Aima Technology Group Co.,Ltd. — Annual Report 2023

May 31, 2024

2023 Annual Report

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Stock Code: 603529

Abbreviation: Aima Technology

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AIMA TECHNOLOGY GROUP CO., LTD. 2023 Annual Report

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Letter to Shareholders

Dear Shareholders,

As we close the year 2023, we have together witnessed another extraordinary journey of Aima Technology. This year, the Company has demonstrated a robust development trend in its business operations: the annual revenue reached 21.036 billion yuan, an increase of 1.12% year-over-year, and the net profit attributable to the shareholders of the listed company reached 1.881 billion yuan, marking a growth of 0.41% year-over-year, which presents strong resilience and strategic focus amidst changes.

Looking back at 2023, the overall business growth of the Company showed a pattern of being high initially and then tapering off. By the end of the year, the industry began to move towards a comprehensive recovery, and this consumption state of electric two-wheelers aligned well with the trend of other domestic consumer goods categories in China. Beyond the long-term positive outlook for China’s economic development trends, I believe it is essential to reach a consensus with all shareholders on the following three trends: First, the consumption trend of electric two-wheelers is showing a K-shaped divergence, where the upward stroke represents products developed based on consumer demand and usage scenarios, which feature differentiation, high-end quality, and intelligence, enjoying higher gross margins and consumer preference. The downward stroke represents products of off-the-shelf, homogenized, basic functional developed by manufacturers lacking original research capabilities, have not become more favored despite price reductions. This divergence has qualitatively changed the existing competitive landscape of the industry, forming two competing groups: one among enterprises with original research and innovation capabilities and another among homogeneous, off-the-shelf enterprises. The evolution of competition within these two groups will likely lead to innovative enterprises continuously eroding the market share of the follower enterprises. The underlying logic behind the K-shaped divergence is that consumers need better and more suitable products.

Second, the AIGC technology revolution represented by ChatGPT is profoundly impacting our lives and work in unprecedented ways, moving fintelligent information into the physical and biological worlds. AIGC brings more than just speech recognition, facial recognition, and image recognition; more importantly, it has the capability to create and generate, not only generating texts, images, and videos but also codes, drugs, formulas, and equations. We will soon witness significant technological and paradigm shifts brought about by AIGC. Meanwhile, we will also see more application scenarios of AIGC, including applications in regulatory, social, consumer, industry, and enterprise domains. This is a technological trend we cannot ignore.

Third, following land, labor, capital, and technology, data is emerging as the fifth major factor of production. From the “Data 20 Articles” for the construction of basic data management systems to the assetization of data elements, China has fundamentally established the basic framework for data resource confirmation, valuation, utilization, circulation, and trading, and data will become a core strategic resource for enterprises. From the perspective of operating performance, the assetization of data will become a new growth point for enterprises; from a business competition perspective, the use of data assets will become a key to winning in corporate competition; from a management efficiency perspective, the effective use of data elements will significantly enhance production and operational efficiency; from an R&D innovation perspective, the rapid flow and sharing of data will provide enterprises with opportunities for product innovation, service innovation, and business model innovation; from an industrial development perspective, leveraging data elements to achieve digital transformation will enhance industrial added value and competitiveness, thereby promoting industrial upgrading.

These three trends will bring tremendous imagination to the development and restructuring of the industry, and we will continue to focus on our main business, embrace innovation, act in accordance with the situation, and rise with the trends.

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As the electric two-wheeler industry increasingly becomes a prominent part of the global transportation system and dual-carbon industry chain, the industry faces both opportunities for capacity expansion and challenges from demand and regulatory aspects, such as product lifecycle management and regulatory policies, the lawful acquisition of road rights for innovative product categories, and the global market promotion and standard compatibility of products. In response, the Company, as a leading industry player, is willing to assume industry responsibilities, taking the lead or actively participating in the establishment of industry standards, organizing industry social responsibility seminars, and facilitating industry problem-solving. The Company will unite closely with suppliers, dealers, employees, and other stakeholders to build a harmonious industry ecosystem and promote the healthy development of the industry.

Aima Technology has been adhering to long-termism since its inception, focusing on one thing and excelling in one industry, and we have always maintained a prudent and steady attitude in choosing strategic directions. In 2023, Aima Technology also had a year of consolidation, based on ample in-depth research, we strategically deliberated and assessed important issues concerning industry and development of the Company. We believe that, first, regarding the industry capacity limit: from a long-term perspective, electric two-wheelers and three-wheelers will be the ideal choice for short and medium-distance travel for residents both domestically and abroad, which are the fundamental driving factors for industry development, and the concept of low-carbon travel will increasingly enhance the industry’s development. Thus, there is still room for market capacity expansion after the era of replacement purchases. Second, consumer rationality and high-end products: the consumer rationality of "can buy expensive, but not overpriced" is gradually becoming mainstream. High prices must match the product value and cost-effectiveness. Currently, the industry's high-end products are mainly marketed with extended range as their main selling point, which is still in its initial stages, with great potential for future development. Fashionable, unique design and intelligent functions should be the main directions to enhance product value. Third, AI technology is developing at a speed surpassing any previous industry, and as its commercialization progresses, AI will not only become a tool for enterprises to enhance operational efficiency and innovation capabilities but will also provide more development opportunities for various industries, including the development of the electric two-wheeler industry ecosystem. Based on confidence in industry development and self-awareness, Aima Technology will stay true to its original aspirations, continue to focus on its main business, and closely revolve around the electric two-wheeler industry ecosystem, actively exploring new business models with four major transformations as the direction and focus: transitioning from solely selling vehicles to providing travel solutions, from a leader in travel products to a leader in the travel ecosystem, from a domestic brand to an international brand, and from a manufacturing-oriented company to a technology-oriented company.

To date, Aima Technology has an organizational scale of nearly ten thousand people. We are acutely aware that large companies are prone to formalism and bureaucracy. Therefore, for Aima Technology to become a century-old enterprise, it must maintain organizational vitality and cohesion while expanding its organizational scale. To this end, in terms of corporate culture, we use a strong sense of crisis and determination for excellence to stimulate self-drive, continuously promoting self-awareness upgrading and transformation, and adopting an open and knowledge-seeking attitude to actively embrace new trends, new concepts, and new technologies. In terms of business management, we optimize processes and drive innovation through digital reengineering, making the Company a "dancing elephant" that can sensitively and efficiently perceive and respond to changes in external situations and market demands. In terms of talent cohesion, we adhere to the philosophy of " showing respect for our staff, improving their competence and making them happy”, viewing the Company as a carrier for employees to realize their life value, making every effort to provide each employee with decent remuneration, a pleasant and harmonious work environment, and clear growth opportunities. At the same time, employees are enabled to share the fruits of the Company's development through equity incentives, firmly walking the path to common prosperity. In 2023, focusing on long-term capacity building, we conducted a series of organizational reforms, process optimizations, and cadre adjustment mechanisms around product lifecycle management, which further enhanced organizational efficiency and the comprehensive operational efficiency of

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"from user demand insight to user demand satisfaction”. Meanwhile, the Company launched an equity incentive program, covering 324 core employees, further improving the Company's - medium and long term incentive system

Creating long-term value for shareholders is our unwavering commitment, just as "Users First" has been our value proposition for over 20 years. To repay our shareholders, based on the Company's 2023 operating performance and overall financial condition, fully considering the Company's future development and reasonable returns for shareholders, the Board of Directors proposes a profit distribution plan for 2023: based on the total share capital registered as of the record date for the distribution of equity, minus the shares held in the repurchase special securities account, it is proposed to distribute a cash dividend of 5.34 yuan (including tax) per 10 shares to all shareholders of the Company. This matter is still subject to approval by the Company's 2023 annual general meeting of shareholders.

We feel grateful for the constant company, support and trust from our shareholders, customers, suppliers and all walks of life! And we look forward to continuing to go hand in hand with all shareholders.

Optimists win the future, pessimists win the moment; and we possess both an optimistic attitude and a pessimistic outlook.

Chairman of the Board:

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April 15, 2024

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Important Notice

I. The Board of Directors, the Board of Supervisors, the directors, the supervisors and senior management of the Company warrant that there are no false representations or misleading statements contained in, or material omissions from this report; and jointly and severally accept full responsibility for the truthfulness, accuracy and completeness of the information contained in this report.

II. All members of the Board of Directors attended the Board Meeting.

III. Ernst & Young Hua Ming LLP (Special General Partnership) has issued an unqualified standard audit report for the Company.

IV. The person in charge of the Company, Zhang Jian, the person responsible for accounting work, Zheng Hui, and the head of the accounting institution (accounting supervisor), Zheng Hui, declare: they guarantee the truthfulness, accuracy, and completeness of the financial report in the annual report.

V. The Board of Directors' resolution on the profit distribution proposal for this reporting period or the proposal for capitalization of capital reserve.

Audited by Ernst & Young Hua Ming LLP (special general partnership), the net profit attributable to shareholders of the listed company for 2023 was 1,881,115,782.35 yuan, and the parent company's net profit was 1,774,577,731.31 yuan. As of December 31, 2023, the accumulated profits distributable to shareholders of the parent company amounted to 2,727,682,959.95 yuan.

For the year 2023, it is proposed to distribute profits based on the total share capital recorded on the equity distribution record date, deducting shares in the repurchase special securities account. The profit distribution plan is to distribute a cash dividend of 5.34 yuan (tax included) per 10 shares to all shareholders. As of December 31, 2023, the total share capital of the Company is 861,925,007 shares; deducting 14,130,524 shares in the Company's repurchase special securities account, the base for calculation is 847,794,483 shares, resulting in a total proposed cash dividend distribution of 452,722,253.92 yuan (tax included). The ratio of cash dividends for this year (including the cash dividend of 299,949,780.29 yuan distributed in the mid-year of 2023) is 40.01%.

If there is a change in the total share capital or the number of shares in the repurchase special securities account due to convertible bonds converting into shares, share repurchases, granting restricted shares under stock incentive plans, cancellation of shares under stock incentives, or cancellation of shares for significant asset restructuring, the Company plans to maintain the same per-share distribution ratio, adjusting the total distribution amount accordingly.

VI. Risk statement concerning forward-looking statements

√Applicable Not applicable

If there are forward-looking descriptions such as future plans and development strategies in this report, they do not constitute substantive commitments to investors by the Company. Investors should maintain adequate risk awareness and should understand the differences between plans, forecasts, and commitments, paying attention to investment risks.

VII. Whether there is non-operational fund occupation by the controlling shareholder and other related parties

No

VIII. Whether there is any situation of providing external guarantees in violation of decision-making procedures

No

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IX. Whether over half of board members cannot guarantee the truthfulness, accuracy and completeness of the annual report declared by the Company

No

X. Significant risk warnings

During the reporting period, there were no significant risks that materially impacted the company's production and operations. The Company has detailed the potential risks that may be faced in the production and operation process in this report. For specific content, please refer to Section 3 VI. (IV) Possible Risks of the report.

XI. Others

• Applicable √Not applicable

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Table of Contents

Section 1 Definition ..................................................................................................................... 9 Section 2 Company Profile and Key Financial Indexes ........................................................13 Section 3 Discussion and Analysis of the Management ...................................................... 18 Section 4 Corporate Governance ............................................................................................ 62 Section 5 Environmental and Social Responsibilities ..........................................................82 Section 6 Significant Events .................................................................................................... 87 Section 7 Changes in Shares and Information about Shareholders ................................. 111 Section 8 Preferred Shares .....................................................................................................120 Section 9 Bond-related Information ...................................................................................... 121 Section 10 Financial report .....................................................................................................124

(I) Full text and Abstract of the Company’s Annual Report signed by the legal representative of the Company and stamped by the Company; (II) Financial statements signed by the legal representative, the Financial Documents Available for Controller, and the head of the accounting department (accounting Reference supervisor) and stamped by the Company; (III) The originals of all the Company’s documents and announcements disclosed on newspapers designed by China Securities Regulatory Commission during the reporting period.

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Section 1 Definition

I. Definition

In this report, unless otherwise stated in the context, the following terms have the following meanings:

Aima Technology /Aima/Company/the Company/the Group	refers to	Aima Technology Group Co., LTD.
Yancheng Dingai	refers to	Yancheng Dingai Venture Capital Partnership (Limited Partnership)
Guangdong Vehicle	refers to	Guangdong Aima Vehicle Technology Co., Ltd, a wholly owned subsidiaryof Aima Technology
Jiangsu Vehicle	refers to	Jiangsu Aima Vehicle Technology Co., Ltd, a wholly owned subsidiaryof Aima Technology
Tianjin Vehicle	refers to	Tianjin Aima Vehicle Technology Co., Ltd., a wholly owned subsidiaryof Aima Technology
Zhejiang Vehicle	refers to	Zhejiang Aima Vehicle Technology Co., Ltd., a wholly owned subsidiaryof Aima Technology
Henan Vehicle	refers to	Henan Aima Vehicle Co., Ltd., a wholly owned subsidiary of Aima Technology
Tianjin Sports	refers to	Tianjin Aima Sports Goods Co., Ltd., a wholly owned subsidiaryof Aima Technology
Guangxi Vehicle	refers to	Guangxi Aima Vehicle Co., Ltd., a wholly owned subsidiaryof Aima Technology
Suiwanwan	refers to	Tianjin Suiwanwan Cultural Communication Co., Ltd., a whollyowned subsidiaryof Aima Technology
Xiaopa Electric	refers to	Xiaopa Electric Technology (Shanghai) Co., Ltd., a whollyowned subsidiaryof Aima Technology
Spozman	refers to	Tianjin Aima Shared Technology Services Co., Ltd., a wholly owned subsidiary of Aima Technology, Renamed as "Tianjin Spozman TechnologyCo., Ltd”.
Xiaoma Network	refers to	Chongqing Xiaoma Network Technology Co., Ltd., a whollyowned subsidiaryof Aima Technology
Tianjin Tianli	refers to	Tianjin Tianli Electric Bicycle Co., Ltd., a wholly owned subsidiaryof Aima Technology
Aima Chongqing	refers to	Aima Technology (Chongqing) Co., Ltd., a wholly owned subsidiaryof Aima Technology
Chongqing Vehicle	refers to	Chongqing Aima Vehicle Technology Co., Ltd., a wholly owned subsidiaryof Aima Technology
Zhejiang Sales	refers to	Aima Technology (Zhejiang) Co., Ltd., a wholly owned subsidiaryof Aima Technology
Taizhou Manufacture	refers	Taizhou Aima Vehicle Manufacture Co., Ltd., a wholly

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	to	owned subsidiary of Aima Technology
Aima Taizhou	refers to	Aima Technology (Taizhou) Co., Ltd., a wholly owned subsidiaryof Aima Technology
Aima Venture Capital	refers to	Aima Growth Venture Capital (Ningbo) Co., Ltd., a wholly owned subsidiaryof Aima Technology
Lishui Vehicle	refers to	Lishui Aima Vehicle Technology Co., Ltd., a wholly owned subsidiaryof Aima Technology
Suoteng Technology	refers to	Suoteng Technology Hong Kong Co., Ltd., a wholly owned subsidiaryof Aima Technology
Geling New Energy	refers to	Geling New Energy Technology (Shandong) Co., Ltd.,a controlled subsidiaryof Aima Technology
Aiska	refers to	Zhejiang Aiska Technology Co.,Ltd.,a controlled subsidiaryof Aima Technology
Xiaoma Intelligent	refers to	Chongqing Xiaoma Intelligent Technology Co., Ltd., a whollyowned subsidiaryof Aima Technology
Tianjin Xiaoma	refers to	Tianjin Xiaoma Intelligent Technology Co.,Ltd., a wholly owned subsidiaryof Aima Technology
Guangxi Xiaoma	refers to	Guangxi Xiaoma Intelligent Technology Co.,Ltd., a controlled subsidiaryof Aima Technology
Wanning Xiaoma	refers to	Wanning Xiaoma Intelligent Technology Co.,Ltd., a whollyowned subsidiaryof Aima Technology
Taizhou Xiaoma	refers to	Taizhou Xiaoma Intelligent Technology Co.,Ltd., a wholly owned subsidiaryof Aima Technology
Yangjiang Xiaoma	refers to	Yangjiang Xiaoma Intelligent Technology Co.,Ltd., a whollyowned subsidiaryof Aima Technology
Chongqing Electromechanical	refers to	Chongqing Aima Electromechanical Technology Co., Ltd., a subsidiaryof Aima Technology
Aima Vehicle Service	refers to	Chongqing Aima Vehicle Service Technology Co., Ltd., a whollyowned subsidiaryof Aima Technology
Tianjin Electromechanical	refers to	Tianjin Aima Electromechanical Technology Co., Ltd., a wholly-owned subsidiaryof Aima Technology”.
Super Universe	refers to	Super Universe (Chongqing) Vehicle Industry Technology Co., Ltd., a wholly owned subsidiary of Aima Technology
Aima Lianxiang	refers to	Tianjin Aima Lianxiang Technology Co., Ltd., a controlled subsidiaryof Aima Technology
Aima Shengsituo	refers to	Tianjin Aima Shengsituo Technology Co., Ltd., a controlled subsidiaryof Aima Technology
Singapore Aima	refers to	Aima Technology Singapore Pte.ltd., a wholly owned subsidiaryof Aima Technology
Vietnam Aima	refers to	Powelldd Technology Company Limited, a wholly owned subsidiaryof Aima Technology
Indonesia Aima	refers	Pt Aima Electric Vehicles Indonesia, a wholly owned

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	to	subsidiary of Aima Technology
Aima Logistics	refers to	Chongqing Aima Zhilian Logistics Co., Ltd., a controlled subsidiaryof Aima Technology
Aima Electric Drive	refers to	Aima Electric Drive Systems Co., Ltd., a wholly owned subsidiaryof Aima Technology
Aima Nanfang	refers to	Aima Nanfang Co., Ltd., a wholly owned subsidiary of Aima Technology
Tianjin Jiema	refers to	Tianjin Jiema Electric Technology Co., Ltd., a company in which Aima Technologyholds shares
Today Sunshine	refers to	Zhejiang Today Sunshine New Energy Vehicle Co., Ltd., a companyin which Aima Technologyholds shares
Chongqing Xintai	refers to	Chongqing Xintai Aluminum Industry Co., Ltd, a companyin which Aima Technologyholds shares
Guangxi Ningfu	refers to	Guangxi Ningfu New Energy Technology Co., Ltd, a companyin which Aima Technologyholds shares
Shandong Aidebang	refers to	Shandong Aidebang Intelligent Technology Co., Ltd., a companyin which Taizhou Jinfu holds shares
Beijing Zhongzhong	refers to	Beijing Zhongzhong Travel Technology Co., Ltd., a companyin which Aima Technologyholds shares
Taizhou Jinfu	refers to	Taizhou Jinfu Venture Capital Partnership (Limited Partnership), a company in which Aima Technology holds shares
Guigang production base	refers to	Aima Smart Travel Industrial Park project, a production initiative by Aima Technology under construction in Guigang, Guangxi
Lishui production base	refers to	Aima New Energy Smart Travel Eco-Industrial Park project, a production initiative by Aima Technology under construction in Lishui, Zhejiang
Taizhou production base	refers to	Taizhou Intelligent Electric Vehicle and High-Speed Electric Motorcycle project, a production initiative by Aima Technology under construction in Taizhou, Zhejiang
Chongqing production base	refers to	Aima Southwest Manufacturing Base project, a production initiative by Aima Technology under construction in Tongliang, Chongqing
New National Standard	refers to	GB17761-2018 Safety Technical Specification for Electric Bicycle
CRSC	Refers to	China Securities Regulatory Commission
SSE	refers to	Shanghai Stock Exchange
Convertible Bonds	refers to	Convertible bonds publicly issued by the Company in 2023

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Company Law	refers to	Company Law of the People’s Republic of China
Securities Law	refers to	Securities Law of the People’s Republic of China
Yuan, ten thousand yuan	refers to	The Chinese currency renminbi (RMB) and ten thousand RMB
Articles of Association	refers to	Articles of Tianjin Aima Technology Co., Ltd.
Reporting period	refers to	January 1, 2023 to December 31, 2023
Same period of last year	refers to	January 1, 2022 to December 31, 2022
Electric two-wheelers	refers to	Electric two-wheelers contain “electric bicycles” defined according to the standard “Safety Technical Specification for Electric Bicycle” (GB17761-2018) and “electric moped” and “electric motorcycle” with two wheels defined according to “Technical Terms of Motorcycle and Moped Part 1: Type of Vehicle”(GB/T5359.1-2019).
Electric two-wheel motorcycle	refers to	“Electric moped” and “electric motorcycle” with two wheels defined according to “Technical Terms of Motorcycle and Moped Part 1: Type of Vehicle” (GB/T5359.1-2019).

Note: Discrepancies between the sum of individual values and the total figures in this report may occur due to rounding adjustments made during calculations.

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Section 2 Company Profile and Key Financial Indexes

I. Company’s Information

I. Company’s Information
Chinese name	爱玛科技集团股份有限公司
Abbreviation of Chinese name	爱玛科技
English name	Aima Technology Group Co., Ltd.
Abbreviation of English name	AIMA
Legal representative	Zhang Jian

II. Contact Information

	Board Secretary	Securities Representative
Name	Wang Chunyan	Li Xin, Ma Qunbo
Address	22/F, Global Financial Center, No. 2 Dagu North Road, Heping District, Tianjin City	22/F, Global Financial Center, No. 2 Dagu North Road, Heping District, Tianjin City
Tel	022-5959 6888	022-5959 6888
Fax	022-5959 9570	022-5959 9570
Email	amkj@aimatech.com	amkj@aimatech.com

III. General Company Information

Registered address	No. 5 Aima Road, South Area, Jinghai Economic Development Area, Tianjin City	No. 5 Aima Road, South Area, Jinghai Economic Development Area, Tianjin City
Changes of registered address	Not applicable
Office address	No. 5 Aima Road, South Area, Jinghai Economic Development Area, Tianjin City
Zip code	301600
Website	www.aimatech.com
Email	amkj@aimatech.com
IV. Information Disclosure and Place of Preparation
Media and websites where this Report is disclosed		Securities Times, Securities Daily, China Securities Journal, Shanghai Securities News
Stock exchange website where this Report is disclosed		http://www.sse.com.cn
Place where this Report is lodged		Board of Directors Office of the Company

V. Stock Profile

V. Stock Profile	V. Stock Profile	V. Stock Profile	V. Stock Profile	V. Stock Profile
Stock profile
Category of stock	Stock exchange	Abbreviation of stock	Stock code	Abbreviation of stock before change
A share	Shanghai Stock	Aima	603529	Not applicable

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		Exchange	Technology	Technology
VI. Other Relevant Information
Accounting firm engaged by the Company (domestic)	Name			Ernst & Young Hua Ming LLP
	Office address			17/F Ernst & Young Building, Eastern Square, No. 1 Dongchangan Street, Dongcheng District, Beijing City
	Name of signing accountant			Guo Jing, Zhao Ruiqing
Sponsor that fulfilled the continuous supervision duties during the reporting period	Name			Huatai United Securities Co., Ltd.
	Office address			6/F, Block A, Fengming International Building, No. 22 Fengsheng Hutong, Xicheng District, Beijing City
	Name of signing sponsor representative			Zhao Naiji, Yang Yang
	Duration of continuous supervision			August 16, 2022 to December 31, 2024

VII. Major Accounting Data and Financial Indexes in Recent Three Years

(I) Major accounting data

VII. Major Accounting Data and Financial Indexes in Recent Three Years (I) Major accounting data	VII. Major Accounting Data and Financial Indexes in Recent Three Years (I) Major accounting data	VII. Major Accounting Data and Financial Indexes in Recent Three Years (I) Major accounting data	VII. Major Accounting Data and Financial Indexes in Recent Three Years (I) Major accounting data	VII. Major Accounting Data and Financial Indexes in Recent Three Years (I) Major accounting data
Unit: Yuan(RMB)
Major accounting data	2023	2022	Yoy change (%)	2021
Revenue	21,036,120,862.29	20,802,212,994.46	1.12	15,398,710,870.72
Net profit attributable to shareholders of the listed company	1,881,115,782.35	1,873,433,343.24	0.41	663,998,092.90
Net profit deducting non-recurring gains or losses attributable to shareholders of the listed company	1,764,467,999.39	1,797,357,709.42	-1.83	616,214,620.89
Net cash flows from operatingactivities	1,864,276,233.90	5,051,454,116.94	-63.09	2,094,187,373.97
	2023 year end	2022 year end	Yoy change (%)	2021 year end
Net assets attributable to shareholders of the listed company	7,712,038,217.61	6,721,176,109.98	14.74	4,974,827,390.92
Total assets	19,892,813,618.33	18,471,355,153.82	7.7	13,396,944,911.18

(II) Major financial indexes

(II) Major financial indexes
Major financial indexes	2023	2022	Yoychange(%)	2021
Basic earningsper share(Yuan/share)	2.2	3.31	-33.53	1.79
Diluted earningsper share(Yuan/share)	2.12	3.31	-35.95	1.79

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Basic earnings per share deducting non-recurring gains or losses(Yuan/share)	2.06	3.17	-35.02	1.66
Weighted average return on net assets (%)	25.4	31.15	Decrease of 5.75 percentagepoints	17.46
Weighted average return on net assets after deductingnon-recurring profit or loss(%)	24.01	30.08	Decrease of 6.07 percentagepoints	16.31

Description of major accounting data and financial indexes of the Company within three years before the end of the reporting period

Applicable √Not applicable

VIII. Difference of Accounting Data under Domestic and International Accounting Standards

(I) Difference between net profits in the financial report concurrently disclosed according to international accounting standard and accounting standard of China, and difference between net assets attributable to shareholders of the listed company

Applicable √Not applicable

(II)Difference between net profits in the financial report concurrently disclosed according to overseas accounting standard and accounting standard of China, and difference between net assets attributable to shareholders of the listed company

Applicable √Not applicable

(III) Description of difference between overseas and domestic accounting standards:

Applicable √Not applicable

IX. Major Financial Data by Quarter in 2023

IX. Major Financial Data by Quarter in 2023	IX. Major Financial Data by Quarter in 2023	IX. Major Financial Data by Quarter in 2023	IX. Major Financial Data by Quarter in 2023	IX. Major Financial Data by Quarter in 2023
Unit: Yuan(RMB)
	Q1 (Jan. - Mar.)	Q2 (Apr. - Jun.)	Q3 (Jul. - Sep.)	Q4 (Oct. -Dec.)
Revenue	5,441,881,320.83	4,774,698,099.50	7,239,025,069.68	3,580,516,372.28
Net profit attributable to shareholders of the listed company	477,753,704.97	417,036,288.22	662,750,522.73	323,575,266.43
Net profit deducting non-recurring gains or losses, attributable to shareholders of the listed company	468,732,144.84	364,906,660.17	613,252,615.20	317,576,579.18
Net cash flows from operatingactivities	1,392,270,811.53	-1,754,257,286.27	3,749,734,836.34	-1,523,472,127.70

Description of difference between quarterly data and data of the disclosed periodical report

Applicable √Not applicable

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X. Non-recurring Gains or Losses Items and Amounts

√Applicable Not applicable

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Non-recurring gains or losses	2023	2022	2021
Profit or loss from disposal of non- current assets, including the write-off of provision for asset impairment	-5,102,906.88	-5,205,312.26	-12,713,091.69
Government grants recognized in during profit or loss (excluding those having close relationship with the Company’s normal business, conforming to the national policies and regulations and enjoying ongoing fixed amount or quantity accordingto certain standard)	148,273,316.15	91,038,555.75	34,294,933.55
Profit or loss arising from changes in fair value of financial assets and financial liabilities held by non-financial entities, and profit or loss arising from disposal of financial assets and financial liabilities, except for effective hedging activities related to the Company’s normal business operations	-17,226,650.77	-12,120,000.00	9,978,187.68
Write back of the impairment provision for receivables that have been individually tested for impairment	3,439.63	24,164,117.84
Gains arising when the investment cost in acquiring subsidiaries, associates, and joint ventures was less than the fair value of the identifiable net assets at the time of investment.	99,502.54		3,497,737.94
Non-operating income or expenses other than the above items	18,838,780.52	-13,062,366.52	6,361,478.19
Other gain or loss in compliance with the definition of non-recurring gain or loss	5,994,200.26	16,736,022.09	22,292,050.35
Less: Amount affected bythe income tax	34,159,727.30	25,387,754.23	15,927,824.01
Affected amount of minority shareholders’ equity (after tax)	72,171.19	87,628.85
Total	116,647,782.96	76,075,633.82	47,783,472.01

Description of classifying significant items not listed in “Explanatory Announcement No. 1 on Information Disclosure for Companies Issuing Securities—Non-Recurring Gains and Losses” as non-recurring items, as well as for reclassifying items designated as non-recurring in the same announcement as recurring profits and losses.

Applicable √Not applicable

XI. Items Measured at Fair Value

√Applicable Not applicable

Unit: Yuan (RMB)

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Name of item	Beginning balance	Ending balance	Change	Impact to the profit or loss of current period
Financial assets at fair value through other comprehensive income- receivables financing	8,332,754.00	8,893,241.61	560,487.61	N/A
Financial asset held for trading	142,668,675.59	176,041,430.92	33,372,755.33	-14,659,496.76
Total	151,001,429.59	184,934,672.53	33,933,242.94	-14,659,496.76

XII. Others

Applicable √Not applicable

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2023 Annual Report

Section 3 Discussion and Analysis of the Management

I. Discussion and Analysis on Operation Situation

During the reporting period, facing intensified industry competition, extreme weather and other adverse factors, the Company closely followed the strategic axis of “Users First, Excellent Products, In-depth Development in the Market, Refined Operation” and the strategic direction of transitioning to a digitized technology company. It continued to focus on its core business, namely, development and manufacture of electric two-wheelers, strictly implemented the annual business plan, and achieved commendable operating results.

During the reporting period, the Company achieved a revenue of 21,036.1209 million yuan, an increase of 1.12% year-over-year; net profit attributable to shareholders of the listed company was 1,881.1158 million yuan, an increase of 0.41% year-over-year; net profit deducting non-recurring gains or losses attributable to shareholders of the listed company, was 1,764.4680 million yuan, a decrease of 1.83% year-over-year. The key focus areas of the Company in 2023 were as follows:

(I) Improvement of product power

Regarding product research and development, the Company examined and reviewed the product development process with an investment mindset. During the reporting period, the development of key products was fully upgraded from Aima Forward Product Development Process (APDS) to Integrated Product Development (IPD). In the planning phase, comprehensive demand management was implemented, a user demand research team composed of professionals in planning, research and development, and marketing was established. The team conducted sufficient market visits and regional observations under the guidance of scientific methods and produced planning reports focused on product commercial value and competitiveness, to thoroughly clarify user demand and product positioning in the early stages of product development, so that the accuracy and success rate of the product planning can be comprehensively improved. At the decision-making stage, the Integrated Project Management Team (IPMT), composed of senior decision-makers from various departments, acted as the product development decision committee. The team reviewed new product planning reports and made development decisions based on the concept of investment value, ensuring continuous launching strategically significant flagship products that precisely meet market demands while controlling resource input. During the development phase, taking products as projects, each project's PDT (Product Development Team, formed by personnel from various functional departments such as industrial design, R&D, procurement, manufacturing, quality management, and marketing) was fully responsible for the product development process. Various functional departments collaborated closely to enhance the feasibility of product design across all functional areas of the Company, and conducted preparatory work such as component matching, development validation, pilot production, and launch marketing concurrently from the start of product design, which is conducive to

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rapidly developing products and promptly responding to market demands while controlling development costs.

Regarding technology platformization, the Company treats technology development as a functional provider of technology and processes for product development. During the reporting period, the Company continued to advance the construction of Common Build Block (CBB) shared modules. The technical development department not only provides CBBs that meet the needs for the current stage of product development, but also conducts technological reserves and develops CBBs that lead the industry's development based on the Company's analysis of market trends. In terms of parts platformization, the Company increased the generalization rate and the modularization rate of components, at the same time, integrated various components of high adaptability and excellence in quality, performance, and cost control, then standard interfaces were used for connection to form platforms, which were applied to the development of multiple vehicle models. Through vehicle platformization, the various stages of the product development process could be carried out in parallel and remotely, reducing dependencies between stages, and could be directly aligned with market demands, thereby enhancing the precision and efficiency of product development and ensuring the stability of product quality and performance as well as cost controllability.

Regarding quality management, the Company continuously advanced and optimized the entire process quality control system. During the reporting period, the IPD process for product development was initially introduced, the review of quality objectives and competitiveness in project quality planning was strengthened in the product design phase, the indicator system, which previously focused on deliverables, was optimized to emphasize planning information and competitiveness analysis, further shifting quality management towards being "guided by user demands”. Meanwhile technical expert teams were established according to the attributes of complete vehicles and components, and took responsibility for design quality. During the product development stage, the grading and review management mechanism of quality gate deliverables was implemented, executing the quality gate pre-review and early warning mechanism to comprehensively improve the process quality of new project development. In the production process, relying on intelligent manufacturing, ERP (Enterprise Resource Planning), intelligent quality management, quality information puzzle, and other digitalized operational systems, the Company achieved comprehensive quality data collection, intelligent analysis, smart alerts, intelligent control, smart forecasting, and intelligent decision-making, established a unified quality management system and common quality standards, focusing on product issue improvement, and building a rigid and comprehensive quality management data operation system. In terms of inspection capability enhancement, integrating the product development testing concepts of the automotive industry, the Company scientifically designed schemes of test planning and verification, conducting component-level, system-level, and complete vehicle-level tests concurrently, to further enhance inspection efficiency and effectiveness. During the reporting period, over 30 sets of inspection equipment were invested in at the production bases, expanding inspection capabilities in areas such as shock absorber durability,

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material photodegradation, high and low temperature impacts on electrical components, complete vehicle vibration durability, and vehicle steering. A new dimensional measurement room was added, capable of measuring the length dimensions and positional tolerance dimensions of critical components.

(II) Improvement of channel capacity and capability

Channel construction and upgrade were one of the focal points during the reporting period. On one hand, the Company continued to expand the number of channels, implemented a strategy to deepen channel penetration, strengthened the establishment of outlets in urban communities and townships, and increased the number of terminal storefronts. On the other hand, guided by user demands and utilizing advanced digital intelligence tools to collect and analyze consumer information and conduct scientific market research, the Company precisely assessed the consumption characteristics and market trends of different regions and groups, based on which, the Company strategically adjusted the channel structure and product combination strategies for different channels.

During the reporting period, the Company continued to enhance the refined management of stores. The Company has constantly improved the entire lifecycle management of channels, graded management, and incentive systems, which fostered dealers' enthusiasm for improving operational and marketing capabilities, helping to maintain channel vitality and efficiency. The Company gradually strengthened the implementation of the Retail Manager Plan, which serves individual stores and reaches in-store sellers, to achieve grid-based channel management by the Company. The Plan has established a smooth and efficient information sharing and communication mechanism between the Company and its channels, which is beneficial for the Company to comprehensively and accurately grasp the specifics of all its dealers and stores, laying a solid foundation for implementing graded management and precise assistance, also facilitating the rapid implementation of marketing strategies such as new product launches. The Company continued to advance the digitization of channels, building a one-stop dealer’s service platform to efficiently handle dealers’ order placement, inventory management, distribution and other processes. The Company constructed a retail system “Ling Shou Tong” for stores to improve channel operational efficiency and collect dynamic sales data, by which the Company can gather and analyze seasonal, cyclical, and other patterns in product sales across different regional markets, as well as consumer preferences, market trends and other relevant information. Based on this information, the Company optimized the product structure, marketing plans, and inventory structure of each sub-region to achieve precise marketing and enhance the output of individual stores, furthermore, channel data can inform production, enhancing the accuracy of its production planning. The Company has been insisting on value integration of factory and distributor, and has established a special training system and business team. Based on the analysis of channel operation and data, dealers, stores, and salespersons were classified, and tailored empowerment programs and training content were customized for each category, meanwhile digital training systems were leveraged to achieve precise and efficient empowerment. To enhance the e-commerce operation capabilities of dealers, the Company provided operational training and technical support from traffic acquisition to

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sales conversion for dealers, guiding more dealers to use various new tools such as self-media, short videos, and seeding APPs as their regular marketing methods, and promoting the development of dealer live broadcasting matrix.

In recent years, the Company has piloted the operator model in regions with numerous dealers but smaller scales. In this model, products sold in the region are uniformly purchased and distributed by operators collaborating with the Company. Unlike the traditional model where the Company primarily manages dealers and through them manages distributors and channel stores, in the operator model, operators manage orders in a standardized wholesale markup manner. The Company directly utilizes digital systems to standardize and refine retail management at the store level, strengthening the Company’s control over terminals while making light asset investments, which facilitates the rapid and efficient implementation of the Company’s product and marketing policies. The data recovery ratio of terminal dynamic sales in the operator model is also higher. During the reporting period, the Company expanded the pilot areas for the operator model in suitable regions, accumulating operational and retail experience.

Regarding international channels, the International Division implemented channel expansion plans tailored to the regional characteristics and consumer habits of major markets. During the reporting period, the Company participated in the China Import and Export Fair (Guangzhou), Electrify Long Beach exhibition (the USA), and the Milan exhibition in Italy, actively showcasing its products and engaging in in-depth communications and negotiations with potential overseas customers, helping to expand the international sales network. The Company opened an Alibaba international platform and a standalone site (Aima’s official overseas website), using platform operations to increase brand exposure in overseas markets and expand customer acquisition channels. It established product sales cooperation with businesses in North and South America, making significant progress in local channel expansion. During the reporting period, international business revenue was 226.0732 million yuan, an increase of 2.21% year-over-year.

(III) Improvement of brand power

The Company adopted "Technology and Fashion" as its brand proposition, with " Ride with Aima, Ride with Fashion and Ease" as its brand slogan. During the reporting period, it undertook a full-dimensional youthful upgrade of the brand, centered on fashion, innovation, personalization, digitization, social participation, and social responsibility. In terms of products, the Company's strengths in fashion design and color schemes were prominent and industry-leading. During the reporting period, it launched the elegantly luxurious "Egg" model, the fashionably cute "Luna" model, the tech-savvy "Dream Maker" model, the mech-cool "Geek" model, and the youthful and robust "Commander" model, aimed at precisely meeting the segmented aesthetic needs of young consumers. In collaboration with a renowned color institute, the Company conducted research on industry color trends, released the annual fashionable color "Vibrant Magenta”, and actively applied it to vehicle design, store displays, and promotional materials, conveying a brand tone of "sophistication, vitality, optimism, and bravery”. The Company continued

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to advance product innovation, enhancing the experience of intelligent features to attract the attention of young groups with the technological content of the products.

In terms of refreshing the brand image, the Company used fashionable design elements and colors to upgrade store images, introduced soft fashion terminal scene displays, implementing popular fashion scenes beloved by young consumer groups such as "Outdoor Adventure”, "Fashion Exploration”, "Reverse Tourism”, "Solo Leisure”, and "Human-Pet Coexistence". These actions could provide personalized and enjoyable shopping, experiences, establishing a strong connection between the Company's products and the fashionable lifestyle in consumer minds. The Company established the industry's first female-exclusive category store called " Miss Ladies Fashion Theme Store", decorated with pink tones and paired with exclusive display designs to showcase terminal scenes themed around "Punk Girl", "Moon Girl", and "Sweetheart Girl", Showcasing a sweet, cool, and chic fashion attitude for young women. During the reporting period, more than 50 exclusive stores were set up. The Company collaborated with high-quality variety shows "Ride the Wind 2023" and "Call Me by Fire 3", signing talented artists and young idols as brand fashion ambassadors, and cooperated with the fashion magazine ELLE to shoot the Aima Shine fashion series. The two hot variety shows had helped Aima brand maintain high visibility throughout the year on top fashion platforms such as Weibo and Xiaohongshu, with exposure and discussion exceeding billions of times, achieving excellent promotional results.

In terms of brand activities, the Company planned interactive brand events to meet the social needs of young consumers for participation and experience, including launching the college student-exclusive mini-program "Aima Shining Zone", recruiting college campus fashion officers, establishing Aima Creative Workshops at multiple universities, holding the Aima Star Chasing Music Festival, and creating brand promotional IPs on Bilibili. The Company obtained the authorization for the gaming IP Arena of Valor. and held "Aima Kings Challenge" events in multiple regions, inviting Arena of Valor championship team members for live interactions with fans during the finals; the Company invited well-known basketball stars to participate in the Aima Fans Basketball Festival, integrated Aima models into popular domestic online games such as "Journey to the West" and "Earth Revival" as mounts for in-game characters, collaborated with local original IPs beloved by young generation, launching the Aima-Little Yellow Duck co-branded series. The Company fully respects the trendy preferences and diverse cultures of the younger demographic, demonstrating an open, equal, and inclusive brand attitude.

Regarding social responsibility, the Company continuously promoted green operations and built green factories. During the reporting period, it initiated an ESG campaign at an industry forum for the first time, led the industry in practicing sustainable development concepts, actively responding to young consumers' environmental protection concerns, and building resonance and emotional connections.

(IV) Improvement of technological power

The Company has always regarded independent R&D as the foundation for improving product performance, competitiveness, and achieving long-term development. It has

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continuously increased investments in R&D, with R&D expenses during the reporting period amounting to 589,467.2 thousand yuan, an increase of 16.34% year-over-year.

During the reporting period, the Company, in collaboration with the China National Institute of Standardization, introduced the industry's first endurance test standard based on actual user driving conditions for electric motorcycles, titled “Test Methods for Energy Consumption Rate and Range of Electric Motorcycles under User Driving Conditions”. This standard breaks away from the conventional constant speed mileage test method and instead evaluates the range of electric motorcycles based on actual user driving conditions, including urban, rural, and comprehensive driving conditions, covering various real-world usage scenarios, thereby the test results closely reflect the actual endurance performance, facilitating industry technological innovation and the enhancement of standards, thereby enhancing consumer trust. Based on the results of tests covering tens of thousands of kilometers under various conditions, the Company launched a new generation of engine technology systems during the reporting period—Engine 5, focusing on performance enhancements in the triple-electric system and smart applications: developing three types of high-efficiency motors with different performance focuses tailored to various terrains and landscapes, and utilizing in-house developed controllers that excel in architecture stability, compatibility, and precise control, further enhancing the efficiency of the power system. The Company’s intelligent ecosystem was fully integrated, achieving an interconnected application of "Human-Vehicle-Device-Helmet-APP-Cloud”.

In terms of core technology research in the industry, the Company continued to advance the R&D of technologies such as motors, controllers, batteries, new materials applications, having made multiple accomplishments. In motor development, the Company developed high-efficiency ultra-quiet bread-shaped hub motors and high-efficiency salient pole motors; the former uses innovative technologies and processes such as patented bread-shaped magnetic steel designs, unequal air gap designs, and unique adhesive formulas to achieve high efficiency, high quality, and low noise. The latter's design philosophy and processes draw from the characteristics of the automotive industry's reluctance-assisted permanent magnet synchronous motors, using fewer pole pairs to reduce iron losses in the motor, enhancing high-speed demagnetization capability to reduce demagnetizing currents, thereby significantly improving energy efficiency while considering the reluctance torque produced by the salient pole effect, which enhances the motor's maximum output torque, improving vehicle power performance and riding experience. The Company's in-house developed motors have been produced internally and applied in its products, with nearly 4 million units used during the reporting period. In terms of controllers, the Company developed the Azure Controller, utilizing AUTOSAR software architecture, torque control strategy architecture, and an integrated three-in-one domain control system (MCU & VCU & DCDC), offering multiple driving modes to meet users' needs for various usage scenarios. The Azure Controller has been mass-produced and applied to the Company’s products. Regarding batteries, the Company actively monitored the development of cutting-edge technologies in the battery sector, continuously advancing the R&D of sodium battery applications, making significant progress during the reporting period. Additionally, the Company maintained R&D

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investments in high-gloss color ABS and cover lighting processes, new intelligent sensors, environmentally friendly water-based coatings, and other fields.

In terms of core technological research in the industry, the Company is committed to building an all-encompassing smart ecosystem of "Human-Vehicle-Phone-Helmet-APP-Cloud”, through an integrated ecosystem covering software application layer APPs, cloud platforms, smart central controls, and smart helmets, equipped with light, medium, or full smart technology platforms to achieve varying degrees of interaction and connectivity among the vehicle and mobile phone, user, Aima cloud, and backend data. On the vehicle end, advanced electronic and electrical architectures are used with integrated instruments as the smart central control, optimizing performance under various road conditions, enhancing riding safety and comfort. On the APP end, it facilitates vehicle access and control of smart features. On the human end, through peripherals like Aima smart helmets, it achieves interconnectivity between the vehicle, mobile phone, and user, allowing voice control over phone calls, music playback, map navigation, and one-touch SOS through wearing the Aima smart helmet. On the cloud end, the Aima OS (Operating System) middleware and backend provide real-time data services to users. The smart features loaded on the Company’s products are responsive and precise, earning consumer recognition, and during the reporting period, sales of smart models increased significantly.

(V) Improvement of productivity

During the reporting period, the Company's manufacturing system focused on improving the rapid scalability of new products, ensuring manufacturing quality, and cost reduction and efficiency improvement, which is conducive to enhancing the Company's overall manufacturing capabilities to better implement its business strategy within the manufacturing system. The implementation of the Integrated Product Development (IPD) process in the manufacturing system involved deep participation in the new product design and development process, with manufacturability and product consistency as the main criteria for participating in the data review and engineering prototype review for new product development. The supporting production preparation work was advanced, including capacity matching, identification of common components and initiating the tooling in advance and material preparation based on new product plans, enhancing the Company's ability to quickly scale up new products. The Company continued to advance the automation of the production process, during the reporting period, automation projects were launched at the production bases as needed, including automated welding of handlebars, robotic powder coating of frames, robotic painting of plastic parts, automatic locking equipment for disc brakes, automatic loading and unloading for tire removal machines, and automatic scanning of finished goods in and out of storage, which help improve production efficiency and ensure product quality. In terms of informatization, during the reporting period the comprehensive use of informatized production reports at all production bases was prioritized, covering attendance patterns, team settings, efficiency monitoring, production dashboards, and other information. By automatically collecting, summarizing, and presenting data on people, machines, materials, methods, and information throughout the production process, the Company achieved visibility

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across the entire manufacturing chain, early warning of anomalies, and guidance for improvements at the production site, ensuring the consistency and stability of high-quality product output. The Company continued to advance its capability to produce core components in-house, aiming to enhance the quality and supply speed of core components while reducing costs. During the reporting period, in-house developed and produced motors were applied in complete vehicle manufacturing, meanwhile, efforts were made to layout the production of essential components such as electronic controls, handlebars, and front forks.

During the reporting period, the Company continued to advance the construction of new bases, creating factories that are automated in production, intelligent in logistics, and informatized in management, which are also energy-efficient and environmentally friendly. The Company has also been focusing on promoting the development of industrial clusters around new bases. In-depth research into the consumption needs and business environments of major overseas markets led to the initiation of preparations for establishing a production base in Southeast Asia, accelerating the brand's international expansion and advancing the localization of production.

(VI) Improvement of operation capacity

During the reporting period, the Company conducted an in-depth review of the entire business process and industrial value chain, incorporated advanced business concepts and methodologies, and established a product strategy of "scaling up upon market launch for strategic products", which is supported by the IPMS process (Integrated Product Marketing & Sales). The core of this approach is to integrate the Integrated Product Development (IPD) process with post-product launch sales and service processes. A sustainable and replicable operational capability for product management has been cultivated, characterized by direct access from headquarters to distributor stores, deep coordination among various functions within the Company, and a dual focus on product sales and brand building. Guided by "user demand insight and satisfaction”, this approach employs an investment philosophy to guide the entire lifecycle management of products, maximizing the investment value.

During the reporting period, the Company actively practiced "improving quality, consolidating quantity, and reducing costs”, with a focus on supply assurance to continuously build a supply chain system that is stable in quality and highly cost-effective. In terms of quality improvement, it implemented a supplier grading management system based on the principle of survival of the fittest, with supply quality as the primary indicator for supplier performance ratings, establishing rigidity in quality; the Company continued to advance supplier empowerment programs (including supplier monthly quality meetings, benchmark learning), special quality meetings with key suppliers and other quality initiatives, aiming to continuously strengthen the quality foundation of its supply chain. Regarding quantity consolidation, the Company focused externally on excellent supplier resources, increased the supply proportion of highly rated suppliers, and continued to extend the supply chain vertically, integrating suppliers' raw material demands and organizing centralized procurement; internally, through platformization of components,

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SKU simplification, and material standardization, it reduced the variety of components to increase the purchase volume of single categories, thereby enhancing the efficiency of the supply chain; consolidating quantity also helps ensure incoming material quality and reduce purchasing costs. In terms of cost reduction, in addition to consolidation-driven cost reduction, the Company also focused on R&D cost reduction and guidance for cost reduction, providing technical and process improvement support to suppliers based on their actual conditions, reducing supplier resource wastage while ensuring quality, and enhancing supplier production efficiency. Simultaneously, the Company continuously pushed forward the localization of the supply chain, on one hand, it encouraged excellent suppliers to establish factories, offices, or third-party transfer warehouses at or near the Company's existing production bases to shorten the supply radius; on the other hand, it planned for localized supplier resources in advance when planning new bases. localization helps reduce the transportation costs of components and better ensures supply capability.

During the reporting period, the Company continued to advance the construction of the smart logistics system. In terms of vehicle sales logistics, it has fully taken over the transportation business of finished vehicles from the main production bases; the shipping efficiency improved from the previous management standard of T (order completion day) +3 to T+2, with a significant increase in the proportion of T+1 shipments, effectively enhancing the inventory management efficiency. Based on the shipping mileage of orders, it established standardized delivery lead time, effectively managing the product delivery process and supporting dealers in reasonably arranging their inventory structure. Regarding component transportation, it gradually arranged component procurement logistics operations within the three major industrial clusters in China namely Tianjin, Wuxi, and Taizhou, the system has taken over the remote transportation of major components. Under the centralized purchasing model, transportation demands were integrated and the placement and storage of components were pre-organized according to the corresponding parts requirements of the production plans, enabling direct use in production upon arrival without the need for post-arrival inventory sorting, significantly improving the efficiency of component warehouse unloading and storage, and greatly enhancing the efficiency of component inventory management. Additionally, the Company implemented a comprehensive set of logistics delivery standards, enforcing quality management throughout the entire delivery process to ensure the quality of deliveries.

II. Industry Overview of the Company During the Reporting Period

1. Industry classification

According to the “Industrial Classification for National Economic Activities”, the industry in which the Company operates is "C377-C3770 Moped Manufacture" (Group and Class) of "C37 Manufacture of Railway, Ship, Aerospace and Other Transport Equipment” (Division).

2. Industry development

The first electric two-wheeler in China debuted in 1995. After rapid development and regulatory exploration for more than 20 years, electric two-wheelers have evolved into the

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important transportation and production tools of short-distance travel for Chinese residents.

Before the implementation of the "New National Standard" in 2019, the industry had already established a complete industrial chain system and a broad market base. The social stock of electric bicycles had exceeded 250 million units, with an annual production and sales volume maintaining around 35 million units for many years, characterized by fierce market competition and low industry concentration.

The 2019 "New National Standard" regulated the research and development, production, sales, circulation, and usage of electric bicycles, presenting the industry with an opportunity for regulated development. At the same time, various localities set different transition periods for the implementation of the "New National Standard", which is expected to end by the close of 2024. After the transition period, models that do not meet the requirements of the "New National Standard" will not be allowed to run on roads., and the resultant replacement demand will create new growth opportunities in market capacity. Underpinned by regulated development and replacement demand during the transition period, the industry has once again entered a period of rapid development. In this phase, market share tends to concentrate towards large-scale enterprises, industry giants, and branded companies, accelerating the optimization of industry order and continuously increasing market concentration.

Against the backdrop of economic transformation, information technology, and dual-carbon policies, the consumer market for electric two-wheelers is gradually exhibiting three trends: consumption upgrading and personalized consumer demand, raising consumer environmental awareness, and the pursuit of convenience and intelligence by consumers. Additionally, due to increasing demand in the international market, the electric two-wheeler industry, which originated and thrived locally, is moving further abroad, accelerating its path to internationalization. Therefore, the future of the electric two-wheeler industry will likely trend towards differentiation, high-end products, intelligence, and internationalization. With in-depth consumer insights and customized product development, continuous application of internet technology, smart technology, and new energy technology in the electric two-wheeler industry, along with the ongoing development and expansion of global business, these factors will become the main drivers of industry development after the end of the "New National Standard" transition period, propelling the industry into a new phase of rapid growth.

Table Development stages of electric two-wheeler industry

Industry development stage	Period	Development characteristics	Industry features and structure
Generation and rapid development	From 1995 to “New National Standard” taking effect	Rapid development from zero	Many manufacturers, serious product homogenization and fragmented market share
Transition to orderly	From “New National Standard”	Increase in market capacity	Numerous small enterprises exit the competition, market

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development	taking effect to expiry of transition period	Improved regulatory framework Standardization of industry order Increased market concentration:	share of leading enterprises increases, resources concentrate towards leading enterprises
Future and Transformational Development	From expiry of transition period of “New National Standard” onwards	Market shifts from primarily domestic to equally prioritizing both domestic and international markets Industry transitions from manufacturing and selling vehicles to providing user-based services	Industry development characterized by differentiation, high-end, intelligence, and internationalization

III. Description of The Company’s Businesses in the Reporting Period

(I) Main business of the Company

The Company was established in 1999 and entered the electric two-wheeler industry in 2004, becoming one of the earliest electric two-wheeler manufacturers in China. The main business includes the research, development, manufacturing, and sales of electric bicycle, electric moped and electric motorcycle. Over the years, the Company has continuously enhanced its core competitiveness, becoming one of the leading enterprises in the electric two-wheeler industry.

(II) Major products of the Company

1. Electric two-wheelers

Classification	Electric bicycle	Electric two-wheel motorcycle	Electric two-wheel motorcycle
		Electric moped	Electric motorcycle
Nature	Non-motor vehicle	Motor vehicle	Motor vehicle
Pedal riding ability	Mandatory	None	None
Maximum Speed	≤25km/h	≤50km/h	＞50km/h
Whole mass	Shall not exceed 55kg	Can exceed 55kg	Can exceed 55kg
Battery Voltage	≤48V	No restriction	No restriction
Production qualification	None	Required	Required
Product qualification	3C certification	3C Certification and inclusion in the Ministry of Industry and Information Technology (MIIT) directory	3C Certification and inclusion in the MIIT directory
Riding qualification	None	Motorcycle driver’s license	Motorcycle driver’s license

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2. Electric tricycle

The Company's electric tricycle products mainly include leisure electric tricycles, as well as canopy electric tricycles and freight electric tricycles. The Company's leisure electric tricycle products not only meet the diverse travel needs of consumers across various scenarios but also further showcase a fashionable brand proposition through their design and color schemes. In terms of functionality and configuration, they are better tailored to the leisure travel and school commute needs of consumer groups such as mothers and the middle-aged and elderly, garnering strong consumer appreciation. The canopy electric tricycles adopt automotive-grade manufacturing processes in vehicle design and production, offering functionality and style, further satisfying consumers' needs for comfort and travel under various weather conditions. The freight electric tricycles, while being durable, incorporate stylish elements to meet the diverse needs of consumers across various application scenarios.

In addition to the main products of electric two-wheelers and tricycles, the Company also produces low-speed electric four-wheelers, bicycles, electric-assisted bicycles and other products. The Company is also committed to the development of new products and the exploration of new businesses, focusing on the green short-distance travel ecosystem.

(III) Operation model

The Company centers its business around users, continuously drives change and transformation, and implements category innovation and technological innovation, striving to become a platform-based technology company that provides green and convenient travel solutions. In recent years, the Company has comprehensively upgraded its product lifecycle management system through information technology and advanced management techniques, building an efficient digital product implementation chain, product delivery chain, and user service chain, thereby enhancing the Company's overall strength.

In the product design and development segment, the Company sets up various R&D functional departments oriented towards user needs. The Product Planning Center is responsible for insight into consumer demands and market research, delivering product concepts; the Technology R&D Headquarters comprises a Product Management Center and an Engineering Technology Development Center, the former transforms product concepts into product strategies and manages products throughout their lifecycle to ensure competitiveness and achieve business goals; The latter is the technical implementer of product development, supporting the commercial success of products, and simultaneously responsible for the Company's technological capacity building. In recent years, the Company has formed specialized R&D teams and established an Electrical Development Center under the Engineering Technology Development Center, engaging in the R&D and verification of core and cutting-edge technologies in the industry such as triple-electric systems, drives the implementation of R&D projects such as the upgrading and application of intelligent technology, consumer-end software for vehicle networking, and networked intelligent hardware.

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In the component procurement segment, the Company strives to build an integrated, adaptable supply chain management system. It sets up a Supply Chain Management Center and a Business Unit Procurement Center, to select high-quality suppliers and establish close and friendly long-term supply relationships.

In manufacturing segment, the Company possesses strong comprehensive manufacturing and process design capabilities. Currently, it has eight production bases located in Tianjin, Henan, Guangdong, Guangxi, Jiangsu, Chongqing, Zhejiang, and Shandong, all of which have successively obtained the "World Manufacturer Identifier" certificate from the National Development and Reform Commission. New bases in Chongqing, Taizhou, Lishui, and Guigang are under construction, and new bases in Southeast Asia are in preparation. These new bases are planned with high starting points, with automation and industrial cluster construction as standard configurations, which are conducive to further enhancing its comprehensive production capacity. Building upon its vehicle manufacturing capabilities, the Company also possesses capabilities for producing and/or developing several key components, including chassis, spray-painted parts, motors, and electronic controls. Additionally, it has established its presence in fields such as batteries, handlebars, and front forks.

In the sales segment, the Company carries out marketing based on the distribution model, under which, it insists on the value integration of factory and dealer. Dealers are not only direct customers of the Company but also important windows through which the Company sells products to consumers, provides services, and showcases its brand image, making them important partners of the Company. The Company has established a comprehensive dealer management system, empowering dealers through operational support, training outputs, special services from retail managers, precise push of new retail order information and others. Sales to dealers generally follow a payment-before-delivery model. In recent years, the Company has actively explored innovative management model for dealers and channels, such as implementing the operator model, wherein the Company directly manages its retail outlets. Next, the Company plans to pilot equity cooperation with dealers to enhance the motivation effects on dealers.

In the logistics segment, the Company has set up a dedicated smart logistics company, focusing on improving delivery efficiency, logistics quality, and service quality. The logistics company has completed the integration of logistics resources for the Company's seven major production bases and three major component industry clusters, undertaking most of the Company's vehicle transportation and component transportation services, using self-developed intelligent systems to link the main value chain segments including supply, manufacturing, sales, and service. The Company connects procurement, manufacturing, and marketing orders through its logistics management system, establishing end-to-end value chain management from suppliers to factories to customers. Leveraging its primary production bases and the component industry clusters, the Company constructs a domestic logistics network layout to further enhance its core competitiveness.

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In the service segment, to meet the changing needs of users transitioning from the 'era of purchasing vehicles' to the 'era of using vehicles', the Company has established a dedicated service company, committed to creating a full lifecycle service system including sales, maintenance, vehicle replacement, inspection, leasing, and battery swapping. Relying on distribution channels, it sets up standardized service stores, providing users with efficient and high-quality services.

In the shared operation business, the Company actively explores and expands business and operating models related to the green short-to-medium distance travel ecosystem. By leveraging its strengths and resources in integrated design and manufacturing, information systems, channel networks, and operational platforms, the Company has launched the deployment and operation of shared electric bicycles, including closed and open application scenarios.

IV. Analysis on Core Competitive Advantages in the Reporting Period

√Applicable Not applicable

(I) Precision product development and innovation positioned as "technology and fashion"

The Company upholds "Technology and Fashion" as its brand proposition, considering technological advancement and product innovation as the main means to enhance its core competitiveness and achieve long-term development.

In terms of product development, centering around user demands and prioritizing the commercial value of products as the primary evaluation criterion, the Company has established an integrated product development process with strategic individual products or product lines as project units. This process involves close collaboration and mutual influence among planning, design, R&D, procurement, production, quality management, and marketing functions. It allows for precise assessment of user demands and product positioning, and efficiently and accurately completes product realization, delivering models that precisely meet the target user group's needs under the predefined quality, time, and cost constraints. The Company's independently developed innovative models have won several prestigious awards, including the "Annual Innovative Model" and "Annual Fashion Model" from the China Motorcycle Annual Model Selection Committee, and the Gold MUSE Award from the International Awards Associate (IAA) in the United States.

In terms of technology and craftsmanship, the Company has consistently increased its investment in independent R&D of foundational, cutting-edge, and engineering technologies within the industry. It has been continuously introducing new technologies and materials, improving existing production technologies and processes, thereby enhancing product performance and added value. This strategy serves as the cornerstone for the Company to maintain its leading technological and product capabilities. Over the years, the Company has developed a highly professional and influential R&D team within the industry. As of December 31, 2023, the Company had over 1,900 patents, and several of its subsidiaries have been certified as high-tech enterprises.

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Regarding fashionable design, the Company has always been a trendsetter in the industry in terms of vehicle body styling, color coordination, and paint texture. It possesses diverse capabilities for fashion design innovation, offering a wide variety of models that cater to different consumer groups' pursuit of fashionable lifestyles and personal expression. Notably, the Company excels in fashion color innovation; it has established an industry-leading electric two-wheeler popular color R&D base in collaboration with the authoritative Chinese Fashion Color Association, achieving various original design results. It also has collaborated with renowned international color institutions to study industry color trends and analyze the color stories of its products.

Additionally, the Company actively assumes industry responsibilities and leverages its advantages in R&D and technology to promote the standardization of industry technology. It has either led or participated in drafting more than thirty national and industry standards, including Technical Requirements of “Charger in Electric Bicycle”, “Motor Performance Testing Methods for Electric Motorcycle and Electric Moped”, “Safety Requirements of Electric Motorcycle and Electric Moped” and "Test Methods for Energy Consumption Rate and Range of Electric Motorcycles under User Conditions”. And it has been honored with the "Advanced Unit in Industry Standardization Work" award by the National Bicycle Standardization Technical Committee's Electric Bicycle Subcommittee.

(II) Advanced Quality Control System and Solid Production Technology, Ensuring Stable, High-Quality Product Output

The Company has always regarded technological research and development and product quality as the cornerstone, continuously advancing and optimizing the entire quality control system. Utilizing advanced product development processes, the Company identifies quality issues and optimizes designs through virtual simulations and data modeling during the design phase. In the product development stage, the Company implements a closed-loop quality management system for new products, conducting strict reviews of each quality checkpoint according to its standards, and strictly prohibits any models with issues from entering the mass production stage. The Company enhances review standards and revises and replay techniques to improve R&D efficiency. In the component configuration stage, the Company selects leading brand suppliers for cooperation, and conducts reasonable supervision of supplier production processes through incoming material inspection; through providing technical consultation and management assistance, the Company continuously improves the quality management levels of its suppliers. In terms of manufacturing, the Company implements comprehensive, real-time dynamic quality management throughout the entire process; it also establishes a market quality management system, including mechanisms for early warning of market feedback information and auditing of market quality issues, which allows for precise and rapid feedback and improvement of quality issues. For quality inspections, the Company employs a "five-inspection system" consisting of initial inspection, self-inspection, mutual inspection, spot inspection, and special inspection on complete vehicles; it continuously enhances the self-testing capabilities of components and the testing capabilities during the production process, implementing a combination of preventive and inspection measures.

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The Company's production technology is robust, in frame production, it has introduced advanced CNC pipe bending machines, fully automatic CNC multi-functional laser cutting equipment, and welding robots, enhancing production efficiency, frame cutting precision, welding quality, and product quality. In terms of painting technology, the Company has established a dust-free painting workshop; and utilizing top-notch electrophoretic technology and high-quality paint materials, and adopting internal and external double-layer painting, the frame structure can be effectively covered, enhancing its resistance to aging, corrosion, and other properties while ensuring product aesthetics. In terms of assembly processes, the Company has been utilizing fully automatic visual press-fit machines that employ vision recognition technology to collect data on the first procedure online, automatically recognizing the frame number to be used as a data carrier for onsite circulation and traceability. At critical processes for motors and controllers, data collection points and information display points have been established to guide correct on-site production operations strictly following the 3C control standards. After complete vehicles pass the final inspection points, barcode information automatically collected by industrial barcode readers is pushed to the certificate printing station, triggering the automatic printing of certificates of conformity, consistency certificates, and external box codes, reducing human intervention and enhancing on-site operational capabilities.

Drawing inspiration from product development testing models in the automotive industry, the Company has created a testing process that highly aligns with its product development flow and manufacturing system, conducting comprehensive testing on components, systems, and complete vehicles to ensure the stable output of product quality. The Company has established well-equipped testing departments at various production bases, possessing over 400 types of testing instruments and equipment, with over 40 technicians who have undergone ISO/IEC professional training and obtained certifications. Nine specialized departments have been set up, including a geometrical dimension testing room, complete vehicle performance test lab, road durability room, environmental test lab, materials analysis room, electronics and electrical test lab, mechanical performance test lab, and core technology test labs for "four electrics" (battery, motor, electronic control, and charger) and an intelligent testing lab. the Company has the capabilities to test electric two-wheelers, three-wheelers, and some low-speed electric four-wheelers, and Testing Technology Center of Aima Technology has received an accreditation certificate from the China National Accreditation Service for Conformity Assessment (CNAS).

The Company’s products have been sold in the market for years, continuously receiving authoritative recognition and honors for product quality, including the "National Quality Integrity Benchmark Enterprise" awarded by the China Quality Inspection Association and the "AAA Grade Enterprise Credit Rating Certificate" awarded by the China Urban Transportation Association.

(III) Broad Coverage and High-Efficiency Sales Channel System

In terms of offline channels, the Company actively implements a consumer demand oriented marketing strategy. Seizing the development opportunities of the electric two-wheeler market and leveraging the brand influence, the Company has vigorously

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expanded its distribution channels, forming a nationwide offline sales network that achieves economies of scale and rapid expansion. Adhering to the value integration of manufacturer and dealer, the Company has continuously refined its distributor management system and framework, attracting highly market-shared and influential distributors in district/county markets to establish long-term strategic partnerships. Through years of ongoing accumulation, it has built a flat marketing channel system based on districts/counties, achieving broad coverage and high-efficiency relative competitive advantages.

In terms of online channels, the Company has developed a multi-platform online channel system, including major e-commerce platforms like Tmall, JD.com, Douyin, Xiaohongshu, and Kuaishou. Leveraging a digital empowerment platform and a nationwide service network, the Company provides comprehensive and convenient shopping experiences for online consumers at all times. Additionally, in coordination with its marketing measures, online channels play a critical role in driving traffic and acquiring new customers.

(IV) High-Quality, High-Efficiency, and Broad-Coverage Service Network

After years of operation and accumulation, the Company has established a comprehensive service network system, comprising nationwide service outlets, an efficient work order dispatch system, industry-leading service timeliness and standards, an efficient spare parts storage and distribution system, a performance evaluation system quantified by service satisfaction, and a professional service team with clearly defined roles. The high-quality and efficient service is well-received by consumers and has also garnered high recognition from authoritative institutions, the National Commodity After-Sales Service Rating Certification Review Committee has awarded the Company a five-star rating for its technical support and repair services”, and the China Customer Contact Center awarded it the "Customer Word of Mouth Award”. Additionally, the Company participated in drafting industry self-regulatory norms such as "After-sales Service Specifications for Electric Bicycles" and led the drafting of "After-sales Service Timeliness Specifications for Electric Bicycles", leading the standardized development of services in the industry.

(V) Youthful Branding with Leading Industry Influence

With "Technology and Fashion" as its brand proposition, based on fashionable, tech-oriented, and high-quality products, the Company conducts deep-seated brand building nationwide. Over years of operation, accumulation, and interaction, the Aima brand has gained widespread recognition and a high reputation, leading in brand influence.

In recent years, the Company has taken a series of brand actions to align the Aima brand with the needs, values, and lifestyles of young consumers, creating a brand image and experience closely connected with them. To meet the consumption demands of young groups for fashionable, innovative products, the Company has launched various trendy models and enhanced the intelligent functions of products. It has refreshed the brand in line with young people’s aesthetic and taste preferences, including but not limited to collaborating with the internationally renowned designer Rob Janoff (designer of the Apple

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logo) for a high-end upgrade of the brand logo, launching the brand slogan "Fashionable Aima, Comfortable Travel”, upgrading terminal stores with a stylish touch and opening women-exclusive fashion stores, and working with well-known international color institutions for color empowerment of products. The Company respects the popular culture beloved by young groups and has planed brand and marketing activities around this theme: sponsoring popular variety shows, signing young idols as brand fashion ambassadors, collaborating with fashion-influential magazines for big shoots of Aima models, and conducting cross-brand collaborations with popular IPs, hot games, and well-known brands, creating an Aima promotional matrix on social media platforms favored by young users like Bilibili and Xiaohongshu. Interactive brand activities have been conducted not only to motivate young consumer groups to participate in promoting the Aima brand but also to integrate the Aima brand into the lifestyle of young consumers: organizing the Aima Star-Chasing Music Festival, organizing events related to esports and anime in universities, holding DIY creative contests on campuses, etc. The Company has been implementing the concept of environmental protection and sustainable development, demonstrating its brand responsibility and gaining the approval and emotional resonance of young people for collective efforts to protect our planet.

The qualifications and honors obtained by the Company in brand building include China Well-known Trademark certification, topping the China Brand Power Index (C-BPI) for electric bicycles for more than ten consecutive years published by Chnbrand. In recent years, the Company's efforts in youthful branding have been remarkably successful, gaining widespread recognition and winning several awards for fashion brand innovation, such as the Fashion Leadership Enterprise Award and the Fashion Brand Innovation Award at the 2023 International Science and Innovation Festival, multiple integrated marketing awards at the 30th China International Advertising Festival, and several awards at the 13th and 14th Tiger Roaring Festival for its innovative marketing solutions.

(VI) Lean Management for Cost Advantages

The Company has established an end-to-end cost management system, fully tapping into cost-saving and efficiency-enhancing opportunities across all aspects of the business operations, including research, supply, manufacturing, sales, and services. It has been executing systematic, detailed management across all business processes and extending this approach into the vertical industrial chain to achieve comprehensive value enhancement. By implementing a product-focused strategy, the Company has successfully reduced product SKUs and resource usage through precise development, thereby boosting the return on investment for vehicle models and the efficiency of individual products. Utilizing digital tools, the Company enables information sharing throughout the industrial chain, accurately assesses customer demands and market trends to improve the success rate of product development and the accuracy of sales planning, which optimizes resource allocation and minimizes the waste of resources caused by unsold inventory. The Company consolidates procurement volumes through integrated production planning and centralized procurement, while simultaneously enhancing the procurement volume of standard and common parts through component platformization and modularization, thus elevating supply chain efficiency through scaling

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and improving quality while reducing costs. It guides the entire industry chain to implement automation and informatization upgrades, apply new materials, new processes, or operate new systems, for enhancing the production efficiency of the entire industry chain. An efficient intelligent logistics platform has been established, integrating resources and effectively reducing the transportation costs of the Company’s complete vehicles and components procurement. Through full-process closed-loop lean management in its operations, the Company has developed a strong competitive advantage in terms of cost.

(VII) Digital and smart management system with full empowerment and efficiency improvement

The Company has implemented the "361 Digitalization Project" strategy, leading the Company's digital transformation and constructing a digital management system that highly aligns with its organizational structure and business processes, thereby fully empowering all business areas. The Company has developed a digital marketing system centered around retail and covering the entire marketing workflow, achieving seamless integration from the enterprise marketing system to the dealer store terminals, facilitating comprehensive online operations for dealers, fostering efficient collaboration. Leveraging data, models, and algorithms, the Company has enhanced predictive capabilities, guiding dealer ordering plans and internal production schedules, significantly improving efficiency. Additionally, the Company has established an Aima-owned traffic pool, advancing a user-centric operational framework. With planning as a guiding principle and leveraging data insights, the Company has comprehensively been analyzing business execution, driving integrated research, production, supply, marketing, and services. Through user analysis and research, precise planning, forward development, lean manufacturing, and integrated logistics, customer needs could be met promptly. By refining operations, integrating business and finance, and controlling budgets comprehensively, the Company has established core indicators and performance systems across all areas, enabling timely and efficient operational reviews and data-driven decision-making, reducing costs and enhancing efficiency, which marks the preliminary realization of the Company's global informatization, operational digitization, execution automation, and intelligent decision-making.

(VIII) Talent Team with High Loyalty and Professionalism

Upholding the talent management philosophy of "showing respect for our staff, improving their competence and making them happy”, the Company has established a human resources management system centered on talent development and the enhancement of human capital. This system includes an attractive compensation and incentive scheme, multifaceted career advancement pathways, a professional talent training system, comprehensive employee welfare programs, and an inclusive and creative corporate culture, making the Company a platform for the development of motivated individuals. Focused on the talent experience, it has been continuously enhancing employees' happiness, sense of belonging, professional skills, and career ethics, creating a team characterized by high loyalty and professionalism.

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Adhering to the philosophy of "effort and benefit from the same source”, based on medium-to long-term strategic objectives and anchored on value creation, the Company has set performance evaluation indicators, value distribution mechanisms, promotion systems, and training frameworks that align with value creation, strengthening the role of organizational development and personal growth in performance assessments and value distribution. It has been continually refining the short term, medium-and-long term incentive models and honor systems for employees at all levels. For core management, technical, and business talents, it has established a competitive, scientifically rational compensation management system and incentive measures, including multi-level, normalized stock incentive mechanisms, maximally aligning the interests of shareholders, the Company, and the core team. Currently, the restricted stock incentive plan for 2021 has completed the release of restrictions for the initial phase, and the stock incentive efforts for 2023 and 2024 are proceeding smoothly.

V. Major Operation Situation During the Reporting Period

In the reporting period, the Company recorded revenue of RMB 21,036.1209 million, representing a year-on-year increase of 1.12%, the net profit attributable to shareholders of the listed company of RMB 1,881.1158 million, representing a year-on-year increase of 0.41%, and the net profit deducting non-recurring gains or losses attributable to shareholders of the listed company of RMB 1,764.4680 million, representing a year-on-year decrease of 1.83%.

(I) Analysis on principal business

1. Analysis table of changes in profit and loss statement and cash flow statement accounts

Unit: Yuan (RMB)

Items	Amount of the currentyear	Amount of lastyear	Change(%)
Revenue	21,036,120,862.29	20,802,212,994.46	1.12
Cost of sales	17,562,865,946.73	17,398,502,632.36	0.94
Sellingexpenses	641,208,788.04	587,315,848.35	9.18
Administrative expenses	474,276,849.74	432,777,222.67	9.59
Financial expenses	-410,276,786.83	-382,697,297.50	N/A
R&D expenses	589,467,221.52	506,685,038.01	16.34
Net cash flows from operating activities	1,864,276,233.90	5,051,454,116.94	-63.09
Net cash flows from investing activities	-1,910,192,713.51	-2,178,319,161.48	N/A
Net cash flows from financing activities	544,548,901.86	-182,243,777.55	N/A

Reasons for the changes in revenue: This was primarily due to the Company's focus on its core business and continuous exploitation of its brand advantages, which led to a slight increase in operational performance.

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Reasons for the changes in cost of sales: The increase was mainly attributed to changes in the scale of sales, which grew in tandem.

Reasons for the changes in selling expenses: This was primarily due to market competition, prompting the Company to expand its sales team and increase marketing and promotional investments.

Reasons for the changes in administrative expenses: The increase was mainly due to higher expenditures on professional consulting services and an increase in the amortization of information systems during the reporting period.

Reasons for the changes in financial expenses: This was primarily due to an increase in the average scale of funds managed by the Company during the reporting period, resulting in increased interest income.

Reasons for the changes in R&D expenses: This was mainly due to the expansion of the R&D team, increased investment in R&D, and higher depreciation and amortization of R&D equipment.

Reasons for the changes in net cash flows from operating activities: The change was mainly due to the effects of settlement cycles and methods, with payments for purchases from the previous year increasing year-on-year during the reporting period.

Reasons for the changes in net cash flows from investing activities: The change was primarily due to a year-on-year decrease in the net amount of low-risk financial products purchased and redeemed during the reporting period. Additionally, there was an increase in the purchase of land for the construction of production bases in Taizhou, Lishui, and Chongqing, as well as increased investment in the construction of these production bases.

Reasons for the changes in net cash flows from financing activities: The change was primarily due to the Company raising funds through the issuance of convertible bonds during the reporting period. There was also an increase in cash dividend payouts under the equity distribution for the fiscal year 2022 and the first half of 2023. Furthermore, the Company repurchased shares using cash as consideration through centralized competitive bidding.

Detailed description of major changes of the Company in business type, profit makeup or profit source

Applicable √Not applicable

2. Analysis on revenue and cost of sales

√Applicable Not applicable

In the reporting period, the Company recorded revenue of RMB 21,036.1209 million, representing a year-on-year increase of 1.12%, and cost of sales of RMB 17,562.8659 million, representing a year-on-year increase of 0.94%, as the Company achieved performance growth by focusing on its core business, and continually leveraging its brand advantages.

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(1) Principle operating activities by industry, product, region and sales model

Unit: Yuan (RMB)

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Principal operating activities by industry
By industry	Revenue	Cost of sales	Gross profit margin (%)	Revenue increased/ decreased yoy (%)	Cost of sales increased/ decreased yoy (%)	Gross profit margin increased/ decreased yoy (%)
Railway, ship, aerospace and other transport equipment manufacture industries	20,873,8 52,542.7 7	17,455,112 ,116.87	16.38	1.01	0.82	Increased by 0.16 percentage points
Principal operating activities by product
By Product	Revenue	Cost of sales	Gross profit margin (%)	Revenue increased/ decreased yoy (%)	Cost of sales increased/ decreased yoy (%)	Gross profit margin increased/ decreased yoy (%)
Electric bicycles	12,845,0 51,545.5 1	10,716,325 ,781.16	16.57	5.85	6.44	Decreased by 0.46 percentage points
Electric two-wheel motorcycles	5,805,93 9,521.09	4,949,033, 049.25	14.76	-18.72	-18.38	Decreased by 0.35 percentage points
Electric tricycles	1,434,64 2,114.17	1,124,810, 467.69	21.6	79.9	69.12	Increased by 5 percentagepoints
Sale of parts	647,500, 389.13	546,135,52 3.69	15.65	10.44	6.59	Increased by 3.05 percentagepoints
Others	140,718, 972.87	118,807,29 5.08	15.57	4,288.41	4,006.55	/
Principal operating activities by region
By region	Revenue	Cost of sales	Gross profit margin (%)	Revenue increased/ decreased yoy (%)	Cost of sales increased/ decreased yoy (%)	Gross profit margin increased/ decreased yoy (%)
Northeast China	482,866, 250.03	402,386,11 9.43	16.67	-6.64	-8.61	Increased by 1.8 percentagepoints
East China	7,540,38 5,944.82	6,272,969, 613.19	16.81	-9.66	-9.3	Decreased by 0.33 percentagepoints
North China	2,419,85 5,674.03	2,053,560, 786.87	15.14	-10.74	-10.55	Decreased by 0.17 percentagepoints

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Central China	3,448,51 6,766.05	2,865,686, 574.69	16.9	15.66	13.25	Increased by 1.77 percentagepoints
South China	3,322,44 1,009.23	2,836,707, 004.72	14.62	-4.74	-2.55	Decreased by 1.92 percentagepoints
Southwest China	1,890,90 4,494.15	1,559,442, 029.99	17.53	27.75	23.6	Increased by 2.77 percentagepoints
Northwest China	1,476,37 0,151.18	1,229,102, 090.86	16.75	83.15	81.4	Increased by 0.81 percentagepoints
Overseas	226,073, 213.37	181,322,39 4.70	19.79	2.21	3.85	Decreased by 1.27 percentagepoints
Undefined region	66,439,0 39.91	53,935,502 .42	18.84	-41.43	-48.67	Increased by 11.45 percentagepoints
Principal operating activities by sales mode
Sales model	Revenue	Cost of sales	Gross profit margin (%)	Change of revenue compared with last year(%)	Change of cost of sales compared with last year (%)	Change of gross profit margin compared with last year (%)
Distribution	20,193,4 71,412.4 7	16,882,068 ,262.53	16.4	1.25	1.2	Increased by 0.04 percentage points
Direct sales	680,381, 130.30	573,043,85 4.34	15.78	-5.58	-9.13	Increased by 3.30 percentagepoints

Description of principal operation by industry, product, region, sales model

①Description of revenue and cost of sales of principal operation by industry: During the reporting period, the Company focused on its core business and continuously leveraged its brand advantages, resulting in a slight increase in operational performance.

②Description of principal operation by product: During the reporting period, sales of the Company's main product, electric bicycles, experienced a slight increase; however, sales of electric two-wheel motorcycles declined year-on-year due to market competition and consumer habits. Demand for electric tricycles showed a trend of accelerated growth; due to the acquisition of Geling New Energy, the combined revenue from the other short-distance transportation products significantly increased.

③ Description of principal operation by region: The Company actively expanded its business channels and adjusted the balance of its main domestic sales regions.

④ Description of principal operation by sales model: The Company primarily operates through a dealership model, which has led to a slight increase in operational performance.

(2) Production and Sales Analysis Table

√Applicable Not applicable

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Main product	Unit	Production volume	Sales volume	Inventory	Production volume increased/ decreased yoy (%)	Sales volume increased/ decreased yoy (%)	Inventory increased/ decreased yoy (%)
Electric bicycles	Set	7,529,192	7,603,011	206,420	3.73	5.06	-26.34
Electric two-wheel motorcycles	Set	2,673,154	2,686,623	63,499	-17.86	-17.83	-17.5
Electric tricycles	Set	429,377	426,727	16,974	62.97	63.22	18.5
Others	Set	26,242	25,108	1,803	1,178.85	428.03	29,950.00
Total	Set	10,657,965	10,741,469	288,696	-1.12	-0.29	-22.3

Description of production and sales volumes

During the reporting period, the Company saw a slight year-on-year increase in electric bicycle sales; electric two-wheel motorcycles experienced a decline due to market competition and consumer habits; electric tricycles saw strong market demand and good sales; due to the acquisition of Geling New Energy, there was a significant increase in the combined production, sales, and inventory of the other short-distance transportation products.

The Company maintained stable production and inventory levels and adjusted among different product categories based on market orders.

(3) Performance of major purchasing contracts, major sales contracts

Applicable √Not applicable

(4) Cost Analysis Table

	Unit: Yuan	Unit: Yuan	Unit: Yuan	Unit: Yuan	Unit: Yuan	Unit: Yuan
	By industry
By industry	Cost components	Current period amount	Percentage of total costs this period (%)	Amount in same period last year	Percentag e of total costs last year (%)	Change in amount compared to same period last year(%)
Railway, ship, aerospace and other transport equipment manufacture industries	Direct materials	16,586,622,78 7.13	95.02	16,498,119,09 4.70	95.3	0.54
	Direct labor and manufacture expenses	868,489,329.7 4	4.98	814,505,577.8 7	4.7	6.63

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Total		17,455,112,11 6.87	100	17,312,624,67 2.57	100	0.91
	By product
By product	Cost components	Current period amount	Percentage of total costs this period (%)	Amount in same period last year	Percentag e of total costs last year (%)	Change in amount compared to same period last year(%)
Electric bicycle	Direct materials	10,082,063,22 1.06	57.76	9,482,221,123 .11	54.77	6.33
	Direct labor and manufacture expenses	634,262,560.1 1	3.63	586,195,389.6 3	3.39	8.2
	Sub-total	10,716,325,78 1.17	61.39	10,068,416,51 2.74	58.16	6.44
Electric two-wheel motorcycle	Direct materials	4,817,702,122 .37	27.6	5,888,168,560 .03	34.01	-18.18
	Direct labor and manufacture expenses	131,330,926.8 8	0.75	175,662,117.6 5	1.01	-25.24
	Sub-total	4,949,033,049 .25	28.35	6,063,830,677 .68	35.03	-18.38
Electric tricycle	Direct materials	1,032,422,131 .34	5.91	612,745,321.5 2	3.54	68.49
	Direct labor and manufacture expenses	92,388,336.35	0.53	52,362,529.15	0.3	76.44
	Sub-total	1,124,810,467 .69	6.44	665,107,850.6 7	3.84	69.12
Others	Direct materials	108,299,788.6 7	0.62	2,607,577.70	0.02	4,053.27
	Direct labor and manufacture expenses	10,507,506.40	0.06	285,541.45	0	3,579.85
	Sub-total	118,807,295.0 7	0.68	2,893,119.15	0.02	4,006.55
Sale of parts	Direct materials	546,135,523.6 9	3.14	512,376,512.3 3	2.96	6.59
Total		17,455,112,11 6.87	100	17,312,624,67 2.57	100	0.82

Description of other situations in cost analysis

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During the reporting period, the overall cost structure of the Company's main products remained stable, with no significant changes.

(5) Changes in the scope of consolidation due to changes in shareholdings of major subsidiaries during the reporting period

Applicable √Not applicable

(6) Major changes in the Company's business, products, or services during the reporting period, or any relevant adjustments

Applicable √Not applicable

(7) Major customers and major suppliers

A. Major customers of the Company

√Applicable Not applicable

The total sales amount to the top five customers was RMB 1,399.6965 million, accounting for 6.65% of the annual sales amount. Among the sales to the top five customers, the amount of sales to the related parties was nil, accounting for 0% of the annual sales amount.

In the reporting period, the circumstance that sales ratio to single customer exceeded 50% of total amount, there were new customers in top five customers or it seriously relied on minority customers

Applicable √Not applicable

B. Major suppliers of the Company

√Applicable Not applicable

The total purchasing amount from the top five suppliers was RMB 6,124.1322 million, accounting for 37.45% of the annual purchasing amount. Among the purchase from the top five suppliers, the amount of purchase from the related parties was nil, accounting for 0% of the annual purchases.

In the reporting period, the circumstance that purchasing ratio from single supplier exceeded 50% of total amount, there were new suppliers in top five suppliers or it seriously relied on minority suppliers

Applicable √Not applicable

3. Expenses

√Applicable Not applicable

Expense item	Current year	Prior year	Change (%)	Reasons for changes
Selling expenses	641,208,788.04	587,315,848.35	9.18	Mainly due to market competition, the Company expanded its sales team and increased investment in marketing and promotion.

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Administrative expenses	474,276,849.74	432,777,222.67	9.59	Mainly due to increases in professional consulting service expenses and amortization of information systems duringthe reporting period.
Financial expenses	-410,276,786.83	-382,697,297.50	N/A	Mainly due to the increase in the average fund size managed by the Company during the reporting period, resulting in higher interest income.
R&D expenses	589,467,221.52	506,685,038.01	16.34	Mainly because the Company expanded its R&D team, increased R&D investments, and saw higher depreciation and amortization of R&D equipment

4. R&D expenditure

(1). Table of R&D expenditure

√Applicable Not applicable

4. R&D expenditure (1). Table of R&D expenditure √ApplicableNot applicable	4. R&D expenditure (1). Table of R&D expenditure √ApplicableNot applicable
Unit: Yuan
Research and development input expensed in currentperiod	589,467,221.52
Research and development input capitalized in currentperiod	0
Total of research and development input	589,467,221.52
Ratio of total R&D input in revenue(%)	2.8
Ratio of capitalization of R&D input(%)	0

(2). Table of R&D Personnel

√Applicable Not applicable

√ApplicableNot applicable
Quantityof R&Dpersonnel of the Company	1,089
Ratio of R&Dpersonnel in staff of the Company (%)	11.49
Educational structure of R&D personnel
Categoryof educational structure	People in educational structure
Doctorate	3
Master degree	21
University	429
Junior college	364
High school and below	272
Age structure of R&D personnel
Categoryof age structure	People in age structure
Below 30(exclusive)	346
30-40(inclusive 30, exclusive 40)	545
40-50(inclusive 40, exclusive 50)	159
50-60(inclusive 50, exclusive 60)	39
Above 60	0

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(3). Description of situation

Applicable √Not applicable

(4). Reasons of major change about R&D personnel structure and impact on future development of the Company

Applicable √Not applicable

5. Cash flows

√Applicable Not applicable

Cash flow item	Current year	Prior year	Change (%)	Description of change reasons
Net cash flows from operating activities	1,864,276,233.90	5,051,454,116.94	-63.09	Primarily due to the impact of the settlement cycle and method, payments for last year's procurement increased year-on-year duringthe reporting period.
Net cash flows from investing activities	-1,910,192,713.51	-2,178,319,161.48	N/A	During the reporting period, the decrease in the year-on-year difference in purchasing and redeeming low-risk financial products and increased investments in land and construction for the Taizhou, Lishui, and Chongqing production bases were the primary factors.
Net cash flows from financing activities	544,548,901.86	-182,243,777.55	N/A	During the reporting period, the Company raised funds by issuing convertible bonds, increased cash dividend payouts for the 2022 annual and 2023 interim equity distributions, and repurchased shares through centralized biddingusingcash.

(II) Description of major changes in profit caused by non-principal businesses

Applicable √Not applicable

(III) Analysis on assets and liabilities

√Applicable Not applicable

1. Assets and liabilities

1. Assets and liabilities	1. Assets and liabilities	1. Assets and liabilities	1. Assets and liabilities	1. Assets and liabilities	1. Assets and liabilities	1. Assets and liabilities
Unit: Yuan
Item	Closing balance of current year	Percentage of closing balance of current year in total assets(%)	Closing balance of last year	Percentage of closing balance of last year in total assets (%)	Year- on-ye ar Chan ge (%)	Description of change

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Prepayment s	36,627,8 83.96	0.18	17,554,5 74.37	0.10	108.6 5	The primary reason was the increase in prepaid advertising expenses.
Other receivables	15,687,9 06.27	0.08	28,051,9 20.26	0.15	-44.08	This was mainly due to a decrease in receivables for supplier warranties and an increase in proceeds from the disposal of fixed assets.
Other current assets	119,888, 220.69	0.60	77,023,4 91.16	0.42	55.65	This stemmed from an increase in the input tax credit due to the Company's purchase of fixed assets.
Non-current assets due within one year	1,628,46 0,684.93	8.19	3,524,70 8,328.77	19.08	-53.80	The primary reason was the recovery of time deposits due to mature within a year at the period's end.
Constructio n in progress	992,205, 279.91	4.99	86,011,3 18.10	0.47	1,053. 58	This was mainly due to increased investment in the construction of the Taizhou, Guangxi, Lishui, and Chongqing production bases duringthe reporting period.
Intangible assets	715,925, 849.18	3.60	457,986, 772.95	2.48	56.32	This was primarily due to the purchase of construction land for the Taizhou, Lishui, and Chongqing production bases.
Deferred tax assets	167,938, 840.75	0.84	84,023,2 63.65	0.45	99.87	This was mainly because the tax discrepancy from the earnings on financial products decreased at the end of the reporting period.
Other non-current assets	5,762,62 5,958.57	28.97	3,809,08 9,833.43	20.62	51.29	This resulted from the Company's additional purchases of three-year term deposits during the reporting period.
Short-term borrowings			511,250, 000.00	2.77	-100	This was due to the repayment of matured discount note loans duringthe reporting period.
Non-current liabilities due within oneyear	17,568,1 22.60	0.09	5,682,22 4.67	0.03	209.1 8	This was due to an increase in bonds payable and lease liabilities maturing within a year.
Bonds	1,644,65	8.27			N/A	This stemmed from the

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payable	0,128.51					issuance of convertible bonds duringthe reporting period.
Deferred income	292,432, 400.56	1.47	198,066, 664.29	1.07	47.64	This was due to an increase in government grants related to assets received during the reporting period.
Equity	861,925, 007.00	4.33	574,700, 004.00	3.11	49.98	The main reason was the Company's capital reserve being converted to increased share capital during the reporting period.
Other equity instruments	432,645, 369.56	2.17			N/A	This was because of an increase in the equity portion of convertible bonds issued duringthe reporting period.
Treasury stock	481,505, 173.88	2.42	134,953, 200.00	0.73	256.7 9	This resulted from the Company's share repurchase duringthe reporting period.
Surplus reserves	430,962, 503.50	2.17	290,784, 296.91	1.57	48.21	This was due to the parent company's sustained profitability and the increased provision for surplus reserves.
Other comprehen sive income	268.34	0.000001			N/A	This was because of increased foreign currency translation differences for overseas subsidiaries at the end of the reporting period.
Minority shareholder s' equity	68,034,2 44.29	0.34	13,145,6 08.02	0.07	417.5 4	This was due to the inclusion of Geling New Energy within the consolidation scope, increasing minority interest and profits of the subsidiaryAima Logistics.

2. Information of overseas assets

√Applicable Not applicable

(1) Asset Scale

Among them, overseas assets amount to 57,463,879.61 yuan (unit: RMB), accounting for 0.29% of the total assets.

(2) Explanation of high proportion of overseas assets

□Applicable √Not Applicable

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3. Restrictions on major assets as of the end of reporting period

√Applicable Not applicable

Item	Closingbook value	Restriction reason
Currencyfunds	628,724,982.33	Pledged as billguarantee deposits
Other non-current assets	4,831,970,833.33	Pledged for issuing bank acceptance bills
Non-current assets due within oneyear	1,500,000,000.00	Pledged for issuing bank acceptance bills
Total	6,960,695,815.66	/

4. Other descriptions

Applicable √Not applicable

(IV) Analysis on industrial operation information

Applicable √Not applicable

(V) Analysis on investment status

Overall analysis on external equity investment

√Applicable Not applicable

As of December 31, 2023, the balance of the Company's long-term equity investments was 127,264,000 RMB, with the balance at the beginning of this reporting period being 128,152,100 RMB, a change ratio of -0.69% during the reporting period.

The main changes in external equity investments during the reporting period are as follows: ① The Company subscribed to a portion of the equity of Guangxi Ningfu by contributing 51,785,700 RMB as an increase in capital, owning 1.97% of Guangxi Ningfu's equity as of the end of the reporting period. ②The Company invested 17,500,000 RMB together with Tianjin Shengyuan Investment Group Co., Ltd. to establish Chongqing Xintai, holding a 35.00% equity stake. ③ The Company purchased an 11.00% equity stake in Geling New Energy from Taizhou Yuanpingzi Electromechanical Technology Co., Ltd. for 9,554,800 RMB. After the acquisition, the Company held a 60.01% equity stake, and Geling New Energy was included in the consolidation scope.

1. Major equity investments

Applicable √Not applicable

2. Major non-equity investments

√Applicable Not applicable

(1) Guigang Production Base

In July 2022, the Company held the 28th Meeting of the Fourth Board of Directors, which approved the proposal to sign an Investment Agreement with the Guigang Municipal People's Government. The Company agreed to a total investment of approximately 1.15

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billion RMB for the construction of the Aima Smart Travel Industrial Park in Guigang, implemented by the wholly-owned subsidiary Guangxi Vehicle. As of the end of the reporting period, Guangxi Vehicle had obtained the construction and building permits, and the Guigang production base project is under construction.

(2) Lishui Production Base

In November 2021, the Company held the Second Extraordinary General Meeting of 2021, which approved the proposal to sign an Investment Agreement with the Qingtian County People's Government of Lishui City. The Company agreed to a total investment of approximately 2 billion RMB for the construction of the Aima New Energy Smart Travel Eco-Industrial Park project in Qingtian County, Lishui, implemented by the wholly-owned subsidiary Lishui Vehicle. Lishui Vehicle has obtained the necessary construction and building permits, and the Lishui production base project is under construction.

(3) Taizhou Production Base

In September 2021, the Company held the 21st Meeting of the Fourth Board of Directors, which approved the proposal to sign the Taizhou Intelligent Electric Vehicle and High-Speed Electric Motorcycle Project Investment Agreement. The Company agreed to a total investment of approximately 1 billion RMB for the construction of the Taizhou Intelligent Electric Vehicle and High-Speed Electric Motorcycle project in Huangyan District, Taizhou, implemented by the wholly-owned subsidiary Taizhou Manufacture. As of the end of the reporting period, the Taizhou production base had obtained all necessary construction permits, and the project is under construction.

(4) Chongqing Production Base

In August 2021, the Company held the 1st Extraordinary General Meeting of 2021, which approved the proposal to sign a Project Agreement with the Management Committee of the Tongliang High-tech Industrial Development Zone in Chongqing. The Company agreed to an investment plan of approximately 2 billion RMB to build the Aima Southwest Manufacturing Base in the Tongliang District of Chongqing, implemented by the wholly-owned subsidiary Chongqing Vehicle. The first phase of the Chongqing production base has officially commenced production. As of the end of the reporting period, the second phase of the Chongqing production base had obtained the construction and building permits, and the project is under construction.

3. Financial assets measured at fair value

√Applicable Not applicable

	Asset category	Begin ning balan ce	Fair value change during the period	Accumulat ed fair value change recognize d in equity	Impair ment provisio n for the period	Purch ases during the period	Sales/re demption s during the period	other Change s	Ending balance

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Stocks	7,348. 00	-1,764. 00						5,584.0 0
Other Equity Investment Instruments					5,000. 00		-5,000. 00	0
Financial Products	6,918. 87	41.33			42,70 2.62		-37,642 .68	12,020. 14
Receivables Financing	833.2 8						56.05	889.32
Total	15,10 0.15	-1,722. 67			47,70 2.62		-42,586 .63	18,493. 46

During the reporting period, the Company subscribed to a portion of the equity of Guangxi Ningfu by contributing additional capital. Since the shareholding ratio did not exceed 5%, the Company did not have a significant influence over Guangxi Ningfu and accounted for this investment as a financial instrument measured at fair value through other comprehensive income. Following the resolution of Guangxi Ningfu’s shareholders’ meeting on June 30, 2023, which approved the addition of the Company's Chairman Zhang Jian as a director of Guangxi Ningfu, the Company obtained significant influence over Guangxi Ningfu. Therefore, during the reporting period, it reclassified this investment as a long-term equity investment accounted for using the equity method, no longer measured at fair value.

Securities investment

√Applicable Not applicable

√ApplicableNot applicable	√ApplicableNot applicable	√ApplicableNot applicable	√ApplicableNot applicable	√ApplicableNot applicable	√ApplicableNot applicable	√ApplicableNot applicable	√ApplicableNot applicable	√ApplicableNot applicable	√ApplicableNot applicable	√ApplicableNot applicable	√ApplicableNot applicable	√ApplicableNot applicable
Unit: Ten Thousand Yuan(RMB)
Cate gory of secur ity	Co de of sec urit y	Abbr eviati on	Initial inves tmen t cost	Sour ce of fundi ng	Op eni ng boo k val ue	Gains or losses arising from changes in fair value	Accumula tive changes in fair value recognize d in equity	Pur cha ses duri ng the peri od	Sold amoun t during the period	Gain or loss on invest ments	Closin g book value	Account ing categor y
Stoc k	688 819 .SH	Tian neng Shar e	8,39 9.79	Self- owne d fund s	7,3 48. 00	-1,764.0 0				-1,764. 00	5,584. 00	Financia l assets held for trading

Description of Securities Investment Situation

√Applicable Not applicable

On December 1, 2020, the Company convened the 12th Meeting of the Fourth Board of Directors, which approved the proposal on Signing a Strategic Placement Subscription

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Agreement with Tianneng Battery Group Co., Ltd. The Company agreed to participate as a strategic investor in the strategic placement of Tianneng Battery Group Co., Ltd., using its own funds not exceeding 100 million RMB. The investment transaction was completed in January 2021. As of the end of the reporting period, the Company had not reduced its holdings in the related stocks.

Private equity investment

• Applicable √Not applicable

Derivatives investment

• Applicable √Not applicable

4. Concrete progress of restructuring and integration of major assets in the reporting period

• Applicable √Not applicable

(VI) Sale of major assets and equity

• Applicable √Not applicable

(VII) Analysis on major subsidiaries and Investees

√Applicable Not applicable

(VII) Analysis on major subsidiaries and Investees √ApplicableNot applicable	(VII) Analysis on major subsidiaries and Investees √ApplicableNot applicable	(VII) Analysis on major subsidiaries and Investees √ApplicableNot applicable	(VII) Analysis on major subsidiaries and Investees √ApplicableNot applicable	(VII) Analysis on major subsidiaries and Investees √ApplicableNot applicable	(VII) Analysis on major subsidiaries and Investees √ApplicableNot applicable	(VII) Analysis on major subsidiaries and Investees √ApplicableNot applicable	(VII) Analysis on major subsidiaries and Investees √ApplicableNot applicable
Unit: Ten Thousand Yuan(RMB)
Name of company	Control relationship	Main business	Registered capital	Total assets	Net assets	Rev enue	Net profit
Aima Chongqin g	Wholly-owne d subsidiary	Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle	1,000	499,075. 24	200,68 8.83	1,07 8,80 6.66	150,593. 67
Tianjin Vehicle	Wholly- owned subsidiary	Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle, electric tricycle	10,000	270,681. 85	60,890. 74	631, 296. 10	44,327.4 1
Jiangsu Vehicle	Wholly- owned subsidiary	Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle	44,000	153,142. 82	40,832. 01	533, 656. 95	22,227.4 7
Guangdo ng Vehicle	Wholly- owned subsidiary	Development, manufacture and sale of electric bicycle, electric moped, electric motorcycle	10,000	66,257.0 5	35,034. 02	229, 625. 28	20,117.3 5

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In the reporting period, net profit realized by the above major wholly-funded subsidiaries came from the production and sales of major products including electric two-wheelers, electric tricycles. Other subsidiaries and associates of the Company were in normal operation, and their profit and loss situation had little impact to the Company.

(VIII) Structured entities controlled by the Company

Applicable √Not applicable

VI. Discussion and Analysis of the Company on Its Future Development

(I) Industrial structure and trend

√Applicable Not applicable

1. Competition situation of industry

At the current stage, as the "New National Standard" reaches its end phase, consumer demand is showing trends of diversification, High-end, smart integration, and internationalization. The industry participants are transitioning from the original "manufacture and sell" model to a "product and service provision" model based on satisfying consumer demands. A large number of companies lacking the ability to perceive consumer needs and to fulfill them, with low standardization, small scale, and poor overall operational efficiency, have been eliminated or shut down, resulting in a continuous increase in industry concentration.

From the perspective of corporate characteristics, industry participants mainly include two types of enterprises: The first type is innovative brand enterprises, which focus on continuous innovation and R&D, and strive to lead industry development. often being able to keenly perceive trends in user demands and swiftly introduce innovative products based on these insights, thereby gaining a competitive edge in the market. They hold numerous patents and innovative products, demonstrating a robust ability to adapt to market changes, which allows them to flexibly respond to challenges from competitors. The second type of business is the follower brand, which has weaker capabilities in innovation. These companies often face technological barriers, product homogeneity, and a passive following of market trends, placing them at a disadvantage in competition.

Table Market competition landscape of electric two-wheelers

Market participant	Original research and innovation capability	User demand insight capability	User demand fulfillment capability	Comprehensive operational efficiency	Competitiv e capability
Innovative brand enterprises	Strong	Strong	Strong	High	Strong
Follower brand enterprises	Weak	Weak	Weak	Low	Weak

2. Industry Driving Factors

(1) Policy

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Policies are increasingly refining the regulatory framework. The implementation of the “New National Standard”, along with other industry policies, has standardized industry development and created opportunities for leading companies.

1) “New National Standard”

Implementation of “New National Standard” brings changes in competition order and market volume.

The inspection rules of Old National Standard are divided into three categories, veto items, important items and common items. The electric bicycle, meeting all veto items, at least 15 ones in 18 important items and at least 9 items in 13 common items, are deemed as qualified in inspection conclusion. The “New National Standard” does not distinguish the inspection rules of electric bicycle, all technical parameters are mandatory and r emphasize the non-motorized vehicle status of electric bicycles, such as a maximum speed limit of 25 km/h, and includes technological measures against tampering with speed.

With implementation of “New National Standard”, in order to further strengthen transportation safety management, the administrative departments implement transition period management policy for the existing electric bicycles that exceed the standard, and each local government set the transition period. After the transition period expires, the electric bicycles exceeding the standard will not be allowed to run on the road again. Local governments promulgated the management policies for electric bicycles that exceed the standard, and set different transition periods (generally 5 years, i.e. closing before the end of 2024). And also they strictly executed the “New National Standard”, and the digital and smart transport monitoring equipment and execution tools greatly reduced execution difficulty, therefore, the implementation effect of the “New National Standard” was good, and the replacement demand increasing every year extended the industry’s market volume.

After implementation of the “New National Standard”, the demand for electric mopeds and electric motorcycles significantly increased, many manufacturers had to pass strict entry examination in order to obtain production and management qualification. In addition, all electric two-wheelers must pass 3C authentication before sale in the market, and the authentication would generate certain expenses. These measures have significantly raised industrial entry barrier and the operating costs of whole vehicle manufacturers, accelerated survival of the fittest in the industry, and had active promotion action for regulating development and competition order of electric two-wheeler vehicle industry. In view of implementation effect of “New National Standard” in recent two years, integration showed acceleration trend in the industry, and the market share would be concentrated to the leading enterprises.

2) Other important industry policies

The industry supervision and administration policies promulgated and implemented in recent years were mainly related to safety (including riding safety and fire safety). Benefiting from digital and smart transportation monitoring equipment and execution tools,

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the execution strength and effectiveness continue to increase, and the safe use of electric two-wheelers and industrial order are strictly regulated from production, sales, and user ends.

In July 2021, the State Taxation Administration, Ministry of Industry and Information Technology, and Ministry of Public Security jointly released the Measures for the “Use of Motor Vehicle Invoices”. Enterprises which manufacture and sell motor vehicles shall issue unified invoices for the motor vehicles which they have sold according to the principle of “one invoice for one vehicle”, and any electric motorcycles and electric mopeds not issued with invoices cannot obtain license plates and run on the road. The 'one invoice for one vehicle' policy facilitates after-sale claims by consumers and effectively eliminates asymmetrical competition in the industry.

In addition, occurrence of public safety accidents arising from electric two-wheelers on fire catches more social attention in recent years. Execution of the rule “electric vehicles shall not be upstairs” is stricter, safe charging has become a focal point in consumption and an important issue affecting the development of the industry, and generated a huge potential demand market, and also provided room for business expansion and performance growth.

(2) Society

The common view of “low carbon emission and green transport” and worse traffic jam to commute habit made more users to accept electric two-wheelers.

In recent years, environmental protection has become a global consensus. In response to the increasingly evident climate risks and the series of issues they precipitate, governments worldwide have taken action. China has set forth the "Dual Carbon" goals (carbon peak by 2030 and carbon neutrality by 2060) and continuously refined its legal and regulatory framework for low-carbon emissions reduction, actively advocating for green, environmentally friendly concepts. Under such circumstances, the notion of "low-carbon green travel" has gradually become a social consensus. Electric two-wheelers, with their environmentally friendly and economical characteristics, align perfectly with the consumer demands of green travel. Concurrently, as urban traffic congestion worsens, many families and individuals, despite owning cars, are opting for electric two-wheelers as a flexible and convenient mode of transportation for short and medium distances due to their maneuverability and ease of parking.

(3) Economy

The medium and short-distance travel demand of residents is basic, transport cost advantage makes electric two-wheeler as major selection for medium and short-distance travel; the rise of take-out distribution and other emerging businesses remarkably extend the use scenarios of electric two-wheelers.

With economic development and urbanization progress, the travel radius of residents (including urban and rural residents) continually increases, and the medium and short-distance travel demand is increasing. Compared with other medium and short-distance vehicles, electric two-wheeler has the following advantages: economical, convenient, time-saving and labor-saving, and the transportation cost advantage is even

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more obvious, this highly meets the demand of residents and it becomes the major selection of residents for medium and short-distance travel. This is the basic drive factor of industry development.

Furthermore, when consumption awareness of residents improves and the “Internet +” service model is becoming mature in China, various door-to-door services have become mainstream of new consumption, take-out services driven under O2O (online/offline) model and express services driven under e-commerce have become the new consumption scenarios of electric two-wheeler, which benefits the expansion of industry capacity.

(4) Technology

In-depth research on the design, technology, and processes of electric two-wheelers, along with the ongoing integration of networking and intelligence, drives the industry's technological development.

Industry technologies are developed mainly in two paths, one is innovation and improvement of the inherent technology system of the industry (including material, process and structure), including performance improvement of core hardware such as battery, application of new environment-friendly materials and new technologies, improvement of vehicle body structure. The other is technical application crossing industries, networking and smart technical application is the R&D field of current important cross-industry technical application. Both of them jointly promote technology development of the industry, improvement of product performance and function expansion, and it is beneficial that the products in the industry obtain wider market recognition. After the leading enterprises with strength in R&D investment acquire economic interest from research and development, they will further increase input in R&D and design, so that it can generate good cycle of R&D - design - manufacture - sale, and promote improvement of industry concentration and whole upgrading of industry.

(5) International demand

Carbon emission reduction is an important strategic consensus formed on a global scale. Against the backdrop of continuous implementation of carbon reduction policies worldwide, the international market for electric two-wheelers is showing a growing trend.

Since electric two-wheelers emerged, the domestic market has been the primary consumption market, while demand for electric two-wheelers in the international market has been low. Compared with electric two-wheelers, motorcycles and electric assistance products with leisure and fitness functions are greatly accepted by overseas customers. While environmental protection awareness is being strengthened in the world, many countries promulgate relevant policies for “prohibiting motorcycle” or encouraging “replacing oil with electricity”, and the demand for electric two-wheelers in the international market shows increasing trend, and this provides another huge development space for the industry.

3. Industry development trend

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Economic transformation and consumption upgrading, application of networking and smart technologies, along with the rise in international demand due to carbon peaking and carbon neutrality goals, will drive the electric two-wheeler industry towards differentiation, high-end, smart, and international directions.

(1) Differentiation

Electric two-wheelers in early days mainly met the short-distance travel demand of the public, and the products focused at riding function and cost performance, they had simple functions and are homogeneous. With the improvement of residents' living standards and the trend towards consumption upgrading, the consumption demand for electric two-wheelers changes to the direction of quality, function, personality and experience, including color, vehicle model and style (such as business, fashion and sports), driving mileage, smart interaction, riding comfort, brake safety, stability, etc. In the trend of consumption demand transformation and consumption upgrading, electric two-wheelers will show differential trend, namely, manufacturers carry out precise identification and deep research to segmenting consumption demand, and organize customized production according to different personal demands.

(2) High-end

With more intensive competition in the industry, restructuring of industry order and change of consumption demand, high-end will be the necessary option of electric two-wheeler industry, and is also only way of brand enterprises. High-end trend of the industry includes three aspects: first, product function upgrading and expansion, second, brand re-positioning and extension, third, overall high-end transformation. Overall high-end transformation mainly refers to innovation, evolution and upgrading of the existing industrial pattern under the networking, smart and digital trend.

(3) Smartness

Consumption upgrading and cross-industry technical application provide opportunities for smart development of the industry, including development and application of automatic driving, automatic parking, smart navigation, automatic unlocking, health testing, remote failure diagnosis, anti-theft warning and other smart modules. Especially, Gen Z people, who have been one of the major consumption groups, pay more attention to smart unlocking, human-vehicle interconnection and other smart functions. With continual development of Internet of vehicles, smart function is hopeful to be the standard function configuration. At that time, electric two-wheelers will not be limited to be short-distance transport vehicle, and they will become an important part of residents' smart networking media systems and a significant source of social networking data.

(4) Internationalization

With formation of international common view on carbon emission reduction and understanding of overseas users about green and convenient characteristics of electric two-wheeler, international market faces development opportunity, electric two-wheeler industry will gradually move from domestic market to global market. At present, many

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domestic manufacturers in China are intensifying their efforts to expand into the international market. Despite the obstacles posed by trade protectionism during internationalization, the unique advantages of the electric two-wheeler industry and the international strategies of leading enterprises will help electric two-wheelers enter the overseas market, and this will become the important development trend of this industry.

(II) Development strategy of the Company

√Applicable Not applicable

The Company consistently adheres to the strategic development axis of " Users First, Excellent Products, In-depth Development in the Market, Refined Operation" continuously focusing on the field of convenient short-distance transportation. Specializing in the innovation, research and development, and manufacturing of electric two-wheelers, the Company has built an end-to-end quality management system to provide consumers with competitive products and travel solutions. Facing future market development trends toward youthfulness, fashion, intelligence, and low carbon, the Company maintains and promotes the transformation from a single vehicle seller to a travel solutions provider, from a leader in travel products to a leader in the travel ecosystem, from a domestic brand to an international brand, and from a manufacturing-based company to a technology-based company. Committed to becoming a platform-based technology fashion company that provides green and convenient travel solutions, the Company continues to create value for shareholders, society, customers, and partners.

(III) Business plan

√Applicable Not applicable

1. Product development and quality management

Centering on user needs, the Company advances the integrated development process of products and the strategic project of creating major products, achieving both the development of the right products and their correct development. Simultaneously, by precisely judging user needs and market trends, the Company continues to invest in core industry technologies, implementation of intelligent functions, and the application of new technologies and processes, constantly enhancing the full-process quality control system to ensure the continuous delivery of advanced performance and stable quality products that precisely meet the target user group's demands.

2. Channels and services

The Company firmly adheres to the direction of integrated manufacturer and vendor value, continuously advancing channel expansion. By utilizing an efficient information system, the Company refines channel management and empowers dealers, enhancing the operational capabilities and output of individual stores. Simultaneously, it actively explores innovative channel models to improve channel operational efficiency and effectiveness. Relying on dealer channels, the Company promotes the expansion of specialized service stores to build a service system that covers the entire product lifecycle, providing users with efficient and high-quality services. The Company intensifies exploration of online

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channels to attract traffic and acquire new customers, promoting the coordinated development of offline and online channels.

3. Supply chain

To build a supply chain that ensures supply security, stable quality, and cost-effectiveness, the Company focuses on "improving quality, concentrating volume, and reducing costs”. It continuously advances supplier tier management and precise empowerment, creating a high-quality supplier base. Collaboratively advancing R&D, quality management, and production, the Company deeply involves key suppliers in the R&D and production processes, advocating the use of new materials, technologies, and processes to achieve cost reductions while ensuring component quality. The Company continuously strengthens the localization of the supply chain to enhance supply security and speed.

4. Brand building and marketing

Centering on the rejuvenation and fashion renewal of the brand, the Company plans and conducts corresponding brand and marketing activities. Simultaneously, adjusting the product structure as a marketing focus, the Company intensifies marketing efforts on popular models.

5. Production

Focusing on achieving goals in quality (Quality), cost (Cost), and delivery time (Delivery), the Company undertakes relevant work in automation, informatization construction, lean production, and the application of new technologies and processes.

6. Digital intelligence engineering

The Company continuously promotes the construction of digital intelligence engineering, empowering various business units, and continually enhancing the Company’s capabilities in "data nurturing, data management, and data utilization”, establishing a data-driven management capability.

7. International market expansion

Increasing investment, the Company steadfastly adopts a localization strategy to expand into international markets, focusing on key markets to achieve synergistic development of OEM large customers and independent brand business; building core competitiveness for the global market.

8. Human resources

Further optimizing organizational levels, clarifying functional responsibilities, and comprehensively implementing performance outcomes in talent cultivation, selection, and incentive mechanisms; enhancing the cultivation of skilled talents, improving the training and development system for skilled talents, and establishing a professional development channel for skilled talents linked with salary distribution; intensifying the introduction of strategic talents to provide long-term stable growth for the Company.

(IV) Potential risks

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√Applicable Not applicable

1. More intensive competition in the industry

Competition in the electric two-wheeler industry is increasingly intensive. In recent years, with regulatory development of industry and optimization of competition order, many small enterprises withdraw from the market, and industry competition mainly exists between leading enterprises. This new situation sees these enterprises continually reducing sales prices while improving product performance and expanding service coverage, which significantly increases the difficulty of competition. If a manufacturer fails to promptly launch high-cost performance products and offer high-quality services according to market demand, it may lose original competition advantage and industrial position. At present, the Company has maintained a leading position in the industry by virtue of its capabilities of strong product development, technological innovation, excellent cost control and quality management, good brand image and user reputation, nationwide marketing channels and service networks and other competitive advantages. The Company will continually focus on users’ demand, carry out differential competition, realize smart and high-end products by application of Internet of vehicles technologies, development of industrial core hardware, improve production efficiency and defined operation through digital and smart upgrading, development and cost reduction and raise its cost competition advantage.

2. Product R&D risks

With the improvement of consumers' consumption awareness and the trend of consumption upgrading becoming more and more obvious, consumers' demand for electric two-wheeled vehicles presents the characteristics of fashion, intelligence and networking, which requires electric two-wheeled vehicle manufacturers to continuously research and predict the trend of consumer demand, continue to carry out product innovation and technology research and development, and launch new models with new shapes and new functions to meet the constantly upgraded consumer needs of users. Failure to meet consumption expectations will have a negative impact on performance. In addition, the R&D of new models requires a certain period of time. If a manufacturer takes the lead in developing similar products and locks the relevant patents, it may put pressure on the R&D of other manufacturers. The Company always regards R&D and product innovation as the main means to enhance its product competitiveness and achieve long-term development. Starting from the needs of users, after years of continuous R&D investment and exploration, it has acquired the relevant capabilities of accurate user demand positioning, excellent technology and innovation, which makes its products popular among consumers. The Company will continue to improve the APDS process with a user-centered R&D strategy, and enhance the Company's technological capabilities to reduce R&D risks.

3. Management risks to dealers

The main sales model of the Company's products is distribution. Dealers are not only the Company's direct customers, but also important windows for the Company to show its

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brand image and enhance its brand reputation to consumers in its distribution areas. The operating capabilities, risk appetite and willingness to work hard of the dealers have a greater impact on the sales of the Company's products in the relevant distribution areas. If the dealer's operation method and service quality are contrary to the Company's business purpose or the dealer's understanding of the Company's management philosophy deviates, it may have an adverse impact on the Company's business performance and brand image. In this regard, the Company continuously improves the dealer management system, strictly implements the management standards for dealer access, training, assessment and exit, etc., and establishes a scorecards and dynamic channel management system to “retain winners and phase out losers”, to stimulate the dealer’ working enthusiasm, improve their operation capabilities and ensure the vitality and healthy development of the Company's channel system.

4.Material price fluctuation risks

The purchase price of raw materials in the industry is affected by factors such as macro trends and industrial policies, and there is the possibility of fluctuations, which increases the difficulty of controlling purchase costs and may have a certain impact on the operating performance of production enterprises. In this regard, the Company has built and will continue to improve a high-quality and efficient supply chain system, and has set up an SQE (Supplier Quality Engineer) department, and select and integrate global supply chain resources. The Company invested in key parts suppliers to ensure the safety of the supply of key parts; at the same time, for products with a clear price increase, the Company adopts the method of locking the price in advance and locking the purchase volume to avoid operating risks caused by sharp price increases. The Company has established close strategic cooperative relations with major parts suppliers, which is conducive to achieving sufficient supply of raw materials and stable prices. At the same time, the Company upgrades and optimizes the supply chain platform through the construction of digital intelligence, realizes the deep synergy between the Company's manufacturing process and the supply chain system, and hedges the cost control pressure caused by rising raw materials with the improvement of production efficiency.

5. Risks of new projects falling short of expectations

In recent years, as the industry's market capacity continuously expands and the Company's product sales gradually increase, the Company has decided to build new production bases to expand capacity and enhance overall production capabilities after thorough research and validation. These new projects include the Taizhou Intelligent Electric Vehicle and High-Speed Electric Motorcycle project in Zhejiang, the Aima New Energy Intelligent Travel Ecological Industrial Park project in Zhejiang Lishui, the Aima Intelligent Travel Industrial Park project in Guangxi Guigang, the second phase of the Aima Southwest Manufacturing Base in Chongqing, and an overseas production base in Southeast Asia. The construction of new bases generally takes a long time, and coupled with changes in policies, construction conditions, and other factors, there is a risk that the construction and production of new projects may not progress as expected. Although these projects have been thoroughly validated by the Company based on scientific

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predictions of national industrial policies, industry trends, and market demands, significant adverse changes in policies, industry trends, or market environments after the new bases start production could impact the profitability of the projects. Additionally, the implementation of new projects will lead to an increase in the Company's fixed asset depreciation expenses, which may adversely affect short-term performance. In response, the Company will closely monitor policy and market environment changes, accelerate project construction and production ramp-up, and continuously enhance its technological strength and product competitiveness to accurately meet consumer demands, thereby increasing the market share of its products and the profitability of new projects.

(VI) Others

Applicable √Not applicable

VII. Explanation for Non-disclosure in Accordance with The Accounting Standard due to Being Not Applicable to The Provisions of the Standard or State Secret and Business Secrete and Other Special Reasons

Applicable √Not applicable

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Section 4 Corporate Governance

I. Related Information about Corporate Governance

√Applicable Not applicable

In accordance with the Company Law, Securities Law, Code of Corporate Governance for Listed Companies, Rules Governing the Listing of Stocks on Shanghai Stock Exchange and other laws and regulations, and based on its actual situation, the Company has constantly improved its corporate governance structure and internal control system to further enhance its governance level.

The General Meeting of Shareholders, Board of Directors, Board of Supervisors and managers have their respective clear rights and responsibilities, and they operate in a regulated manner. Four specialized committees including the Strategy and ESG Committee, Audit Committee, Nomination Committee, Remuneration and Appraisal Committee have been set up under the Board of Directors, and each specific committee does its work according to its duties. In 2023, the Company held 4 general meetings of Shareholders, 13 meetings of board of directors and 10 meetings of board of supervisors, reviewing the important matters such as external guarantees, related party transactions, convertible bonds, stock options, share buy-backs. The Company has updated the independent director system in accordance with the latest legal and regulatory requirements. The independent directors rigorously fulfill their responsibilities as mandated by relevant laws, regulations, and the Company’s Articles of Association, express independent opinions on related matters, convene special meetings for deliberation, and effectively safeguard the legal rights and interests of all shareholders. Concurrently, the Company continues to amend and improve relevant regulations, which are effectively executed; The Company has established impartial, transparent performance evaluation standard and incentive and restriction mechanisms for senior management, and has made comprehensive evaluation with reference to the operation targets of the Company and its business units, individual ability and performance examination.

The Company c continuously enhances the quality of its information disclosures according to the provisions of the Articles of Association, Management Method on Information Disclosure and other rules. The Company insists on combination of statutory information disclosure and voluntary information disclosure and ensure that all shareholders and other stakeholders could obtain the Company’s information equally. During the reporting period, the Company disclosed 107 temporary reports and 4 regular reports, all announcements and filing documents are stored in the Company's securities affairs management department for investors to access. The Company also strictly executed the Insider Registration and Filing System to enhance the confidentiality of insider information, maintain the openness, fairness and justness of information disclosure and protect the legitimate rights and interests of investors.

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The Company places high importance on investor relations management. Through various channels such as the Shanghai Stock Exchange "e-Interaction" platform, dedicated investor hotline, email, website column, online meetings, and on-site reception, the Company maintains continuous contact with all types of investors and industry researchers. This facilitates timely access to corporate information for investors and builds an effective communication bridge between investors and the listed company. It also allows the Company to understand the demands and expectations of investors, guiding and standardizing further improvements in investor relations management to enhance corporate quality. During the reporting period, the Company organized multiple performance briefings and investor research activities, and actively participated in brokerage strategy meetings, conducting a variety of investor communication activities in accordance with laws and regulations.

Indicate whether there was any material incompliance with the applicable laws and regulations, as well as the CSRC’s requirements in corporate governance. If yes, please explain

√Applicable Not applicable

II. Specific Measures Taken by the Controlling Shareholder and Actual Controller to Guarantee the Asset, Personnel, Financial, Organizational and Business Independence of the Company, as well as Solutions, Progress and Subsequent Plans when the Company’s Independence Is Intervened

√Applicable Not applicable

The Company has been operating strictly in accordance with the Company Law, Articles of Association and other relevant regulations. The Company maintains independence from its controlling shareholder, the actual controller and other enterprises under its control in assets, personnel, finance, organization, business, etc. The Company has a complete business system and the ability to operate independently in the market. The concrete situation is as follows:

(I) Independent assets

The Company has an independent and complete production, procurement and sales system and supporting facilities for production and operation, and legally owns fixed assets (e.g., plants and equipment) and intangible assets (e.g., land use rights, trademarks and patents) related to production and operation. There are no instances of illegal use of the Company’s funds, assets, or other resources by the controlling shareholder or its affiliates, and there are no unclear property rights in the business systems and major assets related to operation.

(II) Independent personnel

The Company has set up an independent human resource department, and has formulated the rules related to labor, personnel and salary. All of the Company’s senior management, hold full-time positions in and receive remunerations from the Company, and none of them hold a position other than director and supervisor in the controlling

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shareholder or actual controller of the Company or any other enterprise under control thereof. The Company is absolutely independent from its controlling shareholder and actual controller, and other enterprises under their control in terms of labor, personnel and salary management.

(III) Independent finance

The Company has set up an independent finance department, and established a set of independent, complete and normative financial accounting system, accounting management system and internal control system. The Company independently opens banking accounts, pays tax in accordance with the law, and does not use any joint account with the controlling shareholder, actual controller and other enterprises under control thereof.

(IV) Independent organization

The Company has independent production, operation and office places. According to law, the Company has set the general meeting of shareholders as the highest authority, the board of directors as the decision-making body and the board of supervisors as the supervisory body, built an independent organizational structure suitable for its own development, and formulated reasonable and complete position duties and internal management rules. Each department independently operates according to the stated responsibilities. There is no shareholder entity or any other entity or individual that interferes with the establishment of the Company’s organization, and the Company is completely independent of the controlling shareholder, actual controller and other enterprises under control thereof.

(V) Independent business

The Company owns independent and complete purchasing, production, sales and business systems, and has independent management decision-making rights, independently organizes its production and management according to operation plans, independently carries out business, which is independent with the controlling shareholder, actual controller and other enterprises under control thereof. The Company does not have peer competition or unconscionable related transaction with the controlling shareholder, actual controller and other enterprises under control thereof.

Indicate whether the controlling shareholder, the actual controller, or any entity under their control is engaged in the same or similar business with the Company. Explain the impact of peer competition or any significant change to peer competition on the Company, solutions taken, progress and subsequent plans.

Applicable √Not applicable

III. Introduction to General Meetings of Shareholders

Meeting session	Date of meeti	Index for resolution search on the designated	Date of disclosure of	Meeting resolutions
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	ng	website	resolution
The 1st Extraordinary General Meeting of Shareholders in 2023	April 14, 2023	www.sse.com.cn	April 15, 2023	Reviewed and adopted the <2023 Stock Option Incentive Plan (Draft)> and its summary, the Proposal on the <2023 Stock Option Incentive Plan Implementation Assessment Management Measures>, and the Proposal on Submitting to the General Meeting of Shareholders the Authorization for the Board of Directors to Handle Matters Related to Equity Incentives.
The Annual General Meeting of Shareholders in 2022	May 5, 2023	www.sse.com.cn	May 6, 2023	Reviewed and adopted the Proposal on the 2022 Work Report of the Board of Directors, the Proposal on the Work Report of the Board of Supervisors in 2022, the Proposal on the Final Financial Report of 2022, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2022,the Proposal on the Annual Report of 2022 and its Summary, the Proposal on Providing Credit Guarantees for Certain Subsidiaries, the Proposal on Applying for Comprehensive Credit Line to Bank in 2023, the Proposal on the Work Report of Independent Directors in 2022, the Proposal Regarding Director Compensation for the Fifth Board of Directors Meeting, the Proposal Regarding Supervisor Compensation for the Fifth Board of Supervisors Meeting, the Proposal for the Reappointment of the Financial Audit Firm and Internal Control Audit Firm for the Fiscal Year 2023, the Proposal for Purchasing Liability Insurance for the Company and Directors, Supervisors, and Senior Management Personnel.
The 2nd Extraordinary General Meeting of Shareholders in 2023	June 5, 2023	www.sse.com.cn	June 6, 2023	Reviewed and adopted the Proposal Regarding Changing the Company's Registered Capital and Amending the .
The 3rd Extraordinary General Meeting of Shareholders	Sept embe r 7, 2023	www.sse.com.cn	Septembe r 8, 2023	Reviewed and adopted the Proposal Regarding the <2023 Interim Profit Distribution Plan>.

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Extraordinary general meetings of shareholders convened at the request of preference shareholders with resumed voting rights:

Applicable √Not applicable

Description of general meetings of shareholders

Applicable √Not applicable

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IV. Situation of Directors, Supervisors and Senior Management

(I) Shareholding changes and remunerations of incumbent directors, supervisors and senior management and those who resigned before the end of their tenures during the reporting period

√Applicable Not applicable

Name	Office title	Gende r	Ag e	Start of tenure	End of tenure	Beginni ng of year shareho lding	End of year sharehold ing	Change in shareholding in the reporting period	Reason for change	Pre-tax compensation received from the Company during the reporting period (in ten thousand RMB)	Whether acquiring remuneration from related parties of the Company
Zhang Jian	Chairman of the Board, GM	M	54	Septembe r 27, 1999	Septembe r 8, 2025	395,243 ,800	592,865,7 00	197,621,900	Capitalization of capital reserves	321.37	No
Duan Hua	Vice Chairman of the Board, vice GM	F	55	Septembe r 13, 2013	Septembe r 8, 2025					308.23	No
Zhang Gege	Director	F	30	Septembe r 13, 2013	Septembe r 8, 2025					50.72	No
Peng Wei	Director	M	53	August 26, 2009	Septembe r 8, 2025	4,147,8 40	6,221,760	2,073,920	Capitalization of capital reserves	67.42	No

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Gao Hui	Director, vice GM	M	45	Septembe r 9, 2022	Septembe r 8, 2025	1,680,0 00	2,520,000	840,000	Capitalization of capital reserves	283.71	No
Wang Chunyan	Director, vice GM, secretary of board of director	M	44	January 24, 2018	Septembe r 8, 2025					151.29	No
Sun Minggui	Independen t director	M	60	Septembe r 9, 2022	Septembe r 8, 2025					10.67	No
Liu Junfeng	Independen t director	M	55	Septembe r 9, 2022	Septembe r 8, 2025					10.67	No
Ma Junshen g	Independen t director	M	48	Septembe r 9, 2022	Septembe r 8, 2025					10.67	No
Xu Peng	Chairman of board of supervisors	M	34	Septembe r 13, 2016	Septembe r 8, 2025					30.37	No
Li Yan	Employee supervisor	F	40	May 7, 2018	Septembe r 8, 2025					69.02	No
Liu Tingxu	Supervisor	F	42	Septembe r 9, 2022	Septembe r 8, 2025					92.60	No
Li Yubao	Vice GM	M	48	January 24, 2018	Septembe r 8, 2025					313.08	No
Zheng	Vice GM,	F	42	July 21,	Septembe	560,000	840,000	280,000	Capitalization	222.80	No

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Hui	Chief Financial Officer	Chief Financial Officer			2021	r 8, 2025				of capital reserves
Luo Qingyi	Vice GM		M	44	Septembe r 9, 2022	Septembe r 8, 2025	840,000	1,260,000	420,000	Capitalization of capital reserves	326.92	No
Name		Main workingexperience
Zhang Jian		Former Executive Director of Tianjin Qiyu Interactive Technology Co., Ltd., and Director of Tianjin Sanshang Investment Management Co., Ltd. Currentlyserves as the Chairman and General Manager of the Company.
Duan Hua		Former Vice General Manager at Aima Technology. Currentlythe Vice Chairman and Vice General Manager of the Company.
Zhang Gege		Former Assistant General Manager and Secretary to the Chairman at the Company. Currently a Director at the Company, Executive Director and General Manager at Suiwanwan, and Executive Partner at YanchengDingai.
Peng Wei		Former General Manager of Tianjin Bond Fushida Electric Vehicle Co., Ltd., and General Manager at Tianjin Sports. Currently a Director of the Company.
Gao Hui		Former President of the special and international business division at the Company. Currently a Director, Vice General Manager, President of the electric vehicle division, and General Manager of domestic business at the Company.
Wang Chunyan		Former Chairman and President of Tianjin Sanshang Investment Management Co., Ltd. Currently a Director, Vice General Manager, and Secretary of the Board of Directors at the Company.
Sun Minggui		Former teaching assistant, lecturer, associate professor and professor of Lanzhou University. Currently an Independent Director of the Company, and professor and doctoral supervisor of Glorious Sun School of Business and Management at Donghua University.
Liu Junfeng		Former Vice General Manager and Secretary of the Board of Tasly Pharmaceutical Group Co., Ltd., Vice General Manager and Secretary of the Board at Tianjin Changrong Technology Group Co., Ltd., and Full-time Vice Chairman and Secretary-General of the Tianjin Association for Public Companies. Currentlyan Independent Director of the Companyand a Consultant at Stock(Tianjin)EngineeringTechnologyCo., Ltd.
Ma Junsheng		Former training partner at Shandong Paramount Accounting Firm. Currently an Independent Director of the Company, director of the Financial Research Institute at the Shanghai Pudong Financial Promotion Association, researcher at the Intelligent Finance Research Institute of the

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	Shanghai National Accounting Institute, Independent Director at Shanghai Guohui Environmental Technology Co., Ltd., Independent Director at Shanghai CN Science and Technology Co., Ltd., External Director at Shanghai Yangpu Trading (Group) Co., Ltd., and Independent Director at HuarongTechnologyCo., Ltd.
Xu Peng	Former Chairman of the Board at Tianjin Bond Fushida Electric Vehicle Co., Ltd., and assistant general manager at Tianjin Sanshang Investment Management Co., Ltd. Currentlythe Chairman of the Board of Supervisors of the Company.
Li Yan	Former section chief of supplier management at the Company's procurement department, secretary to the Vice Chairman, director of the improvement office at the brand management venter, and director of the Office of the Vice Chairman. Currently an Employee Supervisor and product manager of the R&D department at the Company.
Liu Tingxu	Former section chief of the procurement department and deputy director of the brand center at the Company. Currently a Supervisor and Secretary to the DeputyChairman at the Company.
Li Yubao	Former director of the procurement department at Tianjin New Times Vehicle Industry Co., Ltd., director of the procurement department at Tianjin Taimei Bicycle Co., Ltd., and director of procurement at the Company. Currentlythe Vice General Manager of the Company.
Zheng Hui	Former Financial Manager at Midea Group Co., Ltd. Product Company, Vice General Manager and Chief Financial Officer at Meizhi Optoelectronics Technology Co., Ltd., Vice General Manager at Foshan Hange E-commerce Technology Co., Ltd., Senior Financial Director at Foshan Yunmi Electric Technology Co., Ltd., and Senior Financial Director at the Company. Currently the Vice General Manager and Chief Financial Officer of the Company.
Luo Qingyi	Former Administrative Vice General Manager at Ningbo Geely Royal Engine Components Co., Ltd. Currently the Vice General Manager of the Company.

Description of other situation

Applicable √Not applicable

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(II) Incumbency of current and resigned directors, supervisors and senior management during the reporting period

1. Position at the shareholder entity

2. Applicable √Not applicable

3. Statement of the position held in other entities

4. √Applicable Not applicable

Name of in-service staff	Name of other entities	Position held in other entities	Starting date of tenure	Ending date of tenure
Zhang Jian	Tianjin Jiema Electric Technology Co., Ltd.	Director	January 2019
Zhang Jian	Zhejiang Today Sunshine New Energy Vehicle Co., Ltd.	Director	May 2022
Zhang Jian	Nanjing Zhidou New Energy Vehicle Co., Ltd.	Director	May 2023
Zhang Jian	Guangxi Ningfu New Energy Technology Co., Ltd	Director	June 2023
Zhang Gege	Yancheng Dingai Venture Capital Partnership (Limited Partnership)	Managing partner	December 2017
Gao Hui	Wuxi Lyuling Electric Technology Co., Ltd.	Executive director	May 2015
Liu Junfeng	Tianjin Association for Public Companies	Full-time vice president and secretary general	August 2021	June 2023
Sun Minggui	Glorious Sun School of Business and Management, Donghua University	Professor, doctoral supervisor	February 2004
Ma Junsheng	Shanghai Zhongyin Culture Communication Co., Ltd	Independent director	September 2022	August 2023
Ma Junsheng	Shanghai Guohui Environmental Technology Co., Ltd.	Independent director	October 2020
Ma Junsheng	Shanghai Xien Technology Co., Ltd.	Independent director	February 2022
Ma Junsheng	Shanghai Yangpu Commerce & Trade (Group) Co., Ltd.	External director	January 2022
Ma Junsheng	Huarong Technology Co., Ltd.	Independent director	September 2022
Luo Qingyi	Ningbo Hengai Enterprise Management Partnership (Limited Partnership)	Executive partner	December 2021	May 2023
Description of taking office in other organizations	As of the end of the reporting period, Ma Junsheng served as an independent director in no more than three domestic listed companies, in compliance with the relevant provisions of the Guidelines for Independent Directors of Listed Companies.

(III) Remunerations of directors, supervisors and senior management

√Applicable Not applicable

√ApplicableNot applicable
Decision-making process for the remuneration of directors, supervisors and senior management	The board of directors decides on the remuneration of senior management, while the general meeting of shareholders decides on the remuneration of directors and supervisors.
Directors abstain from discussions on their remuneration at the Board of Directors	Yes.
The Remuneration and Assessment Committee or special meeting of independent directors provided	Referring to industry and regional standards, and considering the actual situation of the Company, the remuneration for directors, supervisors, and senior management is determined.

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recommendation on compensation of Directors, Supervisors and Senior Management Basis for deciding the remuneration of directors, supervisors and senior management Actual payment of remuneration for directors, supervisors and senior management Total remuneration actually obtained by all directors, supervisors and senior management at the end of reporting period
	The remuneration of the Company's directors, supervisors, and senior management is determined based on the Company's compensation distribution system and assessment methods. The remuneration of independent directors is determined according to the actual work they perform for the Company.
	For details, please refer to Section IV, (I) Shareholding changes and remunerations of incumbent directors, supervisors and senior management and those who resigned during the reporting period.
	RMB 22.6954 million.

(IV) Changes in directors, supervisors and senior management

• Applicable √Not applicable

(V) Punishments imposed by securities regulators in the past three years

• Applicable √Not applicable

(VI) Others

• Applicable √Not applicable

V. Board Meetings Convened during the Reporting Period

Meeting session	Date of Meeting	Meeting Resolutions
The 4th Meeting of the Fifth Board of Directors	February 20, 2023	Reviewed and adopted the Proposal on Clarifying the Public Issuance Plan of Convertible Corporate Bonds, Proposal on the Public Issuance and Listing of Convertible Corporate Bonds, Proposal on Establishing Special Accounts for Raised Funds and Signing Supervision Agreements.
The 5th Meeting of the Fifth Board of Directors	March 20, 2023	Reviewed and adopted the Proposal on Using Partial Funds Raised through Convertible Corporate Bonds to Provide Loans to a Wholly-Owned Subsidiary for Implementation of Fund-raising Projects, the Proposal on the <2023 Stock Option Incentive Plan (Draft)> and Its Summary, the Proposal on the <2023 Stock Option Incentive Plan Implementation and Assessment Management Methods, the Proposal to Request the General Meeting of Shareholders to Authorize the Board of Directors to Handle Matters Related to Stock Incentives, the Proposal on Convening the First Extraordinary General Meeting of Shareholders of the Company in 2023.
The 6th Meeting of the Fifth Board of Directors	April 14, 2023	Reviewed and adopted the Proposal on the 2022 Work Report of the Board of Directors, the Proposal on the Work Report of the General Manager in 2022, the Proposal on the Final Financial Report of 2022, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2022, the Proposal on the Annual Report of 2022 and its Summary, the Proposal on 2022 Environmental Social and Governance(ESG) Report, the Proposal on the Special Report on Deposit and Use of Raised Funds in 2022, the Proposal on 2022 Annual Internal Control Evaluation Report, the Proposal on Use of Idle Self-owned Fund for Cash Management, the Proposal on Providing Credit Guarantees for Certain Subsidiaries, the Proposal on Applying for Comprehensive Credit Line to Bank in 2023, the Proposal on the Work Report of Independent Directors in 2022, the Proposal on

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		the Performance Report of the Audit Committee of the Board of Directors for 2022, the Proposal on Allowance for the Directors of the Fifth Board of Directors, the Proposal on the Remuneration of Senior Management in 2022 and Remuneration Program for 2023, the Proposal on the Reappointment of the Accounting Firm, the Proposal on the Deposit of Part of the Raised Funds through Demand Deposits, Negotiable Deposits, and Other Forms of Current Account Deposits, the Proposal on Purchasing Liability Insurance for the Company and its Directors, Supervisors and Senior Management, the Proposal on Adjusting the List of Incentive Recipients and the Number of Shares Granted under the 2023 Stock Option Incentive Plan, the Proposal on Granting Stock Options to Incentive Recipients, the Proposal on Convening the Annual General Meeting of Shareholders in 2022.
The 7th Meeting of the Fifth Board of Directors	April 26, 2023	Reviewed and adopted the Proposal on the First Quarter Report of 2023, the Proposal on Using Bank-Accepted Bills to Pay for Fundraising Investment Projects and Replacing with an Equivalent Amount of Raised Funds
The 8th Meeting of the Fifth Board of Directors	May 19, 2023	Reviewed and adopted the Proposal on Adjusting the Number of Shares Granted and the Repurchase Price under the 2021 Restricted Stock Incentive Plan, the Proposal on the Repurchase and Cancellation of the First Grant of Restricted Shares under the 2021 Restricted Stock Incentive Plan, the Proposal on the Achievement of the Unlocking Conditions for the First Unlocking Period of the First Grant under the 2021 Restricted Stock Incentive Plan, the Proposal on Renaming the Board of Directors' Strategic Committee, the Proposal on Changing the Company’s Registered Capital and Amending the Articles of Association, and the Proposal on Convening the Second Extraordinary General Meeting of Shareholders in 2023.
The 9th Meeting of the Fifth Board of Directors	June 15, 2023	Reviewed and adopted the Proposal on Using Funds Raised through Convertible Corporate Bonds to Replace Self-raised Funds Pre-invested in Fundraising Projects and Paid Issuance Expenses, the Proposal on Formulating the Working Rules for the Board of Directors' Strategic and ESG Committee, and the Proposal on Adding Members to the Board of Directors' Strategic and ESG Committee.
The 10th Meeting of the Fifth Board of Directors	June 30, 2023	Reviewed and adopted the Proposal on Temporarily Not Adjusting the Conversion Price of the Aima CB into Shares.
The 11th Meeting of the Fifth Board of Directors	August 11, 2023	Reviewed and adopted the Proposal on Extending the Investment Period for Certain Projects Funded by the Initial Public Offering Proceeds.
The 12th Meeting of the Fifth Board of Directors	August 21, 2023	Reviewed and adopted the Proposal on the Semi-annual Report of 2023 and its Summary, the Proposal on the Special Report on Deposit and Use of Raised Funds in the First Half of 2023, the Proposal on the Profit Distribution Plan for the First Half of 2023, the Proposal on Adjusting the Number of Shares Granted and the Exercise Price under the 2023 Stock Option Incentive Plan, the Proposal on the Achievement of the Conditions for Lifting the First Restriction Period for Reserved Shares under the 2021 Restricted Stock Incentive Plan, and the Proposal on Convening the Third Extraordinary General Meeting of Shareholders in 2023.
The 13th Meeting of the Fifth Board of Directors	August 28, 2023	Reviewed and adopted the Proposal on Repurchasing Company Shares through Centralized Bidding.
The 14th Meeting of the Fifth Board of Directors	October 23, 2023	Reviewed and adopted the Proposal on the Third Quarter Report of 2023.
The 15th Meeting of the Fifth Board of Directors	October 27, 2023	Reviewed and adopted the Proposal on Temporarily Not Adjusting the Conversion Price of the Aima CB into Shares.
The 16th Meeting of the	December	Reviewed and adopted the Proposal on Estimated Daily Related

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Fifth Board of Directors 27, 2023 Transactions of the Company and its Subsidiaries in 2023, the Proposal on Amending the Working Rules for Independent Directors and the Proposal on Adjusting the Members of the Board of Directors' Audit Committee.

VI. Performance of Duty by Directors

(I) Attendance of board meetings and general meetings by directors

Name of director	Indep ende nt direct or or not	Attendance at board meetings	Attendance at board meetings	Attendance at board meetings	Attendance at board meetings	Attendance at board meetings	Attendance at board meetings	Attendances at General meetings
		Required attendances of Board meetings	Atten danc e in perso n	Attendanc e by telecommu nication	Attend ance by proxy	Abs enc e	Absence from two consecutive meetings in person or not	Number of attendance of general meetings
Zhang Jian	No	13	13	11	0	0	No	4
Duan Hua	No	13	13	11	0	0	No	4
Zhang Gege	No	13	13	11	0	0	No	4
Peng Wei	No	13	13	11	0	0	No	4
Gao Hui	No	13	13	11	0	0	No	4
Wang Chunyan	No	13	13	11	0	0	No	4
Sun Minggui	Yes	13	13	13	0	0	No	4
Ma Junsheng	Yes	13	13	13	0	0	No	4
Liu Junfeng	Yes	13	13	12	0	0	No	4

Explanation for absence from two consecutive Board meetings in person.

• Applicable √Not applicable

nyan No 13 13 11 0 0 No inggui Yes 13 13 13 0 0 No nsheng Yes 13 13 13 0 0 No unfeng Yes 13 13 12 0 0 No Explanation for absence from two consecutive Board meetings in person. Applicable √Not applicable	4 4 4 4
Number of Board meetings held in the year	13
Of which: Number of on-site meetings	0
Number of meetings held by telecommunication	11
Number of meetings held both on site and by telecommunication	2

(II) Objections raised by directors on matters of the Company

• Applicable √Not applicable

(III) Others

• Applicable √Not applicable

VII. Specialized Committees under the Board of Directors

• Applicable √Not applicable

• (1) Members of the specialized committees

	Specialized committees	Specialized committees	Members	Members	Members
	Audit Committee		Ma Junsheng, Sun Minggui, Liu Junfeng
	Nomination Committee		Liu Junfeng, Zhang Jian, Ma Junsheng
	Remuneration and Appraisal Committee		Sun Minggui, Duan Hua, Liu Junfeng
	Strategy and ESG Committee		Zhang Jian, Sun Minggui, Liu Junfeng, Ma Junsheng, Wang Chunyan
Convening date		Content of meeting		Important comments and suggestions	Other performance of duties
April 7, 2023		Reviewed the Proposal on the Annual Report of 2022		Agreed to submit for	Nil

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and its Summary, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2022, the Proposal on the Final Financial Report of 2022, the Proposal on the Special Report on Deposit and Use of Raised Funds in 2022, the Proposal on the 2022 Internal Control Evaluation Report ,the Proposal on Reappointing the Financial Audit Firm and Internal Control Audit Firm for 2023. Board of Directors' review April 26, 2023 Reviewed the Proposal on the First Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil August 21, 2023 Reviewed the Proposal on the Semi-annual Report of 2023 and its Summary, and the Proposal on the Special Report on Deposit and Use of Raised Funds in the First Half of 2023. Agreed to submit for Board of Directors' review Nil October 23, 2023 Reviewed the Proposal on the Third Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil (3) The Remuneration and Appraisal Committee held four meeting during the reporting period	and its Summary, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2022, the Proposal on the Final Financial Report of 2022, the Proposal on the Special Report on Deposit and Use of Raised Funds in 2022, the Proposal on the 2022 Internal Control Evaluation Report ,the Proposal on Reappointing the Financial Audit Firm and Internal Control Audit Firm for 2023. Board of Directors' review April 26, 2023 Reviewed the Proposal on the First Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil August 21, 2023 Reviewed the Proposal on the Semi-annual Report of 2023 and its Summary, and the Proposal on the Special Report on Deposit and Use of Raised Funds in the First Half of 2023. Agreed to submit for Board of Directors' review Nil October 23, 2023 Reviewed the Proposal on the Third Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil (3) The Remuneration and Appraisal Committee held four meeting during the reporting period	and its Summary, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2022, the Proposal on the Final Financial Report of 2022, the Proposal on the Special Report on Deposit and Use of Raised Funds in 2022, the Proposal on the 2022 Internal Control Evaluation Report ,the Proposal on Reappointing the Financial Audit Firm and Internal Control Audit Firm for 2023. Board of Directors' review April 26, 2023 Reviewed the Proposal on the First Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil August 21, 2023 Reviewed the Proposal on the Semi-annual Report of 2023 and its Summary, and the Proposal on the Special Report on Deposit and Use of Raised Funds in the First Half of 2023. Agreed to submit for Board of Directors' review Nil October 23, 2023 Reviewed the Proposal on the Third Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil (3) The Remuneration and Appraisal Committee held four meeting during the reporting period	and its Summary, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2022, the Proposal on the Final Financial Report of 2022, the Proposal on the Special Report on Deposit and Use of Raised Funds in 2022, the Proposal on the 2022 Internal Control Evaluation Report ,the Proposal on Reappointing the Financial Audit Firm and Internal Control Audit Firm for 2023. Board of Directors' review April 26, 2023 Reviewed the Proposal on the First Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil August 21, 2023 Reviewed the Proposal on the Semi-annual Report of 2023 and its Summary, and the Proposal on the Special Report on Deposit and Use of Raised Funds in the First Half of 2023. Agreed to submit for Board of Directors' review Nil October 23, 2023 Reviewed the Proposal on the Third Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil (3) The Remuneration and Appraisal Committee held four meeting during the reporting period	and its Summary, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2022, the Proposal on the Final Financial Report of 2022, the Proposal on the Special Report on Deposit and Use of Raised Funds in 2022, the Proposal on the 2022 Internal Control Evaluation Report ,the Proposal on Reappointing the Financial Audit Firm and Internal Control Audit Firm for 2023. Board of Directors' review April 26, 2023 Reviewed the Proposal on the First Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil August 21, 2023 Reviewed the Proposal on the Semi-annual Report of 2023 and its Summary, and the Proposal on the Special Report on Deposit and Use of Raised Funds in the First Half of 2023. Agreed to submit for Board of Directors' review Nil October 23, 2023 Reviewed the Proposal on the Third Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil (3) The Remuneration and Appraisal Committee held four meeting during the reporting period	and its Summary, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2022, the Proposal on the Final Financial Report of 2022, the Proposal on the Special Report on Deposit and Use of Raised Funds in 2022, the Proposal on the 2022 Internal Control Evaluation Report ,the Proposal on Reappointing the Financial Audit Firm and Internal Control Audit Firm for 2023. Board of Directors' review April 26, 2023 Reviewed the Proposal on the First Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil August 21, 2023 Reviewed the Proposal on the Semi-annual Report of 2023 and its Summary, and the Proposal on the Special Report on Deposit and Use of Raised Funds in the First Half of 2023. Agreed to submit for Board of Directors' review Nil October 23, 2023 Reviewed the Proposal on the Third Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil (3) The Remuneration and Appraisal Committee held four meeting during the reporting period	and its Summary, the Proposal on the Plan for Profit Distribution and Capitalization of Capital Reserves in 2022, the Proposal on the Final Financial Report of 2022, the Proposal on the Special Report on Deposit and Use of Raised Funds in 2022, the Proposal on the 2022 Internal Control Evaluation Report ,the Proposal on Reappointing the Financial Audit Firm and Internal Control Audit Firm for 2023. Board of Directors' review April 26, 2023 Reviewed the Proposal on the First Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil August 21, 2023 Reviewed the Proposal on the Semi-annual Report of 2023 and its Summary, and the Proposal on the Special Report on Deposit and Use of Raised Funds in the First Half of 2023. Agreed to submit for Board of Directors' review Nil October 23, 2023 Reviewed the Proposal on the Third Quarter Report of 2023. Agreed to submit for Board of Directors' review Nil (3) The Remuneration and Appraisal Committee held four meeting during the reporting period
Convening date	Content of meeting			Important comments and suggestions		Other perform ance of duties
March 20,2023	Reviewed the Proposal on the 2023 Stock Option Incentive Plan (Draft) and Its Summary, and the Proposal on the Assessment and Management Measures for the Implementation of the 2023 Stock Option Incentive Plan.			Agreed to submit for Board of Directors' review		Nil
April 14, 2023	Reviewed the Proposal on the Remuneration of Senior Management in 2022 and Remuneration Program for 2023, the Proposal on the Allowance for the Directors of the Fifth Board of Directors, the Proposal on Adjusting the List of Incentive Recipients and the Number of Shares Granted under the 2023 Stock Option Incentive Plan, and the Proposal on Granting Stock Options to Incentive Recipients.			Agreed to submit for Board of Directors' review		Nil
May 19,2023	Reviewed the Proposal on Adjusting the Number of Shares Granted and the Repurchase Price under the 2021 Restricted Stock Incentive Plan, the Proposal on the Repurchase and Cancellation of the First Grant of Restricted Shares under the 2021 Restricted Stock Incentive Plan, and the Proposal on the Achievement of the Unlocking Conditions for the First Unlocking Period of the First Grant under the 2021 Restricted Stock Incentive Plan.			Agreed to submit for Board of Directors' review		Nil
August 21,2023	Reviewed the Proposal on Adjusting the Number of Shares Granted and the Exercise Price under the 2023 Stock Option Incentive Plan, and the Proposal on the Achievement of the Conditions for Lifting the First Restriction Period for Reserved Shares underthe2021 Restricted Stock IncentivePlan.			Agreed to submit for Board of Directors' review		Nil
(4) Strategy and ESG Committee held two meetings during the reporting period.
Convening date		Content of meeting	Important comments and suggestions		Other performanc e of duties
February 20,2023		Reviewed the Proposal on Finalizing the Public Issuance Plan for Convertible Corporate Bonds, the Proposal on Listing Convertible Corporate Bonds, and	Agreed to submit for Board of Directors'review		Nil

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	the Proposal on Opening Special Accounts for Raised Funds and Signing Supervisory Agreements.
April 14, 2023	Reviewed the Proposal on the Company’s Strategy and Development Planning.	Agreed to submit for Board of Directors'review	Nil

• (5) Specification of Objections

• Applicable √Not applicable

VIII. Risks Detected by the Board of Supervisors

• Applicable √Not applicable

IX. Employees of the Company as the Parent and Its Principal Subsidiaries at the Period-end

(I) Employees

Period-end (I) Employees
Number of in-service employees of the Company as the parent	1,671
Number of in-service employees of principal subsidiaries	7,808
Total number of in-service employees	9,479
Number of retirees to whom the Company as the parent or its principal subsidiaries need to pay retirement pensions	0
Breakdown byFunction
Function	Number
Production	5,537
Sales	1,352
Technical	1,089
Financial	185
Administrative	1,316
Total	9,479
Breakdown by Education Background
Education	Number (person)
Doctor	5
Master	79
Undergraduate	1,487
Junior College and Technical secondary school	1,789
High school and below	6,119
Total	9,479

(II) Remuneration policy

√Applicable Not applicable

The Company has established an assessment mechanism oriented towards responsibility outcomes and a contribution-based compensation and benefits system, implementing a relatively fair internal and competitive external compensation policy. The forms of value distribution within the Company include opportunities, authority, honors, salaries, bonuses, medical insurance, equity, dividends, and other benefits.

(III) Training plans

√Applicable Not applicable

The Company prioritizes the appreciation of human capital, continuously conducting customized professional empowerment training and improving the organizational mechanism of professional study groups, thereby advancing the development of an internal trainer team. In alignment with strategic goals, job requirements, and operational challenges, the Company has developed training programs that meet strategic and business needs and consistently tracks

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the practical application of theoretical knowledge.

The Company has established a three-tier training system, providing comprehensive professional support tailored to different functional areas such as leadership, innovation, new retail, and services. In 2023, the Company conducted over 700 internal and external training sessions, enhancing the professional skills of more than 500 employees.

(IV) Labor outsourcing

√Applicable Not applicable

Total remuneration paid for labor outsourcing RMB 149,292,977

X. Plan on Profit Distribution or Conversion of Capital Reserve

(I) Formulation, implementation or adjustment of the cash dividend policy

√Applicable Not applicable

1、Formulation of the Cash Dividend Policy

The Company has clearly stipulated the principles, decision-making mechanisms, distribution standards, and ratios for profit distribution in the Articles of Association and the Shareholder Return Plan. These provisions comply with relevant regulatory documents, including the Guidelines for the Supervision of Listed Companies No. 3 - Cash Dividends of Listed Companies (revised in 2023) and the Self-Regulatory Supervision Guidelines for Listed Companies No. 5 - Equity Distribution (revised in February 2023).

2、Implementation of the Cash Dividend Policy

（1）The Company's 2023 Semi-Annual Profit Distribution Plan was reviewed and approved at the 12th meeting of the Fifth Board of Directors. In the first half of 2023, based on the total share capital of 861,924,656 shares before the implementation of the plan, the Company distributed a cash dividend of 3.48 yuan (inclusive of tax) per 10 shares to all shareholders, totaling 299,949,780.29 yuan in cash dividends.

（2）During the reporting period, the Company repurchased shares using its own funds through centralized bidding, with the total amount reaching 399,920,800.87 yuan (excluding transaction commissions and other fees).

（3）The Company's 2023 Annual Profit Distribution Plan was reviewed and approved at the 21st meeting of the Fifth Board of Directors. In 2023, the Company plans to distribute a cash dividend of 5.34 yuan (inclusive of tax) per 10 shares to all shareholders. As of December 31, 2023, the Company’s total share capital is 861,925,007 shares. After deducting the 14,130,524 shares in the Company’s share repurchase account, the basis for distribution is 847,794,483 shares, resulting in a total proposed cash dividend of 452,722,253.92 yuan (inclusive of tax).

For the year, the Company’s cash dividend (including 299,949,780.29 yuan cash dividend already distributed for the first half of 2023) accounts for 40.01% of the total.

From the date of disclosure of this Report to the equity registration date for the implementation of equity distribution, Due to changes in the total share capital or the number of shares in the share repurchase account resulting from the conversion of convertible bonds, share repurchases, the use of repurchased shares for granting restricted stock under equity incentives, the repurchase and cancellation of shares granted under equity incentives, and the repurchase and cancellation of shares related to significant asset restructurings, the Company intends to maintain the ratio of distribution and conversion unchanged, and correspondingly adjust the amount of profit distribution and capital reserve capitalization. This matter needs to be submitted to the 2023 annual general meeting of the Company for consideration.

(II) Special description of cash dividend policy

√Applicable Not applicable

Whether in compliance with regulations of the Articles of Association and √Yes □No

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requirements of the resolutions of the general meeting
Whether the standard and ratio of dividends were clear	√Yes □No
Whether relevant procedures and mechanisms for decision-making were Complete and comprehensive	√Yes □No
Whether independent directors performed their duties and responsibilities	√Yes □No
Whether minority shareholders were given the opportunity to fully express their views and demands, and whether their legitimate interests were adequately protected	√Yes □No

(III) If, during the reporting period, the Company was profitable and the parent Company's profits available for distribution to shareholders were positive, but no cash dividend distribution plan was proposed, the Company should provide a detailed disclosure of the reasons and the intended uses and plans for the undistributed profits.

Applicable √Not applicable

(IV) Profit Distribution and Capitalization of Capital Reserves during the reporting period

√Applicable Not applicable

√ApplicableNot applicable
Number of bonus shares for every 10 shares	0
Dividends for every 10 shares (RMB) (tax-inclusive)	8.82
Number of shares converted from capital reserves for every 10 shares	0
Amount of cash dividends (tax-inclusive)	752,672,034.21
Net profit attributable to common shareholders of the Company in the annual consolidated statement of dividends	1,881,115,782.35
Percentage of the net profit attributable to common shareholders of the Company in the consolidated statements (%)	40.01
Shares repurchased in cash which are recognized as cash dividends	399,920,800.87
Total amount of dividends (tax-inclusive)	1,152,592,835.08
Percentage of total dividends in the net profit attributable to common shareholders of the Company in the consolidated statements (%)	61.27

XI. Status and Impact of Share Incentive Schemes, Employee Shareholding Plan or Other Incentive Measures for Employees

(I) Relevant incentive matters disclosed in temporary announcement with no subsequent progress or change

√Applicable Not applicable

	Overview	Index to the disclosed information
2023 Stock Option Incentive Plan	On March 20, 2023, the 5th Meeting of the Fifth Board of Directors decided to implement the 2023 Stock Option Incentive Plan, proposing to grant 4.812 million stock options to incentive recipients at a grant price of 48.07 yuan per option.	See the relevant announcements disclosed on the website of Shanghai Stock Exchange on March 21, 2023 for details.
	On April 3, 2023, after the public announcement period for the list of incentive recipients, 2 proposed incentive recipients resigned, reducing the number of incentive recipients from 328 to 326.	See the relevant announcements disclosed on the website of Shanghai Stock Exchange on April 7, 2023 for details.
	On April 14, 2023, the First Extraordinary General Meeting of Shareholders in 2023 approved the implementation of the 2023 Stock Option Incentive Plan and authorized the board of directors to handle related matters. The 6th Meeting of the Fifth Board of Directors approved the adjustment of the list of incentive recipients and the number of stock options granted under the 2023 Stock Option Incentive Plan, and decided to grant 4.776	See the relevant announcements disclosed on the website of Shanghai Stock Exchange on April 15, 2023 for details.

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	million stock options to 324 incentive recipients, with the grant date set as April 14, 2023.
	On April 19, 2023, the Company completed the stock option incentive plan of 2023 with China Securities Depository and Clearing Corporation Limited Shanghai Branch.	See the relevant announcements disclosed on the website of Shanghai Stock Exchange on April 21, 2023 for details.
	On August 21, 2023, the 12th Meeting of the Fifth Board of Directors approved the adjustment of the number of stock options granted and the exercise price under the 2023 Stock Option Incentive Plan due to the implementation of equity distribution. The adjusted number of stock options granted is 7.164 million, and the exercise price is 31.18 yuan per option.	See the relevant announcements disclosed on the website of Shanghai Stock Exchange on August 22, 2023 for details.
2021 Restricted Stock Incentive Plan	On May 19, 2023, the 8th Meeting of the Fifth Board of Directors approved the adjustment of the number of shares granted and the repurchase price under the 2021 Restricted Stock Incentive Plan due to the implementation of equity distribution. The adjusted number of shares granted is 14.364 million, and the repurchase price is 8.53 yuan per share. Additionally, the meeting approved the repurchase and cancellation of 126,000 restricted shares held by 4 incentive recipients who no longer qualify due to resignation. The meeting also confirmed the achievement of the conditions for lifting the restrictions on the first batch of restricted shares granted under the 2021 Restricted Stock Incentive Plan, allowing 97 incentive recipients to unlock a total of 4.158 million shares.	See the relevant announcements disclosed on the website of Shanghai Stock Exchange on May 20, 2023 for details.
	On June 1, 2023, the first batch of 4.158 million shares granted under the 2021 Restricted Stock Incentive Plan were unlocked and made available for trading.	See the relevant announcements disclosed on the website of Shanghai Stock Exchange on May 26, 2023 for details.
	On July 27, 2023, the Company completed the repurchase and cancellation of 126,000 restricted shares held by 4 incentive recipients who no longer qualified due to resignation.	See the relevant announcements disclosed on the website of Shanghai Stock Exchange on July 25, 2023 for details.
	On August 21, 2023, the 12th Meeting of the Fifth Board of Directors approved the achievement of the conditions for lifting the restrictions on the first batch of reserved shares granted under the 2021 Restricted Stock Incentive Plan, allowing 14 incentive recipients to unlock a total of 113,400 shares. The shares will be available for trading on August 28, 2023.	See the relevant announcements disclosed on the website of Shanghai Stock Exchange on August 22, 2023 for details.

(II) Incentives not disclosed in temporary announcement or with subsequent progress

Equity incentive situation

• Applicable √Not applicable

Other description

• Applicable √Not applicable

Employee stock ownership plan

• Applicable √Not applicable

Other incentive measures

• Applicable √Not applicable

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(III) Equity incentives granted to directors and senior management during the reporting period

Applicable √Not applicable

• √Applicable Not applicable

In: Share

	In: Share
Name	Position	Restricted Shares held at the period-begin	Restricted Shares granted in the reporting period	Grant price (Yuan)	Unlocked shares	Shares still in lockup	Restricted shares held at the period-end	Market value at the end of reporting period (Yuan)
Gao Hui	Director, Vice GM	1,680,000	0	/	756,000	1,764,000	1,764,000	25.04
Luo Qingyi	Vice GM	840,000	0	/	378,000	882,000	882,000	25.04
Zheng Hui	Vice GM, Chief Financial Officer	560,000	0	/	252,000	588,000	588,000	25.04
Total	/	3,080,000	0	/	1,386,000	3,234,000	3,234,000	/

Note: In May 2023, the Company implemented the 2022 annual equity distribution, issuing 5 additional shares for every 10 shares to all shareholders from the capital reserve. The number of restricted shares held by incentive recipients increased proportionally.

(IV) Formulation and implementation of appraisal and incentive mechanisms for senior management during the reporting period

√Applicable Not applicable

The Company's appraisal and incentive mechanisms for senior management are based on "developing alongside the organization and achieving organizational goals". Suitable performance indicators are selected according to business characteristics, including financial, operational, quality metrics, key events, and veto items. The Company sets reasonable short-term and long-term performance targets for the departments or business units they oversee, regularly monitors and ensures the achievement of these targets, and implements short-term and long-term incentives based on the assessment outcomes and the achievement of organizational goals.

XII. Establishment and Implementation of Internal Control System in the Reporting Period

√Applicable Not applicable

The Company has established an internal control management system in strict compliance with the regulatory requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange, and has continuously refined it in alignment with its operational realities. In 2023, the Company maintained effective internal controls over financial reporting in all significant aspects as mandated by the corporate internal control standards and related regulations, with no major deficiencies identified. For detailed information, please refer to the 2023 Annual Internal Control Evaluation Report disclosed on the website of the Shanghai Stock Exchange.

Description of major defects existing in internal control in the reporting period.

Applicable √Not applicable

XIII. Management and Control of Subsidiaries during the Reporting Period

√Applicable Not applicable

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The Company rigorously adheres to laws, regulations, and normative documents from regulatory authorities, using the Subsidiary Management System approved by the Board of Directors as a foundation. It effectively manages and supervises personnel, finance, operations, investment decisions, information disclosure, audit oversight, and the management of archives and seals across its subsidiaries. This ensures standardized management and risk control of subsidiaries. In line with the Company’s overall strategic planning, subsidiaries are required to develop relevant business operation plans, risk management procedures, and internal control systems, continually enhancing the standardization of their operations.

XIV. Information about the Internal Control Audit Report

√Applicable Not applicable

The Company engaged Ernst & Young Hua Ming LLP (a special general partnership) to audit the implementation of internal controls for the year 2023 and issued a standard unqualified Internal Control Audit Report. For details, see the Internal Control Audit Report 2023 disclosed on the same day as the Annual Report.

Disclosure of the internal control audit report: Yes

Opinion type of the internal control audit report: standard unqualified opinions

XV. Rectification of Issues in Self- inspection of Special Actions for Governance of the Listed Company

Not applicable

XVI. Others

Applicable √Not applicable

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Section 5 Environmental and Social Responsibilities

I. Environmental Information

I. Environmental Information
Whether there is an environmental protection mechanism in place	Yes
Investment in environmental protection during the reporting period (in ten thousand yuan)	1,819.85

(I) Environmental protection status of the Company and its main subsidiaries as key pollutant discharging entities published by the environmental protection department

1. Information on pollutant discharging

√Applicable Not applicable

According to the “Announcement on the List of Key Environmental Supervision Units in Tianjin for 2023” issued by the Tianjin Municipal Bureau of Ecology and Environment, the Group's subsidiary Tianjin Vehicle was designated in March 2023 as a key air pollutant emission unit, a key water pollutant emission unit, and a key environmental risk management unit in Tianjin.

According to the “Notice on Issuing the List of Key Environmental Supervision Units for 2023” by the Shangqiu Municipal Bureau of Ecology and Environment, the Company's subsidiary, Henan Vehicle, was designated in April 2023 as a key environmental risk management unit in Shangqiu.

Tianjin Vehicle and Henan Vehicle comply with the relevant requirements of laws, regulations, and emission permits. They disclose relevant information through the National Emission Permit Management Information Platform, including the names of major pollutants, emission methods, emission concentrations, and total emissions, as well as the construction and operation of pollution control facilities, thereby allowing for public supervision.

2. Construction and operation situation of pollution prevention and control facilities

√Applicable Not applicable

Tianjin Vehicle and Henan Vehicle have constructed various pollutant treatment facilities strictly according to regulations, standards, environmental impact assessment and approval requirements, and these pollutant treatment facilities are operating well. They have strictly executed national, local discharging standards to ensure that the pollutant discharging concentration meet the standards, and the solid waste has been properly disposed. Details are as follows:

(1) Tianjin Vehicle

The main air pollutants form Tianjin Vehicle include paint spraying and drying exhaust, powder spraying exhaust, powder curing exhaust, and gas combustion exhaust. The primary pollutant factors are dust, toluene, xylene, VOCs, soot, SO2, and NOx. All painting booths, leveling rooms, and drying rooms of each production line are sealed. The organic exhaust gas is primarily purified through a "dry filter cotton + zeolite rotor adsorption + RTO" system and then discharged through exhaust stacks. The main exhaust outlets of the coating workshop are equipped with online monitoring instruments, which are connected to the Tianjin Municipal Bureau of Ecology and Environment, enabling real-time monitoring of air pollutant emissions. The Company's exhaust gas treatment facilities are operating well, and the emission levels of toluene, xylene, VOCs, particulate matter, soot, SO2, and NOx meet the emission standards.

The wastewater discharged by Tianjin Vehicle includes production wastewater and domestic sewage, with a focus on monitoring painting wastewater. The main pollutant factors include pH, COD, BOD5, SS, ammonia nitrogen, total phosphorus, total nitrogen, and petroleum substances. The plant has a sewage treatment station with a capacity of 500 m³/d, which treats production wastewater, including painting wastewater. The treatment process involves "flocculation sedimentation + micro-electrolysis + Fenton + biological contact oxidation". The

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treated water meets the Class III standard of the "Integrated Wastewater Discharge Standard" (DB12/356-2018) and is then discharged into the Tianyu Sewage Treatment Plant of the Ziya Economic and Technological Development Zone High-Tech Industrial Park through the park's sewage pipeline network for further treatment. Additionally, the plant implements a separation system for rainwater and sewage, with flow directions marked on the sewage and rainwater pipelines. Production wastewater, domestic sewage, and rainwater are discharged separately. The treated wastewater flows through the municipal pipeline network to a specialized sewage treatment plant. The plant's sewage treatment facilities are operating well, and the discharge levels of various pollutant factors meet the standards. The main sewage discharge outlet of the plant is equipped with online monitoring instruments, which are connected to the Tianjin Municipal Bureau of Ecology and Environment, enabling real-time monitoring of the compliance of external wastewater discharge.

Tianjin Vehicle has facilities such as a hazardous waste temporary storage room and a general solid waste recycling area. The construction of the hazardous waste temporary storage room complies with the standards of the “Pollution Control Standard for Hazardous Waste Storage”. General industrial solid waste is sorted, with recyclable materials handed over to third-party professional agencies for recycling. Production and domestic waste are collected and periodically removed by sanitation departments, while hazardous waste is safely disposed of by qualified professional companies. In 2023, all hazardous waste generated by Tianjin Vehicle was transferred and disposed of in compliance with legal requirements.

In addition to the aforementioned environmental protection measures, Tianjin Vehicle has also implemented corresponding measures to control noise, ensuring compliance with national and local environmental protection requirements.

(2) Henan Vehicle

The main pollutant factors in the wastewater discharged by Henan Vehicle include pH, COD, ammonia nitrogen, SS, and total phosphorus. The plant has a wastewater treatment station with a capacity of 100 m³/d to treat production wastewater, using a process of "pretreatment + physicochemical reaction + filtration + biochemical treatment". The treated production and domestic wastewater are discharged into a specialized municipal sewage treatment plant. The plant's sewage treatment facilities are operating well, and the discharge levels of various pollutant factors meet the standards；

Henan Vehicle has facilities such as a hazardous waste temporary storage room and a general solid waste recycling area. The construction of the hazardous waste temporary storage room complies with the standards of the "Pollution Control Standard for Hazardous Waste Storage”. General industrial solid waste is sorted, with recyclable materials handed over to qualified units for recycling. Production and domestic waste is collected and periodically removed by sanitation departments, while hazardous waste is safely disposed of by qualified professional companies. In 2023, all hazardous waste generated by Henan Vehicle was transferred and disposed of in compliance with legal requirements.

In addition to the aforementioned environmental protection measures, Henan Vehicle has also implemented corresponding measures to control exhaust gas and noise, ensuring compliance with national and local environmental protection requirements.

3. Environmental impact assessment of construction project and other administrative licenses for environmental protection

√Applicable Not applicable

Strictly according to the requirements of laws and regulations, the Company prepares environmental impact assessment (EIA) documents and obtains EIA approval for new and expanding projects requiring environmental protocols, constructing strictly in accordance with legal and regulatory requirements. The Company performs the completion and acceptance procedures of environmental protection according to laws and regulations after the completion of the construction.

4. Emergency plan for environmental accident

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√Applicable Not applicable

Tianjin Vehicle and Henan Vehicle filed their contingency plans for environmental emergencies in local environmental protection administrations in August 2021 and August 2022 respectively and received the corresponding filing receipt. They further inspected risk sources and took relevant corrective measures to improve environmental risk prevention mechanism, and reduce the possibility of environmental risk accidents. Tianjin Vehicle and Henan Vehicle have organized relevant personnel every year to carry out emergency drills for environmental risk accidents in order to improve emergency response capacities.

5. Environmental self-monitoring program

√Applicable Not applicable

Tianjin Vehicle and Henan Vehicle have online monitoring systems installed at the main waste gas and wastewater discharging ports for real-time monitoring of principal pollutants, and monitoring data is directly uploaded to environmental protection data platform, various pollutants are discharged in conformity with relevant standards. Tianjin Vehicle and Henan Vehicle maintain operation and maintenance records for waste gas and wastewater treatment facilities, as well as solid and hazardous waste, in daily production.

Tianjin Vehicle and Henan Vehicle entrusts qualified testing institutions to regularly monitor waste water, waste gas and noise strictly in accordance with “Self-Monitoring Technical Guidance for Pollutant Discharging Entities” and other standards, as well as monitoring frequency requirement of environmental impact evaluation documents and pollutant discharging license. The testing report is uploaded to the pollution source monitoring data management and information sharing platform.

6. Administrative penalty due to environmental issues in the reporting period

Applicable √Not applicable

7. Other environmental information that should be disclosed

Applicable √Not applicable

(II) Description of environmental protection situation of companies other than those defined as key pollutant-discharging entities

√Applicable Not applicable

1. Administrative penalty due to environmental issues

Applicable √Not applicable

2. Other environmental information disclosed with reference to key pollutant-discharging entities

√Applicable Not applicable

The Company upholds the concept of green and high-quality development, prioritizing green production. It thoroughly implements the principles of sustainable development, environmental protection, and green low-carbon practices in all business activities. The Company has established a comprehensive green management system, integrating it into all aspects of production operations and environmental development. This approach aims to create a modern production enterprise characterized by green products, clean production, beautiful environment, and scientific management. The Company and its subsidiaries continuously improve the environmental management system to promote high-quality development. Several subsidiaries have already obtained environmental management system certification.

The Company and its subsidiaries strictly abide by relevant laws, regulations and standards. All new, reconstruction and expansion projects have gone through the EIA procedures, with their construction contents consistent with the EIA approval, and have passed the completion acceptance of environmental protection. Relevant subsidiaries actively manage the operation of pollutant prevention and control facilities to ensure satisfactory treatment capacity of the

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facilities, strictly implement the management regulations of pollutant discharge licenses, carry out daily and regular monitoring of pollutants, and realize up-to-standard discharge of waste gas, wastewater and noise and compliant disposal of solid waste. All relevant subsidiaries have developed emergency plans for sudden environmental incidents as required, and organized regular drills.

3. Reasons of not disclosing other environmental information

Applicable √Not applicable

(III) Relevant information favorable to ecological protection, pollution prevention and control and environmental responsibility fulfillment

√Applicable Not applicable

The Company integrates the concept of sustainable development into its production and operation, strengthens the green management throughout the product life cycle by establishing and improving the environmental management system, constantly improves the utilization efficiency of resources and energy, and actively creates an efficient, clean, low-carbon and recycling green manufacturing system. The Company and its subsidiaries regularly inspect and improve high-energy-consuming equipment, enhance the analysis of energy consumption and improve the energy utilization rate; actively selects energy-saving and water-saving products, extensively uses recyclable packaging, and works to extend the lifespan of turnover boxes, in an effort to reduce the consumption of resources and energy.

(IV) Measures taken during the reporting period to reduce carbon emission and their effectiveness

effectiveness
Whether carbon emission reduction measures were taken	Yes
Reduction in CO2 equivalent emissions (Unit: Ton)	84.42
Carbon reduction measures (e.g., using clean energy in power generation, using carbon reduction technologies in production, developing and producing new products for carbon reduction)	Tianjin Vehicle has added a new vacuum paint sludge drying machine. This machine can remove more than 75% of the water content from solid waste paint sludge through the drying process. With a daily processing capacity of 4,000 kg, the dried paint sludge is reduced to less than 1,000 kg. This effectively reduces energy consumption in subsequent solid waste treatment processes, significantly lowering carbon emissions in the solid waste treatment phase. Additionally, the entire drying process for the paint sludge is conducted in a sealed vacuum state, and the resulting gases are treated with specialized equipment to prevent environmental pollution.

Detailed description

Applicable √Not applicable

II. Performance of Social Responsibilities

(I) Whether a social responsibility report, sustainable development report or ESG report was disclosed separately

√Applicable Not applicable

For details about the Company’s performance of its social responsibilities, please refer to the Environmental, Social and Governance (ESG) Report 2023 published on the same day as the Annual Report of 2023.

(II) Details of social responsibility works

√Applicable Not applicable

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Donation and public welfare projects	Quantity/Content	Descriptions
Total investment (in Ten ThousandYuan)	612.11	Mainly for charitable donations, education donation, etc.

Detailed description

Applicable √Not applicable

III. Particulars on the Efforts to Consolidate and Expand Its Achievements in Poverty Alleviation and Rural Area Invigoration

√Applicable Not applicable

√ApplicableNot applicable
Poverty alleviation and rural revitalization projects	Quantity/Content
Total investment (in Ten Thousand Yuan)	3.00
Including: funds (in Ten Thousand Yuan)	3.00
Forms of assistance (e.g., poverty alleviation through industrial development, poverty alleviation through employment, poverty alleviation through education, etc.)	The Company actively fulfills its corporate social responsibility, engaging in public welfare activities and focusing on rural revitalization and educational development. In August 2023, the Company made a special donation through the Guigang City Gangbei Communist Youth League to support students from financially disadvantaged families in Wule Town, Gangbei District. This donation was used to cover tuition fees and living expenses, contributing to the rural revitalization and educational development of Wule Town. In July 2023, the Company donated to the "6.30 Support Rural Revitalization"charity event in Dongguan City.

Detailed description

• Applicable √Not applicable

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Section 6 Significant Events

I. Fulfillment of Commitments

(I) Commitments of the Company’s actual controller, shareholders, related parties, acquirer, as well as the Company and other relevant entities during or up to the reporting period

√Applicable Not applicable

	Commitm ent Backgrou nd	Commitm ent Backgrou nd		Commitm ent Category		Promisor		Commitm ent Descripti on		Commitment Duration	Commitment Duration			Whether	Whether		Whether it		If it is not timely performed, the specific reasons should be stated		If it is not timely	If it is not timely
	Commitm
														there is a			is timely				performed, the
		ent								Commitment
													deadline for									plan for the
	Ba	ckgrou									Duration
													imp		lementa							further step
		nd
															tion		performed				should be stated
				Restricted shares	Zhang Jian and Zhang Gege			Note 1	June 15, 2021 to June 14, 2024						Yes		Yes		N/A		N/A
				Restricted shares	Yancheng Dingai and its partners			Note 2	June 15, 2021 to June 14, 2024						Yes		Yes		N/A		N/A
				Others	Zhang Jian, Zhang Gege, Yancheng Dingai and its partners, Liu Jianxin, Peng Wei			Note 3	Long term						No		Yes		N/A		N/A
	Commitm
	ents
				Others	The Company, Zhang Jian, Zhang Gege, Duan Hua, Liu Jianxin, Peng Wei, Fang Hao, Wang Quanzhang, Li Yubao, Hao Hong, Wang Chunyan, Ren Yong, Hu Yupeng			Note 4	June 15, 2021 to June 14, 2024						Yes		Yes		N/A		N/A
	related to
	IPO
				Solution to peer competitio n	Zhang Jian and Zhang Gege			Note 5	Long term						No		Yes		N/A		N/A

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			Solution to related party transactio ns	Zhang Jian and Zhang Gege	Note 6	Long term	No	Yes	N/A	N/A
	Commitm ents related to refinancin g		Restricted shares	Zhang Jian, Zhang Gege, Gao Hui, Peng Wei, Wang Chunyan, Zheng Hui, Li Yubao, Luo Qingyi, Duan Hua, Liu Tingxu	Note 7	February 23, 2023 to September 3, 2023	Yes	Yes	N/A	N/A
			Others	Sun Minggui, Liu Junfeng, Ma Junsheng, Xu Peng, Li Yan	Note 8	February 23, 2023 to September 3, 2023	Yes	Yes	N/A	N/A
			Others	Zhang Jian, Duan Hua, Zhang Gege, Gao Hui, Peng Wei, Wang Chunyan, Sun Minggui, Liu Junfeng, Ma Junsheng, Zheng Hui, Li Yubao, Luo Qingyi	Note 9	Long term	No	Yes	N/A	N/A

Note 1: Commitment to lock-up of shares for IPO

The Company's controlling shareholders and actual controllers, Zhang Jian and Zhang Gege, have made the following commitment:

From the date of the Company's stock listing, I shall not transfer nor entrust the management of the shares I directly or indirectly hold that were issued prior to the public offering, nor shall I permit the Company to repurchase those shares held by me, either directly or indirectly, for a period of thirty-six months.

Upon the expiration of the stated lock-up period, I will establish subsequent shareholding plans based on commercial investment principles, while strictly adhering to the regulations of the China Securities Regulatory Commission and the stock exchanges. Should there be an intended sale of the issuer's stock, I will notify the issuer and make an announcement three trading days in advance, and will proceed in accordance with the "Company Law of the People's Republic of China”, the "Securities Law of the People's Republic of China”, and other relevant regulations of the CSRC and stock exchanges. If the sale is to be conducted through centralized competitive bidding transactions, I will report and file the reduction plan with the stock exchanges 15 trading days before the initial sale of the shares and make an announcement accordingly.

Note 2: Commitment to lock-up of shares for IPO

The Company's shareholder Yancheng Dingai and its partners have made the following commitment:

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From the date of the Company's stock listing, for a period of thirty-six months, I will not transfer or entrust the management of the shares directly or indirectly held by myself/our enterprise that were issued prior to the public offering, nor will I allow the Company to repurchase those shares held by myself/our enterprise, either directly or indirectly.

Note 3: Commitment regarding Intentions to hold and reduce shares after initial public offering

The Company's controlling shareholders and actual controllers, Zhang Jian, Zhang Gege, Yancheng Dingai and its partners, Liu Jianxin, and Peng Wei, made the following commitments:

(1) While serving as a director or senior management of the Company, I will not transfer more than 25% of the shares I directly or indirectly hold in the Company annually; and I will not transfer any shares I directly or indirectly hold in the Company within six months of resignation.

(2) I commit that if shares are reduced within two years after the expiration of the lock-up period, the reduction price will not be lower than the issuance price. Should there be dividends, bonus shares, capital reserve transfers to increase share capital, rights issues, etc., the price will be adjusted accordingly based on the ex-dividend and ex-rights status.

(3) The above commitments will not be waived due to changes in position, resignation, or similar reasons. Should non-compliance with these commitments result in losses to the Company or other investors, I shall bear the legal liability to compensate the Company or other investors as required by law.

Note 4: Commitment to stabilize the Company's stock price and share repurchase

(1) The Company has made the following commitment:

① Within three years from the date of IPO, if the closing price of the Company's stocks is consistently below the net asset value per share as per the

most recent audited financial statement for 20 consecutive trading days (adjusted accordingly if ex-rights and ex-dividends are due to cash dividends, bonus shares, capital increases, or new share issuance, the same below), the Company will initiate stock price stabilization measures—repurchasing Company shares—subject to relevant laws, regulations, and provisions without causing the share distribution to fall out of compliance with listing requirements.

② The Company's Board of Directors shall convene within five trading days from the day the conditions for initiating stock price stabilization measures

are met to deliberate the share repurchase plan, which shall then be submitted for shareholder meeting approval. The Company shall commence the repurchase on the trading day following the shareholder meeting’s approval of such plan.

③ The share repurchase price shall not exceed the net asset value per share as per the most recent audited financial statement. The methods of repurchase may include centralized competitive bidding, tender offers, or other methods approved by the securities regulatory authority. Under the premise that it does not cause the Company’s share distribution to fail to meet the listing requirements, the funds used for each share repurchase by the Company shall not be less than RMB 10 million, and the total funds used for price stabilization repurchases in a single fiscal year shall not exceed

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50% of the net profit attributed to the parent company shareholders as per the most recent audited financial statement. The cumulative total funds used for share repurchases shall not exceed the total funds raised in the Company’s initial public offering.

④ If any condition specified in the "Aima Technology Group Co., Ltd. Three-Year Post-IPO Stock Price Stabilization Plan" that terminates the implementation of stock price stabilization measures is triggered between the time the stock price stabilization plan is initiated and before the formal implementation of the stabilization measures or during their implementation, the above-mentioned stock price stabilization plan shall be terminated.

⑤ Within three years from the date the Company’s stocks are listed, if new directors (excluding independent directors) or senior management are appointed, the Company will require these newly appointed directors and senior management to adhere to the commitments made by directors and senior management at the time of the Company’s listing.

(2) The Company’s controlling shareholders and actual controllers, Zhang Jian and Zhang Gege, have made the following commitment:

① Within three years from the date of IPO, if the closing price of the Company's stocks is consistently below the net asset value per share as per the most recent audited financial statement for 20 consecutive trading days (adjusted accordingly if ex-rights and ex-dividends are due to cash dividends, bonus shares, capital increases, or new share issuance, the same below), I will, according to relevant laws, regulations, and provisions, initiate stock price stabilization measures—acquiring additional Company shares—ensuring it does not cause the Company's share distribution to fall out of compliance with listing requirements.

② If, following the completion of the Company’s stock price stabilization measures (as officially announced), the closing price of the Company's stocks remains below the net asset value per share for 10 consecutive trading days or if the closing price is consistently below the net asset value per share for 20 consecutive trading days within three months thereafter, I will initiate stock price stabilization measures.

③ Within five trading days from the day the conditions for initiating stock price stabilization measures are met, I will propose a plan to acquire additional Company shares (including the number of shares to be acquired, price range, and completion deadline) and notify the Company. The Company shall announce the acquisition plan according to the relevant regulations, and I will begin acquiring shares on the trading day following the announcement.

④ The price at which I acquire shares shall not exceed the net asset value per share at the end of the last fiscal year as audited. The number of shares I acquire in a twelve-month period from the date the conditions for initiating stock price stabilization measures are triggered shall not exceed 1% of the total number of Company shares, and the funds I use for acquiring shares shall be at least 30% of the total amount of direct or indirect after-tax cash dividends and after-tax salaries or allowances I received from the Company in the previous year.

⑤ If any condition specified in the "Aima Technology Group Co., Ltd. Three-Year Post-IPO Stock Price Stabilization Plan" that terminates the implementation of stock price stabilization measures is triggered between the time the stock price stabilization plan is initiated and before the formal implementation of the stabilization measures or during their implementation, the above-mentioned stock price stabilization plan shall be terminated.

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• ⑥ I assure that during the implementation of the Company's stock price stabilization plan, I will vote in favor of resolutions related to the repurchase of shares.

(3) The directors of the Company—Zhang Jian, Zhang Gege, Duan Hua, Liu Jianxin, Peng Wei, Fang Hao—and senior management personnel—Wang Quanzhang, Li Yubao, Hao Hong, Wang Chunyan, Ren Yong, Hu Yupeng—have made the following commitments:

① For three years from the date of the Company's listing, should the closing price of the Company's stock fall below the net asset value per share as determined by the most recent audited financial statements for 20 consecutive trading days (with adjustments made for ex-rights and ex-dividends due to cash dividends, bonus shares, capital increases, or new share issuance, the same below), I will initiate measures to stabilize the stock price by acquiring additional shares of the Company, ensuring these measures do not cause the Company's equity distribution to fall out of compliance with listing standards.

②If, following the completion of the Company's stock price stabilization measures (as officially announced), the closing price of the Company's stocks remains below the net asset value per share for 10 consecutive trading days or if the closing price is consistently below the net asset value per share for 20 consecutive trading days within three months thereafter, I will initiate further stock price stabilization measures.

③ Within five trading days from the day the conditions for initiating stock price stabilization measures are met, I will propose a plan to acquire additional Company shares (including the number of shares to be acquired, price range, and completion deadline) and notify the Company. The Company shall announce the acquisition plan in accordance with the relevant regulations, and I will commence the acquisition on the trading day following the announcement.

④ The price at which I acquire shares shall not exceed the net asset value per share as determined at the end of the last fiscal year audited. The number of shares I acquire in a twelve-month period from the date the conditions for initiating stock price stabilization measures are triggered shall not exceed 1% of the total number of Company shares, and the funds I use for acquiring shares shall be at least 30% of the total amount of direct or indirect after-tax cash dividends and after-tax salaries or allowances I received from the Company in the previous year.

⑤ Should any condition specified in the "Aima Technology Group Co., Ltd. Three-Year Post-IPO Stock Price Stabilization Plan" that terminates the implementation of stock price stabilization measures be triggered either before the formal implementation of the stabilization measures or during their implementation, the aforementioned stock price stabilization plan shall be terminated.

⑥ I assure that during the implementation of the Company's stock price stabilization plan, I will vote in favor of resolutions related to the repurchase of shares.

Note 5: Commitment regarding the resolution and avoidance of peer competition

The Company's controlling shareholders and actual controllers, Zhang Jian and Zhang Gege, have made the following commitments:

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(1) To prevent enterprises that I control or have significant influence over from entering into peer competition with Aima Technology following its public listing, I hereby commit: While I serve as a controlling shareholder and actual controller of Aima Technology, enterprises under my control or significant influence will not, either directly or indirectly, engage in any business or activities that compete with Aima Technology, within or outside of China, in any manner (including but not limited to sole proprietorship, through joint ventures, or by owning shares or other interests in another company or enterprise). Furthermore, I shall not hold any substantial management roles in any economic organization that is in peer competition with Aima Technology.

Should Aima Technology expand its business scope, I commit to ensuring that enterprises I control or significantly influence will not compete with Aima Technology’s expanded business. If I or any enterprises I control or significantly influence encounter business opportunities that could potentially compete with the current or future operations of Aima Technology, I will take all possible and reasonable steps to offer such opportunities to Aima Technology first. If Aima Technology decides not to pursue these opportunities, I and the enterprises I control or significantly influence will take feasible steps to transfer these opportunities to unrelated third parties before these opportunities move to the implementation phase, or we will withdraw from such business opportunities or take other favorable actions to safeguard Aima Technology's interests and avoid peer competition.

I will ensure that enterprises under my control or significant influence fulfill the obligations stated in this commitment letter by deploying appropriate institutional mechanisms and personnel (including but not limited to directors, managers) and by maintaining a controlling position.

(2) I assure that I will not use my status as a controlling shareholder and actual controller of Aima Technology to the detriment of the legitimate interests of Aima Technology and its minority shareholders, nor will I leverage my position to gain undue additional benefits.

(3) I confirm that each commitment in this letter is independently actionable. If I breach any of these commitments, Aima Technology has the right to demand that I and the enterprises I control or significantly influence immediately cease any competing actions, and may require me or the enterprises I control or significantly influence to compensate Aima Technology for any direct or indirect financial losses, claims liabilities, and associated costs incurred.

(4) I ensure that these commitments will remain effective and are irrevocable during the period while Aima Technology is listed on the domestic securities exchange and while I am a controlling shareholder and actual controller. Should there be any changes in relevant laws, regulations, or regulatory guidelines during this period, I will update or supplement these commitments accordingly.

Zhang Jian, as the actual controller of the Company, additionally commits:

While I serve as the actual controller of Aima Technology, I will ensure and guarantee that Aima Technology and its subsidiaries will not have any financial or business dealings with enterprises controlled by or significantly influenced by the Zhang Hong family or Zhang Ru family, nor will they act through these enterprises to the detriment of Aima Technology and its shareholders (including minority shareholders). Should I violate this commitment, I am willing to compensate for the resulting losses.

Note 6: Measures taken by the Company to minimize related-party transactions

The Company's controlling shareholders and actual controllers, Zhang Jian and Zhang Gege, have made the following commitments:

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(1) I, along with my close relatives and any other economic organizations controlled by myself or my close relatives, will endeavor to avoid or minimize related-party transactions with Aima Technology (including its consolidated subsidiaries). Transactions that Aima Technology can conduct with independent third parties through the market will be carried out between Aima Technology and such third parties. I, my close relatives, and the economic organizations controlled by us will strictly avoid lending to, using the funds of, or engaging in any acts where Aima Technology's funds are used for advance payments or debt repayments on our behalf.

(2) All necessary transactions between myself, my close relatives, the economic organizations controlled by us, and Aima Technology shall strictly adhere to market principles. These transactions will be conducted fairly and reasonably on an equal and mutually beneficial basis, with compensation equivalent to value. Where government pricing exists, it will be adhered to; where there is no government pricing, market fair price shall apply; and in the absence of both, prices will be determined based on cost plus a reasonable profit margin comparable to similar transactions.

(3) All related-party transactions between myself, my close relatives, the economic organizations controlled by us, and Aima Technology will be clearly stipulated through written contracts or agreements. These transactions will strictly adhere to the statutes of Aima Technology, the related-party transaction management system, and other relevant regulations. They will undergo the necessary legal procedures, and I will voluntarily comply with legal recusal obligations during deliberations of related-party transactions by Aima Technology's governing bodies. Transactions that require approval from competent authorities will only be executed after such approval has been obtained.

(4) I assure that I will not obtain any improper benefits through related-party transactions nor impose any undue obligations on Aima Technology. Should any violation of these commitments result in losses to Aima Technology or if benefits to Aima Technology are encroached upon through related-party transactions, Aima Technology reserves the right to unilaterally terminate such transactions, with any losses incurred to be borne by me.

(5) For unavoidable related-party transactions, I will ensure that Aima Technology strictly follows the decision-making procedures for related-party transactions, the conflict of interest recusal rules, and disclosure requirements as set out in the Company’s bylaws, to ensure that such transactions are fair, just, and equitable, thereby preventing any harm to the interests of Aima Technology and its shareholders.

(6) These commitments will remain effective for as long as I am a related party to Aima Technology.

Note 7: Commitment to subscribe for the public issuance of convertible corporate bonds

(1) The Company's controlling shareholders and actual controllers, Zhang Jian, has made the following commitments:

I will subscribe for the convertible bonds to be issued by the Company this time with my self-owned or self-raised funds. The amount of subscription will be determined according to the relevant laws, regulations and normative documents, the plan for issuance of convertible bonds and my financial condition at that time.

If I or my spouse, parents or children reduce our shares in the Company within six months before the first day of this issue, I shall not personally participate in the subscription of the convertible bonds nor entrust others to do so on my behalf.

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If I successfully subscribe for the convertible bonds, both I and my spouse, parents and children shall strictly abide by the legal requirements on short-term trading, that is, we commit not to reduce our shares in the Company and these convertible bonds from the first day of this issue to six months after the completion of this issue.

I voluntarily make the aforesaid commitment, and agree to be bound by the aforesaid commitment and to strictly abide by relevant laws, regulations and normative documents. If I or my spouse, parents or children violate the aforesaid commitment, all gains derived from such violation shall be forfeited to the Company, and I or my spouse, parents or children shall bear the legal liabilities arising therefrom according to law.

(2) Directors Zhang Gege, Gao Hui, Peng Wei, Wang Chunyan, and senior management personnel Zheng Hui, Li Yubao, Luo Qingyi have made the following commitment:

If I or my spouse, parents or children reduce our shares in the Company within six months before the first day of this issue, I shall not personally participate in the subscription of the convertible bonds nor entrust others to do so on my behalf.

If neither I, my spouse, parents, nor children reduce our shares in the Company within six months before the first day of this issue, I will decide whether to participate in the subscription of the convertible bonds according to the market conditions and my capital arrangements. If I successfully subscribe for the convertible bonds, both I and my spouse, parents and children shall strictly abide by the legal requirements on short-term trading, that is, pledge not to sell or otherwise dispose of our shares in the Company and these convertible bonds from the first day of this issue to six months after the completion of this issue.

If I or my spouse, parents or children reduce our shares in the Company or the subscribed convertible bonds in violation of the aforesaid commitment, all earnings from such violation shall belong to the Company, and I or my spouse, parents or children shall bear the legal liabilities arising therefrom according to law.

(3) Directors Duan Hua and supervisor Liu Tingxu have made the following commitment:

In this issuance of the Company’s convertible bonds, I will not participate in the subscription. If my spouse, parents and/or children have the preemptive right to the convertible bonds due to shareholding in the Company, he/she/they will decide whether to participate in the subscription of the convertible bonds according to the market conditions and capital arrangements. In case of successful subscription of the convertible bonds, both I and my spouse, parents and/or children shall strictly abide by the legal requirements on short-term trading, that is, commit not to reduce his/her/their shares in the Company (if any) from the first day of this issue to six months after the completion of this issue. Except for the above circumstances, I commit not to entrust other entities to participate in the subscription of the convertible bonds, and not to participate in the subscription of the convertible bonds by using the account of my spouse, parents or children or any other person. The above commitment reveals my genuine intention.

If I or my spouse, parents or children violate the aforesaid commitment, all earnings from such violation shall belong to the Company, and I or my spouse, parents or children shall bear the legal liabilities arising therefrom according to law.

Note 8: Commitment not to participate in the public issuance of convertible corporate bonds subscription

Directors Sun Minggui, Liu Junfeng, Ma Junsheng, and supervisors Xu Peng and Li Yan have made the following commitment:

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I will not participate in the subscription of the convertible bonds to be issued by the Company this time on my own, or through my spouse, parents or children or any other person. The above commitment reveals my genuine intention. If I participate in the subscription of the convertible bonds in violation of the above commitment, all earnings from such violation shall belong to the Company, and I shall bear the legal liabilities arising therefrom according to law.

Note 9: Commitment to measures to compensate for the immediate dilution of returns from the public issuance of convertible corporate bonds

(1) The Company's controlling shareholders and actual controllers, Zhang Jian and Zhang Gege, have made the following commitments:

① I pledge not to overstep my authority in the management of the Company nor encroach upon the Company’s interests.

② From the date this commitment is made until the completion of this public issuance of convertible corporate bonds by Aima Technology, should

there be new regulatory provisions from the China Securities Regulatory Commission (CSRC), the Shanghai Stock Exchange, or other regulatory bodies concerning compensation measures and commitments, and if the existing commitments do not meet these new provisions, I pledge to issue supplementary commitments in accordance with the latest regulations.

As a responsible party for the compensation measures, if I violate the above commitments or refuse to fulfill them, I accept that the CSRC, the Shanghai Stock Exchange, and other securities regulatory authorities may impose relevant penalties or take management measures as per their regulations and rules, and I am willing to bear the corresponding legal responsibilities.

(2) Directors Zhang Jian, Duan Hua, Zhang Gege, Gao Hui, Peng Wei, Wang Chunyan, Sun Minggui, Liu Junfeng, Ma Junsheng, and senior management personnel Zheng Hui, Li Yubao, Luo Qingyi have made the following commitments:

① I pledge not to transfer benefits gratuitously or under unfair conditions to other units or individuals, nor to use other methods to harm the interests of the Company.

② I commit to restraining my official expenditures.

③ I pledge not to use the Company’s assets for investments or consumption activities unrelated to my responsibilities.

④ I commit that the remuneration system developed by the Board of Directors or the Compensation and Evaluation Committee will be linked to the implementation of the Company’s compensation measures.

⑤ Should Aima Technology later introduce a company equity incentive policy, I pledge that the proposed conditions for exercising equity incentives will be linked to the implementation of the Company’s compensation measures.

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⑥ From the date this commitment is made until the completion of this public issuance of convertible corporate bonds, should the CSRC, the Shanghai Stock Exchange, or other regulatory bodies issue new regulatory provisions regarding compensation measures and commitments, and if the existing commitments do not meet these provisions, I pledge to issue supplementary commitments in accordance with the latest regulations.

As a responsible party for the compensation measures, if I violate the above commitments or refuse to fulfill them, I accept that the CSRC, the Shanghai Stock Exchange, and other securities regulatory authorities may impose relevant penalties or take management measures as per their regulations and rules, and I am willing to bear the corresponding legal responsibilities.

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(II) If there are earnings forecast for the assets or projects of the Company and the reporting period is still in the earnings forecast period, the Company should explain whether the asset or project reaches the original earnings forecast and give the reasons

□Already reached □Not reached √Not applicable

(III) Fulfillment of commitments on the performance and its impacts on goodwill impairment test

□Applicable √Not applicable

II. Non-Operational Occupancy of the Company’s Funds by the Controlling Shareholder and its Related Parties during the Reporting Period

□Applicable √Not applicable

III. Information on Non-Compliance Guarantees

□Applicable √Not applicable

IV. Explanation of the Board of Directors in Company on the “Non-standard Opinion Audit Report” Issued by the Accounting Firm

□Applicable √Not applicable

V. Analysis and Explanation on the Causes and Influences of the Changes in the Company’s Accounting Policies, Accounting Estimates or Correction of Major Accounting Errors

(I) Analysis and explanation of the Company on the causes and influences of the changes in the accounting policies and accounting estimates

√Applicable □Not applicable

The Interpretation “No. 16 of Accounting Standards for Business Enterprises”, issued in 2022, stipulates that for transactions that are not business combinations, do not affect accounting profit or taxable income (or deductible losses) at the time of the transaction, and result in equal taxable temporary differences and deductible temporary differences due to the initial recognition of assets and liabilities, the exemption from initial recognition of deferred income tax does not apply.

Starting from January 1, 2023, the Company has implemented this standard. For lease transactions where lease liabilities are initially recognized and included in right-of-use assets at the commencement date of the lease term, the taxable temporary differences and deductible temporary differences arising from the initial recognition of assets and liabilities will now result in the respective recognition of deferred income tax liabilities and deferred income tax assets, instead of the previous practice of not recognizing deferred income tax. According to the transition provisions, for the transactions occurring between the beginning of the earliest period presented in the financial statements in which this interpretation is first applied and the date of the accounting policy change, the Company has made adjustments. The Interpretation “No. 16 of Accounting Standards for Business Enterprises” does not have a significant impact on the deferred income tax assets and liabilities presented net in the Company's consolidated balance sheet.

(II) Analysis and explanation of the Company’s analysis on reasons and effects of the correction of major accounting errors

□Applicable √Not applicable

(III) Communication with former accounting firm

□Applicable √Not applicable

(IV) Approval procedures and other notes

□Applicable √Not applicable

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VI. Engagement/Disengagement of the CPAs

Unit: Ten Thousand Yuan (RMB) Current appointment Name of the domestic CPAs Ernst & Young Hua Ming LLP Remuneration to the domestic CPAs 320 Years of the domestic CPAs offering auditing services 11 Name of CPAs of the domestic accounting firm Guo Jing and Zhao Ruiqing Years of CPAs of the domestic accounting firm offering auditing services 2 year (Guo Jing) and1 year (Zhao Ruiqing) Name Remuneration Accounting firm for internal control audit Ernst & Young Hua Ming LLP 50 Sponsor Huatai United Securities Co., Ltd. 144	Unit: Ten Thousand Yuan (RMB) Current appointment Name of the domestic CPAs Ernst & Young Hua Ming LLP Remuneration to the domestic CPAs 320 Years of the domestic CPAs offering auditing services 11 Name of CPAs of the domestic accounting firm Guo Jing and Zhao Ruiqing Years of CPAs of the domestic accounting firm offering auditing services 2 year (Guo Jing) and1 year (Zhao Ruiqing) Name Remuneration Accounting firm for internal control audit Ernst & Young Hua Ming LLP 50 Sponsor Huatai United Securities Co., Ltd. 144	Unit: Ten Thousand Yuan (RMB) Current appointment Name of the domestic CPAs Ernst & Young Hua Ming LLP Remuneration to the domestic CPAs 320 Years of the domestic CPAs offering auditing services 11 Name of CPAs of the domestic accounting firm Guo Jing and Zhao Ruiqing Years of CPAs of the domestic accounting firm offering auditing services 2 year (Guo Jing) and1 year (Zhao Ruiqing) Name Remuneration Accounting firm for internal control audit Ernst & Young Hua Ming LLP 50 Sponsor Huatai United Securities Co., Ltd. 144
	Name	Remuneration
Accounting firm for internal control audit	Ernst & Young Hua Ming LLP	50
Sponsor	Huatai United Securities Co., Ltd.	144

Note to engagement/disengagement of the CPAs

√Applicable □Not applicable

On May 5, 2023, the Proposal on Continuing the Employment of the Financial Audit Body and Internal Control Audit Body for 2023 was reviewed and adopted at the 2022 annual general meeting of shareholders. Accordingly, Ernst & Young Hua Ming LLP continued to be appointed as the Company’s financial audit body and internal control audit body for 2023.

Note to the replacement of the CPAs during the auditing

□Applicable √Not applicable

Note to audit fees falling by more than 20% (inclusive) compared with the previous year

□Applicable √Not applicable

VII. Delisting Risk

(I) Reasons for the delisting risks warning

□Applicable √Not applicable

(II) Solution to be adopted by the Company

□Applicable √Not applicable

(III) Termination of the listing and its reasons

□Applicable √Not applicable

VIII. Events Related to Bankruptcy and Reorganization

□Applicable √Not applicable

IX. Major Lawsuit and Arbitration Issues

□Significant lawsuits and arbitrations in the reporting period

√No significant lawsuit or arbitration in the reporting period

X. Punishment and Correction on the Listed Company as well as its Directors, Supervisors, Senior Management, Controlling Shareholders and Actual Controller due to Suspect of Law Violations

□Applicable √Not applicable

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XI. Integrity Status of the Company, its Controlling Shareholder and Actual Controller during the Reporting Period

√Applicable □Not applicable

During the reporting period, the Company, its controlling shareholder and actual controller were all enjoying good reputation in integrity, and there was no failure to perform any effective judgment of the court, or large amount of outstanding due debts remaining unpaid.

XII. Significant Related-Party Transactions

(I) Related-party transactions from daily operation

1. Matters already disclosed in the temporary announcements and with no progress or change in subsequent implementation

□Applicable √Not applicable

1. Matters already disclosed in the temporary announcements and with progress or change in subsequent implementation

√Applicable □Not applicable

On December 29, 2022, the third meeting of the Fifth Board of Directors of the Company passed a resolution with six votes in favor, none against, and no abstentions, approving the Proposal on Anticipated Daily Related-party Transactions for the Company and Its Subsidiaries for the Year 2023. Related Directors Zhang Jian, Duan Hua, and Zhang Gege abstained from the vote. For more details, please see the announcement published on the Shanghai Stock Exchange website on December 30, 2022.

For the fiscal year 2023, the anticipated and executed daily related-party transactions between the Company and related parties are as follows:

			Unit: Ten Thousand Yuan	Unit: Ten Thousand Yuan
Trading party	Types of related-party transactions	Related parties	Anticipated amount in 2023	Actual amount in 2023
The Company and its subsidiaries	Purchasing goods from the related party	Tianjin Jiema Electric Technology Co., Ltd.	3,000.00	793.07
	Providing services to the related party		15.00	89.73
	Leasing a house to the related party		1,200.00	899.40
	Other dailyrelated-partytransactions		100.00	0.00
	Subtotal		4,315.00	1,782.20
The Company	Renting a house from the related party	Duan Hua	500.00	476.19
	Accepting the services and goods provided bythe relatedparty	Shangqiu Yichong TradingCo., Ltd.	4,500.00	3,725.63
Total			9,315.00	5,984.02

1. Matters not disclosed in the temporary announcements

□Applicable √Not applicable

(II) Related-party transactions concerning acquisition and sales of assets or equity

1. Matters disclosed in temporary announcements and with no progress or change in subsequent implementation

□Applicable √Not applicable

1. Matters disclosed in temporary announcements and with progress or change in subsequent implementation

□Applicable √Not applicable

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3. Matters not disclosed in the temporary announcements

√Applicable □Not applicable

3. Matters not disclosed in the temporary announcements √Applicable □Not applicable	3. Matters not disclosed in the temporary announcements √Applicable □Not applicable	3. Matters not disclosed in the temporary announcements √Applicable □Not applicable	3. Matters not disclosed in the temporary announcements √Applicable □Not applicable	3. Matters not disclosed in the temporary announcements √Applicable □Not applicable	3. Matters not disclosed in the temporary announcements √Applicable □Not applicable	3. Matters not disclosed in the temporary announcements √Applicable □Not applicable	3. Matters not disclosed in the temporary announcements √Applicable □Not applicable	3. Matters not disclosed in the temporary announcements √Applicable □Not applicable	3. Matters not disclosed in the temporary announcements √Applicable □Not applicable	3. Matters not disclosed in the temporary announcements √Applicable □Not applicable	3. Matters not disclosed in the temporary announcements √Applicable □Not applicable
Unit: Ten Thousand Yuan (RMB)
Related parties	Relatio nship	Types of related-p arty transacti ons	Conten t of related -party transac tions	Pricing principl es for related -party transa ctions	Boo k val ue of tran sfer red ass et	Ass ess ed val ue of tran sfer red ass et	Trans fer price	Settle ment metho ds for related -party transac tions	Gai ns fro m the ass et tran sfer	Impact of transactio n on the Company' s operating results and financial condition	Reason for significant difference between transaction price and book value or assessed value, market fair value
Tianjin Jiema Electric Technol ogy Co., Ltd.	Associ ate Compa ny	Purchas e of assets other than goods	Purcha se of CNC pipe bendin g machin e	Market price	Not app lica ble	Not app lica ble	37.27	Bank transfe r	Not app lica ble	No significant impact	Not applicable
Tianjin Jiema Electric Technol ogy Co., Ltd.	Associ ate Compa ny	Sale of assets other than goods	Sale of semi-a utomati c pipe shrinki ng machin e	Market price	3.1 3	Not app lica ble	2.65	Bank transfe r	-0.4 8	No significant impact	Not applicable

Explanation of related-party transactions involving asset acquisition and sale

During the reporting period, the Company purchased and sold the aforementioned assets to and from Tianjin Jiema Electric Technology Co., Ltd., an associate company where the controlling shareholder serves as a director, to meet its production and operational needs. Since the amounts involved in these related-party transactions were small and did not meet the thresholds for board review and temporary announcements, the transactions followed the principles of fairness, equity, and voluntariness, and did not harm the interests of the Company or its minority investors.

1. If a performance agreement is involved, the achievement of performance during the reporting period should be disclosed

□Applicable √Not applicable

(III) Significant related-party transactions of joint external investment

1. Matters disclosed in temporary announcements and with no progress or change in subsequent implementation

□Applicable √Not applicable

1. Matters disclosed in temporary announcements and with progress or change in subsequent implementation

□Applicable √Not applicable

1. Matters not disclosed in the temporary announcements

□Applicable √Not applicable

(IV) Credits and debts with related parties

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1. Matters disclosed in temporary announcements and with no progress or change in subsequent implementation

□Applicable √Not applicable

1. Matters disclosed in temporary announcements and with progress or change in subsequent implementation

□Applicable √Not applicable

1. Matters not disclosed in the temporary announcements

□Applicable √Not applicable

(V) Financial transactions between the Company and its related finance companies, between the Company's holding finance company and the related parties

□Applicable √Not applicable

(VI) Others

□Applicable √Not applicable

XIII. Significant Contracts and Their Execution

(I) Custody, contacting and leases

1. Custody

□Applicable √Not applicable

1. Contracting

□Applicable √Not applicable

1. Leases

□Applicable √Not applicable

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(II) Guarantee

√Applicable □Not applicable

Unit: Yuan (RMB)

(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)	(II) Guarantee √Applicable □Not applicable Unit: Yuan (RMB)
External guarantees provided by the Company (excluding guarantees to subsidiaries)
Guarant or	Relationsh ip between the guarantor and the Company	Guarante ed party	Amount guarante ed	Date of occurrenc e of the guarante e (date of agreeme nt)	Guarant ee start date	Guarant ee expiry date		Type of guarant ee	Collater al (if any)	Is the guarant ee finished	Has the guarant ee been overdue	Overdu e amoun t	Counter guarant ee details	Guarant ee to related party?	Relationsh ip
Total amount of guarantee occurred during the reporting period (excluding guarantees to subsidiaries)							0
Total balance of guarantee at the end of the reporting period (A) (excluding guarantees to subsidiaries)							0
Guarantee to the subsidiaries provided by the Company and its subsidiaries
Total amount of guarantees for subsidiaries occurred during the reporting period							453,736,711.02
Total balance of guarantees for subsidiaries at the end of the reporting period (B)							216,443,547.17
Total amount of guarantees provided by the Company (including guarantees to subsidiaries)
Total amount of guarantees (A+B)							216,443,547.17
of total amount ofguarantees to net assets of the Company (%)							2.81
Including:
Amount of guarantees offered to the shareholders, actual controller and its related parties (C)							0
Amount of guarantee for liabilities directly or indirectly offered to the Guaranteed parties with the asset-liability ratio exceeding 70% (D)							167,008,664.86

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Amount of totalguarantees exceeding50% of the net assets(E)	0
Total amount of the aforesaid threeguarantees(C+D+E)	167,008,664.86
Note to potential joint and several liabilities for guarantees not yet matured”.	N/A
Note to the guarantees	The 2022 Annual General Meeting held on May 5, 2023 reviewed and approved the Proposal on Providing Credit Guarantees for Certain Subsidiaries, and the above-mentioned guarantees have been reviewed and approved by the Company's General Meeting.

(III) Entrusting others to manage the cash assets

1. Entrusted wealth management

2. (1) Overall entrusted wealth management

3. √Applicable □Not applicable

(III) Entrusting others to manage the cash assets 1. Entrusted wealth management (1) Overall entrusted wealth management √Applicable □Not applicable	(III) Entrusting others to manage the cash assets 1. Entrusted wealth management (1) Overall entrusted wealth management √Applicable □Not applicable	(III) Entrusting others to manage the cash assets 1. Entrusted wealth management (1) Overall entrusted wealth management √Applicable □Not applicable	(III) Entrusting others to manage the cash assets 1. Entrusted wealth management (1) Overall entrusted wealth management √Applicable □Not applicable	(III) Entrusting others to manage the cash assets 1. Entrusted wealth management (1) Overall entrusted wealth management √Applicable □Not applicable
Unit: Ten Thousand Yuan (RMB)
Type	Sources of funds	Amount incurred	Outstanding balance	Overdue amount unrecovered
Bank financial product	Self-owned funds	32,780.00	11,928.66	0

Others

√Applicable □Not applicable

The amount of entrusted wealth management in the above table was the highest single-day purchase balance of this type of wealth management product.；The outstanding balance did not include investment income.

• (2) Single entrusted wealth management

□Applicable √Not applicable

Others

√Applicable □Not applicable

During the reporting period, the Company did not purchase fixed-term wealth management products such as significant single-amount structured deposits. Other open-ended wealth management products are not applicable.

• (3) Provisions for impairment of entrusted wealth management

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□Applicable √Not applicable

1. Entrusted loans

(1) Overall entrusted loans

□Applicable √Not applicable

Others

□Applicable √Not applicable

(2) Single entrusted loans

□Applicable √Not applicable

Others

□Applicable √Not applicable

(3) Provisions for impairment of entrusted loans

□Applicable √Not applicable

1. Others

□Applicable √Not applicable

(IV) Other important contracts

□Applicable √Not applicable

XIV. Explanation of the Progress in Use of Raised Funds

√Applicable □Not applicable

(I) Overall usage of raised funds

√Applicable □Not applicable

(I) Overall usage of raised funds √Applicable □Not applicable	(I) Overall usage of raised funds √Applicable □Not applicable	(I) Overall usage of raised funds √Applicable □Not applicable	(I) Overall usage of raised funds √Applicable □Not applicable	(I) Overall usage of raised funds √Applicable □Not applicable	(I) Overall usage of raised funds √Applicable □Not applicable	(I) Overall usage of raised funds √Applicable □Not applicable	(I) Overall usage of raised funds √Applicable □Not applicable	(I) Overall usage of raised funds √Applicable □Not applicable	(I) Overall usage of raised funds √Applicable □Not applicable	(I) Overall usage of raised funds √Applicable □Not applicable	(I) Overall usage of raised funds √Applicable □Not applicable
Unit: Ten Thousand Yuan
Source of raised funds	Time of fund arrival	Total amount of raised funds	Including: Amount of over-raised funds	Net amount of raised funds after deducting	Net amount of raised funds after deducting	Net amount of raised funds after deducting	Net amount of raised funds after deducting	Net amount of raised funds after deducting	Net amount of raised funds after deducting	Net amount of raised funds after deducting	Net amount of raised funds after deducting

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				issuance expenses	issuance expenses	issuance expenses	issuance expenses	issuance expenses	issuance expenses	issuance expenses	issuance expenses
IPO	June 9, 2021	181,090	0	168,086.38	168,086.38	168,257.49	167,712.27	99.68	28,826.04	17.13	7,462.35
Issuance of Convertible Bonds	March 1, 2023.	200,000	0	199,379.74	199,379.74	199,379.74	74,974.09	37.60	74,974.09	37.60	0

(II) Details of projects funded by raised funds

√Applicable □Not applicable

Unit: Ten Thousand Yuan

Project Name	Project Nature	Whet her chan ged inves tment direct ion or not	Source of raised funds	Time of fund arriva l	Use of ove r-rai sed fun ds	Total commit ted invest ment from raised funds	Adjus ted total inves tment from raise d funds (1)	Am oun t inv est ed this yea r	Total amoun t of raised funds investe d by end of reporti ng period （2）	Invest ment progre ss by end of reporti ng period (%) (3) ＝ (2)/(1)	Date of proje ct reach ing its plann ed usabl e state	Wh eth er co mpl ete d	Whet her the input confo rmed to the plann ed progr ess	Speci fic reaso ns for not meeti ng the plann ed progr ess	Ben efit s real ize d this yea r	Bene fits or R&D outco mes achie ved by the proje ct	Signif icant chan ges in proje ct feasi bility (spec ify if appli cable )	Re mai nin g fun ds
Tianjin Vehicle Electric Bicycle Complete Vehicle and Accessories Manufacturing Phase I Project	Productio n constructi on	No	IPO	June 9, 2021	No	8,000. 00	8,000 .00		8,000. 00	100.00 %	Augu st 2021	Ye s	Yes		8,7 08. 57	/	No	0.6
Tianjin Vehicle Electric Bicycle Complete Vehicle	Productio n constructi	No	IPO	June 9, 2021	No	8,000. 00	8,000 .00		8,000. 00	100.00 %	Augu st 2021	Ye s	Yes

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and Accessories Manufacturing Phase II Project	on
Tianjin Vehicle Electric Bicycle Complete Vehicle and Accessories Manufacturing Phase III Project	Productio n constructi on	No	IPO	June 9, 2021	No	8,000. 00	8,000 .00		8,000. 00	100.00 %	Augu st 2021	Ye s	Yes
Tianjin Vehicle Electric Bicycle Complete Vehicle and Accessories Manufacturing Phase IV Project	Productio n constructi on	No	IPO	June 9, 2021	No	8,000. 00	8,000 .00		8,000. 00	100.00 %	Augu st 2021	Ye s	Yes
Tianjin Vehicle Electric Bicycle Complete Vehicle and Accessories Manufacturing Phase V Project	Productio n constructi on	No	IPO	June 9, 2021	No	8,000. 00	8,000 .00		8,147. 90	101.85 %	Augu st 2021	Ye s	Yes
Tianjin Vehicle Electric Bicycle Complete Vehicle and Accessories Manufacturing Phase VI Project	Productio n constructi on	No	IPO	June 9, 2021	No	8,000. 00	8,000 .00		8,000. 00	100.00 %	Augu st 2021	Ye s	Yes
Tianjin Vehicle Electric Bicycle Production Line Technological Renovation Project	Productio n constructi on	No	IPO	June 9, 2021	No	19,341 .08	19,34 1.08	2,0 86. 12	17,016 .71	87.98 %	June 2024	No	No	Note 1	N/A	/	No	2,5 79. 43
Jiangsu Vehicle Plastic Parts Painting Production Line	Productio n constructi on	Yes	IPO	June 9, 2021	No	7,462. 35					N/A	Ye s	Yes	Note 2	N/A	/	Yes	N/A

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Technological Renovation Project
Tianjin Vehicle R&D Center Construction Project	R&D	No	IPO	June 9, 2021	No	5,053. 59	5,053 .59	4,3 58. 38	5,200. 21	102.90 %	June 2024	Ye s	Yes	Note 1	N/A	/	No	72. 01
Jiangsu Vehicle R&D Center Construction Project	R&D	No	IPO	June 9, 2021	No	5,047. 58	5,047 .58	3,2 31. 85	5,288. 22	104.77 %	June 2024	Ye s	Yes	Note 1	N/A	/	No	9.0 1
Aima Technology IT Upgrade and Big Data Platform Construction Project	Operation s managem ent	No	IPO	June 9, 2021	No	8,341. 03	8,341 .03	-	8,377. 92	100.44 %	Nove mber 2022	Ye s	Yes		N/A	/	No	0.2 0
Aima Technology Retail Marketing Network Upgrade Project	Operation s managem ent	No	IPO	June 9, 2021	No	48,840 .75	48,84 0.75	19, 149 .69	50,047 .87	102.47 %	July 2023	Ye s	Yes		N/A	/	No	5.3 9
Supplementary Working Capital Project	Suppleme nting working capital and repaying loans	No	IPO	June 9, 2021	No	26,000 .00	26,00 0.00	-	26,000 .00	100.00 %	N/A	Ye s	Yes		N/A	/	No
Jiangsu Vehicle Supplementary Working Capital Project	Suppleme nting working capital and repaying loans	No	IPO	June 9, 2021	No		7,633 .46		7,633. 44	100.00 %	N/A	Ye s	Yes		N/A	/	N/A	38. 90
Lishui Vehicle New Energy Smart Mobility	Productio n constructi	No	Issuing converti ble	Marc h 1, 2023	No	149,39 2.96	149,3 92.96	24, 745 .45	24,745 .45	16.56 %	Marc h 2025	No	No		N/A	/	No	127 ,47 6.5

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Project (Phase I)	on		bonds															5
Aima Technology Marketing Network Upgrade Project	Operation s managem ent	No	Issuing converti ble bonds	Marc h 1, 2023	No	49,986 .78	49,98 6.78	50, 228 .64	50,228 .64	100.48 %	Dece mber 2023	Ye s	Yes		N/A	/	No	0

Note 1: The "Tianjin Vehicle Electric Bicycle Production Line Technological Renovation Project”, "Tianjin Vehicle R&D Center Construction Project”, and "Jiangsu Vehicle R&D Center Construction Project" experienced slight delays in their construction progress due to external environmental factors and the Company's actual operational situation. Considering the actual investment in the capital-raising projects and future investment plans, on August 11, 2023, the 11th meeting of the fifth Board of Directors and the 10th meeting of the fifth Supervisory Board reviewed and approved the "Proposal on the Delay of Some Initial Public Offering Capital Investment Projects”, deciding to postpone the expected date for these projects to reach operational status to June 2024.

Note 2: Due to significant changes in local environmental protection policies, the "Jiangsu Vehicle Plastic Parts Painting Production Line Technological Renovation Project" adjusted its operations to entrust the painting of plastic parts to enterprises within a centralized painting center in the area. This entrusted painting meets the Company's daily operational needs. With the gradual promotion of paint-free technology for plastic parts, the necessity to continue the original project has significantly decreased. Following the deliberation at the 2021 annual general meeting held on May 6, 2022, the Company decided to terminate the project and has transferred the unused raised funds to Jiangsu Vehicle's proprietary capital account for permanent supplementation of working capital.

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(III) Changes or terminations of fund-raising investment projects during the reporting period

□Applicable √Not applicable

(IV) Other situations regarding the use of raised funds during the reporting period

1. Advance investment and replacement of fundraising investment projects

2. √Applicable □Not applicable

3. (1) Initial Public Offering in 2021

On July 21, 2021, the 18th Meeting of the Fourth Board of Directors and the 8th Meeting of the Fourth Supervisory Board reviewed and approved the Proposal on Using Raised Funds to Replace Self-Raised Funds Pre-invested in Fundraising Projects and Paid Issuance Expenses. The Company agreed to use 820.1358 million RMB of the funds raised from the initial public offering to replace the self-raised funds pre-invested in fundraising projects, and 38.9487 million RMB (excluding VAT) to replace the self-raised funds used for paid issuance expenses, totaling 859.0845 million RMB. The replacement amount was reviewed and verified by Ernst & Young Hua Ming LLP, who issued a "Special Verification Report on the Pre-investment of Raised Funds by Aima Technology Group Co., Ltd. using Self-Raised Funds" (Ernst & Young Hua Ming (2021) No. 60968971_B09). The Company’s independent directors and the then-sponsor institution, CITIC Securities Co., Ltd., expressed their independent opinions and verification opinions, respectively. On July 30, 2021, the Company replaced the total of 859.0845 million RMB of self-raised funds pre-invested in the fundraising projects with the funds raised from the initial public offering.

(2) Public Issuance of Convertible Corporate Bonds in 2023

On June 15, 2023, the 9th Meeting of the Fifth Board of Directors and the 9th Meeting of the Fifth Supervisory Board reviewed and approved the Proposal on Using Raised Funds from Convertible Corporate Bonds to Replace Self-Raised Funds Pre-Invested in Fundraising Projects and Paid Issuance Expenses. The Company agreed to use a total of 527.315 million RMB from the raised funds of the convertible corporate bonds to replace the self-raised funds pre-invested in fundraising projects and paid issuance expenses. The replacement amount was reviewed and verified by Ernst & Young Hua Ming LLP, who issued a Verification Report on the Pre-Investment of Raised Funds by Aima Technology Group Co., Ltd. using Self-Raised Funds (Ernst & Young Hua Ming (2023) No. 60968971_L10). The Company’s independent directors and the sponsor institution, Huatai United Securities, expressed their independent opinions and verification opinions, respectively. On June 26, 2023, the Company replaced the total of 527.315 million RMB of self-raised funds pre-invested in the fundraising projects and paid issuance expenses with the funds raised from the convertible corporate bonds.

(3) Using Bankers' Acceptances and Other Methods to Pay Funds for Fundraising Projects

On April 26, 2023, the 7th Meeting of the Fifth Board of Directors and the 7th Meeting of the Fifth Supervisory Board reviewed and approved the Proposal on Using Bankers' Acceptances and Other Methods to Pay Funds for Fundraising Projects and Replacing with an Equivalent Amount of Raised Funds. The Company agreed to use bankers' acceptances and other methods to pay various expenses in fundraising projects (including those from the initial public offering and the public issuance of convertible corporate bonds) during the implementation period, according to actual conditions, and transfer an equivalent amount of funds from the dedicated fundraising account to the Company’s own account. The Company’s independent directors and the sponsor institution, Huatai United Securities, expressed their independent opinions and verification opinions, respectively.

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2023 Annual Report

1. Temporary supplementation of working capital with idle raised funds

2. □Applicable √Not applicable

3. Cash management of idle raised funds and investment in related products

4. √Applicable □Not applicable

Unit: Ten Thousand Yuan (RMB)	Unit: Ten Thousand Yuan (RMB)	Unit: Ten Thousand Yuan (RMB)	Unit: Ten Thousand Yuan (RMB)	Unit: Ten Thousand Yuan (RMB)	Unit: Ten Thousand Yuan (RMB)
Date of Board review	Approved amount for cash management	Start date	End date	Cash management balance at end of reporting period	Whether maximum balance during period exceeded authorized limit
June 21, 2022	50,000	June 21, 2022	June 20, 2023		No
April 14, 2023	232,100	April 14, 2023	April 13, 2024	130,137.21	No

Others

On June 21, 2022, the Company held the 27th meeting of the fourth Board of Directors and the 15th meeting of the fourth Supervisory Board, at which the "Proposal on Continuing to Use Part of the Temporarily Idle Raised Funds for Cash Management" was reviewed and approved. The Company agreed to use up to RMB 500 million of temporarily idle funds raised from the initial public offering (IPO) for cash management, to purchase high-security and high-liquidity investment products. This authorization is valid for 12 months from the date of approval by the Board of Directors and Supervisory Board and can be used on a rolling basis within the authorized amount and validity period. The Company’s independent directors and the then sponsor, Citic Securities Co., Ltd., both expressed their agreement with this matter.

On April 14, 2023, the Company held the 6th meeting of the fifth Board of Directors and the 6th meeting of the fifth Supervisory Board, at which the "Proposal on Depositing Part of the Raised Funds in Current Deposit Forms such as Agreement Deposits and Notice Deposits" was reviewed and approved. The Company agreed to use up to RMB 2,321 million of raised funds to be deposited in current deposit forms such as agreement deposits and notice deposits. Among them, the authorized limit for funds raised from the IPO is up to RMB 275 million, and the authorized limit for funds raised from the issuance of convertible bonds is up to RMB 2,046 million. This authorization is valid for 12 months from the date of approval by the Board of Directors and Supervisory Board and can be used on a rolling basis within the authorized amount and validity period. The Company’s independent directors and the sponsor, Huatai United Securities, both expressed their agreement with this matter.

During the reporting period, the Company used temporarily idle raised funds to purchase value-added service current deposits. As of December 31, 2023, the balance of current deposits purchased with part of the idle raised funds was RMB 1,301.37 million. All these funds were deposited in the dedicated raised funds accounts, and there was no case of managing funds outside of the dedicated raised funds accounts.

1. Use of over-raised funds for permanent supplementation of working capital or repayment of bank loans

□Applicable √Not applicable

1. Others

□Applicable √Not applicable

XV. Note to Other Major Events that Have Significant Impact on Investors' Value Judgments and Investment Decisions

□Applicable √Not applicable

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Section 7 Changes in Shares and Information about Shareholders

I. Changes in Shares Capital

(I) Table of changes in shares

1. Table of changes in shares

	Unit: Shares	Unit: Shares	Unit: Shares	Unit: Shares	Unit: Shares	Unit: Shares	Unit: Shares	Unit: Shares	Unit: Shares
	Before the change		Increase or decrease of the change (+, -)					After the change
	Quantity	Percen tage (%)	New shares issued	Bonu s shar es	Shares converted from capital reserves	Others	Subtotal	Quantity	Perce ntage (%)
I. Restricted shares	428,526, 000	74.57			214,263,000	-4,397,4 00	209,865 ,600	638,391,6 00	74.07
1. Shares held by the state
2. Shares held by the state-owned legal entities
3. Other domestic shares	428,526 ,000	74.57			214,263,00 0	-4,397, 400	209,86 5,600	638,391, 600	74.07
Including: shares held by domestic non-state-owned legal entities
Shares held by domestic non-corporate entities	23,706, 200	4.13			11,853,100		11,853, 100	35,559,3 00	4.13
Shares held by domestic individuals	404,819 ,800	70.44			202,409,90 0	-4,397, 400	198,01 2,500	602,832, 300	69.94
4. Shares held by foreign investors
Including: shares held by foreign legal entities
Shares held by foreign individuals
II. Tradable shares without selling restrictions	146,174 ,004	25.43			73,087,002	4,272,4 01	77,359, 403	223,533, 407	25.93
1. RMB common shares	146,174 ,004	25.43			73,087,002	4,272,4 01	77,359, 403	223,533, 407	25.93
2. Domestic listed foreign shares
3. Overseas listed foreign shares
4. Others
III. Total shares	574,700 ,004	100			287,350,00 2	-124,99 9	287,22 5,003	861,925, 007	100

2. Statement on the change in shares

√Applicable □Not applicable

(1) On May 19, 2023, the Company completed the equity distribution for the fiscal year 2022. The profit distribution and capital increase were based on the total issued capital of 574,700,004 shares, with capital reserves used to distribute an additional five shares for every

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ten shares held, totaling 287,350,002 shares.

(2) On June 1, 2023, the first tranche of the Company's 2021 Restricted Stock Incentive Plan was unlocked, involving 4,158,000 shares, which became unrestricted and were listed for trading.

(3) On July 27, 2023, the Company completed the repurchase and cancellation of 126,000 restricted shares from four incentive participants who no longer qualified due to resignation.

(4) On August 28, 2023, an additional 113,400 shares from the reserved grant of the Company's 2021 Restricted Stock Incentive Plan had their restrictions lifted and were listed for trading.

(5) Starting September 1, 2023, Aima CB could be converted into the Company’s shares; during the reporting period, a total of 1,001 shares were created through conversion.

3. Effect of changes in shares on financial indicators such as earnings per share and net asset per share (if any) over the last year and the last reporting period

√Applicable □Not applicable

During the reporting period, due to the annual equity distribution for 2022, the repurchase and cancellation of restricted stock, and convertible bond conversion, the Company’s total issued capital increased from 574,700,004 shares to 861,925,007 shares. This change resulted in the dilution of financial metrics such as basic earnings per share and net assets per share for the fiscal year 2023.

4. Other contents that the Company deems necessary or the securities regulatory authorities require disclosing

□Applicable √Not applicable

(II) Changes in restricted shares

√Applicable □Not applicable

In: Share

Name of shareholders	Name of shareholders	Name of shareholders	Number of restricted shares at the beginning of the year	Number of shares released from restriction on sales in the year	Increase in the number of restricted shares in the year	Number of restricted shares at the end of the year	Reason for restriction on sales	Date of release from restriction on sales
Zhang Jian			395,243,800		197,621,900	592,865,700	Non-tradable for 36 months from IPO	June 17, 2024
Yancheng Dingai Venture Capital Partnership (Limited Partnership)			23,706,200		11,853,100	35,559,300	Non-tradable for 36 months from IPO	June 17, 2024
	2021 Restricted Stock Grant Recipients		9,576,000	4,271,400	4,788,000	9,966,600	Restricted stock granted in 2021	/
	2021 Restricted
		Stock Grant
		Recipients
		Total	428,526,000	4,271,400	214,263,000	638,391,600	/	/

Note: During the reporting period, the Company completed the 2022 annual equity distribution, issuing an additional five shares for every ten shares held, funded through capital reserves, to all shareholders. Consequently, the number of restricted shares increased proportionally.

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II. Securities Issuance and Listing

(I) Issuance of securities during the reporting period

√Applicable □Not applicable

(I)Issuance of securities during the reporting period √Applicable □Not applicable	(I)Issuance of securities during the reporting period √Applicable □Not applicable	(I)Issuance of securities during the reporting period √Applicable □Not applicable	(I)Issuance of securities during the reporting period √Applicable □Not applicable	(I)Issuance of securities during the reporting period √Applicable □Not applicable	(I)Issuance of securities during the reporting period √Applicable □Not applicable	(I)Issuance of securities during the reporting period √Applicable □Not applicable
Unit: Shares Currency: RMB
Type of shares and its derivative securities	Date of issuance	Issuing price (or interest rate)	Shares issued	Date of listing	Quantity approved for being listed and traded	Expiry date of trading
Convertible bonds and convertible bonds with warrants
Convertible bonds	February 23, 2023	100 yuan per unit	20,000,000	March 20, 2023	20,000,000	February 22, 2029
Other derivative securities
Stock options	April 19, 2023	48.07 yuan per unit	4,776,000

Note to issuance of securities during the reporting period (for the bonds with different interest rates during the period, please explain separately):

√Applicable □Not applicable

1. In 2023, the Company's stock option incentive plan awarded 4,776,000 stock options to 324 participants. The grant registration was completed on April 19, 2023.

2. On February 23, 2023, the Company publicly issued 20,000,000 convertible bonds, each with a par value of RMB 100, for a term of six years. These bonds were listed on the Shanghai Stock Exchange on March 20, 2023, under the abbreviation "Aima CB”.

(II) Changes in total shares and shareholder structure as well as assets and liabilities structure of the Company

√Applicable □Not applicable

During the reporting period, the Company increased its capital by converting capital reserves into 287,350,002 shares, repurchased and canceled 126,000 shares from departing incentive participants, and converted 1,001 shares through Aima CB. As a result, the total issued capital of the Company changed from 574,700,004 shares to 861,925,007 shares.

The aforementioned changes in share capital had no significant impact on the Company's asset and liability structure.

(III) Existing staff-held shares

□Applicable √Not applicable

III. Shareholders and Actual Controller

(I) Total number of shareholders

(I)Total number of shareholders
Total number of common shareholders up to the end of the reporting period	24,261
Total number of common shareholders as at the end of the last month prior to the disclosure day of the annual report	19,329
Total number of preferred shareholders whose voting rights have been restored as at the end of the reporting period	0
Total number of preferred shareholders whose voting rights have been restored as at the end of the month prior to the date of the annual report	0

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(II) Table of top 10 shareholders, top 10 common shares (or tradable shares without selling restrictions) by the end of reporting period

(II) Table of top 10 shareholders, top 10 common shares (or tradable shares without selling restrictions) by the end of reporting period	(II) Table of top 10 shareholders, top 10 common shares (or tradable shares without selling restrictions) by the end of reporting period	(II) Table of top 10 shareholders, top 10 common shares (or tradable shares without selling restrictions) by the end of reporting period	(II) Table of top 10 shareholders, top 10 common shares (or tradable shares without selling restrictions) by the end of reporting period	(II) Table of top 10 shareholders, top 10 common shares (or tradable shares without selling restrictions) by the end of reporting period	(II) Table of top 10 shareholders, top 10 common shares (or tradable shares without selling restrictions) by the end of reporting period	(II) Table of top 10 shareholders, top 10 common shares (or tradable shares without selling restrictions) by the end of reporting period	(II) Table of top 10 shareholders, top 10 common shares (or tradable shares without selling restrictions) by the end of reporting period
Unit: Shares
Shareholdings by top 10 shareholders
Names of the Shareholders (Full name)	Increase/ Decreas e during the reporting period	Number of shares held at the end of the reporting period	Perc enta ge (%)	Number of shares held with selling restrictions	Status of shares pledged, marked or frozen		Nature of the shareholder
					Status of the shares	Quanti ty
Zhang Jian	197,621, 900	592,865,7 00	68.7 8	592,865,700	Nil		Domestic natural person
Yancheng Dingai Venture Capital Partnership (Limited Partnership)	11,853,1 00	35,559,30 0	4.13	35,559,300	Nil		Others
Hong Kong Securities Clearing Company Ltd.	-1,236,8 35	10,780,51 6	1.25		Nil		Domestic non-state-ow ned legal entity
Han Jianhua	2,293,05 0	6,703,050	0.78		Nil		Domestic natural person
Invesco Great Wall Fund - China Life Insurance Co., Ltd. - Dividend Insurance - Invesco Great Wall Fund China Life Balanced Equity Portfolio Single Asset Management Plan (Available for Sale)	3,771,82 5	6,339,445	0.74		Nil		Domestic natural person
Peng Wei	2,073,92 0	6,221,760	0.72		Nil		Domestic natural person
Li Shishuang	2,414,57 1	6,221,692	0.72		Nil		Others
Qiao Baogang	1,813,00 0	5,590,000	0.65		Nil		Others
China Merchants Bank Co., Ltd. - Invesco Great Wall Core China Merchants Mixed-Type Securities InvestmentFund	2,600,15 8	4,800,114	0.56		Nil		Domestic natural person
Everbright Sun Life Asset Management - Industrial Bank - Everbright Sun Life Asset No. 121 Directed Asset Management Product	4,654,87 6	4,654,876	0.54		Nil		Domestic natural person
Shareholdings of top 10 shareholders of tradable shares without selling restrictions

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Names of the Shareholders	Number of tradable shares without selling restrictions	Type and quantity of shares	Type and quantity of shares
		Type	Quantity
Hong Kong Securities Clearing Company Ltd.	10,780,516	RMB common shares	10,780,516
Han Jianhua	6,703,050	RMB common shares	6,703,050
Invesco Great Wall Fund - China Life Insurance Co., Ltd. - Dividend Insurance - Invesco Great Wall Fund China Life Balanced Equity Portfolio Single Asset Management Plan (Available for Sale)	6,339,445	RMB common shares	6,339,445
Peng Wei	6,221,760	RMB common shares	6,221,760
Li Shishuang	6,221,692	RMB common shares	6,221,692
Qiao Baogang	5,590,000	RMB common shares	5,590,000
China Merchants Bank Co., Ltd. - Invesco Great Wall Core China Merchants Mixed-Type Securities InvestmentFund	4,800,114	RMB common shares	4,800,114
Everbright Sun Life Asset Management - Industrial Bank - Everbright Sun Life Asset No. 121 Directed Asset Management Product	4,654,876	RMB common shares	4,654,876
Bank of China Co., Ltd. - Invesco Great Wall Core Zhongjing One-Year Holding Mixed-Type Securities Investment Fund	4,500,011	RMB common shares	4,500,011
Invesco Great Wall Fund - China Life Insurance Co., Ltd. - Traditional Insurance - Invesco Great Wall Fund China Life Balanced Equity Traditional Portfolio Single Asset Management Plan (Available for Sale)	4,155,691	RMB common shares	4,155,691
Explanation on repurchase account of top 10 shareholders	As of the end of the reporting period, the Company's dedicated securities repurchase account held 14,130,524 shares, which will be used for the implementation of stock incentive plans.
Explanation on delegated voting rights, entrusted voting rights, abstained voting rights of the aforesaid shareholders	Nil
Notes to the related relation or consistent actions of the above-mentioned shareholders	Nil
Explanation on preference stockholders with recovered voting rights and the number of stocks held by them	Nil

Note: As of the end of the reporting period, Changxing Dingai Investment Management Partnership (Limited Partnership) has been renamed to Yancheng Dingai Venture Investment Partnership (Limited Partnership).

Top ten shareholders participating in the lending of shares under the refinancing business

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2023 Annual Report

□Applicable √Not applicable

Changes in the top ten shareholders compared with the previous period

√Applicable □Not applicable

□Applicable √Not applicable Changes in the top ten shareholders compared with the previous period √Applicable □Not applicable	□Applicable √Not applicable Changes in the top ten shareholders compared with the previous period √Applicable □Not applicable	□Applicable √Not applicable Changes in the top ten shareholders compared with the previous period √Applicable □Not applicable	□Applicable √Not applicable Changes in the top ten shareholders compared with the previous period √Applicable □Not applicable	□Applicable √Not applicable Changes in the top ten shareholders compared with the previous period √Applicable □Not applicable	□Applicable √Not applicable Changes in the top ten shareholders compared with the previous period √Applicable □Not applicable
Unit: Shares
Changes in the top ten shareholders compared with the previous period
Name of shareholder (full name)	New entries/e xits this reporting period	Number of shares lent out via securities lending not yet returned at period end		Number of shares held in ordinary and credit accounts, including shares lent out via securities lending not yet returned at period end
		Total number	Percent age (%)	Total number	Percenta ge (%)
CITIC Securities Investment Co., Ltd.	Exit
Jinshi Entertainment Equity Investment (Hangzhou) Partnership (Limited Partnership)	Exit
Invesco Great Wall Fund - China Life Insurance Co., Ltd. - Dividend Insurance - Invesco Great Wall Fund China Life Balanced Equity Portfolio Single Asset Management Plan (Available for Sale)	New entry	0	0	6,339,445	0.74
Liu Jianxin	Exit	0	0	3,600,120	0.42
China Merchants Bank Co., Ltd. - Invesco Great Wall Core China Merchants Mixed-Type Securities Investment Fund	New entry	0	0	4,800,114	0.56
Everbright Sun Life Asset Management - Industrial Bank - Everbright Sun Life Asset No. 121 Directed Asset Management Product	New entry	0	0	4,654,876	0.54

Note: CITIC Securities Investment Co., Ltd. and Jinshi Entertainment Equity Investment (Hangzhou) Partnership (Limited Partnership) were not among the top 200 holders in the Company's ordinary and margin trading credit accounts at the end of the reporting period.

Number of shares held by top ten shareholders with selling restrictions and the selling restrictions

√Applicable □Not applicable

restrictions √Applicable □Not applicable	restrictions √Applicable □Not applicable	restrictions √Applicable □Not applicable
			Unit: Shares
No.	Names of shareholders with selling restrictions	Number of restricted shares	Restricted shares allowed for public trading		Selling restrictions
			Date when public trading is allowed	Increase in restricted shares allowed for public trading
1	Zhang Jian	592,865,700	June 17, 2024	592,865,700	Non-tradable for 36 months from IPO
2	Yancheng Dingai Venture Capital Partnership (Limited Partnership)	35,559,300	June 17, 2024	35,559,300	Non-tradable for 36 months from IPO

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2023 Annual Report

3	Ren Yong	1,764,000			Non-tradable due to stock incentive
4	Gao Hui	1,764,000			Non-tradable due to stock incentive
5	Luo Qingyi	882,000			Non-tradable due to stock incentive
6	Zhou Sixiu	588,000			Non-tradable due to stock incentive
7	Yang Wanli	588,000			Non-tradable due to stock incentive
8	Zheng Hui	588,000			Non-tradable due to stock incentive
9	Hu Yupeng	294,000			Non-tradable due to stock incentive
10	Yang Junwei	294,000			Non-tradable due to stock incentive
Notes to the related relation or consistent actions of the above-mentioned shareholders		Nil

Note: "Restricted Stock Incentive" refers to the restrictive stock incentive plan released by the Company on November 17, 2021. Incentive recipients will be eligible to apply for listing and trading of their shares only after the performance metrics of the incentive plan are met.

(III) Strategic investors or general legal entity who became the top 10 shareholders due to placing of new shares

□Applicable √Not applicable

IV. Controlling Shareholders and Actual Controllers

(I) Controlling shareholder

1. Legal entity

□Applicable √Not applicable

2. Natural person

√Applicable □Not applicable

2. Natural person √Applicable □Not applicable
Name	Zhang Jian
Nationality	China
Residency in other countries or regions (yes/no)	No
Main occupations and positions	Chairman of the Board & General Manager

3. Special statement about no controlling shareholder in the Company

□Applicable √Not applicable

4. Explanation on changes in controlling shareholders during the reporting period

□Applicable √Not applicable

5. Framework of the ownership and controlling relationship between the Company and its controlling shareholder

√Applicable □Not applicable

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==> picture [348 x 51] intentionally omitted <==

(II) Actual controller

1. Legal entity

□Applicable √Not applicable

2. Natural person

√Applicable □Not applicable

2. Natural person √Applicable □Not applicable
Name	Zhang Jian, Zhang Gege
Nationality	China
Residency in other countries or regions (yes/no)	No
Main occupations and positions	Zhang Jian is the Chairman of the Board and the General Manager of the Company; Zhang Gege is a director of the Company, the executive director and general manager of Suiwanwan, and the executive partner of Yancheng Dingai.
Controlling interests in other domestically and overseas listed companies in the past 10 years	Not applicable

3. Special explanation on the absence of controlling shareholders of the Company

□Applicable √Not applicable

4. Explanation on changes in the Company’s Control during the reporting period

□Applicable √Not applicable

5. Framework of ownership and controlling relationship between the Company and the actual controllers

√Applicable □Not applicable

==> picture [237 x 142] intentionally omitted <==

6. The actual controller controls the Company by way of trust or other asset management

□Applicable √Not applicable

(III) Other information about controlling shareholders and actual controllers

□Applicable √Not applicable

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V. The Cumulative Number of Shares Pledged by The Company's Controlling Shareholders or Largest Shareholder and Their Concert Parties Exceeds 80% of Their Total Shareholdings.

□Applicable √Not applicable

VI. Other Legal Entity Shareholder Holding More Than 10%

□Applicable √Not applicable

VII. Restrictions on Shareholding Reduction

□Applicable √Not applicable

VIII. Specific Implementation of Share Repurchase During the Reporting Period

VIII. Specific Implementation of Share Repurchase During the Reporting Period	VIII. Specific Implementation of Share Repurchase During the Reporting Period	VIII. Specific Implementation of Share Repurchase During the Reporting Period
Unit: Yuan (RMB)
Share repurchase plan name	Share repurchase plan via centralized bidding transaction
Disclosure time of share repurchase plan	August 29, 2023
Planned number of shares to repurchase and percentage of total share capital (%)	Planned repurchase of 4,226,542 to 8,453,085 shares, representing 0.49% to 0.98% of the total share capital at the time of the plan’s disclosure.
Planned repurchase amount	Not less than RMB 200 million and not more than RMB 400 million
Planned repurchase period	Not exceeding six months from the date of approval by the Company's Board of Directors
Purpose of repurchase	For stock incentive or employee share ownership plans
Number of shares already repurchased	14,130,524
Percentage of already repurchased shares relative to the shares involved in the stock incentive plan (%) (if applicable)	Not applicable
Progress of share repurchase through centralized bidding transaction	Not applicable
Share repurchase plan name		Repurchase and cancellation of partial stock incentive restricted shares
Disclosure time of share repurchase plan		May 20, 2023
Planned number of shares to repurchase and percentage of total share capital (%)		Planned repurchase of 126,000 shares, representing 0.0146% of the total share capital at the time of plan disclosure
Planned repurchase amount		RMB 1,074,800 (plus accrued bank interest for the same period).
Planned repurchase period		July 27, 2023
Purpose of repurchase		Cancellation
Number of shares already repurchased		126,000
Percentage of already repurchased shares relative to the shares involved in the stock incentive plan (%) (ifapplicable)		0.86
Progress of share repurchase through centralized bidding transaction		Not applicable

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Section 8 Preferred Shares

□Applicable √Not applicable

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2023 Annual Report

Section 9 Bond-related Information

I. Corporate Bonds, Company Bonds, and Non-Financial Corporate Debt Financing Instruments

Applicable √Not applicable

II. Convertible Corporate Bonds

• Applicable √Not applicable

(I) Issuance of convertible bonds

√Applicable Not applicable

Approved by the China Securities Regulatory Commission with the permit number [2022]3038, the Company publicly issued 20,000,000 convertible corporate bonds on February 23, 2023. Each bond has a par value of 100 yuan, totaling an issuance amount of 2,000,000,000 yuan. China Securities Pengyuan Credit Rating Co., Ltd. provided a credit rating report for this issuance titled 2022 Public Issuance of Convertible Corporate Bonds Credit Rating Report for Aima Technology Group Co., Ltd. The Company's corporate credit rating is AA, and the credit rating for this issuance of convertible bonds is also AA. With the consent of the Shanghai Stock Exchange Self-Regulatory Supervision Decision [2023]41, the Company's 2,000,000,000 yuan convertible corporate bonds began trading on the Shanghai Stock Exchange on March 20, 2023, “under the bond abbreviation 'Aima CB' and bond code '113666'.

(II) Convertible bond holders and guarantors during the reporting period

√Applicable Not applicable

√Applicable Not applicable
Convertible corporate bond name	Aima CB
Number of bondholders at period-end	8,983
Guarantors of the Company's convertible bonds	N/A
Top ten holders of convertible bonds are as follows：
Names of convertible corporate bond holder	Amount held at period-end (in yuan)	Percentage of holdings (%)
Zhang Jian	825,000,000	41.25
China Construction Bank Corporation - Yifangda Dual-Bond Enhanced Bond-Type Securities Investment Fund	79,542,000	3.98
Guosen Securities Co., Ltd.	70,826,000	3.54
Bank of China Limited - Yifangda Steady Income Bond-Type Securities Investment Fund	66,010,000	3.30
China Minsheng Banking Corp., Ltd. - Anxin Steady Growth Flexible Allocation Mixed-Type Securities Investment Fund	25,346,000	1.27
Ping An Fund - Ping An Life Insurance Company of China, Ltd. - Dividend - Individual Insurance Dividend - Ping An Life - Ping An Fund Fixed Income Mandated Investment No. 1 Single Asset Management Plan	25,022,000	1.25
China Merchants Bank Co., Ltd. - Anxin Steady Profit Increase Mixed-Type Securities Investment Fund	19,547,000	0.98
PICC Asset Management - China Merchants Bank - PICC Assets Anxin Prosperous World No. 29 Asset Management Product	15,650,000	0.78
Bank of Communications Co., Ltd. - Xingquan Stable Profit Increase Bond-Type Securities Investment Fund	15,154,000	0.76
Shanghai Pudong Development Bank Co., Ltd. -	15,138,000	0.76

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2023 Annual Report

Yifangda Yuxiang Return Bond-Type Securities Investment Fund

(III) Changes in convertible bonds during the reporting period

√Applicable Not applicable

√Applicable Not applicable	√Applicable Not applicable
		Unit: Yuan (RMB)
Convertible corporate bond names	Before the current change	Increase/decrease in this change			After the current change
		Conversion	Redemption	Repurchase
Aima CB	2,000,000,000	40,000			1,999,960,000

Accumulated Conversion of Convertible Bonds During the Reporting Period

√Applicable Not applicable

√Applicable Not applicable
Convertible corporate bond name	Aima CB
Conversion amount during the reporting period (yuan)	40,000
Number of shares converted during the reporting period (shares)	1,001
Cumulative number of shares converted(shares)	1,001
Percentage of cumulative shares converted relative to the total number of shares issued prior to conversion (%)	0.000116
Outstanding conversion amount (yuan)	1,999,960,000
Percentage of unconverted convertible bonds relative to the total issuance of convertible bonds (%)	99.999884

(IV) Adjustment History of Conversion Prices

√Applicable Not applicable

Unit: Yuan (RMB)

Convertible corporate bond names	Convertible corporate bond names	Aima CB	Aima CB	Aima CB
Conversion price adjustment date	Adjusted conversio n price	Disclosur e date	Disclosure media	Explanation of conversion price adjustment
May 19, 2023	39.99	May 13, 2023	China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily	The Company implemented the annual equity distribution for 2022. According to the regulations related to convertible bonds, the conversion price of Aima CB was adjusted from 61.29 yuan per share to 39.99 yuan per share.
September 22, 2023	39.64	Septembe r 16, 2023	China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily	The Company carried out the semi-annual equity distribution for 2023. According to the regulations related to convertible bonds, the conversion price of Aima CB was adjusted from 39.99 yuan per share to 39.64 yuan per share.
Latest conversion price as of the end of the reporting period		39.64

(V) The Company's liabilities, credit rating changes, and cash arrangements for debt repayment in future years

√Applicable Not applicable

In accordance with the "Regulations on the Administration of Securities Issuance by Listed Companies" and the "Regulations on the Issuance and Trading of Corporate Bonds”, the Company engaged China Securities Pengyuan Credit Rating Co., Ltd. to conduct a credit rating for the Aima CB issued in February 2023. On May 23, 2023, China Securities Pengyuan issued the "2023 Follow-up Credit Rating Report for Aima Technology Group Co., Ltd.'s Publicly Issued

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Convertible Corporate Bonds”. The Company's corporate credit rating was affirmed at "AA" with a "stable" outlook, and the credit rating for the Aima CB was also "AA”. There has been no change in the rating outcomes compared to the previous assessment.

The Company's operations remain stable, with a reasonable asset structure and no significant changes in liabilities. Its credit status is sound. The primary sources of cash for debt repayment in the coming year include revenues from the Company's normal business operations, cash inflows, and the liquidation of current assets.

(VI) Other Matters Regarding Convertible Bonds

√Applicable Not applicable

From June 7 to June 30, 2023, the Company's stock price was below 85% of the conversion price on at least 15 out of 30 consecutive trading days, triggering the downward revision clause of the Aima CB conversion price. The Company convened the 10th meeting of the fifth Board of Directors and decided not to adjust the conversion price downward. Furthermore, if the Company's stock price triggers the downward revision clause of the Aima CB again within the next three months (from July 1, 2023, to September 30, 2023), the Company will not propose a downward revision.

From October 9 to October 27, 2023, the Company's stock price was again below 85% of the conversion price on at least 15 out of 30 consecutive trading days, triggering the downward revision clause of the Aima CB conversion price. The Company convened the 15th meeting of the fifth Board of Directors and decided not to adjust the conversion price downward. Additionally, if the Company's stock price triggers the downward revision clause of the Aima CB again in the next three months (from October 28, 2023, to January 27, 2024), the Company will not propose a downward revision plan.

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Section 10 Financial report

I. Auditor’s Report

√Applicable □Not applicable

Ernst & Young Hua Ming (2024) Shen Zi NO. 70017005_L01 Aima Technology Group Co,. LTD.

To all shareholders of Aima Technology Group Co,. LTD.,

I. Opinion

We have audited the financial statements of Aima Technology Group Co,. LTD. (the “Company”), which comprise the consolidated and company balance sheets as at 31 December 2023, and the consolidated and company income statements, the consolidated and company statement of changes in equity and the consolidated and company statement of cash flows for the year then ended, and notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the consolidated and company as at 31 December 2023, and of its financial performance and cash flows for the year then ended in accordance with Accounting Standards for Business Enterprises (“ASBEs”).

II. Basis for opinion

We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with China Code of Ethics for Certified Public Accountants (the “Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

III. Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

Key audit matters:	How our audit addressed the key audit matter：
Sales rebates and incentives
The book value of sales rebates and incentives payable in the consolidated financial statements on December 31, 2023 was RMB 398,469,160.37, and the book value of sales rebates and incentives payable in the Company's financial statements was RMB 146,780,140.33. It is stipulated in the distribution agreement signed with the dealers that sales rebates and	Our audit procedures performed on sales rebates and incentives mainly include: 1) understand the internal control of sales rebate and incentives management, perform walkthrough and control test on identified controls; 2) check the distribution agreements signed

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other specific incentives should be given based on the purchase volume to offset against revenue. On the balance sheet date, sales rebates and incentives are estimated based on the dealers’ purchase volume and other rebates and promotion policies. Due to the large number of dealers and the various forms of sales rebates and incentives, the purchase volume of each dealer and the achievement of other performances needs to be considered in order to determine the period of sales rebates and incentives. The calculation of sales rebates and incentives depends on the judgment and estimate of the management.	with several dealers in 2023 and examine the provisions in the distribution agreements on sales rebates and incentives; 3) select a number of dealers to check whether the sales rebates and incentives obtained by them comply with the relevant sales policies, and check the application of these dealers' sales rebates and incentives; 4) review the year-end rebate provision process prepared by management and select samples to review the relevant supporting documents; 5) execute the subsequent review procedure to check the sales rebate payable by the Company at the end of the year and the actual payment status thereafter. 6) Review the adequacy of disclosures related to internal control of sales rebate and incentives.
Bad debt provision of accounts receivable
The book value of accounts receivable in the consolidated financial statements on December 31, 2023 was RMB 357,840,165.19, and the book value of the accounts receivable in the Company's financial statements was RMB 142,148,320.82. The management considers the credit risk characteristics of different customers and evaluates the expected credit losses (“ECLs”) of accounts receivable based on the aging portfolio. Then, on the basis of ECLs, the bad debt provision is measured according to the ECLs amount equivalent to the entire lifetime. The management considers reasonable and supportable information about past events, current conditions and forecasts of future economic conditions when assessing ECLs. The dealers’ customers are scattered and numerous, and the estimation of bad-debt provision for accounts receivable depends on the judgment and estimation of the management.	Our audit procedures performed on bad debt provision for accounts receivable mainly include: 1) for the accounts receivable that have been individually assessed for impairment, interview the managers of the sales department and the legal department, and review the basis for the management to estimate the bad debt provision, including the communication correspondences between the management and the relevant customers, the management’s assessment on credit risks of the customers in consideration of their operating conditions and historical payment record, etc.; 2) for the accounts receivable assessed by combination, review the management's setting of the combination of credit risk characteristics, key information such as the aging, and with the combination of credit risk characteristics (i.e. aging combination) as the base, review the management’s basis to assess the credit risk and ECLs amount, including testing historical default data, evaluating adjustments to historical loss rates based on current economic conditions, and evaluating forward-looking information by examining publicly available macroeconomic factors, and check the actual credit losses incurred during the year; 3) check the subsequent collection of accounts receivable, and consider the impact of subsequent events on the estimation of bad debt provision; 4) retest the calculation process of bad debt provision for accounts receivable, and review the amount of bad debtprovision;

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5) review the disclosure of bad debt provision for accounts receivable in the financial statements.

IV. Other information

The management of Aima Technology Group Co,. LTD. is responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion 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 the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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

The management of the Company is responsible for the preparation and fair presentation of the financial statements in accordance with ASBEs, and for designing, implementing and maintaining such internal control as the management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the management is responsible for assessing Aima Technology Group Co,. LTD.’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless either intend to liquidate Aima Technology Group Co,. LTD. or to cease operations or have no realistic alternative but to do so.

Those charged with governance is responsible for overseeing Aima Technology Group Co,. LTD.’s financial reporting process.

VI. Auditor’s responsibilities 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 material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with CSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are generally considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with CSAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

(3) Evaluate the appropriateness of accounting policies used and the reasonableness of

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accounting estimates and related disclosures made by the management.

(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

(5) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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

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

Ernst & Young Hua Ming LLP

Chinese Certified Public Accountant: Guo Jing

Chinese Certified Public Accountant: Zhao Ruiqing

Beijing, the People’s Republic of China 15 April 2024

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II. Financial Statements

Consolidated Balance Sheet

December 31, 2023

Prepared by Aima Technology Group Co,. LTD.

Unit: Yuan (RMB)	Unit: Yuan (RMB)	Unit: Yuan (RMB)	Unit: Yuan (RMB)
Items	Notes	December 31, 2023	December 31, 2022
Current assets:
Currencyfunds	VII.1	6,667,258,951.18	6,633,455,070.29
Settlement reserve
Inter-bank lending
Financial assets held for trading	VII.2	176,041,430.92	142,668,675.59
Derivative financial assets
Notes receivable
Accounts receivable	VII.5	357,840,165.19	290,365,547.11
Receivables financing	VII.7	8,893,241.61	8,332,754.00
Prepayments	VII.8	36,627,883.96	17,554,574.37
Receivablepremium
Reinsurance accounts receivable
Reserve for reinsurance contract receivable
Other receivables	VII.9	15,687,906.27	28,051,920.26
Including: Interest receivable		1,212,339.44	1,160,941.82
Dividend receivable
Redemptorymonetarycapital for sale
Inventories	VII.10	575,340,281.28	810,511,287.32
Contract assets
Assets classified as held for sale
Currentportion of non-current assets	VII.12	1,628,460,684.93	3,524,708,328.77
Other current assets	VII.13	119,888,220.69	77,023,491.16
Total current assets		9,586,038,766.03	11,532,671,648.87
Non-current assets:
Loan issuingand advance in cash
Debt investments
Other debt investments

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Long-term receivables
Long-term equityinvestments	VII.17	127,263,995.91	128,152,070.40
Other equityinvestments
Other non-current financial assets
Investmentproperties	VII.20	283,701,850.41	254,380,733.64
Fixed assets	VII.21	2,183,672,286.70	2,032,623,909.57
Construction inprogress	VII.22	992,205,279.91	86,011,318.10
Productive biological asset
Oil and Gas Assets
Right-of-use assets	VII.25	34,112,539.64	42,520,495.80
Intangible assets	VII.26	715,925,849.18	457,986,772.95
Development expenditures
Goodwill
Long-termprepaid expenses	VII.28	39,328,251.23	43,895,107.41
Deferred tax assets	VII.29	167,938,840.75	84,023,263.65
Other non-current assets	VII.30	5,762,625,958.57	3,809,089,833.43
Total non-current assets		10,306,774,852.30	6,938,683,504.95
Total assets		19,892,813,618.33	18,471,355,153.82
Current liabilities:
Short-term borrowings	VII.32		511,250,000.00
Borrowings from the central bank
Loans from other banks
Financial liabilities held for trading
Derivative financial liabilities
Notespayable	VII.35	6,032,204,440.66	6,853,338,997.32
Accountspayable	VII.36	2,459,299,045.99	2,535,832,081.83
Receipts in advance	VII.37	19,145,352.20	20,619,060.26
Contract liabilities	VII.38	625,232,267.97	638,429,605.04
Money from sale of the repurchased financial assets
Deposits taking and interbank
Actingtradingsecurities
Income from securities underwriting on commission
Employee benefitspayable	VII.39	171,544,807.08	162,900,880.50

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Taxes and surchargespayable	VII.40	140,201,158.00	154,033,696.44
Otherpayables	VII.41	628,111,216.14	564,648,489.37
Including: interestpayable
Dividendspayable
Service charge and commission payable
Payable reinsurance
Liabilities classified as held for sale
Currentportion of non-current liabilities	VII.43	17,568,122.60	5,682,224.67
Other current liabilities	VII.44	28,516,899.32	24,329,644.32
Total current liabilities		10,121,823,309.96	11,471,064,679.75
Non-current liabilities:
Reserve for insurance contract
Long-term borrowings
Bondspayable	VII.46	1,644,650,128.51
Including:preferred shares
Perpetual bond
Lease liabilities	VII.47	43,479,059.60	53,522,636.81
Long-termpayables
Long-term employee benefitspayable
Provisions
Deferred income	VII.51	292,432,400.56	198,066,664.29
Deferred tax liabilities	VII.29	10,356,257.80	14,379,454.97
Other non-current liabilities
Total non-current liabilities		1,990,917,846.47	265,968,756.07
Total liabilities		12,112,741,156.43	11,737,033,435.82
Shareholders’ equity：
Share capital	VII.53	861,925,007.00	574,700,004.00
Other equityinstruments		432,645,369.56
Including:preferred shares
Perpetual bond
Capital reserves	VII.55	1,763,412,639.40	1,977,765,415.63
Less: Treasurystock	VII.56	481,505,173.88	134,953,200.00
Other comprehensive income		268.34
Special reserves

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Surplus reserves	VII.59	430,962,503.50	290,784,296.91
General risks reserves
Retained earnings	VII.60	4,704,597,603.69	4,012,879,593.44
Total shareholders’ equity attributable to theparent company		7,712,038,217.61	6,721,176,109.98
Minorityshareholders’ equity		68,034,244.29	13,145,608.02
Total shareholder’s equity		7,780,072,461.90	6,734,321,718.00
Total Liabilities and Shareholder’s equity		19,892,813,618.33	18,471,355,153.82
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui

Balance Sheet, Parent Company

December 31, 2023

Prepared by: Aima Technology Group Co,. LTD.

Balance Sheet, Parent Company December 31, 2023 Prepared by: Aima Technology Group Co,. LTD.	Balance Sheet, Parent Company December 31, 2023 Prepared by: Aima Technology Group Co,. LTD.	Balance Sheet, Parent Company December 31, 2023 Prepared by: Aima Technology Group Co,. LTD.	Balance Sheet, Parent Company December 31, 2023 Prepared by: Aima Technology Group Co,. LTD.
Unit: Yuan(RMB)
Items	Notes	December 31, 2023	December 31, 2022
Current assets:
Currencyfunds		3,759,867,193.06	4,266,016,159.86
Financial assets held for trading		96,011,328.54	73,480,000.00
Derivative financial assets
Notes receivable
Accounts receivable	XIX.1	142,148,320.82	132,291,280.96
Receivables financing		800,000.00
Prepaid expenses		209,322,655.87	17,235,274.40
Other receivables	XIX.2	1,711,340,208.96	68,706,590.46
Including: Interest receivable		415,312.11	350,530.03
Dividend receivable
Inventories		1,219,904.61	4,103,773.21
Contract assets
Assets classified as held for sale
Currentportion of non-current assets		982,088,082.19	3,306,865,479.45
Other current assets		759,959.76
Total current assets		6,903,557,653.81	7,868,698,558.34
Non-current assets:
Debt investments
Other debt investments

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Long-term receivables
Long-term equityinvestments	XIX.3	1,110,377,202.67	1,141,022,337.98
Other equityinvestments
Other non-current financial assets
Investmentproperties		364,958,228.68	396,853,576.99
Fixed assets		48,328,609.98	53,213,577.74
Construction inprogress		14,009,791.48	21,015,488.53
Productive biological asset
Oil and Gas Assets
Right-of-use assets		2,197,714.93	6,601,760.89
Intangible assets		134,873,847.52	101,097,036.78
Development expenditures
Goodwill
Long-termprepaid expenses		12,210,197.77	21,412,482.96
Deferred tax assets		66,307,429.84
Other non-current assets		2,641,121,253.90	1,402,486,388.12
Total non-current assets		4,394,384,276.77	3,143,702,649.99
Total assets		11,297,941,930.58	11,012,401,208.33
Current liabilities:
Short-term borrowings
Financial liabilities held for trading
Derivative financial liabilities
Notespayable		2,357,961,214.82	4,513,457,663.63
Accountspayable		529,945,172.71	662,254,935.86
Receipts in advance		19,612,420.37	21,964,709.66
Contract liabilities		199,774,250.25	224,829,884.12
Employee benefitspayable		46,809,701.56	39,866,027.04
Taxes and surchargespayable		83,023,161.77	29,001,097.89
Otherpayables		406,117,301.77	396,088,908.57
Including: interestpayable
Dividendspayable
Liabilities classified as held for sale
Currentportion of non-current liabilities		7,353,401.71	4,555,680.46
Other current liabilities		6,713,755.59	8,375,154.72

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Total current liabilities		3,657,310,380.55	5,900,394,061.95
Non-current liabilities:
Long-term borrowings
Bondspayable		1,644,650,128.51
Including:preferred shares
Perpetual bond
Lease liabilities			2,353,501.71
Long-termpayables
Long-term employee benefitspayable
Provisions
Deferred income		67,366,822.35	52,366,165.75
Deferred tax liabilities			10,790,576.99
Other non-current liabilities
Total non-current liabilities		1,712,016,950.86	65,510,244.45
Total liabilities		5,369,327,331.41	5,965,904,306.40
Shareholders’ equity：
Share capital		861,925,007.00	574,700,004.00
Other equityinstruments		432,645,369.56
Including:preferred shares
Perpetual bond
Capital reserves		1,956,903,933.04	2,173,462,800.28
Less: Treasurystock		481,505,173.88	134,953,200.00
Other comprehensive income
Special reserves
Surplus reserves		430,962,503.50	290,784,296.91
Retained earnings		2,727,682,959.95	2,142,503,000.74
Total shareholder’s equity		5,928,614,599.17	5,046,496,901.93
Total Liabilities and Shareholder’s equity		11,297,941,930.58	11,012,401,208.33

Legal representative: Zhang Jian Financial controller: Zheng Hui supervisor: Zheng Hui

Accounting

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Consolidated Income Statement

Consolidated Income Statement	Consolidated Income Statement	Consolidated Income Statement	Consolidated Income Statement
2023 Unit: Yuan (RMB)
Items	Notes	2023	2022
I. Revenue		21,036,120,862.29	20,802,212,994.46
Including: operatingrevenue	VII.61	21,036,120,862.29	20,802,212,994.46
Interest income
Earned insurancepremium
Service charge and commission income
II. Total operatingcosts		18,957,888,320.63	18,647,645,240.06
Including: cost of sales	VII.61	17,562,865,946.73	17,398,502,632.36
Interestpayment
Service charge and commissionpayment
Surrender Value
Compensation expenses,net
Provision of reserve for insurance liabilities, net
Payment ofpolicydividend
Reinsurance expenses
Taxes and surcharges	VII.62	100,346,301.43	105,061,796.17
Sellingexpenses	VII.63	641,208,788.04	587,315,848.35
Administrative expenses	VII.64	474,276,849.74	432,777,222.67
Research and development expenses	VII.65	589,467,221.52	506,685,038.01
Financial expenses	VII.66	-410,276,786.83	-382,697,297.50
Including: Interest expenses		24,713,122.27	8,693,658.65
Interest income		437,121,544.42	394,300,036.06
Add: Other income	VII.67	173,159,360.74	78,130,046.97
Investment income(loss is stated with “-”)	VII.68	-21,396,254.38	-3,687,987.74
Including: Income from investments in associates and joint ventures		-28,590,454.64	-21,624,009.83
Income from the derecognition of financial assets measured at amortised cost
Exchange income (loss is stated with“-”)
Net position hedging gains (loss is stated

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with “-”)
Fair value gains (loss is stated with “-”)	VII.70	-17,226,650.77	-12,120,000.00
Credit impairment losses (loss is stated with “-”)	VII.71	-15,472,032.67	18,855,144.03
Impairment losses of assets (loss is stated with “-”)	VII.72	-3,823,176.99	-3,399,468.47
Gains on disposal of non-current assets (loss is stated with “-”)	VII.73	456,784.34	1,286,052.98
III. Operating profit(loss is stated with “-”)		2,193,930,571.93	2,233,631,542.17
Add: Non-operatingincome	VII.74	40,582,816.75	34,198,940.47
Less: Non-operatingexpenses	VII.75	21,155,434.76	40,844,163.45
IV. Totalprofit(total loss is stated with “-”)		2,213,357,953.92	2,226,986,319.19
Less: Income tax expense	VII.76	317,011,002.31	354,443,490.41
V. Net Profit(net loss is stated with “-”)		1,896,346,951.61	1,872,542,828.78
(I)Classified bycontinuityof operations
1. Profit from continuing operations (loss is stated with “-”)		1,896,346,951.61	1,872,542,828.78
2. Profit from discontinued operations (loss is stated with “-”)
(II) Classified by ownership
1. Profit attributable to owners of the parent (loss is stated with “-”)		1,881,115,782.35	1,873,433,343.24
2. Profit attributable to Minority shareholders’ equity (loss is stated with “-”)		15,231,169.26	-890,514.46
VI. Other comprehensive income, net of tax		268.34
(I) Other comprehensive income, net of tax, attributable to owners of the parent		268.34
1. Other comprehensive income that will not be reclassified to profit or loss
(1) Remeasurement of a defined benefit plan
(2) Other comprehensive income using the equity method that will not be reclassified to profit or loss
(3) Change in the fair value of other equity investments

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(4) Change in the fair value of the entity’s own credit risks
2. Other comprehensive income that may be reclassified to profit or loss		268.34
(1) Other comprehensive income using the equity method that may be reclassified to profit or loss
(2) Change in the fair value of other debt investments
(3) Amount recognized in other comprehensive income resulting from the reclassification of financial assets
(4) Provision for credit impairment of receivables financing
(5) Cash flow hedge reserve (Effective portion of cash flow hedges)
(6) Exchange differences on translation of foreign currency financial statements		268.34
(7)Others
(II) Other comprehensive income, net of tax, attributable to Minority shareholders’ equity
VII. Total comprehensive income		1,896,347,219.95	1,872,542,828.78
(I) Total comprehensive income attributable to owners of the parent		1,881,116,050.69	1,873,433,343.24
(II) Total comprehensive income attributable to Minority shareholders’ equity		15,231,169.26	-890,514.46
VIII. Earningsper share:
(I)Basic earning per share(Yuan/share)		2.20	3.31
(II)Diluted earning per share(Yuan/share)		2.12	3.31

Where business combinations involving entities under common control occurred in the current period, the net profit achieved by the acquirees before the combinations was RMB0.00, with the amount for last year being RMB0.00.

Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui

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Income Statement, Parent Company

2023

Unit: Yuan (RMB)

	2023		Unit: Yuan (RMB
Items	Notes	2023	2022
I. Operatingrevenue	XIX.4	8,354,752,676.28	8,263,777,075.64
Less: cost of sales	XIX.4	7,874,127,442.14	7,659,354,139.02
Taxes and surcharges		17,617,838.74	20,983,232.85
Sellingexpenses		221,248,416.20	229,438,863.69
Administrative expenses		268,936,664.85	237,029,411.46
Research and development expenses		2,758,407.10	8,732,594.46
Financial expenses		-241,758,174.14	-252,311,999.65
Including: Interest expenses		22,365,446.32	426,973.01
Interest income		264,174,764.59	255,146,331.63
Add: Other income		53,986,193.40	3,541,812.97
Investment income(loss is stated with “-”)	XIX.5	1,576,271,319.28	647,705,392.11
Including: Income from investments in associates and joint ventures		-38,817,295.52	-30,086,884.58
Income from the derecognition of financial assets measured at amortised cost
Net position hedging gains (loss is stated with “-”)
Fair value gains (loss is stated with “-”)		-17,395,271.46	-12,120,000.00
Credit impairment losses (loss is stated with “-”)		-2,262,133.56	-5,964,963.11
Impairment losses (loss is stated with “-”)
Gains on disposal of non-current assets (loss is stated with “-”)		366,292.26	149,760.98
II. OperatingProfit(loss is stated with “-”)		1,822,788,481.31	993,862,836.76
Add: Non-operatingincome		8,995,591.36	5,728,258.49
Less: Non-operatingexpenses		7,017,560.54	30,327,413.42
III. Totalprofit(total loss is stated with “-”)		1,824,766,512.13	969,263,681.83
Less: Income tax expense		50,188,780.82	79,720,727.74
IV. Net Profit(net loss is stated with “-”)		1,774,577,731.31	889,542,954.09
(I) Profit from continuing operations (net loss is stated with “-”)		1,774,577,731.31	889,542,954.09

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(II) Profit from a discontinued operation (net loss is stated with “-”)
V. Other comprehensive income, net of tax
(I) Other comprehensive income which cannot be re-classified into the gain and loss
1. Remeasurement of a defined benefit plan
2. Other comprehensive income using the equity method that will not be reclassified to profit or loss
3. Change in the fair value of other equity investments
4. Change in the fair value of the entity’s own credit risks
(II) Other comprehensive income that may be reclassified to profit or loss
1. Other comprehensive income using the equity method that may be reclassified to profit or loss
2. Change in the fair value of other debt investments
3. Amount recognised in other comprehensive income resulting from the reclassification of financial assets
4. Provision for credit impairment of receivables financing
5. Cash flow hedge reserve (Effective portion of cash flow hedges)
6. Exchange differences on translation of foreign currency financial statements
7. Others
VI. Total comprehensive income		1,774,577,731.31	889,542,954.09
VII. Earningsper share:
(I)Basic earning per share(Yuan/share)
(II)Diluted earning per share(Yuan/share)

Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui

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2023 Annual Report

Consolidated Statement of Cash Flows

2023 Unit: Yuan (RMB) Items Notes 2023 2022 I. Cash flows from operating activities Cash receipts from the sale of goods and the rendering of services 23,896,464,921.82 23,380,468,973.47 Net increase of customers’ deposit and due from banks Net increase of borrowings from the central bank Net increase of borrowings from other financial institutions Cash received from the premium of the original insurance contract Net cash received from the reinsurance business Net increase of the reserve from policy holders and investment Cash received from interest, service charge and commission Net increase of loan from other banks Net increase of fund from repurchase business Net cash received from securities trading on commission Receipts of taxes and surcharges refunds 68,378,509.66 116,364,189.79 Other cash receipts relating to operating activities VII.78 724,345,794.56 404,578,051.90 Total cash inflows from operating activities 24,689,189,226.04 23,901,411,215.16 Cash payments for goods and services 19,878,826,053.53 16,219,896,063.13 Net increase of loans and advances to customers Net increase of due from central bank and due from other banks	2023 Unit: Yuan (RMB) Items Notes 2023 2022 I. Cash flows from operating activities Cash receipts from the sale of goods and the rendering of services 23,896,464,921.82 23,380,468,973.47 Net increase of customers’ deposit and due from banks Net increase of borrowings from the central bank Net increase of borrowings from other financial institutions Cash received from the premium of the original insurance contract Net cash received from the reinsurance business Net increase of the reserve from policy holders and investment Cash received from interest, service charge and commission Net increase of loan from other banks Net increase of fund from repurchase business Net cash received from securities trading on commission Receipts of taxes and surcharges refunds 68,378,509.66 116,364,189.79 Other cash receipts relating to operating activities VII.78 724,345,794.56 404,578,051.90 Total cash inflows from operating activities 24,689,189,226.04 23,901,411,215.16 Cash payments for goods and services 19,878,826,053.53 16,219,896,063.13 Net increase of loans and advances to customers Net increase of due from central bank and due from other banks	2023 Unit: Yuan (RMB) Items Notes 2023 2022 I. Cash flows from operating activities Cash receipts from the sale of goods and the rendering of services 23,896,464,921.82 23,380,468,973.47 Net increase of customers’ deposit and due from banks Net increase of borrowings from the central bank Net increase of borrowings from other financial institutions Cash received from the premium of the original insurance contract Net cash received from the reinsurance business Net increase of the reserve from policy holders and investment Cash received from interest, service charge and commission Net increase of loan from other banks Net increase of fund from repurchase business Net cash received from securities trading on commission Receipts of taxes and surcharges refunds 68,378,509.66 116,364,189.79 Other cash receipts relating to operating activities VII.78 724,345,794.56 404,578,051.90 Total cash inflows from operating activities 24,689,189,226.04 23,901,411,215.16 Cash payments for goods and services 19,878,826,053.53 16,219,896,063.13 Net increase of loans and advances to customers Net increase of due from central bank and due from other banks	2023 Unit: Yuan (RMB) Items Notes 2023 2022 I. Cash flows from operating activities Cash receipts from the sale of goods and the rendering of services 23,896,464,921.82 23,380,468,973.47 Net increase of customers’ deposit and due from banks Net increase of borrowings from the central bank Net increase of borrowings from other financial institutions Cash received from the premium of the original insurance contract Net cash received from the reinsurance business Net increase of the reserve from policy holders and investment Cash received from interest, service charge and commission Net increase of loan from other banks Net increase of fund from repurchase business Net cash received from securities trading on commission Receipts of taxes and surcharges refunds 68,378,509.66 116,364,189.79 Other cash receipts relating to operating activities VII.78 724,345,794.56 404,578,051.90 Total cash inflows from operating activities 24,689,189,226.04 23,901,411,215.16 Cash payments for goods and services 19,878,826,053.53 16,219,896,063.13 Net increase of loans and advances to customers Net increase of due from central bank and due from other banks
Items	Notes	2023	2022
I. Cash flows from operating activities
Cash receipts from the sale of goods and the rendering of services		23,896,464,921.82	23,380,468,973.47
Net increase of customers’ deposit and due from banks
Net increase of borrowings from the central bank
Net increase of borrowings from other financial institutions
Cash received from the premium of the original insurance contract
Net cash received from the reinsurance business
Net increase of the reserve from policy holders and investment
Cash received from interest, service charge and commission
Net increase of loan from other banks
Net increase of fund from repurchase business
Net cash received from securities trading on commission
Receipts of taxes and surcharges refunds		68,378,509.66	116,364,189.79
Other cash receipts relating to operating activities	VII.78	724,345,794.56	404,578,051.90
Total cash inflows from operating activities		24,689,189,226.04	23,901,411,215.16
Cash payments for goods and services		19,878,826,053.53	16,219,896,063.13
Net increase of loans and advances to customers
Net increase of due from central bank and due from other banks

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Cash from payment for settlement of the original insurance contract
Net increase of the lending capital
Cash paid for interest, service charge and commission
Cash for payment of policy dividend
Cash payments to and on behalf of employees		1,287,828,119.70	1,225,598,702.09
Payments of all types of taxes and surcharges		944,279,435.22	837,473,429.98
Other cash payments relating to operating activities	VII.78	713,979,383.69	566,988,903.02
Total cash outflows from operating activities		22,824,912,992.14	18,849,957,098.22
Net cash flows from operating activities		1,864,276,233.90	5,051,454,116.94
II. Cash flows from investing activities:
Cash receipts from returns of investments	VII.78	3,798,013,400.00	1,148,910,000.00
Cash receipts from returns on investments		400,454,611.75	20,575,165.50
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets		19,630,741.82	15,787,319.61
Net cash receipts from disposal of subsidiaries and other business units
Net cash receipts from acquisition of subsidiaries	VII.78	33,504,341.91
Other cash receipts relating to investing activities
Total cash inflows from investing activities		4,251,603,095.48	1,185,272,485.11
Cash payments to acquire fixed assets, intangible assets and other long-term assets		1,960,197,416.09	842,288,846.59
Cash payments for investments		4,201,598,392.90	2,521,302,800.00
Net increase of the pledged loan
Net cash payments for acquisition of

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subsidiaries and other business units
Other cash payments relating to investing activities
Total cash outflows from investing activities		6,161,795,808.99	3,363,591,646.59
Net cash flows from investing activities		-1,910,192,713.51	-2,178,319,161.48
III. Cash flows from financing activities:
Cash proceeds from investments by others		10,000,000.00	29,989,800.00
Including: Cash receipts from capital contributions from Minority shareholders’ equity of subsidiaries		10,000,000.00	4,500,000.00
Cash receipts from borrowing		1,996,200,000.00	511,250,000.00
Other cash receipts relating to financing activities	VII.78	511,250,000.00
Total cash inflows from financing activities		2,517,450,000.00	541,239,800.00
Cash repayments for debts		511,250,000.00
Cash payments for distribution of dividends or profit and interest expenses		1,049,358,585.51	206,028,719.13
Including: Dividends or profit paid to minority shareholders of subsidiaries			778,717.63
Other cash payments relating to financing activities	VII.78	412,292,512.63	517,454,858.42
Total cash outflows from financing activities		1,972,901,098.14	723,483,577.55
Net cash flows from financing activities		544,548,901.86	-182,243,777.55
IV. Effect of foreign exchange rate changes on cash and cash equivalents		-274,612.34	-967,800.79
V. Net increase in cash and cash equivalents		498,357,809.91	2,689,923,377.12
Add: Cash and cash equivalents at the beginning of the year		5,536,066,687.82	2,846,143,310.70
VI. Cash and cash equivalents at the end of the year		6,034,424,497.73	5,536,066,687.82

Legal representative: Zhang Jian

Financial controller: Zheng Hui

Accounting

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supervisor: Zheng Hui

Statement of Cash Flows, Parent Company 2023

Statement of Cash Flows, Parent Company 2023	Statement of Cash Flows, Parent Company 2023	Statement of Cash Flows, Parent Company 2023	Statement of Cash Flows, Parent Company 2023
Unit: Yuan (RMB)
Items	Notes	2023	2022
I. Cash flows from operating activities
Cash receipts from the sale of goods and the rendering of services		9,438,114,650.31	9,269,088,699.76
Receipts of tax and surcharges refunds		6,299,378.62	6,047,760.47
Other cash receipts relating to operating activities		835,991,369.61	123,287,403.34
Total cash inflows from operating activities		10,280,405,398.54	9,398,423,863.57
Cash payments for goods and services		11,352,110,681.81	6,519,217,665.28
Cash payments to and on behalf of employees		244,553,401.41	240,801,779.74
Payments of all types of taxes and surcharges		145,435,668.96	97,132,482.41
Other cash payments relating to operating activities		214,734,997.84	673,977,904.75
Total cash outflows from operating activities		11,956,834,750.02	7,531,129,832.18
Net cash flows from operating activities		-1,676,429,351.48	1,867,294,031.39
II. Cash flows from investing activities:
Cash receipts from returns of investments		4,261,278,955.56	407,856,433.66
Cash receipts from returns on investments		1,981,835,143.07	685,878,871.32
Net cash received from disposal of fixed assets, intangible assets and other long-term assets		494,489.30	2,116,717.78
Net cash receipts from disposal of subsidiaries and other business units
Other cash receipts relating to investing activities		78,400,000.00	170,000,000.00
Total cash inflows from investing activities		6,322,008,587.93	1,265,852,022.76
Cash payments to acquire fixed assets, intangible assets and other long-term assets		139,274,868.57	113,428,354.80

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Cash payments for investments		3,104,473,596.77	924,392,160.00
Net cash payments for acquisition of subsidiaries and other business units
Other cash payments relating to other investing activities		1,662,407,805.56	15,400,000.00
Total cash outflows from investing activities		4,906,156,270.90	1,053,220,514.80
Net cash flows from investing activities		1,415,852,317.03	212,631,507.96
III. Cash flows from financing activities:
Cash proceeds from investments by others			28,909,800.00
Cash receipts from borrowings		1,996,200,000.00
Other cash receipts relating to financing activities
Total cash inflows from financing activities		1,996,200,000.00	28,909,800.00
Cash repayments for debts
Cash payments for distribution of dividends or profit and interest expenses		1,049,358,585.51	205,250,001.50
Other cash payments relating to financing activities		405,630,244.74	4,761,904.76
Total cash outflows from financing activities		1,454,988,830.25	210,011,906.26
Net cash flows from financing activities		541,211,169.75	-181,102,106.26
IV. Effect of foreign exchange rate changes on cash and cash equivalents		-81,207.07	-713,369.57
V. Net increase in cash and cash equivalents		280,552,928.23	1,898,110,063.52
Add: Cash and cash equivalents at the beginning of the year		3,279,300,018.25	1,381,189,954.73
VI. Cash and cash equivalents at the end of the year		3,559,852,946.48	3,279,300,018.25
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui

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		Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)	Consolidated Statement of Changes in Owner’s Equity 2023 Unit: Yuan (RMB)
Items		2023
		Owners’ equity attributable to the parent company												Non- controlling interests	Total sharehold ers’ equity
	Share capital	Other equity instruments			Capital reserves	Less: Treasury stock	Other compre hensive income	Spe cial rese rves	Surplus Reserves	Reser ves for gener al risks	Retained earnings	Oth ers	Sub-total
		Prefe rred shar es	Pe rpe tua l bo nd	Othe rs
I. Balance at end of prior year	574,70 0,004.0 0				1,977,765, 415.63	134,953, 200.00			290,784,2 96.91		4,012,879,5 93.44		6,721,176, 109.98	13,145,60 8.02	6,734,32 1,718.00
Add: Changes in accounting policy
Correction of prior period errors

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Business combination involving entities under common control
Others
II. Balance at the beginning of the year	574,70 0,004.0 0				1,977,765, 415.63	134,953, 200.00			290,784,2 96.91		4,012,879,5 93.44		6,721,176, 109.98	13,145,60 8.02	6,734,32 1,718.00
III. Changes for the year (decrease is stated with “-”)	287,22 5,003.0 0			432, 645, 369. 56	-214,352,7 76.23	346,551, 973.88	268.34		140,178,2 06.59		691,718,01 0.25		990,862,1 07.63	54,888,63 6.27	1,045,75 0,743.90
(I) Total comprehensive income							268.34				1,881,115,7 82.35		1,881,116, 050.69	15,231,16 9.26	1,896,34 7,219.95
(II) Shareholders’ contributions and reduction in capital	-124,99 9.00			432, 645, 369.	72,997,22 5.77	346,551, 973.88					139,020.00		159,104,6 42.45	39,657,46 7.01	198,762, 109.46

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				56
1. Capital contributions by shareholders	1,001.0 0			-8,65 3.09	39,834.69								32,182.60		32,182.6 0
2. Capital contributed by other equity instruments holders				432, 654, 022. 65									432,654,0 22.65		432,654, 022.65
3. Amount of share-based payments recognised in equity					70,168,93 1.98								70,168,93 1.98		70,168,9 31.98
4. Others	-126,00 0.00				2,788,459. 10	346,551, 973.88					139,020.00		-343,750,4 94.78	39,657,46 7.01	-304,093, 027.77
(III) Profit Distribution						-			140,178,2 06.59		-1,189,536, 792.10		-1,049,358 ,585.51	-	-1,049,35 8,585.51
1. Transfer to surplus									140,178,2		-140,178,20

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reserves									06.59		6.59
2. Transfer to general risks reserves
3. Distribution to shareholders											-1,049,358, 585.51		-1,049,358 ,585.51		-1,049,35 8,585.51
4. Others
(IV) Internal carry-over of owners’ equity	287,35 0,002.0 0				-287,350,0 02.00
1. Capitalisation of capital reserves	287,35 0,002.0 0				-287,350,0 02.00
2. Capitalisation of surplus reserves
3. Loss made up by

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surplus reserves
4. Transfer of changes in the defined benefit plan to retained earnings
5. Transfer of other comprehensive income to retained earnings
6. Others
(V) Special reserves
1. Appropriation for the year
2. Utilization for the year
(VI) Others
IV. Balance at end of	861,92 5,007.0			432, 645,	1,763,412,	481,505,			430,962,5		4,704,597,6		7,712,038,	68,034,24	7,780,07

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year	0			369. 56	369. 56	639.40	173.88	268.34	268.34		03.50		03.69		217.61	4.29	2,461.90
		2022 Owners’ equity attributable to the parent company Non- controllin g interests Total shareho lders’ equity Other equity instruments Capital reserves Less: Treasury stock Othe r com preh ensiv e inco me Sp eci al res erv es Surplus Reserves Rese rves for gene ral risks Retained earnings Oth ers Sub-total Pre ferr ed sha res Per pet ual bon d O th er s 1,935,68 6,839.31 201,830, 001.50 2,433,650, 547.11 4,974,82 7,390.92 4,940,33 9.11 4,979,7 67,730. 03
Items		2022
		Owners’ equity attributable to the parent company														Non- controllin g interests	Total shareho lders’ equity
	Share capital	Other equity instruments				Capital reserves	Less: Treasury stock		Othe r com preh ensiv e inco me	Sp eci al res erv es	Surplus Reserves	Rese rves for gene ral risks	Retained earnings	Oth ers	Sub-total
		Pre ferr ed sha res	Per pet ual bon d		O th er s
I. Balance at end of prior year	403,660 ,003.00					1,935,68 6,839.31					201,830, 001.50		2,433,650, 547.11		4,974,82 7,390.92	4,940,33 9.11	4,979,7 67,730. 03
Add: Changes in accounting policy

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Correction of prior period errors
Others
II. Balance at the beginning of the year	403,660 ,003.00				1,935,68 6,839.31				201,830, 001.50		2,433,650, 547.11		4,974,82 7,390.92	4,940,33 9.11	4,979,7 67,730. 03
III. Changes for the year (decrease is stated with “-”)	171,040 ,001.00				42,078,5 76.32	134,953, 200.00			88,954,2 95. 41		1,579,229, 046.33		1,746,34 8,719.06	8,205,26 8.91	1,754,5 53,987. 97
(I) Total comprehensive income											1,873,433, 343.24		1,873,43 3,343.24	-890,514. 46	1,872,5 42,828. 78
(II) Shareholders’ contributions and reduction in capital	6,840,0 00.00				212,194, 107.94	134,953, 200.00							84,080,9 07.94	3,958,97 0.38	88,039, 878.32
1. Capital contributions by shareholders	6,960,0 00.00				131,533, 200.00	134,953, 200.00							3,540,00 0.00	4,500,00 0.00	8,040,0 00.00

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2. Capital contributed by other equity instruments holders
3. Amount of share-based payments recognised in equity					80,660,9 07.94								80,660,9 07.94		80,660, 907.94
4. Others	-120,00 0.00												-120,000. 00	-541,029. 62	-661,02 9.62
(III) Profit Distribution									88,954,2 95.41		-294,204,2 96.91		-205,250, 001.50	-778,717. 63	-206,02 8,719.1 3
1. Transfer to surplus reserves									88,954,2 95.41		-88,954,29 5.41
2. Transfer to general risk reserves
3. Distribution to											-205,250,0		-205,250,	-778,717.	-206,02

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shareholders											01.50		001.50	63	8,719.1 3
4. Others
(IV) Internal carry-over of owners’ equity	164,200 ,001.00				-170,115, 531.62								-5,915,53 0.62	5,915,53 0.62
1. Capitalisation of capital reserves	164,200 ,001.00				-164,200, 001.00
2. Capitalisation of surplus reserves
3. Loss made up by surplus reserves
4. Transfer of changes in the defined benefit plan to retained earnings
5. Transfer of other comprehensive income to retained

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earnings
6. Others					-5,915,53 0.62								- 5,915,53 0.62	5,915,53 0.6 2
(V) Special reserves
1. Appropriation for the year
2. Utilisation for the year
(VI) Others
IV. Balance at end of year	574,700 ,004.00				1,977,76 5,415.63	134,953, 200.00			290,784, 296.91		4,012,879, 593.44		6,721,17 6,109.98	13,145,6 08.02	6,734,3 21,718. 00

Legal representative: Zhang Jian

Financial controller: Zheng Hui

Accounting supervisor: Zheng Hui

Statement of Changes in Owner’s Equity, Parent Company 2023

Unit: Yuan (RMB)

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2023 Annual Report

Items		2023	2023	2023	2023	2023	2023	2023	2023	2023	2023
	Share capital	Other equity instruments			Capital reserves	Less: Treasury stock	Other comprehe nsive income	Specia l reserv es	Surplus Reserves	Retained earnings	Total shareholders’ equity
		Preferred shares	Perpet ual bond	Others
I. Balance at end of prior year	574,700,004.0 0				2,173,462,800 .28	134,953,200. 00			290,784,296. 91	2,142,503,00 0.74	5,046,496,901.93
Add: Changes in accounting policy
Correction of prior period errors
Others
II. Balance at the beginning of the year	574,700,004.0 0				2,173,462,800 .28	134,953,200. 00			290,784,296. 91	2,142,503,00 0.74	5,046,496,901.93
III. Decrease/increase of the report year (decrease	287,225,003.0 0			432,64 5,369.	-216,558,867. 24	346,551,973. 88			140,178,206.	585,179,959. 21	882,117,697.24

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is stated with “-”)				56					59
(I) Total comprehensive income										1,774,577,73 1.31	1,774,577,731.31
(II) Shareholders’ contributions and reduction in capital	-124,999.00			432,64 5,369. 56	69,120,966.67	346,551,973. 88			-	139,020.00	155,228,383.35
1. Capital contributions by shareholders	1,001.00			-8,653. 09	39,834.69						32,182.60
2. Capital contributed by other equity instruments holders				432,65 4,022. 65							432,654,022.65
3. Amount of payment for shares counted to shareholders’ equity					70,168,931.98						70,168,931.98
4. Others	- 126,000.00				-1,087,800.00	346,551,973. 88				139,020.00	-347,626,753.88
(III) Profit Distribution									140,178,206. 59	-1,189,536,7	-1,049,358,585.5

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										92.10	1
1. Transfer to surplus reserves									140,178,206. 59	-140,178,206 .59	-
2. Distributions to shareholders										-1,049,358,5 85.51	-1,049,358,585.5 1
3. Others											-
(IV) Internal carry-over of owners’ equity	287,350,002.0 0				-287,350,002. 00
1. Capitalisation of capital reserves	287,350,002.0 0				-287,350,002. 00
2. Capitalisation of surplus reserves
3. Loss made up by surplus reserves
4. Transfer of changes in the defined benefit plan to

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retained earnings
5. Transfer of other comprehensive income to retained earnings
6. Others
(V) Special reserves
1. Appropriation for the year
2. Utilization for the year
(VI) Others					1,670,168.09						1,670,168.09
IV. Balance at end of year	861,925,007.0 0			432,64 5,369. 56	1,956,903,933 .04	481,505,173. 88			430,962,503. 50	2,727,682,95 9.95	5,928,614,599.17

Year 2022

Items

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2023 Annual Report

	Share capital	Other equity instruments	Other equity instruments	Other equity instruments	Capital reserves	Less: Treasury stock	Other compreh ensive income	Specia l reserv es	Surplus Reserves	Retained earnings	Total shareholder s’ equity
		Preferred shares	Perpetu al bond	Other s
I. Balance at end of prior year	403,660,003. 00				1,910,845,16 1.11				201,830,00 1.50	1,547,164,3 43.56	4,063,499,5 09.17
Add: Changes in accounting policy
Correction of prior period errors
Others
II. Balance at the beginning of the year	403,660,003. 00				1,910,845,16 1.11				201,830,00 1.50	1,547,164,3 43.56	4,063,499,5 09.17
III. Decrease/increase of the report year (decrease is stated with “-”)	171,040,001. 00				262,617,639. 17	134,953,2 00.00			88,954,295. 41	595,338,65 7.18	982,997,39 2.76
(I) Total comprehensive income										889,542,95 4.09	889,542,95 4.09
(II) Shareholders’ contributions and reduction	6,840,000.00				426,817,640.	134,953,2					298,704,44

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in capital					17	00.00					0.17
1. Capital contributions by shareholders	6,960,000.00				131,533,200. 00	134,953,2 00.00					3,540,000.0 0
2. Capital contributed by other equity instruments holders
3. Amount of payment for shares counted to shareholders’ equity					80,660,907.9 4						80,660,907. 94
4. Others	-120,000.00				214,623,532. 23						214,503,53 2.23
(III) Profit Distribution									88,954,295. 41	-294,204,2 96.91	-205,250,0 01.50
1. Transfer to surplus reserves									88,954,295. 41	-88,954,29 5.41
2. Distributions to shareholders										-205,250,0 01.50	-205,250,0 01.50
3. Others

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(IV) Internal carry-over of owners’ equity	164,200,001. 00				-164,200,001 .00
1. Capitalisation of capital reserves	164,200,001. 00				-164,200,001 .00
2. Capitalisation of surplus reserves
3. Loss made up by surplus reserves
4. Transfer of changes in the defined benefit plan to retained earnings
5. Transfer of other comprehensive income to retained earnings
6. Others
(V) Special reserves
1. Appropriation for the year
2. Utilization for the year
(VI) Others

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IV. Balance at end of year	574,700,004. 00				2,173,462,80 0.28	134,953,2 00.00			290,784,29 6.91	2,142,503,0 00.74	5,046,496,9 01.93

Legal representative: Zhang Jian

Financial controller: Zheng Hui

Accounting supervisor: Zheng Hui

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III. Company Profile

1. About the Company

√Applicable □Not applicable

Aima Technology Group Co,. LTD. is a joint stock limited company registered in Tianjin, People's Republic of China. It was established on September 27, 1999. The Company is headquartered at 5 Aima Road, Jinghai Economic Development Zone, Tianjin.

The Company's principal business includes development, manufacturing and sales of electric bicycles, electric mopeds and electric motorcycles.

The Company's controlling shareholder is Mr. Zhang Jian, a natural person.

IV. Basis for preparation of financial statements

1. Preparation Basis

These financial statements have been prepared in accordance with Accounting Standards for Business Enterprises - Basic Standard and specific accounting standards, implementation guidance, interpretations and other relevant provisions issued subsequently by the Ministry of Finance (the “MOF”) (collectively referred to as “ASBEs”). In addition, the financial statements also disclose relevant financial information in accordance with the Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No. 15- General Provisions on Financial Reporting.

2. Operation on Going Concern Basis

√Applicable □Not applicable

The financial statements of the Company have been prepared on going concern basis. The financial statements have been prepared under the historical cost convention, except for certain financial instruments. If the assets are impaired, corresponding provisions for impairment shall be made according to relevant requirements.

V. Significant accounting policies and estimates

Presentation on specific accounting policies and accounting estimates

√Applicable □Not applicable

The Company has formulated specific accounting policies and accounting estimates based on the practical production and operation characteristics, which are mainly reflected in the bad debts of receivables, inventory valuation methods, provision for write-down of inventories, depreciation and amortization of investment properties, depreciation of fixed assets, amortization of intangible assets, amortization of long-term prepaid expenses, recognition and measurement of revenue, etc.

1. Statement on complying with the accounting standard for business enterprises

The Company declares that the financial statements prepared by the Company comply

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with requirements of the enterprise accounting standards, truly and completely reflect the concerned information, including the Company’s financial position, results of their operations, changes in shareholders' equity, cash flow, etc. of the year then ended.

2. Accounting period

The accounting year of the Group is a calendar year, i.e., from 1 January to 31 December of each year.

3. Business Cycle

√Applicable □Not applicable

The Company takes 12 months as a business cycle.

4. Functional currency for bookkeeping

The Company’s functional currency is Renminbi (“RMB”).

5. Determination method and selection basis of materiality criteria

√Applicable □Not applicable

Items	Materiality criteria
Significant construction in progress	Ending balance exceeds 5 ‰ of the company's total assets
Significant other payables aged over 1 year	Individual other payables greater than RMB100 million
Significant cash flows from investing activities	Individual cash flows greater than RMB500 million

6. The accounting treatment on business consolidation under the common control and not under the common control

√Applicable □Not applicable

Business combinations are classified into business combinations involving entities under common control and business combinations not involving entities under common control.

(1) Business combinations involving entities under common control

A business combination involving entities under common control is a business combination in which all of the combining entities are ultimately controlled by the same party or parties both before and after the combination, and the control is not temporary.

The assets and liabilities (including goodwill arising from the ultimate controlling party’s acquisition of the entity being absorbed) that are obtained by the absorbing entity in a business combination involving entities under common control shall be measured on the basis of their carrying amounts in the financial statements of the ultimate controlling party at the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination or the aggregate face value of shares issued as consideration shall be adjusted to capital

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premium under capital reserves. If the capital premium is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings.

(2) Business combinations not involving entities under common control

A business combination not involving entities under common control is a business combination in which all of the combining entities are not ultimately controlled by the same party or parties both before and after the combination.

The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities acquired in the business combination at their fair values on the acquisition date.

Goodwill is initially recognised and measured at the difference between the combination cost and the acquiree's share of the fair value of the acquiree's identifiable net assets acquired in the combination. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. If the combination cost is less than any fair value of the Group’s previously held equity interest in the acquiree is lower than the Group’s interest in the fair value of the acquiree’s net identifiable assets, the Group reassesses the measurement of the fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities. If after that reassessment, the combination cost is still lower than the Group’s interest in the fair value of the acquiree’s net identifiable assets, the Group recognises the remaining difference in profit or loss.

7. Judgment standard of control and preparation method of consolidated financial statements

√Applicable □Not applicable

The scope of the consolidated financial statements, which include the financial statements of the Company and all of its subsidiaries, is determined on the basis of control. A subsidiary is an entity that is controlled by the Company (such as an enterprise, a deemed separate entity, or a structured entity controlled by the Company). An investor can control an investee if and only if the investor has three elements: the investor has power over the investee; variable returns due to participation in the investee's activities; ability to use its power over the investee to influence the amount of its return.

Where the accounting policies or accounting periods adopted by a subsidiary are inconsistent with those of the Company, necessary adjustments shall be made to the financial statements of the subsidiary in accordance with the accounting policies and accounting periods of the Company when preparing the consolidated financial statements. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Where the loss for the current period attributable to Minority shareholders’ equity of a subsidiary exceeds the Minority shareholders’ equity of the opening balance of equity of the subsidiary, the excess shall still be allocated against the Minority shareholders’ equity.

For subsidiaries acquired through business combinations not involving entities under common control, the financial performance and cash flows of the acquiree shall be

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consolidated from the date on which the Group obtains control, and continue to be consolidated until the date such control ceases. While preparing the consolidated financial statements, the Group shall adjust the subsidiary’s financial statements, on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities recognised on the acquisition date.

For subsidiaries acquired through business combinations involving entities under common control, the financial performance and cash flows of the entity being absorbed shall be consolidated from the beginning of the period in which the combination occurs. While preparing the comparative financial statements, adjustments are made to related items in the financial statements for the prior period as if the reporting entity after the combination has been in existence since the date the ultimate controlling party first obtained the control.

The Group reassesses whether or not it controls an investee if any change in facts and circumstances indicates that there are changes to one or more of the three elements of control.

A change in the Minority shareholders’ equity, without a loss of control, is accounted for as an equity transaction.

8 . Classification of joint arrangement and joint operation

□Applicable √Not applicable

9.Cash and cash equivalents

Cash comprises the Group’s cash on hand and bank deposits that can be readily withdrawn on demand. Cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash, and are subject to an insignificant risk of changes in value.

10. Foreign currency transactions and foreign currency translation

√Applicable □Not applicable

The Group translates foreign currency transactions into its functional currency.

Foreign currency transactions are initially recorded, on initial recognition in the functional currency using average exchange rates for the period in which the transactions occur. However, the capital invested by investors in foreign currencies is translated at the spot exchange rate on the transaction date. Monetary items denominated in foreign currencies are translated at the spot exchange rates ruling at the balance sheet date. Differences arising on settlement or translation of monetary items are recognised in profit or loss, with the exception of those relating to foreign currency borrowings specifically for the construction and acquisition of qualifying assets, which are capitalised in accordance with the guidance for capitalisation of borrowing costs. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates of the initial recognition, and the amount denominated in the functional currency is not changed. Non-monetary items measured at fair value in a foreign currency are translated

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using the exchange rates at the date when the fair value was measured. The resulting exchange differences are recognised in profit or loss or other comprehensive income depending on the nature of the non-monetary items.

For foreign operations, the Group translates their functional currency amounts into RMB when preparing the financial statements as follows: as at the balance sheet date, the assets and liabilities are translated using the spot exchange rate at the balance sheet date, and equity items other than “unappropriated profit” are translated at the spot exchange rates at the dates of transactions; revenue and expense items in profit or loss are translated using the average exchange rates for the period during which the transactions occur (unless this is inappropriate due to exchange rate fluctuations, in which case the spot exchange rates prevailing on the dates of the transactions are used). The resulting exchange differences are recognised in other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is recognised in profit or loss. If the disposal only involves a portion of a particular foreign operation, the component of other comprehensive income relating to that particular foreign operation is recognised in profit or loss on a pro-rata basis.

Foreign currency cash flows and the cash flows of foreign subsidiaries are translated using the average exchange rates for the period during which the cash flows occur (unless this is inappropriate due to exchange rate fluctuations, in which case the spot exchange rates prevailing on the dates of cash flows are used). The effect of exchange rate changes on cash is separately presented as an adjustment item in the statement of cash flows.

11. Financial instruments

√Applicable Not applicable

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(1) Recognition and derecognition

The Group recognises a financial asset or a financial liability when it becomes a party to the contractual provisions of a financial instrument.

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group’s consolidated balance sheet) when:

① the rights to receive cash flows from the financial asset have expired;

② the Group has transferred its rights to receive cash flows from the financial asset, or

has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either has transferred substantially all the risks and rewards of the financial asset, or has neither transferred nor retained

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substantially all the risks and rewards of the asset, but has transferred control of the financial asset.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and a recognition of a new liability, and the difference between the respective carrying amounts is recognised in profit or loss.

Regular way purchases and sales of financial assets are recognised and derecognised using trade date accounting. Regular way purchases or sales are purchases or sales of financial assets that require delivery within the period generally established by regulation or convention in the marketplace in accordance with a contract. The trade date is the date that the Group committed to purchase or sell a financial asset.

(2) Classification and measurement of financial assets

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them: financial assets at amortised cost, financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss.

Financial assets are measured at fair value on initial recognition, but accounts receivable or notes receivable arising from the sale of goods or rendering of services that do not contain significant financing components or for which the Group has applied the practical expedient of not adjusting the effect of a significant financing component due within one year, are initially measured at the transaction price.

For financial assets at fair value through profit or loss, relevant transaction costs are directly recognised in profit or loss, and transaction costs relating to other financial assets are included in the initial recognition amounts.

The subsequent measurement of financial assets depends on their classification as follows:

① Debt investments measured at amortised cost

The Group measures financial assets at amortised cost if both of the following conditions are met: the financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortised cost are subsequently measured using the effective interest method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. Such financial assets mainly include currency funds, notes receivable, accounts receivable and other receivables.

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② Debt investments at fair value through other comprehensive income

The Group measures debt investments at fair value through other comprehensive income if both of the following conditions are met: the financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income is recognised using the effective interest method. The interest income, impairment losses and foreign exchange revaluation are recognised in profit or loss. The remaining fair value changes are recognised in other comprehensive income. Upon derecognition, the cumulative fair value change recognised in other comprehensive income is recycled to profit or loss.

③ Financial assets at fair value through profit or loss

The financial assets other than the above financial assets measured at amortised cost and financial assets at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Such financial assets are subsequently measured at fair value with net changes in fair value recognised in profit or loss.

(3) Classification and measurement of financial liabilities

The financial liabilities of the Company are, on initial recognition, classified as: financial liabilities measured at amortised cost. Transaction costs relating to financial liabilities measured at amortised cost are included in the initial recognition amounts.

The subsequent measurement of financial liabilities depends on their classification:

Financial liabilities measured at amortised cost

Such financial liabilities are subsequently measured at amortised cost using the effective interest method.

(4) Impairment of financial instruments

Based on the expected credit losses (“ECLs”), the Group recognises an allowance for ECLs for the financial assets measured at amortised cost, debt investments at fair value through other comprehensive income.

For accounts receivable and contract assets that do not contain a significant financing component, the Group applies the simplified approach to recognise a loss allowance based on lifetime ECLs.

Except for financial assets which apply the simplified approach as mentioned above, other financial assets, the Group assesses whether the credit risk has increased significantly since initial recognition at each balance sheet date. If the credit risk has not increased significantly since initial recognition (stage 1), the loss allowance is measured at an amount equal to 12-month ECLs by the Group and the interest income is calculated

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according to the carrying amount and the effective interest rate; if the credit risk has increased significantly since initial recognition but are not credit-impaired (stage 2), the loss allowance is measured at an amount equal to lifetime ECLs by the Group and the interest income is calculated according to the carrying amount and the effective interest rate; if such financial assets are credit-impaired after initial recognition (stage 3), the loss allowance is measured at an amount equal to lifetime ECLs by the Group and the interest income is calculated according to the amortised cost and the effective interest rate. For financial instruments with lower credit risk on the balance sheet date, the Company assumes that its credit risk has not increased significantly since the initial recognition.

The Group assesses the expected credit losses of financial instruments based on individual items and portfolios. The Group has considered the credit risk characteristics of different customers, based on common risk characteristics and assessed the expected credit losses of receivables based on the age combination.

The Group considers reasonable and supportable information about past events, current conditions and forecasts of future economic conditions when assessing expected credit losses.

When the Group no longer reasonably expects to collect all or part of the contractual cash flows of the financial asset, the Group directly writes down the carrying amount of the financial asset.

(5) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts; and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(6) Convertible bonds

When the Group issues convertible bonds, it determines whether they contain both liability and equity components according to the terms. If the issued convertible bonds contain both liabilities and equity components, the liabilities and equity components shall be separated and treated separately at initial recognition. At the time of separation, the fair value of the liability component is first measured and used as its initial recognition amount, and then the initial recognition amount of the equity component is determined according to the amount after deducting the initial recognition amount of the liability component from the issue price of the convertible bond as a whole. Transaction costs are allocated between the liability component and the equity component at their respective relative fair values. The liability component is disclosed as a liability and subsequently measured at amortised cost until cancelled, converted or redeemed. The equity component is disclosed as equity and is not subsequently measured. Convertible bonds issued only include liability components and embedded derivatives, that is, if the share conversion right has the characteristics of embedded derivatives, it will be separated from the convertible bonds as a whole, treated separately as a derivative financial instrument, and initially recognized at its fair value. The excess of the issue price over initial recognition as

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a derivative financial instrument is recognised as a debt instrument. Transaction costs are allocated on the basis of the issue price of debt instruments and derivative financial instruments on initial recognition. Transaction costs related to debt instruments are recognised as liabilities and transaction costs related to derivative financial instruments are recognised in profit or loss for the period.

(7) Transfer of Financial Assets

A financial asset is derecognised when the Group has transferred substantially all the risks and rewards of the asset to the transferee. A financial asset is not derecognised when the Group retains substantially all the risks and rewards of the financial asset.

When the Group has neither transferred nor retained substantially all the risks and rewards of the financial asset, it either (i) derecognises the financial asset and recognises the assets and liabilities created in the transfer when it has not retained control of the asset; or (ii) continues to recognise the transferred asset to the extent of the Group's continuing involvement, in which case, the Group also recognises an associated liability.

Continuing involvement that takes the form of a guarantee over the transferred financial asset is measured at the lower of the original carrying amount of the financial asset and the guarantee amount. The guarantee amount is the maximum amount of consideration that the Group could be required to repay.

12. Notes receivable

□Applicable √Not applicable

13. Accounts receivable

√Applicable □Not applicable

Method for determination and accounting treatment of the expected credit loss of accounts receivables

√Applicable □Not applicable

For details, please refer to “11. Financial Instruments" and "V. 39. Other Important Accounting Policies and Accounting Estimates" of "V. Significant Accounting Policies and Accounting Estimates" in "Section 10. Financial Report".

Combination category and determination basis of provision for bad debts based on credit risk characteristics

□Applicable √Not applicable

Aging calculation method based on the combination of credit risk characteristics recognized by aging

□Applicable √Not applicable

Judgment criteria for determining individual provision for bad debts

□Applicable √Not applicable

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14.Receivables financing

√Applicable □Not applicable

Method for determination and accounting treatment of the expected credit loss of receivables financing

√Applicable □Not applicable

For details, please refer to “11. Financial Instruments" and "V. 39. Other Important Accounting Policies and Accounting Estimates" of "V. Significant Accounting Policies and Accounting Estimates" in "Section 10. Financial Report".

Combination category and determination basis of provision for bad debts based on credit risk characteristics

□Applicable √Not applicable

Aging calculation method based on the combination of credit risk characteristics recognized by aging

□Applicable √Not applicable

Judgment criteria for determining individual provision for bad debts

□Applicable √Not applicable

15. Other receivables

√Applicable □Not applicable

Method for determination and accounting treatment of the expected credit loss of other receivables

√Applicable □Not applicable

For details, please refer to “11. Financial Instruments" and "V. 39. Other Important Accounting Policies and Accounting Estimates" of "V. Significant Accounting Policies and Accounting Estimates" in "Section 10. Financial Report".

Combination category and determination basis of provision for bad debts based on credit risk characteristics

□Applicable √Not applicable

Aging calculation method based on the combination of credit risk characteristics recognized by aging

□Applicable √Not applicable

Judgment criteria for determining individual provision for bad debts

□Applicable √Not applicable

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16. Inventories

√Applicable □Not applicable

Inventory category, delivery valuation method, inventory system, amortization method of low value consumables and packaging materials.

√Applicable □Not applicable

The Company’s inventories consist of raw materials, work-in-process and finished goods.

Inventories are initially carried at cost. Cost of inventories comprises all costs of purchase, costs of conversion and other costs. For inventories delivered, the actual costs are determined on the weighted average basis. Turnover materials include low value consumables and packing materials, which are on the immediate write-off basis.

The Company adopts the perpetual inventory system.

Recognition criteria and accrual method of write-down

√Applicable □Not applicable

At the balance sheet date, inventories are stated at the lower of cost and net realizable value. The inventories are written down below cost to net realizable value and the write-down is recognised in profit or loss if the cost is higher than the net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale and relevant taxes.

Combination category and determination basis for provision for write-down based on combination, and determination basis for net realizable value of different categories of inventories

□Applicable √Not applicable

The calculation method and determination basis of the net realizable value of each stock age combination for recognizing the net realizable value of inventory based on the stock age

□Applicable √Not applicable

17. Contract assets

□Applicable √Not applicable

18. Non-current assets held for sale or disposal groups

□Applicable √Not applicable

Recognition criteria and accounting treatment methods for non-current assets held for sale or disposal groups

□Applicable √Not applicable

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Recognition criteria and disclosure method for discontinued operations

□Applicable √Not applicable

19. Long-term equity investments

√Applicable □Not applicable

Long-term equity investments include equity investments in subsidiaries, joint ventures and associates.

A long-term equity investment is initially measured at its initial investment cost on acquisition. The initial cost of a long-term equity investment acquired through a business combination involving enterprises under common control is the Company’s share of the carrying amount of the subsidiary’s equity in the consolidated financial statements of the ultimate controlling party at the combination date. The difference between the initial investment cost and the carrying amounts of the consideration given is adjusted to the capital premium in the capital reserve, with any excess adjusted to retained earnings. For a long-term equity investment acquired through a business combination not under common control, the combination cost shall be recognised as the initial investment cost (if a business combination not under common control is achieved step by step through multiple transactions, the sum of the book value of the equity investment held by the acquiree before the acquisition date and the newly increased investment cost on the acquisition date shall be taken as the initial investment cost). For a long-term equity investment other than a long-term equity investment formed by a business combination, the initial investment cost shall be determined according to the following methods: for a long-term equity investment obtained by paying cash, the actual purchase price paid and the expenses, taxes and other necessary expenses directly related to the acquisition of the long-term equity investment shall be regarded as the initial investment cost; For those obtained by issuing equity securities, the initial investment cost shall be the fair value of the equity securities issued. For a long-term equity investment obtained through a business combination not involving enterprises under common control, the initial cost comprises the aggregate of the fair value of assets transferred, liabilities incurred or assumed, and equity securities issued by the Company, in exchange for control of the acquiree. For a long-term equity investment obtained through a business combination not involving enterprises under common control and achieved in stages, the initial cost comprises the carrying value of the previously-held equity investment in the acquiree immediately before the acquisition date, and the additional investment cost at the acquisition date. For long-term equity investments obtained by means other than business combination, the initial investment cost is determined according to the following method: for those obtained by paying cash, the actual purchase price paid and the expenses, taxes and other necessary costs directly related to the acquisition of long-term equity investments shall be used. Expenses are taken as the initial investment cost. For those obtained by issuing equity securities, the fair value of the issued equity securities is taken as the initial investment cost.

For a long-term equity investment where the Company can exercise control over the

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investee, the long-term investment is accounted for using the cost method in the Company’s individual financial statements. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

Under the cost method, the long-term equity investment is measured at its initial investment cost. When additional investment is made or the investment is recouped, the cost of long-term equity investment is adjusted accordingly. Cash dividends or profit distributions declared by the investee are recognised as investment income in profit or loss.

The equity method is adopted when the Group has joint control, or exercises significant influence over the investee. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control with other parties over those policies.

Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Group’s interest in the fair value of the investee’s identifiable net assets at the acquisition date, no adjustment is made to the initial investment cost. Where the initial investment cost is less than the Group’s interest in the fair values of the investee’s identifiable net assets at the acquisition date, the difference is charged to profit or loss, and the cost of the long-term equity investment is adjusted accordingly.

Under the equity method, after it has acquired a long-term equity investment, the Group recognises its share of the investee’s profit or loss, as well as its share of the investee’s other comprehensive income, as investment income or loss and other comprehensive income, and adjusts the carrying amount of the investment accordingly. The Group recognises its share of the investee’s profit or loss after making appropriate adjustments to the investee’s profit or loss based on the fair value of the investee’s identifiable assets at the acquisition date, using the Group’s accounting policies and periods. Unrealised profits and losses from transactions with its joint ventures and associates are eliminated to the extent of the Group’s investments in the associates or joint ventures (except for assets that constitute a business) (However, any loss arising from such transactions which are attributable to an impairment loss shall be recognised at its entirety). The carrying amount of the investment is reduced based on the Group’s share of any profit distributions or cash dividends declared by the investee. The Group’s share of losses of the investee is recognised to the extent that the carrying amount of the investment together with any long-term interests that in substance form part of its net investment in the investee is reduced to zero, except that the Group has the obligations to assume further losses. The Group’s share of the investee’s equity changes, other than those arising from the investee’s profit or loss, other comprehensive income or profit distribution, is recognised in the Group’s equity, and the carrying amount of the long-term equity investment is adjusted accordingly.

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20. Investment properties

(1) If the cost measurement model is used：

Depreciation or amortization method

An investment property is measured initially at cost. If the economic benefits relating to an investment property will probably flow in and the cost can be reliably measured, subsequent costs incurred for the property are included in the cost of the investment property. Otherwise, subsequent costs are recognised in profit or loss as incurred.

The Group uses the cost model for the subsequent measurement of its investment properties. For the depreciation method of houses and buildings in investment real estate, please refer to the relevant content of “Section 10 V. 21 Fixed Assets”, and for the amortization method of land use rights in investment real estate, please refer to “Section 10 V. 26 Intangible Assets".

21. Fixed asset

(1) Recognition of fixed assets

√Applicable □Not applicable

A fixed asset is recognised only when the economic benefits associated with the asset will probably flow into the Group and the cost of the asset can be measured reliably. Subsequent expenditures incurred for a fixed asset that meets the recognition criteria shall be included in the cost of the fixed asset, and the carrying amount of the component of the fixed asset that is replaced shall be derecognised. Otherwise, such expenditures are recognised in profit or loss as incurred.

The fixed assets are initially measured at the cost. The cost of a purchased fixed asset comprises the purchase price, relevant taxes and any directly attributable expenditure for bringing the asset to working condition for its intended use.

(2) Depreciation methods

√Applicable □Not applicable

Categories	Depreciation method	Useful life (year)	Residual rate	Annual depreciation rate
Buildings	Straight-line method	20	5%	4.75%
Machinery and equipment	Straight-line method	10	5%	9.50%
Office equipment	Straight-line method	5	5%	19.00%
Vehicles	Straight-line method	4	5%	23.75%
Electronic equipment	Straight-line method	3	5%	31.67%

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	Production tools	Straight-line method	3	5%	31.67%

The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at each year end, and make adjustments if necessary.

22. Construction in progress

√Applicable □Not applicable

The cost of construction in progress is determined according to the actual expenditures incurred for the construction, including all necessary construction expenditures incurred during the construction period and other relevant expenditures.

When the asset is ready for its intended use, the criteria for an item of construction in progress is transferred to fixed assets、intangible assets and long-term deferred expenses are as follows:

are as follows:
Items	Criteria for transfer to fixed assets
Buildings	The earlier of actual start of use/completion of acceptance
Machinery and equipment	The earlier of actual start of use/completion of installation and acceptance

23. Borrowing costs

√Applicable □Not applicable

The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised. The amounts of other borrowing costs incurred are recognised as an expense in the period in which they are incurred.

Borrowing costs are capitalised when capital expenditure and borrowing costs have been incurred and the acquisition, construction or production activities necessary to bring the asset to its intended use or sale have commenced.

Capitalisation of borrowing costs ceases when the qualifying asset being acquired, constructed or produced gets ready for its intended use or sale. Any borrowing costs subsequently incurred are recognised in profit or loss.

During the capitalisation period, the amount of interest eligible for capitalisation for each accounting period shall be determined as follows: where funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of interest eligible for capitalisation is the actual interest costs incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds; or where funds are borrowed generally for the purpose of obtaining a qualifying asset, the amount of interest eligible for capitalisation is determined by applying a weighted average interest rate on the

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general borrowings to the weighted average of the excess of the cumulative expenditures on the asset over the expenditures on the asset funded by the specific borrowings.

Capitalisation of borrowing costs is suspended during periods in which the acquisition, construction or production of a qualifying asset is suspended abnormally by activities other than those necessary to get the asset ready for its intended use or sale, when the suspension is for a continuous period of more than 3 months. Borrowing costs incurred during these periods are recognised as an expense in profit or loss until the acquisition, construction or production is resumed.

24. Biological assets

□Applicable √Not applicable

25. Oil and gas assets

□Applicable √Not applicable

26. Intangible assets

(1) Useful life, determination basis, estimation, amortization method or review procedures

√Applicable □Not applicable

Intangible assets are amortised on a straight-line basis over their useful lives as follows:

Items	Useful Life	Determination basis
Land use rights	50 years	The shorter of the term /expected useful life of the land use right
Software	5-10 years	The shorter of the servi ce life /expected useful life of software
Trademarks	5-10 years	The shorter of validity period/expected useful life of trademarks

(2) Collection scope and relevant accounting treatment methods of research and development expenditure

√Applicable □Not applicable

The Group classifies the expenditures on an internal research and development project into expenditure on the research phase and expenditure on the development phase. Expenditure on the research phase is recognised in profit or loss as incurred. Expenditure on the development phase is capitalised only when the Group can demonstrate all of the following: (i) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (ii) the intention to complete the intangible asset and use or sell it; (iii) how the intangible asset will generate probable future economic benefits (among other things, the Group can demonstrate the existence of a market for the output of the

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intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset); (iv) the availability of adequate technical, financial and other resources to complete the development and the ability to use or sell the intangible asset; and (v) the ability to measure reliably the expenditure attributable to the intangible asset during the development phase. Expenditure on the development phase which does not meet these above criteria is recognised in profit or loss when incurred.

27. Impairment of long-term assets

√Applicable □Not applicable

The Group determines the impairment of assets other than impairment of inventories, deferred income tax and financial assets, using the following methods: the Group assesses at the balance sheet date whether there is any indication that an asset may be impaired. If any indication exists that an asset may be impaired, the Group estimates the recoverable amount of the asset and performs impairment testing. Goodwill arising from a business combination and an intangible asset with an indefinite useful life are tested for impairment at least at each year end, irrespective of whether there is any indication that the asset may be impaired. Intangible assets that have not been ready for their intended use are tested for impairment each year.

The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. The Group estimates the recoverable amount on an individual basis unless it is not possible to estimate the recoverable amount of the individual asset, in which case the recoverable amount is determined for the asset group to which the asset belongs. Identification of an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from other assets or asset groups.

When the recoverable amount of an asset or asset group is less than its carrying amount, the carrying amount is reduced to the recoverable amount by the Group. The reduction in the carrying amount is treated as an impairment loss and recognised in profit or loss. A provision for impairment loss of the asset is recognised accordingly.

Once the above impairment loss is recognised, it cannot be reversed in subsequent accounting periods.

28. Long-term prepaid expenses

√Applicable □Not applicable

Long-term expenses to be apportioned are amortized using the straight-line method, and the amortization period is as follows:

the amortization period is as follows:
Items	Amortization term
Buildingdecoration	36 months
Leasehold Improvement	36 months
Others	24 to 60 months

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29. Contract liabilities

√Applicable □Not applicable

The Company presents contract liabilities in the balance sheet based on the relationship between the performance of the contract obligations and the payment by the customer.

A contractual liability is an obligation to transfer goods or service to a customer for consideration received or receivable from the customer, such as money that a business has received before transferring the promised goods or service.

30. Employee benefits

Employee benefits refer to all forms of consideration or compensation other than share-based payments given by the Group in exchange for services rendered by employees or for termination of employment. Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and other long-term employee benefits.

(1) Accounting treatment of short-term salaries

√Applicable □Not applicable

The Company recognizes the actual short-term remuneration as a liability during the accounting period when employees provide services to the Group, and stated in the profit or loss or the cost of related assets.

(2) Accounting treatment of post-employment benefits

√Applicable □Not applicable

The employees of the Group participate in a pension scheme and unemployment insurance managed by the local government, the corresponding expenses shall be included in the cost of related assets or profit or loss.

(3) Dismission benefits

□Applicable √Not applicable

(4) Other long term employees' benefits

□Applicable √Not applicable

31. Provisions

√Applicable □Not applicable

An obligation related to a contingency shall be recognised by the Group as a provision when the obligation is a present obligation of the Group, and it is probable that an outflow of economic benefits from the Group will be required to settle the obligation. Additionally, a reliable estimate can be made of the amount of the obligation.

A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation, taking into account factors pertaining to a contingency such

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as the risks, uncertainties and time value of money as a whole.

32. Share-based payment

√Applicable □Not applicable

A share-based payment is classified as either an equity-settled share-based payment or a cash-settled share-based payment. An equity-settled share-based payment is a transaction in which the Group receives services and uses shares or other equity instruments as consideration for settlement.

An equity-settled share-based payment in exchange for services received from employees is measured at the fair value of the equity instruments granted to the employees. If such equity-settled share-based payment could vest immediately, related costs or expenses at an amount equal to the fair value on the grant date are recognised, with a corresponding increase in capital reserves; if such equity-settled share-based payment could not vest until the completion of services for a vesting period, or until the achievement of a specified performance condition, the Group at each balance sheet date during the vesting period recognises the services received for the current period as related costs and expenses, with a corresponding increase in capital reserves, at an amount equal to the fair value of the equity instruments at the grant date, based on the best estimate of the number of equity instruments expected to vest. The fair value is determined using the market price, please refer to "Section 10 XV".

Where the terms of an equity-settled share-based award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification that increases the total fair value of the share-based payments, or is otherwise beneficial to the employee as measured at the date of modification.

Where an equity-settled share-based award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. This includes any award where non-vesting conditions within the control of either the Group or the employee are not met. However, if a new award is substituted for the cancelled award, and is designated as a replacement on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award.

33. Other financial instruments, such as preferred shares, perpetual bonds, etc.

□Applicable √Not applicable

34. Revenue

(1) Accounting policies used in revenue recognition and measurement by types of business

√Applicable □Not applicable

Revenue from contracts with customers is recognised when the Group has fulfilled its performance obligations in the contracts, that is, when the customer obtains control of

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relevant goods or services. Control of relevant goods or services refers to the ability to direct the use of the goods, or the provision of the services, and obtain substantially all of the remaining benefits from the goods or services.

① Contracts for the sale of goods

When the Group delivers goods such as two-wheeled electric vehicles to customers, revenue is generally recognized at a point of time based on the following indicators, which include: the time of goods leave the factory for non-export sales, the time of goods are loaded on board for export sales, a present right to payment for goods, the transfer of significant risks and rewards of ownership of goods, the transfer of legal title to goods, the transfer of physical possession of goods, the customer's acceptance of goods, the time of customer sign-off if the Group is responsible for transportation.

The amount of consideration to which the Group expects to be entitled as a result of the transfer of goods to a customer is determined as the transaction price in accordance with the terms of the contract and in combination with past business practices. Some contracts of the Group stipulate that when customers purchase more than a certain quantity of goods, they can enjoy a certain discount, which directly offsets the amount payable by customers when they purchase goods in the future. The Group makes the best estimate of the discount based on the expected value or the most likely amount, and the transaction price after estimating the discount is included in the transaction price to the extent that the transaction price after estimating the discount does not exceed the amount that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved, and reestimates it at each balance sheet date.

For sales with a right of return, the Group recognises the revenue in the amount of consideration to which the Group expects to be entitled in exchange for transferring control of the goods to the customer, and recognises the amount expected to be refunded as a result of the sales return as a refund liability. At the same time, an asset recognised for an entity’s right to recover goods from a customer on settling a refund liability is measured by reference to the carrying amount of the goods less any expected costs to recover the goods (including potential decreases in the value of the returned goods), that is, right-of-return assets, and recognised cost of sales based on the carrying amount of the transferred goods at the time of transfer of the goods less the net amount of the asset cost above. At each balance sheet date, the Group re-estimates the future sales return and remeasures the assets and liabilities above.

The Group provides a warranty in connection with the sale of a good in accordance with the contract and the relevant laws and regulations, etc. For the purpose of an assurance-type warranty that provides the customer the assurance that the good complies with agreed-upon specifications, please refer to “Section 10 V.31”.

② Contracts for the rendering of services

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The Group guarantees its performance obligations by providing after-sales service to customers. Because the customer simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs, the revenue is recognised over time only if the Group can reasonably measure its progress towards the complete satisfaction of the performance obligation. The Company uses the straight-line method and determines the progress of the services rendered on the basis of the time elapsed. If the progress towards the complete satisfaction of the performance obligation cannot be reasonably measured, but the Group expects to recover the costs incurred in satisfying the performance obligation, the revenue is recognised only to the extent of the costs incurred until such time that the Group can reasonably measure the progress towards the complete satisfaction of the performance obligation.

The amount of consideration to which the Group expects to be entitled as a result of the transfer of services to a customer is determined as the transaction price in accordance with the terms of the contract and in combination with past business practices. The Group accounts for the consideration payable to a customer as a reduction of the transaction price, and recognises the reduction of revenue when (or as) the later of the recognition of relevant revenue and the payment (or promised payment) of the consideration to a customer, unless the payment to the customer is in exchange for a distinct good or service that the customer transfers to the Group.

(2) Different revenue recognition and measurement methods caused by the adoption of different business models for similar businesses

□Applicable √Not applicable

35. Contract cost assets

√Applicable □Not applicable

The Group’s contract cost assets include the costs to obtain and fulfil a contract and are classified as inventories, other current assets and other non-current assets by liquidity.

The Group recognises as an asset the incremental costs of obtaining a contract with a customer if the Group expects to recover those costs, unless the amortisation period of the asset is one year or less.

Other than the costs which are capitalised as inventories, fixed assets and intangible assets, etc., costs incurred to fulfil a contract with a customer are capitalised as an asset if all of the following criteria are met:

(1) the costs relate directly to a contract or to an anticipated contract, including direct labor, direct materials, overheads (or similar expenses), costs that are explicitly chargeable to the customer and other costs that are incurred only because an entity entered into the contract;

(2) the costs generate or enhance resources of the Group that will be used in satisfying performance obligations in the future; and

(3) the costs are expected to be recovered.

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The contract cost asset is amortised and charged to profit or loss on a systematic basis that is consistent with the pattern of the revenue to which the asset related is recognised.

The Group accrues provisions for impairment and recognises impairment losses to the extent that the carrying amount of a contract cost asset exceeds:

(1) the remaining amount of consideration that the entity expects to receive in exchange for the goods or services to which the asset relates; less

(2) the costs that are expected to be incurred to transfer those related goods or services.

36. Government grants

√Applicable □Not applicable

Government grants are recognised when all attaching conditions will be complied with, and the grants will be received. If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable.

Asset-related government grants are recognised when the government document designates that the government grants are used for constructing or forming long-term assets. If the government document is inexplicit, the Company should make a judgement based on the basic conditions to obtain the government grants, and recognises them as asset-related government grants if the conditions are to form long-term assets through construction or other method. Otherwise, the government grants should be income-related.

The Company's government grants are subject to the gross method.

A government subsidy related to income, which is used to compensate the related costs or losses in the future period, is recognised as deferred income, and is recorded into the profit or loss or to offset the relevant costs during the period when the related costs and expenses or losses are recognised; costs or losses incurred in compensation is directly recorded into the profit or loss or offset the relevant costs.

A government grant relating to an asset shall be offset against the carrying amounts of relevant assets, or recognised as deferred income and amortised in profit or loss over the useful life of the related asset by annual instalments in a systematic and rational way (however, a government grant measured at a nominal amount is recognised directly in profit or loss). Where the assets are sold, transferred, retired or damaged before the end of their useful lives, the rest of the remaining deferred income is released to profit or loss for the period in which the relevant assets are disposed of.

37. Deferred income tax asset/deferred income tax liability

√Applicable □Not applicable

For temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts, and temporary differences between the carrying amounts and the tax bases of items, the tax bases of which can be determined according to related tax laws for tax purposes, but which have not been recognised as assets and

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liabilities, deferred taxes are provided using the balance sheet liability method.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

(1) when the taxable temporary difference arises from the initial recognition of goodwill, or an asset or liability in an individual transaction that is not a business combination and, at the time of transaction, affects neither accounting profit nor taxable profit or loss, and the initial recognition of assets and liabilities does not result in equal taxable temporary differences and deductible temporary differences, and the initial recognition of assets and liabilities does not result in equal taxable temporary differences and deductible temporary differences; and

(2) in respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not be reversed in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, and the carryforward of unused tax losses and any unused tax credits. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, the carryforward of unused tax losses and unused tax credits can be utilized, except:

(1) when the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and

(2) in respect of the deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, deferred tax assets are only recognised to the extent that it is probable that the temporary differences will be reversed in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized in the future.

At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, in accordance with the requirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects, at the balance sheet date, to recover the assets or settle the liabilities.

The carrying amount of deferred tax assets is reviewed at the balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available in future periods to allow the deferred tax assets to be utilized. Unrecognised deferred tax assets are reassessed at the balance sheet date and are recognised to the extent that it has become probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered.

Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a legally enforceable right to set off current tax assets and current tax liabilities, and the

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deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

38. Leases

√Applicable □Not applicable

Judgement basis and accounting method for lessees to simplify short-term leases and leases of low-value assets

√Applicable □Not applicable

The Group considers a lease that, at the commencement date of the lease, has a lease term of 12 months or less, and does not contain any purchase option as a short-term lease; and a lease for which the individual underlying asset with a lower value when it is new as a lease of low-value assets. The Group does not recognize right-of-use assets and lease liabilities for short-term leases and low-value asset leases. The Group recognises lease payments on short-term leases and leases of low-value assets in the costs of the related asset or profit or loss on a straight-line basis

At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

As lessee

The Group recognises lease liabilities and right-of-use assets, except for short-term leases and leases of low-value assets.

Right-of-use assets

At the commencement date of the lease term, the Group recognises its right to use the leased asset during the lease term as a right-of-use asset, initially measured at cost. The cost of right-of-use assets includes: the initial measurement amount of lease liabilities; lease payments made on or before the commencement date of the lease term (net of amounts relating to lease incentives received); initial direct expenses incurred by the lessee; the costs that the lessee expects to incur to dismantle and remove the leased asset, restore the site where the leased asset is located, or restore the leased asset to the state agreed in the lease terms. If the Group remeasures lease liabilities due to changes in lease payments, the carrying amount of right-of-use assets is adjusted accordingly. The Group subsequently depreciates right-of-use assets using the straight-line method. If it can be reasonably determined that the ownership of the leased asset will be obtained at the expiration of the lease term, the Group shall make depreciation for the remaining service life of the leased asset. If it is impossible to reasonably determine that ownership of the leased asset can be obtained at the end of the lease term, the Group shall make depreciation during the shorter of the lease term and the remaining useful life of the

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leased asset.

Lease liabilities

At the commencement date of the lease term, the Group recognises the present value of the lease payments that have not yet been paid as a lease liability, except for short-term leases and leases of low-value assets. Lease payments include fixed and substantially fixed payments after deducting lease incentives, variable lease payments that depend on an index or ratio, amounts expected to be payable based on residual value of the guarantee, and also the exercise price of the purchase option or the amount payable to exercise the termination option, provided that the Group is reasonably certain that the exercise of the option or the lease term reflects the exercise of the termination option by the Group.

In calculating the present value of lease payments, the Group uses the interest rate implicit in the lease as the discount rate; If the interest rate implicit in the lease cannot be determined, the lessee's incremental borrowing rate shall be used as the discount rate. The Group calculates the interest expense of the lease liability for each period of the lease term at a fixed periodic interest rate and includes it in profit or loss for the current period, unless otherwise specified as being included in the cost of related assets. Variable lease payments that are not included in the measurement of lease liabilities are recognised in profit or loss for the period in which they are incurred, unless otherwise specified as being included in the cost of the relevant asset.

After the commencement date of the lease term, the Group increases the carrying amount of the lease liability upon recognition of interest and decreases the carrying amount of the lease liability upon payment of lease payments. The Group remeasures lease liabilities at the present value of the changed lease payments when there is a change in the amount of substantially fixed payments, a change in the amount expected to be payable in the residual value of the guarantee, a change in the index or rate used to determine the lease payments, a change in the assessment or actual exercise of the purchase option, renewal option or termination option.

Classification criteria and accounting method for leases as lessors

√Applicable □Not applicable

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset, except that a lease is classified as an operating lease at the inception date.

As the lessor of operating lease

Rental income under an operating lease is recognised on a straight-line basis

over the lease term, through profit or loss. Variable lease payments that are not included in the measurement of lease receivables are charged to profit or loss as incurred. Initial direct costs are capitalised and recognised over the lease term on the same basis as rental income, through profit or loss.

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39. Other Important Accounting Policy and Accounting Estimates

√Applicable □Not applicable

1. Share repurchase

The consideration and transaction costs paid for the repurchase of its own equity instruments reduce shareholders' equity. Except for share-based payment, the issuance (including refinancing), repurchase, sale or cancellation of own equity instruments are treated as changes in equity.

2. Fair value measurement

The Group measures receivables financing at fair value at each balance sheet date. Fair value refers to the price that market participants can receive from selling an asset or pay to transfer a liability in an orderly transaction on the measurement date.

For assets and liabilities measured or disclosed at fair value in the financial statements, the level of fair value shall be determined according to the lowest level input value that is important for the fair value measurement as a whole: Level 1 inputs value, the unadjusted quotation in the active market of the same assets or liabilities that can be obtained on the measurement date; Level 2 inputs value, inputs other than Level 1 inputs that are directly or indirectly observable for the relevant asset or liability; Level 3 inputs value, unobservable inputs for related assets or liabilities.

At each balance sheet date, the Group reassesses the assets and liabilities recognised in the financial statements that are measured at fair value on an ongoing basis to determine whether there is a transition between fair value measurement levels.

1. The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and their accompanying disclosures, and the disclosure of contingent liabilities at the balance sheet date. Uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amounts of the assets or liabilities affected in the future.

(1) Judgments

In applying the Group's accounting policies, management has made the following judgements that have a significant effect on the amounts recognised in the financial statements:

1 Classification of investment properties and owner-occupied properties

The Group determines whether the property held meets the definition of investment property and establishes relevant standards in making judgments. The Group classifies property held for rental or capital appreciation, or both, as investment property. Therefore, the Group considers whether the manner in which the property generates cash flows is largely independent of other assets held by the Group. Some properties are partly used to earn rent or capital appreciation, and the remainder is used to produce goods, provide

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services or manage operations. If the portion used to earn rent or capital appreciation can be sold or leased separately, the Group accounts for that portion separately. If not, the property is classified as an investment property only if the part used for the production of goods, the provision of services or the operation and management is not significant. The Group makes a separate judgment on an individual property basis when determining whether the ancillary services are significant enough to make the property ineligible for recognition as an investment property.

(2) Estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the future accounting periods, are described below.

① Impairment of financial instruments

Commencing from January 1, 2019, the Company has adopted the expected credit loss model to assess the impairment of financial instruments. The Group is required to perform significant judgement and estimation and take into account all reasonable and supportable information, including forward-looking information. When making such judgements and estimates, the Group infers the expected changes in the debtor's credit risk based on historical repayment data combined with economic policies, macroeconomic indicators, industry risks and other factors. The different estimates may impact the impairment assessment, and the provision for impairment may also not be representative of the actual impairment loss in the future.

② Impairment of non-current assets other than financial assets (other than goodwill)

The Group assesses whether there are any indications of impairment for all non-current assets other than financial assets at the balance sheet date. Intangible assets with indefinite useful lives are tested for impairment annually and at other times when such an indication exists. Other non-current assets other than financial assets are tested for impairment when there are indications that the carrying amounts may not be recoverable. An impairment exists when the carrying amount of an asset or asset group exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and the present value of the future cash flows expected to be derived from it. The calculation of the fair value less costs of disposal based on available data from binding sales transactions in an arm’s length transaction of similar assets or observable market prices less incremental costs for disposing of the assets. When the calculations of the present value of the future cash flows expected to be derived from an asset or asset group are undertaken, management must estimate the expected future cash flows from the asset or asset group and choose a suitable discount rate in order to calculate the present value of those cash flows.

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③ Provision of sales rebates and rewards

The Group applies the sales rebate and incentive policy to the dealers. According to the relevant stipulations in the distribution agreement, with reference to the completion of the agreed assessment indicators by the dealers, sales rebates and incentives are estimated and accrued at the end of each year.

40. Changes in significant accounting policies and accounting estimates

(1) Change in accounting policies

√Applicable □Not applicable

Unit: Yuan (RMB)

Contents and reasons for changes in accounting policies	Name of reporting items significantly affected	Amount affected
Interpretation No.16 of Accounting Standards for Business Enterprises issued in 2022 stipulates that the provisions on exemption from initial recognition of deferred income tax shall not apply to individual transactions that are not business combinations, do not affect accounting profits or taxable income (or deductible losses) at the time of transactions, and the initially recognized assets and liabilities lead to equal taxable temporary differences and deductible temporary differences. With effect from 1 January 2023, the Group changes the taxable temporary differences and deductible temporary differences arising from the initial recognition of assets and liabilities to the corresponding deferred tax liabilities and deferred tax assets for lease transactions initially recognized as lease liabilities and included in right-of-use assets at the commencement date of the lease term. In accordance with the transition requirements, the Group has adjusted the above transactions that occurred between the beginning of the earliest period in which the interpretation was first applied to the presentation of the financial statements and the date of the change in accounting policy.	Deferred tax assets and deferred tax liabilities	-

Other notes

None

(2) Change of Significant Accounting Estimates

□Applicable √Not applicable

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(3) First-time implementation of new accounting standards or interpretations of standards, etc. from 2023 involves adjustments to the financial statements as of the beginning of the year of first-time implementation.

□Applicable √Not applicable

41. Others

□Applicable √Not applicable

VI. Taxes

1. Types of major taxes and tax rates

Types of major taxes and tax rates

√Applicable □Not applicable

Types of taxes	Tax basis	Tax rates
Value-added tax	Difference between sales amount and output tax calculated at applicable tax rate after deductinginput tax allowed to be deducted	6%, 9%, 13%
Urban maintenance and construction tax	It is paid based on the value-added tax actually paid	7%
Corporate income tax	Based on the amount of income taxable	25%, 22%, 20%,16.5%, 15%
Education Surcharge	It is paid based on the value-added tax actually paid	3%
Local education Surcharge	It is paid based on the value-added tax actually paid	2%

In case there exist taxpayers subject to different corporate income tax rates, disclose the information.

√Applicable □Not applicable

Taxpayers	Income tax rate (%)
Aima TechnologyGroupCo., Ltd.	25
Tianjin Aima LianxiangTechnologyCo., Ltd.	25
Tianjin Aima Shengsituo TechnologyCo., Ltd.	25
Aima Electric Drive Systems Co., Ltd.	25
Aima Growth Venture Capital(Ningbo)Co., Ltd.	25
ZhejiangAiska TechnologyCo., Ltd.	25
ZhejiangAima Vehicle TechnologyCo., Ltd.	25

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Jiangsu Aima Vehicle TechnologyCo., Ltd.	25
Aima Technology (Taizhou)Co., Ltd.	25
Aima Technology (Zhejiang)Co., Ltd.	25
Taizhou Aima Vehicle Manufacture Co., Ltd.	25
Lishui Aima Vehicle TechnologyCo., Ltd.	25
Tianjin Aima Sports Goods Co., Ltd.	25
Tianjin Aima Electromechanical TechnologyCo., Ltd.	25
YangjiangXiaoma Intelligent TechnologyCo., Ltd.	20
Tianjin Suiwanwan Culture Communication Co., Ltd.	20
Xiaopa Electric Technology （Shanghai）Co., Ltd.	20
Tianjin Tianli Electric Bicycle Co., Ltd.	20
ChongqingXiaoma Network TechnologyCo., Ltd.	20
Tianjin Xiaoma Intelligent TechnologyCo., Ltd.	20
WanningXiaoma Intelligent TechnologyCo., Ltd.	20
Guangxi Xiaoma Intelligent TechnologyCo., Ltd.	20
ChongqingXiaoma Intelligent TechnologyCo., Ltd.	20
Aima TECHNOLOGY SINGAPORE PTE.LTD.,	17
Geling New Energy Technology (Shandong) Co., Ltd.	15
Tianjin Aima Vehicle TechnologyCo., Ltd.	15
GuangdongAima Vehicle TechnologyCo., Ltd.	15
Guangxi Aima Vehicle Co., Ltd.	15
Henan Aima Vehicle Co., Ltd.	15
Tianjin Aima Shared TechnologyServices Co., Ltd.	15
Aima Technology (Chongqing)Co., Ltd.	15
ChongqingAima Vehicle TechnologyCo., Ltd.	15
ChongqingAima Vehicle Service TechnologyCo., Ltd.	15
ChongqingAima Electromechanical TechnologyCo., Ltd.	15
Super Universe(Chongqing)Vehicle IndustryTechnologyCo., Ltd.	15
ChongqingAima Zhilian Logistics Co., Ltd.	15
SuotengTechnologyHong KongCo., Ltd.	16.5
POWELLDD TECHNOLOGY COMPANY LIMITED	20
PT Aima ELECTRIC VEHICLES INDONESIA	22

2. Tax Preferences

√Applicable □Not applicable

In 2023, Tianjin Suiwanwan Cultural Communication Co., Ltd., Xiaopa Electric Technology (Shanghai) Co., Ltd., Chongqing Xiaoma Intelligent Technology Co., Ltd., Tianjin Tianli Electric Bicycle Co., Ltd., Chongqing Xiaoma Network Technology Co., Ltd., Wanning Xiaoma Intelligent Technology Co., Ltd., Yangjiang Xiaoma Intelligent Technology Co., Ltd, Guangxi Xiaoma Intelligent Technology Co., Ltd. and Tianjin Xiaoma Intelligent Technology Co., Ltd. enjoyed preferential taxes for small low-profit enterprises. In

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accordance with the Enterprise Income Tax Law of the People’s Republic of China and the regulations for the implementation, and the Ministry of Finance and the State Administration of Taxation on further Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises (CAISHUI [2022] No. 13), from January 1, 2022 to December 31, 2024, the annual taxable income of a small low-profit enterprise that is not less than RMB 1 million nor more than RMB 3 million shall be included in its taxable income at the reduced rate of 25%, with the applicable enterprise income tax rate of 20%; In accordance with the Announcement of the State Administration of Taxation on the Implementation of Preferential Income Tax Policies of Small and Low-profit Enterprises and Individual Industrial and Commercial Households (State Administration of Taxation Announcement No. 6 [2023]) and the annual taxable income that is not more than RMB 1 million ,from January 1, 2023 to December 31, 2024, shall be included in its taxable income at the reduced rate of 25%, with the applicable enterprise income tax rate of 20%.

Aima Technology (Chongqing) Co., Ltd., Chongqing Aima Vehicle Technology Co., Ltd., Chongqing Aima Vehicle Service Technology Co., Ltd., Chongqing Aima Electromechanical Technology Co., Ltd., Super Universe (Chongqing) Vehicle Industry Technology Co., Ltd. and Chongqing Aima Zhilian Logistics Co., Ltd. belong to the encouraged industrial companies of the Western Development, and can enjoy the tax preference of 15% corporate income tax from 2021 to 2030. Tianjin Aima Vehicle Technology Co., Ltd., Guangdong Aima Vehicle Technology Co., Ltd. and Guangxi Aima Vehicle Co., Ltd. were qualified for hi-tech enterprise in 2021, and may enjoy the tax preference of 15% corporate income tax from 2021 to 2023.

Henan Aima Vehicle Co., Ltd., Tianjin Aima Shared Technology Services Co., Ltd. and Geling New Energy Technology (Shandong) Co., Ltd. were qualified for high-tech enterprise in 2022, and may enjoy the tax preference of 15% corporate income tax from 2022 to 2024.

3. Others

□Applicable √Not applicable

VII. Notes to items of consolidated financial statements

1. Currency funds

√Applicable □Not applicable

1. Currency funds √Applicable □Not applicable	1. Currency funds √Applicable □Not applicable	1. Currency funds √Applicable □Not applicable
Unit: Yuan (RMB)
Items	Endingbalance	Openingbalance
Cash
Cash at banks	6,612,189,387.29	6,030,234,206.13
Others	55,069,563.89	603,220,864.16
Deposits of finance companies
Total	6,667,258,951.18	6,633,455,070.29
Where: Total amount deposited abroad	57,463,879.61	73.46

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Other notes:

None

2. Financial assets held for trading

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Items	Ending balance	Opening balance	Reason and basis for designation
Financial assets at fair value through profit or loss	176,041,430.92	142,668,675.59	/
Where:
Equityinvestments	55,840,000.00	73,480,000.00	/
Financialproducts	120,201,430.92	69,188,675.59	/
Total	176,041,430.92	142,668,675.59	/

Other notes:

□Applicable √Not applicable

3. Derivative financial assets

□Applicable √Not applicable

4. Notes receivable

(1) Classification of notes receivable

□Applicable √Not applicable

(2) Notes receivable already pledged by the Company at the end of the reporting period

□Applicable √Not applicable

(3) Endorsed or discounted notes receivable at the end of the reporting period, but not yet due on the balance sheet date

□Applicable √Not applicable

(4) Classified disclosure based on the method of provision for bad debt

□Applicable √Not applicable

Individual provision for bad debts:

□Applicable √Not applicable

Provision for bad and doubtful debts based on portfolio:

□Applicable √Not applicable

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2023 Annual Report

If the provision for bad debt is accrued in accordance with the general model of expected credit loss

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

N/A

Description of significant changes in the book balance of notes receivable with changes

in loss provision in the current period:

□Applicable √Not applicable

(5) Provision for bad debts

□Applicable √Not applicable

Among them, the amount of bad debt provision recovered or reversed in the current period is significant:

□Applicable √Not applicable

Other notes:

None

(6) Notes receivable actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of notes receivable:

□Applicable √Not applicable

Notes receivable write-off description:

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

5. Accounts receivable

(1) Disclosed based on aging

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Aging	Endingbook balance	Openingbook balance
Within 1year
Where: Itemized within 1year
Within 1year	348,516,988.63	291,745,445.04
Sub-total within 1year	348,516,988.63	291,745,445.04

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1 to 2years	30,609,641.25	5,622,082.11
2 to 3years	1,144,007.85	138,725.00
Over 3years	108,695.20
Total	380,379,332.93	297,506,252.15

(2) Classified disclosure based on the method of provision for bad debt

√Applicable □Not applicable

						Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Categories	Endingbalance					Openingbalance
	Book balance		Bad debt reserve		Book value	Book balance		Bad debt reserve		Book value
	Amount	Proportion (%)	Amount	Provision proportion (%)		Amount	Proportion (%)	Amount	Provision proportio n(%)
Assessed bad debt provision individually	41,832,2 76.77	11.00	15,181,7 51.34	36.29	26, 650,52 5.43	3,176,31 7.65	1.07	3,176,31 7.65	100.0 0
Where:
Individually significant amount and separate provision for bad debts	41,832,2 76.77	11.00	15,181,7 51.34	36.29	26, 650,52 5.43	3,176,31 7.65	1.07	3,176,31 7.65	100.0 0
Assessed bad debt provision in portfolio	338,547, 056.16	89.00	7,357,41 6.40	2.17	331,18 9,639. 76	294,329, 934.50	98.93	3,964,38 7.39	1.352	90,365,5 47.11
Where:
Portfolios based on credit risk characteristics	338,547, 056.16	89.00	7,357,41 6.40	2.17	331,18 9,639. 76	294,329, 934.50	98.93	3,964,38 7.39	1.352	90,365,5 47.11
Total	380,379, 332.93	100.00	22,539,1 67.74	5.93	357,84 0,165. 19	297,506, 252.15	100.00	7,140,70 5.04	2.402	90,365,5 47.11

Individual provision for bad debts:

√Applicable □Not applicable

Unit: Yuan (RMB)

Name Company 1 Company2	Endingbalance	Endingbalance	Endingbalance	Endingbalance
	Book balance	Bad debt provision	Provision proportion(%)	Provision reason
	38,089,592.68	11,439,067.25	30.03	Estimated collection risk
	3,176,317.65	3,176,317.65	100.00	Estimated

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Company 3 Total				collection risk
	566,366.44	566,366.44	100.00	Estimated collection risk
	41,832,276.77	15,181,751.34	36.29	/

Notes for Individual provision for bad debts:

□Applicable √Not applicable

Provision for bad and doubtful debts based on portfolio:

√Applicable □Not applicable

Provision items on portfolio: Combination of credit risk characteristics

Unit: Yuan (RMB)

	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Name	Endingbalance
	Accounts receivable	Bad debt provision	Provision proportion (%)
Within 1year	326,218,878.17	4,702,709.38	1.44
1 to 2years	11,075,474.94	1,983,617.56	17.91
2 to 3years	1,144,007.85	562,394.26	49.16
Over 3years	108,695.20	108,695.20	100.00
Total	338,547,056.16	7,357,416.40	2.17

Note to recognition of provision for bad debts based on portfolio:

□Applicable √Not applicable

If the provision for bad debt is accrued in accordance with the general model of expected credit loss

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

N/A

Description of significant changes in the book balance of accounts receivable with changes in loss provision in the current period:

□Applicable √Not applicable

(3) Provision for bad debts

√Applicable □Not applicable

		Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Categories	Opening balance	Amount of movement duringthe reporting period				Ending balance
		Provision	Recovery or reversal	Charge-off or write-off	Other chang es

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Assessed bad debt provision inportfolio	7,140,705.04	16,882,991.38	-1,426,419.08	-58,109.60		22,539,167.74
Total	7,140,705.04	16,882,991.38	-1,426,419.08	-58,109.60		22,539,167.74

Where the significant amount of the reserve for bad debt recovered or reversed:

□Applicable √Not applicable

Other notes:

None

(4) Accounts receivable actually written off in the reporting period

√Applicable □Not applicable

Unit: Yuan (RMB)

Items	Written off amount
Accounts receivable actuallywritten off	58,109.60

Significant written off of accounts receivable

□Applicable √Not applicable

Description of written off of accounts receivable:

√Applicable □Not applicable

It is confirmed that the accounts receivable for which bad debt provision has been made cannot be recovered.

(5) Accounts receivable and contract assets owed by the top five debtors based on the ending balance

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan (RMB)
Organization name	Ending balance of accounts receivable	Ending balance of contract assets	Ending balance of accounts receivable and contract assets	Proportion in total ending balance of accounts receivable (%)	Ending balance of the provision for bad debts
Company1	38,089,592.68		38,089,592.68	10.01	11,439,067.25
Company2	15,383,284.10		15,383,284.10	4.04	221,519.30
Company3	11,275,942.82		11,275,942.82	2.96	162,373.58
Company4	10,710,300.18		10,710,300.18	2.82	154,228.32
Company5	9,768,930.86		9,768,930.86	2.57	140,672.60

197

	2023 Annual Report	2023 Annual Report	2023 Annual Report	2023 Annual Report	2023 Annual Report	2023 Annual Report
Total		85,228,050.64		85,228,050.64	22.40	12,117,861.05

Other notes:

None

Other notes:

□Applicable √Not applicable

6. Contract assets

(1) Contract assets

□Applicable √Not applicable

(2) Amount and reasons for significant changes in book value during the reporting period

□Applicable √Not applicable

(3) Classified disclosure by bad debt provision method

□Applicable √Not applicable

Individual provision for bad debts:

□Applicable √Not applicable

Description of individual provision for bad debts:

□Applicable √Not applicable

Provision for bad and doubtful debts based on portfolio:

□Applicable √Not applicable

If the provision for bad debt is accrued in accordance with the general model of expected

credit loss

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

None

Description of significant changes in the book balance of contract assets with changes in loss provision in the current period:

□Applicable √Not applicable

(4) Provision for bad debts

□Applicable √Not applicable

Among them, the amount of bad debt provision recovered or reversed in the current period

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2023 Annual Report

is significant:

□Applicable √Not applicable

Other notes:

None

(5) Contract assets actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of contract assets:

□Applicable √Not applicable

Contract assets write-off description:

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

7. Receivables financing

(1) Classification of financing receivables

√Applicable □Not applicable

Unit: Yuan (RMB)

Items	Endingbalance	Openingbalance
Bank acceptance notes	8,893,241.61	8,332,754.00
Total	8,893,241.61	8,332,754.00

(2) Financing of pledged receivables of the Company at the end of the period

□Applicable √Not applicable

(3) Financing of receivables endorsed or discounted by the Company at the end of the period and not yet due at the balance sheet date

□Applicable √Not applicable

(4) Classified disclosure by bad debt provision method

□Applicable √Not applicable

Individual provision for bad debts:

□Applicable √Not applicable

Description of individual provision for bad debts:

□Applicable √Not applicable

Provision for bad and doubtful debts based on portfolio:

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2023 Annual Report

□Applicable √Not applicable

If the provision for bad debt is accrued in accordance with the general model of expected credit loss

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

N/A

Description of significant changes in the book balance of receivables financing with changes in loss provision in the current period:

□Applicable √Not applicable

(5) Provision for bad debts

□Applicable √Not applicable

Among them, the amount of bad debt provision recovered or reversed in the current period is significant:

□Applicable √Not applicable

Other notes:

None

(6) Receivables financing actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of receivables financing:

□Applicable √Not applicable

Receivables financing write-off description:

□Applicable √Not applicable

(7) Change of increase/decrease and fair value of accounts receivable financing in the reporting period:

□Applicable √Not applicable

(8) Other notes:

□Applicable √Not applicable

8. Prepayments

(1) Prepayments are presented based on aging

√Applicable □Not applicable

Unit: Yuan (RMB)

200

2023 Annual Report

Aging	Endingbalance	Endingbalance	Openingbalance	Openingbalance
	Amount	Proportion (%)	Amount	Proportion (%)
Within 1year	36,269,084.25	99.02	16,958,698.72	96.61
1 to 2years	99,506.38	0.27	342,330.47	1.95
2 to 3years	83,138.38	0.23	185,675.17	1.06
Over 3years	176,154.95	0.48	67,870.01	0.38
Total	36,627,883.96	100.00	17,554,574.37	100.00

Description of the reasons for the untimely settlement of prepayments with an age of more than 1 year and significant amounts:

At 31 December 2023, there were no significant prepayments with an age of more than 1 year.

(2) Prepayments to the top five debtors of the ending balance collected based on the debtors of the prepayments

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Organization name	Ending balance	Proportion in total ending balance ofprepayments(%)
Supplier 1	6,000,000.00	16.38
Supplier 2	5,000,000.00	13.65
Supplier 3	2,508,800.00	6.85
Supplier 4	2,400,000.00	6.55
Supplier 5	1,623,450.00	4.43
Total	17,532,250.00	47.86

Other notes:

None

Other notes:

□Applicable √Not applicable

9. Other receivables

Items Presentation

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Interest receivables	1,212,339.44	1,160,941.82
Other receivables	14,475,566.83	26,890,978.44
Total	15,687,906.27	28,051,920.26

Other notes:

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2023 Annual Report

□Applicable √Not applicable

Interest receivables

(1) Classification of interest receivable

√Applicable □Not applicable

√Applicable □Not applicable
Items	Endingbalance	Openingbalance
Interest of accounts receivable	1,212,339.44	1,160,941.82
Total	1,212,339.44	1,160,941.82

(2) Significant overdue interest

□Applicable √Not applicable

(3) Classified disclosure by bad debt provision method

□Applicable √Not applicable

Individual provision for bad debts:

□Applicable √Not applicable

Description of individual provision for bad debts:

□Applicable √Not applicable

Provision for bad and doubtful debts based on portfolio:

□Applicable √Not applicable

(4) If the provision for bad debt is accrued in accordance with the general model of expected credit loss

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

None

Description of significant changes in the book balance of interest receivables

with changes in loss provision in the current period:

□Applicable √Not applicable

(5) Provision for bad debts

□Applicable √Not applicable

Among them, the amount of bad debt provision recovered or reversed in the current period is significant:

□Applicable √Not applicable

Other notes:

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2023 Annual Report

None

(6) Interest receivables actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of interest receivables:

□Applicable √Not applicable

Interest receivables write-off description:

□Applicable √Not applicable

Other notes：

□Applicable √Not applicable

Dividend receivable

(1) Dividend receivable

□Applicable √Not applicable

(2) Significant dividends receivable with age exceeding 1 year

□Applicable √Not applicable

(3) Classified disclosure by bad debt provision method

□Applicable √Not applicable

Individual provision for bad debts:

□Applicable √Not applicable

Description of individual provision for bad debts:

□Applicable √Not applicable

Provision for bad and doubtful debts based on portfolio:

□Applicable √Not applicable

(4) If the provision for bad debt is accrued in accordance with the general model of expected credit loss

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

None

Description of significant changes in the book balance of dividend receivable with changes in loss provision in the current period:

□Applicable √Not applicable

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2023 Annual Report

(5) Provision for bad debts

□Applicable √Not applicable

Among them, the amount of bad debt provision recovered or reversed in the current period is significant:

□Applicable √Not applicable

Other notes:

None

(6) Dividend receivable actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of dividend receivable:

□Applicable √Not applicable

Dividend receivable write-off description:

□Applicable √Not applicable

Other notes：

□Applicable √Not applicable

Other receivables

(1) Disclosed based on aging

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Aging	Endingbook balance	Openingbook balance
Within 1year
Where: Itemized within 1year
Within 1year	12,908,132.59	25,350,872.34
Sub-total within 1year	12,908,132.59	25,350,872.34
1 to 2years	383,809.71	205,256.89
2 to 3years	127,350.00	82,649.15
Over 3years	1,085,474.53	1,265,939.69
Total	14,504,766.83	26,904,718.07

(2) Classification based on the nature of fund

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Nature of the fund	Endingbook balance	Openingbook balance
Threeguarantees	5,577,033.25	11,527,981.67
Receivable from disposal of		4,928,340.21

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2023 Annual Report

fixed assets
Deposits	4,670,405.87	1,766,722.22
Advance to employees	164,078.56	242,296.80
Others	4,093,249.15	8,439,377.17
Total	14,504,766.83	26,904,718.07

(3) Provision for bad debts

√Applicable □Not applicable

Unit: Yuan (RMB)

Bad debt provision	Stage 1	Stage 2	Stage 3	Total
	12-month expected credit losses	Lifetime ECLs (no credit impairment incurred)	Lifetime ECLs (credit impairment already incurred)
Balance as at January 1, 2023	10,300.00	3,439.63		13,739.63
Balance as at January 1, 2023 in the reporting period
-- transferred into Stage 2
-- transferred into Stage 3
-- revered to Stage 2
-- reversed to Stage 1
Accrual	18,900.00			18,900.00
Reversal		3,439.63		3,439.63
Transfer out
Write-off
Other changes
Balance as at December 31, 2023	29,200.00			29,200.00

Classification basis of each stage and provision ratio for bad debts

None

Note to the significant changes in the book balance of other receivables with changes in provision for loss in the reporting period:

□Applicable √Not applicable

The amount of provision for bad debts in the reporting period and the basis for assessing whether the credit risk of financial instruments has increased significantly.

□Applicable √Not applicable

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2023 Annual Report

(4) Provision for bad debts

√Applicable □Not applicable

Unit: Yuan (RMB)

Categories	Opening balance	Amount of movement duringthe reporting period	Amount of movement duringthe reporting period	Amount of movement duringthe reporting period	Amount of movement duringthe reporting period	Ending balance
		Provision	Recovery or reversal	Charge-off or write-off	Other changes
Bad debt provision	13,739.63	18,900.00	3,439.63			29,200.00
Total	13,739.63	18,900.00	3,439.63			29,200.00

Where a significant amount of the reserve for bad debt recovered or reversed during the reporting period:

□Applicable √Not applicable

Other notes:

None

(5) Other receivables actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of other receivables:

□Applicable √Not applicable

Other receivables write-off description:

□Applicable √Not applicable

(6) Other receivables owed by the top five debtors based on the ending balance

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Organization name	Ending balance	Proportion in total ending balance of other receivables	Nature of Payment	Aging	Bad debt reserve Ending balance
Company1	2,102,806.68	14.50	Rent	Within 1year
Company2	1,143,704.91	7.89	Deposits	Within 1year
Company3	500,000.00	3.45	Deposits	Over 3years
Company4	500,000.00	3.45	Deposits	Within 1year
Company5	450,000.00	3.10	Deposits	Over 3years
Total	4,696,511.59	32.39	/	/

(7) Presentation in other receivables due to centralized management of funds

□Applicable √Not applicable

206

2023 Annual Report

Other notes:

□Applicable √Not applicable

10. Inventories

(1) Classification of inventories

√Applicable □Not applicable

Unit: Yuan (RMB)

				Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Endingbalance			Openingbalance
	Book balance	Provision for write-down of inventories / impairment of costs to fulfil a contract	Book value	Book balance	Provision for write-down of inventories / impairment of costs to fulfil a contract	Book value
Raw materials	199,024,55 3.43	3,823,176.99	195,201,37 6.44	343,462, 948.77	63,577.07	343,399,3 71.70
Finished goods	380,138,90 4.84		380,138,90 4.84	467,111, 915.62		467,111,9 15.62
Total	579,163,45 8.27	3,823,176.99	575,340,28 1.28	810,574, 864.39	63,577.07	810,511,2 87.32

(2) Provision for write-down of inventories / impairment of costs to fulfil a contract

√Applicable □Not applicable

		Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Opening balance	Amount increased in the reporting period		Decrease in the reporting period		Ending balance
		Provision	Others	Reversal or write-off	Others
Raw materials	63,577.07	3,823,176.99		63,577.07		3,823,176.9 9
Total	63,577.07	3,823,176.99		63,577.07		3,823,176.9 9

Reasons for reversal or write-off of provision for write-down of inventories in the current period

√Applicable □Not applicable

As at December 31, 2023, the net realizable value of some inventories was lower than the book value, and the provision for write-down of inventories was RMB 3,823,176.99 yuan this year.

In 2023, the Group transferred provision for decline in value of inventories due to sales of

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2023 Annual Report

RMB 63,577.07 yuan.

Provision for write-down of inventories by portfolio

□Applicable √Not applicable

Accrual criteria for provision for write-down of inventories by portfolio

□Applicable √Not applicable

(3) Calculation standard and basis to the amount of capitalized borrowing costs involved in the ending balance of inventories

□Applicable √Not applicable

(4) Note to the current amortization amount of contract performance costs

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

11. Held-for-sale assets

□Applicable √Not applicable

12. Non-current assets due within a year

√Applicable □Not applicable

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Non-current assets due within oneyear	1,628,460,684.93	3,524,708,328.77
Total	1,628,460,684.93	3,524,708,328.77

Debt investment due within one year

□Applicable √Not applicable

Other debt investments due within one year

□Applicable √Not applicable

Other notes to non-current assets due within one year

As at December 31, 2023, the Company issued bank acceptance bills pledged with RMB 1,500,000,000.00 yuan of three-year time certificates of deposit due within 1 year (December 31, 2022: RMB 3,200,000,000.00 yuan), for details, please refer to Section 10 VII, 31 Assets restricted in ownership or right of use.

13. Other current assets

√Applicable □Not applicable

Unit: Yuan (RMB)

208

2023 Annual Report

Items	Endingbalance	Openingbalance
Input VAT to be credited	99,451,703.53	61,570,447.87
CITpaid in advance	20,436,517.16	15,453,043.29
Total	119,888,220.69	77,023,491.16

Other notes:

None

14. Debt investment

(1) About debt investment

□Applicable √Not applicable

Changes in provision for impairment of debt investments in the current period

□Applicable √Not applicable

(2) Significant debt investment at the end of the reporting period

□Applicable √Not applicable

(3) Provision for impairment

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

None

Description of significant changes in the book balance of debt investment

with changes in loss provision in the current period:

□Applicable √Not applicable

The amount of provision for impairment in the reporting period and the basis for assessing whether the credit risk of financial instruments has increased significantly.

□Applicable √Not applicable

(4) Debt investment actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of debt investment:

□Applicable √Not applicable

Debt investment write-off description:

□Applicable √Not applicable

Other notes：

□Applicable √Not applicable

209

2023 Annual Report

15. Other debt investment

(1) About other debt investment

□Applicable √Not applicable

Changes in provision for impairment of other debt investments in the current period

□Applicable √Not applicable

(2) Significant other debt investment at the end of the reporting period

□Applicable √Not applicable

(3) Provision for impairment

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

None

Description of significant changes in the book balance of other debt investment

with changes in loss provision in the current period:

□Applicable √Not applicable

The amount of provision for impairment in the reporting period and the basis for assessing whether the credit risk of financial instruments has increased significantly.

□Applicable √Not applicable

(4) Other debt investment actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of other debt investment:

□Applicable √Not applicable

Other debt investment write-off description:

□Applicable √Not applicable

Other notes：

□Applicable √Not applicable

16. Long-term receivables

(1) About long-term receivables

□Applicable √Not applicable

(2) Classified disclosure by bad debt provision method

□Applicable √Not applicable

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2023 Annual Report

Individual provision for bad debts:

□Applicable √Not applicable

Description of individual provision for bad debts:

□Applicable √Not applicable

Provision for bad and doubtful debts based on portfolio:

□Applicable √Not applicable

(3) If the provision for bad debt is accrued in accordance with the general model of expected credit loss

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

None

Description of significant changes in the book balance of long-term receivables with

changes in loss provision in the current period:

□Applicable √Not applicable

The amount of provision for bad debts in the reporting period and the basis for assessing whether the credit risk of financial instruments has increased significantly.

□Applicable √Not applicable

(4) Provision for bad debts

□Applicable √Not applicable

Among them, the amount of bad debt provision recovered or reversed in the current period is significant:

□Applicable √Not applicable

Other notes:

None

(5) Long-term receivables actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of long-term receivables:

□Applicable √Not applicable

Long-term receivables write-off description:

□Applicable √Not applicable

Other notes：

211

2023 Annual Report

□Applicable √Not applicable

17. Long-term equity investments

(1) About long-term equity investments

√Applicable □Not applicable

		Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Investees	Opening balance	Increase/ Decrease(+ / -)in the reporting period								Ending balance	Impairment at the end of the year
		Increase	Decr ease	Investment income under the equity method	Other compre hensive income	Other equity moveme nt	Cash dividend declared	Provisio n for impairm ent	Other s
I. Joint Venture
Sub-total
II. Associates
Today Sunshine	9,903,82 2.89			-1,525,302.81						8,378,520. 08
Tianjin Jiema	13,610,8 64.77			11,725,908.91			-3,200,00 0.00			22,136,77 3.68
Geling New Energy	39,329,4 02.77	9,554,78 2.42		-946,082.92		-47,938, 102.27
Taizhou Jinfu	38,817,2 95.52			-38,817,295.52
Beijing Zhongzhong	26,490,6 84.45			172,756.83						26,663,44 1.28
Chongqing Xintai		17,500,0 00.00		-1,056,733.76						16,443,26 6.24
Guangxi Ningfu		51,785,7 00.00		1,856,294.63						53,641,99 4.63
Sub-total	128,152, 070.40	78,840,4 82.42		-28,590,454.64		-47,938, 102.27	-3,200,00 0.00			127,263,9 95.91
Total	128,152, 070.40	78,840,4 82.42		-28,590,454.64		-47,938, 102.27	-3,200,00 0.00			127,263,9 95.91

(2) Impairment test of long-term equity investments

□Applicable √Not applicable

Other notes:

None

18. Other equity instrument investment

(1) About other equity instrument investment

□Applicable √Not applicable

212

2023 Annual Report

(2) Description of derecognition in the current period

□Applicable √Not applicable

Other notes:

√Applicable □Not applicable

1 During the reporting period, the Company subscribed part of the equity of Guangxi Ningfu by means of capital increase. Since the shareholding ratio is not more than 5%, which has no significant impact on Guangxi Ningfu, the Company accounted for the initial investment as a financial asset measured at fair value through other comprehensive income. According to the resolution of the shareholders' meeting of Guangxi Ningfu on June 30, 2023, it was agreed to add Zhang Jian, chairman of the Company, as a director of Guangxi Ningfu. The Company has a significant impact on Guangxi Ningfu. During the reporting period, it was adjusted to a long-term equity investment calculated by the equity method and no longer measured at fair value. By the end of the reporting period, the Company had invested 51.7857 million yuan and held 1.97% of the equity of Guangxi Ningfu.

② In February 2023, Spozman and Yunnan Xiaoji Intelligent Transportation Technology

Co., Ltd. jointly established Kunming Michi Transportation Technology Co., Ltd. with a registered capital of 1 million yuan, and Spozman subscribed a capital contribution of 100,000 yuan, with a shareholding ratio of 10%. As of the end of the reporting period, Spozman has not yet completed the paid-in.

19. Other non-current financial assets

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

20. Investment properties

Measurement model for investment-oriented real estate

(1) Investment properties measured based on the cost method

(1) Investment properties measured based on the cost method	(1) Investment properties measured based on the cost method	(1) Investment properties measured based on the cost method	(1) Investment properties measured based on the cost method
Unit: Yuan(RMB)
Items	Buildings	Land use rights	Total
I. Original book value
1. Opening balance	246,150,748.72	79,042,302.38	325,193,051.10
2. Amount increased in the reporting period	96,225,288.44	91,822,602.04	188,047,890.48
(1)Purchased
(2) Inventories\fixed assets/construction in process transferred in	96,225,288.44	91,822,602.04	188,047,890.48

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(3) Increase of enterprise consolidation
3. Amount decreased in the reporting period	69,462,483.75	34,499,601.56	103,962,085.31
(1)Disposals
(2)Other transfer out
(3) Transfer out to fixed assets or intangible assets	69,462,483.75	34,499,601.56	103,962,085.31
4. Endingbalance	272,913,553.41	136,365,302.86	409,278,856.27
II. Accumulative depreciation and accumulative amortization
1. Opening balance	61,931,218.63	8,881,098.83	70,812,317.46
2. Amount increased in the reporting period	63,589,224.10	23,658,246.96	87,247,471.06
(1) Depreciation and amortisation provided duringtheyear	19,020,727.05	1,833,180.49	20,853,907.54
(2) Transfer-in of the fixed asset or intangible assets	44,568,497.05	21,825,066.47	66,393,563.52
3. Amount decreased in the reporting period	26,722,401.31	5,760,381.35	32,482,782.66
(1)Disposal
(2)Other transfer out
(3) Transfer out to fixed assets or intangible assets	26,722,401.31	5,760,381.35	32,482,782.66
4. Endingbalance	98,798,041.42	26,778,964.44	125,577,005.86
III. Provision for impairment
1. Opening balance
2. Amount increased in the reporting period
(1)Provision
3. Amount decreased in the reporting period
(1)Disposal
(2)Other transfer out
4. Endingbalance
IV. Book value
1.Book value at the end of the reporting period	174,115,511.99	109,586,338.42	283,701,850.41
2.Book value at the beginning of the	184,219,530.09	70,161,203.55	254,380,733.64

214

2023 Annual Report

reporting period

(2) Investment property with no title certificate

□Applicable √Not applicable

(3) Impairment testing of investment properties measured at cost

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

21. Fixed asset

Items Presentation

√Applicable □Not applicable

Items Presentation √Applicable □Not applicable	Items Presentation √Applicable □Not applicable	Items Presentation √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Fixed asset	2,183,569,604.60	2,032,571,583.72
Disposal of fixed assets	102,682.10	52,325.85
Total	2,183,672,286.70	2,032,623,909.57

Other notes:

□Applicable √Not applicable

Fixed asset

(1) About fixed assets

√Applicable □Not applicable

(1) About fixed assets √Applicable □Not applicable	(1) About fixed assets √Applicable □Not applicable	(1) About fixed assets √Applicable □Not applicable	(1) About fixed assets √Applicable □Not applicable	(1) About fixed assets √Applicable □Not applicable	(1) About fixed assets √Applicable □Not applicable	(1) About fixed assets √Applicable □Not applicable	(1) About fixed assets √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Buildings	Machinery and equipment	Vehicles	Office equipment	Electronic equipment	Production tools	Total
I. Original book value:
1. Opening balance	1,952,145,8 03.53	582,934,59 2.33	39,380,437. 12	41,266,150.5 6	62,874,375. 33	349,186,774 .43	3,027,788,13 3.30
2. Amount increased in the reporting period	105,682,26 6.35	108,477,27 9.46	2,597,277.0 1	3,429,236.45	14,139,971. 03	308,513,805 .90	542,839,836. 20
(1) Purchase	10,238,028. 84	77,477,817. 62	1,867,912.9 3	3,116,524.08	8,870,246.3 6	53,253,192. 65	154,823,722. 48
(2) Transfers from construction in progress	23,319,329. 71	22,610,185. 32	413,120.56	233,869.50	4,748,367.9 1	234,663,033 .82	285,987,906. 82
(3) Increase of enterprise consolidation	2,662,424.0 5	8,389,276.5 2	316,243.52	78,842.87	521,356.76	20,597,579. 43	32,565,723.1 5
(4) Transfers from	69,462,483.						69,462,483.7

215

2023 Annual Report

investmentproperties	75						5
3. Amount decreased in the reporting period	96,538,215. 15	21,328,863. 96	2,561,371.9 6	3,068,104.09	2,047,210.6 6	32,440,648. 60	157,984,414. 42
(1) Disposals or retirements	312,926.71	21,328,863. 96	2,561,371.9 6	3,068,104.09	2,047,210.6 6	32,440,648. 60	61,759,125.9 8
(2) Transferred into investmentproperties	96,225,288. 44						96,225,288.4 4
4. Ending balance	1,961,289,8 54.73	670,083,00 7.83	39,416,342. 17	41,627,282.9 2	74,967,135. 70	625,259,931 .73	3,412,643,55 5.08
II. Accumulative depreciation
1. Opening balance	534,878,39 1.75	221,938,57 9.48	28,239,046. 66	23,386,440.6 6	34,988,490. 30	149,051,446 .09	992,482,394. 94
2. Amount increased in the reporting period	130,498,15 1.02	48,379,505. 42	4,422,767.1 2	6,288,301.07	13,389,626. 16	117,376,046 .88	320,354,397. 67
(1) Depreciation provided duringtheyear	103,775,74 9.71	48,379,505. 42	4,422,767.1 2	6,288,301.07	13,389,626. 16	117,376,046 .88	293,631,996. 36
(2) Transfers from investmentproperties	26,722,401. 31						26,722,401.3 1
3. Amount decreased in the reporting period	44,642,526. 09	13,153,104. 21	2,392,946.1 5	2,501,494.57	1,540,050.2 6	19,763,975. 86	83,994,097.1 4
(1) Disposals or retirements	74,029.04	13,153,104. 21	2,392,946.1 5	2,501,494.57	1,540,050.2 6	19,763,975. 86	39,425,600.0 9
(2) Transferred into investmentproperties	44,568,497. 05						44,568,497.0 5
4. Ending balance	620,734,01 6.68	257,164,98 0.69	30,268,867. 63	27,173,247.1 6	46,838,066. 20	246,663,517 .11	1,228,842,69 5.47
III. Provision for impairment
1. Opening balance		1,951,274.6 9				782,879.95	2,734,154.64
2. Amount increased in the reporting period
(1)Provision
3. Amount decreased in the reporting period		1,720,019.6 8				782,879.95	2,502,899.63
(1) Disposals or retirements
(2) Write-off in current year		1,720,019.6 8				782,879.95	2,502,899.63
4. Endingbalance		231,255.01					231,255.01
IV. Book value
1.Book value at the end of the reporting period	1,340,555,8 38.05	412,686,77 2.13	9,147,474.5 4	14,454,035.7 6	28,129,069. 50	378,596,414 .62	2,183,569,60 4.60
2.Book value at the	1,417,267,4	359,044,73	11,141,390.	17,879,709.9	27,885,885.	199,352,448	2,032,571,58

216

2023 Annual Report

beginning of the reporting period	11.78	8.16	46	0	03	.39	3.72

(2) About temporarily idle fixed assets

□Applicable √Not applicable

(3) Fixed assets leased through operating lease

□Applicable √Not applicable

(4) About fixed assets without title certificate

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Book value	The reason why the title certificate has not beengranted
Buildings	4,924,739.86	For self-built auxiliary function houses, it is unnecessary to apply for title certificate.

(5) Impairment test of fixed assets

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Disposal of fixed assets

√Applicable □Not applicable

Unit: Yuan (RMB)

	Unit: Yuan(RMB)
Endingbalance	Openingbalance
102,682.10	52,325.85
102,682.10	52,325.85

Other notes:

None

22. Construction in progress

Items Presentation

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Engineeringsupplies	973,358,340.87	63,522,676.76
Construction inprogress	18,846,939.04	22,488,641.34

217

2023 Annual Report

Total 992,205,279.91 86,011,318.10

Other notes:

□Applicable √Not applicable

Construction in progress

(1) About construction in progress

√Applicable □Not applicable

Unit: Yuan (RMB)

				Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Endingbalance			Openingbalance
	Book balance	Impairm ent reserve	Book value	Book balance	Impairm ent reserve	Book value
Guangxi Vehicle’s factorybuilding	244,200,67 4.07		244,200,674. 07
Chongqing Vehicle’s factorybuilding	233,605,35 7.47		233,605,357. 47	1,372,641. 51		1,372,641. 51
Taizhou Manufacture’s factorybuilding	233,23 8,245.36		233,238, 245.36	17,71 6,240.10		17,71 6,240.10
Lishui Vehicle’s factorybuilding	197,57 4,713.52		197,574, 713.52	1,660 ,261.97		1,660 ,261.97
Jiangsu Vehicle’s moulds	19,362, 920.50		19,362,9 20.50	3,272 ,592.74		3,272 ,592.74
Tianjin Vehicle’s moulds	15,302, 825.35		15,302,8 25.35	8,403 ,362.82		8,403 ,362.82
Zhejiang Vehicle’s factorybuilding	8,479,2 26.14		8,479,22 6.14	8,269 ,289.96		8,269 ,289.96
Aima Group’s Software	3,875,3 30.19		3,875,33 0.19	10,74 9,759.11		10,74 9,759.11
Others	17,719, 048.27		17,719,0 48.27	12,07 8,528.55		12,07 8,528.55
Total	973,35 8,340.87		973,358, 340.87	63,52 2,676.76		63,52 2,676.76

(2) Movements of important construction in progress projects in the reporting period

√Applicable □Not applicable

(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable	(2) Movements of important construction in progress projects in the reporting period √Applicable □Not applicable
Unit: Yuan(RMB)
Project name	Budget	Opening balance	Addition	Transfe rred to	Other decrea	Ending balance	The proportion of	Project Progre	Accumu lated	Where: Capitalize	Interest capitaliza	Source of funds

218

2023 Annual Report

				the fixed assets	ses		projects investment accounted for budget (%)	ss	amount of interest capitaliz ation	d amount of interest in the current period	tion rate of the current period (%)
Guangxi Vehicle’s factory building	575,140, 000.00		244,200,6 74.07			244,200,6 74.07	42.00					Own funds
Taizhou Manufact ure’s factory building	487,770, 000.00	17,716,2 40.10	215,522,0 05.26			233,238,2 45.36	48.00					Own funds
Chongqi ng Vehicle’s factory building	1,435,15 0,000.00	1,372,64 1.51	234,638,7 91.92	-2,406, 075.96		233,605,3 57.47	16.00					Own funds
Lishui Vehicle’s factory building	977,320, 000.00	1,660,26 1.97	195,914,4 51.55			197,574,7 13.52	20.00		39,741, 699.34	39,741,69 9.34	3.19	Funds raised
Total	3,475,38 0,000.00	20,749,1 43.58	890,275,9 22.80	-2,406, 075.96		908,618,9 90.42	/		39,741, 699.34	39,741,69 9.34	/	/

(3) Provision for impairment of construction in progress in the reporting period

□Applicable √Not applicable

(4) Impairment test of construction in progress

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

Engineering supplies

(1) About engineering supplies

√Applicable □Not applicable

	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Endingbalance			Openingbalance
	Book balance	Provision for impairment	Book value	Book balance	Provision for impairment	Book value

219

2023 Annual Report

Engineering supplies	18,846,939.04		18,846,939.04	22,488,641.34		22,488,641.34
Total	18,846,939.04		18,846,939.04	22,488,641.34		22,488,641.34

Other notes:

None

23. Productive biological asset

(1) Productive biological asset by using the cost measurement model

□Applicable √Not applicable

(2) Impairment testing of productive biological asset measured at cost

□Applicable √Not applicable

(3) Productive biological asset by using the fair value measurement model

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

24. Oil and Gas Assets

(1) About oil and gas assets

□Applicable √Not applicable

(2) Impairment test of oil and gas assets

□Applicable √Not applicable

Other notes:

None

25. Right-of-use assets

(1) About right-of -use assets

√Applicable □Not applicable

Unit: Yuan (RMB)

Items	Buildings	Total
I. Original book value:
1. Opening balance	57,089,208.18	57,089,208.18
2. Amount increased in the reporting period	302,179.38	302,179.38
Newlyleased	302,179.38	302,179.38
3. Amount decreased in the reporting period	519,368.35	519,368.35

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2023 Annual Report

Expiration of lease contract	519,368.35	519,368.35
4. Endingbalance	56,872,019.21	56,872,019.21
II. Accumulative depreciation
1. Opening balance	14,568,712.38	14,568,712.38
2. Amount increased in the reporting period	8,653,838.43	8,653,838.43
(1) Depreciation provided duringtheyear	8,653,838.43	8,653,838.43
3. Amount decreased in the reporting period	463,071.24	463,071.24
(1)Disposals	463,071.24	463,071.24
4. Endingbalance	22,759,479.57	22,759,479.57
III. Provision for impairment
1. Opening balance
2. Amount increased in the reporting period
(1)Provision
3. Amount decreased in the reporting period
(1)Disposal
4. Endingbalance
IV. Book value
1.Book value at the end of the reporting period	34,112,539.64	34,112,539.64
2.Book value at the beginning of the reporting period	42,520,495.80	42,520,495.80

(2) Impairment testing of right-of-use assets

□Applicable √Not applicable

Other notes:

None

26. Intangible assets

(1) About the intangible assets

√Applicable □Not applicable

Unit: Yuan (RMB)

Items	Land use rights	Patent right	Non patented technology	Software	Trademarks	Total
I. Original book value:
1. Opening balance	424,689,68 9.65			182,442, 805.98	2,136,049.25	609,268,544.88

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2023 Annual Report

2. Amount increased in the reporting period	327,811,13 5.70			46,505,1 35.92	680,141.42	374,996,413.04
(1) Purchase				5,646,86 9.13		5,646,869.13
(2) Internal R&D
(3) Increase due to business combinations				125,312. 69	680,141.42	805,454.11
(4) Transfers from construction-in-p rocess	293,311,53 4.14			40,732,9 54.10		334,044,488.24
(5) Transferred from investment properties in the reporting period	34,499,601. 56					34,499,601.56
3. Amount decreased in the reporting period	91,822,602. 04					91,822,602.04
(1) Disposal
(2) Transferred into investment properties in the reporting period	91,822,602. 04					91,822,602.04
4. Ending balance	660,678,22 3.31			228,947, 941.90	2,816,190.67	892,442,355.88
II. Accumulative amortization
1. Opening balance	64,030,459. 27			86,272,1 31.96	979,180.70	151,281,771.93
2. Amount increased in the reporting period	17,797,601. 04			28,416,9 56.69	845,243.51	47,059,801.24
(1) Amortisation provided during theyear	12,037,219. 69			28,416,9 56.69	845,243.51	41,299,419.89
(2) Transferred from investment properties in the currentyear	5,760,381.3 5					5,760,381.35
3.Amount decreased in the reporting period	21,825,066. 47					21,825,066.47

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2023 Annual Report

(1) Disposal
(2) Transferred into investment properties	21,825,066. 47					21,825,066.47
4. Ending balance	60,002,993. 84			114,689, 088.65	1,824,424.21	176,516,506.70
III. Provision for impairment
1. Opening balance
2. Amount increased in the reporting period
(1) Provision
3.Amount decreased in the reporting period
(1) Disposal
4. Ending balance
IV. Book value
1.Book value at the end of the reporting period	600,675,22 9.47			114,258, 853.25	991,766.46	715,925,849.18
2.Book value at the beginning of the reporting period	360,659,23 0.38			96,170,6 74.02	1,156,868.55	457,986,772.95

The proportion of intangible assets formed through internal R&D to the balance of intangible assets at the end of the period was nil.

(2) About the land use rights without title certificate

□Applicable √Not applicable

(3) Impairment test of intangible assets

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

27. Goodwill

(1) Original book value of the goodwill

□Applicable √Not applicable

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2023 Annual Report

(2) Provision for impairment of the goodwill

□Applicable √Not applicable

(3) Relevant information of the assets group or portfolio of the assets groups where the goodwill is located

□Applicable √Not applicable

Changes in asset groups or portfolio of assets groups

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

(4) Specific method for determining recoverable amount

The recoverable amount is determined at fair value less costs to sell

□Applicable √Not applicable

The recoverable amount is determined at the present value of the expected future cash flows

□Applicable √Not applicable

Reasons for the difference between the above information and the information used in the previous year's impairment test or external information

□Applicable √Not applicable

Reasons for the difference between the information used in the impairment test of the previous year and the actual situation of the current year

□Applicable √Not applicable

(5) Performance commitments and impairment of goodwill

There is a performance commitment when goodwill is formed and the reporting period or the previous period is within the performance commitment period

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

28. Long-term prepaid expenses

√Applicable □Not applicable

28. Long-term prepaid expenses √Applicable □Not applicable	28. Long-term prepaid expenses √Applicable □Not applicable	28. Long-term prepaid expenses √Applicable □Not applicable	28. Long-term prepaid expenses √Applicable □Not applicable	28. Long-term prepaid expenses √Applicable □Not applicable	28. Long-term prepaid expenses √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Opening balance	Amount increased in	Amount amortized in the reporting	Other decrease	Ending balance

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2023 Annual Report

		the reporting period	period
Refurbishment payment	10,936,811.20	2,640,432.34	6,157,920.90		7,419,322.64
Payment for the improvement of the rented fixed assets	4,667,310.54		2,884,471.80		1,782,838.74
Others	28,290,985.67	15,886,084.98	14,050,980.80		30,126,089.85
Total	43,895,107.41	18,526,517.32	23,093,373.50		39,328,251.23

Other notes:

None

29. Deferred tax assets/liabilities

(1) Deferred tax asset before being offset

√Applicable □Not applicable

Unit: Yuan (RMB)

			Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Endingbalance		Openingbalance(Restated)
	Deductible temporary differences	Deferred tax assets	Deductible temporary differences	Deferred tax Assets
Deductible loss	292,432,400.56	55,865,092.35	198,066,664.29	40,218,297.85
Deferred income	22,568,367.74	5,337,959.51	7,154,444.67	1,598,398.96
Bad debt provision	3,823,176.99	955,794.25	63,577.07	15,894.27
Provision of inventories	8,185,782.48	1,936,392.39	15,391,982.03	3,846,248.38
Depreciation book-tax difference of fixed assets	79,236,526.56	16,766,202.41	37,414,598.87	6,262,650.43
Provision for impairment of fixed assets	231,255.01	34,688.25	2,734,154.64	582,125.16
Investment losses of associates	90,000,000.00	22,500,000.00	51,544,467.53	12,804,720.20
Sales rebates and rewards	398,469,160.37	76,718,223.52	437,665,926.26	84,566,172.38
Lease liability	55,424,934.33	8,453,886.93	58,542,198.47	9,257,505.85
Share-based payment	118,169,892.14	27,300,173.41	80,660,907.94	19,156,587.56

225

	2023 Annual Report	2023 Annual Report	2023 Annual Report	2023 Annual Report	2023 Annual Report
Accrued expenses		11,735,395.43	2,462,967.14	11,182,837.33	3,983,843.20
Total		1,080,276,891.61	218,331,380.16	900,421,759.10	182,292,444.24

(2) Deferred tax liabilities before being offset

√Applicable □Not applicable

Unit: Yuan (RMB)

			Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Endingbalance		Openingbalance(Restated)
	Taxable temporary differences	Deferred tax Liabilities	Taxable temporary differences	Deferred tax Liabilities
Investment income of financialproducts	247,823,980.29	50,078,491.18	416,695,525.12	100,558,415.87
Depreciation of fixed assets	22,731,165.83	3,409,674.87	33,398,236.17	5,009,735.43
Deferred interest payments on occupancyfees	1,212,339.44	231,372.12	1,158,116.42	219,920.55
Profit or loss from associates	6,978,295.91	1,744,573.98
Right-of-use assets	34,112,539.64	5,284,685.06	42,444,180.63	6,860,563.71
Total	312,858,321.11	60,748,797.21	493,696,058.34	112,648,635.56

(3) Net amount of deferred tax assets/liabilities after being offset

√Applicable □Not applicable

(3) Net amount of deferred tax assets/liabilities after being offset √Applicable □Not applicable	(3) Net amount of deferred tax assets/liabilities after being offset √Applicable □Not applicable	(3) Net amount of deferred tax assets/liabilities after being offset √Applicable □Not applicable	(3) Net amount of deferred tax assets/liabilities after being offset √Applicable □Not applicable	(3) Net amount of deferred tax assets/liabilities after being offset √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Offset amount at the end of the reporting period	Net amount at the end of the reporting period	Offset amount at the beginning of the reporting period (Restated)	Net amount at the beginning of the reporting period
Deferred tax assets	50,392,539.41	167,938,840.75	98,269,180.59	84,023,263.65
Deferred tax liability	50,392,539.41	10,356,257.80	98,269,180.59	14,379,454.97

(4) Details of unrecognised deferred income tax assets

√Applicable □Not applicable

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Deductible temporary differences		48,539,293.97

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Deductible tax losses	46,743,189.14	20,898,005.44
Total	46,743,189.14	69,437,299.41

(5) Unrecognised deferred tax assets arising from deductible tax losses will expire in the following years

√Applicable □Not applicable

Unit: Yuan (RMB)

			Unit: Yuan(RMB)
Year	Amount at the end of the reporting period	Amount at the year beginning	Remarks
To expire in 2023		588,361.75
To expire in 2024
To expire in 2025
To expire in 2026		10,066,688.21
To expire in 2027	6,797,513.52	10,242,955.48
To expire in 2028	39,945,675.62
Total	46,743,189.14	20,898,005.44	/

Other notes:

□Applicable √Not applicable

30. Other non-current assets

√Applicable □Not applicable

Unit: Yuan (RMB)

			Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Endingbalance			Openingbalance
Book balance	Provision for impairmen t	Book value	Book balance	Provision for impairment	Book value
5,476,081,05 1.13		5,476,081, 051.13	3,524,838,0 13.71		3,524,838,01 3.71
238,077,253. 06		238,077,2 53.06	150,975,384 .28		150,975,384. 28
48,467,654.3 8		48,467,65 4.38	133,276,435 .44		133,276,435. 44
5,762,625,95 8.57		5,762,625, 958.57	3,809,089,8 33.43		3,809,089,83 3.43

Other notes:

As of December 31, 2023, the Group issued bank acceptance notes with three-year fixed deposit certificates of RMB 4,831,970,833.33 yuan as the pledge (December 31, 2022:

227

2023 Annual Report

RMB 3,230,000,000.00 yuan)，Section 10 VII. 31 Assets restricted in ownership or right of use for details.

31. Assets restricted in ownership or right of use

√Applicable □Not applicable

	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Endingbalance			Openingbalance
	Book balance	Provision for impairment	Book value	Book balance	Provision for impairment	Book value
Currency funds	628,724,982 .33		628,724,9 82.33	1,096,591,5 49.00		1,096,591,54 9.00
Other non-current assets	4,831,970,8 33.33		4,831,970, 833.33	3,230,000,0 00.00		3,230,000,00 0.00
Non-current assets due within oneyear	1,500,000,0 00.00		1,500,000, 000.00	3,200,000,0 00.00		3,200,000,00 0.00
Total	6,960,695,8 15.66		6,960,695, 815.66	7,526,591,5 49.00		7,526,591,54 9.00

Other notes:

1 、 As of December 31, 2023, the Group issued bank acceptance bills with RMB 54,070,370.88 yuan deposit for bank acceptance bills as the pledge (December 31, 2022: 602,044,463.13 yuan); as of December 31, 2022, the Group issued bank acceptance bills with one-year deposit certificates of RMB 574,654,611.45 yuan as the pledge (December 31, 2021: 470,000,000.00 yuan); as of December 31, 2023, the Group didn′t subscribed for financial products (December 31, 2022: 23,600,000.00 yuan); as of December 31,2023, the Group had no currency funds frozen due to labor litigation (December 31, 2022: RMB 947,085.87 yuan).

2、As of December 31, 2023, the Group issued bank acceptance notes with a three-year fixed deposit certificate of RMB 6,331,970,833.33 yuan as the pledge (December 31, 2022: RMB 6,430,000,000.00 yuan).

32. Short-term borrowings

(1) Classification of short-term borrowings

√Applicable □Not applicable

(1) Classification of short-term borrowings √Applicable □Not applicable	(1) Classification of short-term borrowings √Applicable □Not applicable	(1) Classification of short-term borrowings √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Pledged loans		511,250,000.00
Total		511,250,000.00

Notes to the classification of short-term borrowings:

None

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2023 Annual Report

(2) Short-term borrowings overdue but still remaining outstanding

□Applicable √Not applicable

Short-term borrowings overdue but still remaining outstanding

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

33. Transactional financial liabilities

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

34. Derivative financial liabilities

□Applicable √Not applicable

35. Notes payable

(1) Presentation of notes payable

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Categories	Endingbalance	Openingbalance
Bank acceptance notes	6,032,204,440.66	6,853,338,997.32
Total	6,032,204,440.66	6,853,338,997.32

Notes payable that due and unpaid at the end of the period were nil. The reason for the overdue payment is none.

36. Accounts payable

(1) Presentation of accounts payable

√Applicable □Not applicable

Unit: Yuan (RMB)

Items	Endingbalance	Openingbalance
Accountspayable	2,459,299,045.99	2,535,832,081.83
Total	2,459,299,045.99	2,535,832,081.83

(2) Significant accounts payable with age exceeding 1 year or overdue

□Applicable √Not applicable

Other notes

√Applicable □Not applicable

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2023 Annual Report

As of December 31, 2023, the Company had no significant accounts payable aged over one year.

37. Receipts in advance

(1) Presentation of receipts in advance

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Factorybuildingrent	19,145,352.20	20,619,060.26
Total	19,145,352.20	20,619,060.26

(2) Significant receipts in advance with age exceeding 1 year

□Applicable √Not applicable

(3) Amount and reasons for significant changes in book value during the reporting period

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

38. Contract liabilities

(1) About contract liabilities

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Sales rebates	398,469,160.37	437,665,926.26
Advances from sales ofgoods	224,607,522.84	198,486,523.06
Advances from service	2,155,584.76	2,277,155.72
Total	625,232,267.97	638,429,605.04

Significant contract liabilities with age exceeding 1 year

□Applicable √Not applicable

Other notes:

√Applicable □Not applicable

As of December 31, 2023, the Company had no significant contract liabilities aged over one year.

39. Employee benefits payable

(1) Employee benefits payable

√Applicable □Not applicable

230

2023 Annual Report

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Opening balance	Increase in the reporting period	Decrease in the reporting period	Ending balance
I. Short-term employee benefits	162,471,954.56	1,208,709,124.89	1,199,976,927.52	171,204,151.93
II. Post-employment benefits-defined contributionplans	428,925.94	87,762,921.39	87,851,192.18	340,655.15
III. Dismissal compensation
IV. Other benefit due within ayear
Total	162,900,880.50	1,296,472,046.28	1,287,828,119.70	171,544,807.08

(2) Presentation of short-term remuneration

√Applicable □Not applicable

(2) Presentation of short-term remuneration √Applicable □Not applicable	(2) Presentation of short-term remuneration √Applicable □Not applicable	(2) Presentation of short-term remuneration √Applicable □Not applicable	(2) Presentation of short-term remuneration √Applicable □Not applicable	(2) Presentation of short-term remuneration √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Opening balance	Increase in the reporting period	Decrease in the reporting period	Ending balance
I. Wages or salaries, bonuses, allowances and subsidies	157,884,201.7 6	1,060,428,974.3 3	1,047,957,392.2 9	170,355,783.80
II. Staff welfare	3,661,845.20	61,382,270.24	64,920,996.19	123,119.25
III. Social security contributions	318,726.86	51,214,707.36	51,340,570.54	192,863.68
Including: Medical insurance	290,422.92	45,152,780.08	45,266,838.65	176,364.35
Work injuryinsurance	21,184.34	3,575,303.54	3,579,988.55	16,499.33
Maternityinsurance	7,119.60	2,486,623.74	2,493,743.34
IV. Housingfund	490,870.00	31,349,860.78	31,429,161.78	411,569.00
V. Union running costs and employee education costs	116,310.74	674,618.50	670,113.04	120,816.20
VI. Short-term paid absence from work
VII. Short-term profit-sharing plan
VIII. Other insurance for employees		3,658,693.68	3,658,693.68
Total	162,471,954.5 6	1,208,709,124.8 9	1,199,976,927.5 2	171,204,151.93

(3) Presentation of the defined contribution plan

√Applicable □Not applicable

231

2023 Annual Report

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Opening balance	Increase in the reporting period	Decrease in the reporting period	Ending balance
1. Pension insurance	414,569.04	84,965,186.98	85,050,849.50	328,906.52
2. Unemployment insurance	14,356.90	2,797,734.41	2,800,342.68	11,748.63
3. Corporate Annuity Contributions
Total	428,925.94	87,762,921.39	87,851,192.18	340,655.15

Other notes:

□Applicable √Not applicable

40. Payable taxes

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Value-added tax	1,843,442.58	7,961,223.12
Corporate income tax	124,817,949.00	134,652,186.50
Personal income tax	4,262,371.99	2,867,285.91
Urban maintenance and construction tax	329,977.27	586,791.60
Land appreciation tax	4,451,173.83	4,566,646.41
Stampduty	1,795,237.40	589,381.87
Education Surcharge	236,274.94	419,518.73
Others	2,464,730.99	2,390,662.30
Total	140,201,158.00	154,033,696.44

Other notes:

None

41. Other payables

(1) Items Presentation

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Interestpayable
Dividendspayable
Other payables	628,111,216.14	564,648,489.37
Total	628,111,216.14	564,648,489.37

Other notes:

□Applicable √Not applicable

232

2023 Annual Report

(2) Interest payable

Presentation of classification

□Applicable √Not applicable

Significant overdue interest payable:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

(3) Dividends payable

Presentation of classification

□Applicable √Not applicable

(4) Other payables

Other payables stated based on nature of fund

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Deposits	370,849,646.25	304,954,079.97
Money for subscription of restricted shares	81,505,389.60	134,953,200.00
Expenses accrued	79,984,245.20	72,492,382.44
Payable of equipment & engineering projects	39,748,430.43	30,572,005.48
Others	56,023,504.66	21,676,821.48
Total	628,111,216.14	564,648,489.37

Significant other payables with age exceeding 1 year

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Ending balance	Cause of failure in repayment or carry-over
Security deposit of suppliers	167,276,991.01	The cash pledge has not been refunded as the cooperation is goingon
Total	167,276,991.01	/

Other notes:

□Applicable √Not applicable

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2023 Annual Report

42. Held-for-sale liabilities

□Applicable √Not applicable

43. Non-current liabilities due within a year

√Applicable □Not applicable

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Long-term borrowings due within oneyear
Bonds payable due within oneyear	4,999,900.00
Long-term payables due within oneyear
Lease liabilities due within oneyear	12,568,222.60	5,682,224.67
Total	17,568,122.60	5,682,224.67

Other notes:

None

44. Other current liabilities

About other current liabilities

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Short-term bonds payable
Refund payables
Pendingoutput VAT	28,516,899.32	24,329,644.32
Total	28,516,899.32	24,329,644.32

Increase/decrease of the short-term bonds payable:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

45. Long-term borrowings

(1) Classification of long-term borrowings

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

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2023 Annual Report

46. Bonds payable

(1) Bonds payable

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Convertible bonds	1,644,650,128.51
Total	1,644,650,128.51

(2) Details of bonds payable (excluding other financial instruments classified as financial liabilities, such as preferred shares, perpetual bonds, etc.)

√Applicable □Not applicable

Unit: Yuan (RMB)

Bond name	Face value	Coupon rate（%）	Issue date	Bond term	Issue amounts	Openi ng balan ce	Issuance in current period	Accrued interest at face vale	Amortiza tion of discount s	Repaym ent in current period	Share conversion in current period	Ending balanc e	Default or not
Conv ertible bonds	100.0 0	Note	Febru ary 23,20 23	Six years	2,000,00 0,000.00		2,000,000, 000.00	4,999,961. 00	-360,317 ,496.03		-32,336.46	1,644,6 50,128. 51	No
Total	/	/	/	/	2,000,00 0,000.00		2,000,000, 000.00	4,999,961. 00	-360,317 ,496.03		-32,336.46	1,644,6 50,128. 51	/

Note: The coupon rate of convertible corporate bonds is 0.3% in the first year, 0.5% in the second year, 1.0% in the third year, 1.5% in the fourth year, 1.8% in the fifth year and 2.0% in the sixth year.

(3) Notes to convertible company bonds

√Applicable □Not applicable

Item	Conditions of share conversion	Time of share conversion
Convertible company bonds	Convertible bond holders shall convert the convertible bonds from the first trading day six months after the issuance of the convertible bonds to the maturity date of the convertible bonds	September 1, 2023 to February 22,2029

Approved by CRSC [2022] No.3038, the Company issued 20,000,000 convertible bonds with a face value of RMB100. The bonds pay interest on February 22 every year and repay the principal at maturity. The initial conversion price of convertible bonds is 61.29 yuan per share. On 19 May 2023, due to the implementation of the annual equity distribution in 2022, the conversion price of the Company was adjusted from 61.29 yuan per share to 39.99 yuan per share in accordance with the relevant provisions of

235

2023 Annual Report

convertible bonds. On September 16, 2023, the Company implemented the semi-annual equity distribution in 2023. According to the relevant provisions of convertible bonds, the conversion price of Aima Convertible Bonds was adjusted from 39.99 yuan per share to 39.64 yuan per share.

As the above equity transfer is a derivative of the Company's exchange of a fixed amount of its own equity instruments for a fixed amount of cash or other financial assets, the Group accounts for it as equity. The fair value of the liability components of these bonds is estimated at the issue date using market interest rates for similar bonds without warrants, with the remainder being recognised as the fair value of the equity component and included in other equity instruments.

Accounting treatment and judgment basis for equity conversion.

□Applicable √Not applicable

(4) Note to other financial instruments classified as financial liabilities

Basic information on the outstanding other financial instruments, including preferred shares, perpetual bonds, etc. at the end of the reporting period

□Applicable √Not applicable

Statement of movement of the outstanding other financial instruments, including preferred shares, perpetual bonds, etc. at the end of the reporting period

□Applicable √Not applicable

Note to the basis of other financial instruments classified as financial liabilities

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

47. Lease liabilities

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Leasepayments	57,072,622.13	69,772,565.55
Unrecognised financingcosts	-13,593,562.53	-16,249,928.74
Total	43,479,059.60	53,522,636.81

Other notes:

None

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2023 Annual Report

48. Long-term accounts payable

Items Presentation

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Long-term accounts payable

(1) Long term accounts payable stated based on the nature

□Applicable √Not applicable

Special accounts payable

(1) Special accounts payable stated based on the nature

□Applicable √Not applicable

49. Long term payroll payable to the employees

□Applicable √Not applicable

50. Provision

□Applicable √Not applicable

51. Deferred income

About deferred income

√Applicable □Not applicable

Unit: Yuan (RMB)

Items	Opening balance	Increase in the reporting period	Decrease in the reporting period	Ending balance	Cause of formation
Government subsidies	198,066,664.29	106,434,406.51	12,068,670.24	292,432,400.56	Related with assets
Total	198,066,664.29	106,434,406.51	12,068,670.24	292,432,400.56	/

Other notes:

□Applicable √Not applicable

52. Other non-current liabilities

□Applicable √Not applicable

53. Share capital

√Applicable □Not applicable

237

2023 Annual Report

		Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
	Opening balance	Increase/Decrease(+/ -)					Ending balance
		Shares issued	Bonus shares	Capital reserves\ surplus reserves turned to shares	Others	Sub-total
Total Shares	574,700,004.00			287,350,002.00	-124,999.00	287,225,003.00	861,925,007.00

Other notes:

(1) On April 14, 2023, the sixth meeting of the fifth board of directors of the Company deliberated and approved the Proposal on the Plan for Profit Distribution and Conversion of Capital Reserve into Share Capital in 2022. Based on the total share capital of 574,700,004 shares of the Company on April 14, 2023, 5 shares were converted into capital reserve for every 10 shares to all shareholders. After this conversion, the total share capital of the Company was increased to 862,050,006 shares, with an increase of share capital of RMB 287,350,002.00 yuan.

(2) On July 25, 2023, the Company repurchased and cancelled 126,000 restricted shares, which were granted under the Restricted Stock Incentive Plan 2021 for the first time, from four incentive objects resigned due to personal reasons who were no longer eligible for incentives, with a decrease of share capital of RMB 126,000.00 yuan.

(3) Since September 2023, the convertible bonds issued by the Company can be converted into shares of the Company. As of December 31, 2023, a total of 1,001 shares have been converted, increasing the share capital by RMB 1,001.00 yuan.

54. Other equity instruments

(1) Basic information on the outstanding other financial instruments, including preferred shares, perpetual bonds, etc. at the end of the reporting period

√Applicable □Not applicable

The basic information and changes of the current convertible corporate bonds are detailed in Section 10 VII. 46 Bonds Payable.

(2) Statement of movement of the outstanding other financial instruments, including preferred shares, perpetual bonds, etc. at the end of the reporting period

√Applicable □Not applicable

tatement of movement of the outstanding other financial instruments, ding preferred shares, perpetual bonds, etc. at the end of the reporting period licable □Not applicable	tatement of movement of the outstanding other financial instruments, ding preferred shares, perpetual bonds, etc. at the end of the reporting period licable □Not applicable	tatement of movement of the outstanding other financial instruments, ding preferred shares, perpetual bonds, etc. at the end of the reporting period licable □Not applicable	tatement of movement of the outstanding other financial instruments, ding preferred shares, perpetual bonds, etc. at the end of the reporting period licable □Not applicable	tatement of movement of the outstanding other financial instruments, ding preferred shares, perpetual bonds, etc. at the end of the reporting period licable □Not applicable	tatement of movement of the outstanding other financial instruments, ding preferred shares, perpetual bonds, etc. at the end of the reporting period licable □Not applicable	tatement of movement of the outstanding other financial instruments, ding preferred shares, perpetual bonds, etc. at the end of the reporting period licable □Not applicable	tatement of movement of the outstanding other financial instruments, ding preferred shares, perpetual bonds, etc. at the end of the reporting period licable □Not applicable
Unit: Yuan (RMB)
Opening		Increase in current period		Decrease in current period		Ending
Number	Book value	Number	Book value	Number	Book value	Number	Book value

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2023 Annual Report

Convertible bonds			20,000,000	432,654,022. 65	400	8,653.09	19,999,600	432,645,369.56
Total			20,000,000	432,654,022. 65	400	8,653.09	19,999,600	432,645,369.56

Note to their increase/decrease and the cause(s) of their movement of other equity instruments in the reporting period and the basis for the corresponding accounting treatment:

√Applicable □Not applicable

Approved by CRSC [2022] No.3038, the Company issued 20,000,000 convertible bonds with a face value of RMB100. The bonds pay interest on February 22 every year and repay the principal at maturity. The initial conversion price of convertible bonds is 61.29 yuan per share.

Other notes:

□Applicable √Not applicable

55. Capital reserves

√Applicable □Not applicable

Unit: Yuan (RMB)

				Unit: Yuan(RMB)
Items	Opening balance	Increase in currentyear	Decrease in currentyear	Ending balance
Capital premium (capital stock premium)	1,977,765,415.63	70,515,018.52	288,437,802.00	1,759,842,632.15
Other capital reserve		3,570,007.25		3,570,007.25
Total	1,977,765,415.63	74,085,025.77	288,437,802.00	1,763,412,639.40

Other notes, including the changes in the current period and the reasons for the changes:

Changes in capital reserve for the year are attributable to:

1) Capital reserve converted into share capital decreased by RMB 287,350,002 yuan;

2) This year, 126,000 restricted shares were repurchased and cancelled, and the capital reserve was reduced by RMB1,087,800.00 yuan;

3) The Company's capital reserve increased by RMB 70,168,931.98 due to the increase in amortization of restricted stock expenses and stock option expenses;

4) Acquisition of minority interest in Tianjin Aima Shared Technology Service Co., Ltd. increased capital reserve by RMB 306,251.85 yuan;

5) The capital reserve increased by RMB 39,834.69 yuan due to the conversion of

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2023 Annual Report

convertible corporate bonds;

6) As the deductible amount of equity incentive in the future is expected to exceed the cost recognized in the waiting period, the deferred income tax assets formed in excess are directly included in the owner's equity, resulting in an increase in capital reserve of RMB 3,570,007.25 yuan.

56. Treasury stock

√Applicable □Not applicable

56. Treasury stock √Applicable □Not applicable	56. Treasury stock √Applicable □Not applicable	56. Treasury stock √Applicable □Not applicable	56. Treasury stock √Applicable □Not applicable	56. Treasury stock √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Opening balance	Increase in the reporting period	Decrease in the reporting period	Ending balance
Share-based Payment	134,953,200.00	399,999,784.28	53,447,810.40	481,505,173.88
Total	134,953,200.00	399,999,784.28	53,447,810.40	481,505,173.88

Other notes, including the changes in the current period and the reasons for the changes:

Changes in Treasury stock in the current year were due to: 1) the restricted stock equity incentive plan of the Company in 2021 was partially unlocked upon expiration, and the repurchase obligation was released to reduce Treasury stock by RMB 52,373,030.40 yuan; 2) This year, 126,000 restricted shares were repurchased and cancelled, and Treasury stock were reduced by RMB 1,074,780.00 yuan; 3) This year, 14,130,524 shares were repurchased, and Treasury stock were increased by RMB 399,999,784.28 yuan.

57. Other comprehensive income

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Item	Opening balance	Amount incurred in the currentperiod						Ending balance
		Amount incurred before income tax in the current period	Less: Transferred from other comprehensi ve income in the prior period to profit or loss	Less: Transferred from other comprehensi ve income in the prior period to retained earnings	Less: Income tax expenses	Attributable to parent company after tax	Attributable to Minority shareholders’ equity after tax
I ． Other comprehensiv e income that cannot be reclassified into profit or loss

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Where: Remeasureme nt of a defined benefitplan
Other comprehensiv e income using the equity method that will not be reclassified to profit or loss
Change in the fair value of other equity investments
Change in the fair value of the entity’s own credit risks
II. Other comprehensiv e income to be reclassified to profit or loss		268.34				268.34		268.34
Other comprehensiv e income using the equity method that may be reclassified to profit or loss
Change in the fair value of other debt investments
Amount recognised in other comprehensiv e income resulting from

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the reclassification of financial assets
Provision for credit impairment of other debt investments
Cash flow hedge reserve
Exchange differences on translation of foreign currency financial statements		268.34				268.34		268.34
Total other comprehensiv e income		268.34				268.34		268.34

Other explanations, including the adjustment to the amount initially recognized when the effective portion of the profit or loss on the cash flow hedge is transferred to the hedged item:

None

58. Special reserves

□Applicable √Not applicable

59. Surplus reserves

√Applicable □Not applicable

59. Surplus reserves √Applicable □Not applicable	59. Surplus reserves √Applicable □Not applicable	59. Surplus reserves √Applicable □Not applicable	59. Surplus reserves √Applicable □Not applicable	59. Surplus reserves √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Opening balance	Increase in the reporting period	Decrease in the reporting period	Ending balance
Statutory surplus reserve	290,784,296.91	140,178,206.59		430,962,503.50
Discretionary surplus reserves
reserve fund
Enterprise Development

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2023 Annual Report

290,784,296.91	140,178,206.59		430,962,503.50

Notes to surplus reserves, including the change in the current period, the reasons for the change:

In accordance with the Company Law and the Company's Articles of Association, the Company appropriates 10% of the profit to the statutory surplus reserves. Where the accumulated amount of the surplus reserves reaches 50% or more of the Company’s registered capital, further appropriation is not required.

After the appropriation to the statutory surplus reserves, the Company may appropriate the discretionary surplus reserves. When approved, the discretionary surplus reserves can be used to make up for accumulated losses or converted to the paid-in capital.

60. Retained earnings

√Applicable □Not applicable

60. Retained earnings √Applicable □Not applicable	60. Retained earnings √Applicable □Not applicable	60. Retained earnings √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Reporting period	Previousperiod
Retained earnings at the end of the previousperiod before the adjustment	4,012,879,593.44	2,433,650,547.11
Total retained earnings under adjustment at the beginning of the reporting year (adjustment up+, adjustment down -)
After adjustment: Retained earnings at the beginningof the reporting period	4,012,879,593.44	2,433,650,547.11
Plus: net profit attributable to owners of the parent	1,881,115,782.35	1,873,433,343.24
Less: Appropriation to statutory surplus reserves	140,178,206.59	88,954,295.41
Appropriation to discretionary surplus reserves
Appropriation togeneral risks reserves
Cash dividends declared	1,049,358,585.51	205,250,001.50
Dividends converted to capital
Cancellation of restricted stock cash dividends	-139,020.00
Retained earnings at the end of the reporting period	4,704,597,603.69	4,012,879,593.44

Statement of adjustment of retained earnings at the beginning of the reporting period:

1. The amount involved in the retroactive adjustment according to the ASBEs and the relevant new provisions influencing the retained earnings at the beginning of the reporting period was RMB 0.00 yuan.

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2023 Annual Report

1. The amount involved in change of the accounting policy influencing the retained earnings at the beginning of the reporting period was RMB 0.00 yuan.

2. The amount involved in correction of the significant accounting errors influencing the retained earnings at the beginning of the reporting period was RMB 0.00 yuan.

3. The amount involved in change of the consolidation scope caused by the common control influencing the retained earnings at the beginning of the reporting period was RMB 0.00 yuan.

4. The total amount involved in other adjustments influencing the retained earnings at the beginning of the reporting period was RMB 0.00 yuan.

Note: 1. On April 15, 2023, after deliberation and approval at the annual general meeting of shareholders in 2022, based on the total share capital of 574,700,004 shares of the Company before the implementation of the plan, a cash dividend of RMB 13.04 yuan was distributed for every 10 shares, with a total cash dividend of RMB 749,408,805.22 yuan. On September 16, 2023, after deliberation and approval at the third extraordinary general meeting of shareholders, based on the total share capital of 861,924,656 shares of the Company before the implementation of the plan, a cash dividend of RMB 3.48 yuan was distributed for every 10 shares, with a total cash dividend of RMB 299,949,780.29 yuan.

1. On May 19, 2023, the Company held the eighth meeting of the fifth board of directors and the eighth meeting of the fifth board of supervisors, deliberated and approved the Bill on Repurchase and Cancellation of Some Restricted Stocks First Granted under the Restricted Stock Incentive Plan in 2021, repurchasing and canceling a total of 126,000 restricted shares held by four incentive objects that have been granted but have not yet been lifted. According to the 2021 Restricted Stock Incentive Plan of Aima Technology Group Co., Ltd., if the restricted shares cannot be lifted, the Company shall deduct the cash dividends enjoyed by the incentive object when repurchasing the restricted shares in accordance with the provisions of the incentive plan. As of the repurchase date, the Company has cancelled the cumulative cash dividend of RMB 139,020.00 yuan distributed on the above repurchased restricted shares.

61. Operating revenue and cost of sales

(1) Operating revenue and costs of sales

√Applicable □Not applicable

Unit: Yuan (RMB)

			Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Amount incurred in the reporting period		Amount incurred in thepreviousperiod
	Revenue	Cost	Revenue	Cost
Primary business	20,894,672,459.54	17,470,787,478.54	20,665,424,894.78	17,312,624,672.57
Other businesses	141,448,402.75	92,078,468.19	136,788,099.68	85,877,959.79
Total	21,036,120,862.29	17,562,865,946.73	20,802,212,994.46	17,398,502,632.36

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2023 Annual Report

(2) Breakdown of operating revenue and costs of sales

√Applicable □Not applicable

Unit: Yuan (RMB)

	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Classification of Contracts	Total
	Operatingrevenue	Costs of sales
Types of commodities
Revenue from electric bicycles, electric Tricycle, bicycles and accessories	20,873,852,542.77	17,455,112,116.87
Rental income	45,372,400.74	30,234,754.10
Other revenue	116,895,918.78	77,519,075.76
Classification based on the operation regions
Domestic	20,810,047,648.92	17,381,543,552.03
Overseas	226,073,213.37	181,322,394.70
Time classification based on transfer of commodities
Revenue recognition at a point in time	20,990,741,709.85	17,532,631,192.63
Revenue recognition over time	45,379,152.44	30,234,754.10
Total	21,036,120,862.29	17,562,865,946.73

Other notes

□Applicable √Not applicable

(3) Information about the Group’s performance obligations

√Applicable □Not applicable

Unit: Yuan (RMB)

Item	Timing of performance obligations	Significant payment terms	The nature of the goods the Company undertak es to transfer	Whether it is the main responsi ble person	Amounts assumed by the Company that are expected to be refunded to customers	Types of quality assurance provided by the Company and related obligations
Sales of goods	The customer obtains control of the relevant	The contract price is generally due upon delivery of the goods	Electric two-whee lers, electric tricycle,	Yes	0	Quality assurance

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2023 Annual Report

	goods	and receipt of the invoice	etc.
Provision of services	When providing services	Advances from customers	After- sales service extension	Yes	0	None
Total	/	/	/	/	0	/

(4) Information about apportioning to the residual performance obligations

√Applicable □Not applicable

In this reporting period, the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied, partially unsatisfied, or without contract signed was RMB 226,763,107.60 yuan, which is expected to be recognised as revenue in 2024.

(5) Significant contract changes or significant transaction price adjustments

□Applicable √Not applicable

Other notes:

None

62. Taxes and surcharges

√Applicable □Not applicable

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Excise tax
Sales tax
Urban maintenance and construction tax	26,368,432.96	31,536,406.84
Education surcharge	19,421,736.06	22,970,992.61
Resource tax
Real estate tax	19,887,759.17	20,144,185.11
Land use tax	9,575,917.13	4,917,111.34
Tax on using vehicle and boat	63,694.22	57,516.00
Stampduty	24,940,672.76	25,217,252.62
Others	88,089.13	218,331.65
Total	100,346,301.43	105,061,796.17

Other notes:

None

63. Selling expenses

√Applicable □Not applicable

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2023 Annual Report

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Employee benefits	356,478,756.46	340,972,332.90
Advertisement and propaganda expenses	128,252,330.13	100,574,326.15
Business travel expenses	42,756,939.75	37,211,421.89
Transportation expenses	18,883,533.99	32,326,093.02
Consultingservice	33,078,849.27	25,139,713.34
Others	61,758,378.44	51,091,961.05
Total	641,208,788.04	587,315,848.35

Other notes:

None

64. Administrative expenses

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Employee benefits	255,810,909.14	244,895,671.09
Depreciation and amortization	87,410,736.71	76,108,989.94
Consultingservices	56,896,861.55	33,971,119.44
Others	74,158,342.34	77,801,442.20
Total	474,276,849.74	432,777,222.67

Other notes:

None

65. Research and development expenses

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Employee benefits	265,547,642.84	212,768,918.62
Depreciation and amortization	112,408,208.42	71,713,991.80
Professional service fees	163,637,390.70	185,359,756.90
Others	47,873,979.56	36,842,370.69
Total	589,467,221.52	506,685,038.01

Other notes:

None

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2023 Annual Report

66. Financial expenses

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Interest income	-437,121,544.42	-394,300,036.06
Interest expenses	24,713,122.27	8,693,658.65
Service charge expenses	2,133,895.19	1,941,279.12
Foreign exchange differences	-2,259.87	967,800.79
Total	-410,276,786.83	-382,697,297.50

Other notes:

None

67. Other income

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Government subsidies related to the ordinarycourse of business	142,224,526.00	78,068,464.81
Value added tax credit	29,826,884.74	46,432.16
Others	1,107,950.00	15,150.00
Total	173,159,360.74	78,130,046.97

Other notes:

None

68. Investment income

√Applicable □Not applicable

68. Investment income √Applicable □Not applicable	68. Investment income √Applicable □Not applicable	68. Investment income √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in thepreviousperiod
Return on investment from financial products	1,367,154.01	16,736,022.09
Long-term equity investment income under the equity method	-28,590,454.64	-21,624,009.83
Investment income or loss from disposal of long-term equityinvestments
Return on investment during the holding of financial assets held for trading	1,200,000.00	1,200,000.00
Losses arising from the acquisition of	4,627,046.25

248

2023 Annual Report

control of subsidiaries and the remeasurement of the original long-term equity investment at fair value on the combination date
Total	-21,396,254.38	-3,687,987.74

Other notes:

None

69. Net exposure hedge income

□Applicable √Not applicable

70. Fair value gains or losses

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Source of income arising from change in fair value	Amount incurred in the reporting period	Amount incurred in the previousperiod
Financial assets held for trading	-17,226,650.77	-12,120,000.00
Where: Gains from changes in fair value of derivative financial instruments
Total	-17,226,650.77	-12,120,000.00

Other notes:

None

71. Credit impairment losses

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Amount incurred in the reportingperiod	Amount incurred in the previous period
Impairment loss for accounts receivable	-15,456,572.30	-7,138,208.26
Impairment loss for other receivables	-15,460.37	25,993,352.29
Total	-15,472,032.67	18,855,144.03

Other notes:

None

72. Impairment losses of assets

√Applicable □Not applicable

Unit: Yuan (RMB)

249

2023 Annual Report

Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
I. Loss for write-down of inventories and Impairment loss for contract assets	-3,823,176.99	-63,577.07
II. Impairment loss for fixed assets		-3,335,891.40
Total	-3,823,176.99	-3,399,468.47

Other notes:

None

73. Gains or losses on disposal of non-current assets

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Loss on disposal of fixed assets	456,784.34	1,286,052.98
Total	456,784.34	1,286,052.98

Other notes:

None

74. Non-operating income

About non-operating income

√Applicable □Not applicable

Unit: Yuan (RMB)

Items	Amount incurred in the reporting period	Amount incurred in the previous period	Amount counted to the current non-operating profit or loss
Total gain on disposal of non-current assets
Including: Gains on disposal of fixed assets
Gains on disposal of intangible assets
Gain on exchange of non-monetaryassets
Donations accepted
Government subsidies	6,048,790.15	12,908,508.78	6,048,790.15
Penaltyincome	16,381,376.97	9,760,705.37	16,381,376.97
Accident claims	4,891,549.05	1,409,233.00	4,891,549.05

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2023 Annual Report

Others	13,261,100.58	10,120,493.32	13,261,100.58
Total	40,582,816.75	34,198,940.47	40,582,816.75

Other notes:

□Applicable √Not applicable

75. Non-operating expenses

√Applicable □Not applicable

Unit: Yuan (RMB)

Items	Amount incurred in the reporting period	Amount incurred in the previous period	Amount counted to the current non-operating profit or loss
Total losses on damage and retirement of non-current assets	5,640,313.40	6,491,365.24	5,640,313.40
Where: Loss on disposal of fixed assets	5,640,313.40	6,491,365.24	5,640,313.40
Loss on disposal of intangible assets
Loss on exchange of non-monetaryassets
Donation expenditures for public interest	6,121,145.13	27,511,324.99	6,121,145.13
Others	9,393,976.23	6,841,473.22	9,393,976.23
Total	21,155,434.76	40,844,163.45	21,155,434.76

Other notes:

None

76. Income tax expenses

(1) Statement of income tax expenses

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Current tax	401,379,769.33	335,674,890.22
Deferred tax	-84,368,767.02	18,768,600.19
Total	317,011,002.31	354,443,490.41

(2) Process of adjustment of accounting profit and income tax expenses

√Applicable □Not applicable

251

2023 Annual Report

	Unit: Yuan(RMB)
Items	Amount incurred in the reporting period
Totalprofit	2,213,357,953.92
Income tax expense at the statutoryor applicable tax rate	553,339,488.48
Effect of different tax rates for some subsidiaries	-163,855,827.40
Adjustments in respect of current tax ofpreviousperiods	1,317,659.04
Income not subject to tax	-1,908,437.13
Costs, expenses and losses not deductible for tax	4,556,855.71
The effect of using deductible losses of deferred income tax assets that have not been recognised in thepreviousperiod	-11,743,432.86
Deductible temporary differences of deferred income tax assets and tax losses not recognised	6,403,699.03
Taxpreferences such as R&D expenses super deduction	-70,353,207.66
Effect on opening deferred tax of change in the tax rate	-745,794.90
Income tax expenses	317,011,002.31

Other notes:

□Applicable √Not applicable

77. Other comprehensive income

√Applicable □Not applicable

For details, please refer to Section 10 VII. 57 Other comprehensive income

78. Cash Flow Statement Items

(1) Cash relating to operating activities

Other cash received relating to operating activities

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Interest income	181,475,377.84	176,106,716.62
Government subsidy	242,639,052.42	170,221,879.89
Recoveryof engineeringclaims		24,164,117.84
Liquidated damage income	15,561,226.65	9,495,487.50
Collection of security deposit and advancepayment	74,875,577.28	5,987,605.72
Collection of bill deposits	188,866,227.06
Others	20,928,333.31	18,602,244.33
Total	724,345,794.56	404,578,051.90

Notes to other cash received relating to operating activities:

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2023 Annual Report

None

Other cash paid relating to operating activities

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Administrative expenses and R&D expensespaid in cash	277,480,554.98	272,474,014.29
Sellingexpensepaid in cash	258,934,286.79	201,212,849.54
Payment of bill deposit	150,254,422.39	79,544,463.13
Bank service chargepaid	2,133,895.19	1,941,279.12
Others	25,176,224.34	11,816,296.94
Total	713,979,383.69	566,988,903.02

Notes to other cash paid relating to operating activities:

None

(2) Cash relating to investment activities

Cash received relating to significant investing activities

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Items	Amount incurred in the reportingperiod	Amount incurred in the previous period
Recovery fixed deposit of financial products	3,798,013,400.00	1,148,910,000.00
Total	3,798,013,400.00	1,148,910,000.00

Notes to cash received relating to significant investing activities

None

Cash paid relating to significant investing activities

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Purchase of financial products and fixed deposit certificates	4,132,312,692.90	2,473,800,000.00
Investments in associates	69,285,700.00	47,502,800.00
Total	4,201,598,392.90	2,521,302,800.00

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2023 Annual Report

Notes to cash paid relating to significant investing activities

None

Other cash received relating to investing activities

□Applicable √Not applicable

Other cash paid relating to investing activities

□Applicable √Not applicable

(3) Cash relating to financing activities

Other cash received relating to financing activities

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Recoveryof loan deposits	511,250,000.00
Total	511,250,000.00

Notes to other cash received relating to financing activities:

None

Other cash paid relating to financing activities

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Payment of loan deposits		511,250,000.00
Cash outflows relating to long term rented assets	6,080,091.35	6,204,858.42
Repurchase shares	399,999,784.28
Purchase of the Minority shareholders’ equity	5,137,857.00
Repurchase of restricted shares	1,074,780.00
Total	412,292,512.63	517,454,858.42

Notes to other cash paid relating to financing activities:

None

Changes in liabilities arising from financing activities

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Item	Opening	Increase in currentperiod	Decrease in currentperiod	Endingbalance

254

2023 Annual Report

	balance	Cash change	Non-cash changes	Cash change	Non-cash changes
Short-term borrowings	511,250,000. 00			511,250,000. 00		0.00
Dividends payable			1,049,358, 585.51	1,049,358,58 5.51		0.00
Bonds payable (including those due within one year)		1,561,143, 337.17	88,539,027 .80		32,336.46	1,649,650,028.5 1
Lease liabilities (including those due within one year)	59,204,861.4 8		2,922,512. 07	6,080,091.35		56,047,282.20
Total	570,454,861. 48	1,561,143, 337.17	1,140,820, 125.38	1,566,688,67 6.86	32,336.46	1,705,697,310.7 1

(4) Description of cash flows presented on a net basis

□Applicable √Not applicable

(5) Significant activities and financial effects that do not involve current cash receipts and payments but affect the financial position of the enterprise or may affect the cash flow of the enterprise in the future

□Applicable √Not applicable

79. Notes to the statement of cash flows

(1) Notes to the statement of cash flows

√Applicable □Not applicable

(1) Notes to the statement of cash flows √Applicable □Not applicable	(1) Notes to the statement of cash flows √Applicable □Not applicable	(1) Notes to the statement of cash flows √Applicable □Not applicable
Unit: Yuan(RMB)
Supplementary information	Amount in the reporting period	Amount in the previous period
1. Reconciliation ofprofit to net cash flows from operating activities:
Netprofit	1,896,346,951.61	1,872,542,828.78
Plus: Provisions for asset impairment	3,823,176.99	3,399,468.47
Loss from impairment of credit	15,472,032.67	-18,855,144.03
Depreciation of fixed assets, depletion of oil and gas asset, depreciation of productive biological asset	293,631,996.36	213,431,999.00
Amortization of right-of-use assets	8,653,838.43	9,032,240.71
Depreciation and amortization of investment	20,853,907.54	15,941,635.01

255

2023 Annual Report

property	property
Amortization of intangible assets		41,299,419.89		30,383,432.14
Amortization of long-termprepaid expenses		23,093,373.50		18,353,328.15
Loss (income is stated in “-”) from disposal of fixed assets, intangible assets and other long-term assets		5,183,529.06		5,584,963.80
Loss on retirements of fixed assets (profit is stated with “-”)
Loss from change of fair value (profit is stated with “-”)		17,226,650.77		12,120,000.00
Financial expenses(income is stated with “-”)		-213,832,837.26		-196,253,286.61
Investment loss(income is stated with “-”)		21,396,254.38		3,687,987.74
Decrease of the deferred tax asset (increase is stated with “_”)		-80,345,569.85		4,820,369.66
Increase of deferred tax liability (decrease is stated with “-”)		-4,023,197.17		13,948,230.53
Decrease of inventories(Increase is stated with “-”)		281,199,216.13		-14,885,655.50
Decrease in receivables from operating activities(Increase is stated with “-”)		-82,581,119.97		116,574,148.98
Increase in payables from operating activities (Decrease is stated with “-”)		-550,594,554.10		2,846,422,709.33
Share-basedpayments		70,168,931.98		80,660,907.94
Others		97,304,232.94		34,543,952.84
Net cash flows arisingfrom operatingactivities		1,864,276,233.90		5,051,454,116.94
2. Significant investment and financing activities with no cash income and expenses involved:
Capital converted from liabilities
Convertible companybonds due within ayear
Fixed assets under finance lease
3. Net change in cash and cash equivalents:
Endingcash balance		6,034,424,497.73		5,536,066,687.82
Less: Openingbalance of cash		5,536,066,687.82		2,846,143,310.70
Plus: Endingbalance of cash equivalent
Less: Openingbalance of cash equivalent
Net increase of cash and cash equivalents		498,357,809.91		2,689,923,377.12
	(2) Net cash paid for acquisition of subsidiary in the reporting period √Applicable □Not applicable Unit: Yuan(RMB) Amount Cash or cash equivalents paid for business combinations in the currentperiod 9,554,782.42 Less: Cash and cash equivalents held by the Company on the acquisition date 43,059,124.33
			Amount
	Cash or cash equivalents paid for business combinations in the currentperiod		9,554,782.42
	Less: Cash and cash equivalents held by the Company on the acquisition date		43,059,124.33

256

2023 Annual Report

Net cash paid to acquire subsidiaries

-33,504,341.91

Other notes:

None

(3) Net cash received from disposal of subsidiary in the reporting period

□Applicable √Not applicable

(4) Composition of cash and cash equivalents

√Applicable □Not applicable

(4) Composition of cash and cash equivalents √Applicable □Not applicable	(4) Composition of cash and cash equivalents √Applicable □Not applicable	(4) Composition of cash and cash equivalents √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
I. Cash	6,034,424,497.73	5,536,066,687.82
Including: Cash in stock
Bank deposit available for payment at anytime	6,034,424,497.73	5,536,066,687.82
Other monetary fund used for payment at anytime
Due from central bank available for payment
Due from banks
Call loan to banks
II. Cash equivalents
Including: bond investment due within three months
III. Ending balance of cash and cash equivalents	6,034,424,497.73	5,536,066,687.82
Including：Use of restricted cash and cash equivalents by the parent company or subsidiaries within the Group

(5) Limited scope of use but still presented as cash and cash equivalents

√Applicable □Not applicable

(5) Limited scope of use but still presented as cash and cash equivalents √Applicable □Not applicable	(5) Limited scope of use but still presented as cash and cash equivalents √Applicable □Not applicable	(5) Limited scope of use but still presented as cash and cash equivalents √Applicable □Not applicable
Unit: Yuan(RMB)
Item	Current amount	Reason
Currency funds	628,724,982.33	Pledge for issuing bank acceptance draft
Total	628,724,982.33	/

(6) Currency funds out of the scope of cash and cash equivalents

√Applicable □Not applicable

Unit: Yuan (RMB)

257

2023 Annual Report

Item	Current amount	Amount of prior period	Reason
Billguarantee deposits	58,179,842.00	602,379,488.38	Deposits and frozen funds with long term and weak liquidity expected to expire
Certificates of deposit and interest due within oneyear	574,654,611.45	470,461,808.22
Judicial frozen monetaryfunds		947,085.87
Financial products purchased		23,600,000.00
Total	632,834,453.45	1,097,388,382.47	/

Other notes:

□Applicable √Not applicable

80. Notes to items of statement of change in owner’s equity

Note to the description of item “Others” and adjusted amounts for adjusting the closing balance of the previous year:

□Applicable √Not applicable

81. Foreign currency monetary items

(1) Foreign currency monetary items

√Applicable □Not applicable

In: Yuan

			In: Yuan
Item	Ending balance of foreign currency	Translation exchange rate	Closing balance of translation in RMB
Currencyfunds	-	-	57,463,879.61
Including: USD	8,113,267.20	7.0827	57,463,837.60
EUR
HKD	46.36	0.9062	42.01
Trade receivables	-	-	57,396,204.90
Including: USD	8,024,547.55	7.0827	56,835,462.93
EUR	71,348.48	7.8592	560,741.97
HKD
Otherpayables	-	-	38,004.18
Including: USD	5,020.68	7.0827	35,559.97
EUR	311.00	7.8592	2,444.21

Other notes:

None

258

2023 Annual Report

(2) Note to overseas operating entities, including important overseas operating entities, which should be disclosed about its principal business place, function currency for bookkeeping and basis for the choice. In case of any change in function currency, the cause should be disclosed.

□Applicable √Not applicable

82. Leases

(1) As lessee

√Applicable □Not applicable

Variable lease payments not included in the measurement of lease liabilities

□Applicable √Not applicable

Lease expenses for short-term leases or low-value assets that are simplified

□Applicable √Not applicable

Sale and leaseback transactions and basis of judgment

□Applicable √Not applicable

Total cash outflows related to leases is 10,024,978.61 (Unit: Yuan (RMB))

(2) As lessor

Operating leases as lessors

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Item	Rental income	Including: Income related to variable lease payments not included in lease receipts
Rental of buildings	45,372,400.74
Total	45,372,400.74

Finance leases as lessors

□Applicable √Not applicable

Reconciliation of undiscounted lease receipts to net lease investments

□Applicable √Not applicable

Undiscounted lease receipts over the next five years

√Applicable □Not applicable

	Unit: Yuan(RMB) Annual undiscounted lease receipts Endingbalance Openingbalance 38,931,449.25 21,123,816.81	Unit: Yuan(RMB) Annual undiscounted lease receipts Endingbalance Openingbalance 38,931,449.25 21,123,816.81
Item	Annual undiscounted lease receipts
	Endingbalance	Openingbalance
Within 1year, inclusive	38,931,449.25	21,123,816.81

259

2023 Annual Report

1 to 2years, inclusive	9,493,822.87	3,340,297.32
2 to 3years, inclusive	1,870,400.00	675,340.00
3 to 4years, inclusive	25,000.00	25,000.00
4 to 5years, inclusive	25,000.00	25,000.00
Over 5years		25,000.00
Total undiscounted lease receipts after fiveyears	50,345,672.12	25,214,454.13

(3) Recognise profit or loss on sales of finance leases as a manufacturer or dealer

□Applicable √Not applicable

Other notes:

None

83. Others

□Applicable √Not applicable

• (1) Presented by nature of expenses

VIII. Research and development expenditure

√Applicable □Not applicable

VIII. Research and development expenditure √Applicable □Not applicable	VIII. Research and development expenditure √Applicable □Not applicable	VIII. Research and development expenditure √Applicable □Not applicable
Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Employee benefits	265,547,642.84	212,768,918.62
Depreciation and amortization	112,408,208.42	71,713,991.80
Professional service fees	163,637,390.70	185,359,756.90
Others	47,873,979.56	36,842,370.69
Total	589,467,221.52	506,685,038.01
Including: Expenditures for research and development	589,467,221.52	506,685,038.01
Capitalized research and development expenditure

Other notes:

None

(2) Research and development expenditure eligible for capitalization

□Applicable √Not applicable

Significant capitalized research and development projects

□Applicable √Not applicable

260

2023 Annual Report

Provision for impairment of development expenses

□Applicable √Not applicable

Other notes:

None

• (3) Important outsourcing research projects

□Applicable √Not applicable

IX. Changes in scope of consolidation

1. Business combinations not under common control

√Applicable □Not applicable

(1) Business combinations not under common control in the current period

√Applicable □Not applicable

(1) Business combinations not under common control in the current period √Applicable □Not applicable	(1) Business combinations not under common control in the current period √Applicable □Not applicable	(1) Business combinations not under common control in the current period √Applicable □Not applicable	(1) Business combinations not under common control in the current period √Applicable □Not applicable	(1) Business combinations not under common control in the current period √Applicable □Not applicable	(1) Business combinations not under common control in the current period √Applicable □Not applicable	(1) Business combinations not under common control in the current period √Applicable □Not applicable	(1) Business combinations not under common control in the current period √Applicable □Not applicable	(1) Business combinations not under common control in the current period √Applicable □Not applicable	(1) Business combinations not under common control in the current period √Applicable □Not applicable
Unit: Yuan(RMB)
Name of the acquire	Equity acquisition date	Cost of equity acquisition	Equity acquisitio n ratio （%）	Equity acquisit ion method	Purchase date	Deter minatio n basis of purcha se date	Revenue from the acquiree from the acquisition date to the end of the period	Net profit of the acquiree from the acquisition date to the end of the period	Cash flow of the acquiree from the acquisition date to the end of the period
Geling New Energy	May 31, 2023	52,565,148. 52	60.01%	Acquisi tion	May 31,2023	Equity deliver y	204,757,530. 94	9,520,307.18	99,160,746.7 1

Other notes:

In August 2021, the Company acquired 49.01% equity of Geling New Energy at RMB 22,717,737.96 yuan, and accounted for it with equity method. As at 31 May 2023, the carrying amount of equity held by the Group was RMB 38,383,319.85 yuan. On that date, the Group acquired 11% equity interest in Geling New Energy at a consideration of RMB 9,554,782.42 yuan, holding a total of 60.01% equity interest in Geling New Energy.

(2) Cost of combination and goodwill

√Applicable □Not applicable

(2) Cost of combination and goodwill √Applicable □Not applicable	(2) Cost of combination and goodwill √Applicable □Not applicable
Unit: Yuan(RMB)
Consolidation costs	GelingNew Energy
--Cash	9,554,782.42
--Fair value of non-cash assets
--Fair value of debt issued or assumed
--Fair value of equitysecurities issued

261

2023 Annual Report

--Fair value of contingent consideration
--Fair value of equity held before the acquisition date at the acquisition date	43,010,366.10
--Others
Total consolidation costs	52,565,148.52
Less: Share of fair value of identifiable net assets acquired	52,664,651.06
Amount of goodwill/combination cost less than fair value of identifiable net assets acquired	-99,502.54

Determination method of fair value of combination cost:

□Applicable √Not applicable

Fulfillment of performance commitments:

□Applicable √Not applicable

The main reasons for the formation of large goodwill:

□Applicable √Not applicable

Other notes:

None

(3) Identifiable assets and liabilities of the acquiree at the acquisition date

√Applicable □Not applicable

	Unit: Yuan(RMB)	Unit: Yuan(RMB)
	GelingNew EnergyTechnology (Shandong)Co., Ltd.
	Fair value at acquisition date	Carryingamount at acquisition date
Assets:
Current assets	109,678,741.32	106,843,611.89
Non-current assets	37,754,490.30	37,754,490.30
Total assets	147,433,231.62	144,598,102.19
Liabilities:
Current liabilities	59,667,004.70	59,667,004.70
Total liabilities	59,667,004.70	59,667,004.70
Net assets	87,766,226.92	84,931,097.49
Less: Minority interest	35,101,575.86	33,967,682.85
Net assets acquired	52,664,651.06	50,963,414.64

Determination method of fair value of identifiable assets and liabilities:

Asset based valuation

262

2023 Annual Report

Contingent liabilities of the acquiree assumed in a business combination:

None

Other notes:

None

(4) Gains or losses arising from remeasurement of equity held before the acquisition date at fair value

Whether there are transactions that achieve business combination step by step through multiple transactions and obtain control during the reporting period

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Name of the acquiree	Acquisition date of the original equity held before the acquisition date	Acquisition ratio of originally held equity before acquisition date (%)	Acquisition cost of originally held equity before acquisition date	Acquisition method of originally held equity before acquisition date	Book value of originally held equity before the acquisition date at the acquisition date	Fair value of previously held equity at acquisition date	Gains or losses arising from remeasurem ent of previously held equity at fair value before the acquisition date	Determination method and main assumptions of the fair value of the original equity held before the acquisition date on the acquisition date	Amount of other comprehensiv e income related to the original equity held before the acquisition date transferred to investment income or retained earnings
Geling New Energy	July 2021	49%	43,722,800 .00	Purchase	38,383,319. 85	43,010,36 6.10	4,627,046.2 5	Asset based valuation

Other notes:

None

(5) Description of the combination consideration or fair value of the acquiree's identifiable assets and liabilities that cannot be reasonably determined on the acquisition date or at the end of the current period

□Applicable √Not applicable

(6) Other notes

□Applicable √Not applicable

2. Business combinations under common control

□Applicable √Not applicable

263

2023 Annual Report

3. Reverse Purchase

□Applicable √Not applicable

4. Disposal of subsidiaries

Whether there are transactions or events that have lost control of subsidiaries in the current period

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Whether there is a situation in which the investment in a subsidiary is disposed of step by step through multiple transactions and the control right is lost in the current period

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

5. Changes in scope of consolidation for other reasons

Explain the changes in the scope of consolidation (e.g., new subsidiaries, liquidation subsidiaries, etc.) caused by other reasons and relevant information:

√Applicable □Not applicable

Name of subsidiary	Place of registration	Nature of business	Total shareholdin g ratio of the Company (%)	Proportio n of voting rights enjoyed by the Company (%)	Reason for new subsidiary
Tianjin Electromechanica l	Tianjin	manufacturin g industry	100	100	New establishmen t
Yangjiang Xiaoma	Guangdon g	technical service	100	100	New establishmen t
Aima Taizhou	Zhejiang	Wholesale and retail	100	100	New establishmen t
Guangxi Xiaoma	Guangxi	technical service	60	60	New establishmen t
Aima Electric Drive	Zhejiang	Services	100	100	New establishmen

264

2023 Annual Report

					t
Vietnam Aima	Vietnam	manufacturin g industry	100	100	New establishmen t
Geling New Energy	Shandong	manufacturin g industry	60.01	60.01	Acquisition during the year
Aiska	Zhejiang	Wholesale and retail	60.01	60.01	Acquisition during the year
Tianjin Xiaoma	Tianjin	technical service	100	100	New establishmen t
Wanning Xiaoma	Hainan	technical service	100	100	New establishmen t
Indonesia Aima	Indonesia	manufacturin g industry	100	100	New establishmen t
Aima Nanfang	Jiangsu	Wholesale and retail	100	100	cancellation
Taizhou Xiaoma	Zhejiang	technical service	100	100	New establishmen t
Aima Lianxiang	Tianjin	manufacturin g industry	51	51	New establishmen t
Aima Shengsituo	Tianjin	manufacturin g industry	51	51	New establishmen t

Note: Aiska is a wholly-owned subsidiary of Geling New Energy.

6. Others

□Applicable √Not applicable

X. Interests in other entities

1. Interests in subsidiaries

(1) Composition of the enterprise group

√Applicable □Not applicable

(1) Composition of the enterprise group √Applicable □Not applicable	(1) Composition of the enterprise group √Applicable □Not applicable	(1) Composition of the enterprise group √Applicable □Not applicable	(1) Composition of the enterprise group √Applicable □Not applicable	(1) Composition of the enterprise group √Applicable □Not applicable	(1) Composition of the enterprise group √Applicable □Not applicable	(1) Composition of the enterprise group √Applicable □Not applicable
Unit: Ten Thousand Yuan(RMB)
Subsidiary Name	Principal place of	Registered capital	Place of registration	Nature of business	Shareholding ratio(%)	Obtain Mode

265

2023 Annual Report

	business				Direct	Indirect
Tianjin Vehicle	Tianjin	10,000.00	Tianjin	Manufacture		100	Establishment
Henan Vehicle	Henan	10,000.00	Henan	Manufacture		100	Establishment
Jiangsu Vehicle	Jiangsu	44,000.00	Jiangsu	Manufacture		100	Establishment
Guangdong Vehicle	Guangdong	10,000.00	Guangdong	Manufacture		100	Establishment
ZhejiangVehicle	Zhejiang	10,000.00	Zhejiang	Manufacture		100	Establishment
Xiaopa Electric	Shanghai	200.00	Shanghai	Services		100	Establishment
Tianjin Sports	Tianjin	1,000.00	Tianjin	Manufacture	100		Establishment
Xiaoma Network	Chongqing	1,000.00	Chongqing	Wholesale and retail		100	Establishment
Spozman	Tianjin	1,000.00	Tianjin	Manufacture		100	Establishment
Guangxi Vehicle	Guangxi	10,000.00	Guangxi	Manufacture		100	Establishment
Tianjin Tianli	Tianjin	500.00	Tianjin	Manufacture		100	Establishment
Aima Chongqing	Chongqing	1,000.00	Chongqing	Wholesale and retail	100		Establishment
Chongqing Vehicle	Chongqing	10,000.00	Chongqing	Manufacture		100	Establishment
ZhejiangSales	Zhejiang	1,000.00	Zhejiang	Manufacture		100	Establishment
Taizhou Manufacture	Zhejiang	40,000.00	Zhejiang	Manufacture		100	Establishment
Aima Venture Capital	Zhejiang	3,000.00	Zhejiang	Investment platform	100		Establishment
Lishui Vehicle	Zhejiang	10,000.00	Zhejiang	Manufacture		100	Establishment
Suoteng Technology	Hong Kong	HK $63 million	Hong Kong	Wholesale and retail	100		Establishment
Aima Singapore	Singapore	S $1000	Singapore	Wholesale and retail		100	Establishment
Chongqing Electromechanical	Chongqing	5,000.00	Chongqing	Manufacture		100	Establishment
Xiaoma Intelligence	Chongqing	5,000.00	Chongqing	Technical service		100	Establishment
Aima Vehicle Service	Chongqing	5,000.00	Chongqing	Wholesale and retail		100	Establishment
Aima Logistics	Chongqing	5,000.00	Chongqing	Logistics		55	Establishment
Super Universe	Chongqing	2,000.00	Chongqing	Wholesale and retail	100		Establishment
Tianjin Electromechanical	Tianjin	5,000.00	Tianjin	Manufacture		100	Establishment
Aima Taizhou	Zhejiang	1,000.00	Zhejiang	Wholesale and retail		100	Establishment
Guangxi Xiaoma	Guangxi	5,000.00	Guangxi	Technical service		60	Establishment

266

2023 Annual Report

Aima Electric Drive	Zhejiang	6,000.00	Zhejiang	Services	100		Establishment
Vietnam Aima	Vietnam	VND190,440 million	Vietnam	Manufacture		100	Establishment
Geling New Energy	Shandong	8,922.00	Shandong	Manufacture		60.01	Consolidation not under common control
Aiska	Zhejiang	1,000.00	Zhejiang	Wholesale and retail		60.01	Consolidation not under common control
Tianjin Xiaoma	Tianjin	1,000.00	Tianjin	Technical service		100	Establishment
Wanning Xiaoma	Hainan	2,000.00	Hainan	Technical service		100	Establishment
Indonesia Aima	Indonesia	IDR 169,543 million	Indonesia	Manufacture		100	Establishment
Suiwanwan	Tianjin	500.00	Tianjin	Services	100		Consolidation under common control
Yangjiang Xiaoma	Guangdong	50.00	Guangdong	Technical service		100	Establishment
Taizhou Xiaoma	Zhejiang	700.00	Zhejiang	Services		100	Establishment
Aima Shengsituo	Tianjin	500.00	Tianjin	Manufacture		51	Establishment
Aima Lianxiang	Tianjin	1,000.00	Tianjin	Manufacture		51	Establishment

Description of the difference between shareholding ratio and voting right ratio in subsidiaries:

None

The basis for holding half or less of the voting rights but still controlling the investee and holding more than half of the voting rights but not controlling the investee:

None

For significant structured entities included in the scope of consolidation, the basis of control is as follows:

None

Basis for determining whether the company is an agent or a principal:

None

Other notes:

267

2023 Annual Report

None

(1) Significant non-wholly owned subsidiaries

□Applicable √Not applicable

(2) Key financial information of significant non-wholly owned subsidiaries

□Applicable √Not applicable

(3) Significant restrictions on the use of enterprise group assets and the settlement of enterprise group debts

□Applicable √Not applicable

(4) Financial or other support provided to structured entities included in the scope of consolidated financial statements

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

2. Transactions in which the share of owner's equity in a subsidiary changes and the subsidiary is still controlled

√Applicable □Not applicable

(1) Description of changes in owners' equity in subsidiaries

√Applicable □Not applicable

In November 2023, the Company acquired 22% and 5% of Spozman's equity from the minority shareholders Zhu Yu and Li Yuan for a total consideration of RMB 5,137,857.00 yuan. Upon completion of the acquisition, the Group holds 100% equity interest in Spozman. As a result of this transaction, the minority interest in the consolidated financial statements decreased by RMB 5,444,108.84 yuan and the capital reserve increased by RMB 306,251.85 yuan.

(2) Effect of transactions on Minority shareholders’ equity and owners' equity attributable to the parent company

√Applicable □Not applicable

Unit: Yuan(RMB)	Unit: Yuan(RMB)
	Spozman
Acquisition cost/disposal consideration	5,137,857.00
--Cash	5,137,857.00
--Fair value of non-cash assets
Totalpurchase cost/disposal consideration	5,137,857.00
Less: Share of net assets of subsidiaries calculated based on the proportion of equity	5,444,108.84

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acquired/disposed
difference	-306,251.84
Including: Adjustment of capital reserve	306,251.84
Adjustment of surplus reserve
Adjusted retained earnings

Other notes

□Applicable √Not applicable

3. Interests in joint ventures or associates

√Applicable □Not applicable

(1) Significant joint ventures or associates

√Applicable □Not applicable

Name of joint venture or associate	Principal place of business	Place of registration	Nature of business	Shareholding ratio (%)	Shareholding ratio (%)	Accounting for investments in joint ventures or associates
				Direct	Indirect
Today Sunshine	Zhejiang	Zhejiang	Manufacturing industry		10.42	Equity method
Tianjin Jiema	Tianjin	Tianjin	Manufacturing industry		40.00	Equity method
Taizhou Jinfu	Zhejiang	Zhejiang	Venture capital	55.90		Equity method
Beijing Zhongzhong	Beijing	Beijing	Services		38.00	Equity method
Chongqing Xintai	Chongqing	Chongqing	Manufacturing industry		35.00	Equity method
Guangxi Ningfu	Guangxi	Guangxi	Manufacturing industry		1.97	Equity method

Description of the difference between shareholding ratio and voting right ratio in joint ventures or associates:

According to the Taizhou Jinfu Partnership Agreement, as one of the limited partners, the Company has no right to unilaterally determine the relevant activities of the Partnership, so it does not control Taizhou Jinfu, but has a significant impact on it.

The basis for holding less than 20% of the voting rights but having significant influence, or holding 20% or more of the voting rights but not having significant influence:

According to Today Sunshine's articles of association, the Company has the right to appoint directors to its board of directors, and accordingly has the right to participate in the decision-making of its financial and operating decisions, thereby exerting significant influence on it.

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According to the resolution of the shareholders' meeting of Guangxi Ningfu, the Company appoints directors to its board of directors, and accordingly has the right to participate in the decision-making of its financial and operating decisions, thus exerting significant influence on it.

(2) Key financial information of significant joint ventures

□Applicable √Not applicable

(3) Key financial information of significant associates

□Applicable √Not applicable

(4) Summary financial information of insignificant joint ventures and associates

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
	Closing balance/amount incurred in the currentperiod	Opening balance/amount incurred inpriorperiod
Joint venture:
Total carrying amount of investments
Total of the followingitems calculated byshareholding ratio
--Netprofit
--Other comprehensive income
--Total comprehensive income
Associates:
Total carrying amount of investments	127,263,995.91	128,152,070.40
Total of the followingitems calculated byshareholding ratio
--Netprofit	-28,590,454.64	-21,624,009.83
--Other comprehensive income
--Total comprehensive income

Other notes

None

(5) Description of significant restrictions on the ability of joint ventures or associates to transfer funds to the Company

□Applicable √Not applicable

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2023 Annual Report

(6) Excess losses of joint ventures or associates

□Applicable √Not applicable

(7) Unrecognized commitments related to investments in joint ventures

□Applicable √Not applicable

(8) Contingent liabilities related to investments in joint ventures or associates

□Applicable √Not applicable

4. Significant joint operations

□Applicable √Not applicable

5. Interests in structured entities not included in the scope of consolidated financial statements

Description of structured entities not included in the scope of consolidated financial statements:

□Applicable √Not applicable

6. Others

□Applicable √Not applicable

X. Government Grants

1. Government grants recognized at amounts receivable at the end of the reporting period

□Applicable √Not applicable

Reasons for failing to receive the estimated amount of government subsidies at the estimated time point

□Applicable √Not applicable

2. Liabilities related to government grants

√Applicable □Not applicable

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Financial statement items	Opening balance	Amount of new subsidies in the current period	Amount included in non-operating income in the currentperiod	Transfer to other income in the current period	Other changes in the current period	Ending balance	Related to assets/income
Deferred income	198,066,664.29	106,434,406.51		12,068,670.24		292,432,400.56	Asset-related
Total	198,066,664.29	106,434,406.51		12,068,670.24		292,432,400.56	/

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2023 Annual Report

3. Government grants recognized in profit or loss

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Type	Amount incurred in the current period	Amount incurred in prior period
Asset-related	12,068,670.24	9,937,776.17
Related to income	130,155,855.76	68,130,688.64
Other	6,048,790.15	12,908,508.78
Total	148,273,316.15	90,976,973.59

Other notes:

None

XI. Risks Related to Financial Instruments

1. Risks of financial instruments

√Applicable □Not applicable

The Company is exposed to various risks of financial instruments in its daily activities, mainly including credit risk, liquidity risk and market risk. The Company's main financial instruments include currency funds, accounts receivable, receivables financing, notes payable and accounts payable. The risks associated with these financial instruments and the risk management strategies adopted by the Company to mitigate these risks are described below.

(1) Credit risk

The Company only deals with recognized and reputable third parties. In accordance with the Company's policy, a credit review is required for all customers who require credit transactions. In addition, the Company continuously monitors the balance of accounts receivable to ensure that the Company is not exposed to significant bad debt risks. For transactions not settled in the functional currency of the relevant business unit, the Company does not provide credit transaction conditions unless specifically approved by the Company's credit control department.

As the counterparties of monetary funds, financial assets held for trading, receivables financing, other non-current assets and certificates of deposit due within one year are banks with good reputation and high credit rating, these financial instruments have low credit risk.

The Company's other financial assets include accounts receivable and other receivables. The credit risk of these financial assets arises from the default of the counterparty, and the maximum risk exposure is equal to the carrying amount of these instruments.

Since the Company only deals with recognized and reputable third parties, no collateral is required. Credit risk is centrally managed by customer/counterparty, geographical region and industry. There is no significant concentration of credit risk within the Company as the

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Company's accounts receivable are widely dispersed across the customer base.

For the quantitative data of the Company's credit risk exposure arising from notes receivable, accounts receivable and other receivables, please refer to "Section VII. 5 Accounts receivable" and "Section VII. 9 Other receivables".

(2) Liquidity risk

The Company's objective is to use a variety of financing means to maintain the balance between sustainability and flexibility of financing. The Company finances its operations through funds generated from operations and borrowings.

The following table summarizes the maturity analysis of financial liabilities based on undiscounted contractual cash flows:

The following table summarizes the maturity analysis of financial liabilities based on undiscounted contractual cash flows:	The following table summarizes the maturity analysis of financial liabilities based on undiscounted contractual cash flows:	The following table summarizes the maturity analysis of financial liabilities based on undiscounted contractual cash flows:	The following table summarizes the maturity analysis of financial liabilities based on undiscounted contractual cash flows:	The following table summarizes the maturity analysis of financial liabilities based on undiscounted contractual cash flows:	The following table summarizes the maturity analysis of financial liabilities based on undiscounted contractual cash flows:
December 31, 2023
Financial liabilities	Within 1 year	1 to 2 years	2 to 3 years	Over 3 years	Total
Notes payable	6,032,204,440. 66				6,032,204,44 0.66
Trade payables	2,459,299,045. 99				2,459,299,04 5.99
Other payables	628,111,216.1 4				628,111,216. 14
Lease liabilities		7,398,165 .14	7,398,165.1 4	42,276,291.8 5	57,072,622.1 3
Non-current liabilities due within oneyear	20,179,767.71				20,179,767.7 1
Bonds payable	5,999,880.00	9,999,800 .00	19,999,600. 00	2,265,954,68 0.00	2,301,953,96 0.00
Total	9,145,794,350. 50	17,397,96 5.14	27,397,765. 14	2,308,230,97 1.85	11,498,821,0 52.63

(3) Market risk

The Company is exposed to transactional exchange rate risk. Such risks arise from sales or purchases made by an operating unit in a currency other than its functional currency. As the amount of the Company's foreign currency business is not significant, the Company believes that changes in foreign exchange rates will not have a significant impact on the Company's financial statements.

2. Hedging

(1) The Company conducts hedging business for risk management

□Applicable √Not applicable

Other notes

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2023 Annual Report

□Applicable √Not applicable

(2) The Company conducts qualifying hedging business and applies hedge accounting

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

(3) The Company carries out hedging business for risk management and expects to achieve risk management objectives but does not apply hedge accounting

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

3. Transfer of financial assets

(1) Transfer Method Classification

□Applicable √Not applicable

(2) Financial assets derecognised as a result of transfer

□Applicable √Not applicable

(3) Transferred financial assets with continuing involvement

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

XII. Disclosure of Fair Value

1 . Fair value at the end of the reporting period of the assets and liabilities measured based on the fair value

√Applicable □Not applicable

	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Fair value at the end of the reporting period
	Level 1 fair value measurement	Level 2 fair value measurement	Level 3 fair value measu rement	Total
I. Continuous fair value measurement	176,041,430.92	8,893,241.61		184,934,672.53
(I) Financial assets held for	176,041,430.92			176,041,430.92

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2023 Annual Report

trading	trading	trading	trading	trading
1. Financial assets at fair value throughprofit or loss					176,041,430.92			176,041,430.92
(1) Debt instrument investment
(2) Equity instrument investment
(3)Derivative financial assets
2. Financial assets designated at fair value through profit or loss
(1) Debt instrument investment
(2) Equity instrument investment
(II)Other	debt		investment
(III) Other equity instrument investment
(IV)Investment				properties
1. Land use right for lease purpose
2. Leased buildings
3. The land use right held and to be assigned after appreciation.
(V)Biological		assets
1. Consumable biological asset
2. Productive biological asset
(VI)Receivables financing						8,893,241.61		8,893,241.61
Total assets measured based on fair value					176,041,430.92	8,893,241.61		184,934,672.53
(VI) Financial liabilities held for trading
1. Financial liabilities at fair value throughprofit or loss
Where: Issued transactional bonds
Derivative financial liabilities
Others
2. Financial liabilities designated at fair value throughprofit or loss

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2023 Annual Report

Total liabilities continuously measured based on fair value
II. Non-continuous fair value measurement
(I)Held-for-sale assets
Total assets non-continuously measured based on fair value
Total liabilities non-continuously measured based on fair value

2 . Basis for determining the market price of the items measured based on the

continuous and non-continuous first level fair value

□Applicable √Not applicable

3. Items measured based on the continuous or non-continuous 2nd level fair value, valuation technique as used, nature of important parameters and quantitative

information

□Applicable √Not applicable

4. Items measured based on the continuous or non-continuous 3rd level fair value,

valuation technique as used, nature of important parameters and quantitative

information

□Applicable √Not applicable

5. Items measured based on the continuous 3rd level fair value, sensitivity analysis on adjusted information and unobservable parameters between the book value at beginning and end of the period

□Applicable √Not applicable

6. In case items measured based on fair value are converted between different levels incurred in the reporting period, state the cause of conversion and determine conversion time point

□Applicable √Not applicable

7. Change of valuation technique incurred in the reporting period and cause of such change

□Applicable √Not applicable

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2023 Annual Report

8. Fair value of financial assets and financial liabilities not measured at fair value

□Applicable √Not applicable

9. Others

□Applicable √Not applicable

XIV. Related parties and transactions

1. About the Parent Company

□Applicable √Not applicable

2. The Company's subsidiaries

Refer to the Notes for details of the Company's subsidiaries

√Applicable □Not applicable

For details of the Company's subsidiaries, please refer to “Section 10. 1 Equity in subsidiaries”.

3. Joint ventures and associates of the Company

Refer to the Notes for details of the Company's major joint ventures or associates

√Applicable □Not applicable

Please refer to Section 10 “VII. 17 Long-term Equity Investments” and “X. 3 Equity in Joint Ventures or Associates” for the important joint ventures or associates of the Company.

Other joint ventures or associates that had related-party transactions with the Company in the reporting period, or had related-party transactions with the Company in the previous period and formed a balance are as follows

√Applicable □Not applicable

√Applicable □Not applicable
Name ofjoint venture or associate	Relationshipwith the Company
Beijing Zhongzhong Travel Technology Co., Ltd.	An associate
Tianjin Jiema Electric Technology Co., Ltd.	An associate in which the controlling shareholder acts as a director

Other notes

□Applicable √Not applicable

4. Other related parties

√Applicable □Not applicable

Names of other related parties	Relationship between other related parties and the Company
Shandong Aidebang Intelligent	Ajoint stock companyof an associate

277

2023 Annual Report

TechnologyCo., Ltd.
Taizhou Aidebang Intelligent TechnologyCo., Ltd.	Subsidiary of a joint stock company of an associate
Tianjin Magic Square Travel TechnologyCo., Ltd.	Subsidiary of an associate
Tianjin Xintai Precision Technology Co., Ltd.	Subsidiary of an associate
Shangqiu Yichong Trading Co., Ltd.	Enterprises controlled by close family members of directors
Shandong Zhidou Automobile Sales Co., Ltd.	Subsidiaries of companies of which the controlling shareholder is a director
Geling New Energy Technology (Shandong)Co., Ltd.	Original associates
Duan Hua	Director 、vice general manager ,the controlling shareholder’s spouse

Other notes:

As of May 31, 2023, the Group acquired an 11% equity interest in Geling New Energy for RMB 9,554,782.42 yuan, holding a total of 60.01% equity interest in Geling New Energy, which was transferred from an associate of the Group to a holding subsidiary of the Group.

5. Related-party transactions

(1) Related-party transactions of purchase and sale of commodities and supply and acceptance of labor services

Statement of purchase of commodities and acceptance of labor services

√Applicable □Not applicable

==> picture [421 x 248] intentionally omitted <==

----- Start of picture text -----

Unit: Yuan (RMB)
Amount of Whether the
Description
Amount incurred approved transaction Amount incurred
Related of
in the reporting transactions (if amount is in the previous
parties related-party
period applicable) exceeded (if period
transactions
applicable)
Tianjin
Purchase of
Jiema
raw
Electric 7,930,676.55 30,000,000.00 No 6,917,694.49
Technology materials 、
service
Co., Ltd
Shandong
Aidebang
Purchase of
Intelligent 1,166,963.01 N/A 53,999,230.71
raw materials
Technology
Co., Ltd.
----- End of picture text -----

278

2023 Annual Report

Taizhou Aidebang Intelligent Technology Co., Ltd.	Purchase of raw materials 、 service	53,487,247.61		N/A	120,959,079.64
Geling New Energy Technology (Shandong) Co., Ltd.	Purchase of raw materials	56,846.20		N/A	24,803,224.66
Shangqiu Yichong Trading Co., Ltd	Purchase of raw materials	37,256,254.81	45,000,000.00	No	18,974,739.23
Tianjin Xintai Precision Technology Co., Ltd	Purchase of raw materials	6,868,850.94		N/A
Total		106,766,839.12			225,653,968.73

Statement of sales of goods/supply of services

√Applicable □Not applicable

Unit: Yuan (RMB)

			Unit: Yuan(RMB)
Related party	Description of related-party transactions	Amount incurred in the reporting period	Amount incurred in the previous period
Tianjin Jiema Electric TechnologyCo., Ltd	Supply of services	897,280.36	400,633.54
Beijing Zhongzhong Travel TechnologyCo., Ltd.	Sales of goods	5,309.73	3,565,572.70
Geling New Energy Technology (Shandong) Co., Ltd.	Sales of goods and supply of services	3,886,720.43	30,758,228.37
Tianjin Magic Square Travel TechnologyCo., Ltd.	Sales of goods	10,318,512.40	1,653,539.83
Total		15,107,822.92	36,377,974.44

Note to related-party transactions of purchase and sale of commodities and supply and acceptance of labor services

√Applicable □Not applicable

As of December 29, 2022, the third meeting of the fifth board of directors of the company

279

2023 Annual Report

decided to consider and adopt the Bill on the Forecast of Daily Related Party Transactions of the Company and Subsidiaries in 2023. For details, please refer to the relevant announcement disclosed on the website of Shanghai Stock Exchange on December 30, 2022.

(2) Related entrusted management/contracted and mandatory management/contracting

Statement of the Company's entrusted management/contracting:

□Applicable √Not applicable

Related entrusted management/contracting

□Applicable √Not applicable

Statement of the Company's entrusted management/outsourcing

□Applicable √Not applicable

Related management/outsourcing

□Applicable √Not applicable

(3) Related-party lease

The Company as lessor:

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Names of lessee	Categories of leasehold properties	Rental income recognised in the reporting period	Rental income recognised in the previousperiod
Tianjin Jiema Electric TechnologyCo., Ltd.	Property lease	8,993,986.50	5,795,080.18
Tianjin Magic Square Travel TechnologyCo., Ltd.	Property lease	4,364.49
Tianjin Xintai Precision TechnologyCo., Ltd	Property lease	756,661.26
Total		9,755,012.25	5,795,080.18

280

2023 Annual Report

The Company as lessee:

√Applicable □Not applicable

		Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Names of lessor	Categories of leasehold properties	Rental charges for streamlined short-term leases and leases of low-value assets (if applicable)		Variable lease payments not included in the measurement of the lease liability (if applicable)		Rent paid		Interest expense on lease liabilities assumed		Increased right-to-use assets
		Amount incurred in the reportin g period	Amount incurred in the previous period	Amount incurred in the reporting period	Amount incurred in the previous period	Amount incurred in the reporting period	Amount incurred in the previous period	Amount incurred in the reporting period	Amount incurred in the previous period	Amount incurred in the reporting period	Amount incurred in the previous period
Duan Hua	Property lease					4,761,904.7 6	4,761,904.7 6	206,224. 30	412,806. 47

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2023 Annual Report

Related lease

□Applicable √Not applicable

(4) Related guarantee

The Company as a guarantor

□Applicable √Not applicable

The Company as a guarantee

□Applicable √Not applicable

Note to related guarantee

□Applicable √Not applicable

(5) Borrowings and lendings among related parties

□Applicable √Not applicable

(6) Assets assignment and liabilities reorganization of related parties

√Applicable □Not applicable

Unit: Yuan (RMB)

			Unit: Yuan(RMB)
Related party	Description of related-party transactions	Amount incurred in the reporting period	Amount incurred in the previous period
Tianjin Jiema Electric TechnologyCo., Ltd	Purchase of fixed assets	372,721.24
Taizhou Aidebang Intelligent Technology Co., Ltd	Purchase of intangible assets	382,300.88
Tianjin Jiema Electric TechnologyCo., Ltd	Sale of fixed assets	26,548.67
Geling New Energy Technology (Shandong)Co., Ltd.	Sale of fixed assets		11,277,349.19

(7) Remuneration to senior executives

√Applicable □Not applicable

Unit: Yuan (RMB)

Items	Amount incurred in the reporting period	Amount incurred in the previousperiod
Remuneration to senior executives	39,257,367.09	54,784,735.46

In 2023, the total remuneration of key management personnel of the Company (including

282

2023 Annual Report

monetary, physical and other forms) was RMB 39,257,367.09 yuan (2022: RMB 54,784,735.46 yuan). Among them, the related expenses of key management personnel corresponding to the total expenses recognized through amortization of share-based payment in the current year are RMB 16,562,409.03 yuan (2022: RMB 28,497,920.00 yuan).

(8) Other related-party transactions

√Applicable □Not applicable

From January to December 2023, the Group received a total dividend of RMB 3,200,000.00 yuan from Tianjin Jiema Electric Technology Co., Ltd. (From January to December 2022: RMB 2,800,000.00 yuan).

Related party	Related party transactions	Amount incurred in the reporting period	Amount incurred in thepreviousperiod
Tianjin Jiema Electric TechnologyCo., Ltd	Dividends	3,200,000.00	2,800,000.00

6. Outstanding accounts receivable from and payable to related parties

(1) Receivables

√Applicable □Not applicable

Unit: Yuan (RMB)

Description	Related party	Endingbalance	Endingbalance	Openingbalance	Openingbalance
		Book balance	Bad debt reserve	Book balance	Bad debt reserve
Prepayment	Taizhou Aidebang Intelligent Technology Co., Ltd	243,116.36
Prepayment	Tianjin Jiema Electric Technology Co., Ltd.			9,469.19
Other receivables	Tianjin Jiema Electric Technology Co., Ltd.	420,563.17		291,482.00
Other receivables	Shandong Zhidou Automobile Sales Co., Ltd	23,567.11
Other	Geling New			4,821,488.81

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2023 Annual Report

receivables	Energy Technology (Shandong) Co., Ltd.
Other receivables	Duan Hua	450,000.00		450,000.00

(5) Payables

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Entry name	Related parties	Ending book balance	Opening book balance
Trade payables	Tianjin Jiema Electric technology Co., Ltd.	43,543.94	1,162,195.26
Trade payables	Taizhou Aidebang Intelligent technologyCo., Ltd.	62,033.43	1,103,656.70
Trade payables	Shangqiu Yichong Trading Co., Ltd.	8,269,086.54	14,031,638.68
Trade payables	Shandong Aidebang Intelligent TechnologyCo., Ltd.	218,650.44	22,567.50
Trade payables	Tianjin Xintai Precision TechnologyCo., Ltd.	4,533,421.33
Trade payables	Geling New Energy Technology (Shandong)Co., Ltd.		1,606,049.08
Contract liabilities	Beijing Zhongzhong Travel TechnologyCo., Ltd.	2,858.22	8,167.96
Contract liabilities	Tianjin Magic Square Travel TechnologyCo., Ltd.	9,192.04	3,729,203.54
Other current liabilities	Beijing Zhongzhong Travel TechnologyCo., Ltd.	371.57	1,061.83
Other current liabilities	Tianjin Magic Square Travel TechnologyCo., Ltd.	1,194.96	484,796.46
Advances from customers	Tianjin Jiema Electric Technology Co., Ltd	2,929,788.26	2,439,875.78
Advances from customers	Tianjin Magic Square Travel TechnologyCo., Ltd.	26,186.93
Advances from customers	Tianjin Xintai Precision TechnologyCo., Ltd.	174,099.21
Other payables	Shangqiu Yichong Trading Co., Ltd.	100,000.00	50,000.00
Other payables	Tianjin Jiema Electric Technology Co., Ltd.	1,073,649.95	1,297,834.33
Otherpayables	Taizhou Aidebang Intelligent	1,521,356.41	1,000,000.00

284

2023 Annual Report

	TechnologyCo., Ltd.
Other payables	Tianjin Magic Square Travel TechnologyCo., Ltd.	8,833.33
Other payables	Tianjin Xintai Precision TechnologyCo., Ltd.	359,050.00
Other payables	Geling New Energy Technology (Shandong)Co., Ltd.		200,000.00
Lease liabilities	Duan Hua		2,353,501.71
Non-current liabilities due within oneyear	Duan Hua	2,353,501.71	4,555,680.46

(3) Other items

□Applicable √Not applicable

7. Related parties’ commitments

□Applicable √Not applicable

8. Others

□Applicable √Not applicable

XV. Share-based payment

1. Equity instruments

√Applicable □Not applicable

Quantity unit: Ten Thousand Shares Unit: Ten Thousand Yuan (RMB)

Grant to Category 2021 restricted stock 2023 stock options Total	Grant in current period	Grant in current period	Current exercise	Current exercise	Unlocked in current period	Unlocked in current period	Expiration of currentperiod	Expiration of currentperiod
	Number	Amount of money	Number	Amount of money	Number	Amount of money	Number	Amount of money
					427.14	3,643.50	12.60	107.48
	716.40	22,337.35
	716.40	22,337.35			427.14	3,643.50	12.60	107.48

Stock options or other equity instruments outstanding at the end of the period

√Applicable □Not applicable

Grant to Category	Outstanding stock options at the end of the period	Outstanding stock options at the end of the period	Other equity instruments outstanding at the end of the period	Other equity instruments outstanding at the end of the period
	Range of exerciseprice	Remaining contractual	Range of exerciseprice	Remaining contractual

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2023 Annual Report

		term		term
2021 restricted stock	8.53 yuan/share	40 months
2023 stock options			31.18 yuan/share	40 months

Other notes

(1) 2023 stock options

The sixth meeting of the fifth board of directors of the Company reviewed and approved the Bill on Granting Stock Options to Incentive Objects of the Stock Option Incentive Plan in 2023, which determined that on April 14, 2023, 4,776,000 stock options were granted to 324 incentive objects at an exercise price of 48.07 yuan per share. On April 19, 2023, the company completed the grant registration of the 2023 stock option incentive plan.

On August 21, 2023, the 12th meeting of the fifth board of directors of the Company considered and approved the Bill on Adjusting the Granting Number and Exercise Price of the Stock Option Incentive Plan in 2023. As the company implemented the equity distribution in 2022, it distributed a cash dividend of 1.304 yuan (including tax) per share, increased 0.5 shares per share with capital reserve, and adjusted the number of shares granted to 7.164 million (10,000 shares) in 2023, The exercise price is adjusted to 31.18 yuan per share.

By the end of the reporting period, the number of stock options granted by the Company in 2023 was 7164000, and the exercise price was 31.18 yuan per share.

(2) 2021 restricted stock

At the 8th meeting of the 5th Board of Directors of the Company, the Proposal on Adjusting the Number of Restricted Stock Incentive Plans Granted and the Repurchase Price in 2021, the Proposal on the Achievements of Removing the Restriction Conditions in the First Release Period of the First Grant of the Restricted Stock Incentive Plan in 2021 and the Proposal on Repurchasing and Cancelling the First Grant of Some Restricted Stocks in the Restricted Stock Incentive Plan in 2021 were considered and approved, Due to the adjustment of equity distribution, the number of restricted stock incentive plans granted in 2021 is 14,364,000 shares and the repurchase price is 8.53 yuan per share; Confirm that the unlocking conditions for the first unlocking period of the first partial grant of the restricted stock incentive plan in 2021 have been met, 97 incentive objects can be unlocked, and the number of unlocked shares is 4,158,000; It is confirmed that 4 incentive objects in the first grant part of the restricted stock incentive plan in 2021 have resigned for personal reasons and no longer qualify as incentive objects, and the Company will repurchase and cancel the total 126,000 restricted shares that have been

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granted but not yet lifted. On June 1, 2023, the restricted stock incentive plan in 2021 granted 4,158,000 shares in the first unlocking period for the first time to be unlocked and listed and circulated. On July 27, 2023, the Company completed the repurchase and cancellation procedures of 126,000 restricted shares of four incentive objects in the first grant part of the restricted stock incentive plan in 2021.

On August 21, 2023, the twelfth meeting of the fifth board of directors of the Company deliberated and approved the Bill on the Achievements of Unlocking Conditions for the First Unlocking Period of the Reserved Grant Part of the Restricted Stock Incentive Plan in 2021, confirming that the unlocking conditions for the first unlocking period of the reserved grant part of the Restricted Stock Incentive Plan in 2021 were achieved, 14 incentive objects could be unlocked, and the number of unlocked shares was 113,400. On August 28, 2023, 113,400 shares reserved for the first unlocking period of the restricted stock incentive plan in 2021 were unlocked for listing and circulation.

As at the end of the reporting period, the number of restricted shares granted by the Company in 2021 was 9,966,600, of which 9,702,000 shares were granted for the first time and 264,600 shares were reserved for grant.

2. About the equity-settled share-based payment

√Applicable □Not applicable

Unit: Yuan (RMB)

Equity settled share-based payment objects	2021 restricted stock	2023 stock options
Method of determining the fair value of equity instruments at the date of grant	Closing price on grant date	Black-Scholes model, underlying stock price: 60.00 yuan/share
Important parameters of fair value of equity instruments at grant date	N/A	Historical volatility: 15.8036%, 15.3278% and 16.3715% Risk-free interest rate: 1.50%, 2.10%, 2.75%
Basis for determining the number of vested equity instruments	Best estimate of expected vesting at the end of theyear	Best estimate of expected vesting at the end of the year
Reasons for significant differences between current period estimates andpriorperiod estimates	N/A	N/A
Accumulated amount of equity-settled share-based payment included in capital reserve	131,696,934.06	19,132,905.86

Other notes

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2023 Annual Report

None

3. About the cash-settled share-based payment

□Applicable √Not applicable

1、 4. Share-based payment expenses of the current period

√Applicable □Not applicable

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Grant to Category	Equity settled share-based payment expenses	Cash settled share-based payment expenses
Productionpersonnel	797,204.42
Salesman	16,533,973.00
Management	32,460,671.66
Research and development personnel	20,377,082.90
Total	70,168,931.98

Other notes

As the Company's operating income in 2023 and net profit attributable to shareholders of listed companies after excluding the impact of equity incentives did not meet the Company level performance assessment requirements in the first exercise period set by the 2023 stock option equity incentive plan, the accrued cost of stock option incentives in 2023 was 17.7377 million yuan.

5. Correction and termination of share-based payment

□Applicable √Not applicable

6. Others

√Applicable □Not applicable

On April 15, 2024, the 21st meeting of the fifth board of directors of the Company considered and adopted the Bill on Adjusting the Exercise Price of the 2023 Stock Option Incentive Plan. As the Company implements the semi-annual equity distribution in 2023, it distributes a cash dividend of 0.348 yuan per share (including tax), and the exercise price of the 2023 stock option incentive plan is adjusted to 30.83 yuan per share accordingly.

XVI. Commitments and contingencies

1. Important commitments

√Applicable □Not applicable

Important external commitments, the nature and the amount existing as at the balance sheet date

Items	December 31, 2023	December 31, 2022
Capital commitments with contract	1,641,661,780.44	68,081,624.42

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signed but not yet provided

2. Contingencies

(1) Significant contingencies existing as at the balance sheet date

□Applicable √Not applicable

(2) The Company had no important contingencies unnecessary to be disclosed but necessary to be explained

□Applicable √Not applicable

3. Others

□Applicable √Not applicable

XVII. Events after the balance sheet date

1. Module: Significant non-adjustment events

□Applicable √Not applicable

2. Profit distribution

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Profit or dividend to be distributed	452,722,253.92
Profit or dividend announced to be distributed after review and approval	452,722,253.92

The Company held the 21st meeting of the 5th Board of Directors at which a preplan for profit distribution in 2023 was approved. According to the preplan, the Company was to distribute profits based on the total share capital registered on the date of equity distribution and equity registration minus the shares in the special securities account for repurchase. The profit distribution plan is to distribute a cash dividend of RMB 5.34 yuan (including tax) per 10 shares to all shareholders. As of December 31, 2023, the total share capital of the Company was 861,925,007 shares, and the base after deducting 14,130,524 shares in the special securities account for repurchase of the Company was 847,794,483 shares, so as to calculate the cash dividend to be distributed this time of RMB 452,722,253.92 yuan (including tax).

If, from the date of disclosure of this announcement to the date of equity distribution registration, the number of shares in the company's total share capital or special securities account for repurchase changes due to convertible bond conversion, share repurchase, use of repurchased shares to grant restricted shares for equity incentives, repurchase and cancellation of shares granted for equity incentives, repurchase and cancellation of shares for major asset restructuring, etc., the company intends to maintain the distribution ratio per share unchanged and adjust the total distribution accordingly.

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2023 Annual Report

3. Sales return

□Applicable √Not applicable

4. Note other post balance sheet events

√Applicable □Not applicable

Stock option incentive plan

On February 29, 2024, the Company held the first extraordinary general meeting of 2024 to consider and approve the proposal on the Stock Option Incentive Plan for 2024 (Draft) and its summary, and the proposal on the Management Measures for the Implementation Evaluation of the Stock Option Incentive Plan for 2024. According to the resolution of the general meeting of the Company, the total number of incentive objects granted by the Company was 204, the number of stock options granted was 13.70 million with the exercise price of RMB 12.61 yuan per share. The incentive plan is valid for a maximum of 48 months from the date of stock option grant to the date of exercise or cancellation of all the stock options granted to the incentive objects.

XVIII. Other significant events

1. Correction of the accounting errors in the previous period

(1) Retroactive restatement

□Applicable √Not applicable

(2) Prospective application method

□Applicable √Not applicable

2. Significant liabilities restructuring

□Applicable √Not applicable

3. Replacement of assets

(1) Non-monetary assets exchange

□Applicable √Not applicable

(2) Other assets exchange

□Applicable √Not applicable

4. Annuity plan

□Applicable √Not applicable

5. Operation termination

□Applicable √Not applicable

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6. Segment information

(1) Basis for determining the reporting segments and accounting policy

□Applicable √Not applicable

(2) Financial information of the reporting segments

□Applicable √Not applicable

(3) In case there is no reporting segment or the total assets and liabilities of the reporting segments cannot be disclosed, explain the reason

√Applicable □Not applicable

The Company is mainly engaged in the electric two-wheelers business, and the assets related to the services supply are located in China. In terms of internal organizational structure and management requirements, the Company takes the Company's businesses as a whole to review internal reports, allocate resources and performance assessment. Therefore, except the information already presented in the financial statements, there is no other segment information necessary to be presented.

(4) Other notes

√Applicable □Not applicable

Geographical information: The vast majority of the Company's foreign transaction revenue comes from domestic sources. The Company's non-current assets (excluding financial assets and deferred income tax assets) are all located in China.

In 2023, the Company did not generate more than 10% of its operating revenues from a single customer.

7. Other significant transactions and matters that may affect investors' decision making

□Applicable √Not applicable

8. Others

□Applicable √Not applicable

XIX. Notes to the parent company’s financial statements

1. Accounts receivable

(1) Disclosed based on aging

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Aging	Endingbook balance	Openingbook balance
Within 1year
Where: Itemized within 1year
Within 1year	136,823,141.44	132,394,484.26

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Sub-total within 1year	136,823,141.44	132,394,484.26
1 to 2years	11,048,467.93	4,491,535.52
2 to 3years	1,093,745.55	138,725.00
Over 3years	108,695.20
Total	149,074,050.12	137,024,744.78

(2) Classified disclosure based on the method of provision for bad debt

√Applicable □Not applicable

Unit: Yuan (RMB)

						Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Categories	Endingbalance Book balance Bad debt reserve Book value Amount Proportion (%) Amount Provision proportion (%)					Openingbalance
			Bad debt reserve		Book value	Book balance		Bad debt reserve		Book value
		Proportion (%)	Amount	Provision proportion (%)		Amount	Proportio n (%)	Amount	Provision proportion (%)
Assessed bad deb provision individually	t 3,176,31 7.65	2.13	3,176,31 7.65	100.00		32,471, 486.51	23.70	3,176,31 7.65	9.78	29,295,16 8.86
Where:
Individual provision for ba debts	d 3,176,31 7.65	2.13	3,176,31 7.65	100.00		32,471, 486.51	23.70	3,176,31 7.65	9.78	29,295,16 8.86
Assessed bad deb provision i portfolio	t n 145,897, 732.47	97.87	3,749,41 1.65	2.57	142,148, 320.82	104,553 ,258.27	76.30	1,557,14 6.17	1.49	102,996,1 12.10
Where:
Portfolios based o credit ris characteris ics	n k t 145,897, 732.47	97.87	3,749,41 1.65	2.57	142,148, 320.82	104,553 ,258.27	76.30	1,557,14 6.17	1.49	102,996,1 12.10
Total	149,074, 050.12	100.00	6,925,72 9.30	/	142,148, 320.82	137,024 ,744.78	100.00	4,733,46 3.82	/	132,291,2 80.96

Individual provision for bad debts:

√Applicable □Not applicable

Unit: Yuan (RMB)

	Name	Endingbalance	Endingbalance	Endingbalance	Endingbalance
		Book balance	Bad debt provision	Provision proportion	Provision reason

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2023 Annual Report

			(%)
Suning Procurement Center of Suning Tesco Group Co., Ltd.	3,176,317.65	3,176,317.65	100.00	Less likely to be recovered
Total	3,176,317.65	3,176,317.65	100.00	/

Notes to the provision for bad debts by individual items:

□Applicable √Not applicable

Provision for bad debts based on portfolio:

√Applicable □Not applicable

Provision items on portfolio: Provision for bad debts recognised based on the portfolio of credit risk characteristics

	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Name	Endingbalance
	Accounts receivable	Bad debt provision	Provision proportion (%)
Within 1year	136,820,462.44	1,692,649.20	1.24
1 to 2years	7,874,829.28	1,410,381.93	17.91
2 to 3years	1,093,745.55	537,685.32	49.16
Over 3years	108,695.20	108,695.20	100.00
Total	145,897,732.47	3,749,411.65	2.57

Notes to recognition of provision for bad debts based on portfolio:

□Applicable √Not applicable

Provision for bad debt is accrued in accordance with the general model of expected credit loss

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

N/A

Description of significant changes in the book balance of accounts receivable with changes in loss provision in the current period:

□Applicable √Not applicable

(3) Provision for bad debts

√Applicable □Not applicable

Unit: Yuan (RMB)

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2023 Annual Report

Categories	Opening balance	Amount of movement duringthe reporting period	Amount of movement duringthe reporting period	Amount of movement duringthe reporting period	Amount of movement duringthe reporting period	Ending balance
		Provision	Recovery or reversal	Charge-off or write-off	Other changes
Provision for bad debts	4,733,463. 82	2,633,926.1 5	390,692.59	50,968.08		6,925,729.3 0
Total	4,733,463. 82	2,633,926.1 5	390,692.59	50,968.08		6,925,729.3 0

Where the significant amount of the reserve for bad debt recovered or reversed:

□Applicable √Not applicable

Other notes

None

(4) Accounts receivable actually written off in the reporting period

□Applicable √Not applicable

Where, the important accounts receivable written-off

□Applicable √Not applicable

Notes to accounts receivable written-off

□Applicable √Not applicable

(5) Accounts receivable and contract assets owed by the top five debtors based on the ending balance

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Organization name	Ending balance of trade receivables	Ending balance of contract assets	Ending balance of trade receivables and contract assets	Proportion in total ending balance of accounts receivable (%)	Ending balance of the provision for bad debts
Company1	10,710,300.18		10,710,300.18	7.18	154,228.32
Company2	9,768,930.86		9,768,930.86	6.55	140,672.60
Company3	8,478,929.97		8,478,929.97	5.69	1,798,681.54
Company4	8,258,026.01		8,258,026.01	5.54	118,915.57
Company5	4,168,579.22		4,168,579.22	2.80	60,027.54
Total	41,384,766.24		41,384,766.24	27.76	2,272,525.57

Other Notes

None

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2023 Annual Report

Other Notes:

□Applicable √Not applicable

2. Other receivables

Items Presentation

√Applicable □Not applicable

Unit: Yuan (RMB)

		Unit: Yuan(RMB)
Items	Endingbalance	Openingbalance
Interest receivables	415,312.11	350,530.03
Dividends receivable
Other receivables	1,710,924,896.85	68,356,060.43
Total	1,711,340,208.96	68,706,590.46

Other notes:

□Applicable √Not applicable

Interest receivables

(1) Classification of interest receivable

√Applicable □Not applicable

Unit: Yuan (RMB)

	Unit: Yuan(RMB)
Endingbalance	Openingbalance
415,312.11	350,530.03
415,312.11	350,530.03

(2) Significant overdue interest

□Applicable √Not applicable

(3) Classified disclosure by bad debt provision method

□Applicable √Not applicable

Individual provision for bad debts:

□Applicable √Not applicable

Description of individual provision for bad debts:

□Applicable √Not applicable

Provision for bad and doubtful debts based on portfolio:

□Applicable √Not applicable

(4) If the provision for bad debt is accrued in accordance with the general model of expected credit loss

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2023 Annual Report

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

N/A

Description of significant changes in the book balance of interest receivables with changes in loss provision in the current period:

□Applicable √Not applicable

(5) Provision for bad debts

□Applicable √Not applicable

Among them, the amount of bad debt provision recovered or reversed in the current period is significant:

□Applicable √Not applicable

Other notes:

None

(6) Interest receivables actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of Interest receivables:

□Applicable √Not applicable

Interest receivables write-off description:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Dividend receivable

(1) Dividend receivable

□Applicable √Not applicable

(2) Significant dividends receivable with age exceeding 1 year

□Applicable √Not applicable

(3) Classified disclosure by bad debt provision method

□Applicable √Not applicable

Individual provision for bad debts:

□Applicable √Not applicable

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2023 Annual Report

Description of individual provision for bad debts:

□Applicable √Not applicable

Provision for bad and doubtful debts based on portfolio:

□Applicable √Not applicable

(4) If the provision for bad debt is accrued in accordance with the general model of expected credit loss

□Applicable √Not applicable

Classification basis of each stage and provision ratio for bad debts

None

Description of significant changes in the book balance of dividend receivables with changes in loss provision in the current period:

□Applicable √Not applicable

(5) Provision for bad debts

□Applicable √Not applicable

Among them, the amount of bad debt provision recovered or reversed in the current period is significant:

□Applicable √Not applicable

Other notes:

None

(6) Dividend receivables actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of dividend receivables:

□Applicable √Not applicable

Dividend receivables write-off description:

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

Other receivables

(1) Disclosed based on aging

√Applicable □Not applicable

Unit: Yuan (RMB)

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2023 Annual Report

Aging	Endingbook balance	Openingbook balance
Within 1year
Where: Itemized within 1year
Within 1year	1,687,264,600.01	67,617,489.04
Sub-total within 1year	1,687,264,600.01	67,617,489.04
1 to 2years	23,157,493.30	137,476.89
2 to 3years	10,000.00	32,000.00
Over 3years	522,003.54	579,394.50
Total	1,710,954,096.85	68,366,360.43

(2) Classification based on the nature of fund

□Applicable √Not applicable

(3) Provision for bad debts

√Applicable □Not applicable

	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Bad debt provision	Stage 1	Stage 2	Stage 3	Total
	12-month Expected Credit losses	Lifetime Expected Credit losses (no credit impairment incurred)	Lifetime expected credit losses (credit impairment already incurred)
Balance as at January 1, 2023	10,300.00			10,300.00
Balance as at January 1, 2023 in the reporting period
-- Transferred into Stage 2
-- Transferred into Stage 3
-- Revered to Stage 2
-- Reversed to Stage 1
Accrual	18,900.00			18,900.00
Reversal
Transfer out
Write-off
Other changes
Balance as at December 31, 2023	29,200.00			29,200.00

Classification basis of each stage and provision ratio for bad debts

N/A

Note to the significant changes in the book balance of other receivables with changes in provision for loss in the reporting period:

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2023 Annual Report

□Applicable √Not applicable

The amount of provision for bad debts in the reporting period and the basis for assessing whether the credit risk of financial instruments has increased significantly

□Applicable √Not applicable

(4) Provision for bad debts

√Applicable □Not applicable

Unit: Yuan (RMB)

Categories	Opening balance	Amount of movement during the reporting period	Amount of movement during the reporting period	Amount of movement during the reporting period	Amount of movement during the reporting period	Ending balance
		Provision	Recovery or reversal	Charge-off or write-off	Other changes
Bad debt provision	10,300.00	18,900.00				29,200.00
Total	10,300.00	18,900.00				29,200.00

Where a significant amount of the reserve for bad debt recovered or reversed during the reporting period:

□Applicable √Not applicable

Other notes

None

(5) Other receivables actually written off in the reporting period

□Applicable √Not applicable

Significant write-off of other receivables:

□Applicable √Not applicable

Description of write-off of other receivables:

□Applicable √Not applicable

(6) Other receivables owed by the top five debtors based on the ending balance

√Applicable □Not applicable

Unit: Yuan (RMB)

Organization name	Ending balance	Proportion in total ending balance of other receivables	Nature of Payment	Aging	Closing balance of Provision for bad debts
Company1	1,484,812,105.66	86.78	Intercompany	Within 1

299

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			borrowings	year
Company 2	98,000,000.00	5.73	Intercompany borrowings	Within 1 year and 1 to 2 y ears
Company 3	83,000,000.00	4.85	Intercompany borrowings	Within 1 year
Company 4	15,000,000.00	0.88	Intercompany borrowings	1 to 2 years
Company 5	12,686,756.67	0.74	Intercompany accounts	Within 1 year
Total	1,693,498,862.33	98.98	/	/

(7) Presentation in other receivables due to centralized management of funds

□Applicable √Not applicable

Other notes:

□Applicable √Not applicable

3. Long-term equity investments

√Applicable □Not applicable

	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Items	Endingbalance			Openingbalance
	Book balance	Provision for impairme nt	Book value	Book balance	Provision for impairme nt	Book value
Investment in subsidiarie s	1,110,377,202.6 7		1,110,377,202.6 7	1,102,205,042.4 6		1,102,205,042.4 6
Investment in associates and joint ventures				38,817,295.52		38,817,295.52
Total	1,110,377,202.6 7		1,110,377,202.6 7	1,141,022,337.9 8		1,141,022,337.9 8

(1) Investment in subsidiaries

√Applicable □Not applicable

300

2023 Annual Report

Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)	Unit: Yuan(RMB)
Investees	Opening balance	Increase in the reporting period	Decrease in the reporting period	Ending balance	Provision for impairme nt in the reporting period	Ending balance of the provision for impairme nt
Aima Nanfang	100,000,000.00		100,000,000. 00
Aima Chongqin g	866,070,335.76	38,072,730.4 2		904,143,066.18
Henan Vehicle	5,676,019.01	-		5,676,019.01
Guangdon gVehicle	2,838,009.50	-		2,838,009.50
Guangxi Vehicle	-	1,419,004.75		1,419,004.75
Zhejiang Vehicle	2,838,009.50	-		2,838,009.50
Tianjin Vehicle	9,933,033.27	-		9,933,033.27
Aima Venture Capital	92,329,028.97	869,285.82		93,198,314.79
Tianjin Sports	10,356,223.96	1,426,723.40		11,782,947.36
Suiwanwa n	2,275,022.49	75,685.32		2,350,707.81
Super Universe	9,888,260.00	7,998,136.36		17,886,396.36
Suoteng Technolog y	1,100.00	58,310,594.1 4		58,311,694.14
Total	1,102,205,042. 46	108,172,160. 21	100,000,000. 00	1,110,377,202. 67

(2) Investment in associates and joint ventures

√Applicable □Not applicable

Unit: Yuan (RMB)

Investmen t in:	Opening balance	Increase/ decrease(+ / -)in the reporting period	Increase/ decrease(+ / -)in the reporting period	Increase/ decrease(+ / -)in the reporting period	Increase/ decrease(+ / -)in the reporting period	Increase/ decrease(+ / -)in the reporting period	Increase/ decrease(+ / -)in the reporting period	Increase/ decrease(+ / -)in the reporting period	Increase/ decrease(+ / -)in the reporting period	Endin g	Ending balance of
		Incr	Dec	Investment	Other	Other	Cash	Provision	Oth

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		eas e	reas e	Income under the equity method	compre hensive income	equity move ment	divide nd declar ed	for impairme nt	ers	balan ce	the provision for impairment
I. Joint venture
Sub-total
II. Associates
Taizhou Jinfu	38,817,295.52			-38,817,295.52
Sub-total	38,817,295.52			-38,817,295.52
Total	38,817,295.52			-38,817,295.52

(3) Impairment test of long-term equity investments

□Applicable √Not applicable

Other notes:

None

4. Operating revenue and costs

(1) Operating revenue and costs

√Applicable □Not applicable

Items Primary business Other businesses Total	Unit: Yuan(RMB) Amount incurred in the reporting period Amount incurred in the previous period Income Cost Income Cost 8,141,955,276.7 4 7,696,852,769. 18 8,032,042,197.5 9 7,464,933,212 .00 212,797,399.54 177,274,672.96 231,734,878.05 194,420,927.0 2 8,354,752,676.2 8 7,874,127,442. 14 8,263,777,075.6 4 7,659,354,139 .02	Unit: Yuan(RMB) Amount incurred in the reporting period Amount incurred in the previous period Income Cost Income Cost 8,141,955,276.7 4 7,696,852,769. 18 8,032,042,197.5 9 7,464,933,212 .00 212,797,399.54 177,274,672.96 231,734,878.05 194,420,927.0 2 8,354,752,676.2 8 7,874,127,442. 14 8,263,777,075.6 4 7,659,354,139 .02	Unit: Yuan(RMB) Amount incurred in the reporting period Amount incurred in the previous period Income Cost Income Cost 8,141,955,276.7 4 7,696,852,769. 18 8,032,042,197.5 9 7,464,933,212 .00 212,797,399.54 177,274,672.96 231,734,878.05 194,420,927.0 2 8,354,752,676.2 8 7,874,127,442. 14 8,263,777,075.6 4 7,659,354,139 .02	Unit: Yuan(RMB) Amount incurred in the reporting period Amount incurred in the previous period Income Cost Income Cost 8,141,955,276.7 4 7,696,852,769. 18 8,032,042,197.5 9 7,464,933,212 .00 212,797,399.54 177,274,672.96 231,734,878.05 194,420,927.0 2 8,354,752,676.2 8 7,874,127,442. 14 8,263,777,075.6 4 7,659,354,139 .02
	Amount incurred in the reporting period		Amount incurred in the previous period
	Income	Cost	Income	Cost
	8,141,955,276.7 4	7,696,852,769. 18	8,032,042,197.5 9	7,464,933,212 .00
	212,797,399.54	177,274,672.96	231,734,878.05	194,420,927.0 2
	8,354,752,676.2 8	7,874,127,442. 14	8,263,777,075.6 4	7,659,354,139 .02

(1). (2) Breakdown of operating income and operating cost

√Applicable □Not applicable

Unit: Yuan (RMB)

Unit: Yuan(RMB)
Contract classification	Total
	Business income	Operatingcosts
CommodityType
Revenue from electric two-wheelers, electric tricycle, bicycles and accessories	8,141,955,276.74	7,696,852,769.18
Rental income	20,839,493.37	17,390,429.26

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Other income	191,957,906.17	159,884,243.70
Classification byregion of operation
Chinese Mainland	8,314,180,504.64	7,839,544,341.37
Other countries or regions	40,572,171.64	34,583,100.77
Classification bytime ofgoods transfer
Transfer at apoint in time	8,333,913,182.91	7,856,737,012.88
Transferred over aperiod of time	20,839,493.37	17,390,429.26
Total	8,354,752,676.28	7,874,127,442.14

Other notes

□Applicable √Not applicable

(2). (3) Notes to performance obligations

√Applicable □Not applicable

Unit: Yuan (RMB)

Project	Timing of performanc e obligations	Significant payment terms	The nature of the goods the company undertakes to transfer	Whether it is the main responsible person	Amounts assumed by the company that are expected to be refunded to customers	Types of quality assurance provided by the company and related obligations
Contract liabilities	When goods are delivered to a customer	The contract price is generally due upon delivery of the goods and receipt of the invoice	Electric two-wheele rs, electric tricycle, etc.	Yes	0	Quality assurance
Provision of services	When providing services	Advance receipts	Aftersales extension	Yes	0	None
Total	/	/	/	/	0	/

(4) Notes to apportioning to the residual performance obligations

√Applicable □Not applicable

At the end of the reporting period, the revenue corresponding to the performance obligations that have been signed but have not been fulfilled or have not been fulfilled is 52,994,109.92 yuan, of which:

52,994,109.92 yuan is expected to be recognized as revenue in 2024

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(5) Significant contract changes or significant transaction price adjustments

□Applicable √Not applicable

Other notes:

None

5. Investment income

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Items	Amount incurred in the reporting period	Amount incurred in thepreviousperiod
Long-term equity investment income under the cost method	1,613,828,214.80	666,500,000.00
Long-term equity investment income under the equitymethod	-38,817,295.52	-30,086,884.58
Return on investment from financial products	1,260,400.00	-54,407.60
Gains from disposal of long-term equity investment		11,346,684.29
Total	1,576,271,319.28	647,705,392.11

Other notes:

None

6. Others

□Applicable √Not applicable

XX. Supplementary information

1. Statement of non-recurring gain or losses in the reporting period

√Applicable □Not applicable

√Applicable □Not applicable	√Applicable □Not applicable
Unit: Yuan(RMB)
Items	Amount
Profit or loss from disposal of non- current assets, including the write-off ofprovision for asset impairment	-5,102,906.88
Government grants recognized in during profit or loss (excluding those having close relationship with the Company’s normal business, conforming to the national policies and regulations and enjoying ongoingfixed amount orquantityaccordingto certain standard)	148,273,316.15
Profit or loss arising from changes in fair value of financial assets and financial liabilities held by non-financial entities, and profit or loss arising from disposal of financial assets and financial liabilities, except for effective hedging activities related to the Company’s normal	-17,226,650.77

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business operations
Write back of the impairment provision for receivables that have been individuallytested for impairment	3,439.63
Gains arising when the investment cost in acquiring subsidiaries, associates, and joint ventures was less than the fair value of the identifiable net assets at the time of investment	99,502.54
Non-operatingincome or expenses other than the above items	18,838,780.52
Other gain or loss in compliance with the definition of non-recurring gain or loss	5,994,200.26
Less: Amount affected bythe income tax	34,159,727.30
Affected amount of minorityshareholders’ equity (after tax)	72,171.19
Total	116,647,782.96

If the Company identifies items not listed in Explanatory Announcement No.1 on Information Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss as non-recurring profit and loss items and the amount is significant, and defines non-recurring profit and loss items listed in Explanatory Announcement No.1 on Information Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss as recurring profit and loss items, the reasons shall be explained.

□Applicable √Not applicable

Other notes

□Applicable √Not applicable

2. ROE and EPS

√Applicable □Not applicable

√Applicable □Not applicable
Profit in the reporting period	Net return on equity, weighted average (%)	Earningsper share
		Basic earnings per share	Diluted earnings per share
Net profit attributable to owners of the parent	25.40	2.20	2.12
Net profit attributable to owners of the parent excluding non-recurring gains or losses	24.01	2.06	1.99

3. Difference in the Accounting Data based respectively on the Chinese Accounting Standards (CAS) and International Accounting Standards (IAS)

□Applicable √Not applicable

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4. Others

□Applicable √Not applicable

Chairman of the Board: Zhang Jian The Report was approved by the Board of Directors. Date of the submission 4/15/2024

Revision information

□Applicable √Not applicable

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