.Inaddition,theCompanydriveshorizontalintegrationacrossproductlines,breakingdowncoordinationbarriersbetweenmultiplelegalentities,brands,anddistributionchannels,promotingoverallproductplanning,overallcapacityallocation,unifiedbrandimage,andacoordinatedmarketingstrategy.

3.Constructavalue-orientedassessmentandevaluationsystemTheCompanywilldeepentheimplementationoftheThreeSystemReforms,establishingaquantifiedassessmentandevaluationframeworktoenhancethefunctionalityofassessmentindicators.TheCompanywillalsorefinetheassessmentincentivesystembyaligningwithproductinnovation,technologicalinnovation,andproductionefficiencyimprovements.Assessmentrewarddistributionwillbecloselylinkedtotheinnovationachievement'smarketvalue,technologicalcomplexityandoverallcontributiontotheCompanyandwillfocusonareassuchasbreakthroughsincriticaltechnicalbottlenecksandthedevelopmentofnewmarket-disruptiveproducts,soastofurtherstrengthentheapplicationofassessmentandevaluationresults,andgivefullplaytotheguidingroleofassessments.

4.Buildaresult-orientedall-roundinnovationsystemTheCompanywillrevisetheinnovationincentivemeasurestocovermorefieldsandrewardincombinationwitheconomiccontributionstopromoteall-roundinnovationcoveringproducts,supplychain,manufacturing,marketing,serviceandmanagement,soastoensurethatinnovationisselectiveandtargeted,andinnovationresultscanbequantified,evaluatedandincentivized.

5.Establisha"zerotolerance"qualitymanagementsystemTheCompanyfirmlyestablishestheawarenessof"qualityasthelifeline".Firstly,promotethereformofthequalitysystemaroundthephysicalqualityofproductsandtheperceivedqualityofusers;Secondly,benchmarktheproductionsafetymanagementmechanism,establishacompleteproductqualitymanagementmechanism,compactthemainresponsibility,andassigntheresponsibilitytotheperson;Thirdly,changetheorganizationmodeofqualitymanagement,doagoodjobinthecoordinationbetweenproductquality,costanddeliverythroughthelargeproduct

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managermechanism,improvetheprofessionalabilityofthequalityteam,andbuildaqualitymanagementteamwithclearresponsibilitiesandrightsandstrongprofessionalability;Fourthly,benchmarkadvancedproducts,buildanapplicableandeffectivequalitystandardmanagementmechanism,andleadtheimprovementofproductqualitywithstandards.

(III)Adheretodeepeningthesixfocusesandacceleratetheimplementationoftransformation

1.FocusonriskpreventionandcontroltoensurethestableoperationoftheenterpriseFirstly,continuouslyimprovecashflows.TheCompanywillfocusitsresourcesonbusinessesthatcontributetopositivecashflowfromoperations.Itwillstrengthenthemanagementofprocurement,sales,inventory,themanagementofpaymenttermsandcreditlimits,aswellasthemanagementofoverdueaccountsreceivable.ItwillcontinuouslyimprovetheCompany'soperatingcashflow,strictlycontroltheinvestmentrhythm,increasetheeffortsinrevitalizingassets,conductkeyfollow-uponspecialtasks,andensureastableinflowofinvestmentcashflow.Secondly,buildadualpreventionmechanismandreshapetheworksafetymanagementsystem.TheCompanywillestablishandimprovethedualpreventionmechanismofsafetyriskhierarchicalmanagementandcontrolandhiddendangerinvestigationandmanagement,establishahiddendangerlistledger,ensurethedynamicclearingofhiddendangers,focusonacceleratingtherectificationofhistoricalsafetyproblems,clarifythetimetableroadmap,andpromotetheimplementationofrectificationplansitembyitem.

2.FocusonNo.1productandimproveproductgrossprofitcontributionTheCompanywillstrengthentheawarenessofhigh-qualityproductsandthethinkingofpopularproducts,ensurethattheNo.1productisbuiltintothemainsourceofprofitcontributionandanimportantguaranteeforbusinessimprovement,andlayasolidproductfoundationforbusinessimprovement.TheCompanywillstrengthenorganizationalsupportandclarifyplanningobjectives.EachcategorywilltaketheNo.1productprojectasthetraction,clarifytheworkingmechanismandsupportmeasures,formacontinuousclosedloopofwork,andensuretheachievementofplanningobjectives.

3.FocusonsixsynergiestostrengthenprofessionalabilityimprovementTheCompanywillstrengthenthecoordinationofsupplychain,products,manufacturing,brands,marketingandservicesofeachbusinessunit,andpromotetheimprovementofspecializedcapabilitiesofeachcategory.Forsupplychaincollaboration,itismainlytocreateafull-linkcollaborativesupplychaintopromotecostreduction,shortendeliverycycleandmaximizeoverallbenefits;Forthecoordinationofproducts,itismainlytorealizethecoordinationandintegrationofblackandwhitegoods,thecoordinationofproductsofFrestecandKonkawithinwhitegoods,thecooperationofproductsofvariouslegalentities,marketsatalllevels,domesticandforeignproducts,andthecoordinationofinternalproductlinesfromdesign,development,production,iterationandotherlinks;Formanufacturingcollaboration,itismainlytodoagoodjobinproduct,

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productioncapacity,off-peakseasonworkers,managementexperienceandotheraspectsofcollaborationbetweenmultipleproductionbases.Thefactoryfocusesonallaspectsofproductionandmanufacturing,strengthenseffectivecollaborationinternallyandbetweenupstreamanddownstream,ensuressmoothproduction,timelysupply,andimprovesorderdeliveryrateandproductionefficiency;Forbrandcollaboration,itismainlytodoagoodjobindual-brandcollaborationbetweenKonkaandFrestec,promotetheconsistencyofmulti-categorytonality,andpromotejointmarketingtoenhancebrandinfluenceandmaximizebrandvalue;Formarketingcollaboration,itismainlytosharecustomers,coordinatepromotion,maximizereuse,strengthentheactionunityofmarketingchannels,achievecustomerexperienceconsistency,andimprovechannelefficiencyandbenefitthroughtheintegrationofblackandwhitegoods;Forservicecollaboration,itismainlytoshareserviceresourcesinafter-sales,logistics,technicalsupport,appletplatform,etc.,anddealwithcustomerproblemscollaborativelytoachieveserviceconsistency.

4.FocusonleanmanagementtoimprovethequalityofbusinessoperationsFirst,striveforefficiencyandbenefitsthoughcostcontrol.Themaintasksincludestrengtheningthecoordinationmechanismoffunctionaldepartments,implementingprofessionalandrefinedcontroloverkeyexpenseaccounts,optimizingtheapprovalprocessesforvarioustypesofexpenses,andacceleratingthereductionofexpensesunrelatedtothecorebusiness.Second,striveforefficiencyandbenefitsthroughcostreduction.Themaintasksincludecontinuouslyoptimizingcoststhroughmeasuressuchasreducingmanufacturingcostsbystandardizingproductsandminimizingoperationallossesbyimprovingtheturnoverefficiency.Third,striveforefficiencyandbenefitsinmanufacturing.Themaintasksincludestrengtheningtheoptimizationofmanufacturingcosts,improvingthequalityofproductdelivery,ensuringthetimelinessofproductdelivery,enhancingcost-effectiveness,laborproductivity,firstpassyield(FPY)andyieldrate,aswellasindicatorsofthemanufacturingsystemsuchastheUPPH(unitsperpersonperhour)value,enhancingtheintroductionofnewmaterials,newmanufacturingprocessesandnewmethods,andunleashingthecreativityandmotivationoftheteam.

5.Focusonscientificandtechnologicalinnovationandacceleratebreakthroughsincoretechnologies

First,adheretoinvestmentinresearchanddevelopment.First,theCompanywillfocusontheindustry,baseitselfonitsproducts,makeprogressiveandcontinuouslyiterativearrangementsforscientificresearchandinvestinrelatedexpenses.Itwilldevelopscientificandtechnologicalinnovationsandinventionpatentswithoriginalityandfirst-moveradvantages,andstrongvaluerealizationcapabilities.Theindustrialtransformationwillreflectimmediacy,lead,empowerandservetheproducts.

Second,makegooduseofboth"AI+"and"+AI".Ontheonehand,comprehensivelyenhancethecompany'sintelligentmanufacturinglevelwith"AI+"toempowerthedevelopmentofindustrial

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products.Utilizeartificialintelligencetechnologyinexistingbusinessestoimprovemanufacturingefficiency.Ontheotherhand,use+AItoachievedisruptiveproductinnovationanditeration,strengthentheapplicationofAItechnologyinproductdesignandR&Dprocesses,andacceleratethedevelopmentofsingleproductsandsmartproductseries,andleverageAItechnologytocreatenewproductforms.

6.Focusonreformandqualityimprovement,andimprovethecorporategovernancesystemFirst,strengthenthegovernanceoflistedcompanies.ConscientiouslyimplementthedecisionsanddeploymentsoftheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil(SASAC)onimprovingthequalityofcentralstate-ownedenterprise(SOE)-controlledlistedcompanies.Leveragethecapitalmarkettodeepenreformsandpromotedevelopment,focusonaddressingtheweaknessesandshortcomingsthataffectthehigh-qualitydevelopmentoflistedcompanies,adopttargetedpoliciesandmeasures,makeprecisely-tunedefforts,enhanceassetqualityandoperationalefficiency,strengthenself-valuecreationcapabilities,anddrivetheachievementofhigh-qualitydevelopment.Second,effectivelycarryoutthe"ScienceandTechnologyReformAction"(aspecialactionfor100scienceandtechnology-basedenterprisestodeepenmarket-orientedreformsandenhancetheirindependentinnovationcapabilities).ChongqingKonkaOptoelectronicTechnologyCo.,Ltd.willconscientiouslyimplementtherelevantrequirementsoftheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil(SASAC),focusingonreformtaskssuchascorporategovernance,mechanisminnovation,enhancingtheabilityofvaluecreation,achievingbreakthroughsincoretechnologies,andthetransformationofachievements.XII.Receptionofresearches,communications,interviewsandotheractivitiesduringthereportingperiod

√Applicable□Notapplicable

ReceptionDate

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Building

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Factorial(HongKong)Fund:ZHANGDongxiaoGFSecurities:LIMenglingCapitalSecurities:DENGJiwei

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12,2024

XIII.FormulationandImplementationofMarketCapitalizationManagementSystemandValuationEnhancementPlanWhethertheCompanyhasformulatedamarketcapitalizationmanagementsystem.

□Yes√No

WhethertheCompanyhasdiscloseditsvaluationenhancementplan.

□Yes√No

XIV.Implementationofthe"QualityandReturnDualEnhancement"ActionPlan

WhethertheCompanyhasdisclosedanannouncementon"QualityandReturnDualEnhancement"ActionPlan.

□Yes√No

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SectionIVCorporateGovernanceI.GeneralInformationonCorporateGovernanceDuringthereportingperiod,instrictaccordancewiththerequirementsoftheCompanyLaw,theSecuritiesLaw,theCodeofCorporateGovernanceforListedCompanies,theRulesGoverningtheListingofSharesonShenzhenStockExchange,relevantlaws,regulationsandrulesoftheChinaSecuritiesRegulatoryCommission(CSRC),aswellastheactualneedsoftheCompany,theCompanyrevisedrelevantinternalcontrolsystems,continuouslyimprovedthecorporategovernancestructure,andstandardizedthecompany'soperations,inatimelymanner.Asattheendofthereportingperiod,theactualsituationofcorporategovernancewasbasicallyincompliancewiththerequirementsoftherelevantregulatorydocumentsongovernanceoflistedcompaniesissuedbytheCSRC.

(I)AboutshareholdersandgeneralmeetingsofshareholdersTheCompanyhasformulatedtheArticlesofAssociationandtheRulesofProcedureforGeneralMeetingsofShareholders,whichensurethelegitimaterightsandequalstatusofallshareholders,especiallyminorityshareholders.Duringthereportingperiod,theCompanywasinstrictcompliancewithrelevantrequirementstoissuenoticesonthegeneralmeetingsofshareholdersinadvanceandconvenethegeneralmeetingsofshareholders,ensuringthatshareholdershadtherightstobeinformedandparticipateinmajormattersoftheCompany.RelatedpartytransactionsbetweentheCompanyandrelatedpartiesarefairandreasonableandhavebeenfullydisclosedasrequired.In2024,thecompanyheldatotalofsixgeneralmeetingsofshareholders.Inaccordancewiththerequirementsoflawsandregulations,theCompanyissuedanoticeofconveningthegeneralmeetingsofshareholdersinadvancethroughthedesignatedmedia,andearnestlycarriedouttheregistration,arrangementandorganizationworkforthegeneralmeetingsofshareholders.TheCompanystrictlyadheredtotheprovisionsoftheArticlesofAssociationtoholdon-sitegeneralmeetingsofshareholdersattheCompany'sofficeaddress,whichisconvenientlylocated,allowingshareholderstoattendthemeetingsbasedontheiractualcircumstances.TheCompany'sdirectors,supervisors,andseniormanagementprovidedexplanationsandclarificationsinresponsetoshareholders'inquiriesandsuggestionsduringthegeneralmeetingsofshareholders.

(II)TheCompanyanditscontrollingshareholderDuringthereportingperiod,thecontrollingshareholderandtheactualcontrollerofthecompanyhaveconductedthemselvesinastandardizedmanner,exercisedtheirrightsandfulfilledtheirobligationsinaccordancewiththelaw.AllmajordecisionsoftheCompanyweremadebythegeneralmeetingsofshareholdersinaccordancewiththelaw.Thecontrollingshareholderandthe

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DeFactoControlleroftheCompanyhavenotdirectlyorindirectlyinterferedintheCompany'sdecision-makingandbusinessoperationsbeyondthescopeofauthorityofthegeneralmeetingofshareholders.TheBoardofDirectors,BoardofSupervisorsandinternalorganizationsoftheCompanyareabletooperateindependently,andareindependentofthecontrollingshareholdersandDeFactoControllersbypracticingthe“FiveSeparations”intermsofbusiness,personnel,assets,organizationsandfinances.(III)DirectorsandtheBoardofDirectorsThenumberandcompositionoftheBoardofDirectorsoftheCompanyareincompliancewiththerequirementsoflawsandregulations,andtheCompanyhasformulatedtheRulesofProcedureoftheBoardofDirectorstoensuretheefficientoperationandscientificdecision-makingoftheBoardofDirectors;TheCompanyhasestablishedanIndependentDirectorsSystemandhasselectedandappointedthreeindependentdirectors.Duringthereportingperiod,thenumberandcompositionoftheBoardofDirectorsoftheCompanywereincompliancewiththelawsandregulationsandtheprovisionsoftheArticlesofAssociation.TheBoardofDirectorsoftheCompanyhassetupfourprofessionalcommittees,namelytheFinanceandAuditCommittee,theNominationCommittee,theRemunerationandEvaluationCommitteeandtheStrategyCommittee,toprovideprofessionaladvicefortheBoard'sdecision-making.AlldirectorsoftheCompanyareabletocarryouttheirtasksandfulfilltheirdutiesinaccordancewiththeRulesofProcedureoftheBoardofDirectors,theIndependentDirectorsSystemandothersystems,anddiligentlyattendtheBoardmeetings.Duringthereportingperiod,theCompanyheldatotalofeighteenBoardmeetings,effectivelyleveragingthedecision-makingmechanismoftheBoardofDirectors.(IV)SupervisorsandBoardofSupervisorsTheCompanyhasformulatedtheRulesofProcedureoftheBoardofSupervisors,andthecompositionandstructureoftheBoardofSupervisorsareincompliancewiththerequirementsofrelevantlawsandregulations;TheSupervisorsareabletofulfilltheirdutiesconscientiouslyandareabletoexercisetheirsupervisoryandinspectionfunctionsindependentlyandeffectivelyinthespiritofaccountabilitytoshareholders.Duringthereportingperiod,thenumberandcompositionoftheBoardofSupervisorsoftheCompanywereincompliancewiththerequirementsoflawsandregulations.TheCompany'ssupervisorswereabletoconscientiouslyperformtheirdutiesinaccordancewiththeRulesofProcedurefortheBoardofSupervisorsandotherrequirements,supervisethedecision-makingproceduresandresolutionsoftheboardmeetingsandtheoperationsoftheCompanyinaccordancewiththelaw,convenethemeetingsoftheBoardofSupervisorsinaccordancewiththeprescribedprocedures,andeffectivelysupervisetheCompany'smajormatters,related-partytransactionsandfinancialsituation,aswellasthelegalityandcomplianceoftheperformanceofdutiesbythedirectors,thePresidentandotherseniormanagementoftheCompany.(V)Performanceevaluation,incentiveandrestraintmechanism

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TheappointmentoftheCompany'sseniormanagementisopen,transparentandincompliancewithlawsandregulations.TheCompanyhasestablishedandisgraduallyimprovingtheperformanceevaluationstandardsandincentiveandrestraintmechanismforseniormanagementpersonnel,soastoattracttalents,andensurethestabilityofseniormanagementpersonnel.

(VI)Stakeholders

TherelationshipbetweentheCompanyanditsstakeholders,includingbanksanditscreditors,employees,consumersandsuppliers,isoneofcomplementarity,mutualpromotionandcommondevelopment,andtheCompanyisabletofullyrespectandsafeguardthelegitimaterightsofthestakeholders,andactivelycooperatewiththemtojointlypromotethesustainableandhealthydevelopmentoftheCompany.Duringthereportingperiod,theCompanyfullyrespectedandsafeguardedthelegitimaterightsandinterestsofrelevantstakeholders,achievedacoordinatedbalanceoftheinterestsofsociety,shareholdersandemployees,safeguardedtherightsandinterestsofemployees,promotedenvironmentalprotectionandactivelyparticipatedinsocialwelfareandcharitableundertakings,tojointlypromotetheCompany'ssustainedandsteadydevelopment.

(VII)Informationdisclosureandtransparency

TheCompanyhasformulatedtheInvestorRelationsManagementSystem,theInformationDisclosureManagementSystem,andtheImplementationRulesoftheInformationDisclosureCommittee,designateddedicatedpersonstoberesponsibleforinformationdisclosure,appointedadedicateddepartmenttoreceiveshareholders'visitsandinquiries,andactivelycarriedoutinvestorrelationsmanagementworktoensurethatallshareholdershaveequalopportunitiestoaccessinformation.Duringthereportingperiod,theCompanywasabletodiscloseinatimely,truthful,completeandaccuratemanneralltypesofcorporateinformationthatshouldbedisclosedtothepublicinaccordancewiththeregulationsinstrictaccordancewiththelaws,regulationsandtheArticlesofAssociationoftheCompany,ensuringaccurateandtimelydisclosureofcorporateinformationandguaranteeingthatallshareholdershadequalopportunitiesofaccesstotheCompany'sinformation.

(VIII)Non-standardGovernanceissuesintheCompany

1.Typesofnon-standardgovernanceissuesintheCompany

TherehavebeenthecircumstanceswheretheCompanyprovidedundisclosedinformationtomajorshareholders.

2.Typesandfrequencyofprovisionofundisclosedinformationtomajorshareholders

TheCompanyprovidesmonthlyfinancialdatatoitsmajorshareholders.

3.Reasonsfortheexistenceofrelatednon-standardcorporategovernanceissues.

InaccordancewiththemanagementrequirementsoftheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil(SASAC),theCompanysubmitsmonthlyfinancialdataandotherundisclosedinformationtothemajorshareholdersdirectlyunderthe

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jurisdictionofSASAC.

4.Impactsonthecompany'sindependenceTheCompany'sself-inspectionshowsthattheCompanystrictlyhasadheredtotherequirementsoftheNoticeonStrengtheningSupervisionovertheProvisionofUndisclosedInformationbyListedCompaniestoMajorShareholdersandDeFactoControllersandtheSupplementaryNoticeonStrengtheningSupervisionoverNon-standardGovernancePracticesSuchastheProvisionofUndisclosedInformationbyListedCompaniestoMajorShareholdersandActualControllersandotherrelevantdocumentswhenprovidingrelevantinformationtomajorshareholders,andstrictlyfollowedthenecessaryprocedures.Therehasbeennoabuseofcontrolbymajorshareholderstodiscloseundisclosedinformationforinsidertrading,andtherehasbeennoimpactontheCompany'sindependence.

(IX)Implementationofcorporategovernancespecialactivitiesandtheformulationandimplementationoftheinsiderregistrationmanagementsystem

1.Establishmentandimprovementoftheinsidermanagementsystem

InordertofurtherstandardizetheCompany'sinsiderinformationmanagementpractices,strengthentheconfidentialityoftheCompany'sinsiderinformation,andupholdtheprincipleoffairinformationdisclosure,andinaccordancewiththeCompanyLaw,theSecuritiesLaw,theMeasuresfortheRegulationsonInformationDisclosureofListedCompanies,theRulesGoverningtheListingofSharesonShenzhenStockExchangeandotherrelevantlaws,regulationsandnormativedocuments,theCompanyhasestablishedtheInsideInformationandInsiderManagementSystemofKonkaGroupCo.,Ltd.TheCompanystrictlyimplementsandenforcesthesysteminitsinformationdisclosurepractices.Inaddition,theCompanyhasconscientiouslyimplementedtheCompany'sregulationsontheregistrationandmanagementofsuchinsiders,registeredsuchinsidersandsubmittedfilingstotheShenzhenStockExchangeinaccordancewiththeregulations.

TheCompanyhasconductedaspecialinspectiononthemanagementofinsideinformationduringtheoccurrenceofmajoreventsin2024andthereportingperiodofthe2024annualreport.Theself-inspectionshowsthattheCompanyhaseffectivelyensuredthatduringtheperiodofpreparation,consideration,anddisclosureofregularreportsandmajorevents,theinsidersoftheCompanyhavebeeninstrictcompliancewiththeprovisionsonconfidentiality.Theyhavenotleaked,disclosed,orspreadtheCompany'sinsideinformationtooutsiders.TherehavebeennocaseswhereinsiderstradedtheCompany'sstocksusinginsideinformationpriortothedisclosureofmajorsensitiveinformationthatmayaffecttheCompany'sstockprice,andtherehavebeennocasesofinvestigation,punishment,andrectificationbytheregulatoryauthorities.InsideInformationandInsiderManagementSystemofKonkaGroupCo.,Ltd.wasimplementedandcontrolledeffectively.

2.Establishmentandimplementationofexternalinformationusermanagementsystem

InordertostrengthenthemanagementofthefilingsoftheCompany'sinsideinformation,in

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accordancewiththerelevantprovisionsoflaws,regulationsandnormativedocumentssuchastheSecuritiesLawofthePeople'sRepublicofChina,theRegulationsonInformationDisclosureofListedCompanies,andtheInsideInformationandInsiderManagementSystemofKonkaGroupCo.,Ltd.,theCompanyhasestablishedaninsideinformationfilingmechanism,whichregulatesthematterssuchasthescopeofinsideinformationfiling,thefilingprocedures,andthedivisionofresponsibilities.

TheCompanyhasconductedaspecialinspectiononthemanagementofinsideinformationduringtheoccurrenceofmajoreventsin2024andthereportingperiodofthe2024annualreport.Theself-inspectionshowsthattheCompany'sinsideinformationfilingshavebeenincompliancewithwiththerequirementsoftheInsideInformationandInsiderManagementSystemofKonkaGroupCo.,Ltd.InsideInformationandInsiderManagementSystemofKonkaGroupCo.,Ltd.wasimplementedandcontrolledeffectively.

Whethertherehavebeensignificantdifferencesbetweentheactualstateofcorporategovernanceandthelaws,administrativeregulationsandtheregulationsissuedbytheCSRConthegovernanceoflistedcompanies

□Yes√No

Theactualstateofcorporategovernancehasnotdifferedmateriallyfromthelaws,administrativeregulationsandtheprovisionsongovernanceoflistedcompaniesissuedbytheCSRC.

II.TheCompany'sIndependenceRelativetoItsControllingShareholdersandDeFactoControllersinTermsofAssets,Personnel,Finance,Organization,andBusiness

Duringthereportingperiod,theCompanywascompletelyseparatedfromitscontrollingshareholderintermsofbusiness,personnel,assets,organizations,finance,etc.Itenjoyedthestatusofanindependentlegalentityandamarketcompetitionsubject,conductedindependentaccounting,hadanindependentandcompletebusinessoperationandthecapabilityofindependentoperation,andindependentlyassumedoperatingresponsibilitiesandrisks.

(I)Businessseparation:TheCompanyhasacompletesupply,R&D,production,andsalessystem,withthecapabilitytooperateindependentlyinthemarket.Itconductsindependentoperations,accounting,decision-making,andindependentlyassumesresponsibilitiesandrisks,withoutinterferenceorcontrolfromthecontrollingshareholder,DeFactoController,orotherenterprisescontrolledbythem.

(II)Personnelseparation:TheCompanyhasanindependentandcompletesystemforlabor,HR,andsalarymanagement,whichiscompletelyindependentofthecontrollingshareholderandDeFactoController.TheCompanyhasanindependentworkforce.Itsseniormanagementpersonnel,financialstaff,andbusinesspersonnelareallfull-timeemployeesintheCompanyandreceivetheirsalaries.Theydonotholdanypositionsotherthandirectorsandsupervisorsintheshareholder

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entitiesortheiraffiliates.

(III)Assetsintegrity:TheCompanyhasproductionandoperationpremisesindependentofthoseofthecontrollingshareholder,possessesanindependentandcompleteassetstructure,andownsassetssuchasanindependentproductionsystem,auxiliaryproductionsystem,supportingfacilities,andhousingownershiprights.Italsohasanindependentprocurementandsalessystem.(IV)Organizationseparation:Thecompanyhasestablishedfunctionalorganizationsthatmeetitsowndevelopmentneedsandtherequirementsofmarketcompetition.Allfunctionalorganizationsarecompletelyindependentintermsofpersonnel,officepremises,andmanagementsystems.TherehavebeennocircumstancesofinterferenceintheestablishmentoftheCompany'sorganizationbyshareholdersoranyotherentityorindividual.(v)Financialindependence:TheCompanyhasanindependentfinancialdepartmentwithfull-timefinancialpersonnel,hasestablishedanindependentfinancialaccountingsystemandcomplieswiththerequirementsoftherelevantaccountingsystemtocarryoutfinancialworkindependently;TheCompanyhasformulatedasoundfinancialmanagementsystem,operatesindependentlyanddoesnotsharebankaccountswithitscontrollingshareholders,affiliatesoranyotherentitiesorindividuals;TheCompanyfilestaxreturnsandfulfillsitspaymentobligationsindependentlyinaccordancewiththelaw,andtherehavebeennocasesinvolvingmixedtaxpaymentswithshareholderentities.

III.IndustryCompetitions

□Applicable√Notapplicable

IV.AnnualGeneralMeetingsandExtraordinaryGeneralMeetingsofShareholdersHeldduringtheReportingPeriod

1.Generalmeetingsofshareholdersheldduringthereportingperiod

SessionNo.

2.Preferredshareholderswithrestoredvotingrightsrequestingtheconveningofextraordinarygeneralmeetingsofshareholders

□Applicable√Notapplicable

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V.Directors,SupervisorsandSeniorOfficers

1.Basicinformation

Name

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Whethertherehavebeendeparturesofanydirectors,supervisors,ordismissalsofseniormanagementpersonnelduringtheirtermsofofficeinthereportingperiod

√Yes□No

OnAugust26,2024,Mr.LiuFengxiresignedfromhispositionsasChairmanofthe10thSessionoftheBoardofDirectors,Director,andMemberoftheStrategyCommitteeoftheBoardofDirectorsoftheCompanyduetoworkarrangements.

OnAugust26,2024,Mr.YaoWeiresignedfromhispositionasaNon-independentDirectorofthe10thBoardofDirectorsoftheCompanyandhispositionsintherelevantspecializedcommitteesoftheBoardofDirectorsduetoworkarrangements.

OnAugust26,2024,Mr.ZHOUBinresignedfromhispositionasPresidentoftheCompanyduetoworkarrangements.

OnAugust26,2024,Mr.LIChunleiresignedfromhispositionasFinancialDirectoroftheCompanyduetoworkarrangements.

OnAugust26,2024,Mr.WUYongjunresignedfromhispositionasSecretaryoftheBoardofDirectorsoftheCompanyduetoworkarrangements.

OnAugust26,2024,Mr.LIHongtaoresignedfromhispositionasVicePresidentoftheCompanyduetopersonalreasons.

Changesofdirectors,supervisorsandseniorofficers

√Applicable□Notapplicable

Name

LIChunlei

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Directors,Director

2.EmploymentInformationProfessionalbackgroundandmajorworkexperienceoftheCompany'scurrentdirectors,supervisorsandseniormanagement,aswellastheircurrentmajorresponsibilitiesintheCompany

(1)Non-independentDirectorMr.ZHOUBin,SecretaryofthePartyCommittee,DirectorandViceChairmanoftheBoardofDirectors(presidingoverwork).Male,ofHanethnicity,bornin1979,withabachelor'sdegree.HepreviouslyservedasAssistanttoDirector,DeputyDirector,andDirectoroftheOperationsManagementCenteratKonkaGroup,AssistanttotheChairmanoftheBoardofDirectorsandDirectoroftheOperationsManagementCenteratKonkaGroup,andPresidentofKonkaGroup,amongotherpositions.HecurrentlyservesastheChairmanofShenzhenKonkaInvestmentHoldingCo.,Ltd.,KonkaGroup'sSecretaryofthePartyCommittee,DirectorandViceChairmanoftheBoardofDirectors(presidingoverwork)

Mr.CAOShiping,DeputySecretaryofthePartyCommittee,ChiefExecutiveOfficer(CEO),Director,andPresident.Male,ofHanethnicity,bornin1978,withamaster'sdegree.HepreviouslyservedasGeneralManagerofKonkaGroup'sMultimediaDivisionJinzhouBranchandTianjinBranch,GeneralManageroftheCustomerCooperationDepartmentoftheMultimediaDivision,DeputyGeneralManageroftheMultimediaMarketingDivision,DeputyGeneralManageroftheHeadOfficeofMultimediaDivisionandGeneralManageroftheMarketingCenter,GeneralManageroftheMultimediaDivision,GeneralManageroftheInternetDivision,VicePresidentandExecutiveVicePresidentofKonkaGroup,amongotherpositions.HecurrentlyservesastheChiefExecutiveOfficer(CEO),Director,PresidentandDeputySecretaryofthePartyCommitteeofKonkaGroup.Mr.YEXingbin,DeputySecretaryofthePartyCommitteeandEmployeeDirector.Male,ofHanethnicity,bornin1970,withabachelor'sdegree.HepreviouslyservedasFull-timeDirectorofOverseasChineseTownHoldingsCompany,heldconcurrentpositionsasMemberoftheStandingCommitteeofthePartyCommitteeofQiandongnanPrefectureandDeputyGovernoroftheQiandongnanPrefectureGovernmentinGuizhouProvince,DirectorofShenzhenHuakangChuangzhanTechnologyHoldingGroupCo.,Ltd.,andDeputySecretaryofthePartyCommitteeandDirectorofKonkaGroup.HecurrentlyservesasViceChairmanoftheTradeUnionFederationCommitteeofOverseasChineseTownHoldingsCompany,DeputySecretaryoftheParty

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Committee,ChairmanoftheTradeUnion,andEmployeeDirectorofKonkaGroup.

Mr.HUANGXinzheng,Director.Male,ofHanethnicity,bornin1978,withabachelor'sdegree.HepreviouslyservedasDeputyChiefAccountantofShenzhenOverseasChineseTownWesternInvestmentCo.,Ltd.,DeputyChiefAccountantoftheShenxiDivisionofShenzhenOverseasChineseTownCo.,Ltd.,ChiefAccountantofShenzhenOverseasChineseTownWesternInvestmentCo.,Ltd.,ChiefAccountantoftheShenxiDivisionofShenzhenOverseasChineseTownCo.,Ltd.,andFinancialDirectorofShenzhenOverseasChineseTownHotelDevelopmentCo.,Ltd.,amongotherpositions.HecurrentlyservesasDeputyGeneralManageroftheFinancialOperationsDepartmentofOverseasChineseTownHoldingsCompany,ChiefAccountantofShenzhenOverseasChineseTownCapitalInvestmentManagementCo.,Ltd.,FinancialDirectorofHongKongOverseasChineseTownCo.,Ltd.,andDirectorofKonkaGroup.

(2)IndependentDirector

Mr.LIUQuanjian,IndependentDirector.Male,ofHanethnicity,bornin1966,withamaster'sdegree.HepreviouslyservedasEditorattheUniversityofInternationalBusinessandEconomicsPress,EditorattheChinaBusinessTimes,IndependentDirectorofWuhanTianyuanEnvironmentalProtectionCo.,Ltd.,IndependentDirectorofHisenseVisualTechnologyCo.,Ltd.,andIndependentDirectorofFounderTechnologyGroupCo.,Ltd.,amongotherpositions.HecurrentlyservesasDirectorandGeneralManagerofShandongEconomicObserverMediaCo.,Ltd.,PresidentandEditor-in-ChiefoftheEconomicObserver,ChairmanofBeijingJingguanCultureMediaCo.,Ltd.,andIndependentDirectorofKonkaGroup.

Mr.WANGShuguang,IndependentDirector.Male,ofHanethnicity,bornin1971,withadoctoraldegree.HepreviouslyservedasIndependentDirectorofYantaiRuralCommercialBank,JinanRuralCommercialBank,NingboYuyaoRuralCommercialBank,andSDICZhongluGroup,ExternalSupervisorandConveneroftheBoardofSupervisorsofIndustrialBank,amongotherpositions.HecurrentlyservesasProfessorandDoctoralSupervisorattheSchoolofEconomicsofPekingUniversity,ExecutiveDeputyDirectoroftheInstituteofIndustryandCultureatPekingUniversity,andIndependentDirectorofKonkaGroup.

Ms.DENGChunhua,IndependentDirector.Female,ofHanethnicity,bornin1963,MasterofBusinessAdministration,ProfessorofAccounting,ChineseCertifiedPublicAccountant(non-practicingmember).ShepreviouslyservedasChiefAccountantandProjectManageratWUYIGECertifiedPublicAccountantsLLPofZhongnanUniversityofFinanceandEconomics,TeachingAssistant,Lecturer,AssociateProfessor,andProfessorattheSchoolofAccountingofZhongnan

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UniversityofEconomicsandLaw(formerlyZhongnanUniversityofFinanceandEconomics),IndependentDirectorofZhejiangJinhaiHigh-TechCo.,Ltd.,amongotherpositions.Currently,sheservesasaProfessorattheSchoolofAccountingofZhongnanUniversityofEconomicsandLaw,IndependentDirectorofZhejiangJinkeTomCultureIndustryCo.,Ltd.,IndependentDirectorofWolongElectricDriveGroupCo.,Ltd.,andIndependentDirectorofKonkaGroup.

(3)SupervisorsMr.CAIWeibin,ChairmanoftheBoardofSupervisors.Male,ofHanethnicity,bornin1973,withamaster'sdegree.HepreviouslyservedasDeputyGeneralManager,DeputySecretaryofthePartyCommittee,andSecretaryoftheDisciplineInspectionCommissionofChongqingOverseasChineseTownIndustrialDevelopmentCo.,Ltd.,DeputyDirectoroftheDisciplineInspectionandSupervisionDepartment,andDirectoroftheDisciplineEnforcementandReviewOfficeofOverseasChineseTownHoldingsCompany,amongotherpositions.HecurrentlyservesasGeneralManageroftheLegalandComplianceDepartmentofOverseasChineseTownHoldingsCompanyandChairmanoftheBoardofSupervisorsofKonkaGroup.

Mr.YANGGuobin,Supervisor.Male,bornin1969,withabachelor'sdegree,CertifiedPublicAccountant.HepreviouslyservedasDeputyDirectoroftheFinanceDepartmentofOverseasChineseTownHoldingsCompany,FinancialDirectorofKonkaGroup,andDeputyDirectoroftheEnterpriseManagementDepartmentofOverseasChineseTownHoldingsCompany,amongotherpositions.HecurrentlyservesasFull-timeDirectorofOverseasChineseTownHoldingsCompanyandSupervisorofKonkaGroup.Mr.LIJun,EmployeeSupervisor.Male,ofHanethnicity,bornin1971,withabachelor'sdegree.HepreviouslyservedasSeniorManageroftheFinanceDepartmentatShenzhenCommunicationTechnologyCompany,SeniorManager,AssistanttoDirector,andDeputyDirectoroftheAuditandLegalAffairsCenteratKonkaGroup,DirectoroftheDisciplineInspectionCommissionOfficeatKonkaGroup,andEmployeeSupervisorofKonkaGroup.HecurrentlyservesasDirectoroftheSupervision,Audit,Legal,andComplianceCenterofKonkaGroupandEmployeeSupervisorofKonkaGroup.

(4)Seniormanagement

Mr.CAOShiping,DeputySecretaryofthePartyCommittee,ChiefExecutiveOfficer(CEO),Director,andPresident.Male,ofHanethnicity,bornin1978,withamaster'sdegree.HepreviouslyservedasGeneralManagerofKonkaGroup'sMultimediaDivisionJinzhouBranchandTianjin

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Branch,GeneralManageroftheCustomerCooperationDepartmentoftheMultimediaDivision,DeputyGeneralManageroftheMultimediaMarketingDivision,DeputyGeneralManageroftheHeadOfficeofMultimediaDivisionandGeneralManageroftheMarketingCenter,GeneralManageroftheMultimediaDivision,GeneralManageroftheInternetDivision,VicePresidentandExecutiveVicePresidentofKonkaGroup,amongotherpositions.HecurrentlyservesastheChiefExecutiveOfficer(CEO),Director,PresidentandDeputySecretaryofthePartyCommitteeofKonkaGroup.

Mr.NIEYong,FinancialDirector.Male,ofHanethnicity,bornin1973,withabachelor'sdegree.HepreviouslyservedasDirectoroftheFinanceDepartmentofShenzhenOverseasChineseTownHappyValleyTourismCompany,DirectoroftheFinanceDepartmentofBeijingCenturyOverseasChineseTownIndustrialCo.,Ltd.,DirectoroftheFinanceDepartmentoftheHappyValleyDivisionofShenzhenOverseasChineseTownCo.,Ltd.,FinancialDirectorofShenzhenOverseasChineseTownCultureandTourismTechnologyCo.,Ltd.,ChiefAccountantofShenzhenOverseasChineseTownCultureGroupCo.,Ltd.,andChiefAccountantofOverseasChineseTownNorthernInvestmentCo.,Ltd.HecurrentlyservesastheFinancialDirectorofKonkaGroup.Mr.YANGBo,VicePresident.Male,ofHanethnicity,bornin1970,withamaster'sdegree.HepreviouslyservedasDirectorattheEducationandFinanceChannelofShenzhenCableTelevision,RegionalDirectorofMarketing,Sales,andSupportatTellabsCommunicationsInc.,GeneralManageroftheProgramOperationsDepartmentatShenzhenTopwayVideoCommunicationCo.,Ltd.,DirectorandGeneralManagerofShenzhenTianhuaCenturyMediaCo.,Ltd.,GeneralManageroftheMarketingandSalesCenteratShenzhenTopwayVideoCommunicationCo.,Ltd.,andVicePresidentofKonkaGroup.HecurrentlyservesasVicePresidentofKonkaGroup.Mr.LINHongfan,VicePresident.Male,ofHanethnicity,bornin1971,withaMBAdegree.HepreviouslyservedasDeputyGeneralManageroftheMultimediaMarketingDivision,GeneralManageroftheColorTVStrategyandSupplyChainManagementCenter,ExecutiveDeputyGeneralManagerandGeneralManageroftheMultimediaBusinessDivision,andAssistanttothePresidentandVicePresidentofKonkaGroup.HecurrentlyservesasVicePresidentofKonkaGroup.

Mr.LIChunlei,SecretaryoftheBoardofDirectors.Male,ofHanethnicity,bornin1973,withamaster'sdegree.HepreviouslyservedasDirectoroftheFinancialCostCenteroftheRealEstateDivisionatKonkaGroup,DeputyGeneralManagerandGeneralManagerofKunshanKangshengInvestmentDevelopmentCo.,Ltd.,DeputyDirector(presidingoverwork)andDirectorofthe

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StrategicDevelopmentCenter,GeneralManageroftheFinancialCenterandGeneralManageroftheFundSettlementCenter,andFinancialDirectorofKonkaGroup,amongotherpositions.HecurrentlyservesasSecretaryoftheBoardofDirectorsofKonkaGroup.Positionheldatshareholderentity

√Applicable□Notapplicable

Nameofpersonholdingtheposition

Positionheldattheshareholders

√Applicable□Notapplicable

Penaltiesimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholefttheirpositionsduringthereportingperiod

FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

□Applicable√Notapplicable

3.Remunerationsofdirectors,supervisorsandseniorofficersDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationsfordirectors,supervisorsandseniormanagement

TheremunerationsofdirectorsandsupervisorsoftheCompanyshallbeapprovedbybytheBoardofdirectors,andthereaftersubmittedtothegeneralmeetingsofshareholdersfordeliberationanddecision.WithreferencetotheremunerationlevelsofdirectorsandsupervisorsoflistedcompaniesinthesameindustryinChina,theremunerationschemefortheCompany'sdirectorsandsupervisors,whichwasdeliberatedandapprovedbytheCompany's2ndExtraordinaryGeneralMeetingin2015,isasfollows:(1)ThebasicannualsalarystandardfortheChairmanoftheBoardofDirectorsisRMB1.2million.Theallowancestandardforotherdirectors(excludingdirectorswhoholdpositionswithintheCompany)isRMB300,000perpersonperyear,andtheallowancestandardforsupervisors(excludingemployeesupervisors)isRMB200,000perpersonperyear.ImplementedfromJune2015.(2)Theabovestandardsarepre-taxstandards,andtheindividualincometaxshallbebornebytheindividualsthemselves,whichshallbewithheldandpaidbytheCompany.

TheadditionalbenefitsfordirectorsandsupervisorsincludethereimbursementoftravelexpensesforattendingmeetingsoftheBoardofDirectors,BoardofSupervisors,andthegeneralmeetingsofshareholders,aswellasthecostsincurredinexercisingtheirpowersinaccordancewithrelevantregulationsofregulatoryauthorities,theCompany'sArticlesofAssociation,andotherrelatedcompanypolicies,allofwhicharereimbursedbytheCompanybasedonactualexpenses.TheremunerationoftheCompany'sseniormanagementisdeterminedbytheBoardofDirectorswithreferencetothefollowingfactors:a.Thejobcontentandresponsibilitiesoftheposition;B.Company'sperformanceandprofitability;C.Themarketremunerationlevelswithinthesameindustryandregion.

TheremunerationsoftheCompany'sseniormanagementshallbereviewedbytheBoard'sRemunerationandEvaluationCommitteeandthensubmittedtotheCompany'sBoardofDirectorsfordeliberationanddecision.

TheremunerationinformationoftheCompany'sdirectors,supervisorsandseniormanagementdisclosedfortheyear2024hasbeenreviewedandapprovedbytheRemunerationandEvaluationCommitteeoftheBoardofDirectors.

Compensationsofthedirectors,supervisorsandseniorofficersoftheCompanyduringthereportingperiod

Unit:RMB'0,000

Name

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receivedfromtheCompany

Otherinformationorexplanations

□Applicable√NotapplicableVI.PerformanceofDutiesbyDirectorsduringtheReportingPeriod

1.InformationontheBoardofDirectorsduringthereportingperiod

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ResolutionsonApplyingforaComprehensiveCreditLinefromChinaCITICBank

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ResolutionsontheBusinessPlanandFinancialBudgetPlanfor2024

2.Attendanceofdirectorsatboardmeetingsandgeneralmeetings

ExplanationsonwhythesubjecthasfailedtoattendtheBoardmeetingsinpersonfortwoconsecutivetimes

None

3.ObjectionsraisedbydirectorsonrelevantmattersoftheCompany

WhetherthedirectorhasraisedobjectionsonrelevantmattersoftheCompany

□Yes√No

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NoobjectionshavebeenraisedbydirectorsonrelevantmattersoftheCompanyinthereportingperiod.

4.Additionalexplanationsontheperformanceofdutiesbydirectors

WhetherthesuggestionsfromdirectorshavebeenadoptedbytheCompany

√Yes□No

ExplanationsonwhysuggestionsfromdirectorshaveorhavenotbeenadoptedbytheCompany

Duringthereportingperiod,theCompany'sdirectorsactivelyattendedrelevantmeetings,diligentlyreviewedvariousproposals,andfullyplayedtheirrolesin"formulatingstrategies,makingdecisions,andpreventingrisks",gainedanin-depthunderstandingofthedevelopmentofbusinessessuchassemiconductors,aswellastheCompany'soperationalstatus,internalcontrolconstruction,andtheimplementationofresolutionsofBoardmeetings.

TheCompany'sdirectorshaveleveragedtheirprofessionalexpertisetoprovideconstructivesuggestionsfortheCompany'sdevelopmentandcorporategovernance,suchasincreasingR&Dinvestment,focusingoncashflow,activelyexpandingoverseasmarkets,drivingcostreductionandexpensecontrolinproduction,strengtheningcooperationwithupstreamanddownstreampartners,andmitigatingforeignexchangerisks.

VII.PerformanceofDutiesbySpecializedCommitteesundertheBoardduringtheReportingPeriod

Nameofcommittee

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reviewtheCompany's2023financialaccountingstatementswithpreliminaryauditopinionsissuedbythecertifiedpublicaccountantsforannualauditissue;

2.CommunicatewiththeinternalauditdepartmentoftheCompany.

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SupervisionDutiesbytheAccountingFirmin2023.

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AccountantsLLPastheCompany's2024financialstatementauditfirmandinternalcontrolauditfirm.

2.ReviewtheCompany'sfinancialstatementsforthethirdquarterof2024.

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PayrollSettlementPlanfor2023andtheCompany'sPayrollBudgetPlanfor2024.

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LIUJian,WANGShuguang

VIII.PerformanceofDutiesbytheBoardofSupervisorsWhethertheBoardofSupervisors,initsoversightactivities,haveidentifiedanyrisksthattheCompanyisexposed

□Yes√NoTheBoardofSupervisorshasraisednoobjectionstothemattersoverseenduringthereportingperiod.IX.Company'semployees

1.Numberofemployees,functionalcomposition,andeducationalbackground

2.RemunerationpolicyTheCompanyhasformulatedaremunerationsystembasedonthebusinessstrategythatservesthedevelopmentandimprovementoftheCompany,guidedbytheprinciplesofdeterminingsalariesaccordingtopositionsandsettingsalariesbasedonperformanceandcapabilities,whilebalancing

FullTextof2024AnnualReportofKonkaGroupCo.,Ltd.

marketcompetitivenessandinternalequity.EmployeeremunerationlevelsaredeterminedbasedontheCompany'sprofitability,thepositionsheld,andtheperformanceachievements.

3.TrainingprogramTheCompanyhasadheredtoapeople-orientedapproach,placedgreatemphasisontalentdevelopment,andactivelyorganizesvarioustrainingactivitiescenteredontheactualdevelopmentoftheCompany'sstrategicbusiness,continuouslyimprovedtheCompany'stalentcultivationsystemtoenhanceemployees'professionalskillsandoverallquality.

In2024,againstthebackdropofthe"OneAxis,TwoWheels,ThreeDrivers"newdevelopmentframeworkstrategy,theCompanyhasadheredtotheprincipleofthePartyoverseeingtalentmanagement.Withtheimplementationofleanmanagementasaprerequisite,theCompanyhascontinuouslycarriedoutvarioustasksinthreeaspects,namely,"promotingtheimplementationofthestrategy,supportingbusinesstransformation,andcoordinatingtalentdevelopment".Centeringaroundthe"ThreeLevels,SevenBrands"projectoperationsystem,theCompanyhasorganizedandcarriedoutyear-roundprojectssuchasKonkaOpenCoursesforallemployees.Forcampusrecruitsandsocialhires,ithasrespectivelyorganizedandcarriedoutnewemployeeonboardingtrainingprograms.Inaddition,inordertocontinuouslystrengthenprofessionaldevelopmentandempowerbusinessdevelopment,ithascontinuouslycarriedoutprofessionaltrainingtargetedatmarketing,researchanddevelopment,manufacturingandotherlinefunctions.

4.Laboroutsourcing

□Applicable√Notapplicable

X.TheCompany'sProfitDistributionandtheConversionofCapitalReserveintoShareCapital

Theformulation,implementation,oradjustmentoftheprofitdistributionpolicy,particularlythecashdividendpolicy,duringthereportingperiod

√Applicable□Notapplicable

TheCompany'scashdividendpolicyisclearlystipulatedintheArticlesofAssociation,withexplicitandcleardividendstandardsandratios.Therelevantdecision-makingproceduresandmechanismsarewell-established.TheindependentdirectorsoftheCompanyhavediligentlyperformedtheirdutiesandplayedtheirdueroles,providingminorityshareholderswithampleopportunitiestoexpresstheiropinionsanddemands,andeffectivelysafeguardingthelegitimaterightsandinterestsofminorityshareholders.TheCompanyhasstrictlyadheredtothecashdividendpolicystipulatedintheArticlesofAssociation,andthecashdividendsdistributedbytheCompanyareincompliancewiththeprovisionsoftheArticlesofAssociationandtherequirementsoftheresolutionsofgeneralmeetingsofshareholders.

InaccordancewiththerequirementsoftheRegulatoryGuidelinesforListedCompaniesNo.3-CashDividendsofListedCompaniesissuedbytheChinaSecuritiesRegulatoryCommission,the

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CompanyhasrevisedtheprofitdistributionpolicystipulatedintheArticlesofAssociation,furtherclarifyingtheprovisionsonpriorityofcashdividendsinprofitdistributionandtheproportionofcashdividendsinprofitdistribution,etc.TofurtherstandardizetheCompany'sshareholderreturnmechanism,theCompanyhaspromotedtheestablishmentofascientific,sustainable,andstableshareholderreturnmechanism,toenhancethetransparencyandoperabilityofprofitdistributionpolicydecisions,andeffectivelyprotectthelegitimaterightsandinterestsofpublicinvestors.

Specialexplanationsonthecashdividendpolicy

TheCompanywasprofitableduringthereportingperiod,andtheparentcompany'sprofitsavailablefordistributiontoshareholderswerepositive,butnocashdividenddistributionplanwasproposed

□Applicable√Notapplicable

Theprofitdistributionandtheconversionofcapitalreserveintosharecapitalduringthereportingperiod

□Applicable√Notapplicable

TheCompanyplansnottodistributecashdividends,issuebonusshares,orconvertcapitalreserveintosharecapitalfortheyear.

XI.ImplementationoftheCompany'sequityincentiveplan,employeestockownershipplan(ESOP)orotheremployeeincentives

□Applicable√Notapplicable

None.

XII.ConstructionandImplementationofInternalControlSystemsduringtheReportingPeriod

1.Constructionandimplementationofinternalcontrolsystems

InaccordancewiththerelevantregulationsoftheChinaSecuritiesRegulatoryCommissionandtheShenzhenStockExchange,theCompanyhasestablishedandimproveditsinternalcontrolsystembyadheringtothefundamentalprinciplesofinternalcontrolandtailoringthemtotheactualcircumstancesoftheCompany.TheCompany'sFinancialAuditCommitteeandtheSupervisoryAuditandLegalAffairsCenter,guidedbyvaluemanagementandaimingtostrengthenriskcontrol,

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havecontinuouslyenhancedauditsupervisionandinternalcontrolevaluation,overseeingandassessingtheCompany'sinternalcontrolmanagement.TheCompany'sSelf-EvaluationReportonInternalControlfor2024hascomprehensively,truthfullyandaccuratelyreflectedtheactualsituationoftheCompany'sinternalcontrol,andnomajordeficienciesorsignificantdeficienciesintheCompany'sinternalcontrolhavebeenidentifiedduringthereportingperiod.

2.Detailsofmajordeficienciesininternalcontrolidentifiedduringthereportingperiod

□Yes√No

XIII.ManagementandControloverSubsidiariesbytheCompanyfortheReportingPeriod

Name

XIV.InternalControlEvaluationReportorInternalControlAuditReport

1.Internalevaluationreport

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accountingtreatmentofnon-routineorextraordinarytransactions,andlackofcorrespondingcompensatorycontrols;(4)Oneormoredeficienciesincontrolsovertheprocessofpreparingthefinancialstatementsattheendoftheperiod;noreasonableassurancethatthepreparedfinancialstatementsachievetheobjectivesoftruthfulnessandaccuracy;(5)Significantdeficienciesidentifiedintheinternalcontrolevaluationhavenotbeencorrectedafterareasonableperiodoftime.Otherinternalcontroldeficienciesthatdonotmeetthecriteriaformajororsignificantdeficienciesareclassifiedasgeneraldeficiencies.

2.Internalcontrolauditreport

√Applicable□Notapplicable

Whethertheaccountingfirmhasissuedaninternalcontrolauditreportwithanon-standardopinion

□Yes√No

WhethertheinternalcontrolauditreportissuedbytheaccountingfirmisconsistentwiththeopinionoftheBoardofDirectors'self-assessmentreport

√Yes□No

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XV.RectificationofIssuesIdentifiedbySelf-inspectionintheSpecialActionontheGovernanceofListedCompaniesTheCompanyhascompletedtheself-inspectioninaccordancewiththerelevantrequirementsoftheChinaSecuritiesRegulatoryCommissionandhasrectifiedtheissuesidentifiedduringtheself-inspection.

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SectionVEnvironmentalandSocialResponsibilities

I.MajorenvironmentalissuesWhetherthelistedcompanyanditssubsidiariesareclassifiedaskeypollutant-dischargingunitsannouncedbytheenvironmentalprotectiondepartment

√Yes□NoEnvironmentalprotectionrelatedpoliciesandindustrystandardsTheCompanyimplementsenvironmentalprotectionlawsandregulationssuchastheEnvironmentalProtectionLawofthePeople'sRepublicofChina,theWaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,theAirPollutionPreventionandControlLawofthePeople'sRepublicofChina,theEnvironmentalNoisePollutionPreventionandControlLawofthePeople'sRepublicofChina,andtheSolidWastePollutionPreventionandControlLawofthePeople'sRepublicofChina,Thestandardsforwaterpollutantdischarge,includingtheEmissionStandardofPollutantsforElectroplating(DB44/1597-2015)andtheStandardforDischargeLimitsofWaterPollutantsinGuangdongProvince(DB44/26-2001),andthestandardsforatmosphericpollutantdischargeincludingtheEmissionStandardofAirPollutantsforPrintingIndustry(DB44/815-2010),theEmissionStandardofPollutantsforElectroplating(GB21900-2008),theEmissionStandardsforOdorPollutants(GB14554-93),theStandardforFugitiveEmissionofVolatileOrganicCompounds(GB37822-2019),theTechnicalSpecificationforSettingIdentificationSignsofHazardousWaste(HJ1276-2022),andtheStandardforPollutionControlonHazardousWasteStorage(GB18597-2023).

Administrativelicenseforenvironmentalprotection

1.XingdaHongyeXingdaHongyeobtainedtheapprovalfromtheZhongshanBureauofEcologyandEnvironment(ZSBEE)in2004(ZHJ[2004]No.61)fortheconstructionandcommissioningofitsprojectinZhongshan.Later,itsuccessivelyobtainedtheapprovalswithDocumentNos.ZHJD[2008]No.06250andZHJD[2010]No.04469in2008and2010respectively.SincetheoriginalprojectofXingdaHongyewasputintooperation,ithasbeenacceptedintwophases.PhaseIwasacceptedin2008(HY[2008]No.02)andPhaseIIwasacceptedin2012(ZHYR[2012]No.000092).

InDecember2012,XingdaHongyecommissionedtheZhongshanInstituteofEnvironmentalProtectionSciencetoconducttheenvironmentalimpactassessmentforthetechnicaltransformationandexpansionprojectofXingdaHongye.OnDecember31,2012,theCompanyobtainedtheapprovaldocumentfromtheZhongshanBureauofEcologyandEnvironment(ZSBEE),ApprovaloftheEnvironmentalImpactAssessmentReportfortheTechnicalTransformationandExpansion

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ProjectofGuangdongXingdaHongyeElectronicsCo.,Ltd.(ZHJS(2012)No.115),approvingtheincreaseintheproductionofsix-layercircuitboards,eight-layerandabovecircuitboards,andHDIboardsafterthetechnicaltransformationandexpansion,andthereductionintheproductionofsingle-layercircuitboards.Afterthetechnicaltransformationandexpansion,thetotalproductioncapacitywillbe200,000squaremeters/yearforsingle-layercircuitboards,250,000squaremeters/yearfordouble-layercircuitboards,300,000squaremeters/yearforfour-layercircuitboards,200,000squaremeters/yearforsix-layercircuitboards,150,000squaremeters/yearforeight-layerandabovecircuitboards,and100,000squaremeters/yearforHDIboards.Forthetechnicaltransformationandexpansionproject,theoriginalelectroplatingequipmentandelectroplatingprocesseswillremainunchanged,andabrownoxidationprocessonthebasisoftheexistingproductionprocesswillbeadded;Alladditionalelectroplatingcapacitywillbeoutsourcedforprocessing.Thetechnicaltransformationandexpansionprojectstartedconstructionin2013andwascompletedinJanuary2018.ThecommissioningperiodwasfromFebruary10thtoJuly8th,2018.Theconstructionoftheexpansionprojectcomplieswiththerequirementsoftheenvironmentalimpactassessmentapprovalandmeetstheconditionsforthecompletionacceptanceoftheenvironmentalprotectionoftheconstructionproject.Renewal/replacementofNationalPollutantDischargePermitin2021,PermitNo.:91442000768405216J001P.ChangeofNationalPollutantDischargePermitin2022,PermitNo.:91442000768405216J001P.ChangeofNationalPollutantDischargePermitin2023,PermitNo.:91442000768405216J001P.

2.BoluoKonkaandBoluoKonkaPrecisionIn2000,BoluoKonkaobtainedtheapprovalfromtheHuizhouBureauofEcologyandEnvironment(HSHJ[2000]No.23),andputitsprojectintooperationinthesameyear,withthePollutantDischargePermitNo.91441322721121283N001U.InJanuary2007,BoluoKonkaentrustedHuizhouEnvironmentalScienceInstitutetocarryoutenvironmentalimpactassessmentofitsexpansionproject,andonFebruary8,2007obtainedtheLetterofApprovalOpinionsontheEnvironmentalImpactAssessmentReportofBoluoKonkaDouble-sidedandMulti-layerBoardProject(HSHJ[2007]No.J32)fromHuizhouEnvironmentalProtectionBureau,whichapprovedtheadditionofdouble-sidedandmulti-layercircuitboardsaftertheexpansionoftheproject.Aftertheexpansion,thetotalproductivecapacityofsingle-sidedcircuitboardswas1millionsquaremeters/yearandthatofdouble-sidedmulti-layercircuitboardswas650,000squaremeters/year.Electroplatingequipmentandelectroplatingprocesseswereaddedtotheexpansionproject.TheconstructionoftheexpansionprojectmettheEIAapprovalopinionsandtheenvironmentalprotectionacceptanceconditionsforthecompletionoftheconstructionproject.Inthesameyear,thePollutantDischargePermitwasobtained.TheaboveprojectwaslaterregisteredandrenamedasBoluoKonkaPrecision.BoluoKonkaPrecisionobtainedtheNationalPollutantDischargePermitin2020,PermitNo.:91441322799316208F001V.BoluoKonka

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Precisionwillproduce1.65millionsquaremetersperyearofdouble-sidedandmultilayercircuitboards,upontheDepartmentofEcologyandEnvironmentofGuangdongProvince'sapprovaloftheReportontheEnvironmentalImpactoftheCircuitBoardsExpansionProjectwithanAnnualCapacityof1millionsquaremeters(YHSH[2023]No.124)inJune2023.Theregulationsforindustrialemissionsandtheparticularrequirementsforcontrollingpollutantemissionsthoseareassociatedwithproductionandoperationalactivities.

Nameofpolluter

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matter(dust)≤120mg/m

;

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andBoluoKonkaPrecision

Treatmentofpollutants

1.XingdaHongyeAllproductionequipmentofGuangdongXingdaHongyeElectronicsCo.,Ltd.hasbeensetupwithsupportingenvironmentalprotectionfacilitiesaccordingtotherequirementsofenvironmentalimpactassessment.Thedischargeofwastewater,wastegasandnoiseaswellasthedisposalofallsolidwastesintheCompanyallmetthestandardsduringtheReportingPeriod.ThesewagetreatmentcentreofGuangdongXingdaHongyeElectronicsCo.,Ltd.withaninvestmentofaboutRMB15millionwasformallyputintoproductioninJune2007,andthetreatmentcapacityofthesewagetreatmentfacilitywas2,566tons/day.Aftertechnicalimprovementandexpansion,thecapacityincreasedto2,900tons/daywiththetreatmentprocessremainingunchanged.In2022,RMB20millionwasinvestedtoincreaseasetofsewagetreatmentfacilitywhichhadbeenputintooperationsoastoensurestabledischargeofsewageuptostandard.Currently,thesewagetreatmentfacilitiesarefunctioningwellandthemainpollutantdischargemeetsthedischargestandardsandenvironmentalassessmentstandards.ThepollutantsaredischargedtoFushachongafterbeingtreatedattheself-builtsewagetreatmentstation.

2.BoluoKonkaandBoluoKonkaPrecisionAllproductionequipmentofBoluoKonkaandBoluoKonkaPrecisionhasbeenreportedforenvironmentalassessment,reviewandapproval.Thesupportingenvironmentalprotectionandpollutioncontrolfacilitieshavebeendesignedbypollutanttypeandconcentrationandeffectivelyoperatedinatargetedmanner.DuringtheReportingPeriod,thedischargestandardsweremetin

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termsofindustrialwastewater,exhaustandfactorynoise,andallindustrialwastegeneratedwasdisposedofincompliancewithenvironmentallawsandregulations.

BoluoKonkawasestablishedin2000.TomanufacturesinglesidedPCBs,itinvestedapproximatelyRMB5millioninconstructingasewagetreatmentstationwithoutthebiochemicaltreatmentfunctionandfeaturingadischargecapacityof300tonsperday.In2007,BoluoKonkaexpandeditsfactorybystartingthePhaseIIproject,whichwassubmittedforenvironmentalassessmentasBoluoKonkaPCBDoubleSidedandMulti-LayerPCBProject(latertheprojectownerwaschangedintoBoluoKonkaPrecision).ItspentaboutRMB10milliononconstructingthePhaseIIsewagetreatmentstationtoaddthebiochemicaltreatmentfunctionwithadischargecapacityof800tonsperday.In2019,accordingtothedocumentsissuedbyBoluoCountyEcologyandEnvironmentBureau,thetwosewagetreatmentstationsofBoluoKonkaandBoluoKonkaPrecisionmustbeupgradedtowardshigherstandards.Throughcomprehensiveassessmentoftheprofessionalenvironmentalprotectioncompany,itwasdecidedthatthesewagetreatmentstationsofthesaidcompaniesbecombinedtomeettheupgradingrequirements.BoluoCountyEcologyandEnvironmentBureauapprovedthecombinationofthedischargeoutletsoftheaforementionedcompanies,andBoluoKonkawouldappointBoluoKonkaPrecisiontotreatsewage.Afterthecombinationofdischargeoutlets,thedischargecapacitywouldreach1,100tonsperday.TheaforementionedtwocompaniesspentaboutRMB20millionbetween2019and2020onupgradingthesewagetreatmentstationstowardshigherstandards,andaddedindustrialadvancedprocessesandtreatmentsystems,suchasROwatertreatment,FentonoxidationandMBRfilms.Afterthetechnicaltransformationandexpansion,thesewagetreatmentreaches2,200tonsperday(withadischargecapacityof1,100tonsperday)withareuserateofmorethan60%.In2023,theBOTmodewasadopted,andaboutRMB25millionwasinvestedtoexpandthesewagestationtoachieveatreatmentcapacityof2,800tons/dayandareuserateofmorethan60%.Aftertheexpansion,theeffectivepoolcapacityoftheBoluoKonkasewagetreatmentsystemreached14,000m3,furtherrefiningthesewagetreatmentprocess,consolidatingthetreatmenteffect,andincreasingemergencypoolareabyabout1,000m

.Atpresent,thewastewatertreatmentfacilitiesareoperatingingoodconditions;thedischargeofmajorpollutantsmeetsthedischargestandards.Afteradvancedtreatmentofthewaterreusefacilities,thewatertreatedbythesewagestationsthatmeetsthestandardswillbereusedintheplants,whiletheremainingwaterwillbedischargedtothemunicipalpipenetworktobeprocessedbytheurbanandruralwatertreatmentfactorybeforebeingdischargedtotheGongzhuangRivesectionofDongjiangRiver.

Environmentalself-monitoringplan

1.XingdaHongyeAccordingtotherequirementsoftheEnvironmentalProtectionAdministration,Xingda

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Hongyeattachesgreatimportancetoenvironmentalmonitoringmanagement.Thus,pursuanttotheMeasuresforSelf-MonitoringandInformationDisclosureofNationalKeyMonitoredEnterprises,theReportontheEnvironmentalImpactoftheTechnicalTransformationandExpansionProjectofGuangdongXingdaHongyeElectronicsCo.,Ltd.andthereplyopinionsforenvironmentalimpactassessment,theCompanyhasformulatedtheEnterpriseEnvironmentalSelf-MonitoringPlanandreportedtothemunicipalenvironmentalprotectionbureauforapprovalandrecord.ItimplementsonlinemonitoringforthePH,CODandammonianitrogenpollutantsdischargedinwastewaterthroughreal-timemonitoringandanautomaticfrequencyofeverytwohours,entruststhequalifiedthird-partyonlinemonitoringequipmentoperationandmaintenanceinstitutetocarryoutperiodicmaintenanceonautomaticmonitoringequipmentandmonitoringdatanetworkingequipment,andentruststhequalifiedthird-partymonitoringunittocarryoutthe“threewastes”projectmonitoringbasedonthelatestNationalPollutantDischargePermitissuedandreportedenterpriseself-monitoringplans.Allself-monitoringplanresultswillbereportedanddisclosedonpublicplatformsonaperiodicbasis.

Inthecaseofnormalproduction,theresultswillbeupdatedonadailybasis,withonlinemonitoringdataaredisclosedinrealtime,ormanualmonitoringdataonamonthlyandquarterlybasisaredisclosedeverytwohours.

2.BoluoKonkaandBoluoKonkaPrecision

AccordingtotherequirementsoftheEnvironmentalProtectionAdministration,BoluoKonkaandBoluoKonkaPrecisionattachgreatimportancetoenvironmentalmonitoringmanagement.Thus,pursuanttotheMeasuresforSelf-MonitoringandInformationDisclosureofNationalKeyMonitoredEnterprisesandtherequirementsforenvironmentalimpactassessment,theCompanyhasformulatedtheEnterpriseEnvironmentalSelf-MonitoringPlanandreportedtothemunicipalenvironmentalprotectionbureauforapprovalandrecord.ItimplementsonlinemonitoringforthePH,COD,ammonianitrogen,totalphosphorusandotherpollutantsdischargedinwastewaterthroughreal-timemonitoringandanautomaticfrequencyofeverytwohours,entruststhequalifiedthird-partyonlinemonitoringequipmentoperationandmaintenanceinstitutetocarryoutperiodicmaintenanceonautomaticmonitoringequipmentandmonitoringdatanetworkingequipment,andentruststhequalifiedthird-partymonitoringunittocarryoutthe"threewastes"projectmonitoringbasedonthelatestNationalPollutantDischargePermitsissuedandreportedenterpriseself-monitoringplan.Allself-monitoringplanresultswillbereportedanddisclosedonpublicplatformsonaperiodicbasis.

Inthecaseofnormalproduction,theresultswillbeupdatedonadailybasis,withonlinemonitoringdataaredisclosedinrealtime,ormanualmonitoringdataonamonthlyandquarterlybasisaredisclosedeverytwohours.

Contingencyplanforemergentenvironmentalincident

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1.XingdaHongyeInstrictaccordancewithrequirementsoflaws,regulationsandrelevantdocuments,suchasLawofthePeople’sRepublicofChinaonEmergencyResponseandInterimMeasuresonEnvironmentalEmergencyResponsePlan,GuangdongXingdaHongyeElectronicsCo.,Ltd.hasestablishedriskpreventionmeasuresandemergencyresponseplans,keptitsemergencyequipmentinanormalstate,formulatedtheContingencyPlanforEmergentEnvironmentalIncident,andputonrecordsatZhongshanBureauofEcologyandEnvironment,GuangdongProvince,recordNo.:

4420002017044M.Inaddition,theCompanyconductsadrillofmajorenvironmentalpollutionincidentonitsfactorytoenhanceitsemergencyresponsecapabilitiesforemergentenvironmentalpollutionincidents.Furthermore,GuangdongXingdaHongyeElectronicsCo.,Ltd.hasbuiltanemergencypool(600m3,undergroundpoolofsewagetreatmentstation)andsetupafirepool(500m

andlocatedonFloor1ofFactoryBuildingNo.2),whichserveastemporarystoragepoolsforexteriordrainageorfiredrainagetoeradicateaccidentaldischargeofwastewaterinthecaseoffailedoperationofthesewagetransmissionpipelineorfireaccidentduetooutageorotherspecialcircumstances.Thesewagetransmissionpipelinehasbeenequippedwithanti-corrosionandcathodicprotectionusinganti-corrosionpipesandcarbonsteelpipes.Pursuanttothenewdischargestandards,therelateddischargepipelinehasbeenmodifiedandtheproductiondepartmenthasbeenrequiredtodischargestrictlyinaccordancewithdischargestandardstocutthecostsofwastewatertreatment.Differenttypesofwastewaterarenormallyandproperlytreatedthroughfineshunting.Thechemicalliquidtankshallbemanagedbyspecialpersonnel,andthesuppliershalltimelypulltheliquidmedicineforreasonablecontrolandrequirementsoftheworkshopsewage,Andpreparegasmasks,boots,submersiblepumpsandotheremergencyrescuetools.

2.BoluoKonkaandBoluoKonkaPrecisionBoluoKonkaandBoluoKonkaPrecisionstrictlyabidesbyEmergencyResponseLawofthePeople'sRepublicofChina,InterimMeasuresfortheManagementofEmergencyPlansforUnexpectedEnvironmentalIncidents,otherrelatedlawsandregulationsaswellastherequirementsofrelevantdocuments.Theyhaveestablishedriskpreventionmeasuresandemergencyplans,suchasEmergencyPlanforUnexpectedEnvironmentalIncidents,andhavetheiremergencyequipmentruninanormalstatus.Inaddition,theyhavefiledwithBoluoCountyBranchofEcologyandEnvironmentBureauinHuizhou,GuangdongandHuizhouEcologyandEnvironmentBureaurespectivelywiththefileNo.441322-2024-0011-Mand441322-2024-0396-M.Theyorganizeallstafftoconductdrillsformajorenvironmentalpollutionincidentseveryyeartoimprovetheirabilityfortheemergencyresponsetounexpectedenvironmentalpollutionincidents.

BoluoKonkaandBoluoKonkaPrecisionarefullyequippedwithemergencyresponsefacilities,withanindustrialwastewateremergencypoolofabout1,500m?(theundergroundpoolof

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thesewagestation),andafirepoolof300m?(nexttothestaffdormitorybuilding).Incaseofenvironmentalemergencies,suchaspipeburstandleakageofwastewaterconveyingpipesorfailuretooperatenormally,thewastewateremergencypoolshallbeusedasanemergencytemporarystoragepoolforindustrialwastewatertopreventindustrialwastewateraccidents;Incaseofafiresafetyincident,thefirepoolshallbeusedforemergency.Alldepartmentsarerequiredtodischargepollutantsstrictlyinaccordancewithpollutantdischargestandardstoreducethecostsofwastewatertreatmentbyproperlyandreasonablydividingsolutionandwastewaterdischargedfromtheplants.Thechemicalwarehouseshallbemanagedbyspecialpersonnel,andthesuppliershallcarryoutstandardizedcontrolandrequirementswhenloadingandunloadingchemicals;Emergencysupportingmaterials:preparegasmasks,acidandalkaliresistantwatershoes,gloves,goggles,safetyropes,helmets,firesand,submersiblepumpsandotheremergencyrescuetools.InputinenvironmentalgovernanceandprotectionandpaymentofenvironmentalprotectiontaxFromJanuarytoDecember2024,theCompanyinvestedaboutRMB29.407millioninenvironmentaltreatmentandprotection,andpaidRMB23,700inenvironmentalprotectiontaxfromJanuarytoDecember2024.MeasurestakentodecreasecarbonemissionintheReportingPeriodandcorrespondingeffects

√Applicable□NotapplicableTheCompanyanditsaffiliatedenterprisespracticedtheconceptofgreendevelopment,adoptedmeasuressuchastheuseofgreenenergy,processimprovement,transformationandeliminationofhighenergyconsumptionequipment,andthecarbondioxideemissionsdecreasedby

10.61%year-on-year.NoadministrativepunishmentswerereceivedintheReportingPeriodduetoenvironmentalissues.

NoadministrativepunishmentswerereceivedintheReportingPeriodduetoenvironmentalissues.

Otherenvironmentalinformationthatshouldbedisclosed

1.XingdaHongye

TheenvironmentalprotectioninvestmentofXingdaHongyefromJanuarytoDecember2024wasapproximatelyRMB17million,mainlyusedforthedepreciationinEnvironmentalgovernanceequipmentandfacilities,treatmentofsewage,wastegasandsolidwaste,aswellasthemaintenanceandupgradingofenvironmentalprotectionequipment.

2.BoluoKonkaandBoluoKonkaPrecision

ThetotalenvironmentalprotectioninvestmentofBoluoKonkaandBoluoKonkaPrecisionin2024wasaboutRMB11million,whichwasmainlyusedforthedailytreatmentcostofwastewaterandwastegasandfacilitymaintenancecost.Inaddition,BoluoKonkaandBoluoKonkaPrecision

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disclosedenvironmentalrelatedinformationsuchasindustrialsewage,wastegas,noiseandsolidwasteonenvironmentalprotectionplatformssuchasGuangdongSolidWasteEnvironmentalSupervisionInformationPlatform,NationalPollutantDischargePermitManagementInformationPlatform-EnterprisePortal,GuangdongWhole-processIoTAutomaticMonitoringPlatformforPollutionSources-EnterprisePortal,EnvironmentalStatisticsBusinessSystemPlatform,andAutomaticMonitoringandBasicDatabaseSystemforKeyPollutionDischargeUnits(EnterprisePortal).OtherEnvironmentalInformationAccordingtotheexaminationbytheCompany,theCompanyanditsotherholdingsubsidiariesarenotkeypollutantunits.Allhavefaithfullyimplementedthelawsandregulationsrelatedtoenvironmentalprotection,suchasEnvironmentalProtectionLawofthePeople'sRepublicofChina,WaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,AirPollutionPreventionandControlLawofthePeople'sRepublicofChina,EnvironmentalNoisePollutionPreventionandControlLawofthePeople'sRepublicofChina,andSolidWastePollutionPreventionandControlLawofthePeople'sRepublicofChinainthedailyproductionandoperation.

II.SocialResponsibilitiesTheCompanyinsiststheprincipleofhealth,stabilityandsustainabledevelopmenttobenefitshareholdersandemployeesandsatisfycustomers.Inpursuitofeconomicprofitsandprotectionofshareholders’profits,theCompanyisactiveinprotectinglegalrightsofdebtorsandemployees,treatingsuppliers,customersandconsumersingoodfaith,andparticipatinginenvironmentalprotectionandcommunityestablishmentforharmoniousdevelopmentoftheCompanyandsociety.

1.Toprotectrightsofshareholdersandcreditors

(1)TheCompanyprotectsrightsofshareholdersTheCompanyinsistsprotectionofrightsforallshareholders,especiallyequalstatusandlegalrightsforminorityshareholders,andmakeinsuranceofrightstobeinformed,participationandvote.TheCompanyactivelyperformsitsobligationofinformationdisclosuretoensurethetimely,accurateandcompletedisclosureofinformation;Andstrictlyimplementstheinsiderregistrationandinsideinformationconfidentialitysystemtoensurethefairnessofinformationdisclosure.TheCompanypaysattentiontorepaytoshareholders,andinsistsonmutualdevelopmentwithinvestors.TheCompanyhasstrictlyadheredtothecashdividendpolicystipulatedintheArticlesofAssociation,andthecashdividendsdistributedbytheCompanyareincompliancewiththeprovisionsoftheArticlesofAssociationandtherequirementsoftheresolutionsofgeneralmeetingsofshareholders.

(2)TheCompanyprotectsrightsofcreditorsInfullconsiderationoflegalrightsofcreditors,theCompanycomplieswithstrictbusinessrulesofcreditcooperationtoguaranteelegalrightsofcreditors.Nodamagesuponrightsof

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creditorshappened.

2.TheCompanyperformsresponsibilitiestosuppliersandcustomers

(1)Itisdevotedtoimprovecustomerservicequality.TheCompanyisinsistingphilosophyofcustomerorientationtostrengthencustomerservicemanagement,serviceconsciousnessforemployees,servicelevelsandtoprotectrightsforcustomers.Throughcustomerservicehot-line,fieldvisitandfollow-upservice,theCompanyhassetagoodcorporateimageforcustomers.

(2)BehonesttosuppliersFollowingtheprincipleofintegrityandmutuallybeneficialcooperation,theCompanykeepsgoodcooperativerelationswithsuppliersateachlevel.Thecorporateprincipleisopen,fairandimpartialtostandardizeprocurement,protectsuppliers’legalrightsandlaysolidfoundationforfurthercooperation.

3.BeenthusiastictosocialandpublicwelfareundertakingsBasedontheprincipleofappreciatingandrepayingthesociety,theCompanyhasparticipatedinallkindsofactivitiesforpublicwelfare,cooperatedwithsociety,undertakensocialresponsibilitiesactivelyandpromotedharmoniousdevelopmentbetweenenterpriseandsociety.

4.BeresponsibleforemployeesTheCompanyinsiststheprincipleofpeopleorientationtoimproveworkingenvironment,promoteoccupationalskills,provideopportunityandplatformfordevelopmentandgrowthandencourageselfupgradationandrealizationforemployees.Mutualimprovementforemployeesandenterprisecouldbeachieved.

(1)Behonestandlaw-abidingtoprotectlegalrightsforemployeesTheCompanywouldstrictlycomplywithlawsandregulationsinLaborLawandLaborContractLawtosignlaborcontractwithemployeeswithfairtreatmentinemployment,payment,training,promotion,dismissalandretirement.Also,theCompanywouldpayallkindsofinsurancesandhousingfundforemployees.Regularphysicalexaminationwouldbeorganizedforeachyear.Anyproblemsfoundwouldrequirere-examinationandconsultationfromadoctor.TheCompanywouldimprovelivingquality;enhancecohesiveforceandsenseofbelongingsthroughaseriesofsafeguardmeasures.

(2)ToprotectoccupationalhealthforemployeesOntheonehand,theCompanyobjectivelyandeffectivelyguaranteesthepersonalsafetyandoccupationalhealthofemployeesfromthesystembyestablishingandimprovingthesafetysystem,organizingrelevantlearningandstrictsafetyassessment;Ontheotherhand,throughvigorouspublicityofsafetyknowledge,safetyawarenessisdeeplyrootedintheheartsofthepeople,sothatemployeescanabidebysafetyregulationsspontaneouslyandconsciously,andplayapositivesubjectiveroleinensuringtheirownoccupationalhealthandproductionsafety.

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(3)TopromoteoccupationalskillsbydiversifiedprofessionaltrainingTheCompanyhasalwayspaidgreatattentionondiversifiedtrainingforemployees.Ontheonehand,theCompanyismeticulousinthetrainingofroutinebusinessandvocationalskills,andactivelyimplementsitinstrictaccordancewithrelevantnationalregulationstoensuretheimprovementofemployees'businesslevel,andimprovesemployees'vocationalskillsthroughnormalizedregulartrainingmanagement;Ontheotherhand,theCompanyprovidesemployeeswithmorecolorfultrainingprogramsthroughindependenttrainingplatforms,traininglecturers,specialtraining,lectures,etc.,sothatemployeescaneffectivelyimprovetheiroverallprofessionalqualityandcomprehensivequalityinadditiontotheirownwork.

5.BeresponsibleforenvironmentTheCompanyconcernsaboutenvironmentalchangesandcloserelationshipswithenvironmentbycreatinglowcarboneconomyintechnicalinnovation,fromgreenmanufacturing,greenproductstogreenindustrycirculareconomy.TheCompanywouldprovideeffortsinprotectingglobalecologicalenvironment.

Subsequently,theCompanywouldundertakeallsocialresponsibilitiesbyimprovingstrategicmanagement,sustainabledevelopmentandenterpriseeconomicefficiency.Itwouldreattributeallshareholdersandwouldprotectlegalrightsforcreditorsandemployees.Tobehonesttosuppliersandcustomers,theCompanywouldservelocaleconomicdevelopmentandparticipateinsocialpublicwelfareactivitiesandenvironmentprotection.Itwouldundertakeallresponsibilitiesinmanyfieldsandmakeattributionstosocial,economic,andenvironmentalsustainabledevelopmentforasocialismharmonioussociety.

III.ConsolidationandExpansionofPovertyAlleviationOutcomes,andRuralRevitalization

In2024,theCompanycontinuedtoactivelypurchasetheagriculturalandsidelineproductsfromSansuiandTianzhucountiesinGuizhouProvinceunderthe"assistancebyconsumption"project.Thetotalamountspentonthisprojectin2024amountedtoRMB246,400.InAugust2024,theCompanyheldthe"one-to-one"pairingsupportdonationceremonywithstudentsinthetwocounties.Morethan100Konka"dreampartners"donatedatotalofRMB240,000,andconductedin-depthvisitstotheaidedstudents.Representativesofthepairedemployeestalkedwiththestudents"handinhand,facetofaceandhearttoheart",providingfinancialassistance,materialsupportandeducationalinspirationforthem.

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SectionVIImportantMatters

IFulfillmentofCommitments

1.CommitmentsoftheCompany’sDeFactoController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-End

□Applicable√Notapplicable

None.

2.WherethereHadBeenanEarningsForecastforanAssetorProjectandtheReportingPeriodWasstillwithintheForecastPeriod,ExplainwhytheForecastHasBeenReachedfortheReportingPeriod.

□Applicable√Notapplicable

II.OccupationoftheCompany’sCapitalbytheControllingShareholderoranyofItsRelatedPartiesforNon-OperatingPurposes

□Applicable√Notapplicable

None.

III.IrregularitiesintheProvisionofGuarantees

□Applicable√Notapplicable

NosuchcasesintheReportingPeriod.

IV.ExplanationsGivenbytheBoardofDirectorsRegardingtheLatest“ModifiedOpinion”ontheFinancialStatements

□Applicable√Notapplicable

VExplanationsGivenbytheBoardofDirectors,theBoardofSupervisorsandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod

□Applicable√Notapplicable

VI.YoYChangesinAccountingPolicies,EstimatesorCorrectionofMaterialAccountingErrors

√Applicable□Notapplicable

October25,2023,theMinistryofFinanceissuedtheInterpretationoftheAccountingStandardsforBusinessEnterprisesNo.17,ofwhichthecontentsof"DivisionofCurrentLiabilitiesandNon-currentLiabilities","DisclosureofSupplierFinanceArrangement"and"AccountingTreatmentofPost-salesLeasebackTransactions"willcomeintoforcefromJanuary1,2024.Accordingtotherelevantrequirements,theGrouphasmadecorrespondingchangestotheaccountingpolicies.ThechangesinaccountingpolicieshavenosignificantimpactontheGroup'stotalassets,totalliabilities,netassets,net

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profitsandotherfinancialindicators.OnDecember6,2024,theMinistryofFinanceissuedtheInterpretationoftheAccountingStandardsforBusinessEnterprisesNo.18,stipulatingthattheestimatedliabilitiesarisingfromguarantee-typequalityassurancethatdoesnotbelongtosingleperformanceobligationshallbeincludedin"primarybusinesscosts"and"otherbusinesscosts"accordingtothedeterminedamount,andshallnolongerbeincludedin"sellingexpenses".Accordingtotheaboveaccountinginterpretation,theGrouphasmadecorrespondingchangestotheoriginalaccountingpoliciesandretroactivelyadjustedthe"costofsales","sellingexpenses"andotherstatementitems.TheCompanystartedtoimplementtheseprinciplesfromJanuary1,2024.InaccordancewiththerelevantprovisionsofInterpretationNo.18,thenamesandamountsofthesignificantlyaffectedstatementitemsaresetforthbelow:

Itemaffected

VII.YoYChangesintheScopeoftheConsolidatedFinancialStatements

√Applicable□NotapplicablePleasereferto6.ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriodof2.RevenueandCostsofIV.CoreBusinessAnalysisinSectionIIIOperatingPerformanceDiscussionandAnalysisofthisReportfordetails.VIII.EngagementandDisengagementofIndependentAuditorCurrentindependentauditor

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haveprovidedauditservicefortheCompany(ifany)

IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod

□Yes√NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:

√Applicable□NotapplicableShineWingCertifiedPublicAccountantsLLPwasappointedastheinternalcontrolauditoroftheCompanyfor2024withRMB700,000(tax-exclusive)ofpaymentfortheinternalcontrolaudit.IX.PossibilityofDelistingafterDisclosureofthisReport

□Applicable√NotapplicableXInsolvencyandReorganization

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XI.MajorLegalMatters

√Applicable□Notapplicable

haveprovidedauditservicefortheCompany(ifany)

Generalinformation

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AnhuiKonkaElectronicsCo.,Ltd.,suedMaoxinyuanElectronics(Shenzhen)Co.,Ltd.,requestingthatthedefendantbeorderedtobearjointandseveralguaranteeliabilityfortheplaintiff.

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ProductsCo.,Ltd.filedalawsuitagainsttheCompany'ssubsidiaryHenanFrestecRefrigerationApplianceCo.,Ltd.,requestingaconfirmationthattheperiod-endexcessVATpaidthathadbeenreturnedbythetaxauthoritytothedefendantshouldhavebeenotherpropertiestobedistributed.

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AgreementontheTransferofCreditor'sRightsandtherelevantsupplementalagreementpreviouslysignedbythedefendants.

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HerewinTechnologyGroup(HK)Co.,Ltd.,ZHANGLixia,AnhuiBaolinIndustrialCo.,Ltd.,ZENGQingpeng,andZHONGYuhuatoreturnthepaymentforgoodsandpaythecorrespondingliquidateddamages.

Remarks:thecourtorarbitrationinstitutionruledinfavoroftheCompanyinthefollowingcases,andtherulesarecurrentlybeingimplemented.Fordetailsofthecases,pleaserefertotheAnnouncementonLarge-amountPendingLitigationandArbitration(AnnouncementNo.:2019-63)disclosedbytheCompanyonJune25,2019,theAnnouncementonCumulativeLitigationandArbitration(AnnouncementNo.:2020-97)disclosedonSeptember19,2020,theAnnouncementonCumulativeLitigationandArbitration(AnnouncedNo.:2021-48)disclosedonJune1,2021,theAnnouncementonCumulativeLitigationandArbitration(AnnouncedNo.:2021-101)disclosedonDecember1,2021,theAnnouncementonCumulativeLitigationandArbitration(AnnouncementNo.:2022-89)disclosedonNovember24,2022,theAnnouncementonCumulativeLitigationandArbitration(AnnouncementNo.:2023-37)disclosedonJune1,2023,theAnnouncementonCumulativeLitigationandArbitration(AnnouncementNo.:2023-39)disclosedonJune22,2023,andtheregularreportsoftheCompany:1.fornotesnotpaidatmaturity,theCompanyfiledalawsuitwiththecourt,requestingthatChinaEnergyElectricFuelCo.,Ltd.,ChinaEnergy(Shanghai)IndustrialCo.,Ltd.,ShanghaiNengpingIndustrialCo.,Ltd.,andShenzhenQianhaiBaoyingCommercialFactoringCo.,Ltd.paythenotesandthecorrespondinginteresttotheCompany;2.Duetotheunpaidnotesdue,theCompanyfiledalawsuitwiththecourt,requestingthatCEFCShanghaiInternationalGroupLimitedandTianjinInternationalTradePetrochemicalCo.,Ltd.beorderedtopaythenotesandcorrespondingintereststotheCompany;3.Duetotheunpaidnotesdue,theCompanyfiledalawsuitwiththecourt,requestingthatCEFCShanghaiInternationalGroupLimited,QingdaoBondedZhongsheInternationalTradeCo.,Ltd.andShenzhenQianhaiBenniuAgriculturalTechnologyCo.,Ltd.beorderedtopaythenotesandcorrespondingintereststotheCompany;4.Duetotheunpaidnotesdue,KonkaFactoringfiledalawsuitwiththecourt,requestingthatTahoeGroupCo.,Ltd.,FuzhouTaijiaIndustrialCo.,Ltd.andXiamenLianchuangMicroelectronicsCo.,Ltd.beorderedtopaythenotesandcorrespondingintereststoKonkaFactoring;5.Sincethenoteswerenotrepaidwhendue,theCompanyfiledalawsuitwiththecourt,requestingthatHefeiHuajunTradingCo.,Ltd.andWuhanJialianAgriculturalScienceandTechnologyDevelopmentCo.,Ltd.beorderedtopaythenotesandcorrespondingintereststotheCompany;6.Duetodisputesoverlogisticscontracts,theCompany'ssubsidiaryAnhuiKonkaElectronicsCo.,Ltd.suedthefreightforwardingcompaniesShanghaiLikaiLogisticsCo.,Ltd.ShenzhenBranchandShanghaiLikaiLogisticsLtd.,demandingthemtobeartheresponsibilityforcompensationforlosses;

7.Duetoacontractdispute,theCompany'ssubsidiaryShenzhenNianhuaEnterpriseManagementCo.,Ltd.filedanarbitrationapplication,requestingtheRespondenttopaythecorrespondingannualprofitcompensationandfundoccupationfeetoFANGXianglongandJIANGYan;8.Duetoadisputeoverthepaymentforgoods,theCompany'ssubsidiaryHongKongKonkaCo.,Ltd.filedanarbitrationapplicationwiththeShenzhenCourtofInternationalArbitration,requiringtherespondentMAKENAELECTRONIC(HONGKONG)COMPANYLIMITEDtopaythepaymentforgoodsandliquidateddamages;9.Duetoadisputeoverthepurchaseandsalescontractofinternationalgoods,theCompany'ssubsidiaryAnhuiKonkaElectronicsCo.,Ltd.,suedMAKENAELECTRONIC(HONGKONG)COMPANYLIMITED,requestingthattherespondentbeorderedtopaytheapplicanttheinterestonoverduepaymentandlosses;10.Duetoadisputeoverrepurchase,theCompanysuedLuoZaotong,LuoJingxia,LuoZongyin,LuoZongwuandShenzhenYaodeTechnologyCo.,Ltd.,requiringanordertopaythesharerepurchaseandinterests.11.duetocontractdispute,theCompanyfiledalawsuitwiththeIntermediatePeople'sCourtofZhengzhou,requiringHenanRadioandTelevisionNetworkCo.,Ltd.totakedeliveryofthegoodsaccordingtothecontractandpaythepaymentforgoods,interestandliquidateddamages;12.duetocontractdispute,ShenzhenKonkaUnifortuneTechnologyCo.,Ltd.,asubsidiaryoftheCompany,suedShenzhenYaodeTechnologyCo.,Ltd.,DongshengXinluoTechnology(Shenzhen)Co.,Ltd.,ShenzhenHongyaoDingshengInvestmentManagementCo.,Ltd.,ShenzhenXiangruiYingtongInvestmentManagementLP,LUOJingxia,LUOZongwu,LUOZongyin,LUOZaotong,andLUOSaiyin,demandingpaymentofgoodsandliquidateddamages;

13.duetotrademarkinfringementandunfaircompetition,theCompanysuedFu'anXinshangElectronicsCo.,Ltd.,FujianZhaoguanIndustryandTradeCo.,Ltd.,JinhuaKonkaMedicalEquipmentFactoryandWANGJun,demandinganordertostoptheinfringementandcompensatefortheloss;

14.duetocommissioncontractdispute,theCompany'ssubsidiaryAnhuiKonkaElectronicsCo.,Ltd.suedShenzhenMeisenyuanPlasticElectronics

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Co.,Ltd.,ShantouMeisenTechnologyCo.,Ltd.,LINYuanqin,HUANGRuirongandJiangsuEastChinaHardwareCityCo.,Ltd.,requestinganordertoterminatethecontract,returnthepaymentforgoodsandpayliquidateddamageswithpriorityincompensationforthemortgagedproperty;

15.Duetocommissioncontractdispute,theCompany'ssubsidiaryAnhuiKonkaElectronicsCo.,Ltd.suedShantouMeisenTechnologyCo.,Ltd.,ShenzhenMeisenyuanPlasticElectronicsCo.,Ltd.,LINYuanqin,HUANGRuirongandJiangsuEastChinaHardwareCityCo.,Ltd.,requestinganordertoterminatethecontract,returnthepaymentforgoodsandpayliquidateddamageswithpriorityincompensationforthemortgagedproperty;

16.Duetoadisputeovertheloancontract,theCompanysuedYantaiKangyueInvestmentCo.,Ltd.,requestingthatthedefendantbeorderedtorepaytheloanandinterest;17.Duetotheequityrepurchasedispute,theCompany'ssubsidiaryShenzhenNianhuaEnterpriseManagementCo.,Ltd.,suedFANGXiangLongandJIANGYan,requestingtorepurchasetheequityandpaytherepurchaseprice;18.duetopurchaseandsalescontractdispute,SichuanKonkaIntelligentTerminalTechnologyCo.,Ltd.,asubsidiaryoftheCompany,suedShenzhenJunxingCommunicationTechnologyCo.,Ltd.,ShenzhenHongxingFengdaIndustrialDevelopmentCo.,Ltd.,ShenzhenJunxingJunyeElectronicsCo.,Ltd.,LiuyangHuaichuanHeyuanVillaCo.,Ltd.,ZENGJiankaiandZHONGYuhuaforpaymentofgoodsandliquidateddamages,whichisbeingimplemented;19.Duetocontractdisputes,theCompany'ssubsidiaryKonkaTelecommunicationsTechnologyCo.,Ltd.suedHongKongJoinStarElectronicsInternationalLimited,ZENGJiankaiandZHONGYuhua,demandingpaymentofgoodsandliquidateddamages;20.Becauseofadisputeoveratrustcontract,theCompany’ssubsidiary,HenanFrestecRefrigerationApplianceCo.,Ltd.suedShenzhenMeisenyuanPlasticElectronicsCo.,Ltd.,ShantouMeisenTechnologyCo.,Ltd.,LINYuanqin,HUANGRuirong,ChuangfuCommerce&TradePlazaRealEstateDevelopment(Huizhou)Co.,Ltd.,requiringanordertoterminatethecontract,andthemreturnthepaymentforgoods,payliquidateddamagesandgiveprioritytothemortgagedproperty.21.Duetoadisputeoveratrustcontract,theCompany’ssubsidiary,HainanKonkaMaterialTechnologyCo.,Ltd.suedShenzhenMeisenyuanPlasticElectronicsCo.,Ltd.,ShantouMeisenTechnologyCo.,Ltd.,JiangsuEastChinaHardwareCityCo.,Ltd.,requiringanordertoterminatethecontract,andthemreturnthepaymentforgoods,payliquidateddamagesandgiveprioritytothemortgagedproperty.22.Duetoadisputeoverapurchaseandsalescontract,theCompany'ssubsidiary,DongguanKonkaElectronicsCo.,Ltd.filedalawsuitwithPeople'sCourtofNanshanDistrict,Shenzhen,requestingthelattertoorderDongguanGaonengPolymerLimitedCompany,WANGDong,ShenzhenXinlianXingyaoTradingCo.,Ltd.,ShenzhenJinchuanQianchaoNetworkTechnologyCo.,Ltd.,PuningJunlongTradingCo.,Ltd.,HUANGZhihaotopaytheoverduepaymentandcorrespondingliquidateddamages.Thefollowingcaseshavebeendisclosedininterimannouncementsandperiodicreportsandareundertrial.Fordetailsofthecases,pleaserefertotheAnnouncementonLarge-amountPendingLitigationandArbitration(AnnouncementNo.:2019-63)disclosedbytheCompanyonJune25,2019,theAnnouncementonCumulativeLitigationandArbitration(AnnouncementNo:2020-97)disclosedonSeptember19,2020,theAnnouncementofCumulativeLitigationandArbitration(AnnouncementNo.:2021-48)disclosedonJune1,2021,theAnnouncementaboutCumulativeLitigateandArbitration(AnnouncementNo.:2021-101)disclosedonDecember1,2021,theAnnouncementonCumulativeLitigationandArbitration(AnnouncementNo.:2022-89)disclosedonNovember24,2022,theAnnouncementonCumulativeLitigationandArbitration(AnnouncementNo.:2023-37)disclosedonJune1,2023,theAnnouncementonCumulativeLitigationandArbitration(AnnouncementNo.:2023-

39)disclosedonJune22,2023,andtheCompany'speriodicreports:1.thecustomerofHongKongKonka,H-BUSTERSAOPAULOINDUSTRIAECOMERCIOS.A(Brazil),encounteredinsolvencyandobtainedapprovalforthejudicialreorganizationapplicationfromtheThirdCivilCourtofCotia,SaoPauloState,Brazil,inMay2013.AsthecreditorofH-BUSTER,HongKongKonkasubmittedtheclaimapplicationdocument,andtherecognizedclaimamountinAugust2014wasapproximatelyUSD2.78million;2.AsthebillsheldbytheCompanyfailedtobepaiduponmaturity,theCompanyfiledalawsuitwiththecourt,requestingthelattertoorderWuhanJialianAgriculturalTechnologyDevelopmentCo.,Ltd.topaytheaforesaidbillsandcorrespondinginteresttotheCompany.3.Duetodisputesoverinternationalgoodscontracts,theCompany'ssubsidiaryJiaxinTechnologyCo.,Ltd.,suedTRIPODELECTRONICSTECHNOLOGY(HONGKONG)LIMITED.,CHENWenhuanandCHENBaohong,requestingthatthedefendantsbeorderedtopaythepurchasepriceandliquidateddamages;4.Duetoapurchaseandsalescontract,SichuanShuwuGuangrunLogisticsCo.,Ltd.filedalawsuitagainsttheCompany’ssubsidiaryDongguanKonkaElectronicsCo.,Ltd.,requestingthelattertomakepaymentforgoodsandpayliquidateddamages.5.Duetoadisputeoverthepurchaseandsalescontractofinternationalgoods,MicroCrystalTransferGroupLtd.filedalawsuitagainsttheCompany'ssubsidiaryChongqingKonkaOptoelectronicsTechnologyResearchInstituteCo.,Ltd.,requestingthelattertomakepaymentforgoodsandpayliquidateddamages.6.Duetoacontractualdispute,theCompanyfiledalawsuitagainstZhuXinming,LengSumin,GongqingchengJinzhuanrongInvestmentManagementPartnership(LimitedPartnership),andGongqingchengXinruiInvestmentManagementPartnership(LimitedPartnership),requestingthemtopaythe

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performancecompensation.7.SinceJiangxiXinxinJian'anEngineeringCo.,Ltd.(hereinafterreferredtoas"JiangxiXinxin"),JiangxiShanshiTechnologyDevelopmentCo.,Ltd.(hereinafterreferredtoas"JiangxiShanshi"),andJiangxiZhongyiDecorativeMaterialsCo.,Ltd.(hereinafterreferredtoas"JiangxiZhongyi")failedtorepaytheloanandinteresttoJiangxiBranchofChinaGreatWallAssetManagementCo.,Ltd.(hereinafterreferredtoas“JiangxiBranchofGreatWallAsset”)whosuedthecourtforajudgmenttorepaytheloanofRMB300million,defaultpenaltyofRMB108,000andinterestofRMB13.65million,andatthesametime,nineguarantorsincludingJiangxiKonka,XinfengMicrocrystallineandNanoMicrocrystallinewererequestedtoundertakejointandseveralliabilityguarantee.

XII.PunishmentsandRectifications

□Applicable√NotapplicableNone.XIII.CreditQualityoftheCompanyaswellasitsControllingShareholderandDeFactoController

□Applicable√NotapplicableXIV.MajorRelated-PartyTransactions

1.ContinuingRelated-PartyTransactions

√Applicable□Notapplicable

Relatedparty

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2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests

√Applicable□Notapplicable

Fordetails,pleaserefertotherelevantcontentsofothermajorrelated-partytransactionsinpoint7ofthissubsection.

3.Related-partytransactionsregardingjointinvestmentsinthirdparties

□Applicable√Notapplicable

NosuchcasesintheReportingPeriod.

4.CreditsandLiabilitieswithRelatedParties

√Applicable□Notapplicable

Indicatebytickmarkwhethertherewereanycreditsandliabilitieswithrelatedpartiesfornon-operatingpurposes.

√Yes□No

Nocreditsreceivablewithrelatedparties

Liabilitiespayabletorelatedparties:

Relatedparty

5.TransactionswithRelatedFinanceCompanies

□Applicable√Notapplicable

TheCompanydidnotmakedepositsin,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedfinancecompanyoranyotherrelatedparties.

6.TransactionswithRelatedPartiesbyFinanceCompaniesControlledbytheCompany

□Applicable√Notapplicable

ThefinancecompanycontrolledbytheCompanydidnotmakedeposits,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedparties.

7.OtherMajorRelated-PartyTransactions

√Applicable□Notapplicable

(1)TheCompany'sprovisionofcounter-guaranteesandpaymentoftheguaranteefeeforapplyingforbankcreditfacilities:theCompanyreviewedandapprovedtheProposalontheCompany'sProvisionofCounter-guaranteesandPaymentofGuaranteeFeeforApplyingforBankCreditFacilitiesatthe23rdMeetingoftheTenthBoardofDirectorsheldonMarch1,2024andthe

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2nd2024ExtraordinaryGeneralMeetingheldonMarch18,2024.Toreducefinancingcostsandoptimizethedebtstructure,theCompanyintendstoapplytoOverseasChineseTownHoldingsCompanytoprovideafull,unconditionalandirrevocablejointandseveralliabilityguaranteeforthebankcreditfacilitiesofuptoRMB1.6billionthattheCompanyintendstoapplyfor.Inthisregard,theCompanyintendstoprovideacounter-guaranteewithequivalentamountanddurationtoOverseasChineseTownHoldingsCompany,andtheestimatedcounter-guaranteeamountwillnotexceedRMB1.6billion,withtheguaranteeperiodnotexceeding3years;Inaddition,theCompanyintendstopaytheguaranteefeetoOverseasChineseTownHoldingsCompanyfortheactuallyusedguaranteeamount.Itisestimatedthattheguaranteefeeratewillnotexceed0.5%oftheactuallyusedguaranteeamount,meaningthatbasedontheguaranteeamountofRMB1.6billion,thetotalguaranteefeespaidbytheCompanywillnotexceedRMB8millionduringtheguaranteeperiod,andtheactualamountshallbesubjecttothecontractterms.

(2)TheCompany'snon-publicissuanceofcorporatebondsandtheprovisionofcounter-guaranteeandpaymentoftheguaranteefeetoOverseasChineseTown:theCompanyreviewedandapprovedtheProposalontheCompany'sPlanforNon-publicIssuanceofCorporateBondsatthe33rdMeetingoftheTenthBoardofDirectorsheldonSeptember10,2024andthe3rd2024ExtraordinaryGeneralMeetingheldonSeptember26,2024.Toreducefinancingcosts,OCTGroupintendstoprovideafull,unconditional,andirrevocablejointliabilityguaranteefortheCompany'snon-publicissuanceofcorporatebondsnotexceedingRMB2.4billion(inclusive).Simultaneously,theCompanyplanstoprovideanequivalentandconcurrentcreditcounter-guaranteetoOCTGroup,withthecounter-guaranteeamountnotexceedingRMB2.4billion(inclusive)andtheguaranteeperiodnotexceeding5years.Inaddition,theCompanyintendstopaytheguaranteefeetoOCTGroupfortheactuallyusedguaranteeamount.Itisestimatedthattheguaranteefeeratewillnotexceed0.5%oftheactuallyusedguaranteeamount,meaningthatbasedontheguaranteeamountofRMB2.4billion,thetotalguaranteefeepaidbytheCompanywillnotexceedRMB12millionduringtheguaranteeperiod,andtheactualamountshallbesubjecttothecontractterms.

(3)Listingandtransferofpartialequityintheinvesteecompanyandwaiveroftherightoffirstrefusal:theCompanyreviewedandapprovedtheProposalonListingandTransferofPartialEquityofKunshanKangshengInvestmentDevelopmentCo.,Ltd.andWaiveroftheRightofFirstRefusalatthe37thMeetingoftheTenthBoardofDirectorsheldonNovember6,2024.TheCompanyjointlylistedandtransferredits29.4%equityinKunshanKangshengInvestmentDevelopmentCo.,Ltd.,andthe30.6%equityheldbyTaizhouOverseasChineseTownCo.,Ltd.inthesamecompany,andwaiveditsrightoffirstrefusalforthe30.6%equitylistedandtransferredbyTaizhouOverseasChinaTownCo.,Ltd.ThismoveaimstooptimizetheCompany'sassetallocation,recoverfunds,enhanceassetliquidity,andimproveoveralloperationalefficiency.AccordingtotheShanghaiPropertyTransactionContractsignedbytheCompany,TaizhouOverseasChineseTownCo.,Ltd.

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andKunshanFangxinEquityInvestmentManagementCo.,Ltd.,theCompanyhasreceivedalltheequitytransferpriceandcompletedtheindustrialandcommercialregistrationofchangesofKunshanKangshengInvestmentDevelopmentCo.,Ltd.

(4)ExtensionofInvestmentPeriodofWuzhenJiayuFund:The38thMeetingoftheTenthBoardofDirectorsoftheCompanyheldonDecember13,2024andthe2025FirstExtraordinaryGeneralMeetingofShareholdersheldonJanuary3,2015reviewedandapprovedtheProposalontheExtensionoftheInvestmentPeriodofWuzhenJiayuFund.Duetotheneedsofbusinessdevelopment,TongxiangJiayuDigitalEconomyIndustryEquityInvestmentPartnership(LimitedPartnership)intendstochangetheinvestmentperiodfrom4yearsto5yearsandtheexitperiodfrom3yearsto2yearsonthepremisethattheoperationperiodremainsunchangedandthetotalmanagementfeedoesnotincrease.Indextothepublicannouncementsaboutthesaidrelated-partytransactionsdisclosed

Titleofpublicannouncement

XV.MajorContractsandExecutionthereof

1.Entrustment,ContractingandLeases

(1)Entrustment

□Applicable√Notapplicable

None.

(2)Contracting

□Applicable√Notapplicable

None.

(3)Leases

√Applicable□Notapplicable

Notetoleases

NosignificantleasesintheReportingPeriod.

Duringthereportingperiod,KonkaR&DBuildingandKonkaGuangmingTechnologyCenterandotherpropertiesreceivedrentsofaboutRMB84.71million.

TheprojectbringingabouttheCompany'sprofitorlossasover10%oftotalprofitinthe

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ReportingPeriod

□Applicable√NotapplicableNoleaseprojectbringingabouttheCompany'sprofitorlossasover10%oftotalprofitintheReportingPeriod

2.MajorGuarantees

√Applicable□Notapplicable

Unit:RMB'0,000

GuaranteesprovidedbytheCompanyanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries)

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June25,2024

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KonkaCircuit

Compoundguarantees:

None

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3.CashEntrustedforWealthManagement

(1)Cashentrustedforwealthmanagement

√Applicable□NotapplicableOverviewofcashentrustedforwealthmanagementintheReportingPeriod

Unit:RMB'0,000

Type

High-riskentrustedwealthmanagementwithsignificantsingleamountorlowsecurityandpoorliquidity:

□Applicable√Notapplicable

Whetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedwealthmanagement

□Applicable√Notapplicable

(2)Entrustedloans

□Applicable√Notapplicable

None.

4.OtherMajorContracts

□Applicable√Notapplicable

NosuchcasesintheReportingPeriod.

XVI.OtherSignificantEvents

√Applicable□Notapplicable

(I)Initiationandestablishmentoffunds:thetotalscaleoftheOriental-KonkaIndustryM&AFundwasRMB1,001million.ShenzhenKonkaInvestmentHoldingCo.,Ltd.contributedRMB500million,accountingfor49.95%ofthetotalunits.Bythedateofthisreport,ShenzhenKonkaInvestmentHoldingCo.,Ltd.hascontributedRMB487.34million.ThefundinvestedinJiangxiYahuaElectronicMaterialsCo.,Ltd.,PotronTechnologyCo.,Ltd.,etc.

ThetotalscaleoftheKunshan-CITIC-KonkaEmergingIndustryDevelopmentInvestmentFundwasRMB100.6million.ShenzhenKonkaInvestmentHoldingCo.,Ltd.contributedRMB500million,accountingfor49.70%ofthetotalunits.Bythedateofthisreport,ShenzhenKonkaInvestmentHoldingCo.,Ltd.hascontributedRMB195.21million.ThefundinvestedinUNIONTECH,HerculesMicrosystems(HME),etc.

ThetotalscaleoftheTongxiangWuzhenJiayuDigitalEconomicIndustryFundwasRMB500million.ShenzhenKonkaInvestmentHoldingCo.,Ltd.contributedRMB200million,accounting

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for40%ofthetotalunits.Bythedateofthisreport,ShenzhenKonkaInvestmentHoldingCo.,Ltd.hascontributedRMB200,000,000.ThefundinvestedinFeidiTechnology(Shenzhen)Co.,Ltd.,AllystarTechnology(Shenzhen)Co.,Ltd.,etc.ThetotalscaleofYanchengKangyanIndustryInvestmentFundwasRMB3,000million.ShenzhenKonkaInvestmentHoldingCo.,Ltd.andShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd.contributedRMB1201,500,000,accountingfor40.05%ofthetotalunits.Bythedateofthisreport,ShenzhenKonkaInvestmentHoldingCo.,Ltd.andShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd.havecontributedRMB217.36million.ThefundinvestedinAnhuiZhongdianXinlongTechnologyCo.,Ltd.(formerlyknownasAnhuiZhongdianXingfaandXinlongCo.,Ltd.,ChongqingE2infoTechnologyCo.,Ltd.)andChongqingE2infoTechnologyCo.,Ltd.,etc.ThetotalscaleofYibinKanghuiElectronicInformationIndustryEquityInvestmentFundwasRMB1,002million.ShenzhenKonkaInvestmentHoldingCo.,Ltd.andShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd.contributedRMB401million,accountingfor40.02%ofthetotalunits.Bytheissuancedateofthisreport,ShenzhenKonkaInvestmentHoldingCo.,Ltd.hascontributedRMB106.6million.ThefundinvestedinChongqingE2infoTechnologyCo.,Ltd.,etc.ThetotalscaleofChongqingKangxinEquityInvestmentFundwasRMB2billion.ShenzhenKonkaInvestmentHoldingCo.,Ltd.andShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd.contributedRMB1billion,accountingfor50%ofthetotalunits.Bythedateofthisreport,ShenzhenKonkaInvestmentHoldingCo.,Ltd.andShenzhenKonkaCapitalEquityInvestmentManagementCo.,Ltd.havecontributedRMB148.25million.ThefundinvestedinShanghaiVEIGLOInformationSystemCo.,Ltd.,JiangxiTaideWisdomTechnologyCo.,Ltd.,etc.

(II)Issuanceofcorporatebonds:1.theCompany'snon-publicissuanceofcorporatebondsofRMB2.3billionhasissuedRMB1.5billionandRMB800millionrespectivelyonJanuary29,2024andMarch18,2024.2.TheCompany'snon-publicissuanceofcorporatebondsnotexceedingRMB2.4billionwasapprovedbytheGeneralMeetingoftheCompanyonSeptember26,2024,andtheLetterofNoObjectionontheComplianceofKonkaGroupCo.,Ltd.'sNon-publicIssuanceofCorporateBondswiththeListingRequirementsofShenzhenStockExchange(SZH[2024]No.

866)issuedbyShenzhenStockExchangewasobtainedonDecember18,2024.Mattersrelatedtobondissuancearecurrentlybeingpromotedasplanned.

(III)Progressontheplantoissuesharesforassetacquisitionandraisesupportingfunds:theCompanyintendstopurchase78%ofthesharesofMacroSiliconTechnologyCo.,Ltd.fromLiuWeiand16otherpartiesbyissuingshares,andsimultaneouslyraisesupportingfunds(referredtoas"thetransaction").Fordetailsonthetransaction,pleaserefertothePlanforIssuingSharestoPurchaseAssetsandRaiseSupportingFundsdisclosedbyKonkaGroupCo.,Ltd.onJanuary14,

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2025,oncninfo(http://www.cninfo.com.cn/new/index)andrelatedannouncements.

SincethedisclosureofthePlan,theCompanyandrelevantpartieshaveactivelyadvancedallaspectsofthetransaction.Asofthedisclosuredateofthisreport,relatedworksuchasduediligence,auditing,andvaluationforthetransactionwasinprogress.(IV)MajorissuesplannedbythecontrollingshareholderoftheCompany:onApril8,2024,theCompanywasnotifiedbyitscontrollingshareholderOCTGroup:inordertoadvancethespecializedintegrationamongthestate-ownedenterprisesandoptimizeallocationofresources,itwasplannedtointroduceothercentralenterprisegroupstoimplementspecializedintegrationoftheCompany,andrelevantsubsequentprocedureswillbecarriedoutinaccordancewiththelaw.ThisroundofintegrationmightbringchangesinthecontrollingshareholderoftheCompany,buttheactualcontrollerwouldremainunchanged,namelyState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil.Issuesrelatedtothisroundofintegrationwerestillinplanningandwithuncertainties.Subsequently,theCompanywouldstrictlycomplywithinformationdisclosurerequirements,continuouslymonitorrelevantdevelopments,andfulfillinformationdisclosureobligationsinatimelymannerinaccordancewithrelevantlawsandregulations.

(V)Indexofsignificantinformationdisclosure

AnnouncementNo.

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Directors

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2024-65

XVII.SignificantEventsofSubsidiaries

□Applicable√Notapplicable

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SectionVIIChangesinSharesandShareholdersI.ShareChanges

1.Sharechanges

Unit:share

Before

Reasonsforchangesinshareholding

□Applicable√NotapplicableApprovalofthesharechanges

□Applicable√NotapplicableTransferofshareownership

□Applicable√NotapplicableEffectsofthesharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:

□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:

□Applicable√Notapplicable

2.Changesinrestrictedshares

□Applicable√NotapplicableII.IssuanceandListingofSecurities

1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod

□Applicable√Notapplicable

2.Changesintotalshares,shareholderstructureandassetandliabilitystructure

□Applicable√Notapplicable

3.ExistingStaff-HeldShares

□Applicable√Notapplicable

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III.ShareholdersandDeFactoController

1.ShareholdersandTheirShareholdingsatthePeriod-End

Unit:share

Numberofordinaryshareholdersasattheendofthereportingperiod

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securitiesmargintrading(ifany)(seenote4)

Participationofshareholdersholdingmorethan5%oftheshares,thetop10shareholdersandthetop10shareholdersofunrestrictedtradablesharesinrefinancingbusinessandlendingshares

□Applicable√Notapplicable

Changesofthetop10shareholdersandthetop10shareholdersofunrestrictedtradablesharescomparedwiththepreviousperiodduetorefinancinglending/repayment

□Applicable√Notapplicable

Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.

□Yes√No

None.

2.ControllingShareholder

Natureofthecontrollingshareholder:Controlledbyacentralstate-ownedlegalperson

Typeofthecontrollingshareholder:legalperson

securitiesmargintrading(ifany)(seenote4)

Nameofcontrollingshareholder

Changeofthecontrollingshareholderinthereportingperiod

□Applicable√NotapplicableNone.

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3.DeFactoControllerandItsPersonsActinginConcertNatureoftheDeFactoController:Centralinstitutionforstate-ownedassetsmanagementTypeoftheDeFactoController:legalperson

NameofDeFactoController

ChangeoftheDeFactoControllerduringtheReportingPeriod:

□Applicable√NotapplicableNone.OwnershipandcontrolrelationsbetweentheDeFactoControllerandtheCompany:

TheDeFactoControllercontrolsthecompanythroughtrustorotherassetmanagementmethods

□Applicable√Notapplicable

4.NumberofAccumulativePledgedSharesheldbytheCompany’sControllingShareholderortheLargestShareholderaswellasItsActing-in-ConcertPartiesAccountsfor80%ofallsharesoftheCompanyheldbyThem

□Applicable√Notapplicable

5.Other10%orGreaterCorporateShareholders

□Applicable√Notapplicable

6.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,DeFactoController,ReorganizerandOtherCommitmentMakers

□Applicable√Notapplicable

IV.SpecificImplementationofShareRepurchasesintheReportingPeriod

Progressonanysharerepurchases:

□Applicable√Notapplicable

Progressonreducingtherepurchasedsharesbymeansofcentralizedbidding:

□Applicable√Notapplicable

State-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncilOverseasChineseTownHoldingsCompanyand

itswholly-ownedsubsidiaries

OverseasChineseTownHoldingsCompanyand

itswholly-ownedsubsidiaries

KonkaGroupCo.,Ltd.

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SectionVIIIPreferenceShares

□Applicable√NotapplicableNoPreferencesharesintheReportingPeriod.

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SectionIXBonds

√Applicable□NotapplicableI.EnterpriseBonds

□Applicable√NotapplicableNoenterprisebondsintheReportingPeriod.II.CorporateBonds

√Applicable□Notapplicable

1.BasicInformationoftheCorporateBonds

Unit:RMB'0,000

Name

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investorsin2024ofKonkaGroupCo.,Ltd.(TrancheII)(VarietyII)

Overduebonds

□Applicable√Notapplicable

2.TheTriggerandExecutionoftheOptionClauseoftheIssuersorInvestorsandtheInvestorProtectionClause

□Applicable√Notapplicable

3.Intermediary

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BeijingYingkeLawFirm

DidtheintermediarychangeduringtheReportingPeriod?

□Yes√No

4.Useofraisedfunds

Unit:RMB'0,000

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agreements.

Theraisedfundswereusedforprojectconstruction

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□Applicable√NotapplicableTheCompanychangedtheusageofabovefundsraisedfrombondsduringtheReportingPeriod.

□Applicable√Notapplicable

5.AdjustmentofCreditRatingResultsduringtheReportingPeriod

□Applicable√Notapplicable

6.ExecutionandChangesofGuarantee,RepaymentPlanandOtherRepaymentGuaranteeMeasuresaswellasInfluenceonEquityofBondInvestorsduringtheReportingPeriod

√Applicable□Notapplicable

OverseasChineseTownHoldingsCompanyprovidesfull,unconditionalandirrevocablejointliabilityguaranteefor"22Konka01","22Konka03","22Konka05","24Konka01","24Konka02"and"24Konka03".Duringthereportingperiod,theCompany'sguarantee,debtrepaymentplanandotherdebtrepaymentsafeguardmeasureswereimplementedinaccordancewiththeagreement,andtherewasnochange,whichhadnosignificantimpactontherightsandinterestsofbondinvestors.

III.DebtFinancingInstrumentsofNon-financialEnterprises

□Applicable√Notapplicable

NosuchcasesintheReportingPeriod.

IV.ConvertibleCorporateBonds

□Applicable√Notapplicable

NosuchcasesintheReportingPeriod.

V.LossesofScopeofConsolidatedFinancialStatementsduringtheReportingPeriodExceeding10%ofNetAssetsupthePeriod-endofLastYear

√Applicable□Notapplicable

Item

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theCompany'sprofitability.

3.In2024,basedontheprincipleofprudence,theCompanymadeaprovisionforassetimpairmentofRMB1.345billioninaccordancewithaccountingpoliciesandestimates,resultinginadecreaseinprofits.

4.In2024,thevaluechangesoffinancialassetsmeasuredatfairvalueheldbytheCompanyandtheincreaseofcontingentconsiderationresultedintheCompany'sprofitorlossfromchangesinfairvalueofaboutRMB-363million

VI.MaturedInterest-bearingDebtexcludingBondsasastheReportingPeriod

□Applicable√NotapplicableVII.WhethertherewasanyViolationofRulesandRegulationsduringtheReportingPeriod

□Yes√NoVIII.TheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyasattheEndoftheReportingPeriod

Unit:RMB'0,000

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SectionXFinancialReport

I.IndependentAuditor’sReport

Typeoftheindependentauditor’sopinion

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separateopinionsonthesematters.

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AccountingPoliciesandAccountingEstimates17”,aswellas“VI.AnnotationstoMajorItemsintheConsolidatedStatements9”.

AsofDecember31,2024,theinventorybookbalanceofKonkaGroupwasRMB3.3408005billion,andtheinventoryimpairmentprovisionbalancewasRMB6.461523billion.AccordingtotheaccountingpolicyofKonkaGroup,inventoryismeasuredatthelowerofcostandnetrealizablevalueattheendoftheyear.Whenthenetrealizablevalueofinventoryislowerthancost,aprovisionforinventoryimpairmentismadebasedonthedifference.Duetotheprovisionforinventoryimpairmentinvolvingsignificantestimatesbymanagement,wehaveidentifiedtheimpairmentofinventoryasakeyauditmatter.

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frommaterialmisstatement,whetherduetofraudorerror.

Whenpreparingfinancialstatements,themanagementisresponsibleforassessingthegoingconcerncapabilityofKonkaGroup,disclosingmattersrelatedtogoingconcern(ifapplicable),andapplyingthegoingconcernassumption,unlessthemanagementplanstoliquidateKonkaGroup,terminateoperations,orhasnootherrealisticoptions.

ThegovernancelayerisresponsibleforsupervisingthefinancialreportingprocessofKonkaGroupCorporation.VI.ResponsibilitiesofCertifiedPublicAccountantsinAuditingFinancialStatements

Ourobjectiveistoobtainreasonableassuranceastowhetherthefinancialstatementsasawholearefreefrommaterialmisstatementduetofraudorerror,andtoissueanauditreportcontainingauditopinions.Reasonableassuranceisahigh-levelassurance,butitdoesnotguaranteethatanauditconductedinaccordancewithauditingstandardswillalwaysdetecttheexistenceofamaterialmisstatement.Misstatementsmaybecausedbyfraudorerror,andaregenerallyconsideredmaterialifitisreasonablyexpectedthatthemisstatements,individuallyorinaggregate,mayaffecttheeconomicdecisionsmadebyfinancialstatementusersbasedonthefinancialstatements.

Intheprocessofconductingauditworkinaccordancewithauditingstandards,weuseprofessionaljudgmentandmaintainprofessionalskepticism.Meanwhile,wealsocarryoutthefollowingtasks:

(1)Identifyandevaluatetherisksofmaterialmisstatementinfinancialstatementsduetofraudorerror,designandimplementauditprocedurestoaddresstheserisks,andobtainsufficientandappropriateauditevidenceasthebasisforissuingauditopinions.Duetothefactthatfraudmayinvolvecollusion,forgery,intentionalomission,falsestatements,oroverrideofinternalcontrols,theriskoffailingtodetectmaterialmisstatementscausedbyfraudishigherthantheriskoffailingtodetectmaterialmisstatementscausedbyerrors.

(2)Understandinternalcontrolsrelatedtoauditingtodesignappropriateauditprocedures.

(3)Evaluatetheappropriatenessofmanagement'sselectionofaccountingpoliciesandthereasonablenessofaccountingestimatesandrelateddisclosuresmade.

(4)Drawconclusionsontheappropriatenessofthemanagement'sutilizationofthegoingconcernassumption.Inaddition,basedontheobtainedauditevidence,aconclusioncanbedrawnonwhetherthereissignificantuncertaintyregardingthemattersorcircumstancesthatmayleadtosignificantdoubtsabouttheabilityofKonkaGrouptocontinueasagoingconcern.Ifweconcludethatthereissignificantuncertainty,auditstandardsrequireustodrawtheattentionofstatementuserstorelevantdisclosuresinthefinancialstatementsintheauditreport;ifthedisclosureisinsufficient,weshouldexpressanonunqualifiedopinion.Ourconclusionisbasedontheinformationavailableasofthedateoftheauditreport.However,futureeventsorcircumstancesmaypreventKonkaGroupfromcontinuingitsoperations.

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(5)Evaluatetheoverallpresentation,structure,andcontentoffinancialstatements,andassesswhetherthefinancialstatementsfairlyreflectrelevanttransactionsandevents.

(6)ObtainsufficientandpertinentauditevidenceonthefinancialinformationofentitiesorbusinessactivitieswithinKonkaGrouptoissueauditopinionsonthefinancialstatements.Weareresponsibleforguiding,supervising,andexecutinggroupaudits,andtakefullresponsibilityforauditopinions.

Wehavecommunicatedwiththegovernanceregardingtheplannedauditscope,timeline,andsignificantauditfindings,includingtheinternalcontroldeficienciesidentifiedduringtheauditthatdeserveattention.

Wehavealsoprovidedastatementtothegovernanceregardingcompliancewithprofessionalethicsrequirementsrelatedtoindependence,andcommunicatedwiththegovernanceregardingallrelationshipsandothermattersthatmayreasonablybeconsideredtoaffectourindependence,aswellasrelevantpreventivemeasures(ifapplicable).

Fromthemattersdiscussedwiththegovernance,wehaveidentifiedwhichonesaremostimportantfortheauditofthecurrentfinancialstatementsandthereforeconstitutekeyauditmatters.Wedescribethesemattersintheauditreportunlesslawsandregulationsprohibittheirpublicdisclosure,orinrarecases,ifitisreasonablyexpectedthatthenegativeconsequencesofcommunicatingamatterintheauditreportwouldoutweighthebenefitsinthepublicinterest,wedeterminethatthemattershouldnotbecommunicatedintheauditreport.

ShinewingCertifiedPublicAccountantsLLPChineseCertifiedPublicAccountant:

(ProjectPartner)ChineseCertifiedPublicAccountant:

Beijing,ChinaApril11,2025

II.FinancialStatementsCurrencyunitforthefinancialstatementsandthenotesthereto:RMB

1.ConsolidatedBalanceSheetPreparedbyKonkaGroupCo.,Ltd.

December31,2024

Unit:RMB

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Item

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Including:dataresources

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Deferredincome

Legalrepresentative:CAOShipingCFO:NIEYongHeadofthefinancialdepartment:PINGHeng

2.BalanceSheetoftheParentCompany

Unit:RMB

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Investmentsindebtobligations

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Including:Preferredshares

3.ConsolidatedIncomeStatement

Unit:RMB

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R&Dexpense