Suzhou Dongshan Precision Manufacturing Co., Ltd.

Annual Report 2024

April 25, 2025

Annual Report 2024

Section I Important Note, Table of Contents and DefinitionsThe Board of Directors, the Board of Supervisors, directors, supervisorsand senior executives of the Company hereby warrant that the informationcontained in this Annual Report is true, accurate and complete without anymisrepresentation, misleading statement or material omission, and agree toassume joint and several liabilities for this Annual Report.

YUAN Yonggang, Chairman of the Company, CFO WANG Xu andAccounting Supervisor ZHU Deguang hereby represent that the financialstatements contained in this Annual Report are true, accurate and complete.All directors of the Company attended the meeting of the Board of Directorsreviewing this Report.

Forward-looking statements such as those on future development plans inthis Report do not constitute substantial commitments by the Company to theinvestors. Investors and relevant persons shall be sufficiently mindful of risks,and understand the differences between plans, predictions and commitments.

The Company has fully disclosed the potential risks associated with theconcentration of customers, rapid upgrading and iteration of industrialtechnologies, fluctuations in exchange rates, etc. in this Report. Please see “XI.Prospects for Future Development of the Company” under “Section III.Management’s Discussion and Analysis”.

According to the profit distribution proposal approved by the Board ofDirectors, the Company will distribute a cash dividend of RMB 0.70 (inclusiveof tax) per 10 shares to all shareholders on the basis of 1,697,077,809 shares(excluding the treasury shares), and will not distribute any bonus shares ortransfer any capital reserve to the share capital.

Note:

This document is a translated version of the Chinese Annual Report 2024 ("2024 年年度报告"). In case of anydiscrepancies, the Annual Report 2024 published in the Chinese version shall prevail. The full Chinese AnnualReport 2024 is available at www.cninfo.com.cn.

Table of Contents

Section I Important Note, Table of Contents and Definitions ...... 2

Section II Company Profile and Financial Highlights ...... 8

Section III Management’s Discussion and Analysis ...... 12

Section IV Corporate Governance ...... 51

Section V Environmental and Social Responsibilities ...... 69

Section VI Significant Matters ...... 82

Section VII Changes in Shares and Shareholders ...... 97

Section VIII Preferred Shares ...... 104

Section IX Bonds ...... 104

Section X Financial Report ...... 105

List of ReferencesI. Financial statements signed and chopped by Mr. YUAN Yonggang, legal representative, Mr. WANG Xu, CFO, and Mr.ZHU Deguang, Accounting Supervisor of the Company;II. Originals of all documents of the Company publicly disclosed during the reporting period and related announcements;III. Original of the Annual Report 2024 stamped with the seal and signed by the legal representative of the Company; andIV. Place keeping such documents for inspection: Securities Department of the Company at Building 12#, Yunhe TownHeadquarters Industrial Park, No. 99 East Taihu Road, Wuzhong District, Suzhou.

Definitions

Section II Company Profile and Financial HighlightsI. Company Profile

II. Contact Person and Contact Information

III. Media for Information Disclosure and Place for Keeping Annual Report

IV. Changes in Registration Particulars

V. Other Related Information

Accounting firm engaged by the Company:

Sponsor engaged by the Company that performs the duties of ongoing supervision over the Company during the reporting period

□ Applicable ? N/A

Financial advisor engaged by the Company that performs the duties of ongoing supervision over the Company during the reportingperiod

□ Applicable ? N/A

VI. Key Accounting Data and Financial Indicators

Did the Company need to retrospectively adjust or restate any accounting data of prior years?

□ Yes ? No

Whether the lower of the net profit before and after the deduction of non-recurring gain or loss in the past three accounting years

has been negative and the most recent annual auditor’s report indicates that the Company’s ability to continue as a going concernis uncertain?

□ Yes ? No

Whether the lower of net profit before and after the deduction of non-recurring gain or loss is negative?

□ Yes ? No

VII. Differences in Accounting Data under the Chinese Accounting Standards for BusinessEnterprises (the “CASBEs”) and Overseas Accounting Standards

1. Differences in net profit and net assets disclosed in the financial report prepared under theInternational Financial Reporting Standards (IFRS) and the CASBEs

□ Applicable ? N/A

There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under theIFRS and the CASBEs.

2. Differences in net profit and net assets disclosed in the financial report prepared under overseasaccounting standards and the CASBEs

□ Applicable ? N/A

There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared underoverseas accounting standards and the CASBEs.VIII. Key Financial Indicators by Quarter

In RMB

Whether there’s any material difference between the financial metrics or aggregate amounts thereof set out above and thecorresponding financial metrics set out in any quarterly report or semi-annual report of the Company already disclosed?

□ Yes ? No

IX. Items and Amounts of Non-recurring Gains or Losses? Applicable □ N/A

In RMB

Other items of gain or loss within the meaning of non-recurring gain or loss:

□ Applicable ? N/A

We do not have any other item of gain or loss within the meaning of non-recurring gains or losses.Classification of any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on InformationDisclosure by Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss

□ Applicable ? N/A

We have not classified any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on InformationDisclosure by Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss.

Section III Management’s Discussion and AnalysisI. Situations of Our Industry During the Reporting PeriodWe are primarily engaged in the R&D, manufacturing and sale of electronic circuits, precision components, touch panelmodules and LED display devices, etc. According to the Industrial Classification for National Economic Activities (GB/T 4754-2017), our main business belongs to “electronic circuit manufacturing” under “manufacturing of electronic components andelectronic special materials” with the industry code C3982.

1. Electronic circuits

Our electronic circuit products are printed circuit board (PCB), which is a general substrate board provided with point-to-point connections and printed components according to a predefined design. As an electric connection among various electroniccomponents, it mainly functions for relay transmission. As substrates carrying electronic components and key connectors, themanufacturing quality of PCBs not only directly affects the reliability of electronic products, but also affects the overallcompetitiveness of system products, and therefore are referred to as the “mother of electronic system products”. To a certain extent,the development level of the PCB industry reflects the development speed and technical level of the electronic industry in acountry or region.At present, PCBs are in use for almost all electronic products, including consumer electronics, new energy vehicles,communication equipment, industrial control, medical and other industries, which leads to very strong market demands. The PCBindustry, as one of the most important segment in the global electronic component sector, can be classified into flexible printedcircuits (FPC), rigid circuit boards and rigid-flexible circuit boards. The specific classification and market prospects are as follows:

(1) Types and uses of PCBs

Thanks to the expansion of PCB applications and technology innovation, the PCB production process has been greatlyimproved since its release, with multiple derivative types coming out, mainly including:

(2) Prospects of the PCB market

① Overall market prospects of the PCB industry

PCBs are widely used in consumer electronics, new energy vehicles, communication equipment, industrial control, medicaland other fields throughout the world. Along with intensive research and development (R&D) and continuous technologyupgrading, PCB products are developing towards high density, small aperture and large capacity, and becoming lighter and thinner.Moreover, the rapid development of new energy vehicles, the Internet of Things, smart homes, wearable devices and other fields,together with the industrial innovation facilitated by AI technologies, has created a new round of development cycle for the PCBindustry. According to the statistics of Prismark, a research institution, in February 2025, the total output value of the global PCBindustry reached USD 73.565 billion in 2024, a year-on-year increase of 5.82%. In the future, given the accelerated penetration ofAI technologies in terminal devices, the rapid expansion of global AI end products will become an important driver for thedevelopment of the PCB industry. Prismark predicts that the total output value of the global PCB industry will reach USD 78.562billion and USD 94.661 billion in 2025 and 2029, respectively, with a compound annual growth rate of 4.8%.

Source: Prismark

② Prospects of the FPC market

A. The functional innovation of smartphones and the development of AI technologies create additional demands for FPC

Global market size and growth rate of PCBs in 2023–2029Market size/USD 100million

The innovative development of smartphones, the addition of functions and configurations such as OLED screens, facerecognition, multiple cameras, wireless charging, foldable screens, etc., and the iteration of technologies leads to additionalcomponents in smartphones and increasing capacity of batteries, which crowds the internal space of mobile phones and leads toincreasing demands for lightweight, thin, and small-size FPCs with high-intensity wires. In addition, high-end Android models arealso gradually using more FPCs in individual devices. In the future, the innovation of mobile phone functions and the greaterintegration will drive the rapid increase in the number of FPCs in a single device, and will raise more refined requirements on FPCproducts. During this process, top FPC manufacturers are actively making capital investment to rapidly improve their marketcompetitiveness in the hope of acquiring more market shares.In addition, on the background of the rapid development of AI technologies in recent years, more and more smartphonemanufacturers are releasing AI mobile phones. IDC predicts that there will be 827 million AI mobile phones in 2027, reflecting acompound annual growth rate of 100.7% from 2023 to 2027. AI mobile phones come with both additional computing power andadditional energy consumption. This change raises higher requirements on transmission, requiring high frequency, high speed andhigh density. Therefore, the FPC, thanks to its unique advantages in high-frequency, high-speed and high-density transmission, hasa favorable prospect for its application. A replacement cycle driven by AI mobile phones and the use of more FPCs (and value) inAI mobile phones will create a new growth opportunity with certain certainty for FPCs. Since the addition of AI functionsincreases the difficulty in both soft board designing and processing, which leads to more intense high-end production capabilities,top manufacturers will stand out with their competitiveness.B. The rapid development of innovative consumer electronics products led to more FPC demandsDuring the elimination of old models and release of new models on the consumer electronics market in recent years, theemerging markets of AR/VR, wearable devices, mobile phones with foldable screens, etc. experienced rapid growth, which led tofurther FPC demands on the market.

In the AR/VR field, the AR/VR industry has entered a period of rapid growth driven by the constant advancement of chips,display technologies and communication means and the development of meta universe. According to IDC, driven by innovation insoftware and hardware technologies, AI support, and the entry of terminal manufacturers, the overall AR/VR market will developrapidly and the AR/VR shipment in China will increase by 114.7% in 2025 compared with 2024. In the field of wearable devices,the products need to carry more components to achieve more functions, and need to be lightweight and integrated at the same time;this raises additional requirements for the wire density, which will increase the use of FPCs in individual devices. Meanwhile, inthe field of mobile phones with foldable screens, the application of dual screens, dual motherboards, multiple cameras and otherstructures will further increase the use of FPCs.

C. The rapid development of the new energy vehicle market led to the rapid growth of upstream FPC demands for newenergy vehicles

Thanks to its outstanding features of high wire density, light weight, thinness, being foldable and bendable, three-dimensional wiring, and high safety, in new energy vehicles, FPCs can be used in systems for automatic driving, entertainment,lighting, display, power, and battery management, and for devices such as sensors. On the background that mainstream automakersboth in China and abroad have increased their efforts for the strategic layout of new energy vehicles, the new energy vehicleindustry entered a high-speed growth period driven by the market, which leads to the rapid growth of upstream FPC demands fornew energy vehicles.

In 2024, the global and Chinese automotive sales were 95.31 million and 31.44 million, respectively, up by 2.6% and 4.5%year-on-year; the global and Chinese new energy vehicle production and sales were 18.24 million and 12.87 million, respectively,up by 24.5% and 35.5% year-on-year, continuing to maintain the rapid growth. This indicates the ratio of 19.1% and 40.9%respectively for new energy vehicle sales against the total automotive sales, respectively, indicating that China has become an

important force leading the transformation of the global automotive industry.

Source: China Association of Automobile Manufacturers, OICA, EVTank

Source: China Association of Automobile Manufacturers, EVTank

Chinese and global automotive sales and penetration of new energy vehiclesGlobal automotivesales/10,000 units

Chinese and global new energy vehicle sales

Chinese and global new energy vehicle salesGlobal new energy vehicle sales/10,000 units

Global new energy vehicle sales/10,000 units

Chinese new energy vehicle sales/10,000 units

Chinese new energy vehicle sales/10,000 units

D. The development of electric, intelligent, integrated, and lightweight new energy vehicles leads to increasing demands onon-board FPC marketFPC, given its advantages that are unavailable in other circuit board types, is more suitable for the development trend oflightweight, intelligent, and integrated electronic products in the downstream industries, and therefore is more suitable for newenergy vehicles.On the one hand, on the ground of development towards electric and intelligent automotive, the proportion of automotiveelectronics in the cost of the whole vehicle is gradually increasing, and according to the CCID Thinktank Electronic InformationResearch Institute, is expected to reach 50% in 2030. The improved electrification level leads to greater demands for electroniccomponents for various automotive devices, including automatic driving, entertainment system, lighting system, display system,power system, battery management system, and sensors, which correspondingly requires more wire carriers to connect theelectronic components. Therefore, the demand for vehicle FPC will further increase. According to iFixit, it is expected that FPCsused in a new energy vehicle will exceed 100 items, and up to 70 FPCs may be used for battery voltage monitoring.On the other hand, the power batteries of early new energy vehicles mainly used conventional wiring harnesses, which wererelatively bulky and complex in connection, and therefore could not meet the development trend of increasing electroniccomponents for new energy vehicles. Instead, the automotive FPC, thanks to its lightweight, simple structure, convenientconnection, and other advantages, has been widely used in new energy vehicles. By now, the FPC connection solution has becomea major solution in power batteries of new energy vehicles; it is developing towards integration as a cells contact system (CCS). ACCS consists of an FPC, plastic structural parts, copper and aluminum bars, etc. The FPC is connected to copper and aluminumbars and plastic structural parts to create an electrical connection and structural component for signal detection. It is highlycustomizable, simple in installation, can be directly placed on a battery package, and therefore is more suitable for automaticproduction of power batteries and leads to greater value of individual vehicles.According to CITIC Securities Research Institute, the global market size of power battery CCS will reach RMB 28.12billion in 2025, indicating a compound annual growth rate of 62.33% from 2021 to 2025. In addition, it is expected that thereplacement of conventional wiring harnesses with FPC in batteries will further extend to the field of energy storage, hence furtherincreasing the FPC market demands. According to the CITIC Securities Research Institute, the market size of energy storagebatteries CCS was RMB 180 million in 2021, and will reach RMB 4.43 billion in 2025, indicating a compound annual growth rateof 122.73% from 2021 to 2025.

2. Precision components

In recent years, on the background that China’s new energy vehicle industry experienced continuous growth at a high speedthanks to the green and low-carbon transformation, we have actively made arrangement of the precision component business forthe new energy vehicle industry, and enhanced both capital investment and the efforts for business development, which resulted inrapid growth of the revenue from relevant products. By now, our precision component products are mostly precision metalstructural products for new energy vehicles, including heat radiators, battery housing, white vehicle body, battery structural parts,and other auto parts for new energy vehicles. The rapid development of the new energy vehicle industry created new developmentopportunities for the relevant precision component market.

(1) Developing new energy vehicles is the only way for China to move from a big automotive consumer country to a strongautomotive manufacturing country, and the only way to respond to climate change and promote green development

At present, on the background of a new round of global scientific and technological revolution and industrial transformation,the integration of automotive with energy, transportation, information communication, and other relevant areas is accelerating,where the development trend is electric, connected, and intelligent vehicles in the industry. New energy vehicles integrate multiple

transformative technologies, including new energy, new materials, the Internet, big data, artificial intelligence etc., whichpromotes automotive to transform from a simple means of transportation to mobile smart terminals, energy storage units anddigital space, drives the transformation and upgrade of the energy, transportation, information and communication infrastructure,promotes the optimization of energy consumption structure, and improves the intelligent transportation system and urban operation.It is of great significance to building a clean and beautiful world and building a community for human beings as a whole. In recentyears, given the enhanced strategic planning and strengthened policy support by major automotive powers and the increased R&Dinvestment and comprehensive industry deployment by multinational automotive manufacturers, new energy vehicles havebecome a major direction for the transformation of the global automotive industry and a significant engine for driving thecontinuous growth of the world economy. To promote the development of new energy vehicles is the only way for China to movefrom a big automotive consumer country to a strong automotive country, and the only way to respond to climate change andpromote green development.

(2) The new energy vehicle industry is in a period of rapid growth with new development opportunities for the industrychainUnder the wave of automotive electrification around the world, mainstream automakers both in China and abroad haveincreased their efforts for the strategic layout of new energy vehicles, which promoted the new energy vehicle industry to enter ahigh-speed growth period driven by the market.The rapid growth of the new energy vehicle market created many growth opportunities for relevant companies in theindustry chain, such as precision metal structural parts. While the engine, gearbox and auxiliary parts of conventional vehicles arereplaced by the core components of new energy vehicles – the three major systems including power batteries, drive motors andelectronic control systems and auxiliary parts thereof, the market demand for related parts are increasing. In addition, given thedevelopment trend of electric and intelligent vehicles, the rapid evolution of core technologies in the automotive industry, and therise of new forces in automotive manufacturing, the supply chain pattern has also been reshaped – where automotive parts meetingthe lightweight, electric and intelligent demands of automotive parts come out one after the other, which created an opportunity forChina’s manufacturers capable of developing and producing relevant products to enter the industry chain of automotive parts anddevelop into a global leading manufacturer of automotive parts.

3. Touch panel modules

Our touch panel modules are widely used in laptop, tablet, smart watch, on-board display and other fields, which developalong with the development of the relevant downstream industries.

(1) Consumer electronics

With the development of smartphones and tablet computers, consumers have formed a habit of touch operation, all majorlaptop brands have launched laptops with touch panels. The emergence of convertible laptops, 2 in 1 laptops and other innovativeproducts will continuously increase the penetration of laptops with touch panels, and further drive the market demands for touchpanel module products. According to Wind, the global shipment of laptop computers in 2022, 2023, and 2024 was 186 million,166 million, and 202 million, respectively, while the global shipment of tablet computers was 150 million, 135 million, and 144million, indicating a rising trend of market demands.

(2) Automotive

On-board displays mainly include central control displays, dashboards, and emerging head-up displays (HUD), electronicrearview mirrors, passenger/rear seat displays, which are key interactive hardware for automotive intelligentization. With the

development of technologies, automotive, especially new energy vehicle manufacturers actively strive to improve their brandcompetencies through intelligentization, driving the rapid development of on-board display modules. According to the CITICSecurities Research Institute and Zhongshang Industry Research Institute, the global on-board display market size was about USD

9.5 billion in 2023, and is expected to achieve USD 13.840 billion in 2025, representing a compound annual growth rate of about

20.7% from 2023 to 2025.

4. LED display devices

Our LED display device products mainly include small-pitch LEDs, Mini LEDs and other products packaged in granuleform. These products are mainly used in, among others, indoor and outdoor small-pitch high-definition display screens. The year2024 witnessed both challenges and opportunities for the LED industry – on the one hand, the industry experienced intensifiedcompetition and reduced average prices, on the other hand, the market competition and technology advancement created newdevelopment opportunities for the market. The trend of LED development is to continuously reduce the size of and pitch betweenbeads – the pitch is greater than 2.5mm in conventional LEDs, smaller than 2.5mm for small-pitch LEDs, 0.3mm–1mm for MiniLEDs, and even smaller for Micro LEDs. Compared with Mini LEDs, the number of chips in a Micro LED will be nearly ahundred times of that in a Mini LED of the same area. Given that Mini/Micro LEDs are an important direction for thedevelopment of future display technologies, as the technology advances and the scale effects of the industry chain expand, thedemands for various new application areas will be released, so that Mini/Micro LEDs may become a future breaking point in theindustry. In the display backlight area, thanks to their better image rendering effects for LCDs, Mini LED backlight products aregradually replacing conventional LED light sources on the TV, monitor, and on-board display markets – Mini LED backlightproducts are penetrating rapidly on the market. Relying on the advantages of long service life, small size, high brightness, lowpower consumption, self-luminous, etc., Micro LEDs are known as the “ultimate display technology”. At present, it has achievedbreakthrough in AR/VR and large-screen direct display areas, and it is expected that the market application will accelerate giventhe advancement of technologies and reduction in costs.II. Situations of our Primary Business during the Reporting Period(I) During the reporting period, our primary business has not undergone any material change.We focus on the R&D and manufacturing of technologically advanced core components for the intelligently interconnectedworld, and the provision of comprehensive intelligent interconnection solutions to customers throughout the world. We areprimarily engaged in the R&D, manufacturing and sale of electronic circuits, precision components, touch panel modules and LEDdisplay devices, which are widely used in consumer electronics, new energy vehicles, communication equipment, industrialequipment, AI, medical appliances and other fields.

(II) During the reporting period, our main business model has not undergone any material change.We leverage our complete business chain to provide our customers with comprehensive, one-stop, industrial-leading services,continuously increase the depth of cooperation and adhesion with our customers, and maintain long-term, stable cooperation withpremium customers taking the lead in the global consumer electronics, new energy vehicle and communication equipmentindustries.

We manufacture main products based on market demands, and adopt the production model that determines productionaccording to sales, under which we develop production plans and deliver products taking into account the purchase orders placedby customers, the product quantities demanded by the customers under such purchase orders, as well as our production capacityand supply of raw materials.

(1) Our main products and their applications:

(2) Applications of our products in new energy vehicles:

Cold plates (automatic drive and centralcontrol)Heat dissipation modules

Heat dissipation modulesElectric drive and electronic controlcasings (all-in-one)

Electric drive and electronic controlcasings (all-in-one)Domain control casings

Domain control casingsCamera brackets and assemblies

Camera brackets and assembliesRigid PCBs and rigid-flex PCBs forcameras

Rigid PCBs and rigid-flex PCBs forcamerasCasings and rigid PCBs for laser radars andmillimeter wave radars

Casings and rigid PCBs for laser radars andmillimeter wave radarsRigid PCBs for advanced driving assistancesystem and central computing unit

Rigid PCBs for advanced driving assistancesystem and central computing unitRigid PCBs and rigid-flex PCBs forcentral control system/GPS

Rigid PCBs and rigid-flex PCBs forcentral control system/GPSRigid PCBs and rigid-flex PCBs forinformation & entertainmentsystems/Internet of Vehicles

Rigid PCBs and rigid-flex PCBs forinformation & entertainmentsystems/Internet of Vehicles

White body parts

White body partsSeat framework assemblies

Seat framework assembliesHUDs, dashboards, and central controldisplays

HUDs, dashboards, and central controldisplaysPassenger/rear seat entertainmentdisplays, and multi-connected displays

Passenger/rear seat entertainmentdisplays, and multi-connected displaysStreaming electronic rearview mirrors,and armrest displays

Streaming electronic rearview mirrors,and armrest displaysCell casings

Cell casingsBattery pack trays and assemblies

Battery pack trays and assembliesFPCs and CCS for battery packs

FPCs and CCS for battery packsCharging station framework and casingassemblies

Charging station framework and casingassembliesAutomotive electronics (BMS, MCU,ECU, etc.)

(3) Our situation in the industry:

In the field of electronic circuits, according to the research data published by Prismark, in terms of sales revenues, we areranked second in the field of FPC and third in the field of PCB in the world for several consecutive years. We have strongtechnology R&D, quality control, and smart factory management capabilities in the electronic circuit industry, and are able toprovide customers with high-quality products and services. Our major electronic circuit customers are well-known globalconsumer electronics and new energy vehicle manufacturers, so we have a good customer base, and strong competitive powers.

In the field of precision components, we are one of the largest specialized precision component suppliers, provide structuralcomponents for new energy vehicles, communication equipment and other fields, and mainly serve well-known global new energyvehicle and communication equipment manufacturers, so we have strong competitive advantages in the industry.

In the field of touch panel modules and LED display devices, we are one of the largest touch panel modules and LED displaydevice manufacturers in China. With the completion of our acquisition and integration of Suzhou JDI, we further expand our on-board display module business and strengthen our overall competence in the field of touch panel modules.

Thanks to the launch of the second racetrack (new energy), we have rapidly become one of the few vendors able to providethe new energy vehicle manufacturers with PCBs (including FPCs), on-board displays, functional and structural components, andother products and integrated solutions. At present, we have achieved good operating results in our new energy business in aspectsof the product strategy, technology accumulation, customer development etc. In the future, we will leverage our advantages in thecoverage of multiple industry chains and the provision of integrated solutions to further improve customer adhesion.III. Core Competencies of DSBJ

(I) Advantage in customers: Premium domestic and foreign customer base

After years of hard work, we have attracted top global customers in the industry and accumulated high-quality customerresources, which produced good demonstration effects and improved our reputation. This not only improves our ability to developnew customers and facilitate the acquisition of more support from customers in competition in the future, but also facilitates the in-depth of collaborative innovation between us and existing leading customers and the deployment in emerging fields. Our richcustomer base covers multiple industries, including consumer electronics, new energy vehicles and communication equipment,which can help us resist the quarterly and cyclical effects of operations in different industries and enhance our corecompetitiveness.

(II) Advantage in management: Advanced concepts, complete systems, and efficient execution

We advocate the corporate spirit of “openness, inclusion, pragmatism and enterprising”, stick to the management principle of“overall planning, the delegation of powers in business operation, support by the platform and centralized supervision”, give fullplay to the initiative and creativity of all organizations, and have built a scientific and efficient management system. Ourmanagement team has practical experience in the management of the advanced manufacturing industry, has wide global visions, isable to make accurate strategic judgments and decisions on the trends of industry and opportunities for development, and hasstrong cohesion and executive ability. Given our rich experience in cross-border mergers and acquisitions, restructuring andintegration, we can successfully advocate our corporate culture and business models to the acquired and restructured companieswith the concept of China’s manufacturing industry, so as to enhance agglomeration effects and comprehensive value of resourcesand help the target companies improve operating performance rapidly. By implementing institutional transformation under theconcept of people orientation, we take initiative to adapt to changes in environment, match with business demands, properly buildreserve forces, and accumulate talents for corporate development, hence building the core driving force for future development.

(III) Advantage in products: Wide range of products and integrated industry chainIn recent years, we have continuously improved our industrial and product mix through acquisitions and internal development,broken development bottlenecks, and introduced superior businesses to build up new growth drivers. At present, our productofferings cover three business segments, namely electronic circuit, photoelectric display and precision manufacturing. We are ableto provide consumer electronics, new energy customers, and other industry customers with a variety of basic and core componentsfor intelligent interconnection. In the field of electronic circuit, we have grown into a leading company in the industry. In terms ofthe new energy business, we have established our advantageous position in the industry with our on-board FPC, liquid coolingplate, battery housing and other products, which have become a strong engine for our future development. In addition, we alsoactively give full play to the synergy of various business segments in R&D, technology, supply chain, products and markets, andintegrate internal resources to actively provide customers with competitive products and solutions through forward-lookingresearch and development of the industry.

(IV) Advantage in technologies: Stick to the principle that technological innovation capability is the primary productionfactorWe attach great importance to technological innovation in our business development, and drive our development throughinnovation. Through participation in the preliminary development projects of the industry-leading customers, we keep in step withthe development of cutting-edging technologies, and have built a complete R&D system and efficient R&D mechanisms, and aglobal R&D team with outstanding professional level, rich industrial experience and strong innovation capabilities. Throughcontinuous funding for R&D of new materials, new technologies and new production processes, we have vigorously exploredfrontier production technologies for core components in the field of intelligent interconnection, and laid solid foundations forserving emerging businesses, such as AI, AR/VR, IoT, Mini LED and new energy vehicles. While improving product technologies,we attach great importance to the innovation and upgrading of production technologies, and have gained certain effects in theintegrated development of informatization and industrialization. By promoting the integrated development of industrialization andinformatization, we have vigorously implemented intelligent manufacturing and built smart factories.

(V) Advantage in scale: Promote development in reliance on advantage in scale and increase benefits based on synergisticeffect

Our customers are well-known domestic and international hi-tech companies that have high purchase quantities, strictrequirements for the delivery of products, and high requirements for the scale of production and production efficiency of suppliers.Through years of development and accumulation, we have grown into a supplier of core components for intelligentinterconnection with relatively strong overall capabilities in China. Our large scale of production can satisfy the purchase demandsof major downstream customers, creating a big advantage in scale. On the one hand, our scale advantage is helpful to reduce theunit product production costs thanks to our strong purchasing bargaining power; on the other hand, we have gradually built globalprocurement capabilities so that we have left competitors behind by integrating global resources, which further consolidates andimproves our position in the industry and enhances our core competitiveness.

(VI) Advantage in internationalization: Promote the establishment of a “dual circulation” development pattern

We closely follow the national development strategies, actively take part in global economic competitions, and continuouslyenhance the integration of high-quality resources of the industry. In recent years, we have established operating entities withdifferent functions in North America, Europe, Southeast Asia and other countries and regions. Under the main strategy of “two-wheel drive”, we focus on the two key fields of consumer electronics and new energy vehicles. In order to actively respond to thedemands of customers, we have accelerated the development of overseas production bases. In this year, the Thailand base hasstarted construction with topping out completed, and the bases in Mexico and the United States are running smoothly. Wecontinuously enhance our overseas talent force to further improve our international operating capabilities, which facilitates a new

layout of domestic and international development enhancing each other, so as to actively respond to the complex competitionenvironment.IV. Analysis of Primary business

1. Overview

Given the complex and changing global economic situations during the reporting period, we operated in a steady, proactiveand diligent manner to face challenges from the outside. Focusing on the “two-wheel drive” development strategy of consumerelectronics and new energy, we maintained stable growth of the electronic circuit business while actively seeking new growthopportunities from new energy and other emerging businesses. We paid great attention to the growth of our own capabilities andthe improvement of our core competitiveness to maintain continuous investment in research, production and sales. In 2024,wemoved steadily in private placement efforts, achieved obvious results in system governance and data governance, and performedwell in environmental, social and governance efforts. In 2024, we recorded an operating revenue of RMB 36,770,374,300, a year-on-year increase of 9.27%. Consequently, for 2024, we have achieved a net profit of RMB 1,085,641,800, reflecting a year-on-year decrease of 44.74%. The main reason is that, based on the principle of prudence, we optimized the LED business operationand management by integrating and optimizing certain inefficient equipment, which led to the loss of assets disposal in the amountof RMB 164 million and the provision for impairment losses of assets in the amount of RMB 595 million for the LED business.With the impact of the factors above eliminated, the net profit in 2024 decreased by about 5% year on year. Below is a summary ofour main business activities in the reporting period:

I. Continuous industry investment to consolidate the foundation for future development

Striving to grasp the opportunities of the era under the macro background of a new round of accelerated iteration of scienceand technologies, based on our rich experience in consumer electronics and new energy, we enhanced investment both in R&Dinnovation and in new production capabilities and new products, especially in forward-looking products and technologies intendedfor the future, which guaranteed the growth of our operating income despite the adverse environment. We actively embrace AI andenhance data governance to build digital infrastructure and achieve system integration, and explore new applications of AItechnologies in smart manufacturing and R&D innovation scenarios. Meanwhile, we strengthened the industry-university allianceto promote innovation and upgrade, and worked with scientific research institutions for active deployment of innovativetechnologies to promote in-depth integration between scientific and technological innovation and industrial innovation. Thecontinuous investments help to lay a solid ground for the future development of the Company.

II. The new energy business manifested its growth advantages and strong synergy with the core business

We closely followed the industry development trend of new energy vehicles and rapidly entered this new racetrack by meansof new investment, acquisition, merger, etc. At present, we have achieved good operating results in our new energy business inaspects of the product strategy, technology accumulation, customer development etc. During the reporting period, our new energybusiness achieved an overall revenue of RMB 8.65 billion, a year-on-year increase of 36.98%, accounting for 23.52% of ourrevenue. We have built an advantageous position in the industry of on-board FPC, liquid-cooling boards, battery housing, on-board display, and other products, which products were highly recognized by customers. By now, the new energy business hasbecome a strong engine for our future development, and given the strong synergy of the new energy business with variousbusiness segments in terms of products, customers, and production capacity, this business showed favorable resilience andcompetitiveness and will facilitate the high-quality and sustainable development of our businesses.

III. People-oriented institutional reform to build the core development driver

Keeping our development strategy and market demands in mind, in this year, we made great efforts to implement factoryrelocation and integration and the continuous institutional optimization, which greatly improved our operating efficiency.Meanwhile, we enhanced our efforts for talent building by combining recruitment with personnel growth. On the one hand, westarted the “Evergreen Plan” to attract outstanding graduating students and made greater efforts for recruiting medium- and high-profile talents; on the other hand, we actively deepened the efforts for building an internal talent growth system and conducted aseries of courses and activities focusing on the competence improvement of engineers and the cultivation of the engineer culture,so as to provide the talent guarantee for the high-quality development of the Company. Moreover, by advocating our culture andbuilding a matching system, we enhanced the efforts for implementing our core values of “openness, inclusion, pragmatism andenterprising”, hence enhancing the sense of belonging for our employees and cohesiveness of the team.

IV. Implemented a stable financial strategy to support the fulfillment of our strategic objectives

During the reporting period, we continued to implement an active and stable financial strategy. We paid close attention tochanges in the external environment, made adjustment as appropriate, worked for continuous improvement, and constantlyimproved the financial management and control procedures to further improve our capabilities against operating risks and supportthe fulfillment of our business development and strategic objectives. Adhering to the strategy of cash first, we continuouslyoptimized our capital structure, liquidity planning and budget system, and implemented a variety of prudent financial measures tomeet the capital needs for our business development and ensure liquidity security. Based on a series of management mechanismscovering the regulations, procedures, and operation guidelines of foreign exchange and commodities, we adhered to the principleof risk neutrality and made use of effective hedging instruments to hedge market fluctuation risks. We started efforts forintegration of business and finance to promote the synergy between business and financial efforts, improve quality and efficiency,and effectively achieve a closed-loop from strategy formulation to implementation.

2. Revenue and costs

(1) Components of operating revenue

In RMB

(2) Segments, products, regions or sales models representing more than 10% of operating revenue or profit? Applicable □ N/A

In RMB

Note:

1. The gross profit of LED display devices decreased by 14.27% year-on-year, primarily due to the overall demand of the industrythat is lower than expected, intensified competition, further decline in sales and product unit prices, and continuous decline incapacity utilization. Despite our continuous efforts to reduce costs and increase efficiency, the decline in the unit price of productswas greater than the decline in unit costs, which further reduced the gross profit in 2024.

2. The gross margin of precision components increased by 3.59% year-on-year, primarily due to the newly built Kunshan andYancheng production bases for expanding the business of new energy vehicle parts, which were put into production in the firsthalf of 2024, and major customers that achieved mass production, which improved the gross margin.

3. In 2024, our new energy business achieved an overall revenue of RMB 8.65 billion, a year-on-year increase of 36.98%,accounting for 23.52% of our revenue.

In case of any adjustment to the statistic scale for primary business data, the primary business data of the most recent reportingperiod as adjusted according to the statistic scale applied at the end of the reporting period:

□ Applicable ? N/A

(3) Whether the Company’s revenue from the sale of tangible goods is higher than the revenue from labor services?? Yes □ No

Analysis of changes in the relevant data over 30% compared to the previous year:

□ Applicable ? N/A

(4) Performance of material sales contracts and material purchase contracts by the Company as of the end of the reportingperiod

□ Applicable ? N/A

(5) Components of operating costs

In RMB

(6) Changes in the scope of consolidation during the reporting period

? Yes □ No

1. Subsidiaries newly included in the scope of consolidation

2. Subsidiaries removed from the scope of consolidation

(7) Material changes or adjustments in respect of business, products or services of the Company during the reportingperiod

□ Applicable ? N/A

(8) Major customers and suppliers

Major customers of the Company

Particulars of top 5 customers

Other information of major customers

□ Applicable ? N/A

Major suppliers of the Company

Particulars of top 5 suppliers

Other information of major suppliers

□ Applicable ? N/A

3. Expenses

In RMB

4. R&D expenses

? Applicable □ N/A

To solve the problem of short circuit of the touch screen underlong-term exposure to ultraviolet light, hence preventingfunctional failures

To simplify the process to greatly reduce labor costs, reduce therisk of scratches and folds, and improve production yield andprocess yield

Particulars of R&D personnel

Particulars of R&D expenses

Reasons and impacts of major changes in the composition of the Company’s R&D personnel

□ Applicable ? N/A

Reasons for the significant change in the ratio of total R&D expenses to operating revenue compared with the previous year

□ Applicable ? N/A

Reasons for the significant change in the capitalization rate of R&D expenses and explanation of the reasonableness thereof

□ Applicable ? N/A

5. Cash flows

In RMB

Explanation about the main factors affecting the significant year-on-year changes in relevant data? Applicable □ N/A

1. The net cash flows from financing activities decreased by 443.96% year-on-year, primarily due to the decrease in both financinginflow and outflow given the overall stability of free cash flow during the reporting period, the repayment of certain short-termdue debts, the continuous optimization of debt structure, and the overall extension of maturity for the debts, and the high amountcash dividends to shareholders in 2024.

2. The net increase in cash and cash equivalents decreased by 260.51% year-on-year, primarily due to certain additional financingfor acquisition projects in the previous year, which resulted in the net inflow from financing activities that was obviously greaterthan the current reporting period. In addition, the net cash flow from operating activities of the Company during the reportingperiod was slightly lower than the same period last year.Reasons for the significant difference between the net cash flow from operating activities of the Company during the reportingperiod and the net profit of the year

□ Applicable ? N/A

V. Analysis of Non-primary Business

□ Applicable ? N/A

VI. Analysis of Assets and Liabilities

1. Material changes in the components of assets

In RMB

Analysis of the high proportion of overseas assets? Applicable □ N/A

2. Assets and liabilities measured at fair value

? Applicable □ N/A

In RMB

Is there a significant change in the measurement attributes for the Company’s main assets during the reporting period?

□ Yes ? No

3. Encumbrances on assets as of the end of the reporting period

Restriction on assets at the end of the reporting period

VII. Analysis of Investments

1. Overview

? Applicable □ N/A

2. Major equity investments acquired during the reporting period

□ Applicable ? N/A

3. Major non-equity investments that have not yet been completed in the current period

□ Applicable ? N/A

4. Investment in financial assets

(1) Investment in securities

□ Applicable ? N/A

We have not invested in any securities during the reporting period.

(2) Investment in derivatives

? Applicable □ N/A

1) Investment in derivatives for hedging purposes during the reporting period? Applicable □ N/A

In RMB 0’000

2) Investment in derivatives for speculative purposes during the reporting period

□ Applicable ? N/A

The Company did not have any derivative investment for speculative purposes during the reporting period.

5. Use of offering proceeds

? Applicable □ N/A

(1) Summary of use of offering proceeds

? Applicable □ N/A

In RMB 0’000

(2) Committed investment projects using offering proceeds

? Applicable □ N/A

In RMB 0’000

(3) Changes in the committed investment projects using offering proceeds

? Applicable □ N/A

In RMB 0’000

VIII. Sale of Material Assets and Equities

1. Sale of material assets

□ Applicable ? N/A

No material asset has been sold during the reporting period.

2. Sale of material equities

□ Applicable ? N/A

IX. Analysis of Major Subsidiaries and Associates? Applicable □ N/AMajor subsidiaries and associates representing more than 10% of the net profit of the Company

In RMB

respect ofelectroniccircuits;investmentholding

Subsidiaries acquired or disposed of during the reporting period? Applicable □ N/A

X. Structured Entities Controlled by the Company

□ Applicable ? N/A

XI. Prospects for Future Development of the Company(I) Our development strategyWe focus on high-quality development, enhance systemic thinking, make top-level designs, strictly defend the bottom lineof operation; actively embrace AI, focus on the two key fields of consumer electronics and new energy vehicles; enhance businessdeployment, increase R&D funding, enable industrial development, fully exploit internal resources and potentialities; implementcomprehensive budget management, focus on key products, serve key customers, insist on prudent operation, maintain a healthyfinancial position; optimize the organization structure, enhance the training of personnel; actively implement the integration ofinformatization and industrialization, and drive the transition from “manufacturing” to “intelligent manufacturing”.

(II) 2026 business plan

(1) Strengthen research of the industry and concentrate resources and advantages to actively promote the research,development and investment of forward-looking products;

(2) Adhere to the business strategy of “increasing revenues, income and ROE”;

(3) Actively embrace AI to accelerate expansion and improve operating efficiency;

(4) Maintain a healthy financial position, and continuously optimize the capital structure;

(5) Enhance system governance and data governance, and promote high-quality development of the Company;

(6) Continuously optimize the organization structure and personnel training; and

(7) Continue to enhance ESG value and sustainable development capabilities, and explore topics of green, low-carbon andsustainable development.

(III) Main risk factors

1. Risk of concentration of customers

We have good customer resources. Our major customers are well-known domestic and international companies in therelevant industries that are of sound credit and have established stable cooperation relationships with us. However, our top 5customers constitute a large proportion of our total sales revenue, which may further increase in the future. Any material adversechange in the business situation of such major customers could have an adverse effect on our business.We will give full play to our advantages, make active deployment in the new energy and other emerging industries andstrive to develop new customers, in order to mitigate the adverse effect of the relative concentration of customers on us.

2. Risks brought by rapid technology upgrading of the industry

Our business covers electronic circuit, photoelectric display, precision manufacturing and other technology-intensiveindustries, and our products are widely applied in consumer electronics, new energy vehicles, communication equipment,industrial equipment, AI, medical appliances and other fields, all of which are characterized by rapid technology upgrading. If ourR&D and manufacturing capabilities fail to keep pace with the rapid technology upgrading of downstream products, our productsand technologies may become obsolete.

We will follow up on the new technologies and new processes of the industry from the strategic perspective, and strive tokeep our technologies and processes at the advanced level through continuous and effective R&D funding.

3. Risk of changes in the global trade environment

Our major customers include some well-known international companies, and our export sales have grown steadily for years.Though China has established good economic and trade cooperation relationships with major countries in the world, theincreasingly fierce regional frictions in recent years may cause uncertainties in the applicable trade policies, which could affect ourinternational trade.

We will follow up on the development of international trade frictions, enhance communication with our customers, andcontinue to enhance our competencies and customer adhesion.

4. Risk of market exploitation

We are a strong R&D and manufacturing enterprise in the fields of electronic circuit, photoelectric display and precisionmanufacturing. Due to our stable product quality and efficient customer services, we have remarkable competencies, and are ableto provide the downstream enterprises with “one-stop” products and services, and satisfy their demands for systemicmanufacturing solutions. However, our downstream industries are characterized by rapid upgrading and rapid changes in thepreferences of consumers, among others. If our major customers are at a disadvantage in the market, or we are unable to satisfy thedemands of customers in a timely manner or fail to acquire new customers, the sales and margin rate of our products may decrease.

We will continue to increase R&D funding, optimize our product mix and process structure, enhance our competencies, andactively cope with market competition.

5. Environmental risk

In our production, the electroplating, etching and other processes produce waste water, waste gases and solid wastes, andtherefore are subject to strict requirements for environmental protection. We cannot exclude the possibility that environmentalincidents may happen during our production due to negligence in management, force majeure or otherwise. If we meet with anyenvironmental incident, cause pollution to the environment or violate the applicable environmental protection laws and regulations,our reputation and operations could be adversely affected. Along with the vigorous development of a green and low-carboncircular economic development system and improvement of people’s living standard in China, and increasingly enhancedawareness of environmental protection of people, the country attaches increasingly great importance to environmental protection.

If the country puts forward stricter environmental protection requirements, we may need to increase the funding for environmentalprotection, which would increase our environmental protection costs and in turn affect our results.

We have set the building of an environment-friendly enterprise as a key goal of our sustainable development strategy,attached great importance to and increased the funding for environmental protection in our production and operation, activelyresponded to the requirements of the latest environmental protection laws and regulations, enhanced environmental protectiontraining and employees’ awareness of environmental protection, taken control measures at source, established and improved theenvironmental management system, and implemented the requirements related to environmental safety in all of our key businessactivities, to reduce the environmental risks.

6. Foreign exchange risk

Export sales constitute a large proportion of our total sales revenue. Because our day-to-day operation involves transactionsin USD and other foreign currencies, and our consolidated accounts are presented in RMB, the changes in the exchange ratebetween RMB and USD may cause foreign exchange risk to our future operations.

We will keep a close watch on the changes in the relevant foreign exchange rates, strive to control the exposure to foreignexchange risk at a reasonable level, and hedge or otherwise reduce exposure to such risk.

XII. Investigation, Research, Communication, Interview and Other Activities during theReporting Period

? Applicable □ N/A

XIII. Formulation and Implementation of Market Value Management System andValuation Improvement PlanWhether the Company has formulated a market value management system?

□ Yes ? No

Whether the Company has disclosed a valuation improvement plan?

□ Yes ? No

XIV. Implementation of the Action Plan to Improve the Quality and ReturnsWhether the Company has disclosed its action plan announcement to improve the quality and returns?? Yes □ NoWe conscientiously implemented the guiding idea proposed by the meeting of the Politburo of the Chinese Communist Party “toactivate the capital market and boost investor confidence” and by the routine meeting of the State Council “to vigorously improvethe quality and investment value of listed companies, take more powerful and effective measures, and focus on stabilizing themarket and confidence”, and formulated an action plan to improve the quality and returns in consideration of our developmentstrategy, operating conditions and financial conditions, so as to safeguard the interests of all our shareholders, enhance investorconfidence, and promote the long-term healthy and sustainable development of the Company. For details, refer to theAnnouncement on the Action Plan to Improve the Quality and Returns (Announcement No.: 2024-011) we disclosed onwww.cninfo.com.cn on March 1, 2024.We actively respond to the special action of “improving the quality and returns” by strengthening business management,improving core competitiveness, profitability and comprehensive risk management capabilities, promoting sustainabledevelopment, and giving back to investors. Meanwhile, we adhere to the idea of investor orientation and enhance the sense of gainfor investors by outstanding performance, regulated governance, high-quality information disclosure and positive returns, hencemaking our contribution to stabilizing the market and boosting confidence.

Section IV Corporate Governance

I. Overview of Corporate GovernanceDuring the reporting period, we have continuously improved our corporate governance structure, operated in compliance withthe regulations, and enhanced information disclosure in strict accordance with the Company Law of the People’s Republic ofChina, the Securities Law of the People’s Republic of China, the Code of Corporate Governance for Listed Companies, the RulesGoverning the Listing of Shares on the Shenzhen Stock Exchange and other applicable laws and regulations. We have established acorporate governance structure that sets forth well-defined powers and responsibilities, and mutual restraint mechanisms, andoperates in a coordinated manner. Our general meeting, Board of Directors and Board of Supervisors have duly performed theirduties and exercised their functions, operated in compliance with the regulations, and seriously protected the legitimate rights andinterests of the investors and the Company.Is there any significant difference between the actual circumstance of corporate governance of the Company and the applicablelaws, administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies?

□ Yes ? No

There isn’t any significant difference between the actual circumstance of our corporate governance and the applicable laws,administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies.II. The Company’s Independence of its Controlling Shareholders and Actual Controllers inAssets, Personnel, Finance, Organization and BusinessWe are independent of our controlling shareholders in business, personnel, assets, organization and finance, and have ourown independent and complete business, and are independent in management.

1. Independence in business operation: We are independent of our shareholders and other affiliates in business operation,have complete production, R&D, management, procurement and sales systems, and are able to do business independently on themarket.

2. Independence in personnel: We have a sound corporate governance structure in place, and our directors, supervisors andsenior executives have been appointed in strict accordance with the Company Law of the People’s Republic of China and the AOA,and do not hold any concurrent post in contravention of the applicable laws and regulations. We are independent of ourshareholders in personnel and payroll management, and all of our employees receive their salaries from us. We have developedstringent employment, performance appraisal, promotion and other labor management policies, and entered into a Labor Contractwith each employee. We are fully independent in labor, personnel and payroll management.

3. Independence in assets: We have a clear property right relationship with our controlling shareholders, own or have the rightto use the premises and land necessary for our production and operating activities, and have complete auxiliary production systemsand supporting facilities. None of our controlling shareholders or the business entities controlled by them has occupied any of ourfunds, assets or other resources.

4. Independence in organization: We have established a sound corporate governance structure in accordance with therequirements of the Company Law of the People’s Republic of China and the AOA, and our general meeting, Board of Directorsand Board of Supervisors exercise their respective functions in strict accordance with applicable laws and regulations. We have setup internal bodies suitable for our development, defined their respective functions, and developed corresponding internalmanagement and control systems. All of our functional departments operate independently, free from any interference by any

shareholders, other departments, entities or individuals, and do not engage in any mixed operation or share office space with otherdepartments.

5. Independence in finance: We have an independent finance department, and full-time financial personnel, established asound accounting system and financial management and decision-making policies, and implemented strict financial supervisionand administration. We open independent bank accounts, and control our funds and assets independently, free from anyinterference by our shareholders. We are an independent taxpayer, pay taxes independently according to law, and do not mix ourtax payment with any shareholder.

III. Horizontal Competition

□ Applicable ? N/A

IV. Particulars of Annual General Meeting and Extraordinary General Meetings Heldduring the Reporting Period

1. General meetings held during the reporting period

2. Extraordinary general meetings requested by preferred shareholders whose voting rights had beenrestituted

□ Applicable ? N/A

V. Directors, Supervisors and Senior Executives

1. Particulars

Whether any director or supervisor retired or any senior executive was removed during the reporting period?

□ Yes ? No

Changes in directors, supervisors and senior executives

□ Applicable ? N/A

2. Profile

Professional background, main work experience and main duties of our current directors, supervisors and senior executives:

(1) Members of the Board of Directors

Mr. YUAN Yonggang: PRC citizen, having permanent residency in Singapore, bachelor’s degree, one of the controllingshareholders and actual controllers of the Company. He has served as the Director of the Marketing Department, Deputy Managerand Vice Chairman of the Company since October 1998, and is now Chairman of the Company, Vice Chairman of the JiangsuGeneral Chamber of Commerce, Vice Chairman of the Suzhou Association of Industry and Commerce, member of the 17

th

People’s Congress of Suzhou, and Chairman of Suzhou Chamber of International Cooperation for Private Economy.Mr. YUAN Yongfeng: PRC citizen, bachelor’s degree, one of the controlling shareholders and actual controllers of the Company.He has served as the Director of the Manufacturing Department and Supervisor of the Company since October 1998, and is nowdirector and General Manager of the Company, member of the 5

th

CPPCC Wuzhong District Committee of Suzhou, ViceChairman of the Suzhou Wuzhong District Association of Industry and Commerce, and Chairman of Suzhou Dongshan Chamberof Commerce.Mr. ZHAO Xiutian: US citizen, postgraduate. He has served in Feichuang, Hughes Network Systems, MCE, Celiant and Andrew,and is now Vice Chairman of the Company.Mr. SHAN Jianbin: PRC citizen, bachelor’s degree. He has served in Mektec Manufacturing Corporation (Zhuhai) Ltd., and isnow director and Executive President of the Company, and Vice Chairman of the Executive Council and Director of IndustrialCollaborative Innovation Professional Committee of the China Printed Circuit Association.Ms. MAO Xiaoyan: PRC citizen, postgraduate, and economist. She has served in Suzhou Huacheng Group Company Limited andJiangsu Wuzhong Pharmaceutical Development Co., Ltd., and is now director, Deputy General Manager and Board Secretary ofthe Company.Mr. WANG Xu: PRC citizen, postgraduate, certified public accountant (non-practitioner). He has served in Kunshan FengruiUnited Accounting Firm and Suzhou Good-ark Electronics Co., Ltd., and is now director, Deputy General Manager and CFO ofthe Company, part-time tutor for postgraduates in accounting of the Dongwu Business School of Soochow University, part-timetutor for postgraduates in accounting and audit of the School of Business of Nanjing University of Information Science &Technology, and part-time tutor for postgraduates in accounting of the School of Business of Jiangsu Normal University.Mr. WANG Zhangzhong: PRC citizen, postgraduate. He has served in the School of Materials Science and Engineering ofNanjing Institute of Technology as a teacher, office director, secretary of the Party committee, chief of the division of science andtechnology, dean, professor, and Director of China Heat Treatment Association since August 1983, and is now independentdirector of the Company, Director Member of the Special Metallurgy and Metal Forming Committee of Jiangsu Society for Metals,professor of the Institute of New Material Technology of Nanjing Institute of Technology, independent director of ZhangjiagangHaiguo New Energy Equipment Co., Ltd., Chairman of the Executive Council of the Industrial Furnace Branch of JiangsuMechanical Engineering Society, Vice Chairman of the New Metal Materials Branch of Jiangsu Metallurgical IndustryAssociation, and independent director of Suzhou Huike Technology Co., Ltd.Mr. SONG Liguo: Hong Kong citizen, PhD candidate. He has served in CITIC Securities Tianjin Business Department, theTianjin Equity Exchange, Anhui Antai Law Firm, China Baoan Group, Hong Kong Heng Feng Group International InvestmentLimited, CHAN & Co., ARTHUR K.H. (Hong Kong), Denton Wilde Sapte (Hong Kong) and Jones Day International Law Firm(Hong Kong), and is now independent director of the Company, special advisor of Georgiou Partnership Law Firm, visitingassociate professor of the Law School of Anhui University, and arbitrator of the China International Economic and TradeArbitration Commission, the Arbitration Center Across the Straits, and the Xiamen Arbitration Commission.Mr. GAO Yongru: PRC citizen, PhD candidate, senior accountant. He has served in Panda Electronic Group, Jiangsu JinlingAccounting Firm, the Nanjing Municipal Bureau of Labor, Huatai Securities Co., Ltd., Nanjing Transportation Holding Co., Ltd.,Yincheng Properties Group Co., Ltd., Jinling Resort Nanjing Co., Ltd., Shenwu Energy Saving Co., Ltd., Hefei Genius AdvancedMaterial Co., Ltd., Guangzhou Haozhi Industrial Co., Ltd., Jiangsu Limin Paper Packaging Co., Ltd., Nanjing Borun Intelligent

Technology Co., Ltd., Nanjing Borun Brain Intelligent Technology Co., Ltd., Jiangsu Xinruide System Integration EngineeringCo., Ltd. and Yongtuo Certified Public Accountants LLP Jiangsu Office, and is now independent director of the Company,independent director of Jiangsu Sunlant Bioengineering Co., Ltd., independent director of Nanjing CompTech Composites Corp.,independent director of Jiangsu Binhai Rural Commercial Bank Co., Ltd., managing director of Shengkun Business Service(Nanjing) Co., Ltd., part-time tutor for postgraduates in accounting of the Nanjing University of Information Science &Technology, and part-time tutor for postgraduates in accounting of the Shenyang University.

(2) Members of the Board of Supervisors

Mr. MA Liqiang: PRC citizen, bachelor’s degree. He has served in Suzhou Dayin Electronic Telecommunications Equipment Co.,Ltd., Suzhou Jinhuasheng Paper Co., Ltd. and Dongshan Optronics (Suzhou) Co., Ltd., and is now Chairman of the Board ofSupervisors of the Company, and COO, President of China Region, and President of Touch & Display Business Unit of Multek.Mr. JI Yachun: PRC citizen, postgraduate. He has served in the Central Committee of the Communist Youth League of China, andis now employee representative supervisor and Public Relations President (Yancheng) of the Company, Secretary of the PartyCommittee and Chairman of the Management Committee of the Yancheng Dongshan Precision Industrial Park, and member of the

thPeople’s Congress of Jiangsu Province.Mr. HUANG Yongxin: PRC citizen, bachelor’s degree. He has served in Everlight Electronics (China) Co., Ltd., and is nowemployee representative supervisor of the Company and President of the Precision Manufacturing Business Unit.

(3) Senior executives

The resume of Mr. YUAN Yongfeng (General Manager), Mr. SHAN Jianbin (Executive President), Ms. MAO Xiaoyan (DeputyGeneral Manager and Board Secretary) and Mr. WANG Xu (Deputy General Manager and CFO) are set forth in “Members ofBoard of Directors” above.Positions held in shareholders

□ Applicable ? N/A

Positions held in other entities? Applicable □ N/A

Punishments imposed by the securities regulatory authorities in the past three years on the directors, supervisors and seniorexecutives of the Company currently in office or leaving office during the reporting period

□ Applicable ? N/A

3. Remunerations of directors, supervisors and senior executives

Decision-making process, criteria for determination and actual amount in respect of remunerations of directors, supervisors andsenior executivesThe remunerations of our directors, supervisors and senior executives are determined in accordance with the provisions of theAOA as follows: the amount and terms of payment of remuneration of the members of the Board of Directors and the Board ofSupervisors are determined by the general meeting; the amount and terms of payment of remuneration of the senior executives aredetermined by the Board of Directors; the remunerations of the directors, supervisors and senior executives are determined basedon their respective job responsibilities, and achievement of annual performance indicators for those holding key operationalpositions concurrently, or fulfillment of job responsibilities and annual tasks for those holding key managerial positionsconcurrently. The remunerations paid by us to our directors, supervisors and senior executives conform to our remunerationpolicies and the fulfillment of their job responsibilities.Remunerations of directors, supervisors and senior executives paid in the current period

In RMB 0’000

Other information

□ Applicable ? N/A

VI. Performance of Duties by the Directors during the Reporting Period

1. Meetings of the Board of Directors held during the reporting period

2. Attendance of the directors at meetings of the Board of Directors and general meetings

Reason for absence from two consecutive board meetings

N/A

3. Objections raised by the directors regarding matters of the Company

Whether any director has raised any objection regarding matters of the Company?

□ Yes ? No

No director has raised any objection regarding matters of the Company during the reporting period.

4. Other information regarding the performance of duties by the directors

Whether the suggestions put forward by the directors have been adopted by the Company?? Yes □ NoExplanation of the adoption or rejection by the Company of the suggestions put forward by the directorsNo director of the Company has raised any objection regarding relevant matters of the Company during thereporting period.VII. Activities of the Committees of the Board of Directors during the Reporting Period

VIII. Activities of the Board of Supervisors

Whether the Board of Supervisors has identified any risk involving the Company in its supervisory activities during the reportingperiod?

□ Yes ? No

The Board of Supervisors has not raised any objection to the supervisory matters during the reporting period.

IX. Employees

1. Number, structure of profession and education of employees

2. Compensation policies

We advocate the creation of values, and give priority to high-performance teams and individuals in compensation and incentives.We have sound compensation and incentive policies in place, which are designed to attract and retain outstanding technical andmanagement talents with competitive compensation, and give long-acting incentives to our employees through the combination ofshort-, medium- and long-term incentives taking into account our overall operating results and the employees’ performance, inorder to enhance our core competencies.

3. Training programs

We actively recruit, seek and train talents, and make efforts to build an efficient and comprehensive talent training system, tocontinuously improve our employees’ comprehensive capabilities; conduct capability improvement and training programs invarious forms focusing on cadre fostering, management of engineers and other professional personnel and building of talent pools,to improve our employees’ professional quality, skills and management capabilities; actively provide our employees with learningand growth opportunities, encourage them to strive for progress, and build talent pools, to promote the achievement of ourstrategic objectives.

4. Outsourced workers

□ Applicable ? N/A

X. Profit Distribution and Transfer of Capital Reserve to the Share Capital

Establishment, implementation or adjustment of profit distribution policy, in particular, cash dividend policy, during the reportingperiod? Applicable □ N/A

We attach great importance to the return to our shareholders. In order to maintain a continuous and stable profit distribution policy,pursuant to the Regulatory Guidance for Listed Companies No. 3 – Distribution of Cash Dividends by the Listed Companies, theAOA and other relevant provisions, we have developed the Three-year Plan for Return to Shareholders (2024-2026), which setsforth the specific principles and plans for return to shareholders. During the reporting period, we developed the 2024 ProfitDistribution Proposal taking into account our actual business situations and development plans, and the needs to ensure normalbusiness operation and long-term development.

Whether the Company has made a profit in the current period and the parent has profits available for distribution to theshareholders, but the Company does not propose to distribute cash dividends?

□ Applicable ? N/A

Particulars of profit distribution and transfer of capital reserve to the share capital for the reporting period? Applicable □ N/A

tax) per 10 shares on the basis of the total share capital of 1,697,077,809 shares (excluding treasury shares), or RMB118,795,446.63 in total, without distribution of any bonus shares or transfer of any capital reserve to the share capital. (Note: Asof the date of this Report, we had a total share capital of 1,705,913,710 shares, of which, 8,835,901 shares held in the dedicatedsecurities account for repurchase would not participate in the profit distribution.)

XI. Share Incentive Plans, Employee Stock Ownership Plans or Other Employee Incentives? Applicable □ N/A

1. Share incentives

N/AShare incentives granted to directors and senior executives

□ Applicable ? N/A

Performance appraisal and incentives in respect of senior executivesN/A

2. Employee stock ownership plans (ESOPs)

? Applicable □ N/AEffective ESOPs in the current period

Note: As of the end of the reporting period, the Company’s shares held under the 2022 ESOP for key officers and technicalpersonnel and the 2022 second ESOP have been sold out through call auction trading. For details, refer to the relevantannouncement dated November 29, 2024 on www.cninfo.com.cn (Announcement No.: 2024-093).

3. Other employee incentive measures

□ Applicable ? N/A

XII. Establishment and Implementation of Internal Controls during the Reporting Period

1. Establishment and implementation of internal controls

Pursuant to the requirements of the Company Law of the People’s Republic of China, the Basic Internal Control Standards forEnterprises and the relevant guidelines, we have established a sound internal control system according to our actual situations andneeds of management. During the reporting period, we have continuously improved the internal control system, carried outinternal control self-assessment, and identified deficiencies in internal control, risks and hazards, to further improve theeffectiveness of our internal controls.

According to the assessment of material weakness in internal control over financial reporting, as of the reference date for theassessment report on internal controls, there’s no material weakness in our internal control over financial reporting. We havemaintained effective internal control over financial reporting in all material respects pursuant to the requirements of the internalcontrol standard systems for enterprises and other relevant provisions. According to the assessment of material weakness ininternal control over non-financial reporting, as of the reference date for the assessment report on internal controls, there’s nomaterial weakness in our internal control over non-financial reporting.

2. Material weaknesses in internal controls identified during the reporting period

□ Yes ? No

XIII. Management and Control of Subsidiaries during the Reporting PeriodXIV. Assessment Report on Internal Controls or Auditor’s Report on Internal Controls

1. Assessment report on internal controls

2. Auditor’s report on internal controls

? Applicable □ N/A

Whether the accounting firm issued a modified auditor’s report on internal controls?

□ Yes ? No

Whether the auditor’s report on internal controls issued by the accounting firm is consistent with the opinion expressed in the self-assessment report of the Board of Directors?? Yes □ NoXV. Rectification of Non-compliance Found in the Special Self-examination of CorporateGovernance of the Listed CompanyN/A

Section V Environmental and Social Responsibilities

I. Material Environmental IssuesWhether the Listed Company and its subsidiaries have been identified as major polluters by the environmental protectionauthorities?? Yes □ NoPolicies and industrial standards related to environmental protection

During the reporting period, we and our subsidiaries identified as major polluters have strictly complied with theEnvironmental Protection Law of the People’s Republic of China, the Law of the People’s Republic of China on Prevention andControl of Atmospheric Pollution, the Law of the People’s Republic of China on Prevention and Control of Water Pollution, theLaw of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Wastes, the Law of thePeople’s Republic of China on Prevention and Control of Noise Pollution, the Law of the People’s Republic of China onPrevention and Control of Soil Pollution, the Law of the People’s Republic of China on Environmental Impact Assessment, theWork Safety Law of the People’s Republic of China, the Fire Protection Law of the People’s Republic of China and other laws andregulations related to environmental protection, and implemented the Emission Standard for Odor Pollutants (GB14554-93), theIntegrated Emission Standard for Air Pollutants (DB32/4041-2021), the Emission Standard of Air Pollutants for Boilers(GB13271-2014), the Emission Standard of Air Pollutants for Industrial Furnaces and Kilns (DB32/3728-2020), the Standard forPollution Control on Hazardous Waste Storage (GB18597-2001), the Emission Standard for Pollutants from Electroplating(GB21900-2008), the Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008), the Standard for FugitiveEmission of Volatile Organic Compounds (GB37822-2019), the Discharge Standard of Water Pollutants for Electronic Industry(GB39731-2020), the Integrated Wastewater Discharge Standard (GB8978-1996), the Wastewater Quality Standards forDischarge to Municipal Sewers (GB/T31962-2015), the Standard for Pollution Control on the Non-hazardous Industrial SolidWaste Storage and Landfill (GB18599-2020) and other national and industrial standards related to environmental protection.

Environmental Permits

Industrial discharge standards and the pollutants discharged in our production and operating activities

Treatment of pollutantsWith respect to the wastewater, waste gas, solid wastes and other wastes generated during our production, we have a complete setof pollution treatment facilities in place, which are operated and maintained by ourselves or the service providers engaged by us.We designate special personnel to monitor the operation of equipment and discharge of pollutants, and maintain and repair theequipment and facilities on a regular basis, to ensure the discharge and disposal of all kinds of pollutants in accordance with theapplicable standards and regulations, and minimize the environmental impact of our production. During the reporting period, ourdischarge of pollutants complied with the applicable standards and regulations.Environmental self-monitoring plansWe have developed environmental self-monitoring plans in accordance with the applicable laws and regulations, and installedautomatic monitoring equipment or engaged qualified third-party inspection institutions to monitor the wastewater, waste gas,noise and other pollutants on a regular basis. During the reporting period, the results of our environmental monitoring compliedwith the applicable standards and regulations.Environmental emergency response plansWe have developed environmental emergency response plans in accordance with the National Environmental EmergencyResponse Plan, filed the same with the local environmental protection authority, and carried out exercises on a regular basis, toimprove our capability to respond to environmental emergencies, and reduce harm to the environment and impact on the society.Expenditures on environmental governance and protection, and payment of environmental protection taxWe have made continuous investments in environmental governance and protection, regularly maintained the waste gas,wastewater and solid waste treatment and other environmental protection facilities to ensure their effective operation, anddischarge of all kinds of pollutants in conformity with the applicable standards, and promote our sustainable development.Measures taken for reducing carbon emission during the reporting period and their effect? Applicable □ N/AFor details, refer to the 2024 ESG Report of DSBJ disclosed on www.cninfo.com.cn.Environment-related administrative penalties the Company has been subject to during the reporting period

N/AOther environmental information that should be disclosedN/AOther environmental informationRefer to our Social Responsibility Report 2024 disclosed on www.cninfo.com.cn.II. Social ResponsibilityFor details, refer to the 2024 ESG Report of DSBJ disclosed on www.cninfo.com.cn.

III. Consolidating and Expanding the Result of Poverty Alleviation and Rural RevitalizationFor details, refer to the 2024 ESG Report of DSBJ disclosed on www.cninfo.com.cn.

Section VI Significant Matters

I. Fulfillment of Covenants

1. Covenants made by the actual controllers, shareholders, affiliates and acquirer of the Company, theCompany itself and other related parties that have been fulfilled during the reporting period or have notyet been completely fulfilled as of the end of the reporting period? Applicable □ N/A

2. If the Company has made any profit forecast on its assets or project and the reporting period fallswithin the period of such profit forecast, explanation about whether the goal has been achieved and therelated reasons

□ Applicable ? N/A

II. Occupation by the Controlling Shareholders and their Affiliates of the Funds of theListed Company for Non-operating Purpose

□ Applicable ? N/A

Our controlling shareholders and their affiliates have not occupied our funds for non-operating purposes during the reportingperiod.III. External Guarantees in Violation of the Regulations

□ Applicable ? N/A

We have not provided any external guarantee in violation of the applicable regulations during the reporting period.IV. Explanation by the Board of Directors about the Most Recent Modified Auditor’sReport

□ Applicable ? N/A

V. Explanation by the Board of Directors, the Board of Supervisors and the IndependentDirectors (if any) about the Modified Auditor’s Report Issued by the Accounting Firm forthe Reporting Period

□ Applicable ? N/A

VI. Changes in the Accounting Policies and Accounting Estimates Compared with theFinancial Report for the Previous Year or Correction of Material Accounting Errors

□ Applicable ? N/A

During the reporting period, there wasn’t any change in the accounting policies or accounting estimates, or correction of materialaccounting errors.

VII. Explanation of Changes in the Scope of Consolidation Compared with the FinancialReport for the Previous Year? Applicable □ N/A

VIII. Engagement and Termination of Engagement of Accounting FirmAccounting firm currently engaged

Whether a new accounting firm was engaged during the reporting period?

□ Yes ? No

Engagement of accounting firm for auditing internal controls, financial advisor or sponsor? Applicable □ N/ADuring the reporting period, we engaged Pan-China Certified Public Accountants LLP as the auditor of internal controls,responsible for the audit of our internal controls in 2024.IX. Risk of Delisting after Disclosure of the Annual Report

□ Applicable ? N/A

X. Matters Relating to Bankruptcy and Reorganization

□ Applicable ? N/A

We have not been involved in any bankruptcy or reorganization proceedings during the reporting period.XI. Material Litigations and Arbitrations

□ Applicable ? N/A

We have not been involved in any material litigation or arbitration proceedings during the reporting period.XII. Punishments and Rectifications

□ Applicable ? N/A

We have not been involved in any punishment and rectification during the reporting period.XIII. Credit Standing of the Company and its Controlling Shareholders and ActualControllers

□ Applicable ? N/A

XIV. Material Related-party Transactions

1. Related-party transactions relating to day-to-day operation

□ Applicable ? N/A

There has been no related-party transaction relating to day-to-day operation during the reporting period.

2. Related-party transactions involving the acquisition or sale of assets or equities

□ Applicable ? N/A

There has been no related-party transaction involving the acquisition or sale of assets or equities during the reporting period.

3. Related-party transactions involving joint external investment

□ Applicable ? N/A

There has been no related-party transaction involving joint external investment during the reporting period.

4. Debts owed by and to related parties

□ Applicable ? N/A

There has been no debt owed by or to related parties during the reporting period.

5. Dealings with affiliated financial companies

□ Applicable ? N/A

There has been no deposit, loan, facility or other financial business between us and any of our affiliated financial companies.

6. Dealings with financial companies controlled by the Company and its affiliates

□ Applicable ? N/A

There has been no deposit, loan, facility or other financial business between any of our controlled financial companies andaffiliates.

7. Other material related-party transactions

□ Applicable ? N/A

There has been no other material related-party transaction during the reporting period.XV. Particulars and Performance of Material Contracts

1. Trusteeship, contracting and leases

(1) Trusteeship

□ Applicable ? N/A

No such case during the reporting period.

(2) Contracting

□ Applicable ? N/A

No such case during the reporting period.

(3) Leases

□ Applicable ? N/A

No such case during the reporting period.

2. Material guarantees

? Applicable □ N/A

In RMB 0’000

Explanation about guarantees provided in a compound modeN/A

3. Entrusted management of cash assets

(1) Entrusted wealth management

? Applicable □ N/AParticulars of entrusted wealth management during the reporting period

In RMB 0’000

High-risk entrusted wealth management products that are significant individually, illiquid or not principal protected

□ Applicable ? N/A

Entrusted wealth management products the principal of which may be unrecoverable or which may otherwise be impaired

□ Applicable ? N/A

(2) Entrusted loans

□ Applicable ? N/A

No such case during the reporting period.

4. Other material contracts

□ Applicable ? N/A

We have not entered into any other material contract during the reporting period.

XVI. Other Significant Matters

□ Applicable ? N/A

There’s no other significant matter needing to be explained for the reporting period.XVII. Significant Matters of Subsidiaries

□ Applicable ? N/A

Section VII Changes in Shares and ShareholdersI. Changes in Shares

1. Changes in shares

In shares

Cause of change? Applicable □ N/A

Pursuant to the relevant provisions of Guidelines of Shenzhen Stock Exchange on Self-regulatory Supervision of Listed CompaniesNo. 9 – Repurchase of Shares, we held the 11

th meeting of the 6

th Board of Directors, the 9

th meeting of the 6

th

Board ofSupervisors and the 3

rdextraordinary general meeting in 2024, at which the Proposal for De-registering Partial SharesRepurchased was considered, approving the Company to repurchase 3,953,617 shares under the dedicated securities account forrepurchase for deregistration, so that the total shares of the Company will be reduced from 1,709,867,327 shares to 1,705,913,710shares. After being verified and confirmed by China Securities Depository and Clearing Corporation Limited Shenzhen Branch,the 3,953,617 shares repurchased by the Company have been deregistered on August 30, 2024. Please refer to the relevantannouncement disclosed on www.cninfo.com.cn and our designated newspapers for information disclosure.Approval of changes in shares

□ Applicable ? N/A

Registration of changes in shares

□ Applicable ? N/A

Effect of changes in shares on financial indicators including the basic earnings per share, diluted earnings per share, net assets pershare attributable to ordinary shareholders of the Company, etc. in the last year and the last period? Applicable □ N/ADuring the reporting period, we repurchased 1,588,800 shares. Based on the net assets as of the end of 2024, the net assets pershare increased by RMB 0.01/share, while the effect on the diluted earnings per share and basic earnings per share is insignificant.Other information that should be disclosed at the discretion of the Company or at the request of the securities regulatory authorities

□ Applicable ? N/A

2. Changes in non-tradable shares

□ Applicable ? N/A

II. Offering and Listing of Securities

1. Offering of securities (other than preferred shares) during the reporting period

□ Applicable ? N/A

2. Changes in the total number of shares, shareholding structure, and structure of assets and liabilities ofthe Company

□ Applicable ? N/A

3. Outstanding employee shares

□ Applicable ? N/A

III. Shareholders and Actual Controllers

1. Number of shareholders and shareholding structure of the Company

In shares

Share lending by shareholders holding more than 5% of the shares, top 10 shareholders and top 10 holders of tradable shares viarefinancing

□ Applicable ? N/A

Changes in top 10 shareholders and top 10 holders of tradable shares compared with the previous period due to share lendingunder refinancing/repayment

□ Applicable ? N/A

Whether the top 10 ordinary shareholders or top 10 holders of tradable ordinary shares conducted any transaction under therepurchase agreement during the reporting period

□ Yes ? No

No top 10 ordinary shareholder or top 10 holder of tradable ordinary shares has conducted any transaction under the repurchaseagreement during the reporting period.

2. Controlling shareholders of the Company

Nature of controlling shareholders: Natural personsType of controlling shareholders: Natural persons

Change in the controlling shareholders during the reporting period

□ Applicable ? N/A

There has been no change in our controlling shareholders during the reporting period.

3. Actual controllers of the Company and their concert parties

Nature of actual controllers: Domestic natural personsType of actual controllers: Natural persons

Change in the actual controllers during the reporting period

□ Applicable ? N/A

There has been no change in our actual controllers during the reporting period.Diagram of ownership and control relationship between the Company and its actual controllers:

The actual controllers control the Company through trust or other assets management methods

□ Applicable ? N/A

4. Whether the controlling shareholder or largest shareholder of the Company and its concert partieshave pledged more than 80% of shares held by them in the Company in aggregate?

□ Applicable ? N/A

Concert partiesYUAN Yongfeng

(13.04% shares)

Suzhou Dongshan Precision Manufacturing Co., Ltd.

5. Other corporate shareholders owning over 10% of shares in the Company

□ Applicable ? N/A

6. Restrictions on the sale of shares by the controlling shareholder, actual controller, parties involved inrestructuring, and other covenantors

□ Applicable ? N/A

IV. Share Repurchases Effected during the Reporting PeriodProgress of share repurchases? Applicable □ N/A

Note: As of January 15, 2024, we have repurchased a total of 1.5888 million shares of the Company through call auction under thededicated securities account for repurchase, accounting for 0.093% of the Company’s total share capital, where the highest tradingprice was RMB 15.89/share, the lowest trading price was RMB 15.59/share, and the total transaction amount was RMB 24.9970million (excluding handling fees). The repurchase of shares is in compliance with the provisions of laws and regulations and theCompany’s plan of share repurchase. Our plan of share repurchase has been fully implemented. Please refer to the relevantannouncement disclosed on www.cninfo.com.cn and our designated newspapers for information disclosure.

Progress of sale or repurchase of shares by call auction

□ Applicable ? N/A

Section VIII Preferred Shares

□ Applicable ? N/A

We did not have any preferred share during the reporting period.

Section IX Bonds

□ Applicable ? N/A

Section X Financial Report

I. Auditor’s Report

TextAuditor’s ReportPCCPA Audit [2025] No. 5-61

To shareholders of Suzhou Dongshan Precision Manufacturing Co., Ltd.,

I. OpinionWe have audited the financial statements of Suzhou Dongshan Precision Manufacturing Co., Ltd. (the “Company”), whichcomprise the consolidated and standalone balance sheets as of December 31, 2024, consolidated and standalone income statements,consolidated and standalone cash flow statements, and consolidated and standalone statements of changes in owners’ equity for theyear ended December 31, 2024, and notes to the financial statements.In our opinion, the accompanying financial statements are prepared and present fairly, in all material respects, theconsolidated and standalone financial positions of the Company as of December 31, 2024 and its consolidated and standaloneresults of operations and cash flows for the year ended December 31, 2024 in accordance with the Accounting Standards forBusiness Enterprises (the “CASBEs”).

II. Basis for opinionWe conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Ourresponsibilities under those standards are further described in “Responsibilities of the certified public accountants for the audit ofthe financial statements” below. We are independent of the Company in accordance with the Code of Ethics for Certified PublicAccountants of China, and have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.

III. Key audit mattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit of thefinancial statements for the current period. These matters were addressed in the context of our audit of the financial statements as awhole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.(I) Revenue recognition

1. Description

Refer to “Section X – V(37) and VII(61)” of this Report for detailed information disclosure.The operating revenue of the Company was primarily generated from the sale of electronic circuits, LED display devices,touch panels and LCMs, precision components and other products, which amounted to RMB 36,770,374,300 in 2024.Since operating revenue is a key performance indicator of the Company, and there is an inherent risk that the managementof the Company (the “Management”) may attempt to achieve the specific objectives or expectations through improper revenuerecognition, we identified revenue recognition as a critical audit matter.

2. Audit response

Our audit procedures related to revenue recognition included the following, among others:

(1) Obtained an understanding of the key internal controls related to revenue recognition, assessed the design of suchcontrols, determined whether such controls have been implemented, and tested the effectiveness of the relevant internal controls;

(2) Examined the sales contracts, obtained an understanding of the main contract terms and conditions, and assessed theappropriateness of the method of revenue recognition;

(3) With respect to the revenue from domestic sales, examined on a sample basis the sales contracts, sales invoices, deliveryorders, delivery notes and other supporting documents; with respect to the revenue from export, obtained the relevant informationfrom the China Electronic Port, checked the same against the book records kept by the Company, and examined on a sample basisthe sales contracts, sales invoices, delivery orders, export declaration forms, bills of lading and other supporting documents;

(4) Analyzed the operating revenues and gross margin by month, product and customer, identified major or abnormalfluctuations, and found out the causes;

(5) With respect to accounts receivable confirmation, selected sampled items to confirm the sales amounts via confirmationletters;

(6) Conducted cut-off tests on the operating revenues recognized around the balance sheet date to check whether theoperating revenues were recognized in the proper period; and

(7) Examined whether the information related to operating revenues has been properly presented in the financial statements.

(II) Net realizable value of inventories

1. Description

Refer to “Section X – V(17) and VII(10)” of this Report for detailed information disclosure.As of December 31, 2024, the Company’s book balance of inventories was RMB 7,163,376,800, the inventory provisionwas RMB 1,010,721,200, and the carrying value of inventories was RMB 6,152,655,600.

Inventories are measured at the lower of the cost and net realizable value. The Management determines the net realizablevalue according to the estimated selling price less the estimated cost of completion, estimated selling expenses and related taxes.Due to the significant amount of inventories and the significant judgment of the Management involved in determining the netrealizable values of inventories, we identified the net realizable values of inventories as a critical audit matter.

2. Audit response

Our audit procedures related to the net realizable values of inventories included the following, among others:

(1) Obtained an understanding of the key internal controls related to the net realizable values of inventories, assessed thedesign of such controls, determined whether they have been executed, and tested the effectiveness of such internal controls;

(2) With respect to the net realizable value of inventories estimated by the Management in prior years, reviewed the relevantresults or subsequent re-estimates made by the Management;

(3) Selected items to assess the reasonableness of the estimated selling prices of inventories, so as to verify whether theestimated selling prices were consistent with the prices on sales contracts, sales prices on the market and historical data, etc.;

(4) Evaluated the reasonableness of the estimation made by the Management regarding the costs, selling expenses andrelevant taxes before the inventories were completed;

(5) Tested whether the calculation of the net realizable value of inventories made by the Management was accurate;

(6) With reference to stock counting of inventories under supervision, identified inventories that were long-aged, outdated,decreased in production, subject to fluctuation in production costs or selling prices, or experienced changes in technologies ormarket demands, and assessed the reasonableness of the estimation of the net realizable value of inventories made by theManagement; and

(7) Examined whether the information related to the net realizable value of inventories has been properly presented in thefinancial statements.

(III) Impairment of fixed assets

1. Description

Refer to “Section X – V(24) and VII(21)” of this Report for detailed information disclosure.

Subject to the impact of the market and economic environments, Yancheng Dongshan Precision Manufacturing Co., Ltd.(“Yancheng Dongshan”), a subsidiary of DSBJ, suffered losses continuously and had partial fixed assets idle. The Managementconsidered that there were signs indicating the impairment of relevant fixed assets, so that the carrying value of such fixed assetscould not be fully recovered with the future cash flow generated by such assets or disposal of such assets. As of December 31,2024, the carrying value of Yancheng Dongshan’s fixed assets was RMB 1,911,351,000.Given the significant judgment of the Management in making the provision for impairment of fixed assets, especially theinherent uncertainty in predicting the future cash flow and estimating the recoverable amount of the fixed assets, and the possibleeffect of the Management’s preference, we identified the impairment of fixed assets as a key audit matter.

2. Audit response

Our audit procedures related to impairment of fixed assets included the following, among others:

(1) Obtained an understanding of the key internal controls related to impairment of fixed assets, assessed the design of suchcontrols, determined whether they have been executed, and tested the effectiveness of such internal controls;

(2) Examined relevant fixed assets on site and implemented stock counting under supervision to identify problems ofoutdated process and technologies, assets idle for a long period of time, the utilization of production capacities, etc.;

(3) Assessed the competencies, professional quality and objectivity of the external appraisers engaged by the Management;

(4) Assessed the appropriateness and consistency of the approaches adopted by the Management in impairment tests;

(5) Assessed the appropriateness of the material assumptions used by the Management in impairment tests and whether therelevant assumptions were consistent with the overall economic environment, industrial conditions, operating situations, historicalexperience, business plans, approved budgets, and other assumptions used by the Management in relation to the financialstatements;

(6) Tested the appropriateness, relevance and reliability of the data used by the Management in impairment tests andreviewed the consistency of inputs in impairment tests;

(7) Tested the accuracy of the calculation of the estimated present value of future cash flows by the Management; and

(8) Examined whether the information related to impairment of fixed assets has been properly presented in the financialstatements.

IV. Other information

The Management is responsible for the other information. The other information comprises the information included in theAnnual Report, but does not include the financial statements and our Auditor’s Report.

Our opinion in the financial statements does not cover the other information, and we will not express any form of assuranceconclusions thereon.In connection with our audit of the financial statements, our responsibility is to read the other information, and in doing so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in theaudit, or otherwise appears to be materially misstated.If we conclude that there is a material misstatement therein, we are required to communicate such matter. We have nothingto report in this regard.

V. Responsibilities of the Management and those charged with governance for the financial statements

The Management is responsible for the preparation and fair presentation of the financial statements in accordance with theCASBE, and the design, implementation and maintenance of internal controls that are necessary to enable the preparation offinancial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Management is responsible for assessing the Company’s ability to continue as agoing concern, disclosing (as applicable) matters relating to going concern, and using the going concern basis of accounting unlessthe Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance of the Company are responsible for overseeing the financial reporting process of theCompany.

VI. Responsibilities of the Certified Public Accountants for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance, but is not a guarantee that an audit conducted in accordance with the audit standards will always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error, and are considered material if, individually or inthe aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financialstatements.

As part of an audit in accordance with the audit standards, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

(I) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, designand perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a

basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriatein the circumstances;(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relateddisclosures made by the Management;(IV) Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and, based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubts onthe Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required by theaudit standards to draw attention in our auditor’s report to the related disclosures in the financial statements, or if such disclosuresare inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’sreport. However, future events or conditions may cause the Company to cease to continue as a going concern;

(V) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fair presentation; and(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activitieswithin the Company, to express an opinion in the financial statements. We are responsible for the direction, supervision andperformance of the audit of the Group, and solely responsible for our audit opinion.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any noteworthy deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirementsregarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear onour independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and are therefore the critical audit matters. We describethese matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremelyrare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of such communication.

II. Financial statements

The amounts in the statements contained in the notes to the financial statements are presented in RMB

1. Consolidated balance sheet

Prepared by: Suzhou Dongshan Precision Manufacturing Co., Ltd.

December 31, 2024

In RMB

Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang

2. Standalone balance sheet

In RMB

3. Consolidated income statement

In RMB

Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang

4. Standalone income statement

In RMB

5. Consolidated cash flow statement

In RMB