熵基科技: 熵基科技股份有限公司2024年第一季度报告英文版

                                                                                                               ZKTeco 2024 Q1 Report
    Stock Code: 301330               Abbreviation of Securities: ZKTECO                    Announcement No.: 2024-023
                                                    ZKTECO CO., LTD.
        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:
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.
(accounting supervisor) hereby declare that the financial information in this report is true, accurate and complete.
□ Yes No
                                                                                                                  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
                                                                                                              Increase/decrease in this
                                       Current reporting period              The same period last year      reporting period compared to
                                                                                                            the same period last year (%)
 Operating revenue (RMB)                            399,677,922.33                       403,022,827.48                            -0.83%
 Net profit attributable to
 shareholders of listed                              26,334,496.73                        31,690,542.22                          -16.90%
 companies (RMB)
 Net profit attributable to
 shareholders of listed
 companies after deducting                           21,211,610.69                        30,281,180.21                          -29.95%
 non-recurring profits and
 losses (RMB)
 Net cash flows from operating
 activities (RMB)
 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
                                                                                                             Increase or decrease at the
                                      At the end of this reporting           At the end of the previous      end of this reporting period
                                                period                                  year                 compared to the end of the
                                                                                                                 previous year (%)
 Total assets (RMB)                               3,842,695,159.18                     3,923,900,732.70                            -2.07%
 Owner's equity attributable to
 shareholders of the listed                       3,233,242,654.11                     3,265,413,589.20                            -0.99%
 company (RMB)
(II) Items and Amounts of Non-recurring Gains and Losses
Applicable □ Not applicable
                                                                                                                                Unit: RMB
                                                                   Amount during this reporting
                             Item                                                                                  Remarks
                                                                            period
 Losses and gains from disposal of non-current assets
 (including the offsetting portion of the provision for asset                           -39,306.15
 impairment)
 Government subsidies included in current profits and
 losses (except those closely related to the normal business
                                                                                                      Mainly due to government
 of the Company, which are in line with national policies
 and regulations, enjoyed according to determined
                                                                                                      reporting period
 standards, and have a continuous impact on the
 Company's profits and losses)
 Profits and losses from fair value changes arising from
 the holding of financial assets and financial liabilities by                         1,635,451.13
 non-financial enterprises, as well as the gains and losses
                                                                                                                     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                                                               846,942.22
       Minority interest impact (after tax)                                               70,931.17
  Total                                                                                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
                                                                                     Mainly due to the implementation fee of the new ERP
Other non-current assets          23,158,491.21        16,884,605.85          37.16%
                                                                                     system paid in the current period
                                                                                     Mainly due to the payment of previous years' corporate
Taxes and dues payable            14,664,359.01        28,892,229.44         -49.24%
                                                                                     income tax in the current period
                                                                                     Mainly due to the repurchase of shares in the current
Treasury stock                    59,683,228.10           784,700.00        7505.87%
                                                                                     period
                               January-March       January-March
Income Statement Items                                                  Change ratio                           Reasons
                                                                                     Mainly due to the tax increase in the first quarter of this
Taxes and surcharges                5,753,958.79        2,815,533.99         104.36% year calculated and determined by local regulations for
                                                                                     some overseas subsidiaries
                                                                                     Mainly due to the year-on-year increase in R&D
Other income                        5,343,759.73         3,354,811.90         59.29%
                                                                                     subsidies received by subsidiaries in the current period
Gains from changes in fair
value
Losses from credit                                                                   Mainly due to the decrease in accounts receivable at the
impairment (loss expressed          1,471,208.38          818,545.26          79.73% end of this period, resulting in the reversal of bad debt
with "-")                                                                            reserves
                               January-March       January-March
Cash Flow Statement Items                                               Change ratio                           Reasons
                                                                                     Mainly due to a decrease in current mature financial
Net cash flows from
                                  -51,857,022.79        8,704,305.63        -695.76% products and an increase in investment in ongoing
operating activities
                                                                                     projects
Net cash flows from                                                                  Mainly due to the payment of stock repurchase funds
                                  -69,620,223.57       -20,327,769.95       -242.49%
financing activities                                                                 in the current period
                                                                                     Mainly due to a decrease in net cash flow from
Net increase in cash and
                                  -58,904,092.39       49,073,776.48        -220.03% investing activities and financing activities in the
cash equivalents
                                                                                     current period
                                                                                                            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
 Total number of common                                   Total number of preferred shareholders whose voting
 shareholders at the end of the                 19,470    rights have been recovered at the end of the reporting                   0
 reporting period                                         period (if any)
                        Particulars about the top 10 shareholders (excluding shares lent through refinancing)
                                                                                Number of            Pledge, marking or frozen
                                                            Total shares
    Name of            Nature of        Shareholding                            shares with
                                                             held at the
   shareholder        shareholder      percentage (%)                             trading         Share status        Amount
                                                            period-end
                                                                                restrictions
 Shenzhen
                    Domestic non
 ZKTeco Times
                    state-owned                30.05%       58,500,000.00      58,500,000.00    Not applicable                   0.00
 Investment Co.,
                    corporation
 Ltd.
                    Domestic
 Che Quanhong                                  17.48%       34,022,300.00      34,022,300.00    Not applicable                   0.00
                    individual
 Shenzhen JYSJ
 Investment         Domestic non
 Enterprise         state-owned                 7.25%       14,107,600.00      10,580,700.00    Not applicable                   0.00
 (Limited           corporation
 Partnership)
 Shenzhen
 JYHY
                    Domestic non
 Investment
                    state-owned                 7.15%       13,921,050.00      10,440,787.00    Not applicable                   0.00
 Enterprise
                    corporation
 (Limited
 Partnership)
 Dongguan LX
 Investment
                    Domestic non
 Partnership
                    state-owned                 5.08%        9,880,000.00       9,880,000.00    Not applicable                   0.00
 Enterprise
                    corporation
 (Limited
 Partnership)
 Shenzhen
 JYLX
                    Domestic non
 Consulting
                    state-owned                 2.42%        4,717,910.00       3,561,285.00    Not applicable                   0.00
 Enterprise
                    corporation
 (Limited
 Partnership)
 Shenzhen
 JYQL
 Investment         Domestic non
 Consulting         state-owned                 0.89%        1,724,900.00       1,322,100.00    Not applicable                   0.00
 Enterprise         corporation
 (Limited
 Partnership)
  Huaxin
 Yuanchuang
 (Qingdao)          Others                      0.87%        1,701,621.00                0.00   Not applicable                   0.00
 Investment
 Management
                                                                                                            ZKTeco 2024 Q1 Report
Co., Ltd. -
Qingdao
Walden
Zhongxiang
Investment
Center (Limited
Partnership)
Hong Kong
Securities
                  Overseas
Clearing                                       0.36%          700,997.00                  0.00   Not applicable                0.00
                  corporation
Company
Limited
Shenzhen
Gohedge Fund
Management
Co., Ltd. -       Others                       0.35%          688,580.00                  0.00   Not applicable                0.00
Gohedge Pearl
No.1 Private
Equity Fund
   Particulars about shares held by the Top 10 common shareholders holding shares that are not subject to trading restriction(s)
                                                                                                           Types of shares
       Name of shareholder                Number of shares without trading restrictions
                                                                                                      Types             Amount
                                                                                                 RMB
Shenzhen JYSJ Investment
Enterprise (Limited Partnership)
                                                                                                 ordinary shares
                                                                                                 RMB
Shenzhen JYHY Investment
Enterprise (Limited Partnership)
                                                                                                 ordinary shares
 Huaxin Yuanchuang (Qingdao)
Investment Management Co., Ltd.                                                                  RMB
- Qingdao Walden Zhongxiang                                                    1,701,621.00      denominated          1,701,621.00
Investment Center (Limited                                                                       ordinary shares
Partnership)
                                                                                                 RMB
Shenzhen JYLX Consulting
Enterprise (Limited Partnership)
                                                                                                 ordinary shares
                                                                                                 RMB
Hong Kong Securities Clearing
Company Limited
                                                                                                 ordinary shares
Shenzhen Gohedge Fund                                                                            RMB
Management Co., Ltd. - Gohedge                                                   688,580.00      denominated            688,580.00
Pearl No.1 Private Equity Fund                                                                   ordinary shares
Shenzhen Fuhai Juanyong I                                                                        RMB
Venture Investment Fund (Limited                                                 666,138.00      denominated            666,138.00
Partnership)                                                                                     ordinary shares
Shenzhen JYQL Investment                                                                         RMB
Consulting Enterprise (Limited                                                   402,800.00      denominated            402,800.00
Partnership)                                                                                     ordinary shares
Changjiang Wealth Asset
Management - Bank of Nanjing -
                                                                                                 RMB
Changjiang Wealth - ZKTeco
Employee Strategic Placement
                                                                                                 ordinary shares
No.1 Collective Asset
Management Plan
                                                                                                 RMB
Zhuo Qiugang                                                                     299,790.00                             299,790.00
                                                                                                 denominated
                                                                                                                 ZKTeco 2024 Q1 Report
                                                                                                     ordinary shares
                                                             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
 Explanation on associated relationship and concerted        holds 1.18% of the property share of shareholder Dongguan LX
 actions among above shareholders                            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.
                                                             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
 Information on Top 10 shareholders of participating         shares held through a margin account of CITIC Securities Co., Ltd.
 in margin trading and short selling business (if any)       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
□ Applicable Not applicable
(III) Changes in Restricted Shares
□ Applicable Not applicable
III. Other Important Events
Applicable □ Not applicable
                                                                                                               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
Prepared by: ZKTECO CO., LTD.
                                                            March 31, 2024
                                                                                                                             Unit: RMB
                    Item                                    March 31, 2024                                January 1, 2024
 Current assets:
    Monetary funds                                                     1,884,448,540.69                              1,990,924,954.78
    Deposit reservation for balance
    Lendings to banks and other financial
 institutions
    Trading financial 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 one year                                 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 equity investment                                             29,487,115.99                                29,781,888.62
   Other equity instrument investments
                                                                   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 in progress                       175,005,695.51          138,986,483.73
  Productive biological assets
  Oil and gas 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
   Trading financial liabilities
   Derivative financial liabilities
   Notes payable                                 109,360,178.00          122,573,544.09
   Accounts payable                              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
   Acting trading securities
   Acting underwriting securities
   Payroll payable                                52,007,326.34           56,630,101.98
   Taxes and dues payable                         14,664,359.01           28,892,229.44
   Other payables                                 40,586,069.69           36,735,314.36
     Including: interest payable
              Dividends payable
   Handling charges and commissions
payable
   Reinsurance accounts receivable
   Liabilities held for sale
   Non-current liabilities due within one
year
   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
   Bonds payable
     Including: preferred stock
              Perpetual bonds
   Lease liabilities                              19,799,481.86           19,713,286.21
   Long-term payables
   Long-term payroll payable
   Estimated liabilities                              600,000.00             600,000.00
   Deferred income                                  1,807,011.40           1,853,549.62
                                                                                                         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 equity instruments
      Including: preferred stock
               Perpetual bonds
   Capital reserve                                                   2,079,667,212.27                          2,075,479,375.13
   Less: treasury stock                                                 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
   Undistributed profits                                              933,917,521.11                             907,583,024.38
 Total owner's equity attributable to the
 parent company
   Minority interests                                                   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
                                                                                                                      Unit: RMB
                      Item                                 2024 Q1                                     2023 Q1
 I. Total operating revenue                                           399,677,922.33                             403,022,827.48
    Including: operating revenue                                      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
                                                                    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 "-")
            Including: income from
investment in associates and joint                    -314,021.14             806,641.55
ventures
                    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 "-")
         Losses from credit impairment
(loss expressed with "-")
         Losses from impairment of assets
                                                    -2,438,868.00           -3,282,698.64
(loss expressed with "-")
         Gains from disposal of assets
                                                       -39,306.15            -203,207.68
(loss expressed with "-")
III. Operating profit (loss expressed with
"-")
   Plus: non-operating revenue                         291,427.78              96,744.56
   Less: non-operating expenditure                     101,483.14             304,657.32
IV. Total profit (loss expressed with "-")          27,597,315.93          39,046,301.90
   Less: income tax expenses                           264,464.17           1,529,528.60
V. Net profit (loss expressed with "-")             27,332,851.76          37,516,773.30
   (I) Classification by business
continuity
operations (net loss expressed with "-")
operations (net loss expressed with "-")
   (II) Classification by ownership
of parent company
loss
VI. Other comprehensive income - after
                                                    -3,505,044.17           -4,779,705.56
tax
   Net of tax of other comprehensive
income attributable to the owner of the             -3,794,740.86           -4,816,630.30
parent company
      Other comprehensive income that
cannot be transferred to profit or loss
the defined benefit plan
that cannot be transferred to profit or loss
under the equity method
                                                                                                               ZKTeco 2024 Q1 Report
  equity instrument investments
  Company's own credit risk
        (2) Other comprehensive income
                                                                           -3,794,740.86                                  -4,816,630.30
  that will be reclassified into profit or loss
  that can be transferred to profit or loss
  under the equity method
  debt investments
  reclassified into other comprehensive
  income
  of other debt investments
                                                                           -3,794,740.86                                  -4,816,630.30
  foreign currency financial statements
     After-tax net amount of other
  comprehensive income attributable to the                                     289,696.69                                     36,924.74
  minority shareholders
  VII. Total comprehensive income                                          23,827,807.59                                 32,737,067.74
     Total comprehensive income
  attributable to owners of the parent                                     22,539,755.87                                 26,873,911.92
  company
     Total comprehensive income
  attributable to minority shareholders
  VIII. Earnings per 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
                                                                                                                             Unit: RMB
                    Item                                        2024 Q1                                      2023 Q1
 I. Cash flows from operating activities:
    Cash received from sale of goods and
 rendering of services
   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
                                                                  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
Subtotal of cash inflows from operating
activities
  Cash paid for purchase of goods and
rendering of services
  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
   Cash paid 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
operating activities
Subtotal of cash outflows from operating
activities
Net cash flows from operating activities          61,516,123.25          64,369,898.55
II. Cash flows from investing activities:
   Cash received from disinvestment              391,746,892.28         485,364,529.75
   Cash received from investment
income
   Net cash received from disposal of
fixed assets, intangible assets and other             52,261.44             178,690.17
long-term assets
   Net cash received from disposal of
subsidiaries and other business units
   Cash received from other investing
activities
Subtotal of cash inflows from investing
activities
   Cash paid to acquire and construct
fixed assets, intangible assets and other         67,171,779.69          18,760,852.38
long-term assets
  Cash paid for investments                      377,955,825.70         458,834,140.83
                                                                                 ZKTeco 2024 Q1 Report
   Net increase in pledge loans
    Net cash paid to acquire subsidiaries
 and other business units
    Cash paid for other investing activities
 Subtotal of cash outflows from investing
 activities
 Net cash flows from operating activities                     -51,857,022.79             8,704,305.63
 III. Cash flows from financing activities:
    Cash received from investors
       Including: cash received by
 subsidiaries from the absorption of
 minority shareholders' investments
    Cash received from borrowings
    Cash received from other financing
 activities
 Subtotal of cash inflows from financing
 activities
   Cash paid for debt repayments                                 461,997.06
    Cash paid for distribution of dividends
 and profits or payment of interest
      Including: dividends and profits
 paid to minority shareholders by                                                       12,487,260.75
 subsidiaries
    Cash paid for other financing activities                  70,795,806.22              7,840,509.20
 Subtotal of cash outflows from financing
 activities
 Net cash flows from financing activities                     -69,620,223.57            -20,327,769.95
 IV. Effect of exchange rate changes on
 cash and cash equivalents
 V. Net increase in cash and cash
                                                              -58,904,092.39            49,073,776.48
 equivalents
    Plus: beginning balance of cash and
 cash equivalents
 VI. Closing balance of cash and cash
 equivalents
(II) Implementation of new accounting standards adjustment for the first time starting from
□ 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