熵基科技: 熵基科技股份有限公司2025年第三季度报告（英文版）

                                                                                                ZKTeco 2025 Q3 Report
Stock Code: 301330              Abbreviation of Securities: ZKTECO               Announcement No.: 2025-094
                                          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:
report is true, accurate and complete without any false records, misleading statements or material omissions, and
will undertake individual and joint legal liabilities.
of accounting institution (accounting supervisor) hereby declare that the financial information in this report is true,
accuracy and complete.
    □ Yes   No
                                                                                                                   ZKTeco 2025 Q3 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
                                                                                         From the beginning of
                                                            YoY change during the                                      reporting period
                             Current reporting period                                    2025 to the end of the
                                                              reporting period                                      compared to the same
                                                                                            reporting period
                                                                                                                        period last year
Operating revenue (RMB)                472,049,030.10                          -7.04%           1,401,307,789.60                     -0.68%
Net profit attributable to
shareholders of listed                  34,979,086.76                        -16.80%              128,214,643.04                      6.24%
companies (RMB)
Net profit attributable to
shareholders of listed
companies after deducting               31,045,595.83                        -19.98%              115,476,509.32                      8.97%
non-recurring profits and
losses (RMB)
Net cash flows from
operating activities                                  --                            --            260,778,127.99                     91.55%
(RMB)
Basic earnings per share
(RMB/share)
Diluted earnings per share
(RMB/share)
Weighted average return
on net assets
                                At the end of this         At the end of the previous    Increase or decrease at the end of this reporting
                                reporting period                      year               period compared to the end of the previous year
Total assets (RMB)                   4,264,413,893.34               4,014,623,523.49                                                  6.22%
Owner's equity
attributable to
shareholders of the listed
company (RMB)
(II) Items and Amounts of Non-recurring Gains and Losses
Applicable     □Not applicable
                                                                                                                                Unit: RMB
                                                                               Amount from the beginning
                                                     Amount during this
                      Item                                                      of 2025 to the end of the              Remarks
                                                      reporting period
                                                                                    reporting period
Losses and gains from disposal of non-current
assets (including the offsetting portion of the                   426,244.57                    269,445.71
provision for asset impairment)
                                                                                                                  ZKTeco 2025 Q3 Report
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,                     299,995.58                  1,906,382.99
enjoyed according to determined 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 non-financial enterprises,                                                       Mainly due to investment
as well as the gains and losses arising from the               4,557,291.17                 14,008,499.28 income and fair value changes
disposal of financial assets and financial                                                                generated by financial products
liabilities except for effective hedging business
related to the normal operation of the Company
Reversal of the provision on receivables with
impairment test conducted on an individual basis                  62,822.50                    160,000.00
Other non-operating income and expenses other
                                                                -812,799.13                  -1,951,874.06
than the above items
Less: income tax impact                                          582,405.48                   1,414,966.29
      Minority interest impact
(after tax)
Total                                                          3,933,490.93                 12,738,133.72                --
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 profit and loss.
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
                                                                                                                              Unit: RMB
 Balance Sheet Items       September 30, 2025         January 1, 2025       Change ratio                      Reasons
                                                                                          Mainly due to the purchase of financial
                                                                                          products, and distribution of profits (cash
Monetary funds                    988,982,325.23       1,473,334,905.97           -32.87% dividends) from the previous year in current
                                                                                          period
                                                                                         Mainly due to the increase in wealth
Trading financial assets         1,150,068,992.48       491,331,815.79           134.07% management products such as structured
                                                                                         deposits in the current period
                                                                                          Mainly due to the recovery of export tax rebates
Other receivables                  24,066,964.03         41,144,121.16            -41.51% receivable at the beginning of the period in the
                                                                                          current period
                                                                                                             ZKTeco 2025 Q3 Report
Non-current assets due                                                             Mainly due to the decrease in the maturity of
within one year                                                                    time deposits maturing within one year
                                                                                 Mainly due to the addition of one-year large-
Other current assets           54,151,886.89      33,070,816.00           63.75% denomination certificates of deposit in the
                                                                                 current period
                                                                                   Mainly due to the new employee housing
Long-term receivables          13,131,615.06        5,479,301.55      139.66%
                                                                                   purchase loans in the current period
Long-term deferred                                                                 Mainly due to the increase in decoration projects
expenses                                                                           in this period
                                                                                   Mainly due to the receipt of bank acceptance
Short-term loan               103,627,020.93         -                /            bills and letters of credit discount in the current
                                                                                   period
                                                                                 Mainly due to the appropriate extension of the
                                                                                 bill period of some suppliers in the current
Notes payable                 244,246,444.32     134,784,219.75           81.21%
                                                                                 period and the increase in the balance of notes
                                                                                 payable that have not yet matured
                                                                                 Mainly due to the increase in corporate income
Taxes payable                  27,347,767.22      20,281,098.96           34.84% tax and property tax payable in the current
                                                                                 period
                                                                                 Mainly due to the increase in the liability
Other payables                 59,815,543.60      45,821,035.19           30.54% recognized for the repurchase obligation in the
                                                                                 current share payment
                                                                               Mainly due to the reclassification of long-term
Long-term loan                    203,786.23       7,021,328.89        -97.10% borrowings due within one year into non-current
                                                                               liabilities due within one year
                                                                                 Mainly due to the increase in the equity
Minority interests             42,252,208.31      27,650,759.04           52.81% recognized by minority shareholders of some
                                                                                 overseas subsidiaries in the current period
  Income Statement       January - September January - September
                                                                 Change ratio                           Reasons
       Items                    2025                2024
                                                                               Mainly due to the increase in exchange income
Financial expenses             -23,928,435.92     -13,892,864.00       -72.24% in the current period (exchange loss in the same
                                                                               period last year)
                                                                                 Mainly due to the increase in income generated
Gains from changes in
fair value
                                                                                 products in the current period
                                                                               Mainly due to the increase in the provision for
Losses from credit
                                -4,154,894.01      -2,778,896.29       -49.52% bad debts of accounts receivable in the current
impairment
                                                                               period
                                                                                                         ZKTeco 2025 Q3 Report
Losses from                                                                      Mainly due to the increase in the provision for
                               -11,733,617.63      -5,994,941.10       -95.73%
impairment of assets                                                             depreciation in the current period
                                                                              Mainly due to the increase in income from the
Gains from disposal of
assets
                                                                              period
                                                                                 Mainly due to the large amount that does not
non-operating revenue            1,542,371.80       2,507,995.03       -38.50%
                                                                                 need to be paid in the previous period
                                                                               Mainly due to the increase in current corporate
Income tax expenses            11,887,655.96        8,111,368.11        46.56% income tax recognized by some overseas
                                                                               subsidiaries in the current period
 Cash Flow Statement     January - September January - September
                                                                 Change ratio                        Reasons
        Items                   2025                2024
                                                                               Mainly due to the increase in cash flow received
                                                                               from the sale of goods and the provision of
Net cash flows from
operating activities                                                           decrease in cash flow from purchasing goods
                                                                               and receiving payment for services
                                                                               Mainly due to the increase in the purchase of
Net cash flows from                                                            wealth management products and structured
                              -822,982,545.26    -451,646,981.53       -82.22%
investing activities                                                           deposits in the current period compared with the
                                                                               same period last year
                                                                              Mainly due to the receipt of notes receivable,
Net cash flows from
                               -17,964,657.71    -181,047,518.00       90.08% letter of credit discount and share repurchase
financing activities                                                          payment in the previous period
                                                                               Mainly due to the combined impact of net cash
Net increase in cash
                              -579,423,524.03    -501,361,903.62       -15.57% flow from operating activities, investment
and cash equivalents                                                           activities and financing activities
                                                                                                                   ZKTeco 2025 Q3 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 preferred shareholders whose
Total number of common shareholders at the end of
the reporting period
                                                                         reporting period (if any)
                         Particulars about the top 10 shareholders (excluding shares lent through refinancing)
                                                                                            Number of          Pledged, marked or frozen
                                                                           Total shares
                                                         Shareholding                       shares with
     Name of shareholder        Nature of shareholder                       held at the
                                                          percentage                          trading           Share status       Amount
                                                                           period-end
                                                                                            restrictions
Shenzhen ZKTeco Times           Domestic non state-
Investment Co., Ltd.            owned legal persons
Che Quanhong                    Domestic individual               17.35%      40,826,760      40,826,760       Not applicable          0
Shenzhen JYHY Investment         Domestic non state-
Enterprise (Limited Partnership) owned legal persons
Shenzhen JYSJ Investment         Domestic non state-
Enterprise (Limited Partnership) owned legal persons
Dongguan LX Investment
                                Domestic non state-
Partnership Enterprise (Limited                                    5.04%      11,856,000                   0   Not applicable          0
                                owned legal persons
Partnership)
Shenzhen JYLX Consulting         Domestic non state-
Enterprise (Limited Partnership) owned legal persons
ZKTECO CO., LTD.-2025
Employee Stock Ownership        others                             0.57%        1,336,560                  0   Not applicable          0
Plan
Shenzhen JYQL Investment
                               Domestic non state-
Consulting Enterprise (Limited                                     0.48%        1,135,260        528,840       Not applicable          0
                               owned legal persons
Partnership)
Hong Kong Securities Clearing
                              Foreign legal person                 0.40%          942,193                  0   Not applicable          0
Company Limited
Han Xiao                        Domestic individual                0.32%          759,280                  0   Not applicable          0
                              Particulars about the top 10 shareholders not subject to trading restrictions
                               (excluding shares lent through refinancing and executive lockup shares)
                                                                                                                 Types of shares
                Name of shareholder                      Number of shares without trading restrictions
                                                                                                                Type           Number
Dongguan LX Investment Partnership Enterprise                                                            RMB denominated
(Limited Partnership)                                                                                    ordinary shares
Shenzhen JYHY Investment Enterprise (Limited                                                             RMB denominated
Partnership)                                                                                             ordinary shares
                                                                                                                  ZKTeco 2025 Q3 Report
Shenzhen JYSJ Investment Enterprise (Limited                                                                RMB denominated
Partnership)                                                                                                ordinary shares
Shenzhen JYLX Consulting Enterprise (Limited                                                                RMB denominated
Partnership)                                                                                                ordinary shares
ZKTECO CO., LTD.-2025 Employee Stock                                                                      RMB denominated
Ownership Plan                                                                                            ordinary shares
                                                                                                          RMB denominated
Hong Kong Securities Clearing Company Limited                                                     942,193                   942,193
                                                                                                          ordinary shares
                                                                                                            RMB denominated
Han Xiao                                                                                          759,280                          759,280
                                                                                                            ordinary shares
                                                                                                            RMB denominated
Liu Yunlai                                                                                        699,952                          699,952
                                                                                                            ordinary shares
Shenzhen JYQL Investment Consulting Enterprise                                                              RMB denominated
(Limited Partnership)                                                                                       ordinary shares
                                                                                                            RMB denominated
Liu Chunli                                                                                        400,000                          400,000
                                                                                                            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 holds 1.18%
                                                                           of the property share of shareholder Dongguan LX Investment
                                                                           Partnership Enterprise (Limited Partnership) and 8.65% of the
Explanation on associated relationship and concerted actions among
                                                                           property share of shareholder Shenzhen JYLX Consulting
above shareholders
                                                                           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
                                                                           Partnership Enterprise (Limited Partnership).
                                                                           In addition the company does not know whether there is an
                                                                           associated relationship or a concerted action relationship
                                                                           among the other shareholders.
Information on Top 10 shareholders of participating in margin trading
                                                                           No
and short selling business (if any)
Note: Special explanations on the existence of repurchased accounts among the top 10 shareholders not subject to trading restrictions
As of September 30, 2025, the Company's repurchased special securities account holds 1,116,200 ordinary shares, accounting for 0.47%
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
                                                                                                                   ZKTeco 2025 Q3 Report
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) Total Number of Preferred Shareholders and information about Top 10 Preferred Shareholders
 □Applicable       Not Applicable
(III) Changes in Restricted Shares
  Applicable      □Not applicable
                                                                                                                              Unit: share
                         Number of      Number of shares Increase in          Number of
     Name of          restricted shares   released from       restricted restricted shares     Reason for        Date of releasing from
    shareholder       at the beginning trading restrictions shares in this at the end of the   restrictions       trading restrictions
                        of the period     in this period        period          period
                                                                                            Restricted
Che Quanhong                34,022,300                    0     6,804,460        40,826,760 shares before February 17, 2026
                                                                                            IPO
Shenzhen ZKTeco                                                                             Restricted
Times Investment            58,500,000                    0   11,700,000         70,200,000 shares before     February 17, 2026
Co., Ltd.                                                                                   IPO
Dongguan LX
Investment                                                                                   Restricted
                                                                                                              Has been listed and circulated
Partnership                  9,880,000         11,856,000       1,976,000                  0 shares before
                                                                                                              on August 17, 2025
Enterprise (Limited                                                                          IPO
Partnership)
Shenzhen JYHY                                                                                                 One quarter of the shares will
                                                                                            Restricted
Investment                                                                                                    be unlocked from August 17,
Enterprise (Limited                                                                                           2023, until all shares are
                                                                                            IPO
Partnership)                                                                                                  unlocked on August 17, 2026
Shenzhen JYSJ                                                                                                 One quarter of the shares will
                                                                                            Restricted
Investment                                                                                                    be unlocked from August 17,
Enterprise (Limited                                                                                           2023, until all shares are
                                                                                            IPO
Partnership)                                                                                                  unlocked on August 17, 2026
Shenzhen JYQL
                                                                                                              One quarter of the shares will
Investment                                                                                  Restricted
                                                                                                              be unlocked from August 17,
Consulting                     881,400             528,840        176,280           528,840 shares before
Enterprise (Limited                                                                         IPO
                                                                                                              unlocked on August 17, 2026
Partnership)
Shenzhen JYLX                                                                                                 One quarter of the shares will
                                                                                            Restricted
Consulting                                                                                                    be unlocked from August 17,
Enterprise (Limited                                                                                           2023, until all shares are
                                                                                            IPO
Partnership)                                                                                                  unlocked on August 17, 2026
                                                                                                              During the tenure of
                                                                                                              directors, supervisors and
                                                                                            Executives
                                                                                                              senior executives, 25% of the
Jin Hairong                     11,700                    0         2,340            14,040 lock up
                                                                                                              total number of shares held
                                                                                            shares
                                                                                                              will be unlocked every year,
                                                                                                              and the remaining 75% will
                                                                                  ZKTeco 2025 Q3 Report
                                                                             be automatically locked
                                                                             During the tenure of
                                                                             directors, supervisors and
                                                                Executives   senior executives, 25% of the
Mu Wenting       17,550            0         3,510       21,060 lock up      total number of shares held
                                                                shares       will be unlocked every year,
                                                                             and the remaining 75% will
                                                                             be automatically locked
                                                                             During the tenure of
                                                                             directors, supervisors and
                                                                Executives   senior executives, 25% of the
Fu Zhiqian       10,724            0         2,146       12,870 lock up      total number of shares held
                                                                shares       will be unlocked every year,
                                                                             and the remaining 75% will
                                                                             be automatically locked
Total        119,712,188   22,217,948   23,942,439   121,436,679      --                   --
                                                                                                                ZKTeco 2025 Q3 Report
III. Other Important Events
Applicable    □ Not applicable
The shares that have been lifted this time are part of the shares issued before the company's initial public offering; The total number of
shareholders involved is 5,and the number of restricted shares listed and traded is 22,217,948 shares, accounting for 9.44% of the
company's total share capital. The above-mentioned shares will be lifted from sales restrictions and will be listed for circulation on
August 18, 2025. For details, please refer to the "Indicative Announcement on the Listing and Circulation of Certain Shares Issued
Before the Initial Public Offering" (Announcement No.: 2025-069) disclosed by the company on www.cninfo.com.cn on August 14,
IV. Quarterly Financial Statements
(I) Financial Statements
Prepared by: ZKTECO CO., LTD.
                                                           September 30, 2025
                                                                                                                              Unit: RMB
                    Item                                   September 30, 2025                             January 1, 2025
Current assets:
   Monetary funds                                                            988,982,325.23                             1,473,334,905.97
   Deposit reservation for balance
   Lendings to banks and other financial
institutions
   Trading financial assets                                                1,150,068,992.48                               491,331,815.79
   Derivative financial assets
   Notes receivable                                                              327,358.76                                  165,450.00
   Accounts receivable                                                       503,420,711.07                              519,014,337.89
   Receivable financing
   Prepayments                                                                21,232,756.50                                 26,561,472.98
   Premiums receivable
   Reinsurance accounts receivable
   Reserves for reinsurance contract
receivable
   Other receivables                                                          24,066,964.03                                 41,144,121.16
      Including: interest receivable
             Dividends receivable
   Buying back the sale of financial assets
   Inventories                                                               359,534,770.43                              335,306,397.14
      Including: Data resources
   Contract assets                                                                 33,581.84                                  212,795.14
   Held-for-sale assets
   Non-current assets due within one year                                      8,744,011.77                               20,383,238.35
   Other current assets                                                       54,151,886.89                               33,070,816.00
Total current assets                                                       3,110,563,359.00                            2,940,525,350.42
Non-current assets:
   Loans and advances to customers
   Debt investment                                                            18,471,990.35                                 15,775,806.16
   Other debt investment
   Long-term receivables                                                      13,131,615.06                                  5,479,301.55
                                                                    ZKTeco 2025 Q3 Report
   Long-term equity investment                     29,114,826.48            28,982,092.23
   Other equity instrument investments
   Other non-current financial assets
   Investment real estate                          20,273,437.71            21,504,316.77
   Fixed assets                                   623,774,301.76           535,337,384.82
   Construction in progress                       198,503,839.77           226,445,932.02
   Productive biological assets
   Oil and gas assets
   Right-of-use assets                             45,412,481.41            48,352,214.14
   Intangible assets                              100,461,684.58            99,844,396.80
      Including: Data resources
   Development expenditures
      Including: Data resources
   Goodwill                                            506,428.74               512,337.25
   Long-term deferred expenses                       7,362,258.08             5,555,537.61
   Deferred income tax assets                       93,314,262.40            81,688,798.50
   Other non-current assets                          3,523,408.00             4,620,055.22
Total non-current assets                         1,153,850,534.34         1,074,098,173.07
Total assets                                     4,264,413,893.34         4,014,623,523.49
Current liabilities:
   Short-term loan                                103,627,020.93
   Borrowings from the Central Bank
   Borrowings from banks and other
financial institutions
   Trading financial liabilities
   Derivative financial liabilities
   Notes payable                                  244,246,444.32           134,784,219.75
   Accounts payable                               200,935,673.03           225,414,642.83
   Advances from customer
   Contract liabilities                            74,640,552.63            71,168,318.91
   Financial assets sold for repurchase
   Deposit from customers and interbank
   Acting trading securities
   Acting underwriting securities
   Payroll payable                                 38,489,794.30            53,990,974.31
   Taxes payable                                   27,347,767.22            20,281,098.96
   Other payables                                  59,815,543.60            45,821,035.19
      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                        9,419,832.59            12,060,579.96
Total current liabilities                         787,447,390.97           586,343,518.78
Non-current liabilities:
   Reserves for insurance contracts
   Long-term loan                                     203,786.23              7,021,328.89
   Bonds payable
      Including: preferred stock
              Perpetual bonds
   Lease liabilities                               26,265,659.94            29,108,076.76
                                                                                                       ZKTeco 2025 Q3 Report
  Long-term payables
  Long-term payroll payable
  Estimated liabilities
  Deferred income                                                       1,375,746.10                              1,420,041.44
  Deferred income tax liabilities                                      11,424,210.09                             12,730,094.50
  Other non-current liabilities
Total non-current liabilities                                          39,269,402.36                             50,279,541.59
Total liabilities                                                     826,716,793.33                            636,623,060.37
Owner's equity:
  Share capital                                                       235,351,550.00                            196,312,325.00
  Other equity instruments
     Including: preferred stock
              Perpetual bonds
  Capital reserve                                                    2,061,780,213.54                          2,107,323,633.23
  Less: treasury stock                                                  44,078,890.10                             59,683,228.10
  Other comprehensive income                                            47,293,271.51                             41,914,807.74
  Special reserve
  Surplus reserves                                                     64,002,687.03                             64,002,687.03
  General risk reserves
  Undistributed profits                                              1,031,096,059.72                          1,000,479,479.18
Total owner's equity attributable to the
parent company
  Minority interests                                                    42,252,208.31                             27,650,759.04
Total owner's equity                                                 3,437,697,100.01                          3,378,000,463.12
Total liabilities and owner's equity                                 4,264,413,893.34                          4,014,623,523.49
Legal Representative: Jin Hairong. Person in charge of accounting work: Wang Youwu. Person in charge of accounting institution:
Xu Ping
                                                                                                                    Unit: RMB
                    Item                                   2025 Q3                                   2024 Q3
I. Total operating revenue                                           1,401,307,789.60                          1,410,900,152.75
   Including: operating revenue                                      1,401,307,789.60                          1,410,900,152.75
           Interest income
           Premium earned
           Revenue from handling charges
and commissions
II. Total operating cost                                             1,242,017,880.72                          1,283,744,507.66
   Including: operating cost                                           685,253,348.05                            715,444,301.66
           Interest expenses
           Expenses from handling charges
and commissions
           Surrender value
           Net payments for insurance
claims
           Net provisions for reserves in
insurance liability contracts
           Policy dividend expenses
           Reinsurance expenses
           Taxes and surcharges                                        18,200,278.50                             19,112,324.06
           Selling expenses                                           318,154,101.07                            319,291,166.12
                                                                      ZKTeco 2025 Q3 Report
           Administrative expenses                    86,935,505.33           80,418,280.82
           R&D expenses                              157,403,083.69          163,371,299.00
           Financial expenses                        -23,928,435.92          -13,892,864.00
             Including: interest expenses              1,909,142.76            2,939,981.92
                     Interest income                  21,366,682.91           33,268,254.31
   Plus: other income                                  8,266,846.83           11,570,705.16
        Investment income ( loss expressed
with "-")
             Including: income from
investment in associates and joint 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              11,143,032.25            8,190,593.67
(loss expressed with "-")
        Losses from credit impairment (loss
                                                      -4,154,894.01            -2,778,896.29
expressed with "-")
        Losses from impairment of assets
                                                     -11,733,617.63            -5,994,941.10
(loss expressed with "-")
        Gains from disposal of assets (loss
expressed with "-")
III. Operating profit (loss expressed with "-
")
   Plus: non-operating revenue                         1,542,371.80            2,507,995.03
   Less: non-operating expenditure                     3,490,596.72            3,891,679.49
IV. Total profit (loss expressed with "-")           165,575,585.90          141,531,508.60
   Less: income tax expenses                          11,887,655.96            8,111,368.11
V. Net profit (loss expressed with "-")              153,687,929.94          133,420,140.49
   (I) Classification by business continuity
operations (net loss expressed with "-")
operations (net loss expressed with "-")
   (II) Classification by ownership
shareholders of the parent company (net              128,214,643.04          120,678,385.94
loss expressed with "-")
loss(net loss expressed with "-")
VI. Other comprehensive income - after tax             7,271,833.32            5,075,837.07
   Net of tax of other comprehensive
income attributable to the owner of the                5,378,463.77            3,892,780.70
parent company
     (I)Other comprehensive income that
cannot be transferred to profit or loss
defined benefit plan
                                                                                                               ZKTeco 2025 Q3 Report
cannot be transferred to profit or loss under
the equity method
equity instrument investments
Company's own credit risk
     (II) Other comprehensive income that
will be reclassified into profit or loss
can be transferred to profit or loss under the
equity method
debt investments
reclassified into other comprehensive
income
other debt investments
currency financial statements
   After-tax net amount of other
comprehensive income attributable to the                                      1,893,369.55                                 1,183,056.37
minority shareholders
VII. Total comprehensive income                                            160,959,763.26                                138,495,977.56
   Total comprehensive income attributable
to owners of the parent company
   Total comprehensive income attributable
to minority shareholders
VIII. EPS:
   (I) Basic EPS                                                                    0.5500                                        0.5212
  (II) Diluted EPS                                                                  0.5483                                        0.5182
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 0.00, and the net profit realized by the combined party in the previous period is RMB 0.00.
Legal Representative: Jin Hairong Person in charge of accounting work: Wang Youwu Person in charge of accounting institution: Xu
Ping
                                                                                                                             Unit: RMB
                     Item                                       2025 Q3                                      2024 Q3
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
                                                                        ZKTeco 2025 Q3 Report
   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
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                      78,850,119.28            60,316,610.02
   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                     401,661,939.50           425,640,836.80
   Payments of all types of taxes                      61,768,914.13            70,818,064.05
   Other cash payments relating to operating
activities
Subtotal of cash outflows from operating
activities
Net cash flows from operating activities              260,778,127.99           136,138,600.04
II. Cash flows from investing activities:
   Cash received from disinvestment                  1,926,486,255.76          902,775,551.21
   Cash received from investment income                 15,083,906.12            5,102,718.06
   Net cash received from disposal of fixed
assets, intangible assets and other long-term             568,471.71                64,134.09
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
                                                                            ZKTeco 2025 Q3 Report
  Cash paid to acquire and construct fixed
assets, intangible assets and other long-term           107,871,830.76             156,725,908.68
assets
  Cash paid for investments                            2,657,535,151.32           1,202,931,631.21
  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 investing activities               -822,982,545.26             -451,646,981.53
III. Cash flows from financing activities:
   Cash received from investors                           1,280,028.24
      Including: cash received by
subsidiaries from the absorption of minority              1,280,028.24
shareholders' investments
   Cash received from borrowings
   Cash received from other financing
activities
Subtotal of cash inflows from financing
activities
   Cash paid for debt repayments                            999,495.80                1,089,804.61
   Cash paid for distribution of dividends
and profits or payment of interest
      Including: dividends and profits paid to
minority shareholders by subsidiaries
  Cash paid for other financing activities               21,708,035.72              87,725,493.56
Subtotal of cash outflows from financing
activities
Net cash flows from financing activities                 -17,964,657.71            -181,047,518.00
IV. Effect of exchange rate changes on cash
and cash equivalents
V. Net increase in cash and cash equivalents           -579,423,524.03             -501,361,903.62
  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 3rd Quarter Report has been audited
□ Yes  No
The Company's Q3 Report has not been audited.
     ZKTeco 2025 Q3 Report
       ZKTECO CO., LTD.
         Board of Directors