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CALB Group Co., Ltd.

中創新航科技集團股份有限公司

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 3931)

ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025

The board (the "Board") of directors (the "Directors") of CALB Group Co., Ltd. (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively, the "Group", "CALB", "we" or "us") for the year ended 31 December 2025 (the "Reporting Period"), together with the comparative figures for the year ended 31 December 2024, as follows:

FINANCIAL SUMMARY

The revenue of the Group increased by 60.0% from RMB27,751.53 million for the year ended 31 December 2024 to RMB44,400.07 million for the year ended 31 December 2025.

The profit of the Group for the year increased by 148.4% from RMB843.63 million for the year ended 31 December 2024 to RMB2,095.22 million for the year ended 31 December 2025.

The basic earnings per share of the Group increased by 149.6% from RMB0.3336 for the year ended 31 December 2024 to RMB0.8326 for the year ended 31 December 2025.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2025

	Note	2025 RMB’000	2024 RMB’000
Revenue	4	44,400,067	27,751,526
Cost of sales		(36,988,116)	(23,341,632)
Gross profit		7,411,951	4,409,894
Investment and other income	5	333,611	357,560
Other losses, net	6	(251,616)	(139,021)
Selling expenses		(777,434)	(615,974)
Administrative expenses		(1,484,457)	(1,257,403)
Research and development expenses		(2,142,560)	(1,417,611)
Reversal of impairment losses/(impairment losses) on trade and bills receivables		3,951	(91,058)
Reversal of impairment losses/(impairment losses) on prepayments, deposits and other receivables		32,320	(40,987)
Profit from operations		3,125,766	1,205,400
Finance costs	8	(854,596)	(415,116)
Share of losses of associates		(819)	(85)
Profit before tax		2,270,351	790,199
Income tax (expense)/credit	9	(175,128)	53,427
Profit for the year	10	2,095,223	843,626
Attributable to:
Owners of the Company		1,475,632	591,196
Non-controlling interests		619,591	252,430
		2,095,223	843,626
Earnings per share	12
Basic (RMB per share)		0.8326	0.3336
Diluted (RMB per share)		0.8326	0.3336

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Profit for the year | 2,095,223 | 843,626 |
| Other comprehensive income/(expense): | | |
| Item that will not be reclassified to profit or loss: | | |
| Fair value changes of equity instruments at fair value through
other comprehensive income (FVTOCI) | 95,025 | (76,423) |
| Item that may be reclassified to profit or loss: | | |
| Exchange differences on translating foreign operations | (4,698) | 1,570 |
| Other comprehensive income/(expense) for the year, net of tax | 90,327 | (74,853) |
| Total comprehensive income for the year | 2,185,550 | 768,773 |
| Attributable to: | | |
| Owners of the Company | 1,565,959 | 516,343 |
| Non-controlling interests | 619,591 | 252,430 |
| | 2,185,550 | 768,773 |

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 DECEMBER 2025

	Note	2025	2024
		RMB'000	RMB'000
Non-current assets
Property, plant and equipment		91,803,586	81,005,464
Right-of-use assets		2,469,276	1,749,505
Goodwill		137,956	-
Intangible assets		2,118,814	1,480,521
Investments in associates		359,959	16,109
Other financial assets		2,241,924	829,152
Deposits paid for acquisition of property, plant and equipment		1,142,603	993,795
Deferred tax assets		763,521	793,450
		101,037,639	86,867,996
Current assets
Inventories		7,163,551	5,263,435
Trade and bills receivables	13	14,964,655	8,414,300
Prepayments, deposits and other receivables		8,175,971	7,455,596
Amounts due from related parties		-	201,399
Other financial assets		5,019,239	1,834,516
Current tax assets		3,186	185
Pledged bank deposits		2,552,680	3,377,123
Restricted bank balances		508	280
Bank and cash balances		9,637,699	9,058,553
		47,517,489	35,605,387
Current liabilities
Trade and bills payables	14	27,036,648	19,486,536
Accruals and other payables		6,866,909	6,779,961
Contract liabilities		329,736	141,294
Bond payables		11,441	-
Amounts due to related parties		25,658	27,250
Lease liabilities		385,519	31,463
Bank borrowings		25,108,122	18,960,089
Provisions		311,608	122,660
Financial guarantee		143,567	34,563
Current tax liabilities		71,092	485
		60,290,300	45,584,301
Net current liabilities		(12,772,811)	(9,978,914)
Total assets less current liabilities		88,264,828	76,889,082

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Non-current liabilities | | |
| Bond payables | 1,900,000 | - |
| Deferred income | 338,124 | 297,907 |
| Lease liabilities | 648,596 | 69,137 |
| Bank borrowings | 30,247,028 | 27,156,291 |
| Provisions | 1,520,911 | 1,303,117 |
| Deferred tax liabilities | 153,560 | 8,705 |
| | 34,808,219 | 28,835,157 |
| NET ASSETS | 53,456,609 | 48,053,925 |
| Capital and reserves | | |
| Equity attributable to owners of the Company | | |
| Share capital | 1,772,302 | 1,772,302 |
| Reserves | 34,966,643 | 33,411,542 |
| | 36,738,945 | 35,183,844 |
| Non-controlling interests | 16,717,664 | 12,870,081 |
| TOTAL EQUITY | 53,456,609 | 48,053,925 |

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2025

GENERAL INFORMATION

CALB Group Co., Ltd. (中創新航科技集團股份有限公司) is a joint stock limited company registered in the People's Republic of China (the "PRC"). The Company's H-shares have been listed on The Stock Exchange of Hong Kong Limited since 6 October 2022. The address of its registered office and its principal place of business is No. 1 Jiangdong Avenue, Jintan District, Changzhou City, Jiangsu Province, the PRC.

The Company has been engaging in the design, research and development, production and sales of EV batteries and ESS products.

BASIS OF PREPARATION

These consolidated financial statements have been prepared in accordance with all applicable IFRS Accounting Standards issued by the International Accounting Standards Board (the "IASB"). IFRS Accounting Standards comprise International Financial Reporting Standards ("IFRS"); International Accounting Standards ("IAS"); and Interpretations. These consolidated financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on the Stock Exchange and with the disclosure requirements of the Hong Kong Companies Ordinance (Cap. 622).

As at 31 December 2025, the Group had net current liabilities of approximately RMB12,773 million. Bank and cash balances totalled approximately RMB9,638 million, while total outstanding bank borrowings and bond payables amounted to approximately RMB57,267 million, with approximately RMB25,120 million due within one year.

Additionally, the Group has capital commitments of approximately RMB11,297 million at the end of reporting period which are mostly expected to be fulfilled within the next 18 months.

Notwithstanding the above events and conditions, the directors of the Company (the "Directors") had adopted the going concern basis in the preparation of these consolidated financial statements of the Group on the grounds including but not limited to the following:

(a) The Group's financial budget and production planning project increasing production volume and revenue in upcoming year, thereby anticipating improvements in operating cash inflow;

(b) The Group had sufficient committed banking facilities at the end of reporting period available to meet the operating requirements and foreseeable future capital investment requirements;

(c) Management expects the Group will successfully arrange the rolling-over of existing banking facilities and secure additional banking facilities, providing sufficient funding for the Group's operating and capital investment needs; and

(d) Taking the above into consideration, the Directors have reviewed a comprehensive cashflow forecast of the Group for not less than twelve months from 31 December 2025 prepared by management for the purpose of assessing the Group's working capital and banking facilities requirements. Based on this assessment, the Directors concluded that there are no material uncertainties related to events and conditions which, individually or collectively, may cast significant doubt on the Group's ability to continue as a going concern.

Therefore, the Directors are of the view that it is appropriate to adopt the going concern basis when preparing these consolidated financial statements.

3. ADOPTION OF NEW AND REVISED IFRS ACCOUNTING STANDARDS

(a) Application of new and revised IFRS Accounting Standards

The Group has applied the following new and amendments to IFRS Accounting Standards issued by the IASB for the first time, which are mandatorily effective for the annual period beginning on or after 1 January 2025 for the preparation of the consolidated financial statements:

Amendments to IAS 21 and IFRS 1
Lack of Exchangeability

Amendments to IAS 21 “Lack of Exchangeability”

The amendments specify when a currency is exchangeable into another currency and when it is not and how an entity estimates the spot exchange rate when a currency is not exchangeable. In addition, the amendments require disclosure of information that enables users of its financial statements to evaluate how a currency’s lack of exchangeability affects, or is expected to affect, the entity’s financial performance, financial position and cash flows.

The application of the amendments did not have any material impact on the financial position and performance of the Group.

(b) New and revised IFRS Accounting Standards in issue but not yet effective

Up to the date of issue of these consolidated financial statements, the IASB has issued a number of new standards and amendments to standards, which are not effective for the year ended 31 December 2025 and which have not been adopted in these financial statements. The Group has not early applied the following which may be relevant to the Group:

Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments	1 January 2026
Annual Improvements to IFRS Accounting Standards – Volume 11	1 January 2026
IFRS 18 – Presentation and Disclosure in Financial Statements	1 January 2027
IFRS 19 – Subsidiaries without Public Accountability: Disclosures	1 January 2027
Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	To be determined by the IASB

Effective for accounting periods beginning on or after

The Directors are in the process of making an assessment of what the impacts of these new standards and amendments to standards are expected to be in the period of initial application. So far it has concluded that the adoption of them is unlikely to have a significant impact on the consolidated financial statements.

4. REVENUE

(a) Disaggregation of revenue

Disaggregation of revenue from contracts with customers by major products or service line for the year is as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Revenue from contracts with customers within the scope of IFRS 15 | | |
| Sales of EV batteries | 30,299,670 | 19,550,893 |
| Sales of ESS products and others | 14,100,397 | 8,200,633 |
| | 44,400,067 | 27,751,526 |

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major product lines and geographical regions:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Primary geographical markets | | |
| - Mainland China | 43,480,833 | 27,111,618 |
| - Europe | 220,598 | 165,032 |
| - Asia | 694,322 | 419,423 |
| - America | 1,479 | 50,876 |
| - Others | 2,835 | 4,577 |
| Revenue from external customers | 44,400,067 | 27,751,526 |
| Timing of revenue recognition | | |
| - Products transferred at a point in time | 44,299,532 | 27,678,535 |
| - Products and services transferred over time | 100,535 | 72,991 |
| Total | 44,400,067 | 27,751,526 |

(b) Transaction price allocated to the remaining performance obligation for contracts with customers

The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at year end and the expected timing of recognising revenue as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Within 1 year | 329,736 | 141,294 |

5. INVESTMENT AND OTHER INCOME

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Interest income on: | | |
| - Bank deposits | 99,795 | 121,707 |
| - Financial assets at FVTOCI | 49,002 | 33,115 |
| Total interest income | 148,797 | 154,822 |
| Government grants and subsidies | 48,009 | 27,451 |
| Value-added tax additional deduction | 97,766 | 160,382 |
| Compensation from suppliers | 14,715 | 11,150 |
| Insurance compensation income | 8,167 | 2,829 |
| Reversal of provision for litigation | 8,155 | - |
| Others | 8,002 | 926 |
| | 333,611 | 357,560 |

6. OTHER LOSSES, NET

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Allowance for inventories | (523,231) | (149,755) |
| Fair value change in financial assets at FVTPL | 368,199 | 37,599 |
| Fair value change in financial guarantees | (109,004) | (34,563) |
| Net foreign exchange gain | 9,848 | 6,879 |
| Net gain on disposals of property, plant and equipment | 2,572 | 819 |
| | (251,616) | (139,021) |

7. SEGMENT INFORMATION

The Group is mainly engaged in the design, research and development, production and sales of EV batteries and ESS products in the PRC, and all the assets are substantially located in the PRC. Accordingly, there is only one single business reportable segment which is regularly reviewed by the chief operating decision maker.

Revenue from major customers:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Customer A | 7,420,382 | 3,622,311 |
| Customer B | 6,985,687 | 3,470,117 |
| Customer C | N/A | 2,971,549 |
| Customer D | N/A | 2,794,586 |

Revenue from these customers amounted to less than 10% of the total revenue of the Group for the year ended 31 December 2025.

8. FINANCE COSTS

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Interest expenses on lease liabilities | 10,178 | 3,860 |
| Interest on bank borrowings, bond payables and finance charges | 1,225,334 | 1,227,732 |
| Total borrowing costs | 1,235,512 | 1,231,592 |
| Amount capitalised | (380,916) | (816,476) |
| | 854,596 | 415,116 |

9. INCOME TAX EXPENSE/(CREDIT)

Income tax expense/(credit) has been recognised in profit or loss as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Current tax – the PRC | | |
| Provision for the year | 60,588 | 485 |
| Under provision in prior years | 74,064 | 159,336 |
| | 134,652 | 159,821 |
| Current tax – Others | | |
| Provision for the year | 82 | 292 |
| Deferred tax | 40,394 | (213,540) |
| | 175,128 | (53,427) |

Under the relevant income tax law, the PRC subsidiaries are subject to Enterprise Income Tax ("EIT") at a statutory rate of 25% on their respective taxable income during the year.

The Company and certain subsidiaries operating in Mainland China were approved to be high and new technology enterprises and were entitled to a reduced EIT rate of 15%. The high and new technology enterprises certificates need to be renewed every three years so as to enable the Company and those subsidiaries to enjoy the reduced EIT rate of 15%.

10. PROFIT FOR THE YEAR

The Group’s profit for the year is stated after charging/(crediting) the following:

| | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- |
| Allowance for inventories | 523,231 | 149,755 |
| Amortisation of intangible assets | 194,459 | 171,850 |
| Auditor’s remuneration | | |
| – Audit services | 4,265 | 4,114 |
| – Non-audit services | 1,401 | 578 |
| Cost of inventories sold | 36,988,116 | 23,341,632 |
| Depreciation of property, plant and equipment | 4,648,965 | 2,242,732 |
| Depreciation of right-of-use assets | 66,386 | 58,942 |
| Net gain on disposals of property, plant and equipment | (2,572) | (819) |
| (Reversal of impairment losses)/impairment losses on
trade and bills receivables | (3,951) | 91,058 |
| (Reversal of impairment losses)/impairment losses on prepayments,
deposits and other receivables | (32,320) | 40,987 |

11. DIVIDENDS

No dividend has been paid or proposed during the year (2024: Nil).

12. EARNINGS PER SHARE

The calculation of the basic earnings per share during the year is based on the profit for the year attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares in issue or deemed to be in issue

(a) Basic earnings per share

The calculation of basic earnings per share is based on the profit for the year attributable to owners of the Company of approximately RMB1,475,632,000 (2024: RMB591,196,000), and the weighted average number of ordinary shares of approximately 1,772,302,000 (2024: 1,772,302,000) in issue during the year.

(b) Diluted earnings per share

The calculation of the diluted earnings per share is based on the following:

| | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- |
| Earnings | | |
| Earnings for the purpose of calculating basic earnings per share | 1,475,632 | 591,196 |
| Earnings diluted as a result of non-wholly owned subsidiary’s equity-settled share-based payments | (1) | – |
| Earnings for the purpose of calculating diluted earnings per share | 1,475,631 | 591,196 |

The numbers of ordinary shares used as denominators in calculating the basic and diluted earnings per share are the same.

13. TRADE AND BILLS RECEIVABLES

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Trade receivables | | |
| Receivables from third parties | 13,223,407 | 7,172,546 |
| Due from related parties | 43,645 | 16,564 |
| Allowance for doubtful debts | (273,413) | (179,697) |
| | 12,993,639 | 7,009,413 |
| Bills receivables | 1,971,525 | 1,404,887 |
| Allowance for doubtful debts | (509) | - |
| | 1,971,016 | 1,404,887 |
| | 14,964,655 | 8,414,300 |

The credit terms, being granted to independent third parties, are generally within 90 days. Each customer has a maximum credit limit. For new customers, payment in advance is normally required. The Group seeks to maintain strict control over its outstanding receivables. Overdue balances are reviewed regularly by the directors.

The aging analysis of trade receivables based on the invoice date, and net of allowance, is as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| 0 to 180 days | 12,053,397 | 6,345,783 |
| 181 to 365 days | 696,696 | 299,671 |
| 1 – 2 years | 172,595 | 284,651 |
| Over 2 years | 70,951 | 79,308 |
| | 12,993,639 | 7,009,413 |

Reconciliation of allowance for trade and bills receivables:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| At 1 January | 179,697 | 88,639 |
| Acquisition of subsidiaries | 98,176 | - |
| (Reversal)/allowance for the year, net | (3,951) | 91,058 |
| At 31 December | 273,922 | 179,697 |

The fair values of trade and bills receivables of the Group approximated to their carrying amounts.

Bills receivables mainly represent short-term bank acceptance bills receivables that entitle the Group to receive the full-face amount from the banks at maturity, which generally ranges from 3 to 6 months from the date of issuance. Historically, the Group had experienced no credit losses on bills receivables. The Group from time to time endorses bank acceptance bills to suppliers in order to settle trade payables and discounts bank acceptance bills to banks in order to obtain working capital.

The Group endorsed certain bank acceptance bills to suppliers for settling trade payables of the same amount on a full recourse basis. The Group has derecognised these bills receivable and payables to suppliers in their entirety. These derecognised bank acceptance bills had a maturity date of less than 6 months from the end of the reporting period. In the opinion of the directors, the Group has transferred substantially all the risks and rewards of ownership of these bills and has discharged its obligation of the payables to its suppliers, and the Group has limited exposure in respect of the settlement obligation of these bills receivables under the relevant PRC rules and regulations, should the issuing banks fail to settle the bills on maturity date. The Group considered the issuing banks of these bills are of good credit quality and non-settlement of these bills by the issuing banks on maturity is remote. The Group's maximum exposure to loss and undiscounted cash outflow, which is same as the amount payable by the Group to suppliers in respect of the endorsed bills, should the issuing banks fail to settle the bills on maturity date, is amounted to RMB4,750,194,000 (2024: RMB1,831,848,000).

The Group discounted certain bank acceptance bills to banks for obtaining working capital and has derecognised these bank acceptance bills in their entirety. These discounted bank acceptance bills had a maturity date of less than 6 months from the end of the Reporting Period. In the opinion of the Directors, the Group has transferred substantially all the risks and rewards of ownership of these bills and the Group has minimum exposure in respect of the settlement obligation of these bills under the commercial practice in the PRC, should the issuing banks fail to settle the bills on maturity date. The Group considered the issuing banks of these bills are of good credit quality and chance of non-settlement of these bills by the issuing banks on maturity date is remote. The Group's maximum exposure to loss and undiscounted cash outflow, should the issuing banks fail to settle the bills on maturity date, is amounted to RMB14,479,225,000 (2024: RMB8,981,927,000).

The Group discounted certain bank acceptance bills with recourse to banks. Since the risks and rewards of ownership had not been substantially transferred respectively, the discounted bills of RMB9,325,000 (2024: RMB100,000,000) were not derecognised.

The Group entered into a trade receivable factoring arrangement and transferred certain trade receivables of RMBNil (2024: RMB1,200,000,000) to a bank without recourse. In the opinion of the Directors, the Group has transferred substantially all the risks and rewards of ownership of these receivables and the Group has minimum exposure in respect of the settlement obligation of these receivables under the commercial practice in the PRC. Thus, the Group derecognised these receivables subsequent to the transfer and the funds received.

The carrying amounts of the Group's trade and bills receivables are denominated in the following currencies:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| RMB | 14,743,615 | 8,298,076 |
| USD | 158,629 | 98,828 |
| THB | 48,608 | 15,172 |
| EUR | 13,803 | 2,224 |
| | 14,964,655 | 8,414,300 |

14. TRADE AND BILLS PAYABLES

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Trade payables | | |
| Payables to third parties | 12,850,143 | 7,947,258 |
| Due to related parties | 217,249 | 1,607 |
| Bills payables | 13,969,256 | 11,537,671 |
| | 27,036,648 | 19,486,536 |

Bills payables were secured by bills receivables of RMBNil (2024: RMB14,000) and pledged bank deposits of RMB2,488,420,000 (2024: RMB3,315,497,000).

The aging analysis of trade payables, based on the date of receipt of goods is as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| 0 to 180 days | 13,009,765 | 7,922,962 |
| 181 – 365 days | 50,805 | 22,907 |
| 1 – 2 years | 4,306 | 2,996 |
| Over 2 years | 2,516 | – |
| | 13,067,392 | 7,948,865 |

The carrying amounts of the Group's trade and bills payables are denominated in the following currencies:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| RMB | 27,030,869 | 19,485,130 |
| EUR | 4,323 | 1,406 |
| JPY | 880 | – |
| USD | 576 | – |
| | 27,036,648 | 19,486,536 |

MANAGEMENT DISCUSSION AND ANALYSIS

I. Industry Landscape

In 2025, the global low-carbon energy transition accelerated across the board, with the installed capacity of renewable energy expanding steadily. The EV batteries and energy storage sectors grew rapidly in tandem, with multiple technological roadmaps advancing in parallel and working in synergy, providing solid support for the global green and low-carbon development and energy transformation. Meanwhile, emerging markets such as maritime, low-altitude, and robot developed rapidly.

1. EV battery sector

The continued increase in demand of the global new energy vehicle market served as the core engine driving the growth of the EV battery industry. According to SNE Research, global sales of new energy vehicles reached 21.47 million units in 2025, representing a year-on-year increase of 21.5%; global EV battery installations amounted to 1,187GWh in 2025, representing a year-on-year increase of 31.7%.

As the world's leading new energy vehicle market in terms of scale, China's industry scale continued to expand, effectively promoting the rapid development of the EV battery industry. According to data from the China Association of Automobile Manufacturers, sales of China's new energy vehicles reached 16.49 million units in 2025, representing a year-on-year increase of 28.2%. Sales of new energy vehicles accounted for 47.9% of total sales of new vehicles, of which sales of new energy commercial vehicles reached 954 thousand units, representing a year-on-year increase of 65.5%. According to data from the China Automotive Battery Innovation Alliance, cumulative EV battery installations in China reached 769.7GWh in 2025, representing a year-on-year increase of 40.4%. According to SNE Research, electric vehicle sales in Europe reached 4.257 million units, representing a year-on-year increase of 34.9%, accounting for 19.8% of the global market.

2. Energy storage sector

Driven by the low-carbon transformation of global energy and the rapid growth in power demand of high energy-consuming sectors such as AI and data centers, the demand of global energy storage market has grown rapidly. According to InfoLink, cumulative global shipments of energy storage cells reached 612.39GWh in 2025, representing a year-on-year increase of 94.59%, of which cell shipments in overseas market reached 299.79GWh, accounting for approximately 49.0% of the total market.

In the Chinese market, energy storage transitioned from policy-driven to value-driven growth, with application scenarios expanding. According to statistics from the China Energy Storage Alliance, by the end of 2025, the cumulative installed capacity of new-type energy storage projects in China reached 144.7GW, representing a year-on-year increase of 85%, surpassing the 100GW mark for the first time. The installed capacity of new-type energy storage projects newly put into operation in 2025 reached 66.43GW/189.48GWh, with year-on-year increases of 52% and 73% in power scale and energy scale, respectively. In 2025, the overseas energy storage market experienced overall high-speed growth. The U.S. market continued to be driven by supportive policies, with numerous large-scale energy storage projects being implemented. The European market saw simultaneous expansion in residential storage and grid-scale storage, with an increased share for long-duration energy storage. Emerging markets such as the Middle East and Southeast Asia experienced rapid growth, becoming core drivers of new increments.

3. Emerging Markets

Driven by the dual imperatives of emissions reduction in global shipping industry and China's "dual carbon" goals, ship electrification is entering a strategic window period of rapid development, regarded by the industry as the "third growth pole" for EV batteries. In the Chinese market, national and local governments have intensively introduced policies providing comprehensive support for electric vessels, spanning technical specifications, policy support, and operational incentives. In the international market, the EU Fuel Maritime Regulation and the ES-TRIN technical standards for electric vessels officially took effect in 2026, opening up space for large-scale application in the European electric vessel market, while demand for port equipment in North America and offshore shipping in Asia has surged, leading to a continuous increase in the number of electric vessels in operation globally.

In 2025, the low-altitude industry in China has made positive progress, with accelerated breakthroughs in technological equipment and expansion of diversified application scenarios, officially marking the inaugural year for the low-altitude economy to reach trillion-yuan scale. As a core component of the low-altitude industry, EV batteries address the key technical challenges of payload capacity, flight duration, and safety for low-altitude flight. Battery companies and original equipment manufacturers are jointly promoting the implementation of aviation-grade standards, with multiple technologies advancing in coordination to drive the rapid development of the low-altitude industry. Furthermore, the robot industry is at a critical turning point, transitioning from "technological validation" to "mass production," with the market showing a trend of explosive growth.

II. Business Review

As a leading global new energy technology company, the Group is committed to becoming a creator of energy value. Adhering to the mission of "transcend commerce to benefit humanity" and the vision of "co-create, win together, achieve excellence", the Group will continue to shape a healthy ecosystem for the new energy sector by pioneering innovation and technology leadership, and strive to take on the greatest responsibility in achieving the goals of "carbon peaking and carbon neutrality" and the strategic advancement of new energy vehicle as well as fulfill its responsibilities for energy security and sustainable development.

1. Main business and its applications

The Group is a leading global new energy technology company specializing in the research, production, sales and market application development of lithium batteries, battery management systems and related integrated products as well as materials for lithium batteries. As a battery expert, the Group is committed to building a comprehensive energy operation system, providing comprehensive product solutions and full life-cycle management for the all-scenario application market of new energy represented by EV batteries and ESS products.

2. Major products

Passenger vehicle market: Centering on users' needs across all scenarios, we have integrated key core technologies, such as ultra-high-energy chemistry system, ultra-safe electrolytes, minimalist top-flow structure, and highly reliable TPP3.0 thermal safety technology, to develop the "UP" battery, which achieves comprehensive leadership in safety performance, driving range, charging efficiency, acceleration performance and cycle life, whilst providing extensive coverage for all-scenario applications of passenger vehicles, thereby establishing industry-leading product competitiveness.

Commercial vehicle market: We have established a comprehensive product matrix architecture, covering all scenarios, all applications, and all capabilities. With ultra-high safety, ultra-long lifespan and wide temperature range as the core product competitiveness, through modular and platform-based technologies and products, we have achieved full-scenario coverage of batteries from 30KWh to 900KWh for vans vehicles, mini and small trucks, light trucks, buses, heavy trucks, and construction machinery, addressing customers' core needs in a targeted manner and building robust product capabilities.

Energy storage market: We provide comprehensive product solutions and full lifecycle management for all application scenarios, including power, industrial and commercial, and household applications. Our products have four major advantages: high safety, ultra-long life, ultra-high energy efficiency, and high reliability. Among them, the "ZHIJIU" 588Ah/684Ah cells adopt thermoelectric separation and double insulation technology to ensure safety. The full life-cycle lithium replenishment achieves zero degradation during 3 years and $15,000+$ cycles, with an energy density of $450\mathrm{Wh/L}$ .

Ship market: We continue to delve into the application scenarios of ship electrification. We adopt a Lego-type design concept to successfully achieve full coverage of product types for all scenarios, including pure electric, hybrid, energy storage and backup power so as to adapt to the needs of various ship structures. The products have obtained DNV, CCS, ABS, RINA and other international authoritative certificates.

Low-altitude market: We have employed high-performance "high-energy cylindrical cells". The products have advantages such as high energy density, high power performance, high discharge capacity, high safety design, and low heat generation. The cell energy density can reach 310Wh/kg, effectively improving the flight duration of aircraft. They can be matched with a variety of aircraft models in the industry, covering a range of eVTOL aircraft from small 2-seater to multiple medium and large 5-seater or 6-seater.

Robot market: We have employed high-performance solid-state battery technology. The products have advantages such as high energy density, stable power output, excellent safety performance, flexible adaptability, and production compatibility, effectively meeting the high energy consumption requirements of robots, while also satisfying the high energy demands of confined spaces such as chest cavity and backpack of humanoid robots.

3. Business achievements

During the Reporting Period, the Group achieved the revenue of RMB44.400 billion, representing an increase of $60.0\%$ compared to the same period last year, and realized a profit of RMB2.095 billion during the Reporting Period, representing an increase of $148.4\%$ compared to the same period last year.

(1) Continuous innovations in product and technology

The Group leverages its leading technology and product capabilities to support the development of the new energy business, and insists on taking the needs of end users and customers and social sustainable development as the pursuit of technological development. Adhering to the technology innovation as the driving force of industrial innovation, we are committed to providing users with products featuring high safety, high reliability and high performance, and develop top-notch technologies and products through continuous innovation, so as to achieve the breakthrough in technological development, continuously boosting the core competitiveness of the Group.

"UP super-charged" 5C/10C super-charged battery: It is suitable for pure electric and hybrid electric vehicles. 5C products exclusively support popular models such as XPeng's new P7 with ultra-long range, helping XPeng's new P7 create a new record of driving 3,961km in 24 hours. The extended-range battery to support the mass production of Xpeng's X9 is the world's first 5C super-charged LFP extended-range battery. The 10C super-charged battery completed its battery design and development in 2025 and we are currently in cooperation with OEMs for its development at the vehicle level.

"UP high-power": The 25C high-power battery, developed for the luxury vehicles segment of supercars/racing cars, boasts a continuous discharge power of up to megawatts and has completed the testing and development of battery prototypes. The 20C high-power battery developed for HEV/PHEV has been supplied to automakers such as Geely and Dongfeng for large-scale delivery.

"UP high-energy": Targeting the mid-to-high-end vehicle market, the Group has made early strategic arrangements and completed the development of a 220Wh/kg battery pack, achieving a battery system capacity of over 120kWh. With developed solid-liquid hybrid technology, the battery pack energy density can reach 280Wh/kg, achieving a battery system capacity of 150kWh and leading product innovation and upgrades. The Group has successfully launched the "UP high-energy" R46 cylindrical cell with an energy density of 310Wh/kg, which has been mass-produced for leading eVTOL customers in the industry, achieving the number one market share in the industry.

"Boundless": The Group has achieved a new breakthrough in the field of solid-state batteries by successfully developing an original 450Wh/kg all-solid-state battery system and completing the prototyping and validation of the industry's first batch of product.

"ZHIYUAN": A commercial series of solutions has been launched, comprehensively empowering efficiency innovation and sustainable future for commercial applications. It supports heavy trucks with 2C ultra-fast charging and an ultra-long lifespan of 2 million kilometers over 10 years. It provides the light commercial vehicle market with top-tier products featuring an energy density of 160Wh/kg and a range exceeding 350 kilometers. The Group has pioneered the integration of 400Wh/kg solid-liquid hybrid batteries into new energy commercial vehicles, achieving an ultimate balance between high energy and high safety. A full-scenario product matrix adapted for hybrid power, emergency energy storage and backup power supplies has been launched, fully covering the diverse power demands of vessels across different routes and operating conditions.

"ZHIJIU": Following the pioneering definition and mass production of 314A and 314B cells, the Group has successfully launched the next-generation benchmark products - the "ZHIJIU" 588Ah and 684Ah large cells, redefining industry standards and better serving application scenarios.

The Group followed the high-quality intellectual property rights development strategy which was deeply integrated with the strategy of “consolidating its leadership in product and technology”. Focused on the high-quality patent portfolio to constantly forge a continuously innovative brand power, it has established a patent portfolio covering the entire battery industry chain, including battery materials, battery structure, system integration, electrical circuits, BMS, manufacturing process equipment and battery recycling. As of 31 December 2025, the Group had a total of 6,138 patent applications globally. In 2025, the Group passed the ISO 56005 evaluation of “Innovation and Intellectual Property Management Capabilities”, reaching the international leading level in the integration of innovation management system and intellectual property strategy. The Group’s patent-intensive product cultivation case was successfully selected as one of the twenty typical cases of the “Hundred Chains and Thousand Enterprises” patent industrialization promotion project in China. In addition, in 2025, the Group won the Jiangsu Provincial Governor’s Quality Award and was approved as an excellent smart factory and 5G factory.

With continuously advanced technologies and products, the Group will reconstruct the industrial ecology, jointly build a zero-carbon future, and steadily enter a new stage of high-quality development jointly driven by multiple scenarios, multiple markets and multiple technologies, injecting strong impetus into the global green transformation.

(2) Accelerating the implementation of all-scenario business layout

In 2025, the Group continued to record high growth in each of its business segments. The installed capacity of EV batteries ranked fourth globally and third domestically. The shipments of energy storage cells also achieved a significant growth, ranking fourth globally. Meanwhile, the Group advanced its global layout in an orderly manner, continuously developing outstanding green and low-carbon products and solutions, and establishing an efficient and well-functioning carbon management system.

Passenger vehicle market: the Group’s market share hit new highs, and the global business expansion has entered a new stage. In terms of customer development, we tapped into Toyota, Volkswagen and Hyundai, and has secured nominations of multiple next-generation platform projects from international OEMs, accelerating our global market deployment.

In the field of pure electric vehicle: for mid and high end market, the 800V high-voltage platform 5C ultra-fast charging battery has achieved monthly sales of more than 20,000 units. The development of new platform for Xpeng MONA, Luxeed/SAIC, Leapmotor and other customers has progressed smoothly, with mass delivery beginning in 2026;

In the hybrid field: our installed capacity continued to grow rapidly, and we advanced the development of high-capacity extended-range platforms for Xiaomi, Xpeng, Leapmotor and other companies, with mass delivery beginning in 2026; and
In the international market: the Group tapped into Toyota, Volkswagen and Hyundai automotive groups, with the delivery volume steadily increasing and the types of delivered products becoming increasingly diversified.

Commercial vehicle market: the shipments in 2025 increased multifold. We sped up our integration into new automotive models, declaring more than 468 new models, representing a year-on-year increase of 96%, and achieving comprehensive coverage of models in all areas.

In the light commercial vehicle field: the Group has established in-depth collaborations with customers such as Chery, Geely, Dongfeng and King Long, continuously increasing user penetration;
In the heavy truck field: the Group has partnered with customers such as Sinotruk, XCMG, SANY, Shaanxi Automobile, GAC and Lingong in multiple vehicle models such as heavy trucks and construction machinery, achieving full-spectrum collaboration. We launched our benchmark products of HL and GL series to address the pain points in operational scenarios such as closed-loop and trunk transport, which have been highly recognized by the market and customers, greatly enhancing our brand power; and
In the international market: with superior product performance and full-cycle service guarantee, the Group has completed mass production and delivery for rail transit projects in Europe, with the installed capacity of buses in Europe increasing steadily, and successfully deepened our presence in the high-end commercial vehicle market in Europe by achieving nominations of multiple projects, and consecutively securing “Best Performance Award” from overseas customers.

Energy storage market: the shipments throughout the year achieved a significant growth. Our overseas installed capacity has further increased, with the Group being included in the supplier lists of several leading developers and power grid companies, marking a new breakthrough in our overseas power plant business deployment.

The Group deepened cooperation with SPIC, CNNP Rich Energy, China Three Gorges Renewables, China Energy Conservation and Environmental Protection Group, China Energy Group, China Resources Group and China Energy Construction, participated in a number of energy storage power station projects which have realized the operation and grid connection; entered into strategic cooperation with system integrators and leading customers in various fields such as wind power and photovoltaic power, achieving further improvement in market share and ranking; explored various cooperative development models to support the growth of our power station business; and completed its market layout in the industrial and commercial energy storage, household energy storage market segment through the launch of full-scenario standardized energy storage products and solutions, which laid a solid foundation for the follow-up rapid growth in the energy storage market; and
The Group has made significant breakthroughs in the international energy storage market by successfully entering the supplier whitelist of leading energy storage developers and independent power producers (IPPs) in South Africa, Latin America, United States, Israel, and other regions. As a supplier of second-generation long-cycle energy storage cells, we have successfully secured orders for long-cycle energy storage cells from overseas customers. The next-generation “ZHIJIU” 600Ah+ large energy storage cells have secured large-scale nominations. The product matrix for household storage, commercial and industrial storage has successfully entered multiple overseas markets. With high energy efficiency and safety performance, the Company has established partnership with customers from more than ten countries and regions.

Meanwhile, for the ship market, we focused on the zero-carbon port business, and have achieved successful delivery of, and large-scale application in several ship projects that are “the largest in China” and “the first in the world”, including the “electrification of the Yangtze River”, the electrification of the offshore 10,000-ton bulk carrier, the electrification of cruise ship in Lijiang River and the electrification of cruise ship in West Lake. At the same time, we vigorously expanded into overseas markets and enhanced our international brand influence. We have delivered a number of high-profile projects for different subdivided vessel types. Our “zero-carbon shipping” product solutions have received wide attention and recognition from the international ship market. For the low-altitude market, we continued to deepen the strategic cooperation with domestic mainstream eVTOL companies such as XPeng Huitian, GOVY, Volant, and Lanyi Aviation, and obtained the exclusive qualification for EV battery products of customers’ main models, and through the innovation of several development and business models, we have effectively advanced the sustained expansion of the low-altitude business. For the robot market, we will also commence the mass delivery for our robot products.

Deepen Industrial Layout

In view of the broad market prospects in the new energy industry and the Group’s fast-growing business needs in various segments, the Group has kept pace with market trends, continuously advancing its global production capacity deployment to build a leading global enterprise with scaled intelligent manufacturing capabilities. At present, the Group has established a global industrial cluster covering Eastern China, Southern China, Western China, Northern China and Central China, as well as Europe and ASEAN, providing a solid foundation for the Group’s long-term high-quality development.

Carbon Management and Sustainable Development

Focusing on the strategic objective of “Carbon neutrality in core operations by 2030, carbon neutrality in value chain by 2040”, the Group was fully committed to seven core directions, including low-carbon product development, full life-cycle carbon footprint management, energy efficiency improvement, clean energy consumption, low-carbon logistics, recycling, and collaborative decarbonization across the supply chain, so as to establish an efficient and well-functioning carbon management system.

In 2025, the Group officially joined the United Nations Global Compact (UNGC), and pledged to implement the ten basic principles of sustainable development in all aspects of its corporate operations and business development; in terms of green manufacturing, we achieved a significant reduction in carbon emissions per unit of product through the scale deployment of photovoltaic and industrial energy storage systems, scale application of biomass energy, and the introduction of energy-saving technical renovation projects in the production process; in terms of green products, adhering to the design concept of achieving an optimal balance between energy and resources, we developed low-carbon standards in advance and implemented them throughout the entire life cycle of product design and R&D, and our EV battery cell products was successfully awarded the first batch of Product Carbon Footprint Certification in Jiangsu Province.

III. Future Prospects

With its strategic goal of global leadership, the Group is driven by technological innovation and guided by the “AI + Energy” strategy, adhering to the deep integration of technological innovation and industrial innovation. Propelled by a future-oriented R&D layout, we have established a positive feedback loop mechanism of “new technology and product development – multi-market application – scaled delivery – refined operations – technological iteration and upgrade”. Focusing on platform-based products, we are building a cross-domain, cross-scenario dynamic power and energy storage product matrix to achieve deep synergy in power and energy storage business, creating cutting-edge product capabilities across all scenarios. At the same time, the Group will continuously explore emerging markets such as ship, low-altitude economy and robot, offer high-safety, high-reliability, and high-performance product solutions, and through safe and efficient batteries, green and low-carbon technologies, the Group will inject strong momentum into new-quality productivity scenarios represented by low-altitude and robot.

Continuous innovations in technology and product

The Group remains committed to technological innovation, continuously leading the industrial development by advanced technologies.

In terms of high-performance battery technology, the Group will continue to pursue breakthroughs in battery technologies, focusing on enhanced safety, high energy density, ultra-fast charging, long-term quality assurance, wide temperature range, and ultra-long service life. It will solidify its comprehensive leadership by developing products with cutting-edge performance and cost competitiveness. The Group will persistently make breakthroughs in critical technologies for improving efficiency and longevity in energy storage cells, enable the cells with ultra-large capacity to upgrade and iterate and make efforts to achieve "photovoltaic-storage co-lifespan" (光儲同壽) of energy storage cells, so as to develop the cutting-edge performance and cost competitiveness; the Group will commercialize high-specific-energy 360Wh/kg high-nickel medium-silicon cylinder batteries, and 200Wh/kg+ phosphate-based products, accelerating the application and promotion of high-manganese iron lithium; the Group will continuously advance key technological breakthroughs and commercial application of high-performance all-solid-state batteries, achieving the application and promotion of 10Ah-class all-solid-state batteries in the field of robots as well as the batch verification of 400Wh/kg large-capacity all-solid-state automotive products.

In terms of advanced manufacturing, the Group will focus on three directions towards advanced manufacturing, namely, minimalism, extremity and intelligence. Specifically, the Group will develop highly flexible standardized production lines, innovate CTB minimalist process, and pursue breakthroughs in core technologies such as high-speed ultra-wide-width coating as well as dry electrode to reinforce the process solutions for all-solid-state batteries.

Meanwhile, the Group will continue to advance AI intelligence, accelerating the exploration and simulation of new materials on R&D side by utilizing AI large models; and on manufacturing side, the Group will achieve intelligent quality inspection, predictive maintenance and process optimization, promote the integration of AI capacity forecast and manufacturing big data platform, and develop AI+ visual defect detection technology, so as to comprehensively set a new benchmark for intelligent manufacturing.

Market and customers

In terms of the passenger vehicle market, the Group will continue to iterate and upgrade, optimize resource allocation, and deepen its global layout of leading technologies based on customer experience. It has completed product deployment and model matching in the economy, mid-to-high-end and luxury markets of all categories of pure electric and hybrid vehicles. Development of new platform projects for domestic and overseas automakers including Xiaomi, Xpeng, Luxeed, SAIC, NIO, Leapmotor, Geely, Changan, Dongfeng, BAIC, SAIC, GAC, Toyota, Volkswagen, and Hyundai are progressing efficiently.

In terms of the commercial vehicle market, the Group will leverage one-stop electrification solutions to advance the implementation of an all-scenario ecosystem. (1) In light commercial vehicle segment: the Group has established stable capability for large-scale delivery. Moving forward, through an enhanced platform-based cost reduction approach, it will achieve a qualitative shift from “scale expansion” to “unit profit enhancement”, thereby generating substantial operating cash flow. (2) In heavy commercial vehicle segment: by empowering logistics enterprises to reduce their TCO (Total Cost of Ownership), the Group will transform one-off transactions into continuous value-added services spanning the entire vehicle lifecycle. It will pioneer business models such as battery swapping for heavy trucks and battery leasing, providing the industry with one-stop, all-scenario ecological solutions. In the construction machinery field, the Group has established a first-mover advantage in specific application scenarios such as loaders. Going forward, the Group will leverage its technological expertise and product capabilities to continuously increase the penetration rate of electrification in these segmented markets. (3) In international markets: the Group will seize growth opportunities in the new energy commercial vehicle sector to achieve transition from “exporting the products” to “exporting the brand” through the comprehensive implementation of terminal and regional strategies.

In terms of the energy storage market, the Group will upgrade from equipment supplier to energy solution supplier, build key software and technology base covering full-chain data perception and access, energy and carbon monitoring and visualization, AI prediction and scheduling optimization, and carbon assets management, as well as establish solution capability for scenarios including zero-carbon cities, zero-carbon industrial parks, zero-carbon factories, virtual power plants and zero-carbon ports. For the domestic business, the Group will continue to deepen strategic cooperation with power groups, system integrators, and leading enterprises in wind power, photovoltaic and other segments to steadily expand the incremental business of new energy power stations, and will explore diversified business models of industrial and commercial energy storage to drive continuous growth in shipments. In terms of the international market, leveraging the established overseas channels, the Group will achieve comprehensive connections and multi-dimensional cooperation with the international leading integrators, developers and owners, complete the supporting facilities of overseas projects for the next-generation “UltraLife” (至久) 600Ah+ large energy storage cells, and fully achieve the implementation and delivery of liquid-cooled container system in high value markets such as Europe, Japan and United States. At the same time, the Group will accelerate the market penetration of the household energy storage and industrial and commercial energy storage products, and promote the energy storage business to realize “scale expansion”, achieving a leapfrog growth in energy storage sector.

In terms of the ship market, the Group will continue to advance globalization strategy and full-scenario layout, expand its presence in domestic and overseas markets, and deepen the scale effect of "Electrified Yangtze River", "Zero-Carbon Ports" and offshore shipping in China. Meanwhile, the Group will accelerate its overseas operation, and its strategic synergy with global leading customers and industry chain partners. At the same time, the Group will continue to lead the iteration of core technologies, such as security protection and intelligent management system of high-capacity and high-magnification cells and marine batteries, upgrade from single product supply to a full-stack plan of "battery system + battery swapping and charging network + operational services" in terms of ecosystem. By building a zero-carbon power ecosystem covering inland waters, nearshore zone and ocean, the Group will become an innovation driver of global shipping decarbonization.

In terms of low-altitude, robots and other emerging markets, the solid batteries, solid-liquid hybrid batteries and other products of the Group are also expected to enter the phase of batch deliveries. In terms of the low-altitude market, the Group will continue to focus on the development needs of low-altitude economy, address the pain points within the industry with leading battery products, guide the industry specifications by standard formulation, empower OEMs with a full-stack energy plan, and promote the implementation of low-altitude battery swapping and charging network and full life-cycle system by ecosystem co-construction, fully supporting the large-scale and commercialization development of China's eVTOL industry and contributing core energy strength to the China's low-altitude economy as it advances toward global leadership. In terms of the robot market, the Group will capture the industry development opportunities, rely on its advanced electrochemistry and system integration technology, focus on the robot-specific energy plan with high power density, enhanced safety, long life and light weight, deepen its synergy with the leading OEMs, and continuously improve its product competitiveness and expand its market coverage, so as to proactively build the energy capacity targeting the next generation of intelligent equipment.

Zero-Carbon Technology and Sustainable Development

Guided by its goal of "achieving carbon neutrality in core operation by 2030, achieving carbon neutrality in value chain by 2040", the Group is deeply advancing improvement in energy efficiency and transition of energy structures, and gradually increase the percentage of clean energy consumption. The Group will also target "zero-carbon technology", "ecological synergy" and "systematic innovation", continuously develop excellent green low-carbon products and solutions, as well as deploy new energy systems such as zero-carbon industrial parks and zero-carbon cities.

The Group will boost industry innovation by virtue of technological innovation, work with partners along the upstream and downstream of the value chain in a concerted effort to build a clean, low-carbon, safe and efficient energy system, making contributions to the development of global climate governance and energy civilization.

IV. Financial Review

Overview

During the Reporting Period, the revenue of the Group increased from RMB27,751.53 million for the year ended 31 December 2024 to RMB44,400.07 million for the year ended 31 December 2025, representing an increase of 60.0%; the Group's profit for the year increased from RMB843.63 million for the year ended 31 December 2024 to RMB2,095.22 million for the year ended 31 December 2025, representing an increase of 148.4%. The basic earnings per share of the Group increased from RMB0.3336 for the year ended 31 December 2024 to RMB0.8326 for the year ended 31 December 2025, representing an increase of 149.6%.

Financial indicators

The key financial indicators of the Group are set out as follows:

Financial indicators	2025	2024
Net sales margin (%)	4.7%	3.0%

The net sales margin of the Group increased by 1.7 percentage points from 3.0% for the year ended 31 December 2024 to 4.7% for the year ended 31 December 2025, primarily due to the sustained high growth of the Group's leading-edge technology products across sectors, including passenger vehicles, commercial vehicles and energy storage applications, and the Group's continued efforts to promote cost reduction through technology and management, resulting in a lower proportion of operating expenses to revenue and improved operational efficiency.

Revenue structure

During the Reporting Period, the Group generated revenue from the sales of EV batteries, ESS products and others. The revenue of the Group increased from RMB27,751.53 million for the year ended 31 December 2024 to RMB44,400.07 million for the year ended 31 December 2025, representing an increase of 60.0%. The increase was mainly due to the sustained high growth of the Group's leading-edge technology products across sectors, including passenger vehicles, commercial vehicles and energy storage applications.

1) Revenue by product

Items	2025		2024
	Revenue (RMB'000)	Percentage of revenue (%)	Revenue (RMB'000)	Percentage of revenue (%)
EV batteries	30,299,670	68.2	19,550,893	70.4
ESS products and others	14,100,397	31.8	8,200,633	29.6
Total	44,400,067	100.0	27,751,526	100.0

During the Reporting Period, the revenue generated from the sales of EV batteries of the Group increased by 55.0% from RMB19,550.89 million for the year ended 31 December 2024 to RMB30,299.67 million for the year ended 31 December 2025. The year-on-year increase in the revenue generated from the sales of EV batteries was mainly attributable to the rapid growth in sales volume in passenger vehicles and commercial vehicles.

During the Reporting Period, the revenue generated from the ESS products and others of the Group increased by 71.9% from RMB8,200.63 million for the year ended 31 December 2024 to RMB14,100.40 million for the year ended 31 December 2025. The strong increase was mainly because the substantial growth in annual shipment volume attributable to the Group's continuous efforts to explore the ESS segment.

2) Revenue by geographical location of product delivery

Items	2025		2024
	Revenue (RMB'000)	Percentage of revenue (%)	Revenue (RMB'000)	Percentage of revenue (%)
Mainland China	43,480,833	97.9	27,111,618	97.7
Overseas regions	919,234	2.1	639,908	2.3
Total	44,400,067	100.0	27,751,526	100.0

During the Reporting Period, the Group's revenue from Mainland China increased by 60.4% from RMB27,111.62 million for the year ended 31 December 2024 to RMB43,480.83 million for the year ended 31 December 2025. During the Reporting Period, the Group's revenue from overseas regions increased by 43.7% from RMB639.91 million for the year ended 31 December 2024 to RMB919.23 million for the year ended 31 December 2025. The overall increase of revenue from Mainland China and overseas regions was mainly due to the continuous high growth of the Group's leading-edge technology products across business sectors, including passenger vehicles, commercial vehicles and energy storage applications.

Financial position

1) Assets

The total assets of the Group increased from RMB122,473.38 million as at 31 December 2024 to RMB148,555.13 million as at 31 December 2025, representing an increase of 21.3%, among which, non-current assets increased from RMB86,868.00 million as at 31 December 2024 to RMB101,037.64 million as at 31 December 2025, representing an increase of 16.3%. Such increase was mainly due to the addition of property, plant and equipment as the Group continued to invest in the projects under construction. Current assets increased from RMB35,605.39 million as at 31 December 2024 to RMB47,517.49 million as at 31 December 2025, representing an increase of 33.5%. Such growth was mainly due to an increase in trade receivables and inventories as the Company continued to expand its business scale.

2) Liabilities

The total liabilities of the Group increased from RMB74,419.46 million as at 31 December 2024 to RMB95,098.52 million as at 31 December 2025, representing an increase of 27.8%, among which, current liabilities increased from RMB45,584.30 million as at 31 December 2024 to RMB60,290.30 million as at 31 December 2025, representing an increase of 32.3%. Such increase was mainly due to the increase in trade and bills payables, trade financing, etc., as the Company continued to expand its business scale. Non-current liabilities increased from RMB28,835.16 million as at 31 December 2024 to RMB34,808.22 million as at 31 December 2025, representing an increase of 20.7%. Such increase was mainly due to the increase in syndicated borrowings for projects and bond payables to meet capital requirements for significant projects.

Liquidity and financial resources

The operating cash inflow of the Group for the year ended 31 December 2025 amounted to RMB10,160.09 million, representing an increase of 226.4% as compared to RMB3,113.10 million for the year ended 31 December 2024, which was mainly attributable to the sustained business growth, enhanced operating efficiency and increase in profit of the Group.

The bank and cash balances (including pledged and restricted bank deposits) of the Group as at 31 December 2025 were approximately RMB12,190.89 million (31 December 2024: RMB12,435.96 million).

The total borrowings of the Group as at 31 December 2025, including all bank loans and bond payables, amounted to approximately RMB57,266.59 million (31 December 2024: RMB46,116.38 million). The repayment terms of the bank loans and bond payables are as follows: approximately RMB25,119.56 million are due within one year and approximately RMB32,147.03 million are due after one year.

The Group had sufficient liquidity to meet the requirements of its daily liquidity management, repayment of debts due and capital expenditure.

Capital structure

The financial management department under the Group is responsible for its financial risk management, aiming to ensure that the liquidity structure of the assets, liabilities and other commitments of the Group could meet its funding needs on an ongoing basis.

The borrowings of the Group were mainly settled in Renminbi, while its cash and cash equivalents were mainly held in Renminbi, U.S. dollars, Euro, Hong Kong dollars and Thailand baht. The Group planned to maintain an appropriate portfolio of equity and debt during the period to ensure an effective capital structure. As at 31 December 2025, the outstanding loans of the Group were RMB-denominated loans with approximately 15.9% of these outstanding loans bearing interest at fixed rates and the remainder at floating rates.

The Group monitored the capital structure by using the liability-to-asset ratio (i.e. total liabilities divided by total assets) and the gearing ratio (i.e. net debt divided by equity), with its policies to maintain financial stability and support the sustainable, healthy and rapid development of the Group’s business. Net debt includes bond payables, lease liabilities, interest-bearing bank and other borrowings and financial guarantee and is net of cash and cash equivalents, with equity being total equity. The liability-to-asset ratio of the Group as at 31 December 2025 was 64.0% (31 December 2024: 60.8%), and the gearing ratio was 91.3% (31 December 2024: 77.5%). The increase in the liability-to-asset ratio and the gearing ratio was mainly due to the increased bank borrowings to address the funding needs for the Company’s sustainable business growth and investment in significant projects. The Group has maintained its financial stability amidst rapid business development.

Foreign exchange risk

The business operations of our Group are principally located in Mainland China and most of its transactions are conducted in Renminbi. Except for certain bank balances which are denominated in U.S. dollars, Euro, Hong Kong dollars, Thailand baht and other foreign currencies, most of the assets and liabilities are denominated in Renminbi, therefore the Group has minimal exposure to foreign currency risk. During the Reporting Period, the Group did not experience any material difficulties or impact on its operations or liquidity as a result of fluctuations in currency exchange rates. The Group believes that the Group will have sufficient foreign currencies to meet its foreign exchange needs, and will take effective measures such as natural hedging to manage foreign exchange risks.

Capital expenditure

During the Reporting Period, the capital expenditures of the Group for the year ended 31 December 2025 amounted to RMB15,336.16 million (2024: RMB16,606.58 million), which were mainly used for the construction of production facilities and the upgrade of existing machinery and equipment. The capital expenditures of the Group were mainly funded by the Group’s own funds, bank borrowings, issuance of bonds as well as cash inflow from the operating activities of the Group.

Capital commitments

During the Reporting Period, the capital commitments of the Group were mainly related to the acquisition of property, plant and equipment. The total of capital expenditures contracted but not incurred as at 31 December 2025 was RMB11,296.96 million (31 December 2024: RMB14,620.08 million).

Restricted assets

As at 31 December 2025, the Group had restricted assets with a total carrying amount of RMB22,167.70 million for obtaining bank loans and other bank facilities. These assets include pledged and restricted bank deposits of RMB2,553.19 million, other financial assets of RMB2,595.70 million, property, plant and equipment of RMB16,155.20 million and right-of-use assets of RMB863.61 million.

Significant investments held

As at 31 December 2025, the Group did not hold any significant investments.

Future plans for significant investments and capital assets

As at 31 December 2025, the Group did not have any plans for significant external investments and capital assets.

Material acquisitions and disposals of subsidiaries and associates

On 6 May 2025, the Company entered into the share transfer agreement and the voting rights waiver agreement with Li Hongqing (the "Vendor"), the de facto controller of Jiangsu Olive Sensors High-tech Corporation Limited* (江蘇奧力威傳感高科股份有限公司) ("Olive Sensors" or the "Target Company", listed on the ChiNext Board of the Shenzhen Stock Exchange (the "SZSE") (stock code: 300507)), pursuant to which the Company has conditionally agreed to acquire, and the Vendor has conditionally agreed to sell, 87,620,380 A shares of the Target Company (the "Acquisition"). The price of the target shares for the Acquisition was RMB5.83 per target share. The consideration for the Acquisition shall be RMB510,826,815.40 in total. Concurrently, the Vendor has agreed to give up its voting rights attached to a portion of shares held by him in the Target Company, totaling 155,725,311 A shares, during the waiver period.

On 6 May 2025, the Company entered into the placement subscription agreement with the Target Company, pursuant to which the Company has conditionally agreed to subscribe for, and the Target Company has conditionally agreed to allot and issue to the Company, up to 119,482,337 placement A shares (the "Subscription") at the subscription price of RMB5.63 per placement A share. The total amount of the Subscription shall not exceed RMB672,685,557.31.

The Acquisition and the voting rights waiver constitute an indivisible whole and are not conditional upon the Subscription, while the Subscription is subject to and conditional upon the implementation of the Acquisition and the voting rights waiver.

On 10 October 2025, the transfer registration of the target shares for the Acquisition was completed, and the Company holds 10.94%¹ equity interest in the Target Company. On 21 November 2025, the Target Company held the general meeting to consider and approve the adjustment to the composition of the board of directors.

Immediately after the completion of the transfer registration of the target shares, the voting rights waiver, and the adjustment to the composition of the board of directors of the Target Company as stipulated in the share transfer agreement, all the conditions precedent to the Acquisition have been fulfilled, the Target Company is deemed as a non-wholly owned subsidiary of the Company and the financial results of the Target Company will be consolidated into the consolidated financial statements of the Group.

1 In accordance with the relevant announcements disclosed by the Target Company on the CNINFO website (cninfo.com.cn) of the Shenzhen Stock Exchange on 13 October 2025, as of 13 October 2025, the total number of shares of Olive Sensors was changed to 800,646,907 shares due to the equity incentive of Olive Sensors, and the number of shares for which Li Hongqing has unconditionally and irrevocably gave up his voting rights pursuant to the voting rights waiver agreement was adjusted from 155,725,311 shares to 155,912,289 shares (representing 19.47% of the total number of shares of the Target Company). By way of the Acquisition and the voting rights waiver arrangement, the total number of shares with voting rights held by Li Hongqing in the Target Company was changed to 47,588,035 shares (representing 5.94% of the total number of shares of the Target Company); and the total number of shares with voting rights held by CALB in the Target Company was 87,620,380 shares (representing 10.94% of the total number of shares of the Target Company).

As at the date of this announcement, the Subscription has not yet been completed. Further announcement(s) in relation to the update on progress relating to, among other matters, the Subscription will be made in accordance with the Listing Rules in due course, if necessary. For further details of the Acquisition and the Subscription, please refer to the announcements of the Company dated 6 May 2025, 9 July 2025 and 21 November 2025 and its circular dated 18 June 2025.

Save as disclosed above, during the Reporting Period, the Group had no other material acquisitions and disposals of subsidiaries and associates.

Contingent liabilities

As at 31 December 2025, the Group had no significant contingent liabilities.

Other information

Compliance with the Corporate Governance Code

The Group is committed to maintaining a high standard of corporate governance and strives to comply with the code provisions (the "Code Provisions") as set out in Part 2 of the Corporate Governance Code (the "CG Code") in Appendix C1 to the Listing Rules.

During the Reporting Period, the Company had complied with all applicable Code Provisions of the CG Code, save for the deviation from Code Provision C.2.1 of the CG Code, which stipulates that the roles of chairman and general manager should be separate and should not be performed by the same individual.

Liu Jingyu is the chairwoman and general manager of the Company. The Directors believe that vesting the roles of both chairwoman and general manager in the same person is beneficial to ensure consistent leadership within the Group and enable the Group to formulate overall strategic planning more effectively and efficiently. The Directors also believe that the current arrangement will not impair the balance of duties and authorities and the structure will enable the Company to make decisions and implement them in a timely and effective manner. Under the leadership of Liu Jingyu, the Board works effectively and performs its responsibilities to discuss all important and appropriate issues in a timely manner. In addition, as all major decisions are made in consultation with members of the Board and the relevant Board committees, and there are three independent non-executive Directors on the Board offering independent views, the Board is therefore of the view that there are adequate safeguards in place to ensure sufficient balance of powers within the Board. The Board shall nevertheless review the structure and composition of the Board from time to time in light of prevailing circumstances, to maintain a high standard of corporate governance practices of the Company.

The Board will continue to review the effectiveness of the Company's governance structure to assess whether it is necessary to separate the responsibilities of the chairman and general manager.

Compliance with the Model Code for Securities Transactions by Directors and Supervisors

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") as set out in Appendix C3 to the Listing Rules as its code of conduct regarding securities transactions of the Company by the Directors and supervisors. Having made specific enquiries to all the Directors and supervisors, the Directors and supervisors confirmed that they have complied with the Model Code during the Reporting Period.

Employees and Remuneration Policy

The Company upholds the core values of "sincerity, efficiency and win-win cooperation", thoroughly implements "Culture and Talent Strategy", as well as devotes itself to respecting and cultivating talents, providing a development platform for willing and capable employees, and effectively and proactively performing social responsibilities. The Company has established a comprehensive remuneration and benefit management system, and has built a remuneration and benefit system featuring both external competitiveness and internal fairness. Furthermore, the Company comprehensively assesses the employees' abilities and development potential through a transparent and fair promotion mechanism in combination with the employees' values, performance, competency and potential for promotion, achieving the collaborative matching between the talents and the Company. The Company has implemented a salary adjustment system that is externally competitive, internally fair, and individually balanced to maximize the potential of the team and individuals. In terms of bonus distribution, the Company makes reasonable distribution according to the employees' performance contributions, based on the achievement of the operational targets on the company level and the performance targets on the department level as well as the achievement of the labor cost targets of each system. The Company continues to optimize a hierarchical and classified talent incentive system, implements differentiated incentive strategies for different employee categories, constantly enhancing their sense of belonging, accomplishment and honor and achieving mutual growth of the employees and the Company. As of 31 December 2025, the total number of employees of the Group was 14,323.

Purchase, Sale or Redemption of Listed Securities of the Company

During the Reporting Period, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities (including sale of treasury shares as defined in the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the "Listing Rules")). As of the end of the Reporting Period, the Company did not hold treasury shares.

Final Dividend

The Board has resolved neither to recommend the payment of a final dividend for the year ended 31 December 2025, nor to convert capital reserve to share capital or make other forms of distribution.

Annual General Meeting

The Company will notify the shareholders of the Company (the "Shareholders") at a later date regarding the date of the forthcoming annual general meeting and the corresponding arrangements for the closure of register of members.

Events after the Reporting Period

Proposed Implementation of H Share Full Circulation by the Company

On 5 February 2026, the Board of the Company has considered and approved the proposed implementation of conversion of 207,102,914 domestic shares of the Company held by certain shareholders of the Company into H shares of the Company (the “H Share Full Circulation”). As of the date of this announcement, the Company has submitted the filing application documents to the CSRC for the H Share Full Circulation. The Company will make further announcement(s) on the progress of the H Share Full Circulation and the Conversion and Listing in accordance with the requirements of the Listing Rules. For details, please refer to the announcement of the Company dated 5 February 2026.

After due and careful consideration, the Directors confirm that, save for the above disclosures, there has been no material adverse change in financial or trading position or prospects of the Company since 31 December 2025 to the date of this announcement.

Audit Committee Reviews Annual Results

The Company has established the Audit Committee (the “Audit Committee”) with written terms of reference in compliance with Rules 3.21 and 3.22 of the Listing Rules and Code Provision D.3.3 of the CG Code. The Audit Committee consists of three independent non-executive Directors including Dr Wang Susheng, Dr Chen Zetong and Dr Xiao Wen, and is currently chaired by Dr Wang Susheng with appropriate professional qualifications as required under Rules 3.10(2) and 3.21 of the Listing Rules.

The Audit Committee has reviewed the audited consolidated financial statements of the Group for the year ended 31 December 2025, and confirmed that it has complied with all applicable accounting principles, standards and requirements and that adequate disclosures have been made. The Audit Committee has also discussed auditing and financial reporting matters.

Scope of Work of RSM Hong Kong

The figures in respect of the Group’s consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income and the related notes thereto for the year ended 31 December 2025 as set out in the preliminary announcement have been agreed by the Group’s auditor, RSM Hong Kong, to the amounts set out in the Group’s audited consolidated financial statements for the year. The work performed by RSM Hong Kong in this respect did not constitute an assurance engagement and consequently no opinion or assurance conclusion has been expressed by RSM Hong Kong on the preliminary announcement.

PUBLICATION OF ANNUAL RESULTS AND ANNUAL REPORT

The annual results announcement is published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.calb-tech.com). The annual report of the Company for the year ended 31 December 2025, containing all the information required by the Listing Rules, will be made available on the above websites in due course, and will be despatched to the shareholders who have already provided instructions indicating their preference to receive hard copies in due course.

By order of the Board