ZKTECO CO., LTD. — Interim / Quarterly Report 2024

May 23, 2024

ZKTeco 2024 Q1 Report

Stock Code: 301330 Abbreviation of Securities: ZKTECO Announcement No.: 2024-023

ZKTECO CO., LTD.

2024 1st Quarter Report

The Company and all members of the Board of Directors guarantee that the

information disclosed is true, accurate and complete, without any false records,

misleading statements or material omissions.

Important content tips:

1. The Board of Directors, the Board of Supervisors, directors, supervisors and senior management guarantee that the information presented in this report is true, accurate and complete without any false records, misleading statements or material omissions, and will undertake individual and joint legal liabilities.

2. The Company's legal representative, the person in charge of the accounting work, and the person in charge of accounting institution

(accounting supervisor) hereby declare that the financial information in this report is true, accurate and complete.

1. Whether the 1st Quarter Report has been audited

□ Yes  No

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ZKTeco 2024 Q1 Report

I. Key Financial Data

(I) Main Accounting Data and Financial Indicators

Whether the Company performed a retroactive adjustment or restatement of the previous accounting data □ Yes  No

	Current reporting period	The same period last year	Increase/decrease in this reporting period compared to the sameperiod lastyear(%)
Operating revenue (RMB)	399,677,922.33	403,022,827.48	-0.83%
Net profit attributable to shareholders of listed companies(RMB)	26,334,496.73	31,690,542.22	-16.90%
Net profit attributable to shareholders of listed companies after deducting non-recurring profits and losses(RMB)	21,211,610.69	30,281,180.21	-29.95%
Net cash flows from operating activities(RMB)	61,516,123.25	64,369,898.55	-4.43%
Basic EPS (RMB/share)	0.1363	0.2098	-35.03%
Diluted EPS (RMB/share)	0.1357	0.2121	-36.02%
Weighted average return on net assets	0.81%	1.03%	-0.22%
	At the end of this reporting period	At the end of the previous year	Increase or decrease at the end of this reporting period compared to the end of the previousyear(%)
Total assets (RMB)	3,842,695,159.18	3,923,900,732.70	-2.07%
Owner's equity attributable to shareholders of the listed company (RMB)	3,233,242,654.11	3,265,413,589.20	-0.99%

(II) Items and Amounts of Non-recurring Gains and Losses

 Applicable □ Not applicable

Applicable □ Not applicable
		Unit: RMB
Item	Amount during this reporting period	Remarks
Losses and gains from disposal of non-current assets (including the offsetting portion of the provision for asset impairment)	-39,306.15
Government subsidies included in current profits and losses (except those closely related to the normal business of the Company, which are in line with national policies and regulations, enjoyed according to determined standards, and have a continuous impact on the Company's profits and losses)	4,244,025.36	Mainly due to government subsidies received during the reporting period
Profits and losses from fair value changes arising from the holding of financial assets and financial liabilities by non-financial enterprises,as well as thegains and losses	1,635,451.13

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ZKTeco 2024 Q1 Report

arising from the disposal of financial assets and financial liabilities except for effective hedging business related to the normal operation of the Company Capital occupancy fees charged to non-financial enterprises included in current profits and losses Other non-operating income and expenses other than the above items Less: income tax impact Minority interest impact (after tax) Total
	10,644.45
	189,944.64
	846,942.22
	70,931.17
	5,122,886.04	--

Details of other profit and loss items that meet the definition of non-recurring profits and losses □ Applicable  Not applicable

The Company does not have other specific conditions of profit and loss items that meet the definition of non-recurring profits and losses.

Explanations on classifying any non-recurring gain/loss item mentioned in the "Explanatory Announcement for Information Disclosure by Companies that Issue Securities to the Public No. 1 -Non-recurring Gains and Losses" as recurring gain/loss item

□ Applicable  Not applicable

The Company does not classify any non-recurring gain/loss item mentioned in the "Explanatory Announcement for Information Disclosure by Companies that Issue Securities to the Public No. 1 -Non-recurring Gains and Losses" as recurring gain/loss item.

(III) Changes and Reasons for Changes in Key Accounting Data and Financial Indicators

 Applicable □ Not applicable

		December 31,
Balance Sheet Items	March 31, 2024		Change ratio	Reasons
		2023
Other non-current assets	23,158,491.21	16,884,605.85	37.16%	Mainly due to the implementation fee of the new ERP system paid in the current period
Taxes and dues payable	14,664,359.01	28,892,229.44	-49.24%	Mainly due to the payment of previous years' corporate income tax in the current period
Treasury stock	59,683,228.10	784,700.00	7505.87%	Mainly due to the repurchase of shares in the current period
	January-March	January-March
Income Statement Items			Change ratio	Reasons
	2024	2023
Taxes and surcharges	5,753,958.79	2,815,533.99	104.36%	Mainly due to the tax increase in the first quarter of this year calculated and determined by local regulations for some overseas subsidiaries
Other income	5,343,759.73	3,354,811.90	59.29%	Mainly due to the year-on-year increase in R&D subsidies received by subsidiaries in the current period
Gains from changes in fair value	236,066.72	0.00	100.00%	Mainly due to the income from financial products
Losses from credit impairment (loss expressed with"-")	1,471,208.38	818,545.26	79.73%	Mainly due to the decrease in accounts receivable at the end of this period, resulting in the reversal of bad debt reserves
	January-March	January-March
Cash Flow Statement Items			Change ratio	Reasons
	2024	2023
Net cash flows from operating activities	-51,857,022.79	8,704,305.63	-695.76%	Mainly due to a decrease in current mature financial products and an increase in investment in ongoing projects
Net cash flows from financing activities	-69,620,223.57	-20,327,769.95	-242.49%	Mainly due to the payment of stock repurchase funds in the current period
Net increase in cash and cash equivalents	-58,904,092.39	49,073,776.48	-220.03%	Mainly due to a decrease in net cash flow from investing activities and financing activities in the current period

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ZKTeco 2024 Q1 Report

II. Shareholder Information

(I) Table of the Total Number of Common Shareholders and the Number of Preferred Shareholders with Resumed Voting Rights and Information about Top Ten Shareholders

Unit: share	Unit: share	Unit: share	Unit: share	Unit: share	Unit: share	Unit: share
Total number of common shareholders at the end of the reporting period		19,470	Total number of preferred shareholders whose voting rights have been recovered at the end of the reporting period(if any)			0
	Particulars about the top 10 shareholders (excluding shares lent through refinancing)
Name of shareholder	Nature of shareholder	Shareholding percentage (%)	Total shares held at the period-end	Number of shares with trading restrictions	Pledge,markingor frozen
					Share status	Amount
Shenzhen ZKTeco Times Investment Co., Ltd.	Domestic non state-owned corporation	30.05%	58,500,000.00	58,500,000.00	Not applicable	0.00
Che Quanhong	Domestic individual	17.48%	34,022,300.00	34,022,300.00	Not applicable	0.00
Shenzhen JYSJ Investment Enterprise (Limited Partnership)	Domestic non state-owned corporation	7.25%	14,107,600.00	10,580,700.00	Not applicable	0.00
Shenzhen JYHY Investment Enterprise (Limited Partnership)	Domestic non state-owned corporation	7.15%	13,921,050.00	10,440,787.00	Not applicable	0.00
Dongguan LX Investment Partnership Enterprise (Limited Partnership)	Domestic non state-owned corporation	5.08%	9,880,000.00	9,880,000.00	Not applicable	0.00
Shenzhen JYLX Consulting Enterprise (Limited Partnership)	Domestic non state-owned corporation	2.42%	4,717,910.00	3,561,285.00	Not applicable	0.00
Shenzhen JYQL Investment Consulting Enterprise (Limited Partnership)	Domestic non state-owned corporation	0.89%	1,724,900.00	1,322,100.00	Not applicable	0.00
Huaxin Yuanchuang (Qingdao) Investment Management	Others	0.87%	1,701,621.00	0.00	Not applicable	0.00

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ZKTeco 2024 Q1 Report

Co., Ltd. - Qingdao Walden Zhongxiang Investment Center (Limited Partnership)
Hong Kong Securities Clearing Company Limited	Overseas corporation	0.36%	700,997.00	0.00	Not applicable	0.00
Shenzhen Gohedge Fund Management Co., Ltd. - Gohedge Pearl No.1 Private EquityFund	Others	0.35%	688,580.00	0.00	Not applicable	0.00
Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s)
Name of shareholder		Number of shares without trading restrictions			Types of shares
					Types	Amount
Shenzhen JYSJ Investment Enterprise (Limited Partnership)		3,526,900.00			RMB denominated ordinaryshares	3,526,900.00
Shenzhen JYHY Investment Enterprise (Limited Partnership)		3,480,263.00			RMB denominated ordinaryshares	3,480,263.00
Huaxin Yuanchuang (Qingdao) Investment Management Co., Ltd. - Qingdao Walden Zhongxiang Investment Center (Limited Partnership)		1,701,621.00			RMB denominated ordinary shares	1,701,621.00
Shenzhen JYLX Consulting Enterprise (Limited Partnership)		1,156,625.00			RMB denominated ordinaryshares	1,156,625.00
Hong Kong Securities Clearing Company Limited		700,997.00			RMB denominated ordinaryshares	700,997.00
Shenzhen Gohedge Fund Management Co., Ltd. - Gohedge Pearl No.1 Private EquityFund		688,580.00			RMB denominated ordinaryshares	688,580.00
Shenzhen Fuhai Juanyong I Venture Investment Fund (Limited Partnership)		666,138.00			RMB denominated ordinaryshares	666,138.00
Shenzhen JYQL Investment Consulting Enterprise (Limited Partnership)		402,800.00			RMB denominated ordinaryshares	402,800.00
Changjiang Wealth Asset Management - Bank of Nanjing - Changjiang Wealth - ZKTeco Employee Strategic Placement No.1 Collective Asset Management Plan		379,592.00			RMB denominated ordinary shares	379,592.00
Zhuo Qiugang		299,790.00			RMB denominated	299,790.00

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ZKTeco 2024 Q1 Report

			ordinary shares
Explanation on associated relationship and concerted actions among above shareholders		Shareholder Che Quanhong is elder brother of shareholder Che Quanzhong from Shenzhen ZKTeco Times Investment Co., Ltd., and son of Che Jun, partner of Dongguan LX Investment Partnership Enterprise (Limited Partnership). The shareholder Che Quanhong holds 76.02% of the equity of Shenzhen ZKTeco Times Investment Co., Ltd., being the controlling shareholder of Shenzhen ZKTeco Times Investment Co., Ltd. Meanwhile, Che Quanhong holds 1.18% of the property share of shareholder Dongguan LX Investment Partnership Enterprise (Limited Partnership). Che Quanzhong, the younger brother of shareholder Che Quanhong, holds a 23.98% equity in Shenzhen ZKTeco Times Investment Co., Ltd. Che Jun, the father of shareholder Che Quanhong, holds 98.68% of the property share of Dongguan LX Investment Partnership Enterprise (Limited Partnership). In addition, there is no affiliated relationship between the other shareholders of the Company.
Information on Top 10 shareholders of participating in margin trading and short selling business (if any)		Among the top 10 shareholders, Shenzhen Gohedge Fund Management Co., Ltd. - Gohedge Pearl No.1 Private Equity Fund held a total of 688,580 shares of the Company at the end of the reporting period, including 563,520 shares held through ordinary securities accounts and 125,060 shares held through a margin account of CITIC Securities Co., Ltd. Among the top 10 shareholders not subject to trading restrictions, at the end of the reporting period, Zhuo Qiugang held a total of 299,790 shares of the Company, including 0 share held through ordinary securities accounts and 299,790 shares held through a margin account of Huatai Securities Co.,Ltd.

Note: Special explanations on the existence of repurchased accounts among the top 10 shareholders not subject to trading restrictions

As of March 31, 2024, the Company's repurchased account holds 2,230,000 ordinary shares, accounting for 1.15% of the current total share capital of the Company. As required, it is not included in the list of the top 10 shareholders of the Company. It is hereby clarified.

Participation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of outstanding shares not subject to trading restrictions in the lending of shares through refinancing

□ Applicable  Not applicable

Changes to the top 10 shareholders and the top 10 shareholders of outstanding shares not subject to trading restrictions compared to the previous period due to reasons related to lending/repayment through refinancing

□ Applicable  Not applicable

(II) Table of the Total Number of Preferred Shareholders of the Company and the Shareholding of the Top 10 Preferred Shareholders

□ Applicable  Not applicable

(III) Changes in Restricted Shares

□ Applicable  Not applicable

III. Other Important Events

 Applicable □ Not applicable

1. Matters related to the adjustment of investment projects with raised funds

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ZKTeco 2024 Q1 Report

The Company held the 9th Session of the Third Board Meeting and the 8th Session of the Third Supervisory Board Meeting on April 22, 2024, and approved the "Proposal on Adjusting the Implementation Method, Total Investment Amount and Delay of Part of the Raised Fund Investment Projects". The Company plans to change the investment in Tangxia R&D Center site in the "R&D Center Construction Project" of the raised fund investment project from a newly built R&D site to the use of existing idle sites, and adjust the corresponding total investment amount. The Company plans to postpone the "Hybrid Biometrics IoT Intelligent Industrial Base Project" and "R&D Center Construction Project" to the date when the expected conditions for use are met. For details, please refer to the "Announcement on Adjusting the Implementation Method, Total Investment Amount and Delay of Part of the Raised Fund Investment Projects" (Announcement No. 2024-020) disclosed by ZKTeco on CNINFO (http://www.cninfo.com.cn).

IV. Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by: ZKTECO CO., LTD.

March 31, 2024

Unit: RMB

Item	March 31,2024	January1,2024
Current assets:
Monetaryfunds	1,884,448,540.69	1,990,924,954.78
Deposit reservation for balance
Lendings to banks and other financial institutions
Tradingfinancial asset	88,038,670.48	80,980,203.63
Derivative financial assets
Notes receivable
Accounts receivable	446,451,642.30	479,803,313.66
Receivable financing
Prepayment	28,917,055.59	23,457,907.24
Premiums receivable
Reinsurance accounts receivable
Reserves for reinsurance contract receivable
Other receivables	34,630,409.43	32,744,574.20
Including: interest receivable
Dividends receivable
Buying back the sale of financial assets
Inventories	384,035,852.46	372,714,784.31
Including: Data resources
Contract assets	282,186.31	282,186.31
Held-for-sale assets
Non-current assets due within oneyear	20,244,084.85	17,257,614.74
Other current assets	25,306,482.41	25,865,809.28
Total current assets	2,912,354,924.52	3,024,031,348.15
Non-current assets:
Loans and advances to customers
Debt investment	42,231,208.57	42,284,596.90
Other debt investment
Long-term receivables	2,575,324.44	2,447,228.23
Long-term equityinvestment	29,487,115.99	29,781,888.62
Other equityinstrument investments

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ZKTeco 2024 Q1 Report

Other non-current financial assets
Investment real estate	22,735,195.83	23,145,488.85
Fixed assets	461,235,340.31	470,121,791.29
Construction inprogress	175,005,695.51	138,986,483.73
Productive biological assets
Oil andgas assets
Right-of-use asset	34,668,280.03	38,669,718.86
Intangible assets	64,661,035.26	66,016,371.68
Including: Data resources
Development expenditures
Including: Data resources
Goodwill	505,680.37	504,803.72
Long-term deferred expenses	3,736,506.27	3,768,847.81
Deferred income tax assets	70,340,360.87	67,257,559.01
Other non-current assets	23,158,491.21	16,884,605.85
Total non-current assets	930,340,234.66	899,869,384.55
Total assets	3,842,695,159.18	3,923,900,732.70
Current liabilities:
Short-term loan
Borrowings from the Central Bank
Borrowings from banks and other financial institutions
Tradingfinancial liabilities
Derivative financial liabilities
Notespayable	109,360,178.00	122,573,544.09
Accountspayable	214,997,773.19	245,084,182.32
Advances from customer
Contract liabilities	80,014,301.44	65,331,106.17
Financial assets sold for repurchase
Deposit from customers and interbank
Actingtradingsecurities
Actingunderwritingsecurities
Payrollpayable	52,007,326.34	56,630,101.98
Taxes and duespayable	14,664,359.01	28,892,229.44
Otherpayables	40,586,069.69	36,735,314.36
Including: interestpayable
Dividendspayable
Handling charges and commissions payable
Reinsurance accounts receivable
Liabilities held for sale
Non-current liabilities due within one year	16,818,104.97	21,094,682.36
Other current liabilities	14,573,690.68	16,463,934.35
Total current liabilities	543,021,803.32	592,805,095.07
Non-current liabilities:
Reserves for insurance contracts
Long-term loan	7,339,071.56	7,810,405.04
Bondspayable
Including:preferred stock
Perpetual bonds
Lease liabilities	19,799,481.86	19,713,286.21
Long-termpayables
Long-termpayrollpayable
Estimated liabilities	600,000.00	600,000.00
Deferred income	1,807,011.40	1,853,549.62

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ZKTeco 2024 Q1 Report

Deferred tax liability	10,057,736.55	10,329,053.48
Other non-current liabilities
Total non-current liabilities	39,603,301.37	40,306,294.35
Total liabilities	582,625,104.69	633,111,389.42
Owner's equity:
Share capital	194,679,508.00	194,679,508.00
Other equityinstruments
Including:preferred stock
Perpetual bonds
Capital reserve	2,079,667,212.27	2,075,479,375.13
Less: treasurystock	59,683,228.10	784,700.00
Other comprehensive income	24,206,218.33	28,000,959.19
Special reserve
Surplus reserves	60,455,422.50	60,455,422.50
General risk reserves
Undistributedprofits	933,917,521.11	907,583,024.38
Total owner's equity attributable to the parent company	3,233,242,654.11	3,265,413,589.20
Minorityinterests	26,827,400.38	25,375,754.08
Total owner's equity	3,260,070,054.49	3,290,789,343.28
Total liabilities and owner's equity	3,842,695,159.18	3,923,900,732.70

Legal Representative: Jin Hairong. Person in charge of accounting work: Wang Youwu. Person in charge of accounting institution: Fang Li

2. Consolidated Income Statement

		Unit: RMB
Item	2024Q1	2023Q1
I. Total operatingrevenue	399,677,922.33	403,022,827.48
Including: operatingrevenue	399,677,922.33	403,022,827.48
Interest income
Premium earned
Revenue from handling charges and commissions
II. Total operating cost	378,734,196.82	366,431,964.03
Including: operating cost	201,116,936.42	206,936,533.66
Interest expense
Expenses from handling charges and commissions
Surrender value
Net payments for insurance claims
Net provisions for policy reserves
Policy dividend expenses
Reinsurance expenses
Taxes and surcharges	5,753,958.79	2,815,533.99
Selling expenses	104,329,442.47	89,773,070.43
Administrative expenses	25,327,005.16	27,990,999.21
R&D expenses	51,910,740.47	47,376,880.92
Financial expenses	-9,703,886.49	-8,461,054.18

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ZKTeco 2024 Q1 Report

Including: interest expenses	421,820.99	770,609.19
Interest income	13,367,815.49	15,105,655.30
Plus: other income	5,343,759.73	3,354,811.90
Investment income ( loss expressed with "-")	1,890,785.10	1,975,900.37
Including: income from investment in associates and joint ventures	-314,021.14	806,641.55
Gains from derecognition of financial assets measured at amortized cost
Gains from foreign exchange (loss expressed with "-")
Gains from net exposure hedging (loss expressed with "-")
Gains from changes in fair value (loss expressed with "-")	236,066.72
Losses from credit impairment (loss expressed with "-")	1,471,208.38	818,545.26
Losses from impairment of assets (loss expressed with "-")	-2,438,868.00	-3,282,698.64
Gains from disposal of assets (loss expressed with "-")	-39,306.15	-203,207.68
III. Operating profit (loss expressed with "-")	27,407,371.29	39,254,214.66
Plus: non-operatingrevenue	291,427.78	96,744.56
Less: non-operatingexpenditure	101,483.14	304,657.32
IV. Totalprofit(loss expressed with "-")	27,597,315.93	39,046,301.90
Less: income tax expenses	264,464.17	1,529,528.60
V. Netprofit(loss expressed with "-")	27,332,851.76	37,516,773.30
(I) Classification by business continuity
1. Net profit from continuing operations(net loss expressed with "-")	27,332,851.76	37,516,773.30
2. Net profit from discontinued operations(net loss expressed with "-")
(II)Classification byownership
1. Net profits attributable to owners ofparent company	26,334,496.73	31,690,542.22
2. Minority shareholders' profit and loss	998,355.03	5,826,231.08
VI. Other comprehensive income - after tax	-3,505,044.17	-4,779,705.56
Net of tax of other comprehensive income attributable to the owner of the parent company	-3,794,740.86	-4,816,630.30
Other comprehensive income that cannot be transferred toprofit or loss
1. Changes in re-measurement of the defined benefitplan
2. Other comprehensive income that cannot be transferred to profit or loss under the equitymethod
3. Changes in fair value of other

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ZKTeco 2024 Q1 Report

equityinstrument investments
4. Changes in the fair value of the Company's own credit risk
5. Other
(2) Other comprehensive income that will be reclassified intoprofit or loss	-3,794,740.86	-4,816,630.30
1. Other comprehensive income that can be transferred to profit or loss under the equitymethod
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedgingreserve
6. Translation difference of foreign currencyfinancial statements	-3,794,740.86	-4,816,630.30
7. Others
After-tax net amount of other comprehensive income attributable to the minorityshareholders	289,696.69	36,924.74
VII. Total comprehensive income	23,827,807.59	32,737,067.74
Total comprehensive income attributable to owners of the parent company	22,539,755.87	26,873,911.92
Total comprehensive income attributable to minorityshareholders	1,288,051.72	5,863,155.82
VIII. Earningsper share(EPS):
(I)Basic EPS	0.1363	0.2098
(II)Diluted EPS	0.1357	0.2121

In the event of a merger of enterprise under the same control in the current period, the net profit realized by the combined party before the merger is RMB, and the net profit realized by the combined party in the previous period is RMB. Legal Representative: Jin Hairong Person in charge of accounting work: Wang Youwu Person in charge of accounting institution: Fang Li

3. Consolidated Cash Flow Statement

		Unit: RMB
Item	2024Q1	2023Q1
I. Cash flows from operatingactivities:
Cash received from sale of goods and renderingof services	525,769,205.79	453,759,458.45
Net increase in deposits from customers and deposits in banks and other financial institutions
Net increase in borrowings from the Central Bank
Net increase in borrowings from banks and other financial institutions
Cash received from receiving insurance premiums of original insurance contracts
Net cash received from reinsurance

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ZKTeco 2024 Q1 Report

business
Net increase in deposits and investments from policyholders
Cash received from interest, handling fees and commissions
Net increase in borrowings from banks and other financial institutions
Net capital increase in repurchase business
Net cash received from vicariously traded securities
Refund of taxes and surcharges	21,527,469.95	21,026,770.27
Cash received from other operating activities	31,058,775.61	14,989,016.60
Subtotal of cash inflows from operating activities	578,355,451.35	489,775,245.32
Cash paid for purchase of goods and rendering of services	262,354,081.90	207,708,632.71
Net increase in loans and advances to customers
Net increase in deposits in Central Bank and other banks and financial institutions
Cash paid for original insurance contract claims
Net increase in lendings to banks and other financial institutions
Cash paid for interest, handling fees and commissions
Cash paid for policy dividends
Cashpaid to and for employees	143,124,378.64	125,445,116.49
Payments of all types of taxes	30,521,553.88	13,491,315.70
Other cash payments relating to operatingactivities	80,839,313.68	78,760,281.87
Subtotal of cash outflows from operating activities	516,839,328.10	425,405,346.77
Net cash flows from operatingactivities	61,516,123.25	64,369,898.55
II. Cash flows from investingactivities:
Cash received from disinvestment	391,746,892.28	485,364,529.75
Cash received from investment income	1,403,273.88	756,078.92
Net cash received from disposal of fixed assets, intangible assets and other long-term assets	52,261.44	178,690.17
Net cash received from disposal of subsidiaries and other business units
Cash received from other investing activities	68,155.00
Subtotal of cash inflows from investing activities	393,270,582.60	486,299,298.84
Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets	67,171,779.69	18,760,852.38
Cashpaid for investments	377,955,825.70	458,834,140.83

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ZKTeco 2024 Q1 Report

Net increase in pledge loans
Net cash paid to acquire subsidiaries and other business units
Cashpaid for other investingactivities
Subtotal of cash outflows from investing activities	445,127,605.39	477,594,993.21
Net cash flows from operatingactivities	-51,857,022.79	8,704,305.63
III. Cash flows from financingactivities:
Cash received from investors
Including: cash received by subsidiaries from the absorption of minorityshareholders' investments
Cash received from borrowings
Cash received from other financing activities	1,678,200.00
Subtotal of cash inflows from financing activities	1,678,200.00
Cash paid for debt repayments	461,997.06
Cash paid for distribution of dividends andprofits orpayment of interest	40,620.29	12,487,260.75
Including: dividends and profits paid to minority shareholders by subsidiaries		12,487,260.75
Cashpaid for other financingactivities	70,795,806.22	7,840,509.20
Subtotal of cash outflows from financing activities	71,298,423.57	20,327,769.95
Net cash flows from financingactivities	-69,620,223.57	-20,327,769.95
IV. Effect of exchange rate changes on cash and cash equivalents	1,057,030.72	-3,672,657.75
V. Net increase in cash and cash equivalents	-58,904,092.39	49,073,776.48
Plus: beginning balance of cash and cash equivalents	1,317,020,553.02	1,077,608,258.10
VI. Closing balance of cash and cash equivalents	1,258,116,460.63	1,126,682,034.58

(II) Implementation of new accounting standards adjustment for the first time starting from 2024. Relevant project information on financial statements at the beginning of the year

□ Applicable  Not applicable

(III) Audit Report

Whether the 2024 1st Quarter Report has been audited □ Yes  No

The Company's Q1 Report has not been audited.

ZKTECO CO., LTD.

Board of Directors

April 26, 2024

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