晨光股份: 上海晨光文具股份有限公司2025年年度报告（英文版）

                          Annual Report 2025
Stock Code: 603899                             Short Name: M&G Corporation
      SHANGHAI M&G STATIONERY INC.
                     Annual Report 2025
                                      Annual Report 2025
             Rising to Challenges, Thriving with Resilience
                                     Letter to Shareholders
     In 2025, the world moved forward amid change and challenges. Uncertainty in the
external environment has imposed higher requirements on corporate operations, yet the
fundamental conditions and long-term trends for growth remain intact. Under the
leadership of the Board, we keep steady while exploring innovation, rise to external change
with clear strategy, and stive to stay resilient and focused. All M&G people rise to
challenges head-on. We hone our skills under pressure and seek opportunities in change.
We ground ourselves firmly while reaching high. Through our actions, we have
demonstrated what true resilient growth looks like.
     This year, we recorded revenue of RMB25,064 million, an increase of 3.45%, and the
net profit attributable to our shareholders reached RMB1,310 million. Our business
remained stable and healthy.
     This year, we responded to expectations with innovation. Centered on consumers, we
made product strength the engine of high-quality growth. By enhancing both functional and
emotional value, we achieved significant results in R&D, technology application, and IP
integration. We rolled out a series of standout products, including the on-off pen, meeboki,
Da Fu Da Gui, and San Hao backpack, winning both praise and market success.
     This year, we connected people to cultural creativity. As the bridgehead for brand
upgrade, our independent brand, Jiumu Store, now has more than 860 stores nationwide
and over 10 million members. It creates accessible spaces for cultural creativity, and brings
tangible joy to more consumers.
     This year, we build excellence through digital intelligence. As a leading provider of
general office supplies procurement and digital supply chain services in China, Colipu
Group has become a pioneer in digital corporate procurement and an industry leader, with
revenue surpassing RMB15,000 million.
     This year, we strengthened our foundation for the future. We continued to implement
the MBS management system, continuously improving operational efficiency and
organizational resilience in technology, products, production, logistics, and sales. Through
enhanced quality and efficiency and refined operations, we continued to create value for
our shareholders.
     This year, we launched the special initiative themed “Enhance Quality and Efficiency
                                      Annual Report 2025
and Strengthen Shareholder Return”, and continued to reinforce shareholder value. Guided
by a scientific, consistent, and steady dividend policy, we increased the cash dividend
payout ratio while taking into account our current development stage and long-term capital
needs. In February 2025, we completed our second share repurchase since listing, and in
June 2025, re-purposed and retired shares from the first repurchase. These proactive actions
have protected the Company’s value and safeguarded the overall and long-term interests of
our shareholders.
     Persistence and innovation give us the strength to navigate cyclical ups and downs.
Our faith in long-termism drives us forward with steady, confident steps.
     The stage is set for 2026. The road ahead is full of challenges, yet also holds vast
opportunities. We will make resilience our guiding principle, combining careful judgment
with bold action. We will adhere to long-termism, “dig 10,000 meters deep from a
     Building on the “Enhance Quality and Efficiency and Strengthen Shareholder Return”
initiative, we will focus on our core traditional business, continue to enhance products,
brands, and our reach across channels (including both online and offline channels, and both
at home and abroad). Step by step, we will solidify our foundation and expand our
competitive edges. In terms of our large retail stores, we will continue to grow our store
network and membership base. These stores should aim not only to serve as the bridgehead
for upgrading the M&G brand and products but also to carve out our own space in the
cultural creativity market. As for our general materials digital procurement service business,
Colipu Group is set to embark on a new journey with a planned spin-off listing on the Hong
Kong Stock Exchange. Leveraging the capital market’s role in optimizing resource
allocation, we will strengthen our business landscape to drive high-quality, sustainable
development.
     We are deeply grateful to our hardworking employees, loyal partners, and supportive
shareholders. M&G people will keep moving forward with a pragmatic mindset, an
innovative spirit, and resilient determination. Every step will be taken with care, every
commitment honored, as we create long-term value and boldly advance toward a
world-class M&G!
                                       Board of Directors of Shanghai M&G Stationery Inc.
                                                                             March 30, 2026
                                            Annual Report 2025
                                        Important Notice
I. The Board of Directors, directors, and senior management of the Company warrant that the
contents of this report are true, accurate and complete, without any misrepresentation, misleading
statements or material omissions, and severally and jointly bear the legal responsibilities thereof.
II. All directors of the Company attended the Board meeting.
III. BDO China Shu Lun Pan CPAs (LLP) has issued the audit report with unqualified opinions to
the Company.
IV. Chen Huwen, the chairman of the Company, Liu Jiaqi, CFO of the Company and Zhai Yu, the
head of the accounting department (person in charge of accounting), warrant the truthfulness,
accuracy and completeness of the financial report in this annual report.
V. Profit distribution plan or plan to convert surplus reserves into share capital approved by the
Board of Directors during the Reporting Period
     The Company proposes to distribute cash dividend of RMB10 (tax inclusive) per 10 shares based
on the Company’s total share capital (exclusive of shares in the Company’s special securities account for
repurchased shares) registered as at the registration date for the implementation of dividend distribution.
The profit distribution plan is subject to being submitted to the Company’s 2025 Annual Meeting of
Shareholders for deliberation.
Indicate whether the parent company had unrecovered losses as of the end of the Reporting
Period and the impact on the Company’s dividends and other matters.
□ Applicable √ Not applicable
VI. Risks statement of the forward-looking statements
√ Applicable □ Not applicable
     Forward-looking statements including future plans and development strategies involved in this
annual report do not constitute the Company’s substantive commitments to investors. The investors are
advised to pay attention to investment risks.
VII. Is there any non-operating misappropriation of funds of the Company by any controlling
shareholders and their related parties
No
VIII. Has the Company provided any external guarantees in violation of the decision-making
procedures
No
IX. Are there more than half of the directors who cannot warrant the truthfulness, accuracy and
completeness of the annual report disclosed by the Company
No
                                         Annual Report 2025
X. Warning on significant risks
     The Company has illustrated various risks and corresponding measures that the Company might
face in the production and operation. Please refer to the “Potential Challenges and Risks” set out in
“Section III Management Discussion and Analysis”. Investors are advised to pay attention to risk of
investment.
XI. Others
□ Applicable √ Not applicable
本报告分别以中、英文编制，在对中外文文本的理解上发生歧义时，以中文文本为准。
              This English version is converted from the Chinese version.
  In case of any discrepancy between the Chinese version and the English version, the
                             Chinese version shall prevail.
                                                               Annual Report 2025
                                                                   Contents
                               Financial statements signed and sealed by the legal representative, the person in
                               charge of accounting work, and the person in charge of the accounting agency.
                               Original of the auditor’s report with the seal of the accounting firm and the
       References
                               signature and seal of the certified public accountant.
                               Originals of all company documents and announcements publicly disclosed on the
                               designated information disclosure media by CSRC during the Reporting Period.
                                                Annual Report 2025
                                         Section I         Definition
     I. Definition
     In this report, unless the content requires otherwise, the following terms shall have the following
     meanings:
Definition of common terms
The Report                            Refers to    Annual Report 2025
Company, the Company, M&G
                                      Refers to    SHANGHAI M&G STATIONERY INC.
Stationery, M&G Corporation
M&G Group                             Refers to    M&G Holdings (Group) Co., Ltd.
                                                   Colipu Technologies Group Co., Ltd. （科力普科技集团股份
Colipu Group（科力普集团）                   Refers to
                                                   有限公司）
                                                   M&G Life Enterprise Management Co., Ltd.（晨光生活馆企
M&G Life（晨光生活馆）                       Refers to
                                                   业管理有限公司）/Large retail store of the Company
                                                   Shanghai Colipu Information Technology Co., Ltd.（上海科力
Colipu Information Technology         Refers to
                                                   普信息科技有限公司）
                                                   Shanghai M&G Information Technology Co., Ltd.（上海晨光
M&G Technologies                      Refers to
                                                   信息科技有限公司）
Jiekui Investment                     Refers to    Shanghai Jiekui Investment Management Firm (L.P.)
Keying Investment                     Refers to    Shanghai Keying Investment Management Office (L.P.)
                                                   Jiumu M&G Store Enterprise Management Co., Ltd.（九木杂
Jiumu Store（九木杂物社）                    Refers to
                                                   物社企业管理有限公司）/Large retail store of the Company
M&G Office Stationery（晨光办公） Refers to              Shanghai M&G Office Stationery Co., Ltd.
Axus Stationery                       Refers to    Axus Stationery (Shanghai) Company Ltd.
                                                   Back to School Holding AS, a Norwegian subsidiary that is
Beckmann                              Refers to
                                                   principally engaged in schoolbags
                                                   Shanghai Qizhihaowan Culture and Creativity Co., Ltd.（上海
Qizhihaowan（奇只好玩）                     Refers to
                                                   奇只好玩文化创意有限公司）
Jiangsu Marco（江苏马可）                   Refers to    Jiangsu Marco Pen Co., Ltd.（江苏马可笔业有限公司）
                                                   Maintenance, repair and operation, i.e. industrial consumables
MRO                                   Refers to    required by an industrial enterprise to ensure normal
                                                   production, except raw materials
                                                   Key Account, usually referring to large cross-regional retailers
KA                                    Refers to    with large operating space and dense customer flow, including
                                                   RT-MART, Walmart, and Carrefour.
                                                   The designing, developing, manufacturing and selling writing
                                                   instruments, student stationery, office supplies and other
Core traditional business             Refers to
                                                   products under M&G brands, and also the e-commerce
                                                   business M&G Technologies
                                                   General materials digital procurement service business and
New business                          Refers to
                                                   large retail store business
Reporting period                      Refers to    Year 2025, from January 1, 2025 to December 31, 2025
Yuan, ten thousand Yuan, hundred
                                      Refers to    RMB, RMB10,000, RMB100 million
million Yuan
                                             Annual Report 2025
         Section II         Company Profile and Key Financial Indicators
I. Company Information
Chinese name of the Company                           上海晨光文具股份有限公司
Short name of the Company in Chinese                  晨光股份
English name of the Company                           SHANGHAI M&G STATIONERY INC.
Abbreviation of English name of the Company           M&G
Legal representative of the Company                   Chen Huwen
II. Contact Information
                                           Board Secretary            Securities Affairs Representative
Name                            Bai Kai
                                No.5, Lane 288, Qianfan Road, Xinqiao
Office address
                                Town, Songjiang District, Shanghai
Telephone                       021-57475621
Fax                             021-57475621
E-mail                          ir@mg-pen.com
III. Introduction to General Information
Registered address                         Building 3, No. 3469 Jinqian Road, Fengxian District, Shanghai
Historical change of the Company’s
                                           No
registered address
                                           No.5, Lane 288, Qianfan Road, Xinqiao Town, Songjiang
Office address
                                           District, Shanghai
Postal code of office address              201612
Website of the Company                     http://www.mg-pen.com
E-mail                                     ir@mg-pen.com
IV. Information Disclosure and Place for Obtaining the Report
                                                Shanghai Securities News, China Securities Journal,
Media for the Company’s information disclosure
                                                Securities Daily, Securities Times
CSRC’s designated website for the Company’s
                                                www.sse.com.cn
Annual Report disclosure
The Company’s Annual Report may be obtained at Board of Directors’ Office
V. Stock Information
                                             Stock Information
                   Exchanges on which                                                   Stock short name
   Share class                                Stock short name         Stock code
                   the stocks are listed                                                 before change
                     Shanghai Stock
     A share                                 M&G Corporation             603899         M&G Stationery
                        Exchange
VI. Other Relevant Information
                            Name                             BDO China Shu Lun Pan CPAs (LLP)
Auditor of the Company      Office address                   4F, No. 61, Nanjing East Road, Shanghai
(domestic)                  Name of the signing
                                                             Chen Luying, Yuan Yang
                            accountant
                                           Annual Report 2025
VII. Major Accounting Data and Financial Indicators for the Past Three Years
(I) Major accounting data
                                                                    Unit: Yuan             Currency: RMB
                                                                  Year-on-
                                                                    year
 Major accounting data         2025                2024                                       2023
                                                                   change
                                                                     (%)
Revenue                   25,063,909,836.47 24,228,248,698.65          3.45             23,351,304,328.03
Total profits              1,708,704,232.97   1,821,257,986.53        -6.18              1,979,472,772.78
Net profit attributable
to shareholders of the     1,310,448,991.96   1,395,844,392.50        -6.12              1,526,801,727.16
listed companies
Net profit attributable
to shareholders of the
listed companies, net of   1,123,919,630.87   1,233,936,105.87        -8.92              1,398,219,856.97
non-recurring gains and
losses
Net cash flow
generated from             2,282,072,468.65   2,289,340,796.79        -0.32              2,616,600,617.09
operating activities
                                                                  Year-on-
                                                                    year
                            End of 2025         End of 2024                                End of 2023
                                                                   change
                                                                     (%)
Net assets attributable
to shareholders of the     9,287,670,689.65   8,909,859,173.13         4.24              7,833,178,803.52
listed companies
Total assets              18,074,966,731.15 16,586,785,179.43          8.97             15,313,962,312.00
(II) Key financial indicators
                                                                         Year-on-year
     Key financial indicators             2025             2024                                  2023
                                                                          change (%)
Basic earnings per share
(Yuan/share)
Diluted earnings per share
(Yuan/share)
Basic earnings per share, net of
non-recurring gains and losses               1.2270             1.3404             -8.46             1.5181
(Yuan/share)
                                                                            Decrease by
Weighted average ROE (%)                      14.56              16.64   2.08 percentage              20.97
                                                                                  points
                                                                            Decrease by
Weighted average ROE, net of
non-recurring gains and losses (%)
                                                                                  points
Explanation of major accounting data and financial indicators for the past three years by the end of the
Reporting Period
□ Applicable √ Not applicable
                                              Annual Report 2025
   VIII. Difference in the Accounting Information under the PRC Accounting Standards for Business
   Enterprise (“PRC GAAP”) and Overseas Accounting Standards
   (I) Difference in net profit and net asset attributable to shareholders of the listed company in
   financial reports disclosed under International Accounting Standards and PRC GAAP
   □ Applicable √ Not applicable
   (II) Differences in net profit and net assets attributable to shareholders of the listed company in
   financial reports disclosed under International Accounting Standards and PRC GAAP
   □ Applicable √ Not applicable
   (III) Explanation on the differences between PRC GAAP and Overseas Accounting Standards:
   □ Applicable √ Not applicable
   IX. Key Financial Data for the Year of 2025 by Quarter
                                                                            Unit: Yuan    Currency: RMB
                                                                                            (October -
                         (January - March)      (April - June)     (July - September)
                                                                                           December)
   Revenue                 5,244,822,850.50   5,563,956,883.73      6,519,079,058.51     7,736,051,043.73
   Net profit
   attributable to
   shareholders of           318,201,988.44     238,977,253.84        391,123,106.00      362,146,643.68
   the listed
   companies
   Net profit
   attributable to
   shareholders of
   the listed company        281,286,321.74     180,269,262.55        340,645,119.25      321,718,927.33
   after deducting
   non-recurring
   profit or loss
   Net cash flow
   generated from
   operating
   activities
   Explanation on difference between information by quarter and information disclosed in periodical
   reports
   □ Applicable √ Not applicable
   X. Items and Amounts of Non-recurring Gains or Losses
   √ Applicable □ Not applicable
                                                                            Unit: Yuan  Currency: RMB
Items of Non-recurring Gains       Amounts in                                Amounts in      Amounts in
                                                    Notes (if applicable)
          or Losses                  2025                                         2024          2023
                                                During the Reporting
                                                Period, the Company
                                                made additional
Gains or losses on disposal of
                                                investments in an
non-current assets (inclusive
of impairment allowance
                                                constituted a business
write-offs)
                                                combination not under
                                                common control.
                                                Gains were generated
                                               Annual Report 2025
                                                     from the
                                                     remeasurement of the
                                                     formerly held equity
                                                     interests at fair value
                                                     before the acquisition
                                                     date.
Government subsidies
included in profits and losses
for the current period,
                                                   Mainly including
excluding those that are
                                                   government subsidies
closely related to the
                                                   received during the
Company’s normal business
operations and given in
                                                   government subsidies
accordance with defined
                                                   transferred from
criteria and in compliance with
                                                   deferred income
government policies, and have
a continuing impact on the
Company’s profits or losses
Gains or losses on fair-value
changes in financial assets and
liabilities held by a
                                                   Mainly due to the
non-financial enterprise, as
                                                   revenue generated
well as on disposal of financial
assets and liabilities (exclusive
                                                   wealth management
of the effective portion of
                                                   products
hedges that is related to the
Company’s normal business
operations)
                                                   Provision reversal of
Reversal of provision for
                                                   bad debts on
impairment of receivables
which are individually tested
                                                   during the Reporting
for impairment.
                                                   Period
Other net non-operating                            Mainly due to the
income and expenses, other          -11,760,712.53 donations made for           12,141,547.09      -2,669,713.78
than the above items                               public welfare
Minus: Effect of income tax          41,525,443.98                              46,319,092.93     33,479,316.16
        Effect of minority
equity (after tax)
              Total                 186,529,361.09                             161,908,286.63    128,581,870.19
   Items unlisted in the Explanatory Announcement on Information Disclosure by Companies Offering
   Securities to the Public No. 1: Non-Recurring Profits and Losses are identified as non-recurring profit
   and loss items and the items are of a significant amount, and non-recurring profit and loss items listed in
   the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the
   Public No. 1: Non-Recurring Profits and Losses are defined as recurring profits and losses
   □ Applicable √ Not applicable
   XI. Companies with equity incentive plans or employee stock ownership plans may choose to
   disclose net profit net of the impact of share-based payments.
   □ Applicable √ Not applicable
   XII. Items Measured at Fair Values
   √ Applicable □ Not applicable
                                                                               Unit: Yuan   Currency: RMB
                                          Annual Report 2025
                                                                Changes in the    Effect on profit for
       Items           Opening balance    Closing balance
                                                                   Period             the Period
Held-for-trading
financial assets
Receivables
financing
Investments in other
equity instruments
Derivative financial
liabilities
         Total         2,608,168,323.20   4,150,696,355.60     1,542,528,032.40        58,155,252.93
XIII. Others
□ Applicable √ Not applicable
                                             Annual Report 2025
                Section III          Management Discussion and Analysis
I. The Company’s Businesses during the Reporting Period
      M&G Stationery is a comprehensive stationery supplier and an office servicer. The Company
integrates the value of creativity into its products and service advantages, advocates fashionable
stationery lifestyle, and provides solutions for study and work. Its core traditional businesses include
designing, developing, manufacturing and selling writing instruments, student stationery, office supplies
and other products under                  brands, and also the e-commerce business M&G Technologies;
its new businesses mainly comprise of general materials digital procurement service business – Colipu
Group, and large retail store business - Jiumu Store and M&G Life. During the Reporting Period, there
were no significant changes in the Company’s operation model.
      The Company has an independent and complete operation from design and development of brands
and products, procurement of raw materials and accessories, product manufacturing, supply chain
management and warehouse and logistics, to distribution network management. The Company is capable
of performing independent operation of business in the market. For R&D model, the Company has an
“entire design system” covering the whole process starting from customer value proposition to product
design, product mold to brand image design, incorporating trend-, theme and experience-oriented R&D
model to develop new products with a comprehensive categories approach based on consumer insight.
For manufacturing model, the Company uses the brand manufacturing model that features sales-driven
production, in-house and OEM outsourcing. The Company has an independent system from raw material
procurement to manufacturing and selling, and has established its brands in the market. We have the
advantages from participating in the whole value chain from design, research and developing,
manufacturing and selling stationery. For sales model, based on features of stationery products and
current situations of stationery consumption at home and abroad, the Company has developed its sales
model that relies on regional distributors, complemented by direct sales to offices 2B customers,
direct-sale store, KA sales, online sales, as well as international distribution. We are the one of leading
companies in China’s stationery business that engage in large-scale brand sales management and
franchise management. In addition to operations on platforms such as Tmall, JD, and Pinduoduo, M&G
Technologies also conducts live streaming on platforms such as Douyin and Kuaishou through its own
live streaming room or cooperation with KOLs on the platforms. M&G Technologies is also responsible
for online full platform marketing and management of authorized online stores.
      M&G large retail store businesses include two store types: Jiumu Store and M&G Life. Targeting
female consumers aged 15-29, Jiumu Store primarily sells stationery, cultural and recreative products,
educational and entertainment products, and daily household and home products. Jiumu Stores are
mostly located in high-quality shopping malls in prime urban districts. Jiumu Store represents the
Company’s ongoing exploration in new retail model in lifestyle products with a distinct cultural element.
Jiumu Store started franchising in July 2018, where franchisees pay contract deposit and decoration fee
according to contracts, and store rent, store staff salary, utilities and other costs incurred in franchising
stores. M&G Life mainly targets students aged 8-15, primarily selling stationery products. M&G Life
stores are mostly located in Xinhua Bookstore and compound bookstores. M&G Life represents the
Company’s efforts to move beyond the dominant traditional channels of retail stationery shops nearby
schools.
      Colipu Group provides cost-effective one-stop supplies procurement service for a diverse range of
customers, including central SOE groups, financial institutions, government agencies, Global 500
companies, as well as top 500 SOEs and private enterprises in China. Colipu Group has a rich product
offering, with application scenarios covering one-stop office supplies, MRO industrial products,
marketing gifts, and employee benefits, which include more than one million product categories such as
office paper, office stationery, office supplies, office equipment, computers and accessories, digital and
communications, office appliances, daily necessities, business gifts, food and beverages, office furniture,
labor protection supplies, and industrial supplies. By shortening the supply chain, it provides customers
                                           Annual Report 2025
with cost-effective, digital procurement solutions for various scenarios and customized value-added
services.
     With changing demographics of China in particular the decreasing birth rate, it becomes
increasingly difficult to achieve revenue growth from unit volume growth in the future, and stationery
industry growth is increasingly driven by consumption upgrade and product upgrade. The Company’s
core traditional businesses are challenged with demands from more individualized population born after
individualized and more premium. There is a clear growth in demand for better cultural and creative
products, which accelerates industry transformation towards one with more cultural and creative
elements. M&G Technologies reflects channel diversification trend and helps the Company’s
omni-channel strategy by expansion of online business. Jiumu Store serves as the Company’s
bridgehead to continue products and channels upgrading of its core traditional business, and it plays an
important role in promoting the Company’s brands and products upgrade. Colipu Group meets the
purchasing demands for office supplies of corporations and institutions, which helps boost the sales of
writing instruments and office stationery in the Company’s core traditional business.
     Driven by policy
     The continuous investment of the state in education, the three-child policy, the increased childcare
subsidies and fee reductions, as well as a favorable policy context for the development of the cultural
industry encourage and promote the integrated development of the cultural industry and upstream and
downstream industries, invigorate economic transformation and social development, and drive the
steady development of the stationery industry. A series of national policies on the centralized
procurement industry have been promulgated, rapid progress was made in centralized procurement of
large- and medium-sized enterprises, the transparency of procurement information and the competitive
mechanism of centralized procurement promoted the concentration of office supplies industry and
promoted the vigorous development of direct office supplies industry.
     Driven by market force
     With the changes in the way of life and consumption habit of consumers, the mix of “people,
product, and place” in retail industry has been reconstructed, sales channels have become more
diversified, and channel upgrades and channel competition have become increasingly fierce. As the
domestic market demand for mid- to high-end stationery products keeps increasing, this provides
opportunities for mid- to high-end stationery products. China’s population of 1.4 billion accounts for
about 18% of global population, while leading stationery companies in China can continue to mostly
rely on the huge domestic market, they also have room for international expansion in international
markets, which could reinforce each other under favorable conditions.
     Driven by industry integration
     With continued development in the market, market concentration of stationery industry becomes
greater, leaving more room for industry consolidation. Leading companies in the stationery industry with
good brand recognition are in a strong position, and more market share is gained by leading companies.
Through mergers and acquisitions of high-quality targets at home and abroad, the Company further
enhanced its competitiveness and brand power in segmented categories.
     Driven by innovation
     Innovation as one of driving forces for continuous development with a focusing on consumers. The
Company continued to promote technological innovation, product innovation, channel innovation and
business model innovation. Through product innovation and business model innovation, the Company
has formed a pattern of coordinated development, high-quality development and sustainable
development of multi-business model. Meanwhile, it actively promoted the high-end, digital, intelligent
and green transformation in its business operations, and coordinated the upgrading of traditional
businesses, the growth of emerging businesses and the cultivation of future businesses.
     Driven by the Company’s competitive advantages
     With professional teams, market insights, unique brand advantages, channel advantages, supply
chain advantages, R&D and design advantages, the Company continued to promote technological
innovation and product innovation, and maintained a strong forward driving force through high-end,
omni-channel, digitalization, lean production and dynamic organization.
New important non-principal business during the Reporting Period
                                            Annual Report 2025
□ Applicable √ Not applicable
II. Industry Situation of the Company during the Reporting Period
      According to Industrial Classification and Codes for National Economic Activities (GB/T
sports and entertainment products industry in the manufacturing sector. The Company is a member of
China Stationery & Sporting Goods Association, and China Writing Instrument Association.
      In 2025, China’s sports and stationery goods industry generally maintained stable operations
against the backdrop of an increasingly complex external environment and a slower pace of recovery in
domestic demand. The industry’s resilience further emerged, but structural contradictions such as
pressure on profits, homogenized product competition, and fluctuations in external demand remained
prominent. The Executive Meeting of the State Council emphasized the need to strengthen the domestic
economic cycle and promote the continued release of domestic demand potential, providing policy
guidance for the industry to tap incremental opportunities in cultural consumption, health consumption,
and education consumption.
      China encourages art education and quality education for students, deepens the integration of sports
and education, and promotes the healthy development of teenagers. The Ministry of Education has
launched the Aesthetic Education Infiltration Action in schools, which brings about new development
opportunities for painting and calligraphy supplies, educational books, cultural and creative student
supplies, and digital and intelligent stationery. Five departments including the Ministry of Education
jointly issued the Opinion on Implementing the Student Physical Fitness Improvement Plan. Coupled
with the policy orientation of integrating sports and education as well as the development of campus
sports, this has created new market space for teenagers’ sports equipment and training aids tailored to
campus physical exercise scenarios.
      According to the China Public Procurement Development Report (2024) compiled and released by
China Federation of Logistics & Purchasing, the scale of public procurement transactions in China in
trading platforms, the market for public resource transactions has been increasing centralization in
trading, regulation, and data management. In the broader context of the digital economy, digitalization,
e-commerce, and centralized procurement have become the main forms of public resource transactions
from central to local governments. These practices began with transparent procurement by government
agencies, central and state-owned enterprises (“SOEs”), and financial institutions, are gradually
extending to large private enterprises and local SOEs. The government continues to strengthen its
commitment to green procurement, expanding both the scope and scale of green product purchasing, and
is incorporating carbon footprint requirements into government procurement criteria in a timely manner.
      (1) Periodicity
      Writing instruments, student stationery and office supplies are less affected by economic
fluctuations. With low unit price, writing instruments and student stationery are more of necessity goods
with relatively low income elasticity, relatively less sensitive to economic fluctuations.
      (2) Seasonality
      There is seasonality in the demand for student stationery. Months before a new semester (summer
and winter vacation) is what the stationery industry calls “schooling peak season”, during which sales of
student stationery usually peaks. Students and their parents will buy a lot of stationery in advance and
stationery manufacturers promote their products.
      With the changes in the way of life and consumption habit of consumers, China’s retail industry
entered a new stage of redevelopment and innovation. Stationery industry faces challenges with
uncertainty of external environment, diversification of retail channels, and more individualized demands
from main customers group (now being the post-00s and post-10s). With the changing demographics of
China in particular the decreasing birth rate, stationery industry revenue growth comes less from by unit
volume growth, and more from consumption upgrade and product upgrade. Domestic consumption for
stationery in China becomes more brand conscious, innovative, IP-oriented, individualized and more
                                            Annual Report 2025
premium. There is a growing demand for premium cultural and creative products, driving the industry to
transform from functional satisfaction to value consumption. Demand for mid-to-high-end products that
combine aesthetic design, cultural connotations, and quality has continued to rise, providing broad
opportunities for high-quality enterprises that emphasize the integrated capabilities of R&D, design,
branding, and supply chain management.
       Sales channels for stationery in the domestic market are continuously expanding and improving.
Traditional retail stationery shops nearby school are still the dominant channel for China’s stationery
industry, and shares of other retail formats are increasing faster. Sales terminals and channels of the
industry are becoming more diversified, upgrading and competition in channels becomes more obvious.
With the popularity of the Internet, smart phones, and online transactions, people’s consumption habits
and consumption scenarios have changed. New-generation marketing means are becoming more
diversified, including online media platforms (such as Weibo, WeChat, Xiaohongshu, and Douyin) and
IP topic creation, which further tests enterprises’ ability to make quick response to industry trends.
Compared with small- and medium-sized enterprises, leading enterprises boast stronger and richer whole
network marketing and operation capabilities. They formulate refined marketing strategies by city to
reach consumers. In addition to online traffic, offline channels are also required to realize refined
management by empowering channels through organizational reform and information system.
According to the National Bureau of Statistics, online retail sales across the country recorded RMB15.9
trillion in 2025, an increase of 8.6%. Outstanding companies in the consumer industry seized the
development opportunities of online consumption and achieved continuous sales growth through online
and offline integration.
       The new generation of young people has become a major force in driving new consumption. The
consumption concepts of the youth group are changing, shifting from material fulfillment to emotional
resonance, and from standardized supply to personalized customizationfrom. With the shift from a focus
on the practicality of goods to an increasing emphasis on the emotional value of consumption, they are
more eager to achieve emotional resonance and psychological satisfaction through their purchases.
Emotional value has evolved from an added consumption benefit into a core factor influencing
consumption decisions among contemporary young consumers, who seek more than just emotional
value and cultural connection from IP collaborations, but also see consumption as a way to express their
identity and engage with communities built around shared interests. They value the sense of joy,
belonging, and companionship that products bring. What they purchase is not just stationery, but a
vehicle for emotion and self-expression. ACGN and cultural and creative merchandise have already
broken through traditional boundaries, reflecting youth consumers’ recognition of excellent cultural
works such as animation and comics. This trend reflects a shift in consumption demand from
“pragmatism” to “emotional value”.
       With continued development in the stationery industry, there could be higher industry consolidation,
and leading companies could gain larger market shares. China’s population of 1.4 billion accounts for
about 18% of global population, while leading stationery companies in China can continue to mostly
rely on the huge domestic market, they also have room for international expansion in international
markets, which could reinforce each other under favorable conditions. The global influence of Chinese
culture continues to rise. Not only do domestic consumers seek emotional resonance by purchasing
“Chinese trend” products, but overseas consumers are also beginning to embrace Chinese elements,
showing a positive outlook on Chinese goods.
       In the broader context of the digital economy, China’s public procurement sector has made
significant progress in digitalization, e-commerce, and centralized procurement, driven by favorable
factors such as supportive policies, the rapid expansion of centralized procurement by large- and
medium-sized enterprises, and increased competition among various digital procurement service
providers.These forms of procurement have become the main form of public resource transactions from
central to local governments. According to the 2025 Smart Procurement Supply Chain Development
Report released by the China Federation of Logistics & Purchasing, the total procurement amount for
enterprises reached RMB188.3 trillion in 2024, an increase of 7.3%. Among this, the total amount of
digitalized procurement accounted for RMB21.7 trillion, an increase of 16.2%, with a penetration rate of
procurement penetration is driven by two key factors. First, continued policy support: governments at all
levels have introduced targeted digital transformation initiatives that provide clear guidance and
financial incentives for adopting digital procurement. Second, technological advancement: the deeper
application of big data and AI not only streamlines procurement processes, but also significantly
                                             Annual Report 2025
improves efficiency through features such as intelligent matching and automated approvals. As supply
chain digitalization accelerates, digital procurement is expected to play an increasingly important role in
helping enterprises reduce costs and improve operational efficiency. More than 70 central enterprises
have established online stores, with a clear trend of product diversification. In addition to office supplies
and industrial products, these procurement e-commerce platforms are expanding into production
materials and engineering equipment.
     With the further development and application of information technology, data have become a new
production element. Recommendations of the Central Committee of the Communist Party of China for
Formulating the 15th Five-Year Plan for National Economic and Social Development call for upgrading
and optimizing traditional industries, advancing the quality and transformation of key sectors, promoting
technological upgrading, and accelerating the digital and intelligent transformation of manufacturing. It
also emphasizes the development of intelligent manufacturing, green manufacturing, and service-oriented
manufacturing, while speeding up changes in industrial models and corporate organizational structures.
The investment in the manufacturing industry has shifted from the investment in equipment and
assembly lines to the transformation of digital processes and digital transformation of products, in a bid
to apply digital technology to reduce channel costs and management costs and become a digital-driven
modern enterprise.
     The future of stationery products will be shaped by personalization, smart functionality, and
sustainability. As the new generation of consumers expresses stronger individuality and more diverse
needs, personalized stationery is gaining increasing popularity. At the same time, advances in technology
are bringing intelligent features deeper into learning and office scenarios. Intelligent stationery enables
users to complete tasks more efficiently, while offering support for learning and personalized guidance.
Influenced by national policies and a shifting social landscape, consumers are also paying closer
attention to product safety, environmental impact, and sustainability. As a result, green, environmental
and sustainable development has become a key direction for the future of the stationery industry.
      As a leader of “own brand + domestic demand” in China’s stationery industry, the Company has a
strong first-mover and leading advantage, with a wide and deep distribution network coverage in China’s
stationery market. At the end of the Reporting Period, the Company has a national distribution network
covering approximately 70,000 retail stationery shops using the store sign “M&G Stationery” across
China, enabling the Company to establish market leading position for its own brand products amidst
competitions. The Company ranked first in “Top Ten Enterprises in China’s Light Industry and Writing
Instrument” for 13 consecutive years.
      Colipu Group is a benchmark enterprise in general materials digital procurement service in China.
With 13 years of dedicated development, and leveraging its electronic transaction system, intelligent
warehousing and logistics management system, high-quality supply chain management and customized
service, Colipu Group has become a pioneer and industry leader in enterprise digital procurement. Over
the years, Colipu Group has won many awards such as the Outstanding E-commerce Platform in China’s
Stationery and Office Supplies Industry, the Outstanding Supplier of Government Procurement, and the
Most Influential E-commerce Platform in Financial Procurement.
III. Discussion and Analysis of Operation
     In 2025, amid a complex external environment, the Company adhered to long-termism, and
maintained strategic resolve and operational resilience. In response to evolving consumer preferences,
buying habits, and consumption scenarios, it focused on product development, technological innovation,
original design, IP empowerment, green development, digitalization and globalization. The Company
fully implemented measures to enhance quality and efficiency, accelerated the fostering of new quality
productive forces, steadily advanced the development of its core traditional business, and continued to
develop new business. It continuously enhanced organizational efficiency and execution capacity, further
strengthening its overall competitiveness.
     In the Reporting Period, the Company recorded revenue of RMB25,064 million, an increase of
Operation of the Company in 2025 is reported as follows:
                                            Annual Report 2025
consumer needs
      During the Reporting Period, the Company adhered to consumer-centric, innovation-driven
development. Through product innovation driven by consumer insights and promotion innovation that
resonated more closely with users’ inner world, it improved the alignment between its products and
consumer needs at functional, appearance, and emotional levels, strengthened the connection between
the brand and consumers, and met the diverse needs of consumers. The Company emphasized quality
over quantity in product development to increase the on-shelf ratio and sales contribution of single
products. The product structure was optimized, further expanding the brand lineup and enriching the
product line to increase the on-shelf ratio of must-have products. New products were developed from the
perspective of consumers, cultivating high-quality, highly functional products with strong IP appeal that
are both attractive and easy to use. By combining internal independent cultivation and collaboration with
external IPs and leveraging international design resources, the Company has provided consumers with a
wider range of purchasing options.
      Mass market stationery segment. The strategy of “exploitation of potential, collaboration, and
product capability” and the consumer-centric principle were followed, continuously developing products
that meet the essential needs of the general public. Adopting a bestseller-oriented mindset, the Company
has brought customers a full range of stationery products of reliable quality and essential functions,
whist scientifically managing the products across their lifecycle. It has optimized the product structure
and maintained competitiveness. The Company continued to delve deeply into the needs in core
categories such as writing instruments and student stationery. On the one hand, it has established a
well-structured product portfolio, strengthening the on-shelf and sell-through performance of key
flagship and mid-tier products; on the other hand, it focused on developing long-term bestsellers and
building strong functional capabilities, while staying agile in capturing opportunities across niche
segments. Through ongoing improvements in quality and user experience, it strove for sustainable
business growth.
      Premium stationery segment. The Company actively optimized its product mix and increased the
on-shelf ratio of best-selling items at key stores. In addition to continuing to focus on the development of
highly functional products, it also kept pace with market trends and develop products that provide
emotional value and align with market hotspots. It stayed attuned to evolving consumption trends,
exploring market dynamics, consumer behavior, and preferences for IP collaborations. By gaining
deeper insights into changing tastes, mindsets, and habits, it has been better positioned to deliver both
practical value and emotional resonance to consumers.
      Arts and kids drawing segment. The Company focused on the needs of children’s learning and
creative scenarios, using technological innovation to strengthen product capabilities and reinforce its
competitive edge in core categories. It continued to make breakthroughs in direct-ink flow control
technology, and has developed the “Da Mo Wang” (High-Capacity) direct-ink acrylic marker series,
enhancing both category competitiveness and market performance. Based on the completeness of
category structure and positioning, the Company has enhanced product layout and developed product
tiers. Through in-depth exploration and quick response to consumers’ new pain points and expectations
when using stationery, the Company has consistently launched high-quality products that resonate with
consumers.
      Office stationery segment. The Company has strengthened the development and promotion of
office products, combining traffic price-quality ratio with differentiated innovation in product
development to tap into practical structural innovations, continuing to create distinctive products that
stand out in the market. It has upgraded and refined existing products across key categories, better
meeting the needs of channel partners and enhancing overall product competitiveness. Offline, it focused
on core office SKUs, driving the on-shelf ratio and promotion of office supplies across key stores
nationwide through coordinated and integrated efforts. Online, it mapped traffic entry points and built
omni-channel coverage for priority categories, continuously strengthening its office product portfolio.
      IP-powered products. The Company has built a diversified IP collaboration ecosystem, focusing
on independent IP incubation, IP operation, joint brand development, and trendy toy derivatives. It
operates IPs based on long-termism, stays in sync with young people at all times, and keeps IPs fresh,
relevant and engaging, while building lasting loyalty among fans. By combining independent IP
incubation and collaborations with popular domestic and international IPs, the brand has deeply operated
an IP product matrix. It empowers stationery through IPs, creating products that combine practical value
(easy to use), aesthetic appeal (visually engaging), and emotional enjoyment (fun to use). In doing so, it
is evolving from a provider of function to a provider of emotional value. During the Reporting Period,
                                            Annual Report 2025
the Company launched several new IP collaboration series, which received positive market feedback.
     During the Reporting Period, the Company continued to promote omni-channel development of its
core traditional business. Based on changes in consumer demand and habits, the Company continued to
optimize retail operation towards a channel structure with a multi-level distribution system as core. This
omni-channel and multiple contact point enabled more direct access to customers through new offline
channels, online channels and direct supply channels. Further the change from a wholesaler toward a
brand retail service provider.
     Develop traditional channels with a focus on improving the quality of single stores and the
construction of positions. Efforts have been made to improve the quality of single model stores, thus
empowering stores to enhance business quality. The Company highlighted the promotion of the
best-selling product offering, and established more precise merchandising standards and optimized
product mix at the stores, advancing in-store position building and ensuring effective shelf placement for
key categories. Guided by the strategy of “expanding positions and deepening categories”, it broadened
position coverage, improved sell-through at stores, expanded business district coverage, and increased
market share. Moreover, it standardized the daily management and visit mechanisms for stores to
improve the service quality and operational efficiency of key stores and consolidate the fundamentals of
channel operations.
     Improve the operational efficiency of channels with digital tools. The information-based
channels and high data effectiveness have effectively assisted in enhancing operational efficiency. M&G
Alliance APP’s role of linking the headquarters to stationery store owners was leveraged to empower
store owners through information sharing and private domain live streaming, which enhances store
engagement. The “JUBAOPEN” APP acts as a fundamental operational tool for daily business checks,
providing real-time and accurate sell-through data to empower the real-time promotion decisions on
business of stationery shops and enhancing their capability in “the right match between right shops and
right products”. Keeping pace with the times in advancing the pilot of the instant retail system, the
Company has established functions for rapid onboarding across multiple platforms and enhanced store
merchandise management capabilities, building a moat for instant retail operations within the industry.
     Continuously promote direct model. Continued efforts were made to promote headquarters direct
supply, partner direct supply, office direct supply and premium stationery, and increase efficiency to
create incremental sales. The office direct supply model further empowered business and developed and
tapped the potential of offline professional channels. The Company continued to expand M&G office
stores and model office stores, and enhance the service capabilities in order to meet the demands of
professional channels. The premium stationery segment followed the core strategy of “focusing on
priorities, building benchmarks, and replicating successful models” to boost per-store revenue from
existing customers and achieve seamless on-shelf placement for all M&G product categories.
Additionally, the Company output the product offerings of large stores at retail summits to enhance the
cooperative engagement with leading large stores in the industry, leading the ways of high-quality stores
next to schools.
     Increase online channels. The Company vigorously developed online business, with the online
direct sales model and distribution model working in synergy. It promoted omni-channel development
integrating online and offline operations, adopted multiple measures to tap into the potential for online
growth, and accelerated its transformation and development. On one hand, the Company strove to
strengthen its collaborative operation system. By integrating inventory across its direct-operated stores
on all e-commerce platforms and implementing centralized inventory management, it achieved
cross-platform inventory sharing and complementary assortments of best-selling products, thereby
improving operational efficiency. On the other hand, with a greater focus on the exploitation of product
line arrangements and product capability of online categories, the Company has developed
platform-specific products, joint creations, and customised products, offering a range of new products to
meet the differentiated consumer demands of various platforms. Meanwhile, the Company optimized its
marketing strategies. Through scenario and customer base analysis of competing products, it developed
more targeted marketing strategies to support the creation of channel bestsellers. During the Reporting
Period, M&G Technologies’ revenue was RMB1,204 million, an increase of 5%.
markets
                                            Annual Report 2025
     The Company has actively developed overseas markets, deepening its localized layout in
international markets. Centered on the strategy of “the right stores with the right products”, the
Company focused on key cities in priority, seizing channel entry opportunities and driving business
growth through deep, store-by-store development. Meanwhile, category-based promotion was advanced,
and category position momentum was gradually built. Through coordinated efforts in product selection
and allocation, merchandising standards, display tools, and execution, a strong presence has been
established for both highly functional core products and IP-driven series, meeting the diversified needs
of overseas consumers. The Company coordinated category-based promotion planning, focused on
identifying core products for overseas markets, and implemented a unified ToC marketing strategy.
Orders and execution plans were prepared in advance, and its overseas product competitiveness
continued to be strengthened. The Company refined its overseas business models, channel models, team
models, and product models, establishing a solid foundation for the continuous development of the
Company’s overseas market.
     The Company focused on high-end products that are “exquisite and thoughtful” and meet
“upgraded consumer needs”, using thoughtful scenarios such as Jiumu Store and flagship stores as
channel matrices, and platforms such as Douyin, Xiaohongshu, and personal media as communication
matrices. This has deepened consumers’ impressions of a cost-effective, exquisite and high-quality brand.
Through content formats such as “store visits”, “product recommendations”, and “emotional value”, it
has positioned product functionality as the core selling point and emotional value as the key
communication hook, continuously enhanced brand awareness and conversion efficiency, and drove
brand upgrading. During the Reporting Period, the Company joined hands with Tencent Video to launch
a new co-branded series featuring Chinese animation IPs. The integrated innovation of domestic
products, trend culture, and homegrown animation, a more youthful and refreshed M&G has been
brought to consumers. As a leader in embracing ACG culture within the stationery and creative products
industry, the Company stands alongside younger consumers. It listens closely to their voices,
collaborates with the IPs they love, and connects through shared emotions, thus building deeper, more
meaningful engagement with its users. Through its co-branded partnership with People’s Education
Press, it continued to reinforce its positioning as a provider of professional stationery products, enhanced
awareness and trust at stores, and strengthened the overall brand presence.
strengthen the operational foundation
     Promote design and R&D. The Company consistently upheld a consumer-centric approach,
focusing on integrating technological breakthroughs with consumers’ actual needs. Guided by both
foundational technology development and the conversion of new innovations into market-ready products,
it conducted forward-looking fundamental research in materials, structures, and processes, continuously
enhancing its technology accumulation and the efficiency of commercializing research results. It has
built an international design team, and strengthened innovative design capabilities, continuously
injecting new content and design possibilities into traditional stationery. Based on category structure and
category positioning completeness, the Company has improved its product layout and created product
tiered groups, offering consumers high-quality, aesthetically appealing, cost-effective and competitive
products to meet consumers’ needs across multiple scenarios and enhance their usage experience. During
the Reporting Period, M&G Premium Safety Scissors with Rotating Blade Sheath won the 2025 iF
Design Award.
     MBS Business System (MBS). The Company has comprehensively and deeply promoted the MBS
system, integrating it with business operations and further improving the system. Through structural
reforms and capability platform building, the Company has established an MBS-driven lean operation
system across R&D, production, supply chain, sales and other links, continuously introducing lean
improvement methods and standardized management mechanisms, and driving a shift in management
from being “experience-driven” to being “data-driven and mechanism-driven”, while carrying out
systematic improvements in quality enhancement, cost reduction, efficiency improvement, and risk
control. As the MBS system continued to deepen, the Company has been strengthening lean talent
management model and refining MBS mechanisms. Employees were increasingly proactive in
identifying and driving improvements, with initiatives becoming more routine and standardized,
fostering a culture of broad participation and continuous iteration. The “continuous improvement +
                                             Annual Report 2025
talent development” dual-drive model has provided sustained momentum for the Company’s
high-quality development.
      Coordinate supply chain. The Company advanced “intelligent manufacturing + quality
manufacturing” as its core approach, continuously upgrading intelligent technologies across both
production and inspection. By applying tools such as machine vision, key parameters can be identified
and automatically assessed, which has significantly improved efficiency and consistency. It fed data
back into process optimization and yield improvement to strengthen its quality control systems, and
empowered core and high-potential suppliers through manufacturing support and on-site improvement to
enhance quality stability and delivery reliability. Adhering to “managing demands internally and
resources externally”, it refined the coordination mechanism across R&D, production, and sales,
constructed a product capability based on high quality, optimal cost, fast delivery, and strong innovation,
and integrated ESG requirements into supply chain management, continuously reinforcing supply chain
resilience and supporting sustainable development.
      Logistics support. The Company continued to build a tiered, demand-driven logistics service
system around the differentiated needs of diverse business models (including B2B, B2C, e-commerce,
distribution, and retail), providing differentiated, refined and efficient logistics service support for each
business department based on their business types and requirements. It has achieved the national
distribution layout covering “five warehouses across four regions, including East China, South China,
North China, and Central China”, with coordination between trunk lines and last-mile delivery
optimized, coverage expanded, and peak capacity flexibility enhanced for better cross-regional
allocation and prompt replenishment. Utilizing digital tools and launching an intelligent scheduling
system, the Company has visualized and digitalized logistics services, driving simultaneous
improvements in operational efficiency and stability. Its fulfillment capabilities that are “fast,
cost-efficient, stable, and scalable” have provided strong support for business development.
      Digitalization development. The Company has fully advanced digital transformation and
continuously strengthened the construction of its big data platform, focusing on the core demands of
“business empowerment, efficiency enhancement, ecosystem collaboration, and internal control
compliance”. Data from all businesses, markets, and customers are aggregated and made visualized and
useful to provide scientific support for business decisions. On this basis, by collaborating with
departments such as finance, supply chain, sales, business segments, logistics, and human resources, the
Company is able to connect processes and share data, advancing the comprehensive online integration,
standardization, and visualization of processes including front-end customer engagement, transaction
fulfillment, R&D and manufacturing, supply chain operations, financial accounting, and organizational
management, so as to ensure faster decision-making, more reliable delivery, better services, and the
exploration of more room for incremental growth. Actively leveraging AI to empower business, the
Company promoted the in-depth application of AI across all business areas.
      Construction of organization and talent. The Company has always regarded talent as the first
resource. Centered on its operational strategic objectives, it promoted talent and organizational
development along the main lines of role planning, capability building, performance incentives, cultural
atmosphere, and shared services, establishing a systematic and multi-level talent management system,
and gradually forming a virtuous cycle mechanism for “attracting, developing, utilizing, and retaining
talent”. It is committed to building a dynamic organization. Guided by revitalizing talent, energizing
teams, understanding current situations, and driving improvement, the Company kept refining its
organizational structure and operating mechanisms to enhance agility and collaboration. It has fostered a
people-oriented and inclusive corporate culture, while building an efficient human resources service
platform, using data as the foundation to optimize role alignment and talent development pathways. This
has strengthened coverage for critical roles and the talent pipeline, providing solid organizational
support for the Company’s steady operations.
     Jiumu Store has a clear positioning in the Company’s strategy, which is to become the bridgehead
for the M&G brand and product upgrading, and also to become a national leading premium recreation
and creativity retail brand. More exposure of the M&G brand can help drive development of M&G’s
premium stationery products, strengthen retail capabilities, provide timely consumer insights, and
provide feedback for the brand’s continuous upgrading and market expansion.
     The stores made further improvements in product portfolios, refined operations and consumer
insights and services, establishing a continuous mechanism for checking people, products, and stores.
                                            Annual Report 2025
Through the coordinated development of online and offline channels, the Company is able to provide
consumers with a convenient omni-channel shopping experience, which has further solidified its leading
position in the mid-to-high-end cultural and creative retail market for stationery.
      During the Reporting Period, the offline network of Jiumu Store continued to expand. Efforts
across multiple dimensions, including store upgrades, themed pop-up campaigns, IP collaborations and
category expansion, and deeper membership operations, were deployed in a coordinated and systematic
way. Together, these initiatives have formed a powerful growth engine, driving brand renewal,
enhancing the consumer experience, and expanding market scale, thus ensuring sustained vitality and
competitive strength on top of an already scaled platform.
      Jiumu Store has initiated multi-format store testing across its offline network, tailoring product
assortments and in-store scenarios to different commercial districts to achieve a strong fit between store
positioning and target customer segments. A new large-store format has been introduced and rolled out,
with comprehensive upgrades to visual identity and spatial experience at the store. By optimizing visual
space, display flow, and service experience, it has significantly enhanced customer dwell time and
loyalty.
      In terms of membership operations, Jiumu Store focused on its membership base, establishing a
complete and efficient membership management system. It refined its management model, enhanced
membership benefits, and diversified member activities, so as to improve member satisfaction. By
upgrading the mini-program store and integrating multi-channel membership benefits, it boosted
member royalty and engagement. The membership base has surpassed ten million, laying a solid
foundation for the long-term development of the brand.
      In terms of IP and product expansion, investments in and sales of IP-related (ACGN, goods, and
related merchandise) products have increased. Jiumu Store continued to drive themed pop-ups and other
event-led campaigns, extending the reach of its IP beyond core circles, attracting more young consumers,
and building strong brand buzz. The proportion of M&G and other own-branded products has also
increased, with more original categories and products from Jiumu Store brought to market, offering
consumers a richer and more diverse selection. While deepening and refining its core categories, Jiumu
Store also actively introduced IP-derived products with high relevance. Through collaborations with
popular IPs, it has increased interactions with consumers, and further enhanced its brand presence and
member loyalty.
      During the Reporting Period, M&G Life (including Jiumu Store) recorded revenue of RMB1,585
million, an increase of 7%, among which Jiumu Store’s revenue was RMB1,537 million, an increase of
                                                                                        Unit: RMB 0’000
    M&G Life
    (including Jiumu             2025                2024                 2023         3-year average
    Store)
    Revenue                      158,509.88          147,921.38           133,535.55        146,655.60
    Net profit                     -7,894.92           -1,629.11             2,291.32         -2,410.90
    Of which, Jiumu
    Store
    Revenue                      153,734.90          140,645.45           124,043.08        139,474.48
    Net profit                     -8,451.04           -1,244.28             2,572.81         -2,374.17
      As a pioneer and industry leader in enterprise procurement digitalization, Colipu Group aligns with
the government’s push for transparent, open, and well-regulated procurement, while also addressing
enterprises’ needs to improve procurement efficiency and reduce procurement costs for non-production
office and administrative supplies. Colipu Group continues to set the benchmark for the industry through
its distinctive one-stop digital procurement solutions, cutting-edge digital and intelligent applications,
comprehensive product portfolio, as well as efficient supply chain, warehousing and distribution
management.
      In terms of business scenarios, Colipu Group has focused on four business segments, including
one-stop office supplies procurement, MRO industrial products, marketing gifts, and employee benefits.
It has placed particular emphasis on expanding the supply chain for MRO industrial products and
marketing gifts, with the proportion of these emerging business segments increasing rapidly.
                                            Annual Report 2025
      In terms of customer development, Colipu Group adhered to the professional spirit of “digging
deepening existing customer relationships while expanding new business opportunities, continuously
enhancing its market penetration and project acquisition capabilities across key industries and among
leading customer groups.
      In the central and state-owned enterprise (“SOE”) sector, Colipu Group has further expanded the
depth and breadth of its business presence and strengthened its competitiveness in core sectors,
successfully secured key projects with major clients such as China Yajiang Group and Power
Construction Corporation of China, further broadening service coverage and enhancing industry
influence.
      In the government sector, Colipu Group further advanced its regional strategic deployment by
successfully being shortlisted for projects with the Jiangsu Provincial Government and Huainan Mining
Industry, gaining braoder market recognition for its service capabilities and brand credibility in the
public sector.
      In the financial sector, Colipu Group expanded and upgraded its portfolio of leading institutional
clients by successfully establishing partnerships with top-tier institutions such as Bank of China, China
Life, and China Everbright Bank, further increasing both market share and brand value.
      In the MRO industrial products segment, Colipu Group continued to unlock value from existing
customer relationships by deepening collaboration with clients including China Electronics Technology,
China Energy Conservation Investment, and China National Building Material, further expanding
application scenarios and extending service boundaries.
      Middle-end and back-end platforms. Colipu Group advanced on two fronts: digital
empowerment and category specilization. It continued to strengthen its digital transformation initiatives
by developing innovative digital platform systems and promoting digital development centered around
the “four online capabilities” — online organization, online collaboration, online business operations,
and online management. By leveraging AI to empower business operations, the Group enhanced
operational efficiency, customer experience, and decision-making capabilities, ensuring that its business
solutions remain efficient, flexible, and scalable, while driving the in-depth application and continuous
innovation of large-model technologies.
      At the same time, Colipu Group accelerated the development of core products and proprietary
brands, while further improving a stable, high-quality, and sustainable supplier ecosystem. These efforts
supported the transition from scenario-based supply to more specialized operations and enabled the
integration of the entire supply-demand value chain.
      On the fulfillment side, Colipu Group continued to optimize its nationwide warehousing footprint
and transportation network and made innovations in the data-driven and intelligent warehousing.
Through the enhancement of its self-operated warehousing and distribuiton system, expansion of urban
warehouse deployment, and strengthening of last-mile delivery and diversified fulfillment capabilities, it
further improved cross-regional service coverage and delivery reliability, providing strong support for
the expansion of new business initiatives.
      During the Reporting Period, challenging as the environment was, Colipu Group maintained its
strategic focus and firm development confidence, achieving steady and positive business performance. It
recorded revenue of RMB15,048 million, an increase of 9%.
                                                                                          Unit: RMB 0’000
         Colipu Group              2025              2024               2023          3-year average
      Revenue                   1,504,820.63      1,383,143.57       1,330,699.41        1,406,221.20
      Net profit                   33,464.83         32,178.31           40,120.65          35,254.59
      Increase the dividend payout ratio to safeguard the interests of shareholders. The Company
attaches great importance to investor return, safeguards shareholders’ rights and interests and adopts a
consistent dividend policy. It brings investors long-lasting and stable return on investment through cash
dividends and other profit distribution ways, and shares with shareholders the operating results of the
Company. It has increased the cash dividend payout ratio for quite a few consecutive years. The
Company’s cash dividend per 10 shares for 2025 is expected to be RMB10 (to be deliberated by the
meeting of shareholders), and cash dividends are expected to account for 70% of the net profit
attributable to the parent company in the year. Since the Company went public, the cumulative dividends
and share repurchases (including the profit distribution plan for 2025) have exceeded RMB5.6 billion.
                                            Annual Report 2025
     Retire repurchased shares to boost market confidence. To effectively improve investment
returns for shareholders, further convey to investors its firm confidence in its long-term intrinsic value,
enhance its long-term investment value and strengthen investor confidence, the Company retired
capital accordingly during the Reporting Period.
     During the Reporting Period, the Company released its sustainable development strategic goals for
promoting the transformation of ESG from a concept into measurable, trackable actions. In terms of
sustainable products, it launched the eco-conscious stationery series and the low-carbon office stationery
series. In response to climate change, it systematically advanced emissions reduction efforts, increased
investment in renewable energy such as photovoltaic power generation and green electricity
procurement, and raised the proportion of renewable energy used. In terms of sustainable supply chain, it
continuously implemented supplier ESG assessments, improved the admission mechanism for new
suppliers, and organized special training sessions for key suppliers. In empowering employees and
communities, it mobilized executives and employees to actively participate in charitable donations and
carry out volunteer services. With outstanding performance in ESG practice, the Company’s MSCI ESG
rating was upgraded to “AA”, and it was included in S&P Global’s Sustainability Yearbook, the Ministry
of Ecology and Environment’s 2025 Model Cases of Biodiversity Conservation in Industry and
Commerce, the China Association for Public Companies’ 2025 Best Practices in Sustainability among
Listed Companies, and the “2025 China Enterprise ESG 100 Index” list.
IV. Analysis on Core Competitiveness during the Reporting Period
√ Applicable □ Not applicable
     As one of the largest stationery manufacturers in the world, the Company enjoys unique
competitive advantages in terms of brand, channel, supply chain, design, and R&D in its core traditional
business. Colipu Group leads the way as a supplier for governments and enterprises in the online
channel. During the Reporting Period, no significant change occurred to the core competitive edges of
the Company, which are summarized as follows:
     M&G is a company with a strong sense of mission and social responsibility, with an aim to “make
study and work more joyful and effective”. The Company has been in business for more than 30 years
and has always kept its original aspiration in mind. It has promoted development through innovation and
breakthroughs, and provided consumers with high-quality products and services. It is committed to
providing Chinese students with affordable good domestic stationery, and continues to devote itself to
various social welfare undertakings, thereby promoting its continuous development. At the same time,
the Company has cultivated an excellent team that highly recognizes the Company’s values, has passion
and technology, is good at innovation and competitive in the industry, is united and enterprising, and
keeps unremitting struggle.
      As a leader of “own brand + domestic demand” in China’s stationery industry, the Company has
established a leading position for its own brand products amidst competitions of domestic market. The
Company ranked the first in “Top Ten Enterprises in China’s Light Industry and Writing Instrument” for
designated stationery brand for Boao Forum for Asia for many years. The Company was selected as one
of the “Excellent Products of the Era” in the light industry among the first batch of China’s Famous
Consumer Products by the Ministry of Industry and Information Technology. The Company has won the
title of “China’s 500 Most Valuable Brands” for eight straight years and the title of “China Annual No.1
Stationery Brand Award” again in 2025, winning international praise with excellent quality and brand
reputation and showing the brand value of Chinese stationery to the world.
                                            Annual Report 2025
      The Company has a strong first-mover and leading advantage with a wide and deep coverage of
distribution network across China. The Company has established an efficient distribution management
system and a domestic terminal network with deep penetration. During the Reporting Period, the
Company continued to broaden and deepen the national network and perfected online and offline
channels, establishing an omni-channel, multi-level and multi-contact marketing network. At the end of
the Reporting Period, the Company has 35 tier-one distributor partners, and about 1,200 tier-two and
tier-three distributor partners across China, covering approximately 70,000 retail stationery shops with
“M&G Stationery” logo across China, over 900 large retail stores, and more than one thousand of
authorized stores in Taobao system, JD.com, Pinduoduo, Douyin, and other e-commerce channels.
      The Company benefits from experience of large-scale manufacturing accumulated throughout the
past years, independent mold development capability, stable supply chain, sound quality control system
and introduction of advanced information management systems. The Company has the capability of
large-scale manufacturing with high quality control standard. The good and stable product quality has
won general recognition and favorable comments from consumers. The Company promotes the
application of intelligent manufacturing technology in the production and inspection links of the
stationery industry, and applies machine vision technology in various key links to greatly improve the
efficiency of production and inspection, thus serving as a benchmark and demonstration role for
transforming the extensive industrial mode into an intensive and intelligent one.
      With the idea of partnership in its business operation, the Company has strived to build a high
standard supply chain ecosystem. By continuously iterating and upgrading its scientific management for
supply chain, the Company has obtained new practice achievements in information collaboration across
the value chain, inventory optimization, financial support for supply chain, management informatization
of quality and order, and optimization of supplier performance to help business partners get stronger
operation system and simultaneously improve both loyalty and operation capability of its business
partners. By doing so, it has achieved win-win development together with its ecosystem partners.
     The Company has the capability to respond timely to market and strong R&D capacity for new
products. The Company conducts market research for new product development and identifies market
trends. The Company launches about one thousand new products each year to meet consumer needs. The
Company has been awarded with such four major international industrial design awards as German iF
Award, Red Dot Design Award, G-mark, and IDEA for its product design. The Company has a design
studio in Israel, highlighting the world-class design capabilities of M&G Stationery. As of the end of the
Reporting Period, the Company owned more than 1,400 patents for invention, design and utility models.
     The Company has broken through the foreign technical barriers and got hold of the raw material
formula and production technology with domestic independent intellectual property rights, greatly
enhancing the percentage of home-made raw materials and finished products. The Company has been
recognized as a national high-tech enterprise since 2010, and has built a number of national or provincial
level technology platforms such as National Industrial Design Center, China Key Laboratory of Light
Industry and Writing Instrument Engineering Technology, Shanghai Writing Instrument Engineering
Technology Research Center. The testing laboratory of the Company had CNAS certification
qualification and its testing capabilities have reached a world-class level.
     Colipu Group is committed to providing highly influential large-scale customers in China,
including central state-owned enterprise groups, large financial institutions, government departments,
and Global 500 companies, with full-scenario digital procurement solutions covering one-stop office
supplies, MRO industrial products, marketing gifts, and employee benefits. It has long been deeply
engaged in the government and enterprise procurement services sector, and has accumulated rich service
experience, project experience and customer resources. Over time, it has established a stable customer
base and strong market reputation, becoming one of the most influential enterprise procurement service
providers in China, recognized and trusted by both customers and suppliers.
     Over the years, Colipu Group has built a deep and well-established manufacturer supply chain
network, with product offerings covering renowned domestic and international brands and a
comprehensive product portfolio capable of meeting customers’ diverse procurement needs across
                                            Annual Report 2025
multiple scenarios. By continuously advancing supply chain management and capabilities in
merchandise governance, it has achieved end-to-end visualization and traceability from procurement to
fulfillment and improved the efficiency of resource allocation and supply chain collaboration.
Leveraging data analysis capabilities, it is able to better understand changes in customer demand,
continuously optimize merchandise mix and supply strategies, and constantly improve the product
system.
      Colipu Group has established an efficient nationwide logistics and distribution network. Through
the coordinated integration of its self-operated warehousing and distribution capabilities with third-party
logistics providers, it effectively covers major regions across the country, enabling prompt order
response and reliable fulfillment. It continues to advance the digitalization and automation of
warehousing and logistics systems, improving order processing efficiency and fulfillment stability. In
addition, it offers a variety of online procurement solutions, including the enterprise-specific
e-commerce platform and the marketing gift & benefits redemption platform, supporting system
integration and digital tool applications to provide customers with a convenient and efficient
procurement experience.
      Colipu Group keeps advancing the digitalization of its procurement services, and has been
recognized as both a National E-commerce Demonstration Enterprise and a Shanghai E-commerce
Demonstration Enterprise. It has a technical R&D team of approximately one hundred members, and
leverages intelligent systems to manage the full business cycle from “business opportunity to payment
collection”. Both its digital business systems and system integration capabilities are independently
developed in-house and have been certified as Information System Security Protection Grade III,
ensuring the security and integrity of transaction data.
      Colipu Group is supported by an experienced professional team, providing end-to-end services
from pre-sales to after-sales, with a service network covering all 31 provinces, autonomous regions, and
municipalities in China. Leveraging long-standing brand influence, a solid financial foundation, a stable
supply chain fulfillment system, and continuously improving system capabilities, it strengthens
compliance management throughout its operations and enhances the transparency and traceability of
business processes, enabling it to meet the complex procurement needs of large customers across
multiple organizations, regions, and scenarios, while continuously improving service capabilities and
delivering sustained value to customers.
      Rooted in the enterprise procurement service sector, Colipu Group continues to explore high-quality
development pathways and is committed to driving the sustainable transformation of the industry. It
upholds high-quality development by continuously improving its sustainable procurement service system,
advancing green operations and optimized supply chain management, deepening digital and intelligent
enablement, supporting employee growth, and actively contributing to community development. During
the Reporting Period, Colipu Group published its Environmental, Social and Governance (ESG) White
Paper.
V. Financial Performance during the Reporting Period
      In 2025, the Company recorded revenue of RMB25,064 million, an increase of 3.45%, and a net
profit attributable to its shareholders of RMB1,310 million, a decrease of 6.12%, while net profit
attributable to its shareholders after deducting non-recurring profit and loss amounted to RMB1,124
million, a decrease of 8.92%. As at the end of 2025, the total asset of the Company amounted to
RMB18,075 million, an increase of 8.97%. The net asset attributable to shareholders of the listed
company amounted to RMB9,288 million, an increase of 4.24%. The Company has maintained healthy
growth and its assets are in a good condition.
(I) Analysis of principal operation
                                                                      Unit: Yuan    Currency: RMB
                                    Amount in the current Amount in the same       Change in the
               Item
                                            period           period last year      proportion (%)
Revenue                                 25,063,909,836.47    24,228,248,698.65                  3.45
Operation cost                          20,462,813,963.30    19,649,752,559.47                  4.14
Selling expenses                         1,860,144,631.03     1,738,039,609.61                  7.03
Administrative expenses                    966,231,850.63       981,802,848.21                 -1.59
                                                   Annual Report 2025
       Financial expenses                           -5,076,226.98          -39,623,735.02         Not applicable
       R&D expenses                                189,639,354.87          189,145,980.66                   0.26
       Net cash flow generated from
       operating activities
       Net cash flow generated from
                                                -1,715,924,885.85       -1,574,839,557.15         Not applicable
       investing activities
       Net cash flow from financing
                                                -1,352,914,770.08         -698,573,860.33         Not applicable
       activities
       Income from investment                        9,895,830.01             -364,758.05         Not applicable
       Gains from asset disposal                    -2,847,905.15              -10,284.89         Not applicable
       Non-operating expenses                       20,142,203.88           15,492,461.01                  30.01
             Explanation on the reason for change in financial expenses: Interest income during the Reporting
       Period decreased compared with the same period last year.
             Explanation on the reason for change in net cash flow from financing activities: Dividend
       distributions and loan repayments increased during the Reporting Period, and capital contributions from
       minority shareholders were received in the same period last year.
             Explanation on the reason for change in income from investment: During the Reporting Period, the
       Company made additional investments in an equity investee, which constituted a business combination
       not under common control. Gains were generated from the remeasurement of the formerly held equity
       interests at fair value before the acquisition date.
             Explanation on the reason for change in gains from asset disposal: Losses from the Company’s
       disposal of certain outdated equipment increased during the Reporting Period.
             Explanation on the reason for change in non-operating expenses: Public welfare donations made by
       the Company during the Reporting Period increased compared with the same period last year.
       A detailed description of the major changes in the Company’s business type, profit composition or profit
       source in the current period
       □ Applicable √ Not applicable
       √ Applicable □ Not applicable
             During the Reporting Period, exclusive of related-party transactions, the Company’s core
       traditional business decreased by 5% as compared to the corresponding period of last year, and new
       business increased by 9% as compared to the corresponding period of last year.
        (1) Result of principal business by industry, product, region and sales model
                                                                                  Unit: Yuan      Currency: RMB
                                        Result of principal business by industry
                                                                           Change in Change in         Change in gross
                                                                 Gross
                                                                             revenue     cost from       profit margin
   By industry            Revenue            Operation cost      margin
                                                                            from last     last year      from last year
                                                                  (%)
                                                                            year (%)         (%)              (%)
Manufacturing
and sales of                                                                                            Increase by 1.55
stationery and                                                                                         percentage points
office supplies
                                                                                                       Decrease by 0.51
Retail industry       16,216,302,425.98 14,691,168,352.98           9.40          8.68          9.29
                                                                                                        percentage point
Service industry             485,849.00                                         -73.79
                                        Result of principal business by product
                                                                           Change in Change in         Change in gross
                                                                 Gross
                                                                             revenue     cost from       profit margin
   By product             Revenue            Operation cost      margin
                                                                            from last     last year      from last year
                                                                  (%)
                                                                            year (%)         (%)              (%)
                                                      Annual Report 2025
 Writing                                                                                                        Increase by 1.99
 instruments                                                                                                   percentage points
 Student                                                                                                        Increase by 1.93
 stationery                                                                                                    percentage points
                                                                                                                Increase by 0.03
 Office stationery      3,301,497,877.29       2,386,764,946.84        27.71        -7.57          -7.60
                                                                                                                percentage point
                                                                                                               Decrease by 0.05
 Other products           984,028,392.69         552,019,684.22        43.90        13.76          13.86
                                                                                                                percentage point
 Direct office                                                                                                 Decrease by 0.43
 supplies                                                                                                       percentage point
 Management fee
 for franchising
                                            Result of principal business by region
                                                                              Change in       Change in        Change in gross
                                                                     Gross
                                                                                revenue       cost from          profit margin
    By region              Revenue             Operation cost       margin
                                                                               from last       last year         from last year
                                                                      (%)
                                                                               year (%)           (%)                 (%)
                                                                                                               Decrease by 0.71
 China                23,904,618,821.92       19,740,199,409.52        17.42         3.34              4.24
                                                                                                                percentage point
 Other countries                                                                                                Increase by 3.44
 and regions                                                                                                   percentage points
         Principal business by industry, product, region, and sales model
         stationery and office supplies, revenue from retail industry and revenue from service industry.
         non-M&G products.
         the decrease in service revenue was mainly due to the corresponding reduction in management fee for
         franchising charged to franchisees as the number of franchisees increased.
         Group).
         Group).
         instruments, student stationery and office supplies.
                                                                                                       Unit: RMB 0’000
                                               Result of revenue by business
                                                                                    Change in
               Business          Revenue in 2025         Revenue in 2024                                      Change
                                                                                     amount
          Core traditional
          business
          Direct office
          supplies business
          Large retail store
          business
          Transactions
                                        -41,471.80                -40,816.38                 -655.42    Not applicable
          offset
                 Total                2,506,390.98             2,422,824.87                83,566.11                   3%
       (2) Analysis of production and sales volume
       √ Applicable □ Not applicable
Major products           Unit         Production               Sales           Inventory      Change in       Change in     Change in
                                                               Annual Report 2025
                                                                                                       production      sales      inventory
                                                                                                        from last    from last    from last
                                                                                                        year (%)     year (%)      year (%)
Writing instruments          Piece/Numbers      1,769,191,818      1,828,140,098    404,334,673             -4.19        -3.61        -12.72
Student stationery           Piece/Numbers      4,580,085,818      4,648,464,897    472,581,840            -10.03        -9.80        -12.64
Office stationery            Piece/Numbers      1,919,604,222      1,923,051,820    177,026,370             -3.56        -3.19         -1.91
Other products               Piece/Numbers         28,003,385         27,379,780     11,564,900               9.96       15.73          5.70
Direct office supplies       Numbers              748,426,905        747,204,568     16,478,591             44.42        44.22          8.01
               Explanation on production and sales volume
               No
               (3) Performance of major procurement contracts and major sales contracts
               □ Applicable √ Not applicable
               (4) Analysis of cost
                                                                                                               Unit: RMB Yuan
                                                                  By industry
                                                                                                                Percentage
                                                                                                               change in the
                                                                                                 Percentage
                                                           Percentage                                           amount for
                                                                                                   of total
                                                             of total      Amount in the                        the current    Explanation
                          Cost        Amount in the                                               costs for
    By industry                                             costs for     same period last                       period as       on the
                          item        current period                                              the same
                                                           the current         year                            compared to      situation
                                                                                                 period last
                                                           period (%)                                            the same
                                                                                                  year (%)
                                                                                                                period last
                                                                                                                 year (%)
  Manufacturing
                      Cost of
  and sales of
                      principal    5,733,426,445.11             28.07     6,176,303,519.87            31.48            -7.17
  stationery and
                      business
  office supplies
                      Cost of
  Retail industry     principal   14,691,168,352.98             71.93    13,442,763,378.60            68.52            9.29
                      business
  Service
                      /                                /             /                       /             /               /
  industry
                                                                  By product
                                                                                                                Percentage
                                                                                                               change in the
                                                                                                 Percentage
                                                           Percentage                                           amount for
                                                                                                   of total
                                                             of total      Amount in the                        the current    Explanation
                          Cost        Amount in the                                               costs for
    By product                                              costs for     same period last                       period as       on the
                          item        current period                                              the same
                                                           the current         year                            compared to      situation
                                                                                                 period last
                                                           period (%)                                            the same
                                                                                                  year (%)
                                                                                                                period last
                                                                                                                 year (%)
                      Cost of
  Writing
                      principal    1,335,198,920.75              6.54     1,386,323,149.56             7.07            -3.69
  instruments
                      business
                      Cost of
  Student
                      principal    2,081,715,902.30             10.19     2,293,212,791.68            11.69            -9.22
  stationery
                      business
                      Cost of
  Office
                      principal    2,386,764,946.84             11.69     2,583,183,210.58            13.17            -7.60
  stationery
                      business
                      Cost of
  Other products                      552,019,684.22             2.70      484,826,976.29              2.47           13.86
                      principal
                                                      Annual Report 2025
                 business
                 Cost of
Direct office
                 principal   14,068,895,343.98         68.88      12,871,520,770.36      65.61            9.30
supplies
                 business
Management
fee for          /                             /              /                   /           /               /
franchising
          Explanation on other situations of cost analysis
          No
          (5) Change in the scope of consolidation due to change in the equity of major subsidiaries during
          the Reporting Period
          □ Applicable √ Not applicable
          (6) Major change in or adjustment to the Company’s business, products or services during the
          Reporting Period
          □ Applicable √ Not applicable
          (7) Major customers and suppliers
          Customers or suppliers under the same controller are presented on a consolidated basis as a single
          customer or supplier, except for those actually controlled by the same state-owned asset management
          authority.
          Explanation on consolidation of the following information of customers and suppliers under the same
          control
          No
          A. Major customers and suppliers of the Company
          Sales of the top 5 customers amounted to RMB6,107.37 million, accounting for 24.37% of the total
          annual sales. Of the sales of the top 5 customers, sales of related parties amounted to RMB0, accounting
          for 0% of the total annual sales.
                                                                                                    Unit: RMB Yuan
          Rank           Customer name                     Sales amount               As % of the annual total sales
                               Total                             6,107,374,512.80                24.37
          Purchase amount of the top 5 suppliers amounted to RMB1,421.84 million, accounting for 6.89% of the
          total annual purchase amount. Of the purchase amount of the top 5 suppliers, purchase amount of related
          parties amounted to RMB0, accounting for 0% of the total annual purchase amount.
                                                                                                Unit: RMB Yuan
                                                                                     As % of the annual total
            Rank           Supplier name              Procurement amount
                                                                                           procurement
                                Total                         1,421,836,570.78                 6.89
                                          Annual Report 2025
B. During the Reporting Period, the sales attributable to a single customer exceeded 50% of the
total sales, there are new customers among the top 5 customers, or a small number of customers
were heavily depended on.
□ Applicable √ Not applicable
During the Reporting Period, the procurement from a single supplier exceeded 50% of the total
amount, and there were new suppliers among the top 5 suppliers or a small number of suppliers
were heavily depended on.
□ Applicable √ Not applicable
C. Indicate whether the Company’s stock was subject to the delisting risk warning or other risk
warnings during the Reporting Period.
Top 5 customers
□ Applicable √ Not applicable
Top 5 suppliers
□ Applicable √ Not applicable
D. Trading revenue during the Reporting Period
√ Applicable □ Not applicable
                                                                     Unit: 0’000   Currency: RMB
                            Revenue in the current    Revenue in the same
   Trading operations                                                               Change (%)
                                  period                period last year
 Sale of office supplies             1,504,820.63              1,383,143.57                      8.80
Top 5 customers where trading revenue accounts for more than 10% of total revenue
√ Applicable □ Not applicable
                                                                      Unit: 0’000 Currency: RMB
 Rank           Customer name                   Sales amount            As % of the annual total sales
 Total                 /                                  610,737.47                            24.37
Top 5 suppliers where trading revenue accounts for more than 10% of total revenue
√ Applicable □ Not applicable
                                                                        Unit: 0’000 Currency: RMB
                                                                            As % of the annual total
 Rank            Supplier name               Procurement amount
                                                                                  procurement
 Total                  /                                    57,086.48                            4.08
Other descriptions
No
√ Applicable □ Not applicable
                                                                                    Unit: RMB Yuan
Item in statement       Amount in the     Amount in the last   Change in the       Reason for change
                                          Annual Report 2025
                      current period           period          proportion (%)
Selling expenses      1,860,144,631.03     1,738,039,609.61               7.03
Administrative
expenses
R&D expenses           189,639,354.87        189,145,980.66              0.26
                                                                                 Interest income during
                                                                                 the Reporting Period
Financial
                         -5,076,226.98       -39,623,735.02    Not applicable    decreased compared
expenses
                                                                                 with the same period
                                                                                 last year.
 (1) Table of R&D investment
 √ Applicable □ Not applicable
                                                                      Unit: Yuan     Currency: RMB
 Expensed R&D investment in the current period                                        189,639,354.87
 Capitalized R&D investment in the current period                                               0.00
 Total R&D investment                                                                 189,639,354.87
 Proportion of total R&D investment in revenue (%)                                              0.76
 Percentage of capitalized R&D investment (%)                                                   0.00
 (2) Details of R&D personnel
 √ Applicable □ Not applicable
 Number of the Company’s R&D staff                                                                450
 Percentage of the number of R&D staff to the Company’s total
 number of employees (%)
                            Educational background structure of R&D personnel
 Category                                                                  Number of people
 Doctor’s degree                                                                                    0
 Master’s degree                                                                                   47
 Bachelor                                                                                         236
 College degree                                                                                    87
 High school and below                                                                             80
                                     Age structure of R&D personnel
 Category                                                                  Number of people
 < 30 years old (exclusive)                                                                       130
 > 60 years old                                                                                     0
 (3) Explanation
 √ Applicable □ Not applicable
 The total R&D investment of the parent company accounted for 3.43% of the parent company’s revenue.
 (4) Reasons for the major changes in the composition of R&D personnel and the impact on the
 future development of the Company
 □ Applicable √ Not applicable
 √ Applicable □ Not applicable
                                                         Annual Report 2025
                                                                                                            Unit: RMB Yuan
                                                                                Change in
                            Amount in the            Amount in the same            the
          Item                                                                                           Reason for change
                            current period            period last year          proportion
                                                                                   (%)
  Net cash flow
  generated from
  operating
  activities
  Net cash flow
  generated from                                                                      Not
                           -1,715,924,885.85             -1,574,839,557.15
  investing                                                                     applicable
  activities
                                                                                                Dividend distributions and loan
                                                                                                repayments increased during the
  Net cash flow
                                                                                      Not       Reporting Period, and capital
  from financing           -1,352,914,770.08              -698,573,860.33
                                                                                applicable      contributions from minority
  activities
                                                                                                shareholders were received in
                                                                                                the same period last year.
        (II) Explanation on significant change of profit caused by non-core business
        □ Applicable √ Not applicable
        (III) Analysis of assets and liabilities
        √ Applicable □ Not applicable
                                                                                             Unit: Yuan     Currency: RMB
                                                                                              Change
                                             Percenta                                             in
                                                                                 Percenta
                                               ge of                                          percenta
                                                                                   ge of
                                               total                                            ge for
                                                                                   total
                       Amount as at the      assets at                                           the
                                                         Amount as at the end    assets at
       Items           end of the current    the end                                           current           Explanation
                                                           of last period        the end
                            period               of                                            period
                                                                                  of last
                                              current                                         over the
                                                                                  period
                                              period                                             last
                                                                                    (%)
                                                (%)                                            period
                                                                                                 (%)
                                                                                                          During the Reporting
Held-for-trading                                                                                          Period, the purchased
financial assets                                                                                          bank’s wealth management
                                                                                                          products increased.
                                                                                                          During the Reporting
                                                                                                          Period, Colipu Group’s
Bills receivable           59,999,337.34         0.33           17,425,526.65        0.11       244.32    commercial acceptance bills
                                                                                                          increased compared with
                                                                                                          the beginning of the year.
                                                                                                          During the Reporting
                                                                                                          Period, the compensation
Non-current assets
due within one year
                                                                                                          of Axus Stationery was
                                                                                                          received.
                                                                                                          During the Reporting
                                                                                                          Period, term deposits due
Other current assets      152,292,696.29         0.84         243,981,456.14         1.47       -37.58
                                                                                                          within one year were due as
                                                                                                          performance bonds.
                                                                                                          This is mainly due to the
Construction in                                                                                           completion of the Central
progress                                                                                                  China Base Project during
                                                                                                          the Reporting Period and
                                                 Annual Report 2025
                                                                                             the corresponding transfer
                                                                                             from construction in
                                                                                             progress to fixed assets.
                                                                                             During the Reporting
                                                                                             Period, the Company made
                                                                                             additional investments in an
                                                                                             equity investee, which
                                                                                             constituted a business
                                                                                             combination not under
Goodwill                105,404,838.99   0.58          63,529,740.20      0.38      65.91
                                                                                             common control. Goodwill
                                                                                             arose from the difference
                                                                                             between the purchase cost
                                                                                             and the fair value of the
                                                                                             acquiree’s identifiable net
                                                                                             assets.
                                                                                             During the Reporting
                                                                                             Period, prepayments for
Other non-current
assets
                                                                                             decreased compared with
                                                                                             the beginning of the year.
                                                                                             During the Reporting
                                                                                             Period, the Company
Derivative financial                                                                         entered into forward foreign
liabilities                                                                                  exchange contracts, which
                                                                                             resulted in losses from
                                                                                             changes in fair value.
                                                                                             Lease payments received in
Accounts received
in advance
                                                                                             Reporting Period.
                                                                                             The estimated sales return
Other current
liabilities
                                                                                             Period increased.
                                                                                             During the Reporting
Long-term                                                                                    Period, Axus Stationery’s
borrowings                                                                                   long-term borrowings
                                                                                             increased.
                                                                                             This is mainly due to the
                                                                                             addition of new pending
Estimated liabilities      500,000.00    0.00             369,927.50      0.00      35.16
                                                                                             lawsuits during the
                                                                                             Reporting Period.
                                                                                             Some projects were
                                                                                             completed and accepted
                                                                                             during the Reporting
Deferred income          15,887,633.60   0.09          34,963,559.04      0.21     -54.56
                                                                                             Period, and their related
                                                                                             income was recognized in
                                                                                             the current period.
                                                                                             During the Reporting
                                                                                             Period, shares were
                                                                                             repurchased, some of which
                                                                                             were retired. For details, see
                                                                                             the Announcement on the
                                                                                             Implementation Results of
                                                                                             Share Repurchase and
Less: Treasury                                                                               Changes in Shares
shares                                                                                       (Announcement No.:
                                                                                             Announcement on
                                                                                             Re-purposing Part of the
                                                                                             Repurchased Shares and
                                                                                             Their Retirement
                                                                                             (Announcement No.:
                                                                                             This is mainly due to the
Other                                                                                  Not
                                                                                             effect of differences in the
comprehensive              -590,724.83   -0.00         -11,423,451.31     -0.07   applicab
                                                                                             translation of the financial
income                                                                                  le
                                                                                             statements of Back to
                                          Annual Report 2025
                                                                                   School Holding AS in
                                                                                   foreign currencies during
                                                                                   the Reporting Period.
Other descriptions
No
√ Applicable □ Not applicable
(1) Asset size
Including: overseas assets of 572,549,693.17 (unit: Yuan, currency: RMB), accounting for 3.17% of the
total assets.
(2) Explanation for the high proportion of overseas assets
□ Applicable √ Not applicable
√ Applicable □ Not applicable
     (1) The subsidiary, Axus Stationery, entered into the Maximum Mortgage Contract numbered
ZD9874202200000005 with Shanghai Pudong Development Bank Co., Ltd. Fengxian Sub-branch on
September 15, 2022 and the Supplemental Contract to the Maximum Mortgage Contract numbered
ZD9874202200000005-01 with Shanghai Pudong Development Bank Co., Ltd. Fengxian Sub-branch on
September 22, 2025, under which it pledges its lands and plants under Property HFDQ Zi (2013) No.
maximum secured claim amount of RMB200 million and for the term of credit line from September 15,
     (2) The subsidiary Jiangsu Marco (江苏马可) entered into the Maximum Mortgage Contract
numbered BD133202411010001201 with Jiangsu Siyang Rural Commercial Bank Co., Ltd. on October
RMB49,507,300 and for the term of credit line from October 30, 2024 to October 17, 2027.
     (3) The subsidiary Jiangsu Marco (江苏马可) entered into the Maximum Mortgage Contract
numbered DY131425000031 with Bank of Jiangsu Co., Ltd. Suqian Branch on June 4, 2025, under
which it pledges its Su (2019) Siyang County Real Estate No. 0017990, Su (2019) Siyang County Real
Estate No. 0018047, Su (2019) Siyang County Real Estate No. 0018032, and Su (2019) Siyang County
Real Estate No. 0017993, at the maximum secured claim amount of RMB45.78 million and for the term
of credit line from June 4, 2025 to May 21, 2028.
     (4) The subsidiary Jiangsu Marco (江苏马可) entered into the Maximum Mortgage Contract
numbered 110011125001C001 with Industrial Bank Suqian Branch on December 19, 2025, under which
it pledges its patents including Automatic Plate Flipping Device (Patent No.: CN109850536B),
Automatic Feeding Circular Stack Planking Device (Patent No.: CN107253613B), Defect Detection and
Sorting Device in Wooden Pencil Slat Processing (Patent No.: CN105548209B), and Manufacturing
Method of Colored Pencil Lead (Patent No.: CN101412867B), at the maximum principal limit of
RMB10 million and for the term of credit line from December 19, 2025 to December 19, 2026.
RMB1,039,079,333.49, mainly including term deposits over three months.
□ Applicable √ Not applicable
                                          Annual Report 2025
(IV) Analysis on industry operating information
√ Applicable □ Not applicable
     For details, see “II. Description of the Company’s industry conditions during Reporting Period” in
“Section III Management Discussion and Analysis” of this report.
                                                                        Annual Report 2025
(V) Analysis of investment
Overall analysis of external equity investment
√ Applicable □ Not applicable
     For details, see “1. Business combination not under common control” under “IX. Change in Consolidation Scope” in “Section VIII Financial Report” of this
report.
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
Securities investment
□ Applicable √ Not applicable
Description of securities investment
□ Applicable √ Not applicable
Private equity fund investment
□ Applicable √ Not applicable
Derivatives investment
√ Applicable □ Not applicable
(1) Derivatives investments for hedging purposes during the Reporting Period
√ Applicable □ Not applicable
     On April 28, 2025, the Company held the 11th Meeting of the 6th Board of Directors, which reviewed and approved the Proposal on Conducting Foreign
Exchange Derivative Transactions. The outstanding balance of foreign exchange derivative transactions to be conducted by the Company and its subsidiaries shall
not exceed RMB750 million (or other equivalent amounts in foreign currencies) at any time during the transaction period. The total balance of trading margins and
premiums occupied at any time during the said period shall not exceed RMB70 million (or other equivalent amounts in foreign currencies). The transaction period
shall be valid for 12 months from the date of approval at the 11th Meeting of the 6th Board of Directors. The transaction amount at any time within the transaction
                                                                                 Annual Report 2025
     period (including the relevant amount from reinvestment of earnings generated from the aforesaid transactions) shall not exceed the above-mentioned limits. For
     details, please refer to the Announcement on Conducting Foreign Exchange Derivative Transactions (Announcement No.: 2025-017) disclosed by the Company on
     April 29, 2025.
          As of the end of the Reporting Period, the carrying value of the Company’s forward foreign exchange contracts stood at RMB-46,000. The gain or loss arising
     from foreign exchange derivatives during the Reporting Period amounted to RMB-2,294,000. The Company conducts foreign exchange derivative transactions in
     accordance with the principle of prudence. Based on its production and operation activities, such transactions are entered into for hedging purposes only. The
     Company does not engage in speculative or arbitrage transactions purely for profit, nor do such transactions affect the development of its principal business.
     (2) Derivatives investments for speculative purposes during the Reporting Period
     □ Applicable √ Not applicable
     Other descriptions
     No
     □ Applicable √ Not applicable
     Opinion of independent directors
     No
     (VI) Sale of significant assets and equity interests
     □ Applicable √ Not applicable
     (VII) Analysis of major controlled companies and shareholding companies
     √ Applicable □ Not applicable
     Major subsidiaries and shareholding companies with an over 10% effect on the Company’s net profit
     √ Applicable □ Not applicable
                                                                                                                                                   Unit: 0’000     Currency: RMB
                                     Type of
         Company name                           Principal operations Registered capital       Total assets        Net assets       Revenue         Operating profits     Net profit
                                    company
Shanghai M&G Zhenmei Stationery
Co., Ltd.（上海晨光珍美文具有限 Subsidiary                Stationery and office
                                               supplies
公司）
Colipu Technologies Group Co.,
                                Subsidiary     Office supplies               59,400.00               826,448.19      271,581.00     1,504,820.63           45,665.85          33,464.83
Ltd. （科力普科技集团股份有限公
                                                                             Annual Report 2025
司）
Shanghai M&G Stationery & Gift
                                               Stationery and office
Co., Ltd.（上海晨光文具礼品有限 Subsidiary                                          19,941.94              158,181.12   93,815.60    356,328.63   13,678.84   10,080.74
                                               supplies
公司）
M&G Life Enterprise Management
                                               Stationery and office
Co., Ltd.（晨光生活馆企业管理有 Subsidiary                                          10,000.00              131,881.23   -13,574.37   158,509.88   -7,816.80   -7,894.92
                                               supplies
限公司）
Shanghai M&G Jiamei Stationery
Co., Ltd.（上海晨光佳美文具有限 Subsidiary                Stationery and office
                                               supplies
公司）
Shanghai M&G Information
Technology Co., Ltd.（上海晨光信 Subsidiary          Office supplies            5,000.00               45,590.56    -1,477.75   120,360.72     -793.71     -712.79
息科技有限公司）
Shenzhen Erya Creative and
Cultural Development Co., Ltd.（深 Subsidiary    Design, office
                                               supplies and so forth
圳尔雅文化创意发展有限公司）
Shanghai M&G Office Stationery
                                  Subsidiary   Office supplies            5,000.00               92,647.69   68,486.42    164,676.29   15,863.18   11,939.20
Co., Ltd.
Axus Stationery (Shanghai)                     Stationery and office
                                  Subsidiary                              8,100.00               60,433.67    6,294.15     50,590.51   -2,024.10   -2,437.28
Company Ltd.                                   supplies
Shanghai Chenxun Enterprise
Management Co., Ltd.（上海晨讯企 Subsidiary          Information
                                               Consultation
业管理有限公司）
Shanghai Qizhihaowan Culture and
Creativity Co., Ltd.（上海奇只好玩 Subsidiary         Creative service          10,000.00               10,196.21    4,976.34     23,169.84    1,028.75     946.14
文化创意有限公司）
Guangdong South China M&G
Stationery Co., Ltd.（广东华南晨光 Subsidiary         Stationery and office
                                               supplies
文教用品有限公司）
Hubei M&G Central China
Information Technology Co., Ltd.（ Subsidiary   Stationery and office
                                               supplies
湖北晨光华中信息科技有限公司）
Shanghai M&G Online Selection
Stationery Co., Ltd.（上海晨光在线 Subsidiary         Stationery and office
                                               supplies
甄选文具有限公司）
     Subsidiaries acquired and disposed of during the Reporting Period
     √ Applicable □ Not applicable
                                                                       Annual Report 2025
                                                       Methods of acquiring and disposing of subsidiaries   Impact on overall production, operation and
                  Company name
                                                                  during the Reporting Period                             performance
 Shanghai Mymybear Enterprise Management Co.,          Acquired through a business combination not under
                                                                                                                      No significant impact
     Ltd. (上海沫沫班长企业管理有限公司)                                             common control
                                                       Acquired through a business combination not under
       M&G Stationery (Thailand) Co., Ltd.                                                                            No significant impact
                                                                       common control
 Lanzhou M&G Cultural Supplies Co., Ltd. (兰州晨
                                                                      Newly incorporated                              No significant impact
            光文化用品有限公司)
Jiangsu M&G Life Enterprise Management Co., Ltd.
                                                                         De-registered                                No significant impact
     （江苏晨光生活馆企业管理有限公司）
Other descriptions
□ Applicable √ Not applicable
(VIII) Structured entities controlled by the Company
□ Applicable √ Not applicable
                                            Annual Report 2025
VI. Discussion and Analysis on Future Development of the Company
(I) Industry pattern and trend
√ Applicable □ Not applicable
       With the changes in the way of life and consumption habit of consumers, China’s retail industry
entered a new stage of redevelopment and innovation. Stationery industry faces challenges with
uncertainty of external environment, diversification of retail channels, and more individualized demands
from main customers group (now being the post-00s and post-10s). With the changing demographics of
China in particular the decreasing birth rate, stationery industry revenue growth comes less from by unit
volume growth, and more from consumption upgrade and product upgrade. Domestic consumption for
stationery in China becomes more brand conscious, innovative, IP-oriented, individualized and more
premium. There is a growing demand for premium cultural and creative products, driving the industry to
transform from functional satisfaction to value consumption. Demand for mid-to-high-end products that
combine aesthetic design, cultural connotations, and quality has continued to rise, providing broad
opportunities for high-quality enterprises that emphasize the integrated capabilities of R&D, design,
branding, and supply chain management.
       Sales channels for stationery in the domestic market are continuously expanding and improving.
Traditional retail stationery shops nearby school are still the dominant channel for China’s stationery
industry, and shares of other retail formats are increasing faster. Sales terminals and channels of the
industry are becoming more diversified, upgrading and competition in channels becomes more obvious.
With the popularity of the Internet, smart phones, and online transactions, people’s consumption habits
and consumption scenarios have changed. New-generation marketing means are becoming more
diversified, including online media platforms (such as Weibo, WeChat, Xiaohongshu, and Douyin) and
IP topic creation, which further tests enterprises’ ability to make quick response to industry trends.
Compared with small- and medium-sized enterprises, leading enterprises boast stronger and richer whole
network marketing and operation capabilities. They formulate refined marketing strategies by city to
reach consumers. In addition to online traffic, offline channels are also required to realize refined
management by empowering channels through organizational reform and information system.
According to the National Bureau of Statistics, online retail sales across the country recorded RMB15.9
trillion in 2025, an increase of 8.6%. Outstanding companies in the consumer industry seized the
development opportunities of online consumption and achieved continuous sales growth through online
and offline integration.
       The new generation of young people has become a major force in driving new consumption. The
consumption concepts of the youth group are changing, shifting from material fulfillment to emotional
resonance, and from standardized supply to personalized customizationfrom. With the shift from a focus
on the practicality of goods to an increasing emphasis on the emotional value of consumption, they are
more eager to achieve emotional resonance and psychological satisfaction through their purchases.
Emotional value has evolved from an added consumption benefit into a core factor influencing
consumption decisions among contemporary young consumers, who seek more than just emotional
value and cultural connection from IP collaborations, but also see consumption as a way to express their
identity and engage with communities built around shared interests. They value the sense of joy,
belonging, and companionship that products bring. What they purchase is not just stationery, but a
vehicle for emotion and self-expression. ACGN and cultural and creative merchandise have already
broken through traditional boundaries, reflecting youth consumers’ recognition of excellent cultural
works such as animation and comics. This trend reflects a shift in consumption demand from
“pragmatism” to “emotional value”.
       With continued development in the stationery industry, there could be higher industry consolidation,
and leading companies could gain larger market shares. China’s population of 1.4 billion accounts for
about 18% of global population, while leading stationery companies in China can continue to mostly
rely on the huge domestic market, they also have room for international expansion in international
markets, which could reinforce each other under favorable conditions. The global influence of Chinese
culture continues to rise. Not only do domestic consumers seek emotional resonance by purchasing
“Chinese trend” products, but overseas consumers are also beginning to embrace Chinese elements,
showing a positive outlook on Chinese goods.
       In the context of the digital economy, thanks to favorable factors such as policy driving, the rapid
advancement of centralized procurement by large- and medium-sized enterprises, and the competition
among various digital procurement service providers, great progress has been made in the digitalization,
                                            Annual Report 2025
e-commerce and centralization of public procurement in China, which have become the main form of
public resource transactions from central to local governments. According to the 2025 Smart
Procurement Supply Chain Development Report released by the China Federation of Logistics &
Purchasing, the total procurement amount for enterprises nationwide reached RMB188.3 trillion in 2024,
an increase of 7.3%. Among this, the total amount of digitalized procurement was RMB21.7 trillion, an
increase of 16.2%, with a penetration rate increasing to 11.5%, up by 0.9 percentage point compared
with 2023. According to Ebrun Think Tank analysis, the rise in penetration is driven by two key factors.
First, continued policy support, with governments at all levels rolling out targeted digital transformation
initiatives that provide clear guidance and financial backing for the digital procurement of enterprises;
second, the growing impact of technology, as the deeper application of big data and AI not only
streamlines procurement processes, but also significantly improves efficiency through features such as
intelligent matching and automated approvals. As supply chain digitalization accelerates, digital
procurement is expected to play an even greater role in helping enterprises reduce costs and improve
efficiency. More than 70 central enterprises have established online stores, with a clear trend of product
diversification. In addition to office supplies and industrial products, the procurement e-commerce
platforms of central enterprises have expanded into the areas of production materials and engineering
equipment.
      With the further development and application of information technology, data have become a new
production element. Recommendations of the Central Committee of the Communist Party of China for
Formulating the 15th Five-Year Plan for National Economic and Social Development call for upgrading
and optimizing traditional industries, advancing the quality and transformation of key sectors, promoting
technological upgrading, and accelerating the digital and intelligent transformation of manufacturing. It
also emphasizes the development of intelligent manufacturing, green manufacturing, and service-oriented
manufacturing, while speeding up changes in industrial models and corporate organizational structures.
The investment in the manufacturing industry has shifted from the investment in equipment and
assembly lines to the transformation of digital processes and digital transformation of products, in a bid
to apply digital technology to reduce channel costs and management costs and become a digital-driven
modern enterprise.
      The future of stationery products will be shaped by personalization, smart functionality, and
sustainability. As the new generation of consumers expresses stronger individuality and more diverse
needs, personalized stationery is gaining increasing popularity. At the same time, advances in technology
are bringing intelligent features deeper into learning and office scenarios. Intelligent stationery enables
users to complete tasks more efficiently, while offering support for learning and personalized guidance.
Influenced by national policies and a shifting social landscape, consumers are also paying closer
attention to product safety, environmental impact, and sustainability. As a result, green, environmental
and sustainable development has become a key direction for the future of the stationery industry.
(II) Development strategy of the Company
√ Applicable □ Not applicable
     To consolidate competitive advantages of core businesses by adhering to the mission of “make
study and work more joyful and effective”, being consumer centric, and emphasizing on innovation of
technology and products; to further expand new businesses of direct office supplies and direct retail; to
actively expand international market; and to promote digitalization, organization development and
talents, and investment and mergers and acquisitions with synergy. With continued efforts in those four
areas, the Company will realize the vision of becoming a “world-class M&G”.
      In order to realize the vision of “World-class M&G”, the Company has developed a sustainable
development strategy together with its business strategy. With its vision of “Writing a Sustainable
Business Future”, M&G aims to lead the sustainable development of the industry by focusing on four
pillars: sustainable products, response to climate change, sustainable supply chain and empowering
employees and communities.
(III) Operation plan
√ Applicable □ Not applicable
                                            Annual Report 2025
     In the face of changing consumer preferences, buying habits and consumption scenarios, as well as
the recovering market and long-term demographic trends in the domestic market, the Company will
adhere to long-termism. It will push forward in key areas such as technological innovation and
transformation, original design, green, intelligent and digital transformation, differentiation, balanced
and coordinated development, brand value enhancement, and global expansion, whilst enhancing quality
and efficiency to cultivate new quality productive forces. Also, it will promote the stable development of
core traditional business in all directions, continue to expand new business, beef up organizational
upgrading and reform, and proactively exploit the global market, in order to maintain sustainable,
healthy and high-quality development of the Company and keep forging ahead toward its vision of
becoming a “world-class M&G”.
     In 2026, the Company plans revenue of RMB27.8 billion, an increase of 11%, mainly through the
following:
     Product capability enhancement
     The Company will adhere to the “consumer-centric” philosophy, accelerate technological and
product innovation, and increase investment in R&D and innovation, developing products with a focus
on bestsellers. It will reduce the quantity and improve the quality of product development, and improve
the on-shelf ratio and sales contribution of the single product. Moreover, the product structure will be
optimized by developing and cultivating high-quality, highly functional, and high-value-added products
to actively respond to the core market trends of branding, creativity, IP development, personalization,
and premiumization. The brand and product portfolios will be further expanded, focusing on
breakthroughs in potential category segmentation opportunities and rapid responses. The Company will
strengthen IP empowerment. The combination of internal independent cultivation and collaboration with
external IPs will be promoted to innovate product structures, enhance product capability, improve
international design capabilities, and provide consumers with more diversified choices of products. The
ultimate goal is to achieve sustainable brand development.
     Omni-channel offerings
     The Company will focus on deepening channels and building the necessary infrastructure for brand
development. It will focus on key cities, concentrate its efforts and resources to make breakthroughs in
major markets, and develop targeted measures tailored to the different development stages and core
challenges of individual markets. It will further focus on top-tier high-quality large stores to improve
single store quality and strengthen the loyalty of key stationery stores. Besides, the Company will also
strengthen the concept of position building and optimize position offerings to increase presence in
business districts. In addition, continued efforts will be made to promote direct supply of office products
and premium stationery products both at headquarters and partners level to create incremental sales. The
Company will also explore new online distribution management models by formulating and
implementing differentiated operational strategies tailored to the characteristics of various online
channels and products, so as to realize the full potential of online growth and expand market share
domestically. Additionally, it will seize opportunities in the overseas market, accelerate international
expansion, and innovate with diversified channels.
      The Company will accelerate the digital transformation of the entire industrial chain. With the
M&G Business System (MBS), a lean management system, as the core tool, it will continuously enhance
lean management capabilities and operational efficiency, and deepen data-driven operations, so as to
support cost reduction and efficiency increase while developing new quality productive forces. The
Company will strengthen the continuous construction of the big data platform, comprehensively capture
and deeply analyze the key data of each business, market and customer, provide a more timely, accurate
and traceable scientific basis for business decision-making, and promote the overall improvement of
digital management capability. Digital transformation of talent management will be advanced, and an
intelligent talent database will be built. The concept of “talent supply chain” will be deepened, the talent
mechanism for “attraction, cultivation, utilization and retention” will be improved, and organizational
capability upgrades will propel high-quality business development, creating a talent hub for the industry.
                                            Annual Report 2025
      Jiumu Store will continue to optimize its product mix and upgrade its category strategy, expanding
its product portfolio in both directions. Horizontally, it will expand the product boundary by actively
introducing new highly relevant categories to attract a broader consumer group; and vertically, it will
deepen its focus on core advantageous categories, continuously refine and deepen them, consolidate its
professionalism and leadership, and drive the dual improvement of the customer unit price and the
repurchase rate. Investment in IP-related product resources and the proportion of proprietary brands will
be increased to enrich the product structure. Continuous efforts will be made to increase the number of
channels and further strengthen channel advantages, so as to maintain the rapid growth of offline
channels and the multi-channel growth of the online business. The Company will conduct in-depth
operations centered on membership and IP, and build a more diversified brand growth model.
Leveraging digital management thinking and tools, the Company will enhance the business capabilities
of single stores. Talent pipeline development will be strengthened, cultivating core talent in the business
sector to provide solid support for larger-scale national expansion and business growth, ensuring the
Company’s sustainable development.
     Colipu Group will continue to upgrade and optimize its electronic trading system, smart
warehousing and logistics management system, digitalized supply chain, and personalized services. It
will embrace the digitalization trend and use AI technology to inject new energy into tendering
processes, operations scheduling and coordination, and customer service, so as to improve the efficiency
of the back-end platform and building a differentiated digital competitive edge. It will also focus on the
development of its core product categories and proprietary product system, increase the proportion of
self-operated and proprietary products in sales, and drive steady improvements in gross profit margin
and net profit margin. By pursuing market expansion and structural optimization in parallel, the
company will continue to solidify its industry position. It will establish long-term and stable strategic
partnerships with central SOEs, government agencies, financial institutions, and other partners, jointly
build a more resilient and competitive modern supply chain system, and achieve win-win results for all
parties. Meanwhile, the launch of the spin-off listing project will help leverage the capital market’s role
in optimizing resource allocation, further enhance the core competitiveness of Colipu Group, and
achieve high-quality and sustainable development.
(IV) Potential risks
√ Applicable □ Not applicable
     With the great growth in the scale of assets and sale of the Company, the Company faces new
challenges in operation management system, internal control system and staff management. Although
the Company has developed operation management system and internal control system that accord with
features of its business and technology in its development, and has recruited and cultivated stable core
management team, operation of the Company will be adversely affected if the aforesaid management
system and management staff fail to promptly adapt to the rapid expansion of the Company. Therefore,
the Company will keep improving its management system and internal control system, and adopt various
measures to improve qualification of management staff.
     With social transformation and consumption upgrading, stationery market presents opportunities
for structure-based development. The stationery industry is facing the challenges of shrinking demand,
weaker expectations and increasing downward pressure. If the Company is unable to anticipate market
trends in time and adapt to market changes from aspects of innovation and upgrading, quality
management to sale strategy, the Company will encounter certain risks in market competition. Having
been aware of the problem, the Company adheres to being market- and customer-oriented, strengthens
technological innovation, as well as promotes product, channel and brand upgrades. Efforts are also
made to build a sounder quality management and control system. And market strategies are formulated
based on market survey, analysis of big data and management discussion.
     According to Article 28 of Enterprise Income Tax Law of the People’s Republic of China, the
enterprise income tax on important Innovation Companies that are necessary to be supported by the state
shall be levied at the reduced tax rate of 15%. The Company was re-recognized as an Innovation
                                            Annual Report 2025
Company in China on December 19, 2025, and started to implement the policy of reduced enterprise
income tax rate of 15% on January 1, 2025 for 3 years. If the state adjusts preferential income tax policy
for Innovation Companies, or the Company fails to pass the review after its qualification of Innovation
Company expires, operation performance of the Company will be adversely affected. As such, the
Company performs strict control according to assessment standards for Innovation Company to ensure
that it meets all indicators, and qualifies and passes the annual review and renewal for Innovation
Company.
(V) Others
□ Applicable √ Not applicable
VII. Explanation on the Failure to Disclose as per Rules due to Inapplicability or Special Reasons
such as State Secrets and Business Secrets and the Reasons Thereof
□ Applicable √ Not applicable
                                            Annual Report 2025
     Section IV          Governance, Environmental and Social Information
I. Particulars on Corporate Governance
√ Applicable □ Not applicable
      During the Reporting Period, the Company, in strict compliance with the Company Law, the
Securities Law, and other applicable laws and regulations, as well as the relevant regulatory documents
promulgated by the China Securities Regulatory Commission and the Shanghai Stock Exchange,
continuously optimized the corporate governance structure of the Company and improved the
operational level of the Company, strengthened the management of insider information, and enhanced
the awareness of information disclosure responsibility, to ensure continuous, stable and high-quality
development and effectively protect the legitimate rights and interests of investors and relevant
stakeholders. The specific governance situation was as follows:
shareholders in strict accordance with the requirements of the Articles of Association, the Rules of
Procedure of the (General) Meeting of Shareholders and other applicable rules. Proposals, procedures,
and voting at the (general) meetings of shareholders were implemented in accordance with the relevant
provisions. When considering proposals related to related-party transactions, related shareholders
avoided voting to ensure fair related-party transactions. For the convenience of the Company’s
shareholders, (general) meetings of shareholders allow its shareholders to vote on site or online,
including the flexible use of the One-Click Online Voting Service. This ensures the minority
shareholders have the right to stay informed about and vote on major issues of the Company and
participate in the operation of the company and this also helps protect the interests of minority
shareholders.
system and the capacity for independent operation, the Company and the controlling shareholders
achieved “five independences” in assets, personnel, finance, organization, and business, and the
Company’s Board of Directors and internal control institutions operated independently; the Company’s
related-party transaction procedures were legal and the price was fair, and the obligation of information
disclosure was fulfilled. The controlling shareholder and actual controller have earnestly fulfilled their
fiduciary obligations, maintained the independence of the listed company, and effectively protected the
legitimate rights and interests of the listed company and its investors.
Sixth Board of Directors consisted of seven directors, including three independent directors and one
employee director, and the composition of the Board of Directors complied with the requirements of
applicable laws, regulations and the Articles of Association. All directors of the Company could, in
accordance with the Articles of Association, the Rules of Procedure of the Board of Directors and other
applicable rules, earnestly perform their duties as directors and make prudent and scientific decisions.
The convening of each meeting met the requirements of relevant regulations. The Company’s Board of
Directors had four special committees, namely, the Strategy Committee, the Audit Committee, the
Remuneration and Appraisal Committee, and the Nomination Committee. Each special committee
carried out work in accordance with the relevant provisions of the implementation rules, gave full play
to the professional role of each special committee, strengthened the democratic and scientific
decision-making of the Board of Directors, and ensured the sound development of the Company.
accuracy, completeness, timeliness, and fairness”, and strictly followed the requirements of temporary
announcement and periodic report format guidelines for information disclosure. To help investors get
familiar with the situation of the Company, the content to be disclosed must be concise, clear, and easy
to understand and must truly and duly reflect the operating status of the Company.
Whether there are significant differences between corporate governance and laws, administrative
regulations and the requirements of the relevant regulations of the China Securities Regulatory
Commission on the governance of listed company; if there are significant differences, the reasons should
be explained
□ Applicable √ Not applicable
                                             Annual Report 2025
II. Measures taken by the controlling shareholders and actual controllers of the Company to
ensure the independence of the Company’s assets, personnel, finance, organization, and business,
as well as the solutions taken to address the impact on the Company’s independence, work
progress and follow-up work plans
√ Applicable □ Not applicable
      The Company was completely separated from the controlling shareholders in assets, personnel,
finance, organization and business, possessing independent and complete business and the ability to
operate independently.
      The Company had business premises that are independent from the controlling shareholders and
had an independent and complete asset structure. The Company had complete control over all assets, and
no asset or fund was occupied by controlling shareholders to damage the interests of the Company.
      The personnel and remuneration management of the Company were completely independent. The
directors and senior management of the Company were elected and appointed in strict accordance with
the relevant provisions of the Company Law and the Articles of Association. The president, vice
president, chief financial officer and secretary of the Board of Directors of the Company did not receive
remuneration from the controlling shareholders and their affiliated enterprises and held any positions
other than directors and supervisors. The Company is independent of its shareholders and other related
parties. It has established and independently implemented labor, human resource and remuneration
management rules.
      The Company had an independent financial and accounting department, has established an
independent accounting system and financial management system, and made financial decisions
independently. The Company’s chief financial officer and financial accounting personnel are all
full-time staff and do not hold part-time jobs in the controlling shareholder or their affiliated enterprises.
The Company opened a basic deposit account independently and paid taxes independently.
      The Company has established a sound organizational system, which exercises management powers
independently and operates independently. It has no affiliation with the controlling shareholders or their
functional departments.
      The Company’s business is independent from the controlling shareholders and their affiliated
enterprises. The Company has an independent and complete design, R&D, manufacturing and sales
system, conducts business independently, and does not rely on shareholders or any other related parties.
Engagement of controlling shareholders, actual controllers and other organizations under their control in
the same or similar business as the Company, as well as the impact of horizontal competition or major
changes in horizontal competition on the Company, measures taken, progress of the resolution and the
follow-up resolution
□ Applicable √ Not applicable
                                                                           Annual Report 2025
  III. Information on Directors and Senior Management
  (I) Shareholding change and remuneration of directors and senior management currently employed and retired during the Reporting Period
  √ Applicable □ Not applicable
                                                                                                                                                                     Unit: share
                                                                                                                                                 Total pre-tax
                                                                                                                                                 remuneration      Whether to
                                                                                  Number of
                                                                                                 Number of                                          from the          get
                                                                                  shares held                    Change in
                                     Gende                                                       shares held                       Reasons for     Company       remuneration
    Name            Position                  Age        From         To             at the                     share of the
                                       r                                                        at the end of                        change        during the     from related
                                                                                 beginning of                      year
                                                                                                   the year                                        Reporting     parties of the
                                                                                   the year
                                                                                                                                                 Period (RMB        Company
  Chen
              Chairman               Male    56       2014-6-12   2026-4-19        13,609,300    13,609,300                    0                       167.27    No
  Huwen
  Chen        Vice Chairman and
                                     Male    56       2014-6-12   2026-4-19        13,609,300    13,609,300                    0                       155.83    No
  Huxiong     President
  Chen        Director and Vice      Femal                                                                                         Own funding
  Xueling     President              e                                                                                             needs
              Employee Director
  Fu Chang                           Male    56       2018-3-23   2026-4-19            64,336         64,336                   0                       150.64    No
              and Vice President
  Yu
              Independent Director   Male    55       2023-4-20   2026-4-19                 0               0                  0                        20.00    No
  Weifeng
  Pan Jian    Independent Director   Male    50       2023-4-20   2026-4-19                 0               0                  0                        20.00    No
  Pan Fei     Independent director   Male    70       2022-4-20   2026-4-19                 0               0                  0                        20.00    No
              Chief Financial
  Liu Jiaqi                          Male    43       2025-5-30   2026-4-20                 0               0                  0                        71.32    No
              Officer
  Bai Kai     Board Secretary        Male    43       2023-4-21   2026-4-20            12,906         12,906                   0                        71.16    No
  Tang        Chief Financial
                                     Male    44       2023-4-21   2025-5-30                 0               0                  0                       109.12    No
  Xianbao     Officer
    Total               /              /          /        /           /           35,395,842    33,370,842        -2,025,000           /              922.86    /
  Note: The term of office of Chen Huxiong, Chen Xueling and Fu Chang as directors will expire on April 19, 2026, and their term of office as senior management
  will expire on April 20, 2026.
  Name                                                                        Main working experience
              Born in July 1970, male, Chinese nationality, permanent residency in Hong Kong, Master’s degree granted by the School of Economics and Management,
Chen          Tsinghua University, and doctorate degree granted by the Carlson School of Management, University of Minnesota. Has been involved in the stationery and
Huwen         office manufacturing industry since 1997, PE equity investment since 2007, and stock and bond financial investment since 2015 and is one of the founders
              of M&G Group. Now works as the chairman of the Company and Colipu Group. Has won honors such as the Model Worker in China Light Industry, the
                                                                        Annual Report 2025
             “Top Ten Brand Leaders” in Shanghai in 2013, the sixth batch of “Shanghai Outstanding Builders of Socialism with Chinese Characteristics” in 2023, and
             the first batch of “Shanghai Outstanding Talents” in 2024.
             Born in July 1970, male, Chinese nationality, permanent residency in Singapore, Executive MBA, Cheung Kong Graduate School of Business. Has been
             involved in the stationery manufacturing industry since 1995. Worked as General Manager of Shanghai Sino-Korean M&G Stationery Manufacturing Co.,
Chen         Ltd. from 2001 to 2004, and Chairman of Shanghai Sino-Korean M&G Stationery Manufacturing Co., Ltd. from 2004 to 2009 and is one of the founders of
Huxiong      M&G Group. Now works as Vice Chairman and President of the Company, and is also Vice Chairman of China Writing Instrument Association, Deputy
             Director of Ballpoint Pen Professional Committee of China Writing Instrument Association, and Chairman of China Writing Instrument Industry
             Technology Innovation Alliance. Received the Nomination Award for Outstanding Entrepreneur of Shanghai (2019–2020).
             Born in October 1967, female, Chinese nationality, no permanent residency abroad, holding a Bachelor’s degree; has been involved in the stationery
Chen
             manufacturing industry since 1997 and is one of the founders of M&G Group; once worked as Deputy General Manager of the Company’s Production
Xueling
             Center, and now works as a director and Vice President of the Company.
             Born in January 1970, male, Chinese nationality, no permanent residency abroad, holding a master’s degree in business administration (EMBA); once
             worked as General Manager of Wuhan Maxleaf Stationery Ltd.; joined M&G Stationery in May 2006 and successively served as Deputy Director of
Fu Chang
             Marketing Centre and Director of Production Centre; now works as a director and Vice President of the Company. and now works as a director and Vice
             President of the Company.
             Born in November 1971, male, Chinese nationality, no permanent residency abroad; has over 30 years of experience a Weifang practicing lawyer, received
             his LL.B. degree from Fudan University in June 1995, received his MBA degree from China Europe International Business School in October 2015, and
             completed the Executive Leadership Program of Harvard Business School in July 2019; has been a partner of Shanghai Links Law Offices since December
Yu Weifeng   1998; now concurrently serves as Vice Chairman of the Belt and Road Legal Services Alliance, Director of the Foreign Affairs Committee of the All China
             Lawyers Association, President of the Shanghai Arbitration Association, a member of the Administrative Reconsideration Committee of the Shanghai
             Municipal People’s Government, a member of the Shanghai Arbitration Commission, and an arbitrator and mediator in a number of arbitration institutions
             and mediation institutions.
             Born in January 1976, male, Hong Kong permanent resident of China, holding a master’s degree from the University of Chicago; once worked as a director
             and Vice President of Contemporary Amperex Technology Co., Ltd., a director of Amperex Technology Ltd., a non-executive director of Luye Pharma, a
Pan Jian
             director of the Company, and a director of Ceva Sante Animale Group; now works as the joint chairman and an executive director of Contemporary
             Amperex Technology Co., Ltd.
             Born in August 1956, male, Chinese nationality, no permanent residency abroad, doctor, professor, and doctoral advisor in management, a member of the
             American Accounting Association, a member of the Accounting Society of China, a member of the Management Accounting Committee of the Accounting
             Society of China, Vice President of the Shanghai Cost Research Society, and Distinguished Editor at Modern Accounting. Pan Fei graduated from the
Pan Fei      School of Accountancy, Shanghai University of Finance and Economics, in 1983 and was awarded a doctoral degree in accountancy in 1998. Since 2000, he
             has received awards and honors, including the Shanghai Educator Award, the National Outstanding Individuals in Accounting, the Fifth Shanghai Renowned
             Teacher Award, and the Shanghai Excellent Teaching Team Award. In January 2018, Pan Fei was rated by the Shanghai University of Finance and
             Economics as a senior professor. In January 2019, he was approved as an expert eligible for special government allowances of the State Council.
             Born in May 1983, male, Chinese nationality, no permanent residency abroad, an International Master of Business Administration (IMBA) degree from
Liu Jiaqi    China Europe International Business School (CEIBS). Previously served as Senior Auditor at PricewaterhouseCoopers Zhong Tian LLP, Senior Financial
             Planning & Analysis Manager and Senior Financial Control Manager at Tesco China, Chief Financial Officer at Anjuke Group, Vice President of Finance at
                                                                        Annual Report 2025
              Jia.com, and Executive Director and Chief Financial Officer at eBeauty Group; now works as Chief Financial Officer of the Company.
              Born in December 1983, male, Chinese nationality, no permanent residency abroad, holding a postgraduate degree; joined the Company in 2011, and once
Bai Kai
              worked as an officer of the Board and Securities Affairs Representative; now works as Board Secretary of the Company.
   Particulars on other information
   □ Applicable √ Not applicable
                                                   Annual Report 2025
(II) Employment of directors and senior management currently employed and retired during the
Reporting Period
√ Applicable □ Not applicable
                                     Name of               Position held in
 Name of person employed          shareholder’s             shareholder’s               From                   To
                                     company                  company
Chen Huwen                    M&G Group                President                May 10, 2007
Chen Huwen                    Keying Investment        General partner          February 18, 2011
Chen Huxiong                  M&G Group                Chairman                 May 10, 2007
Chen Huxiong                  Jiekui Investment        General partner          February 18, 2011
Chen Xueling                  M&G Group                Director                 May 10, 2007
Particulars on employment     Save for the personnel disclosed above, none of other directors and senior management of
in shareholders’ companies    the Company were employed by the shareholders’ companies.
√ Applicable □ Not applicable
Name of person                                      Position held in
                     Name of other companies                                     From                       To
  employed                                          other companies
                   Shanghai Chenguang Venture
Chen Huwen                                          General partner     May 12, 2011
                   Capital Center (L.P.)
                   Shanghai Chenguang Sanmei
Chen Huwen                                          Director            May 26, 2008
                   Property Investment Co., Ltd.
                   Shanghai Chenguang Venture
Chen Huxiong                                        Limited Partner     May 12, 2011
                   Capital Center (L.P.)
                   Shanghai Chenguang Sanmei
Chen Huxiong                                        Chairman            May 26, 2008
                   Property Investment Co., Ltd.
                   Shanghai Chenguang Venture
Chen Xueling                                        Limited Partner     May 12, 2011
                   Capital Center (L.P.)
                   Shanghai Chenguang Sanmei
Chen Xueling                                        Director            May 26, 2008
                   Property Investment Co., Ltd.
Yu Weifeng         Llinks Law Offices               Partner             December 1998
                                                    Independent
Yu Weifeng         Shenergy Company Limited                             June 30, 2020             May 22, 2026
                                                    Director
                                                    Independent
Yu Weifeng         Sinopharm Group Co., Ltd.                            September 18, 2020
                                                    Director
                   Shaanxi Jingxiaohe Trading       Outside
Yu Weifeng                                                              May 12, 2025
                   Co., Ltd.                        Director
                   Contemporary Amperex             Director            June 5, 2017              December 25, 2027
Pan Jian
                   Technology Co., Ltd.             Joint Chairman      January 17, 2025          December 25, 2027
                   Shanghai Zhonggu Logistics       Independent
Pan Fei                                                                 December 18, 2023         September 12, 2027
                   Co., Ltd.                        director
Pan Fei                                                                 January 10, 2025          January 9, 2028
                   Co., Ltd.                        director
                   Shanghai Tianyi Financial
Liu Jiaqi                                           Supervisor          December 4, 2014
                   Consulting Co., Ltd.
Particulars on
                   Save for the personnel disclosed above, none of other directors and senior management of the
employment in
                   Company were employed by other related companies.
other companies
(III) Remuneration of directors and senior management
√ Applicable □ Not applicable
Decision-making procedures for
                                      The remuneration of directors is determined by the meeting of shareholders; and
the remuneration of directors and
                                      the remuneration of senior management is determined by the Board of Directors.
senior management
Whether a director steps aside in
the Board’s discussion of his/her     Yes
remuneration matters
Recommendations by the                The remuneration plan for the Company’s directors and senior management is in
Remuneration and Appraisal            line with the remuneration level of the industry in which the Company operates and
Committee or the special meeting      the Company’s actual operating conditions, and there is no situation that harms the
of independent directors on matters   interests of the Company and its shareholders.
                                                  Annual Report 2025
relating to the remuneration of
directors and senior management
                                      Allowances for independent directors of the Company are considered and approved
                                      by the meeting of shareholders. Other non-independent directors and senior
Determination basis for the           management that hold concurrent posts in the Company or any of its subsidiaries
remuneration of directors and         are subject to the operation performance appraisal on an annual basis and the paid
senior management                     base salary on a monthly basis according to their specific posts in the Company or
                                      any of its subsidiaries, and the annual performance-based remuneration is settled
                                      after the Company’s annual operation target is completed.
                                      Allowances for independent directors of the Company are paid on a monthly basis.
Actual payment of the
                                      Other directors and senior management receive a monthly base salary in
remuneration of directors and
                                      accordance with the aforesaid provisions, as well as performance-based
senior management
                                      remuneration based on appraisal results.
Total actual remuneration received
by all directors and senior
                                      RMB9,228,600
management at the end of the
Reporting Period
                                      The Company adopts an allowance system for independent directors. The annual
                                      allowance for independent directors is RMB200,000 (pre-tax), paid on a monthly
                                      basis. Directors who also hold positions within the Company or its subsidiaries
The appraisal basis and execution     shall not receive remuneration in their capacity as directors; instead, they shall be
of the actual remuneration received   compensated based on their respective positions within the company, the
by all directors and senior           company’s remuneration management policies, and annual performance appraisals.
management at the end of the          The base salary of senior management is determined with reference to industry
Reporting Period                      remuneration levels, job responsibilities and other factors, and is paid monthly.
                                      Performance-based remuneration is appraised and determined based on the
                                      achievement of the Company’s annual business objectives and their annual job
                                      performance.
Deferred payment arrangements for
the actual remuneration received by
all directors and senior              Not applicable
management at the end of the
Reporting Period
Payment stop and recovery of the
actual remuneration received by all
                                      Not applicable
directors and senior management at
the end of the Reporting Period
(IV) Changes in directors and senior management of the Company
√ Applicable □ Not applicable
        Name                    Office title            Change                                   Reason for change
     Tang Xianbao         Chief Financial Officer      Resigned                                   Personal reasons
       Liu Jiaqi          Chief Financial Officer      Appointed
(V) Particulars on punishments by securities regulatory authorities in the past three years
□ Applicable √ Not applicable
(VI) Others
□ Applicable √ Not applicable
IV. Performance of Functions and Duties by Directors
(I) Attendance of directors at board meetings and meetings of shareholders
                                                                                                               Attendance at
                                                     Attendance at board meetings                               meetings of
               Indepen                                                                                         shareholders
 Director
                 dent                     Number        Number      Number                       Two            Number of
  Name                     Number of                                            Number
               director                       of           of           of                    consecutive      attendance at
                           attendance                                              of
                                          attendan     attendanc    attendan                  absences in       meetings of
                            required                                            absence
                                            ce in         e by        ce by                     person         shareholders
                                                     Annual Report 2025
                                            person      communi      proxy
                                                         cation
Chen Huwen     No                     5          5              3            0       0     No                              2
Chen Huxiong   No                     5          5              3            0       0     No                              0
Chen Xueling   No                     5          5              4            0       0     No                              0
Fu Chang       No                     5          5              4            0       0     No                              0
Yu Weifeng     Yes                    5          5              4            0       0     No                              2
Pan Jian       Yes                    5          5              4            0       0     No                              0
Pan Fei        Yes                    5          5              3            0       0     No                              1
 Particulars on two consecutive absences in person from board meetings
 □ Applicable √ Not applicable
 Number of board meetings held during the year                 5
 Including: on site                                            2
 by communication                                              3
 on site and by communication                                  2
 (II) Directors’ objections to the Company’s related matters
 □ Applicable √ Not applicable
 (III) Others
 □ Applicable √ Not applicable
 V. Special Committees under the Board of Directors
 √ Applicable □ Not applicable
 (I) Members of special committees under the Board of Directors
                       Type                                                Name of member
 Audit Committee                                         Pan Fei, Chen Huwen, Yu Weifeng
 Nomination Committee                                    Yu Weifeng, Chen Huwen, Pan Jian
 Remuneration and Appraisal Committee                    Pan Fei, Chen Huxiong, Yu Weifeng
 Strategy Committee                                      Chen Huxiong, Yu Weifeng, Pan Jian
 (II) During the Reporting Period, the Audit Committee held 6 meetings
  Convening                                                                                    Other performance of
                 Contents of meetings         Important comments and recommendations
    date                                                                                               duties
                                                                                            Debriefed and reviewed
                                                                                            the work summary for this
 March 17,     First meeting of the Audit   Summary of the Audit Department in 2024         work plan of the
                                            the Audit Department in 2025                    Department, and guided
                                                                                            the operation of the
                                                                                            Internal Audit Department.
                                            Performance Report of the Audit Committee       the annual report, the Audit
                                            under the Board of Directors                    Committee under the
                                            Auditor’s Report                                communicated with BDO
 March 24,     Second meeting of the
                                            Report and Summary                              (LLP), which was
                                            Control Evaluation Report                       Company’s annual audit,
                                            Determining the Annual Audit Remuneration       annual audit working
                                            in 2024                                         group, audit plan, risk
                                                 Annual Report 2025
                                           Company on the Performance Assessment of        priorities, and continued to
                                           the Accounting Firm in 2024                     pay attention to the
                                           Audit Committee of the Board of Directors on    Company’s annual
                                           the Performance of Supervisory                  financial report.
                                           Responsibilities of the Accounting Firm in
                                           the Re-appointment of the Company’ 2025
                                           Audit Organization
April 27,     Third meeting of the         Considered and approved the Report for the
                                                                                           No
                                           Considered and approved the Proposal on the
May 29,       Fourth meeting of the
                                           Appointment of an Additional Senior             No
                                           Management Member
August 27,    Fifth meeting of the Audit   Considered and approved the 2025
                                                                                           No
October 28,   Sixth meeting of the         Considered and approved the Report for the
                                                                                           No
(III) During the Reporting Period, the Remuneration and Appraisal Committee held 1 meeting
Convening                                                                                     Other performance of
                Contents of meetings         Important comments and recommendations
  date                                                                                               duties
              First meeting of the         the Remuneration Plan for the Company’s
March 24,     Remuneration and             Directors in 2025
                                                                                           No
                                           Senior Management in 2025
(IV) During the Reporting Period, the Strategy Committee held 1 meeting
Convening                                                                                     Other performance of
                Contents of meetings         Important comments and recommendations
  date                                                                                               duties
              First meeting of the         Environmental, Social and Governance (ESG)
March 24,
              Strategy Committee in        Report                                          No
                                           the Company’s 2025 Business Plan
(V) During the Reporting Period, the Nomination Committee held 1 meeting
Convening                                                                                     Other performance of
                Contents of meetings         Important comments and recommendations
  date                                                                                               duties
              First meeting of the
May 29,                                    the Review Opinion Regarding the
              Nomination Committee                                                         No
              in 2025
                                           Company’s Chief Financial Officer
(VI) Details of the matter in question
□ Applicable √ Not applicable
VI. Particulars on Risks in the Company Identified by the Audit Committee
□ Applicable √ Not applicable
The Audit Committee has no objection to the supervision matters during the Reporting Period.
VII. Employee of Parent Company and the Principal Subsidiaries of the Company at the End of
the Reporting Period
(I) Employees
Number of employees in the parent company                                                                        2,274
                                            Annual Report 2025
Number of employees in major subsidiaries                                                         3,229
Number of employees                                                                               5,503
Number of retirees of whom the parent company and
major subsidiaries are responsible for the expenses
                                           Professional structure
                       Category                                             Number
                Production personnel                                                              1,304
                   Sales personnel                                                                1,473
                 Technical personnel                                                                450
                  Finance personnel                                                                 217
              Administration personnel                                                              304
               Management personnel                                                               1,281
                        Others                                                                      474
                         Total                                                                    5,503
                                          Education background
                       Category                                        Number (person)
      University (including college) and above                                                    3,766
       High school, technical secondary school                                                      724
                        Others                                                                    1,013
                         Total                                                                    5,503
(II) Remuneration policy
√ Applicable □ Not applicable
     To conform to the Company’s organizational strategy, the Company implements a competitive
remuneration policy where the employees’ remuneration is determined considering the job value,
person-job fit and performance. By establishing and improving competitive remunerations and benefits,
performance appraisal systems and incentive systems, as well as by actively promoting the long-term
incentive and retention plan for mid- and senior-level personnel, the Company attracted all kinds of
professional talents and formed healthy competitive work environment to stimulate the vitality and
potential of employees, build a stable, professional team, and ensure the growth of the Company’s
performance.
(III) Training program
√ Applicable □ Not applicable
      Talent is always the core driving force for organizational development. The Company continues to
invest in the systematic development of the leadership pipeline, strengthen the reserve and
empowerment of management talent at all levels, and focus on the professional cultivation of
strategically critical positions. Therefore, the Company has established a systematic management
curriculum system and actively built an internal trainer team, driving talent development through both
internal knowledge transfer and professional enhancement.
      In terms of leadership and talent development for critical positions, the Company implements
diversified learning programs, including management training and full-cycle empowerment for
management trainees and combining online and offline modes, to effectively elevate the overall
capabilities of its management team and talent reserves.
      The Company also attaches great importance to enhancing employees’ core professional
capabilities. On the functional side, the “M&G Lecture” platform focuses on essential cross-functional
competencies, delivering learning and empowerment through both external experts and internal trainers.
On the production side, the Company continuously improves a tiered and categorized position
certification and specialized training system, applying a “centralized training + mentor coaching” model
to strengthen the “learning through practice and practicing through learning” mechanism, ensuring that
technical teams continuously advance their capabilities and respond agilely to market changes.
      In addition, the Company actively cultivates a digital learning ecosystem. The “Photosynthesis”
online learning platform has covered all business units, and initiatives to strengthen organizational
culture and enhance employee engagement provide a solid foundation for comprehensive talent
development and the sustained growth of the organization.
                                             Annual Report 2025
(IV) Labor outsourcing
√ Applicable □ Not applicable
Total working hours of labor outsourcing                                                  18,517,161 hours
Total remuneration paid for labor outsourcing (RMB Yuan)                                      825,259,496
VIII. Profit Distribution or Capital Accumulation Plan
(I) Formulation, implementation or adjustment of the cash dividend policy
√ Applicable □ Not applicable
distribution policy which entitles the shareholders to the same rights and same dividends, under which
shareholders are entitled to receive dividends and other kinds of distribution of interests based on the
number of shares held by them. The Company adopts active profit distribution policy, which emphasizes
investors’ reasonable investment returns while maintaining sustainability and stability. The Company is
allowed to distribute profit in cash or shares, but its profit distribution shall not exceed the range of the
accumulated distributable profits or affect the Company’s ability to continue as a going concern.
cash or shares, or cash-and-shares, and if the Company satisfies the conditions for cash dividends,
priority should be given to profit distribution by means of cash dividends.
dividend as its profit distribution policy. The Company may distribute cash dividend when it makes a
profit in the current year and the distributable profits are positive after making up losses, contributing to
the statutory reserves and surplus reserves, but the profit distribution shall not exceed the range of the
accumulated distributable profits. In general, if there are no material investment plans or significant cash
expenditure, the Company may distribute profit in cash for a single year not less than 20% of the
distributable profit realized in the current year.
      In addition, as for the proportion of cash dividends to the total profit distribution, the Board of
Directors shall take into full account of various factors such as features of the industries where the
Company operates, the stage of development, its own business model, level of profitability, and whether
there is significant capital expenditure arrangement, to distinguish the following situations and
determine differentiated cash dividend proportion in accordance with the procedures as required by the
Articles of Association:
      (1) If the Company is at a mature stage of development and has no significant capital expenditure
arrangement, the proportion of cash dividends in the profit distribution shall be at least 80% when the
profit distribution is made;
      (2) If the Company is at a mature stage of development and has significant capital expenditure
arrangement, the proportion of cash dividends in the profit distribution shall be at least 40% when the
profit distribution is made;
      (3) If the Company is at a growing stage of development and has no significant capital expenditure
arrangement, the proportion of cash dividends in the profit distribution shall be at least 30% when the
profit distribution is made;
      (4) If the Company is at a growing stage of development and has significant capital expenditure
arrangement, the proportion of cash dividends in the profit distribution shall be at least 20% when the
profit distribution is made.
      The aforesaid “significant investment plans” or “significant cash expenditure” refers to one of the
following:
      (1) The proposed external investment, acquisition of assets or purchase of equipment by the
Company in the coming twelve months with accumulated expenses amounting to or exceeding 50% of
the latest audited net assets of the Company and exceeding RMB50 million;
      (2) The proposed external investment, acquisition of assets or purchase of equipment by the
Company in the coming twelve months with accumulated expenses amounting to or exceeding 30% of
the latest audited total assets of the Company.
      Significant investment plans or significant cash expenditure that meets the above conditions shall
be reviewed and approved at the meeting of shareholders after being reviewed by the Board meeting.
                                             Annual Report 2025
complied with the Articles of Association and the resolutions of the meetings of shareholders. The
dividend distribution standards and proportions are clearly stated, and relevant decision-making
procedures and systems are complete. Independent directors have diligently served their obligations, and
played their roles. As minority shareholders have opportunities to fully express their opinions and
appeals, their legitimate interests have been fully protected.
(II) Special description of the cash dividend policy
√ Applicable □ Not applicable
Does it meet the requirements of the Company’s Articles of Association or the
                                                                                         √Yes □No
resolutions adopted at the meeting of shareholders:
Are the dividend criteria and ratio definite and clear:                                  √Yes □No
Are the relevant decision-making procedures and mechanisms complete                      √Yes □No
Do the independent directors perform their duties and play their due role                √Yes □No
Do the minority shareholders have the opportunity to fully express their opinions
                                                                                         √Yes □No
and requests, and whether their legitimate rights and interests get fully protection
(III) If the Company records profit distributable to shareholders of the Company during the
Reporting Period is positive but there is no proposal for cash dividend, the Company shall disclose
the reasons, the usage and the utilization plan of the undistributed profits in detail
□ Applicable √ Not applicable
(IV) Profit distribution and bonus issue from capital reserves for the Reporting Period
√ Applicable □ Not applicable
                                                                      Unit: Yuan     Currency: RMB
Bonus issue from profit (share/10 shares)                                                             0
Cash dividend/10 shares (RMB Yuan) (tax inclusive)                                                   10
Bonus issue from capital reserves (share/10 shares)                                                   0
Cash dividends (tax inclusive)                                                           915,795,377.00
Net profit attributable to ordinary shareholders of the
listed company in the consolidated financial statements
Cash dividends as % of net profit attributable to
ordinary shareholders of the listed company in the                                                69.88
consolidated financial statements
Dividends in form of share repurchases in cash                                            48,950,582.98
Total dividends (tax inclusive)                                                          964,745,959.98
Total dividends as % of net profit attributable to
ordinary shareholders of the listed company in the                                                73.62
consolidated financial statements
(V) Cash dividends for the last three accounting years
√ Applicable □ Not applicable
                                                                           Unit: Yuan    Currency: RMB
Total cash dividends (tax inclusive) for the last three
accounting years (1)
Total amount used for share repurchase and cancellation
for the last three accounting years (2)
Combined amount of total cash dividends and total
amount used for share repurchase and cancellation for                                   2,720,588,103.50
the last three accounting years (3)
Annual average net profit for the last three accounting                                 1,411,031,703.87
                                           Annual Report 2025
years (4)
Cash dividend payout ratio (%) for the last three
accounting years (5)=(3)/(4)
Net profit attributable to ordinary shareholders of the
listed company in the consolidated financial statements                              1,310,448,991.96
for the last accounting year
Undistributed profits of the parent company at the end of
the last accounting year
IX. Equity Incentive Plan, Employee Shareholding Plan or Other Employee Incentive Measures of
the Company and Their Impacts
(I) Incentive matters disclosed in temporary announcements and without further progress or
change in subsequent implementation
□ Applicable √ Not applicable
(II) Incentive matters which have not been disclosed in temporary announcements or with further
progress
Equity incentive
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
Employee shareholding plan
□ Applicable √ Not applicable
Other incentive measures
□ Applicable √ Not applicable
(III) Equity incentives granted to directors and senior management during the Reporting Period
□ Applicable √ Not applicable
(IV) Establishment and implementation of appraisal mechanism and the incentive mechanism for
senior management during the Reporting Period
√ Applicable □ Not applicable
     The Company has established a relatively perfect performance evaluation and incentive system.
Based on the principle that the income of senior management is linked to the business performance of
the enterprise, the Company followed an open, fair and impartial process to appoint senior management,
and continuously and timely improved the assessment mechanism. The Company has established a
compensation system in line with the development needs of the Company and the actual situation of the
industry to ensure the enthusiasm of senior management.
X. Construction and implementation of internal control system during the Reporting Period
√ Applicable □ Not applicable
     During the Reporting Period, the Company has established a strict internal control management
system in strict accordance with the requirements of the Company Law, the Securities Law, the Stock
Listing Rules of the Shanghai Stock Exchange, and other applicable laws, regulations and regulatory
documents, as well as the Articles of Association. The Company has set up an Audit Committee under
the Board of Directors to review the internal control of the Company, supervise the effective
implementation of internal control and self-evaluation of internal control, and guide and coordinate
internal audit and other related matters. The Company has set up an Audit Department to independently
carry out audit under the guidance of the Audit Committee under the Board of Directors. The Audit
Department is accountable to the Audit Committee. The Audit Department evaluates the efficiency,
results and effectiveness of the design and implementation of internal control through internal control
                                               Annual Report 2025
   audits, business management audits, special audits and economic responsibility audits, and promotes the
   Company’s continuous improvement and enhancement of the quality of internal control. The Audit
   Department reports the internal control defects found in the audit to the Audit Committee or the
   management according to the seriousness of the problems, and urges the relevant departments to take
   active measures to rectify them. According to the identification of major defects in the Company’s
   internal control, in 2025, the Company had no significant defects and important defects in the internal
   control of financial reporting and non-financial reporting. The Company has continuously improved the
   internal control system. Therefore, the internal control operation mechanism is effective, which has
   achieved the expected internal control objectives and protected the interests of the Company and all
   shareholders.
   Particulars on major defects in the internal control during the Reporting Period
   □ Applicable √ Not applicable
   XI. Management and Control over the Subsidiaries during the Reporting Period
   √ Applicable □ Not applicable
        During the Reporting Period, the Company has implemented the Management System for Holding
   Subsidiaries, stipulating the control measures and the responsibilities and authority of the parent
   company and the subsidiaries in the subsidiary’s articles of association, personnel appointment and
   removal, financial management, operation decision, information management, inspection and
   assessment, so as to ensure that the various businesses of the subsidiaries meet the requirements of the
   Company’s overall development strategy, ensure that the financial position of the subsidiaries is
   effectively monitored by the Company, prevent significant operating risks of the subsidiaries, and
   protect the security and integrity of assets.
                                                               Problems
                               Integration       Integration                Solutions    Solution Subsequent
  Name of subsidiary                                               in
                                   plan           progress                    taken      progress   solutions
                                                              integration
                                               Integration of
                             Integration of
                                               organizational
                             organizational
Shanghai Mymybear                              structure,
                             structure,
Enterprise Management                          management
                             management
                                               rules,         No          No             No        No
Co., Ltd. (上海沫沫班长 rules,
                                               operational
企业管理有限公司)                    operational
                                               models and
                             models and
                                               business
                             business
                                               completed
                                               Integration of
                             Integration of
                                               organizational
                             organizational
                                               structure,
                             structure,
SHANGHAI M&G                                   management
                             management
STATIONERY                                     rules,         No          No             No        No
                             rules,
(THAILAND) CO., LTD                            operational
                             operational
                                               models and
                             models and
                                               business
                             business
                                               completed
   Risk warning regarding abnormalities in management and control over subsidiaries
   □ Applicable √ Not applicable
   XII. Particulars on the Auditor’s Report on Internal Control
   √ Applicable □ Not applicable
        The Company engaged BDO China Shu Lun Pan CPAs (LLP) to audit the implementation of
   internal control in its 2025 financial statements and the Audit Report on Internal Control was issued. For
   the full text of the report, see 2025 Audit Report on Internal Control disclosed on the website of the
   Shanghai Stock Exchange (www.sse.com.cn) on April 1, 2026.
   Whether to disclose the audit report on internal control: yes
                                            Annual Report 2025
Opinion type of the audit report on internal control: With unqualified opinion
Indicate whether the Company was issued any modified opinion by the independent auditor on its
internal control for the Reporting Period or last year.
□ Yes √ No
XIII. Self-inspection and Rectification of Problems in the Special Action on Governance of Listed
Companies
Not applicable
XIV. Environmental information of the listed company and its major subsidiaries included in the
list of enterprises that are required by law to disclose environmental information
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
XV. Overview of Social Responsibility
(I) Whether a social responsibility report, sustainability report or ESG report is disclosed
separately
√ Applicable □ Not applicable
    The Company has disclosed the 2025 Environmental, Social, and Governance (ESG) Report on the
website of the Shanghai Stock Exchange (www.sse.com.cn) on April 1, 2026.
(II) Particulars on the fulfillment of social responsibility
√ Applicable □ Not applicable
          Donations and public welfare activities                Number/content      Description
Total expenditure (RMB 0’000)                                                1,091
Of which: Funds (RMB 0’000)                                                    380
          Worth of supplies and materials (RMB 0’000)                          711
Number of people benefited                                                921,000
Detailed description
√ Applicable □ Not applicable
     The Company always undertakes social responsibilities of its own accord. During the Reporting
Period, the Shanghai M&G Charity Foundation continued to give play to the superior resources of the
Company, highlighted and deeply engaged in rural art education, special population development and
other public welfare activities, and continued to further foster the “Golden Seed Plan” education
assistance program, the “Art Education Plan” program, the Autism Support Program and other public
welfare programs, gathering forces from all walks of life to follow up on social topics to care for
children’s childhood and power the development of a harmonious society.
     For more details, see the 2025 Environmental, Social, and Governance (ESG) Report disclosed by
the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) on April 1, 2026.
XVI. Consolidation and Expansion of the Achievements of Poverty Alleviation and Rural
Revitalization
√ Applicable □ Not applicable
   Poverty alleviation and rural revitalization activities     Number/content       Description
Total expenditure (RMB 0’000)                                                   632
Of which: Funds (RMB 0’000)                                                      30
         Worth of supplies and materials (RMB 0’000)                            600
Number of people benefited                                                  811,000
Way of support (by industrial development, job creation,   Educational support,
educational development, etc.)                             i.e. assisting schools
                                            Annual Report 2025
                                                                 in carrying out
                                                                 relevant educational
                                                                 activities
Detailed description
√ Applicable □ Not applicable
     The Shanghai M&G Charity Foundation actively responded to the state’s call for rural art
education, integrated social resources and initiated the Art Education Plan based on the status quo of
scattered resources for art education, promoting the creation of industrial ecology for rural art education
for children and beefing up rural revitalization and local art quality through art education. The program
has joined hands with many partners to bring M&G Public Welfare Art Class to 960 rural primary
schools and 110 community children’s service stations. It has also promoted the in-depth integration of
business strengths and public welfare by launching the “Red Scarf’s Love for the Motherland” Painting
Competition, which has attracted the participation of more than 500 primary and secondary schools and
collected 170,000 painting works.
XVII. Others
□ Applicable √ Not applicable
                                                                                                             Annual Report 2025
                                                                                                Section V               Major Events
                 I. Performance of Undertakings
                 (I) Undertakings by the Company’s beneficial controllers, shareholders, related parties, acquirers, the Company and other related parties during or
                 subsisted in the Reporting Period
                 √ Applicable □ Not applicable
                                                                                                                                                                                                                        If not
                                                                                                                                                                                                           Whether                  If not
                                                                                                                                                                                                                      performed
                                                                                                                                                                               Whether                     strictly               performed
Background                                                                                                                                                                                                             in time,
                    Type of      Undertaking                                                                                                                   Time of the     there is     Term of the   performed                in time,
     of                                                                                Contents of the undertaking                                                                                                     describe
                  undertakings     party                                                                                                                       undertaking   deadline for   undertaking       in a                 describe
undertakings                                                                                                                                                                                                              the
                                                                                                                                                                             performance                    timely                 plans in
                                                                                                                                                                                                                       specific
                                                                                                                                                                                                           manner                 next steps
                                                                                                                                                                                                                       reasons
                                                     Undertaking for restriction on sale of shares and voluntary lockup undertaking by Keying Investment
                                 Keying        and Jiekui Investment, shareholders holding more than 5% of the equity
                  Restriction
                                 Investment          (1) The proportion of shares unlocked every year shall not exceed 25% of the total shares held by the     April 22,
                  on sale of                                                                                                                                                 No             Permanent     Yes
                                 Jiekui        Company;                                                                                                        2014
                  shares
                                 Investment          (2) Notwithstanding any change in the position of some of the partners in the joint venture or their
                                               departure from the joint venture, the joint venture will strictly perform the above undertakings.
                                                     Shareholding and intention to reduce shareholding of the controlling shareholder—M&G Group
                                                     (1) M&G Group advocates that shares of the Company should be held in the long term to ensure that
                                               M&G Group shares operation achievements of the Company on a continuous basis. Therefore, M&G Group
                                 M&G           has the intention to hold shares of the Company for a long term.                                                April 22,
                  Others                                                                                                                                                     No             Permanent     Yes
                                 Group               (2) If M&G Group intends to reduce shareholding of the Company, it will announce its reduction plan 3     2014
                                               transaction days before reducing the shareholding. Furthermore, the reduction will be performed legally
                                               according to rules of Shanghai Stock Exchange in the form of block trade, auction transaction as well as
Undertakings                                   other methods recognized by China Securities Regulatory Commission.
related to                                           Shareholding and intention to reduce shareholding of Keying Investment and Jiekui Investment,
initial public                                 shareholders holding more than 5% of the equity
offering                                             (1) The joint venture, which is an employee-owned enterprise established by officials and important
                                 Keying        business professionals of the Company, advocates that shares of the Company should be held in the long
                                 Investment    term to ensure that operation achievements of the Company are shared on a continuous basis. Therefore, the      April 22,
                  Others                                                                                                                                                     No             Permanent     Yes
                                 Jiekui        joint venture has the intention to hold shares of the Company for a long term.                                  2014
                                 Investment          (2) If the joint venture intends to reduce shareholding of the Company, it will announce its reduction
                                               plan 3 transaction days before reducing the shareholding. Furthermore, the reduction will be performed
                                               legally according to rules of Shanghai Stock Exchange in the form of block trade, auction transaction as well
                                               as other methods recognized by China Securities Regulatory Commission.
                                 M&G                 Undertaking in relation to non-competition by M&G Group, Keying Investment and Jiekui Investment
                  Address        Group,              (1) The enterprise and other enterprises (except the Company and enterprises controlled by it)
                  competition    Keying        controlled and (or) invested by it currently have not engaged in any form of business or activity that          February
                                                                                                                                                                             No             Permanent     Yes
                  between        Investment    constitutes or may constitute a direct or indirect competition relationship with principal businesses of the    15, 2012
                  counterparts   and           Company and enterprises controlled by it.
                                 Jiekui              (2) After the initial public offering and listing of the Company, the enterprise and other enterprises
                                                                                          Annual Report 2025
               Investment   (except the Company and enterprises controlled by it) controlled and (or) invested by it will not:
                                  ① engage in any form of business or activity that constitutes or may constitute a direct or indirect
                            competition relationship with current or future principal businesses that the Company and enterprises
                            controlled by it specialize in;
                                  ② support other enterprises other than the Company and enterprises controlled by it in any form of
                            business or activity that constitutes or may constitute a direct or indirect competition relationship with
                            current or future principal businesses that the Company and enterprises controlled by it specialize in;
                                  ③ interfere in any form of business or activity that constitutes or may constitute a direct or indirect
                            competition relationship with current or future principal businesses that the Company and enterprises
                            controlled by it specialize in.
                                  Apart from the aforesaid undertaking, the enterprise further guarantees that it will
                                  ① ensure its independence in assets, businesses, employees, finance and institution according to
                            relevant rules of laws and regulations;
                                  ② adopt legal and effective measures to stop companies, enterprises and other economic organizations
                            that the enterprise has control right from engaging directly or indirectly in the same or similar businesses
                            with the Company;
                                  ③ not take advantage of its position as the controlling shareholder of the Company to carry out any
                            other activities that may harm the rights of the Company and other shareholders.
                                  Undertaking in relation to non-competition by beneficial controllers—Chen Huwen, Chen Huxiong,
                            and Chen Xueling
                                  (1) I currently hold no position in other companies or economic organizations that have the same or
                            similar business with the Company or enterprises controlled by it.
                                  (2) Other enterprises (except the Company and enterprises controlled by it) which are controlled by me
                            independently and/ or in which I am one of the beneficial shareholders currently have not engaged in any
                            form of business or activity that constitutes or may constitute a direct or indirect competition relationship
                            with principal businesses of the Company and enterprises controlled by it.
                                  (3) After the initial public offering and listing of the Company, other enterprises (except the Company
                            and enterprises controlled by it) which are controlled by me independently and/ or in which I am one of the
                            beneficial shareholders will not:
               Chen               ① engage in any form of business or activity that constitutes or may constitute a direct or indirect
Address        Huwen,       competition relationship with current or future principal businesses that the Company and enterprises
competition    Chen         controlled by it specialize in;                                                                                 February
                                  ② support other enterprises other than the Company and enterprises controlled by it in any form of                   No   Permanent   Yes
between        Huxiong,                                                                                                                     15, 2012
counterparts   and Chen     business or activity that constitutes or may constitute a direct or indirect competition relationship with
               Xueling      current or future principal businesses that the Company and enterprises controlled by it specialize in;
                                  ③ interfere in any form of business or activity that constitutes or may constitute a direct or indirect
                            competition relationship with current or future principal businesses that the Company and enterprises
                            controlled by it specialize in.
                                  Apart from the aforesaid undertaking, I further guarantee that I will:
                                  ① ensure its independence in assets, businesses, employees, finance and institution according to
                            relevant rules of laws and regulations;
                                  ② adopt legal and effective measures to stop companies, enterprises and other economic organizations
                            that I have control right from engaging directly or indirectly in the same or similar businesses with the
                            Company;
                                  ③ not take advantage of the position as the beneficial controller of the Company to carry out any other
                            activities that may harm the rights of the Company and other shareholders.
                                                                                       Annual Report 2025
                           Undertaking on the binding measures in case of the failure to fulfill the undertaking by M&G
                      Stationery
                           (1) The Company will strictly perform various obligations and responsibilities set out in all public
                      undertaking issues in the initial public offering and listing.
                           (2) If the Company fails to perform various obligations and responsibilities set out in the undertaking
                      issues, the Company undertakes to take the following measures for restrictions:
                           ① Compensate public investors for direct losses suffered by relying on relevant undertakings to
                      implement transactions through self-owned capital with the amount of compensation being determined
         M&G                                                                                                                               April 22,
Others                according to negotiation between the Company and investors, or the method or amount determined by the                            No   Permanent   Yes
         Stationery   securities supervision and administration department and the judicial authority;                                     2014
                           ② Within 12 months after the date when the Company fully eliminates the adverse effect due to failure
                      on related undertaking issues, the Company shall not issue securities, including but not limited to shares,
                      corporate bonds, convertible corporate bonds and other types of securities approved by securities regulatory
                      authorities;
                           ③ The Company shall not increase the salary or allowance of our directors, supervisors and senior
                      management in any form until the Company has fully eliminated the adverse effect due to failure on related
                      undertaking issues.
                           Undertaking on the binding measures in case of the failure to fulfill the undertaking by the controlling
                      shareholder—M&G Group
                           (1) M&G Group will strictly perform various obligations and responsibilities set out in all public
                      undertaking issues in the initial public offering and listing of M&G Stationery.
                           (2) If M&G Group fails to perform various obligations and responsibilities set out in the aforesaid
         M&G          undertaking issues, M&G Group undertakes to take the following measures for restrictions:                            April 22,
Others                     ① Compensate public investors for direct losses suffered by relying on relevant undertakings to                             No   Permanent   Yes
         Group                                                                                                                             2014
                      implement transactions through self-owned capital with the amount of compensation being determined
                      according to negotiation between M&G Group and investors, or the method or amount determined by the
                      securities regulatory authorities and the judicial authority;
                           ② The lockup period of M&G Stationery’s shares held by M&G Group will be automatically extended
                      to the date when M&G Group fully eliminates the adverse effect due to failure on related undertaking issues.
                           Undertaking on the binding measures in case of the failure to fulfill the undertaking by beneficial
                      controllers—Chen Huwen, Chen Huxiong, and Chen Xueling
                           (1) I will strictly perform various obligations and responsibilities set out in all public undertaking issues
                      in the initial public offering and listing of M&G Stationery.
                           (2) If I fail to perform various obligations and responsibilities set out in the aforesaid undertaking
         Chen         issues, I undertake to take the following measures for restrictions:
         Huwen,            ① Compensate public investors for direct losses suffered by relying on relevant undertakings to
         Chen         implement transactions through self-owned capital with the amount of compensation being determined                   April 22,
Others                according to negotiation between investors and me, or the method or amount determined by the securities                          No   Permanent   Yes
         Huxiong,                                                                                                                          2014
         and Chen     regulatory authorities and the judicial authority;
         Xueling           ② The lockup period of M&G Stationery’s shares held by me directly or indirectly will be
                      automatically extended to the date when I fully eliminate the adverse effect due to failure on related
                      undertaking issues.
                           ③ I shall not require M&G Stationery to increase my salary or allowance in any form, nor shall I
                      accept the increase of salary or allowance by M&G Stationery in any form until I have fully eliminated the
                      adverse effect due to failure on related undertaking issues.
Others   Keying            Undertaking on the binding measures in case of the failure to fulfill the undertaking by Keying                 April 22,   No   Permanent   Yes
                                                                             Annual Report 2025
Investment   Investment and Jiekui Investment, shareholders holding more than 5% of the equity                                  2014
Jiekui            (1) The joint venture will strictly perform various obligations and responsibilities set out in all public
Investment   undertaking issues in the initial public offering and listing of M&G Stationery.
                  (2) If the joint venture fails to perform various obligations and responsibilities set out in the aforesaid
             undertaking issues, the joint venture undertakes to take the following measures for restrictions:
                  ① Compensate public investors for direct losses suffered by relying on relevant undertakings to
             implement transactions through self-owned capital with the amount of compensation being determined
             according to negotiation between the joint venture and investors, or the method or amount determined by the
             securities regulatory authorities and the judicial authority;
                  ② The lockup period of M&G Stationery’s shares held by the joint venture will be automatically
             extended to the date when the joint venture fully eliminates the adverse effect due to failure on related
             undertaking issues.
                                          Annual Report 2025
(II) Where the Company has profit forecasts on assets or projects, and the Reporting Period was
within the term of profit forecasts, the Company has to state whether such profit forecasts on
assets or projects are fulfilled and the reasons thereof
□Fulfilled □Unfulfilled √ Not applicable
(III) Performance undertakings
□ Applicable √ Not applicable
Changes to performance undertakings
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
II. Non-operating Misappropriation of Funds of the Company by any Controlling Shareholders
and Their Related Parties during the Reporting Period
□ Applicable √ Not applicable
III. Illegal Guarantee
□ Applicable √ Not applicable
IV. Explanation of the Company’s Board of Directors on the “Auditor’s Report with Modified
Audit Opinions” Issued by the CPA
□ Applicable √ Not applicable
V. Analysis and Explanation from the Company on the Reasons and Impact of the Change of
Accounting Policies, Accounting Estimates or Correction on Significant Accounting Errors
(I) Analysis and explanation from the Company on the reasons and impact of the change of
accounting policies or accounting estimates
□ Applicable √ Not applicable
(II) Analysis and explanation from the Company on the reasons and impact of the correction on
significant accounting errors
□ Applicable √ Not applicable
(III) Communication with the previous accounting firm
□ Applicable √ Not applicable
(IV) Approval process and other descriptions
□ Applicable √ Not applicable
VI. Appointment and Dismissal of the Accounting Firm
                                                                      Unit: 0’000 Currency: RMB
                                                                   Current accounting firm
Name of domestic accounting firm                           BDO China Shu Lun Pan CPAs (LLP)
Remuneration of domestic accounting firm                   170
Term of office of domestic accounting firm                 16
Names of certified public accountants of domestic
                                                           Chen Luying, and Yuan Yang
accounting firm
How many consecutive years the certified public            Chen Luying: 5 years
accountants of the domestic accounting firm have           Yuan Yang: 1 year
                                           Annual Report 2025
provided audit service for the Company
                                                       Name                            Remuneration
Internal control audit accounting firm   BDO China Shu Lun Pan CPAs (LLP)         90
Explanation on appointment and dismissal of the accounting firm
√ Applicable □ Not applicable
During the Reporting Period, the BDO China Shu Lun Pan CPAs (LLP) was re-appointed as the audit
institution.
Explanation on the change of accounting firm during the auditing period
□ Applicable √ Not applicable
Explanation on any over 20% (inclusive) reduction in audit fee compared to last year
□ Applicable √ Not applicable
VII. Risk of Suspension of Listing
(I) Causes of suspension of listing
□ Applicable √ Not applicable
(II) Measures to be taken by the Company
□ Applicable √ Not applicable
(III) Situation and causes for termination of listing
□ Applicable √ Not applicable
VIII. Matters Related to Bankruptcy and Reorganization
□ Applicable √ Not applicable
IX. Material Litigation and Arbitration
□ The Company had material litigation and arbitration during the year
√ The Company did not have material litigation and arbitration during the year
X. Suspected Violation of Laws and Regulations, Punishment and Rectification to the Listed
Company, Its Directors, Senior Management, Controlling Shareholders, and Actual Controllers
□ Applicable √ Not applicable
XI. Explanation on Credibility Status of the Company, Its Controlling Shareholders and Beneficial
Controllers during the Reporting Period
□ Applicable √ Not applicable
XII. Major Related-party Transactions
(I) Related-party transactions in relation to daily operation
subsequent implementation
□ Applicable √ Not applicable
subsequent implementation
√ Applicable □ Not applicable
    The 10th meeting of the 6th session of Board of Directors and 2024 Annual General Meeting of
Shareholders of the Company considered and approved the Proposal on the Expected Daily
                                          Annual Report 2025
Related-party Transactions in 2025, and issued the Announcement on the Expected Daily Related-party
Transactions in 2025 (number: 2025-008) on March 26, 2025.
     In 2025, the estimated income from the Company’s selling goods to the sales entities controlled by
Guo Shaomin amounted to RMB314,210,000.00, and the estimated income from Jiumu Store’s selling
goods to Rising Goal Investments Pte. Ltd. amounted to RMB68,000,000.00. It was estimated that fees
for the Company’s leasing the properties of M&G Group (including office buildings, workshops,
parking space, warehouses and dormitories) amounted to RMB4,621,000.00; and utilities amounted to
RMB6,000,000.00. It was estimated that the expenses incurred by Colipu Group in leasing M&G
Group’s office building and parking space amounted to RMB17,959,000.00, the expenses incurred by
Colipu Information Technology in leasing M&G Group’s office building amounted to
RMB3,126,000.00, and the expenses incurred by Qizhihaowan in leasing M&G Group’s office building
and parking space amounted to RMB1,748,000.00.
     In 2025, the actual income from the Company’s selling goods to the sales entities controlled by
Guo Shaomin amounted to RMB256,305,112.44, and the actual income from Jiumu Store’s selling
goods to Rising Goal Investments Pte. Ltd. amounted to RMB52,097,285.65. The actual fees for the
Company’s leasing the properties of M&G Group (including office buildings, workshops, parking space,
warehouses and dormitories) amounted to RMB4,620,952.40; and utilities amounted to
RMB5,452,226.33. The actual expenses incurred by Colipu Group in leasing M&G Group’s office
building and parking space amounted to RMB16,221,781.48, the actual expenses incurred by Colipu
Information Technology in leasing M&G Group’s office building amounted to RMB2,813,180.14, and
the actual expenses incurred by Qizhihaowan in leasing M&G Group’s office building and parking space
amounted to RMB1,784,941.40.
□ Applicable √ Not applicable
(II) Related transactions as a result of acquisition and disposal of assets or equity
subsequent implementation
□ Applicable √ Not applicable
subsequent implementation
□ Applicable √ Not applicable
□ Applicable √ Not applicable
agreed-upon performance
□ Applicable √ Not applicable
(III) Major related transactions in joint external investment
subsequent implementation
□ Applicable √ Not applicable
subsequent implementation
□ Applicable √ Not applicable
                                           Annual Report 2025
□ Applicable √ Not applicable
(IV) Creditor’s rights and debts with related parties
subsequent implementation
□ Applicable √ Not applicable
subsequent implementation
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(V) Financial business between the Company and the affiliated financial companies, the
Company’s holding financial company and the related party
□ Applicable √ Not applicable
(VI) Others
□ Applicable √ Not applicable
XIII. Material Contracts and Their Performance
(I) Trusteeship, contracting and leasing matters
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(II) Guarantees
□ Applicable √ Not applicable
(III) Entrusting others to manage cash assets
(1) Overall condition of entrusted wealth management
√ Applicable □ Not applicable
                                                                      Unit: 0’000 Currency: RMB
                                                                             Overdue uncollected
          Type            Risk characteristic         Undue balance
                                                                                  amount
Bank’s wealth
                                Low risk                        400,000
management product
Others
□ Applicable √ Not applicable
                                           Annual Report 2025
(2) Individual entrusted wealth management
□ Applicable √ Not applicable
Others
□ Applicable √ Not applicable
(3) Provision for the impairment of entrusted wealth management
□ Applicable √ Not applicable
(1) Overall condition of entrusted loans
□ Applicable √ Not applicable
Others
□ Applicable √ Not applicable
(2) Individual entrusted loans
□ Applicable √ Not applicable
Others
□ Applicable √ Not applicable
(3) Provision for the impairment of entrusted loans
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(IV) Other material contracts
□ Applicable √ Not applicable
XIV. Progress on the use of raised capital
□ Applicable √ Not applicable
XV. Explanation of Other Major Events that Have a Material Impact on Investors’ Value
Judgments and Investment Decisions
□ Applicable √ Not applicable
                                                                         Annual Report 2025
                                        Section VI               Changes in Shares and Shareholders
               I. Changes in Share Capital
               (I) Statement of changes in shares
                                                                                                                                             Unit: share
                                             Before the change                        Increase/decrease of the change (+, -)                       After the change
                                                                         Issue
                                                                                                 Capital
                                                         Percentage        of     Bonus                                                                         Percentage
                                          Quantity                                          reserve-converted     Others        Subtotal         Quantity
                                                            (%)           new     shares                                                                           (%)
                                                                                                  shares
                                                                        shares
I. Restricted shares
person
Including: Shares held by domestic
non-state-owned legal person
            Shares held by domestic
natural person
Including: Shares held by foreign
legal person
            Shares held by overseas
natural person
II. Non-restricted circulating shares     923,828,420          100.00                                           -2,858,043     -2,858,043       920,970,377        100.00
III. Total number of shares               923,828,420          100.00                                           -2,858,043     -2,858,043       920,970,377        100.00
               √ Applicable □ Not applicable
                     The Company convened the 10th meeting of the 6th Board of Directors on March 24, 2025 and the
               Re-purposing Part of the Repurchased Shares and Retiring Such Shares was reviewed and approved. It
               was approved that the purpose of the repurchased shares under the 2022 Share Repurchase Plan held in
               the special securities account for repurchased shares be changed from “to be used for equity incentives
               or employee stock ownership plans” to “to be retired and to reduce the registered capital accordingly”.
               Specifically, the Company will retire 2,858,043 shares in the special securities account for repurchased
               shares and reduce its registered capital accordingly. Upon completion of the said repurchase and
               retirement, the total share capital of the Company will be reduced from 923,828,420 shares to
               financial indicators in the last year and period (if any)
               √ Applicable □ Not applicable
                    (1) Basic earnings per share
                    Basic earnings per share are based on the combined net profit attributable to the ordinary
               shareholders of the parent company divided by the weighted mean of the Company’s outstanding
               ordinary shares:
                                                                                Unit: Yuan     Currency: RMB
                                                                                                           Amount in the current           Amount in the last
                                                        Item
                                                                                                                 period                         period
            Combined net profit attributable to ordinary shareholders of the parent company                   1,310,448,991.96              1,395,844,392.50
            Weighted mean of the Company’s outstanding ordinary shares                                          915,984,543.67                920,590,793.67
            Basic earnings per share                                                                                      1.4306                      1.5162
            Including: Basic earnings per share from continuing as a going concern                                        1.4306                      1.5162
                                                       Annual Report 2025
           Basic earnings per share from not continuing as a going concern
        (2) Diluted earnings per share
        Diluted earnings per share are based on the combined net profit (diluted) attributable to the ordinary
   shareholders of the parent company divided by the weighted mean (diluted) of the Company’s
   outstanding ordinary shares:
                                                                            Unit: Yuan       Currency: RMB
                                        Item                                           Amount in the current    Amount in the
                                                                                             period              last period
Combined net profit (diluted) attributable to ordinary shareholders of the parent
company
Weighted mean of the Company’s outstanding ordinary shares(diluted)                           915,984,543.67    920,590,793.67
Diluted earnings per share                                                                            1.4306            1.5162
Including: Diluted earnings per share from continuing as a going concern                              1.4306            1.5162
           Diluted earnings per share from not continuing as a going concern
   require disclosing
   □ Applicable √ Not applicable
   (II) Changes in restricted shares
   □ Applicable √ Not applicable
   II. Issuance and Listing of Securities
   (I) Issuance of securities as at the Reporting Period
   □ Applicable √ Not applicable
   Explanation on issuance of securities as at the Reporting Period (please provide separate explanation on
   the bonds with different interest rates during their duration):
   □ Applicable √ Not applicable
   (II) Changes in the total number of ordinary shares and shareholder structure of the Company
   and changes in the structure of assets and liabilities of the Company
   □ Applicable √ Not applicable
   (III) Existing internal employee shares
   □ Applicable √ Not applicable
    III. Shareholder and Beneficial Controller
    (I) Total number of shareholders
   Total number of shareholders of ordinary shares as at the end of the Reporting Period                            40,286
   Total number of shareholders of ordinary shares at the end of last month prior to the
   disclosure date of this annual report
   Total number of shareholders of preferred shares whose voting rights have been
   restored as at the end of the Reporting Period
   Total number of shareholders of preferred shares whose voting rights have been
   restored at the end of last month prior to the disclosure date of this annual report
   (II) Table of shareholdings of the top ten shareholders and the top ten public shareholders (or
   unrestricted shareholders) as at the end of the Reporting Period
                                                                                        Unit: share
                        Shareholdings of the top ten shareholders (exclusive of shares lent in refinancing)
                                                       Annual Report 2025
                                                                                                        Pledged,
                                                                                         Number
                                                             Number of                                 marked, or
                                       Change during                                        of                         Nature of
       Name of shareholder                                shares held as at   Percenta                   frozen
                                       the Reporting                                     restricte                     sharehold
          (full name)                                      the end of the      ge (%)                Status
                                           Period                                        d shares             Quan         er
                                                               period                                  of
                                                                                           held                 tity
                                                                                                     share
                                                                                                                       Domestic
                                                                                                                       nonstate-o
M&G Holdings (Group) Co., Ltd.                       0        536,000,000       58.20           0    No            0   wned
                                                                                                                       legal
                                                                                                                       person
Hong Kong Securities Clearing
Company Limited
Industrial and Commercial Bank of
China Limited-Invesco Great Wall
Emerging Mature and Hybrid
Equity Investment Funds（中国工                          0         31,500,000         3.42          0    No            0   Others
商银行股份有限公司－景顺长城
新兴成长混合型证券投资基金）
Bank of China Limited-Invesco
Great Wall Ding Yi Hybrid
Security Investment Fund (LOF)                       0         15,000,002         1.63          0    No            0   Others
（中国银行股份有限公司－景顺
长城鼎益混合型证券投资基金）
                                                                                                                       Domestic
Chen Huxiong                                         0         13,609,300         1.48          0    No            0   natural
                                                                                                                       person
                                                                                                                       Domestic
Chen Huwen                                           0         13,609,300         1.48          0    No            0   natural
                                                                                                                       person
Shanghai Keying Investment
                                             -3,290,600         11,371,958         1.23            0 No             0 Others
Management Office (L.P.)
Shanghai Jiekui Investment
                                             -3,248,400         11,245,500         1.22            0 No             0 Others
Management Firm (L.P.)
Kuwait Investment Authority－
                                             -4,499,400          7,649,152         0.83            0 No             0 Others
Own Capital
China Construction Bank
Corporation －Lombarda China
Senior Care Industry Mixed
Securities Investment Fund (中国               -3,229,519          7,193,903         0.78            0 No             0 Others
建设银行股份有限公司－中欧养
老产业混合型证券投资基金)
                  Shareholdings of the top ten unrestricted shareholders (exclusive of shares lent in refinancing)
                                                             Number of unrestricted public shares        Type and number of shares
                 Name of shareholder
                                                                            held                          Type        Number
                                                                                                        Ordinary
M&G Holdings (Group) Co., Ltd.                                                         536,000,000        RMB         536,000,000
                                                                                                         Shares
                                                                                                        Ordinary
Hong Kong Securities Clearing Company Limited                                           37,452,145        RMB          37,452,145
                                                                                                         Shares
Industrial and Commercial Bank of China
Limited-Invesco Great Wall Emerging Mature and                                                          Ordinary
Hybrid Equity Investment Funds（中国工商银行股份                                                 31,500,000        RMB          31,500,000
有限公司－景顺长城新兴成长混合型证券投资基                                                                                    Shares
金）
Bank of China Limited-Invesco Great Wall Ding Yi                                                        Ordinary
Hybrid Security Investment Fund (LOF)（中国银行股                                             15,000,002        RMB          15,000,002
份有限公司－景顺长城鼎益混合型证券投资基金）                                                                                   Shares
                                                                                                        Ordinary
Chen Huxiong                                                                            13,609,300        RMB          13,609,300
                                                                                                         Shares
                                                         Annual Report 2025
                                                                                                       Ordinary
Chen Huwen                                                                               13,609,300     RMB              13,609,300
                                                                                                        Shares
                                                                                                       Ordinary
Shanghai Keying Investment Management Office
(L.P.)
                                                                                                        Shares
                                                                                                       Ordinary
Shanghai Jiekui Investment Management Firm (L.P.)                                        11,245,500     RMB              11,245,500
                                                                                                        Shares
                                                                                                       Ordinary
Kuwait Investment Authority－Own Capital                                                   7,649,152     RMB               7,649,152
                                                                                                        Shares
China Construction Bank Corporation －Lombarda
China Senior Care Industry Mixed Securities                                                            Ordinary
Investment Fund (中国建设银行股份有限公司－中
                                                                                                        Shares
欧养老产业混合型证券投资基金)
Special repurchase account of the top ten shareholders      Not applicable
Explanation on the above-mentioned shareholders’
entrusting voting rights, accepting voting rights           Not applicable
entrusted and waiver of voting rights
                                                            There is related relationship among the shareholders—M&G Group,
                                                            Keying Investment, Jiekui Investment, Chen Huwen, and Chen
                                                            Huxiong. Chen Huwen and Chen Huxiong are parties acting in concert.
Explanation on the related relationship or parties acting
                                                            Save as the above, the Company is not aware of any related relationship
in concert among the above shareholders
                                                            or parties acting in concert as set out in Measures for the
                                                            Administration of the Takeover of Listed Companies among the
                                                            aforesaid shareholders.
Explanation on the preference shareholders with voting
                                                            Not applicable
rights restored and their shareholdings
    refinancing shares lending
    □ Applicable √ Not applicable
    Changes in the top ten shareholders and top ten unrestricted public shareholders compared with the prior
    period due to refinancing shares lending/returning
    □ Applicable √ Not applicable
    Shareholdings of the top ten restricted shareholders and the restrictions
    □ Applicable √ Not applicable
    (III) Strategic investors or general legal persons becoming the top ten shareholders because of
    placing of new shares
    □ Applicable √ Not applicable
    IV. Controlling Shareholder and Beneficial Controllers
    (I) Controlling shareholder
    √ Applicable □ Not applicable
    Name                                            M&G Holdings (Group) Co., Ltd.
    Person in charge of the Company or legal
                                                    Chen Huxiong
    representative
    Establishment date                              2007-5-10
                                                    Industrial investment, infrastructure investment, consultation for
                                                    investment information (except broker), consultation for enterprise
                                                    management and relevant businesses, domestic trade (excluding projects
    Main operation businesses
                                                    with national special approval) [For items subject to approval pursuant to
                                                    laws, business activities shall be carried out only after approval by the
                                                    relevant competent authorities.]
    Equity interests of other domestic and          No
                                               Annual Report 2025
overseas listed companies controlled or
invested during the Reporting Period
Other explanations                        No
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
    controlling shareholders
√ Applicable □ Not applicable
                                               M&G Group
                                          M&G Stationery
(II) Beneficial controllers
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Name                                               Chen Huwen
Nationality                                        China
Acquire right of residence in other countries
                                                   Yes
or regions or not
                                                   Chairman of the Board of Shanghai M&G Stationery
Main job and title
                                                   Inc.
Shareholdings in other domestic or overseas
                                                   No
listed companies over the past 10 years
Name                                               Chen Huxiong
Nationality                                        China
Acquire right of residence in other countries
                                                   Yes
or regions or not
                                                   Vice-chairman of the Board and CEO of Shanghai
Main job and title
                                                   M&G Stationery Inc.
Shareholdings in other domestic or overseas
                                                   No
listed companies over the past 10 years
Name                                               Chen Xueling
                                             Annual Report 2025
Nationality                                      China
Acquire right of residence in other countries
                                                 No
or regions or not
                                                 Chairman of the Board and vice president of Shanghai
Main job and title
                                                 M&G Stationery Inc.
Shareholdings in other domestic or overseas
                                                 No
listed companies over the past 10 years
□ Applicable √ Not applicable
□ Applicable √ Not applicable
    beneficial controllers
√ Applicable □ Not applicable
                                    Chen               Chen              Chen
                                   Xueling             Huwen            Huxiong
                        M&G                              Keying            Jiekui
                        Group                          Investment       Investment
                                                  M&G
                                                Stationery
    management
□ Applicable √ Not applicable
(III) Other explanation regarding the controlling shareholders and the beneficial controllers
□ Applicable √ Not applicable
V. The Total Shares Pledged by the Controlling Shareholder or the First Majority Shareholder and
the Person Acting in Concert Account for More Than 80% of the Company’s Shares Held by
Them
□ Applicable √ Not applicable
                                            Annual Report 2025
VI. Other Legal Person Shareholders with More Than 10% Shareholdings
□ Applicable √ Not applicable
VII. Explanation on Limitation on Reduction of Shareholding
□ Applicable √ Not applicable
VIII. Implementation of Share Repurchase during the Reporting Period
√ Applicable □ Not applicable
                                                                    Unit: 00’000’000 Currency: RMB
                                                       Plan for Share Repurchase through the Stock
Name of the share repurchase plan
                                                       Exchange
Date of the disclosure of the share repurchase plan    28 August 2024
Number of shares to be repurchased and that as %
of the total share capital
Amount to be used for the share repurchase                                                         1.5-3.0
                                                       Within 6 months starting from the date of the
Planned repurchase period                              share repurchase plan’s approval at the 8th
                                                       meeting of the 6th session of Board of Directors
                                                       To be used as equity incentives or in employee
Purpose of the repurchased shares
                                                       stock ownership plans
Number of shares that have been repurchased                                                    1,725,000
Number of shares that have been repurchased as %
of the total underlying shares of the equity incentive
plan (if any)
Progress on reduction of repurchased shares through
                                                       Not applicable
the stock exchange
IX. Preferred Shares
□ Applicable √ Not applicable
                                      Annual Report 2025
                                  Section VII        Bonds
I. Corporate Bonds (Including Enterprise Bonds) and Non-financial Enterprise Debt Financing
Instruments
□ Applicable √ Not applicable
II. Convertible Corporate Bonds
□ Applicable √ Not applicable
                                                  Annual Report 2025
                                   Section VIII            Financial Report
     I. Auditor’s Report
     √ Applicable □ Not applicable
                                                                       Xin Kuai Shi Bao Zi [2026] No. ZA10648
     To the shareholders of Shanghai M&G Stationery Inc.:
          I. Audits’ Opinion
          We have audited the accompanying financial statements of Shanghai M&G Stationery Inc.
     (hereinafter referred to as “M&G”), which comprise the consolidated and parent company’s balance
     sheets as at December 31, 2025, the consolidated and parent company’s income statements, the
     consolidated and parent company’s cash flow statements, and the consolidated and parent company’s
     statements of changes in shareholders’ equity for the year of 2025, as well as notes to financial
     statements.
          In our opinion, the accompanying financial statements were prepared in accordance with the
     Accounting Standards for Business Enterprises in all material aspects and give a true and fair view of the
     consolidated and parent company’s financial position of M&G as at December 31, 2025 and of its
     consolidated and parent company’s operating results and cash flows for the year of 2025.
          II. Basis of Auditors’ Opinion
          We have conducted our audit in accordance with the Chinese Auditing Standards for Certified
     Public Accountants. The “Responsibilities of Certified Public Accountants for Auditing of Financial
     Statements” in the auditor’s report further illustrate our responsibilities under those standards. In
     accordance with China Registered Accountants Independence Standards No. 1 – Independence
     Requirements for Financial Statement Audit and Review Engagements and the Code of Professional
     Ethics of Chinese Certified Public Accountants, we are independent of M&G and have performed other
     responsibilities in respect of professional ethics. We have complied with the independence requirements
     applicable to audits of public interest entities in our audit. We believe that the audit evidence we have
     obtained is sufficient and appropriate to provide a basis for our opinion.
            III. Key Audit Matters
           Key audit matters are those matters that, in our professional judgment, were of most significance in
      our audit of the financial statements for the current period. These matters were addressed in the context
      of our audit of the financial statements as a whole and, in forming our opinion thereon, we do not
      provide a separate opinion on these matters.
           The key audit matters identified in our audit are summarized as follows:
                  Key audit matters                            How our audit addressed the key audit matter
(I) Recognition of the revenue
Please refer to notes to financial statements for       1. We understood and evaluated design of the key internal
accounting policies set out in “III Significant         control designed by management and we tested the
Accounting Policies and Accounting Estimates”           effectiveness of implementing key controls;
(XXVI) and “V Notes to Consolidated Financial           2. We inspected customer contracts, on a sample basis, to
Statements” (XLIII).                                    identify terms and conditions related to the transfer of control
M&G mainly specializes in selling stationery and        over the goods, and assessed the timing of revenue
office supplies.                                        recognition with reference to the requirements of prevailing
In 2025, M&G’s revenue from principal business          accounting standards;
in sales recognition amounted to                        3. We selected samples for revenue transactions recorded
RMB25,004,637,500.                                      during the current year, with invoices, sales contracts, goods
                                                 Annual Report 2025
M&G recognized revenue based on the expected           delivery notes or transport documents to assess whether the
amount of consideration that it is entitled to         related revenue was recognized in accordance with M&G’s
receive when the customer obtains control of the       revenue recognition accounting policies;
relevant products or services.                         4. We performed analytical procedures on revenue and cost,
Since revenue is one of the key performance            including analysis of revenue, cost, gross profit margin
indicators of M&G, there is possibly inherent risk     fluctuations in each month of the current period, and
of inappropriately recognizing revenue to reach        performed analysis on sales model to observe whether there is
specific purpose in revenue recognition made           any abnormal transaction;
based on the sales group of distributor; there is      5. We took samples from revenue transactions that took place
possibly potential risk of material misstatement in    shortly before and after the balance sheet date, by checking
revenue recognition made based on the sales group      delivery orders and other supportive documents to assess
of end customer because it involves many               whether revenue was recognized in the correct accounting
transactions with small amount for each                period;
transaction, so we recognized revenue recognition      6. We evaluated the accuracy and authenticity of the revenue
as a key audit matter.                                 amount by implementing the letter verification procedure
                                                       based on the balances of accounts receivable from major
                                                       customers and checking goods return after the period.
(II) Anticipated credit loss of accounts receivable
Please refer to notes to financial statements for
accounting policies set out in “III Significant
                                                       control regarding impairment of financial assets (including
Accounting Policies and Accounting Estimates”
                                                       accounts receivable) designed by management and we tested
(X) and “V Notes to Consolidated Financial
                                                       the effectiveness of implementing key controls;
Statements” (IV).
As at December 31, 2025, balance of accounts
                                                       credit loss of accounts receivable, including judgment of
receivable amounted to RMB4,673,738,000, and
                                                       forward-looking information; basis of estimation on
provision made for credit impairment loss of
                                                       anticipated credit loss made on a single item, and basis of
accounts receivable amounted to RMB96,202,500.
                                                       estimation on anticipated credit loss made on portfolio,
M&G measured provision for loss of accounts
                                                       including rationality of the division for portfolio;
receivable in accordance with amount of
anticipated credit loss in the entire lifetime. The
                                                       management on internal and external environment of M&G’s
anticipated credit loss requires the management to
                                                       operation, integrity of different customers, repayment history,
take into consideration of forward-looking
                                                       repayment capacity, and historical experience in credit loss;
information apart from combining historical
experience and current situations, involving lots of
                                                       provision for loss made by the management on single and
estimation and judgment, so we recognized
                                                       portfolio accounts receivable is consistent with the amount of
anticipated credit loss of accounts receivable as a
                                                       anticipated credit loss in the entire existing period.
key audit matter.
          IV. Other Information
          The management of M&G (hereinafter referred to as the “management”) is responsible for the other
     information which comprises all the information covered in M&G 2025 Annual Report other than the
     financial statements and this auditor’s report.
          Our audit opinion on the financial statements does not cover the other information and we do not
     express any form of assurance conclusion thereon.
          In conjunction with our audit to the financial statements, our responsibility is to read the other
     information. During the process, we considered whether there is material inconsistency or there is likely
     material misstatement between the other information and the financial statements or the information we
     obtained during the audit.
                                             Annual Report 2025
     As we have performed the work on the other information obtained before the date of our auditor’s
report, we shall report if we confirmed there was a material misstatement among the other information.
We have nothing needed to be reported on this case.
     V. Responsibilities of the Management and Governing Bodies for the Financial Statements
     The management shall be responsible for the preparation of financial statements in accordance with
the Accounting Standards for Business Enterprises to enable them to be fairly reflected, and to design,
implement and maintain the necessary internal controls so that there is no material misstatement due to
fraud or error in the financial statements.
     In the preparation of the financial statements, the management is responsible for assessing M&G’s
continuous operating capacity, disclosing matters relating to continuous operations (if applicable), and
applying the continuing operating assumptions unless the management plans to perform liquidation,
cease operation or otherwise has no realistic choice.
     The governing bodies are responsible for overseeing the financial reporting process of M&G.
      VI. Responsibilities of CPA for the Audit of the Financial Statements
      Our objective is to obtain reasonable assurance of the financial statements as a whole whether there
is a material misstatement due to fraud or error and to issue an auditor’s report containing audit opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with China Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
      As part of an audit in accordance with the auditing standards, we exercised professional judgment
and maintained professional skepticism throughout the audit. We also performed the following works:
      (1) to identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error; design and perform audit procedures responsive to those risks; and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
      (2) to understand the internal control related to the audit to design the appropriate audit procedures.
      (3)to evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the management.
      (4) to draw a conclusion on the appropriateness of the management’s use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the ability of M&G to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause M&G to cease to continue
as a going concern.
      (5) to evaluate the overall presentation, structure and content (including disclosure) of the financial
statements, and to assess whether the financial statements reflect the related transactions and events
fairly.
      (6) to obtain sufficient and appropriate audit evidence of the financial information of the entity or
business activity of the M&G in order to express an opinion on the consolidated financial statements.
We are responsible for directing, supervising and performing group audits. We take full responsibility
for the audit opinion.
                                            Annual Report 2025
     We communicated with the governing bodies regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during the audit.
     We also provided a statement to management on compliance with ethical requirements related to
independence, and communicated with governing bodies about all relationships and other matters that
may be reasonably considered to affect our independence, as well as related precautions (if applicable).
     From the matters we had discussed with the governing bodies, we confirmed which matters were
most important to the audit of the financial statements for the current period and thus constituted the key
audit matters. We set out these matters in the auditor’s report. Unless the disclosure of these matters are
forbidden by the laws and regulations, or, in rare cases, if it is reasonably expected that the negative
impacts caused by discussing certain matters in the auditor’s report would be larger than the benefits for
public interest, we shall not disclose the matters in the auditor’s report under such circumstances.
BDO China Shu Lun Pan CPAs                Chinese Certified Public Accountant:
(LLP)                                     (Engagement Partner)
                                          Chinese Certified Public Accountant:
Shanghai• China                           March 30, 2026
                                                   Annual Report 2025
II. Financial Statements
                                           Consolidated Balance Sheet
                                               December 31, 2025
Prepared by: Shanghai M&G Stationery Inc.
                                                                                     Unit: Yuan   Currency: RMB
                Item                       Notes             December 31, 2025               December 31, 2024
Current assets:
   Cash and equivalents                 VII. 1                          3,981,622,540.50           4,962,217,302.12
   Transaction settlement funds
   Lending funds
   Held-for-trading financial assets    VII. 2                          4,108,620,317.14           2,569,112,993.22
   Derivative financial assets
   Bills receivable                     VII. 4                             59,999,337.34              17,425,526.65
   Accounts receivable                  VII. 5                          4,577,535,438.46           3,860,635,417.76
   Receivables financing                VII. 7                             31,211,919.98              28,475,371.64
   Prepayment                           VII. 8                             73,305,304.90              90,743,672.42
   Premium receivable
   Reinsurance premium receivable
   Reserves for reinsurance contract
receivable
   Other receivables                    VII. 9                           272,193,803.53              238,243,332.88
   Including: Interest receivable
               Dividend receivable
   Financial assets purchased under
agreements to resell
   Inventories                          VII. 10                         1,669,037,168.03           1,545,866,718.79
   Including: Data resources
   Contract assets
   Held for sale assets
   Non-current assets due within one
                                        VII. 12                              215,660.65                 862,796.30
year
   Other current assets                 VII. 13                        152,292,696.29                243,981,456.14
      Total current assets                                          14,926,034,186.82             13,557,564,587.92
Non-current assets:
   Loans and advances to customers
   Debt investment
   Other debt investment
   Long-term receivables
   Long-term equity investments         VII. 17                           35,606,521.84               33,578,115.08
   Investments in other equity
                                        VII. 18                           10,817,798.40               10,579,958.34
instruments
   Other non-current financial assets
   Investment real estate               VII. 20                            46,287,368.81              51,381,912.17
   Fixed assets                         VII. 21                         1,682,453,574.18           1,527,715,803.59
   Construction in progress             VII. 22                            44,073,444.33             148,515,963.08
   Productive biological assets
   Oil and gas assets
   Right-of-use assets                  VII. 25                          439,544,777.86              411,719,344.82
   Intangible assets                    VII. 26                          429,114,453.37              432,067,482.88
   Including: Data resources
   Development expenses
   Including: Data resources
   Goodwill                             VII. 27                        105,404,838.99                 63,529,740.20
   Long-term prepaid expenses           VII. 28                        126,263,559.53                112,797,521.91
   Deferred income tax assets           VII. 29                        224,612,360.53                217,629,784.10
   Other non-current assets             VII. 30                          4,753,846.49                 19,704,965.34
      Total non-current assets                                       3,148,932,544.33              3,029,220,591.51
        Total assets                                                18,074,966,731.15             16,586,785,179.43
Current liabilities:
                                                Annual Report 2025
   Short-term borrowings              VII. 32                         245,131,111.12     341,061,169.83
   Borrowings from central bank
   Placements from banks and other
financial institutions
   Held-for-trading financial
liabilities
   Derivative financial liabilities   VII. 34                              46,320.08
   Bills payable
   Accounts payable                   VII. 36                        5,980,392,579.19   5,006,486,563.20
   Accounts received in advance       VII. 37                            3,378,737.08
   Contract liabilities               VII. 38                          142,178,051.39    143,347,403.44
   Financial assets sold under
repurchase agreements
   Deposits from customers and other
banks
   Brokerage for trading securities
   Brokerage for underwriting
securities
   Employee benefits payable          VII. 39                         209,831,364.57     189,490,079.29
   Taxes payable                      VII. 40                         250,015,556.93     237,312,733.19
   Other payables                     VII. 41                         534,646,908.51     518,745,735.51
   Including: Interest payable
              Dividend payable
   Fees and commissions payable
   Reinsured accounts payable
   Held-for-sale liabilities
   Non-current liabilities due within
                                      VII. 43                         213,429,554.47     204,601,711.39
one year
   Other current liabilities          VII. 44                          164,408,891.88      98,936,760.02
      Total current liabilities                                      7,743,459,075.22   6,739,982,155.87
Non-current liabilities:
   Reserves for insurance contracts
   Long-term borrowings               VII. 45                          35,998,000.00       6,000,000.00
   Bonds payable
   Including: Preference shares
               Perpetual bonds
   Lease liabilities                  VII. 47                         214,599,529.16     199,105,187.71
   Long-term payable
   Long-term employee benefits
payable
   Estimated liabilities              VII. 50                             500,000.00         369,927.50
   Deferred income                    VII. 51                          15,887,633.60      34,963,559.04
   Deferred income tax liabilities    VII. 29                         187,524,882.52     170,671,488.51
   Other non-current liabilities
      Total non-current liabilities                                    454,510,045.28     411,110,162.76
         Total liabilities                                           8,197,969,120.50   7,151,092,318.63
Owner’s equity (or shareholders’ equity):
   Share capital                      VII. 53                         920,970,377.00     923,828,420.00
   Other equity instruments
   Including: Preference shares
               Perpetual bonds
   Capital reserve                    VII. 55                         714,449,171.29     840,320,493.39
   Less: Treasury shares              VII. 56                         150,041,006.57     251,095,546.75
   Other comprehensive income         VII. 57                            -590,724.83     -11,423,451.31
   Special reserve
   Surplus reserve                    VII. 59                         464,201,654.91     464,201,654.91
   General risk provision
   Undistributed profit               VII. 60                        7,338,681,217.85   6,944,027,602.89
   Total equity attributable to the
owners of the parent company
   Minority equity                                                    589,326,921.00     525,833,687.67
      Total owners’ equity (or
shareholders’ equity)
                                                  Annual Report 2025
        Total liabilities and owner’s
equity (or shareholders’ equity)
The chairman of the Company: Chen Huwen                                      CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
                                        Parent Company’s Balance Sheet
                                               December 31, 2025
Prepared by: Shanghai M&G Stationery Inc.
                                                                                    Unit: Yuan   Currency: RMB
                 Item                     Notes             December 31, 2025               December 31, 2024
Current assets:
   Cash and equivalents                                                  987,013,921.54           2,053,563,177.06
   Held-for-trading financial assets                                   3,084,951,651.14           2,156,713,193.81
   Derivative financial assets
   Bills receivable
   Accounts receivable                  XIX. 1                          260,358,838.38              216,971,760.87
   Receivables financing
   Prepayment                                                             9,611,049.73               10,291,736.91
   Other receivables                    XIX. 2                          521,438,557.39            1,089,091,354.20
   Including: Interest receivable
               Dividend receivable
   Inventories                                                          337,793,756.06              361,750,498.85
   Including: Data resources
   Contract assets
   Held for sale assets
   Non-current assets due within one
year
   Other current assets                                                  150,404,176.16             163,630,053.93
      Total current assets                                             5,351,787,611.05           6,052,874,571.93
Non-current assets:
   Debt investment
   Other debt investment
   Long-term receivables
   Long-term equity investments         XIX. 3                         1,820,563,744.45           1,678,535,337.69
   Investments in other equity
instruments
   Other non-current financial assets
   Investment real estate
   Fixed assets                                                        1,185,740,976.20           1,276,904,083.43
   Construction in progress                                               36,656,986.67              46,229,563.79
   Productive biological assets
   Oil and gas assets
   Right-of-use assets                                                   47,659,883.78               34,304,378.56
   Intangible assets                                                    163,134,731.67              167,834,907.44
   Including: Data resources
   Development expenses
   Including: Data resources
   Goodwill
   Long-term prepaid expenses                                              9,577,530.61              20,578,956.59
   Deferred income tax assets                                             10,599,746.10              10,988,111.43
   Other non-current assets                                                1,614,228.93               5,978,528.33
      Total non-current assets                                         3,286,365,626.81           3,251,933,825.60
         Total assets                                                  8,638,153,237.86           9,304,808,397.53
Current liabilities:
   Short-term borrowings
   Held-for-trading financial
liabilities
   Derivative financial liabilities
                                               Annual Report 2025
  Bills payable
  Accounts payable                                                   265,662,097.16             251,998,097.85
  Accounts received in advance
  Contract liabilities                                                 24,682,659.81             24,477,902.07
  Employee benefits payable                                           111,762,858.65            104,213,576.99
  Taxes payable                                                        73,368,973.04             82,286,512.35
  Other payables                                                    1,044,842,628.13          1,725,497,505.37
  Including: Interest payable
             Dividend payable
  Held-for-sale liabilities
  Non-current liabilities due within
one year
  Other current liabilities                                             2,496,507.13              2,480,204.79
     Total current liabilities                                      1,544,115,890.96          2,200,451,318.02
Non-current liabilities:
  Long-term borrowings
  Bonds payable
  Including: Preference shares
              Perpetual bonds
  Lease liabilities                                                   26,019,343.88              21,768,906.70
  Long-term payable
  Long-term employee benefits
payable
  Estimated liabilities                                                                             369,927.50
  Deferred income                                                     11,124,996.80              28,035,686.51
  Deferred income tax liabilities                                     20,974,399.99              16,199,629.60
  Other non-current liabilities
     Total non-current liabilities                                     58,118,740.67             66,374,150.31
        Total liabilities                                           1,602,234,631.63          2,266,825,468.33
Owner’s equity (or shareholders’ equity):
  Share capital                                                      920,970,377.00             923,828,420.00
  Other equity instruments
  Including: Preference shares
              Perpetual bonds
  Capital reserve                                                    349,012,146.30             496,166,349.50
  Less: Treasury shares                                              150,041,006.57             251,095,546.75
  Other comprehensive income                                           8,931,016.20               7,292,879.31
  Special reserve
  Surplus reserve                                                     463,872,795.00            463,872,795.00
  Undistributed profit                                              5,443,173,278.30          5,397,918,032.14
     Total owners’ equity (or
shareholders’ equity)
        Total liabilities and owner’s
equity (or shareholders’ equity)
The chairman of the Company: Chen Huwen                                   CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
                                      Consolidated Income Statement
                                         January - December 2025
                                                                                 Unit: Yuan   Currency: RMB
                  Item                            Notes                   2025                   2024
I. Total revenue                                                      25,063,909,836.47       24,228,248,698.65
Including: Revenue                           VII. 61                  25,063,909,836.47       24,228,248,698.65
        Interest income
        Premium received
        Handling fee and commission income
II. Total operating costs                                             23,574,143,913.58       22,614,762,821.64
Including: Operating cost                    VII. 61                  20,462,813,963.30       19,649,752,559.47
        Interest expenses
                                                    Annual Report 2025
         Handling fee and commission
expenses
         Payment on surrenders
         Net compensation expenses
         Net provision drawn for insurance
contract
         Policy dividend expenses
         Reinsurance expenses
         Taxes and surcharges                     VII. 62                  100,390,340.73      95,645,558.71
         Selling expenses                         VII. 63                1,860,144,631.03   1,738,039,609.61
         Administrative expenses                  VII. 64                  966,231,850.63     981,802,848.21
         R&D expenses                             VII. 65                  189,639,354.87     189,145,980.66
         Financial expenses                       VII. 66                   -5,076,226.98     -39,623,735.02
         Including: Interest expenses                                       27,831,891.86      27,331,016.15
                    Interest income                                         35,152,616.54      64,177,866.11
   Add: Other gains                               VII. 67                  130,489,651.94     132,438,188.72
         Income from investment (“-” refers to
                                                  VII. 68                   9,895,830.01        -364,758.05
loss)
         Including: Investment income from
associates and joint ventures
                     Derecognition of income
from financial assets at amortized cost
         Exchange gains (“-” refers to loss)
         Net gain on exposure hedging (“-”
refers to loss)
         Gain on change in fair value (“-”
                                                  VII. 70                  58,155,252.93      54,361,789.99
refers to loss)
         Losses on credit impairment (“-”
                                                  VII. 71                  -22,872,885.89     -28,410,867.15
refers to loss)
         Losses on assets impairment (“-”
                                                  VII. 72                   -9,370,921.23     -12,879,311.68
refers to loss)
         Gains from asset disposal (“-” refers
                                                  VII. 73                   -2,847,905.15         -10,284.89
to loss)
III. Operating profits (“-” refers to loss)                              1,653,214,945.50   1,758,620,633.95
   Add: Non-operating profits                     VII. 74                   75,631,491.35      78,129,813.59
   Less: Non-operating expenses                   VII. 75                   20,142,203.88      15,492,461.01
IV. Total profits (“-” refers to total loss)                             1,708,704,232.97   1,821,257,986.53
   Less: Income tax expenses                      VII. 76                  347,534,198.38     366,523,055.44
V. Net profits (“-” refers to net loss)                                  1,361,170,034.59   1,454,734,931.09
(I) Classified by operation continuity
(“-” refers to net loss)
(“-” refers to net loss)
(II) Classified by ownership
of the parent company (“-” refers to net loss)
shareholders (“-” refers to net loss)
VI. Net amount of other comprehensive
income after tax
   (I) Net amount of other comprehensive
income after tax attributable to owners of the                             10,832,726.48      -10,477,874.14
parent company
                                                                             -305,512.43       1,490,423.21
reclassified into profit or loss
   (1) Change in re-measurement of defined
benefit plans
   (2) Other comprehensive income that may
not be reclassified to profit or loss under                                  -507,676.48         296,271.03
equity method
   (3) Change in fair value of investments in
other equity instruments
   (4) Change in fair value of enterprise’s
                                                  Annual Report 2025
own credit risk
reclassified into profit or loss
   (1) Other comprehensive income that may
be reclassified to profit or loss under equity                            1,943,649.32            11,920.22
method
   (2) Change in fair value of other debt
investments
   (3) Amount included in other
comprehensive income on reclassification of
financial assets
   (4) Credit impairment provisions of other
debt investments
   (5) Cash flow hedging reserve                                          1,776,705.72          -845,326.86
   (6) Exchange differences from translation
of financial statements
   (7) Others
   (II) Net amount of other comprehensive
income after tax attributable to minority                                 -2,205,038.92         -816,938.33
shareholders
VII. Total comprehensive income                                        1,369,797,722.15    1,443,440,118.62
   (I) Total comprehensive income
attributable to owners of the parent company
   (II) Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
   (I) Basic earnings per share (Yuan/share)                                    1.4306               1.5162
   (II) Diluted earnings per share
(Yuan/share)
In case of business combination under common control, net profit realized by the combined before the
combination in the period was nil; net profit realized by the combined in the previous period was nil.
The chairman of the Company: Chen Huwen                             CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
                                    Income Statement of the Parent Company
                                            January - December 2025
                                                                         Unit: Yuan        Currency: RMB
                    Item                              Notes                2025               2024
I. Revenue                                       XIX. 4                 4,151,719,699.55   4,379,397,430.80
   Less: Operating cost                          XIX. 4                 2,301,417,959.64   2,460,634,350.19
        Taxes and surcharges                                               38,825,737.48       36,194,364.90
        Selling expenses                                                  260,806,321.27     270,279,336.76
        Administrative expenses                                           478,043,581.61     491,409,817.22
        R&D expenses                                                      142,394,698.73     149,146,241.99
        Financial expenses                                                -26,317,479.89     -52,879,140.51
        Including: Interest expenses                                        2,400,727.43        1,828,685.69
                  Interest income                                          21,477,616.80       45,382,917.24
   Add: Other gains                                                        41,321,418.17       35,110,652.95
        Income from investment (“-” refers to
                                                 XIX. 5                     2,265,183.03     287,842,385.68
loss)
        Including: Investment income from
associates and joint ventures
                   Derecognition of income
from financial assets at amortized cost
        Net gain on exposure hedging (“-”
refers to loss)
        Gain on change in fair value (“-”
refers to loss)
        Losses on credit impairment (“-”
refers to loss)
        Losses on assets impairment (“-”                                      471,325.67      -2,714,383.75
                                                  Annual Report 2025
refers to loss)
          Gains from asset disposal (“-” refers
to loss)
II. Operating profits (“-” refers to loss)                                1,047,619,042.05        1,392,891,288.10
    Add: Non-operating profits                                               69,651,967.92           39,489,173.46
    Less: Non-operating expenses                                              3,883,740.63            6,594,404.82
III. Total profits (“-” refers to total loss)                             1,113,387,269.34        1,425,786,056.74
    Less: Income tax expenses                                               152,336,646.18          167,521,754.03
IV. Net profits (“-” refers to net loss)                                    961,050,623.16        1,258,264,302.71
    (I) Net profits from continuing activities
(“-” refers to net loss)
    (II) Net profits from discontinuing
activities (“-” refers to net loss)
V. Net amount of other comprehensive
income after tax
    (I) Other comprehensive income not to be
                                                                                -305,512.43           1,490,423.21
reclassified into profit or loss
benefit plans
not be reclassified to profit or loss under                                     -507,676.48            296,271.03
equity method
other equity instruments
credit risk
    (II) Other comprehensive income to be
reclassified into profit or loss
be reclassified to profit or loss under equity                                  1,943,649.32              11,920.22
method
investments
comprehensive income on reclassification of
financial assets
debt investments
of financial statements
VI. Total comprehensive income                                             962,688,760.05         1,259,766,646.14
VII. Earnings per share:
   (I) Basic earnings per share (Yuan/share)
   (II) Diluted earnings per share
(Yuan/share)
The chairman of the Company: Chen Huwen                                    CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
                                         Consolidated Cash Flow Statement
                                             January - December 2025
                                                                                    Unit: Yuan   Currency: RMB
                   Item                           Notes                  2025                      2024
I. Cash flow from operating activities:
   Cash received from sales of goods or
rendering of services
   Net increase in customer and
interbank deposits
   Net increase in borrowings from
central bank
                                                      Annual Report 2025
   Net increase in placements from
banks and other financial institutions
   Cash received from premiums under
original insurance contract
   Net cash received from reinsurance
business
   Net increase in deposits of policy
holders and investments
   Cash received from interest, fees and
commissions
   Net increase in borrowings
   Net increase in repurchase business
capital
   Net cash received from securities
trading agency services
   Tax rebates                                                                21,922,728.69       28,793,960.26
   Other cash received from operating
                                            VII. 78                         1,453,451,080.36    1,911,518,646.32
activities
     Sub-total of cash inflows from
operating activities
   Cash paid for goods and services                                        21,907,018,844.38   21,587,437,494.24
   Net increase in customer loans and
advances
   Net increase in deposits with PBOC
and interbank deposits
   Cash paid for compensation
payments under original insurance
contract
   Net increase in funds for lending
   Cash paid for interests, handling
charges and commissions
   Cash paid for policy dividends
   Cash paid to and on behalf of
employees
   Taxes and fees paid                                                       970,982,965.16     1,087,074,596.45
   Cash paid for other operating
                                            VII. 78                         2,587,320,671.51    2,701,465,377.42
activities
     Sub-total of cash outflows from
operating activities
        Net cash flow generated from
operating activities
II. Cash flow from investing activities:
   Cash received from disposal of
investments
   Cash received from returns on
investments
   Net cash received from disposal of
fixed assets, intangible assets and other                                       2,664,696.18        4,158,570.96
long-term assets
   Net cash received from disposal of
subsidiaries and other operating entities
   Other cash received relating to
                                            VII. 78                             5,219,162.31         497,844.25
investing activities
     Sub-total of cash inflows from
investing activities
   Cash paid for purchase and
construction of fixed assets, intangible                                     366,847,884.07      329,274,686.22
assets and other long-term assets
   Cash paid for investment                                                 3,900,000,000.00    3,973,000,000.00
   Net increase in pledged loans
   Net cash paid for acquiring
subsidiaries and other operating entities
   Other cash paid relating to investing
activities
     Sub-total of cash outflows from                                        4,285,271,802.15    4,302,274,686.22
                                                Annual Report 2025
investing activities
        Net cash flow generated from
                                                                     -1,715,924,885.85       -1,574,839,557.15
investing activities
III. Cash flow generated from financing activities:
   Proceeds received from financing
activities
   Including: Proceeds received by
subsidiaries from minority shareholders’                                 4,325,183.58          506,897,050.00
investment
   Cash received from borrowings                                       347,960,000.00          372,730,000.00
   Other cash received from
                                         VII. 78                         4,750,000.00
financing-related activities
     Sub-total of cash inflows from
financing activities
   Cash repayments of borrowings                                       417,882,000.00          241,850,000.00
   Dividends paid, profit distributed or
interest paid
   Including: Dividend and profit paid
by subsidiaries to minority shareholders
   Other cash paid for financing-related
                                         VII. 78                       369,865,778.35          569,048,890.82
activities
     Sub-total of cash outflows from
financing activities
        Net cash flow from financing
                                                                     -1,352,914,770.08        -698,573,860.33
activities
IV. Effects of exchange rate
fluctuations on cash and cash                                            2,694,362.11            2,603,516.04
equivalents
V. Net increase in cash and cash
                                                                      -784,072,825.17           18,530,895.35
equivalents
   Add: Cash and cash equivalents at the
beginning of the period
VI. Cash and cash equivalents at the
end of the period
The chairman of the Company: Chen Huwen                                  CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
                                Cash Flow Statement of the Parent Company
                                         January - December 2025
                                                                       Unit: Yuan           Currency: RMB
                   Item                        Notes                   2025                    2024
I. Cash flow from operating activities:
   Cash received from sales of goods or
rendering of services
   Tax rebates
   Other cash received from operating
activities
     Sub-total of cash inflows from
operating activities
   Cash paid for goods and services                                  2,324,732,437.80        2,497,276,629.57
   Cash paid to and on behalf of
employees
   Taxes and fees paid                                                 360,232,283.55          410,769,251.30
   Cash paid for other operating
activities
     Sub-total of cash outflows from
operating activities
        Net cash flow generated from
operating activities
II. Cash flow from investing activities:
   Cash received from disposal of
investments
                                                Annual Report 2025
   Cash received from returns on
investments
   Net cash received from disposal of
fixed assets, intangible assets and other                                1,664,210.56            2,474,910.71
long-term assets
   Net cash received from disposal of
subsidiaries and other operating entities
   Other cash received relating to
investing activities
     Sub-total of cash inflows from
investing activities
   Cash paid for purchase and
construction of fixed assets, intangible                                83,345,132.54          133,107,843.96
assets and other long-term assets
   Cash paid for investment                                          3,240,000,000.00        3,919,000,000.00
   Net cash paid for acquiring
subsidiaries and other operating entities
   Other cash paid relating to investing
activities
     Sub-total of cash outflows from
investing activities
        Net cash flow generated from
                                                                     -1,101,874,193.35       -1,140,941,941.81
investing activities
III. Cash flow generated from financing activities:
   Proceeds received from financing
activities
   Cash received from borrowings
   Other cash received from
financing-related activities
     Sub-total of cash inflows from
financing activities
   Cash repayments of borrowings
   Dividends paid, profit distributed or
interest paid
   Other cash paid for financing-related
activities
     Sub-total of cash outflows from
financing activities
        Net cash flow from financing
                                                                      -987,055,858.96         -928,556,772.91
activities
IV. Effects of exchange rate
fluctuations on cash and cash                                            3,056,338.34            9,414,157.16
equivalents
V. Net increase in cash and cash
                                                                      -768,891,683.95         -564,905,268.93
equivalents
   Add: Cash and cash equivalents at the
beginning of the period
VI. Cash and cash equivalents at the
end of the period
The chairman of the Company: Chen Huwen                                  CFO of the Company: Liu Jiaqi
Person in charge of Accounting Department: Zhai Yu
                                                                                                                                  Annual Report 2025
                                                                                                     Consolidated Statements of Changes in Owners’ Equity
                                                                                                                    January - December 2025
                                                                                                                                                                                                                                     Unit: Yuan            Currency: RMB
                                                                                                               Equity attributable to owners of the parent company
            Item                                                                                                                                                                                                                                                                    Total equity
                                                                                                                                                                                                                                                           Minority equity
                                                           Other equity instruments                                                                                                                                                                                           attributable to owners
                                                                                                                                    Other                                                 General
                                Paid-up capital (or                                                         Less: Treasury                         Special
                                                                                          Capital reserve                       comprehensive                   Surplus reserve             risk     Undistributed profit   Others       Subtotal
                                  share capital)      Preference    Perpetual                                   shares                             reserve
                                                                                 Others                                            income                                                provision
                                                        shares       bonds
I. Balance at the end of last
year
Add: Changes in
accounting policies
      Correction for
previous errors
      Others
II. Balance at the beginning
of the year
III. Increase and decrease
for the period (“-” for              -2,858,043.00                                        -125,871,322.10   -101,054,540.18      10,832,726.48                                                            394,653,614.96                 377,811,516.52       63,493,233.33         441,304,749.85
decrease)
(I) Total comprehensive
income
(II) Owner’s contribution
                                     -2,858,043.00                                        -125,871,322.10   -101,054,540.18                                                                                                               -27,674,824.92      14,977,229.62          -12,697,595.30
and capital reduction
                                     -2,858,043.00                                        -147,154,203.20   -101,054,540.18                                                                                                               -48,957,706.02       8,897,188.24          -40,060,517.78
contributed by the owners
other equity instrument
holders
payments credited to
owners’ equity
(III) Profit distribution                                                                                                                                                                                -915,795,377.00                -915,795,377.00                            -915,795,377.00
reserve
risk provision
                                                                                                                                                                                                         -915,795,377.00                -915,795,377.00                            -915,795,377.00
(or shareholders)
(IV) Internal carry-forward
of owners’ equity
reserve to capital (or share
capital)
reserve to capital (or share
capital)
loss
benefit scheme carried
                                                                                                                                   Annual Report 2025
forward to retained
earnings
comprehensive income to
retained earnings
(V) Special reserve
period
(VI) Others
IV. Balance at the end of
the period
                                                                                                                Equity attributable to owners of the parent company
            Item                                                                                                                                                                                                                                                                Total equity
                                                                                                                                                                                                                                                       Minority equity
                                                           Other equity instruments                                                  Other                                               General                                                                          attributable to owners
                                Paid-up capital (or                                                          Less: Treasury                         Special
                                                                                          Capital reserve                        comprehensive                    Surplus reserve          risk     Undistributed profit   Others    Subtotal
                                  share capital)      Preference    Perpetual                                    shares                             reserve
                                                                                 Others                                             income                                              provision
                                                        shares       bonds
I. Balance at the end of last
year
Add: Changes in
accounting policies
      Correction for
previous errors
      Others
II. Balance at the beginning
of the year
III. Increase and decrease
for the period (“-” for              -2,768,150.00                                         467,226,711.90      34,153,889.05     -10,477,874.14                                                         656,853,570.90              1,076,680,369.61       7,847,694.81       1,084,528,064.42
decrease)
(I) Total comprehensive
                                                                                                                                 -10,477,874.14                                                        1,395,844,392.50             1,385,366,518.36      58,073,600.26       1,443,440,118.62
income
(II) Owner’s contribution
                                     -2,768,150.00                                         467,226,711.90      34,153,889.05                                                                                                         430,304,672.85      -29,979,717.95         400,324,954.90
and capital reduction
                                     -2,768,150.00                                          -61,946,741.50     34,153,889.05                                                                                                          -98,868,780.55     -46,770,376.24        -145,639,156.79
contributed by the owners
other equity instrument
holders
payments credited to                                                                        58,774,860.49                                                                                                                             58,774,860.49       16,790,658.29          75,565,518.78
owners’ equity
(III) Profit distribution                                                                                                                                                                               -738,990,821.60             -738,990,821.60      -20,246,187.50        -759,237,009.10
reserve
risk provision
                                                                                                                                                                                                        -738,990,821.60             -738,990,821.60      -20,246,187.50        -759,237,009.10
(or shareholders)
(IV) Internal carry-forward
of owners’ equity
                                                                                                                                        Annual Report 2025
reserve to capital (or share
capital)
reserve to capital (or share
capital)
loss
benefit scheme carried
forward to retained
earnings
comprehensive income to
retained earnings
(V) Special reserve
period
(VI) Others
IV. Balance at the end of
the period
                   The chairman of the Company: Chen Huwen                                                       CFO of the Company: Liu Jiaqi                                           Person in charge of Accounting Department: Zhai Yu
                                                                                                 Parent Company’s Statement of Changes in Owners’ Equity
                                                                                                                January - December 2025
                                                                                                                                                                                                                                       Unit: Yuan                  Currency: RMB
                                                                                                          Other equity instruments                                                          Other
                                            Item                           Paid-up capital (or                                                                  Less: Treasury                                 Special                           Undistributed      Total equity attributable
                                                                                                                                              Capital reserve                           comprehensive                      Surplus reserve
                                                                             share capital)         Preference      Perpetual                                       shares                                     reserve                              profit                 to owners
                                                                                                                                     Others                                                income
                                                                                                      shares         bonds
                   I. Balance at the end of last year                           923,828,420.00                                                 496,166,349.50    251,095,546.75             7,292,879.31                   463,872,795.00       5,397,918,032.14           7,037,982,929.20
                   Add: Changes in accounting policies
                         Correction for previous errors
                         Others
                   II. Balance at the beginning of the year                     923,828,420.00                                                 496,166,349.50    251,095,546.75             7,292,879.31                   463,872,795.00       5,397,918,032.14           7,037,982,929.20
                   III. Increase and decrease for the period (“-” for
                                                                                 -2,858,043.00                                                -147,154,203.20   -101,054,540.18             1,638,136.89                                           45,255,246.16              -2,064,322.97
                   decrease)
                   (I) Total comprehensive income                                                                                                                                           1,638,136.89                                          961,050,623.16             962,688,760.05
                   (II) Owner’s contribution and capital reduction               -2,858,043.00                                                -147,154,203.20   -101,054,540.18                                                                                              -48,957,706.02
                   holders
                   equity
                   (III) Profit distribution                                                                                                                                                                                                     -915,795,377.00            -915,795,377.00
                   (IV) Internal carry-forward of owners’ equity
                                                                                                                          Annual Report 2025
retained earnings
retained earnings
(V) Special reserve
(VI) Others
IV. Balance at the end of the period                               920,970,377.00                                               349,012,146.30     150,041,006.57                8,931,016.20             463,872,795.00    5,443,173,278.30          7,035,918,606.23
                                                                                            Other equity instruments
                            Item                               Paid-up capital (or                                                                Less: Treasury          Other comprehensive   Special                      Undistributed     Total equity attributable
                                                                                                                                Capital reserve                                                           Surplus reserve
                                                                 share capital)       Preference      Perpetual                                       shares                     income         reserve                         profit                to owners
                                                                                                                       Others
                                                                                        shares         bonds
I. Balance at the end of last year                                  926,596,570.00                                              558,113,091.00    216,941,657.70                 5,790,535.88             463,872,795.00    4,878,644,551.03          6,616,075,885.21
Add: Changes in accounting policies
      Correction for previous errors
      Others
II. Balance at the beginning of the year                            926,596,570.00                                              558,113,091.00    216,941,657.70                 5,790,535.88             463,872,795.00    4,878,644,551.03          6,616,075,885.21
III. Increase and decrease for the period (“-” for decrease)         -2,768,150.00                                              -61,946,741.50     34,153,889.05                 1,502,343.43                                 519,273,481.11            421,907,043.99
(I) Total comprehensive income                                                                                                                                                   1,502,343.43                               1,258,264,302.71          1,259,766,646.14
(II) Owner’s contribution and capital reduction                       -2,768,150.00                                             -61,946,741.50      34,153,889.05                                                                                       -98,868,780.55
holders
equity
(III) Profit distribution                                                                                                                                                                                                   -738,990,821.60            -738,990,821.60
(IV) Internal carry-forward of owners’ equity
retained earnings
retained earnings
(V) Special reserve
(VI) Others
IV. Balance at the end of the period                                923,828,420.00                                              496,166,349.50    251,095,546.75                 7,292,879.31             463,872,795.00    5,397,918,032.14          7,037,982,929.20
The chairman of the Company: Chen Huwen                                                            CFO of the Company: Liu Jiaqi                                              Person in charge of Accounting Department: Zhai Yu
                                           Annual Report 2025
III. General Information about the Company
√ Applicable □ Not applicable
      Shanghai M&G Stationery Inc. (hereinafter referred to as “Company” or the “Company”) is a
limited company that was approved by the Approval for the Initial Public Offering of Shanghai M&G
Stationery Inc. in [2015] No. 15 securities regulatory license of China Securities Regulatory
Commission in January 2015. The Company’s business license No.: 91310000677833266F. In January
is manufacturing industry in products for stationery, arts, sports and entertainment.
      As of December 31, 2025, the Company issued a total of 920,970,377 shares accumulatively, and
its registered capital amounted to RMB920,970,377. The registered address of the Company is Building
include the design, development, manufacturing and marketing of writing instruments, student stationery,
office supplies and other products, the direct office supplies business and the new retail business.
      The parent company of the Company is M&G Holdings (Group) Co., Ltd., and the beneficial
controllers are Chen Huwen, Chen Huxiong, and Chen Xueling.
      The financial statements were approved for submission by the Board of Directors on March 30,
IV. Preparation Basis of Financial Statements
     The Company prepared financial statements in accordance with the Accounting Standards for
Business Enterprises - Basic Standards, and various specific account standards, application guidance for
accounting standards for business enterprises, interpretations of the accounting standards for business
enterprises and other relevant regulations (hereinafter collectively referred to as “Accounting Standards
for Business Enterprises”) promulgated by the Ministry of Finance, and the disclosure requirements in
the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public
No.15 - General Provisions on Financial Report issued by China Securities Regulatory Commission.
√ Applicable □ Not applicable
    These financial statements have been prepared on a going concern basis.
V. Significant Accounting Policies and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
√ Applicable □ Not applicable
     Disclosure of specific accounting policies and accounting estimates:
     The following disclosures cover the specific accounting policies and accounting estimates
formulated by the Company according to the characteristics of its production and operation. For details,
please refer to Notes “V (11) Financial Instruments”, “V (21) Fixed Assets”, “V (26) Intangible Assets”,
“V (28) Long-term Deferred Expenses”, “V (34) Income”, and “V (36) Government Subsidies”.
     The financial statements are in compliance with the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance, and truly and completely present the consolidated and parent
company’s financial position of the Company as at December 31, 2025, as well as the consolidated and
parent company’s operating results and cash flows for the year then ended.
     The accounting period of the Company is from January 1 to December 31 of each calendar year.
√ Applicable □ Not applicable
                                              Annual Report 2025
       The Company’s operating cycle is 12 months.
       RMB is adopted by the Company as the bookkeeping currency. Each subsidiary of the Company
  determines its own reporting currency based on the primary economic environment where it runs
  business. The reporting currency of Back to School Holding AS and Beckmann AS is NOK; the
  reporting currency of Beckmann Norway GmbH (Germany) is EUR; the reporting currency of
  Beckmann Norway Inc. is USD; the recording currency of Beckmann Norway GmbH (Austria) is EUR;
  the recording currency of Axus Stationery (Hong Kong) Company Ltd. is HKD; the recording currency
  of International stationery company is VND; and the recording currency of Shanghai M&G Stationery
  (Thailand) Co., Ltd. is THB. The financial statement herein is presented in RMB.
  √ Applicable □ Not applicable
                     Item                                           Materiality standard
Material accounts receivable where bad       The amount of a provision separately accrued accounts for
debt provisions are accrued separately       over 0.5% of total assets
                                             The amount of a single write-off accounts for over 0.5% of
Write-off of material accounts receivable
                                             total assets
Material bad debt provision amounts
                                             The amount of a single recovery or reversal accounts for over
recovered or reversed in the accounts
receivable in the current period
Other material accounts receivable where     The amount of a provision separately accrued accounts for
bad debt provisions are accrued separately   over 0.5% of total assets
Write-off of other material accounts         The amount of a single write-off accounts for over 0.5% of
receivable                                   total assets
Material bad debt provision amounts
                                             The amount of a single recovery or reversal accounts for over
recovered or reversed in other accounts
receivable in the current period
Material prepayments by amount that have The amount of a single prepayment that has aged over one
aged over one year                           year accounts for over 0.5% of total assets
Changes in material construction in
                                             The budget of a single project exceeds 3% of total assets
progress in the current period
Material accounts payable that have aged     The amount of a single account payable that has aged over one
over one year or are overdue                 year accounts for over 0.5% of total assets
Material contract liabilities that have aged The amount of a single contract liability that has aged over one
over one year                                year accounts for over 0.5% of total assets
Other material accounts payable that have    The amount of a single other account payable that has aged
aged over one year or are overdue            over one year accounts for over 0.5% of total assets
                                             The Company recognises the payments related to equity
Cash received in connection with material
                                             disposal that occur in amounts greater than 5% of net assets as
investing activities
                                             cash received in connection with material investing activities
                                             The Company recognises the payments related to equity
Cash paid in connection with material
                                             acquisition that occur in amounts greater than 5% of net assets
investing activities
                                             as cash paid in connection with material investing activities
                                             The Company recognises overseas operating entities whose
                                             total assets/gross profits/revenues exceed 15%/10%/15% of
Material overseas operating entities
                                             total consolidated assets/total consolidated profits/consolidated
                                             revenues as material overseas operating entities.
                                             The Company recognises non-wholly-owned subsidiaries
                                             whose       total    assets/gross     profits/revenues    exceed
Material non-wholly-owned subsidiary         15%/10%/15% of total consolidated assets/total consolidated
                                             profits/consolidated revenues as material non-wholly-owned
                                             subsidiaries.
Material joint ventures or associated        The Company recognises joint ventures or associated
                                               Annual Report 2025
enterprises                                     enterprises whose total assets/gross profits/revenues exceed
                                                profits/consolidated revenues as material joint ventures or
                                                associated enterprises.
  √ Applicable □ Not applicable
       Business combination under common control: the assets and liabilities acquired by the Company in
  business combination (including goodwill incurred in the acquisition of the acquiree by ultimate
  controlling party) shall be measured at the carrying amount of the assets and liabilities of the acquiree in
  the consolidated financial statements of the ultimate controlling party at the date of combination. The
  difference between the carrying amount of the net assets obtained and the carrying amount of the
  consideration paid for the merger (or total nominal value of the issued shares) is adjusted to capital
  premium in capital reserve. If the capital premium in capital reserve is not sufficient to offset the
  difference, the remaining balance is adjusted against retained earnings.
       Business combination not under common control: the cost of business combination is the fair value
  of the assets paid by the acquirer to obtain the control right of the acquiree, the liabilities incurred or
  assumed, and the equity securities issued at the date of purchase. Where the cost of business
  combination is higher than the fair value of the identifiable net assets acquired from the acquiree in
  business combination, the Company shall recognize such difference as goodwill; where the cost of
  business combination is less than the fair value of the identifiable net assets acquired from the acquiree
  in business combination, such difference shall be included in the current profit or loss. The identifiable
  assets, liabilities and contingent liabilities of the acquiree obtained in the business combination that meet
  the recognition conditions are measured at their fair values at the date of purchase.
       The direct expenses incurred in business combination shall be included the current profit or loss;
  transaction costs associated with the issue of equity or debt securities for the business combination shall
  be included in the initially recognized amounts of the equity or debt securities.
  √ Applicable □ Not applicable
       (1) Control judgment criteria
       The consolidation scope of consolidated financial statements is determined on the basis of control,
  including the Company and all of its subsidiaries. The term “control” refers to the power held by the
  Company over the invested enterprise, through which the Company is capable of enjoying variable
  return by participating in relevant activities of the invested enterprise, and having the ability to influence
  the amount of return via such control.
       (2) Consolidation procedure
       The Company regards the entire enterprise group as an accounting entity and prepares the
  consolidated financial statements in accordance with unified accounting policies to reflect the overall
  financial status, operating results and cash flow of the enterprise group. The influence of internal
  transactions between the Company and its subsidiaries and among the subsidiaries shall be offset. If
  internal transactions indicate that the relevant assets have suffered impairment losses, the losses shall be
  fully recognized. In preparing the consolidated financial statements, where the accounting policies and
  the accounting periods are inconsistent between the Company and its subsidiaries, the financial
  statements of the subsidiaries are adjusted in accordance with the accounting policies and accounting
  period of the Company.
       The owners’ equity, the net profit or loss and the comprehensive income attributable to minority
  shareholders of a subsidiary of the current period are presented separately under the owners’ equity in
  the consolidated balance sheet, the net profit and the total comprehensive income in the consolidated
  income statement respectively. Where losses attributable to the minority shareholders of a subsidiary
  exceed the minority shareholders’ interest entitled in the shareholders’ equity of the subsidiary at the
  beginning of the period, the excess is allocated against the minority equity.
       ① Addition of subsidiary or business
       During the Reporting Period, if there is an addition of subsidiary or business due to business
  combination under common control, the operating results and cash flows of the subsidiary or business
                                              Annual Report 2025
combination from the beginning of the current period to the end of the Reporting Period are included
into the consolidated financial statements, and at the same time, the amount at the end of the period of
the consolidated financial statements and the relevant items in the comparative statements are adjusted
as if the reporting entity after combination had been existing since the control of the ultimate controlling
party started.
      Where control over the investee under common control is obtained due to reasons such as increase
in investments, for equity investment held before the control over the acquiree is obtained, profit or loss,
other comprehensive income and other changes in net assets recognized from the later of the acquisition
of the original equity interest and the date when the acquirer and the acquiree were placed under
common control until the date of combination are offset against the retained profit at the beginning of
the period of the comparative statements or the profit or loss of the current period respectively.
      During the Reporting Period, if there is an addition of subsidiary or business due to business
combination not under common control, it shall be included in the consolidated financial statements on
the basis of the fair value of the identifiable assets, liabilities and contingent liabilities determined at the
date of purchase.
      Where control over the investee not under common control is obtained due to reasons such as
increase in investments, for the equity interest of the acquiree held before the date of purchase, the
Company remeasures the equity interest at its fair value as at the date of purchase, and any difference
between the fair value and its book value will be accounted for as investment gains of the current period.
Where equity interest of the acquiree held before the date of purchase is related to other comprehensive
income that can be reclassified into profit and loss in the future and other changes in owners’ equity
under the equity method, such equity interest is transferred to investment gains of the period to which
the date of purchase belongs.
      ② Disposal of subsidiaries
      A. General treatment for disposal
      When control over the investee is lost due to the disposal of part of the equity investment or other
reasons, the Company remeasures the remaining equity investment at fair value as at the date on which
control is lost. The difference between the sum of the consideration received from equity disposal and
the fair value of the remaining equity interest and the sum of the net assets of the subsidiary
proportionate to the original shareholding accumulated from the date of purchase or combination and
goodwill is included in investment gains of the period during which the control is lost. Other
comprehensive income that is related to the equity investment in the original subsidiary and can be
reclassified into profit and loss in the future and other changes in owners’ equity under the equity
method, are transferred to investment gains of the period during which the control is lost.
      B. Stepwise disposal of subsidiary
      In respect of stepwise disposal of equity investment in a subsidiary through multiple transactions
until control is lost, if the terms, conditions and economic effects of the transactions of equity investment
in the subsidiary satisfy one or more of the following conditions, the transactions are normally accounted
for as a basket of transactions:
      i. these transactions were entered into simultaneously or after considering the effects of each other;
      ii. these transactions constituted a complete commercial result as a whole;
      iii. one transaction was conditional upon at least one of the other transaction;
      iv. one transaction was not economical on its own but was economical when considering together
with other transactions.
      Where the transactions constitute a basket of transactions, the Company accounts for the
transactions as a transaction of disposal of a subsidiary until control is lost; the difference between the
amount received each time for disposal before control is lost and the net assets of such subsidiary
corresponding to the disposal of investment is recognized as other comprehensive income in the
consolidated financial statements, and is transferred to profit or loss of the period during which control is
lost upon loss of control.
      Where the transactions do not constitute a basket of transactions, before the loss of control, the
transactions are accounted for using the policies related to partial disposal of equity investment in a
subsidiary where no control is lost; when control is lost, they are accounted for using the general method
for disposal of subsidiaries.
      ③ Purchase of minority interests in subsidiary
      For the difference between the long-term equity investment newly acquired due to the purchase of
minority interests by the Company and the share of net assets of the subsidiary calculated according to
                                             Annual Report 2025
the new shareholding accumulated from the date of purchase (or date of combination), share premium of
the capital reserve in the consolidated balance sheet will be adjusted; where share premium of the capital
reserve is insufficient for the write-down, retained profit will be adjusted.
     ④ Partial disposal of equity investment in subsidiaries without losing control
     For the difference between the disposal consideration and the net assets of the subsidiary
corresponding to the disposal of long-term equity investment accumulated from the date of purchase or
date of combination, share premium of the capital reserve in the consolidated balance sheet will be
adjusted; where share premium of the capital reserve is insufficient for the write-down, retained profit
will be adjusted.
√ Applicable □ Not applicable
     Joint arrangements are divided into joint operations and joint ventures.
     A joint operation is a joint arrangement whereby the party to joint arrangement has rights to the
assets, and obligations for the liabilities related to the arrangement.
     The Company recognizes the following items in connection with the interest share in joint
operation:
     (1) Assets solely held by the Company, and assets jointly held under the Company’s shares;
     (2) Liabilities solely assumed by the Company, and liabilities jointly assumed under the Company’s
shares;
     (3) Revenues from the sale of the Company’s share in the output of joint operation;
     (4) Revenues from the sale of the output from the joint operation recognized under the Company’s
share;
     (5) Expenses solely incurred, and expenses incurred from the joint operation recognized under the
Company’s share.
     The Company’s investments in joint ventures are accounted for by equity method. For details,
please refer to Note “V (19) Long-term Equity Investment”.
     Cash refers to the cash on hand and deposits that are available for payment of the Company. Cash
equivalents refer to investments held by the Company that are short-term, highly liquid, readily
convertible to known amounts of cash and subject to an insignificant risk of changes in value.
√ Applicable □ Not applicable
     (1) Foreign currency transactions
     Foreign currency transactions shall be translated into RMB at the spot exchange rate on the day
when the transactions occur.
     Balance of monetary items in foreign currency as at the balance sheet date is translated at the spot
rates prevailing at the balance sheet date, and any translation difference arising therefrom is included in
profit or loss of the period except for the translation difference arising from dedicated borrowings in
foreign currency related to the construction of assets qualified for capitalization which is accounted for
under the principle of capitalization of borrowing expenses.
     (2) Translation of foreign currency financial statements
     Asset and liability items in the balance sheet are translated at the spot rates prevailing at the balance
sheet date. Owners’ equity items other than “undistributed profit” adopt the spot rates on the dates when
transactions are incurred. Income and expense items in the income statement are translated at the
approximate rates prevailing at the transaction dates, which are determined in a systematic and
reasonable way.
     On disposal of a foreign operation, the exchange differences in the financial statements in foreign
currency relating to that foreign operation are transferred from owners’ equity to profit or loss of the
period during which the disposal occurs.
                                             Annual Report 2025
√ Applicable □ Not applicable
     The Company recognizes a financial asset, financial liability or equity instrument when it becomes
a party to a financial instrument contract.
     (1) Classification of the financial instruments
     According to the business model of the Company’s management of financial assets and the
contractual cash flow characteristics of financial assets, financial assets are classified at the initial
recognition as: financial assets at amortized cost, financial assets at fair value through profit or loss, and
other financial assets at fair value through current profit or loss.
      The Company classifies financial assets that simultaneously meet the following conditions and are
not designated as financial assets at fair value through current profit or loss as financial assets measured
at amortized cost:
      - the business model aims at collecting contractual cash flows; and
      - contractual cash flows are only the payment made based on the principal and the interest of the
outstanding principal amount.
      The Company classifies financial assets that simultaneously meet the following conditions and are
not designated as financial assets at fair value through current profit or loss as financial assets (debt
instruments) at fair value through other comprehensive income:
      - the business model aims at both collecting contractual cash flows and selling the financial assets;
and
      - contractual cash flows are only the payment made based on the principal and the interest of the
outstanding principal amount.
      For non-trading equity instrument investments, the Company irrevocably designates them as
financial assets (equity instruments) at fair value through other comprehensive income at the time of
initial recognition. The designation is made on the basis of a single investment, and the related
investment meets the definition of an equity instrument from the issuer’s perspective.
      Except for the above-mentioned financial assets measured at amortized cost and at fair value
through other comprehensive income, the Company classifies all other financial assets as financial assets
at fair value through current profit or loss. At the time of initial recognition, if accounting mismatches
can be eliminated or significantly reduced, the Company can irrevocably designate financial assets that
should be classified as financial assets measured at amortized cost or at fair value through other
comprehensive income as financial assets at fair value through current profit or loss.
     Financial liabilities at the initial recognition are classified into financial liabilities at fair value
through current profit or loss, and financial liabilities at amortized cost.
     Financial liabilities at the initial recognition can be designated as financial liabilities at fair value
through current profit or loss if one of the following conditions can be met:
     ① Such designation can eliminate or significantly reduce accounting mismatches.
     ② According to the enterprise risk management or investment strategy stated in the official written
document, management and evaluation of the financial liabilities portfolio or financial assets and
financial liabilities portfolio are based on fair value which will be used as the basis for reporting to the
key management personnel.
     ③ The financial liabilities include embedded derivatives that need to be split separately.
     (2) Recognition and measurement of financial instruments
     ① Financial assets at amortized cost
     Financial assets at amortized cost include notes receivable, accounts receivable, other receivables,
long-term receivables and debt investment, which are initially measured at fair value, and related
transaction costs are included in the initial recognition amount. The accounts receivable of major
financing components and the accounts receivable of the Company’s decision not to consider the
financing component with the term less than one year are initially measured at the contract transaction
price.
                                              Annual Report 2025
      Interest calculated by the effective interest method during the period of holding is included in the
current profit or loss.
      Upon recovery or disposal, the difference between the acquisition price and the carrying amount of
the financial asset shall be included in the current profit or loss.
     ② Financial assets at fair value through other comprehensive income (debt instruments)
     Financial assets (debt instruments) at fair value through other comprehensive income, including
receivables financing and other debt investments, are initially measured at fair value, and related
transaction costs are included in the initial recognition amount. The financial assets are subsequently
measured at fair value. Changes in fair value are included in other comprehensive income, except for
interest, impairment losses or gains and exchange gain or loss calculated using the effective interest
method.
     When the recognition is terminated, the accumulated gain or loss previously included in other
comprehensive income is transferred from other comprehensive income and included in the current
profit or loss.
     ③ Financial assets (equity instruments) at fair value through other comprehensive income
     Financial assets (equity instruments) at fair value through other comprehensive income, including
other equity instruments, are initially measured at fair value, and related transaction costs are included in
the initial recognition amount. The financial assets are subsequently measured at fair value, and changes
in fair value are included in other comprehensive income. The dividends obtained are included in the
current profit and loss.
     When the recognition is terminated, the accumulated gain or loss previously included in other
comprehensive income is transferred from other comprehensive income and included in retained
earnings.
     ④ Financial assets at fair value through the current profit or loss
     Financial assets at fair value through the current profit or loss, including held-for-trading financial
assets, derivative financial assets and other non-current financial assets, are initially measured at fair
value, and related transaction costs are included in the current profit or loss. The financial assets are
subsequently measured at fair value, and changes in fair value are included in the current profit or loss.
      ⑤ Financial liabilities at fair value through current profit or loss
      Financial liabilities at fair value through current profit or loss, including held-for-trading financial
liabilities, and derivative financial liabilities, are initially measured at fair value, and related transaction
costs are included in the current profit or loss. The financial liabilities are subsequently measured at fair
value, and changes in fair value are included in the current profit or loss.
      When the recognition is terminated, the difference between the carrying amount and consideration
paid is included in the current profit and loss.
     ⑥ Financial liabilities at amortized cost
     Financial liabilities at amortized cost, including short-term borrowings, bills payable and accounts
payable, other payables, long-term borrowings, bonds payable, long-term payables, are initially
measured at fair value, and related transaction costs are included in the initial recognition amount.
     Interest calculated by the effective interest method during the period of holding is included in the
current profit or loss.
     When the recognition is terminated, the difference between consideration paid and the carrying
amount of the financial liabilities is included in the current profit and loss.
      (3) Recognition basis and measurement methods for derecognition of financial assets and transfer
of financial assets
      The Company derecognizes financial assets when one of the following conditions is met:
      - the contractual rights to collect the cash flows from the financial assets expire;
      - the financial assets have been transferred and nearly all the risks and rewards related to the
ownership of the financial assets have been transferred to the transferee; or
                                              Annual Report 2025
      - the financial assets have been transferred, and the Company have neither transferred nor retained
almost all risks and rewards related to the ownership of the financial assets, but did not retain control
over the financial assets.
      When the Company modifies or renegotiates a contract with a counterparty in a manner that
constitutes a material modification, the original financial asset is derecognized and a new financial asset
is recognized in accordance with the modified terms.
      Where a financial asset is transferred, it shall not be derecognized if the Company has retained
nearly all the risks and rewards related to the ownerships of the financial asset.
      The substance-over-form principle shall be adopted while making a judgment on whether the
transfer of financial assets satisfies the above conditions for derecognition.
      The transfer of financial assets could be classified into entire transfer and partial transfer. If the
transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the
two amounts below shall be included in the current profit or loss:
      ① The carrying amount of the financial assets transferred;
      ② The consideration received as a result of the transfer, plus the accumulative amount of the
change in fair value previously included into the owners’ equity (in cases where the transferred financial
assets are financial assets (debt instruments) at fair value through other comprehensive income).
      If the partial transfer of financial assets satisfies the conditions for derecognition, the overall
carrying amount of the transferred financial assets shall be apportioned according to their respective
relative fair value between the portion of derecognized part and the remaining part, and the difference
between the two amounts below shall be included in the current profit or loss:
      ① The carrying amount of the derecognized portion;
      ② The consideration of the derecognized portion, plus the corresponding derecognized portion of
accumulated change in fair value previously included in owners’ equity (in cases where the transferred
financial assets are financial assets (debt instruments) at fair value through other comprehensive
income).
      If the transfer of financial assets does not meet the conditions for derecognition, the financial assets
continue to be recognized and the consideration received is recognized as a financial liability.
      (4) Derecognition of financial liabilities
      When the current obligation under a financial liability is completely or partially discharged, the
whole or relevant portion of the liability is derecognized; if an agreement is entered into between the
Company and a creditor to replace the original financial liabilities with new financial liabilities with
substantially different terms, the original financial liabilities will be derecognized and the new financial
liabilities will be recognized.
      If the contract terms of the original financial liabilities are substantially amended in part or in full,
the original financial liabilities will be derecognized in full or in part, and the financial liabilities whose
terms have been amended will be recognized as a new financial liability.
      When financial liabilities are derecognized in full or in part, the difference between the carrying
amount of the financial liabilities derecognized and the consideration paid (including transferred
non-cash assets or new financial liability) will be included in the current profit or loss.
      Where the Company repurchases part of its financial liabilities, the carrying amount of such
financial liabilities will be allocated according to the relative fair value between the continuously
recognized part and derecognized part on the repurchase date. The difference between the carrying
amount of the derecognized portion of financial liabilities and the consideration paid (including
transferred non-cash assets or new financial liability) will be included in the current profit or loss.
     (5) Method of determining the fair values of financial assets and liabilities
     A financial instrument with an active market determines its fair value by quoted prices in an active
market. Financial instruments that do not exist in an active market shall use valuation techniques to
determine their fair value. During the valuation process, the Company uses valuation techniques
appropriate to the prevailing circumstances with the support of sufficient data and other information
available, selects inputs consistent with the characteristics of the assets or liabilities considered in the
transactions of relevant assets or liabilities by market participants, and gives priority to relevant
                                              Annual Report 2025
observable inputs. Unobservable inputs are used only when the relevant observable inputs are not
accessible or the access to which is impracticable.
     (6) Impairment test method and accounting treatment for impairment of financial instruments
     Based on anticipated credit losses, the Company carries out accounting treatments of impairment on
financial assets measured at amortized cost, financial assets (debt instruments) at fair value through
other comprehensive income and financial guarantee contracts.
     The Company considers reasonable and evidence-based information about past events, current
conditions, and forecasts of future economic conditions, and uses the risk of default as the weight to
calculate the probability-weighted amount of the present value of the difference between the contractual
cash flow receivable and the expected cash flow, and recognizes the expected credit loss.
      Regarding one-year the receivables and contract assets formed from transactions regulated by the
Accounting Standards for Business Enterprises No. 14 - Revenue, regardless of whether they contain
significant financing components or not, the Company always measures their loss reserves in accordance
with the amount of anticipated credit losses for the entire lifetime.
      Regarding receivables from leasing formed from transactions regulated by the Accounting
Standards for Business Enterprises No. 21 - Leases, the Company always measures their loss reserves in
accordance with the amount of anticipated credit losses for the entire lifetime.
      Regarding other financial instruments, the Company assesses at each balance sheet date their credit
risk changes since initial recognition.
      The Company compares the risk of default on the balance sheet date of a financial instrument with
the risk of default on the date of initial recognition to determine the relative change in the risk of default
during the expected life of the financial instrument so as to assess whether the credit risk of the financial
instrument has increased significantly since the initial recognition. Usually, after an overdue for more
than 30 days, the Company believes that the credit risk of the financial instrument has increased
significantly unless there is conclusive evidence that the credit risk of the financial instrument has not
increased significantly since the initial recognition.
      If the credit risk of financial instrument at the balance sheet date is low, the Company will believe
that the credit risk of the financial instrument has not increased significantly since the initial recognition.
      If the credit risk of the financial instruments has increased significantly since the initial recognition,
the Company will measure its loss provision based on the amount of anticipated credit loss for the
lifetime of the financial instruments; if the credit risk of the financial instruments has not significantly
increased since the initial recognition, the Company will measure its loss provision based on the amount
of anticipated credit loss for the financial instruments in the next 12 months. The increase or reversal of
the loss provision resulting therefrom is included in the current profit and loss as an impairment loss or
gain. Regarding financial assets at fair value through other comprehensive income (debt instruments),
the Company recognizes their loss reserves through other comprehensive income and includes
impairment losses or gains in the profit or loss for the current period, without reducing the book value of
such financial assets presented in the balance sheet.
     If there is any objective evidence indicating that an account receivable has incurred credit
impairment, the Company will make provision for impairment for that account receivable separately.
     Apart from the above-mentioned accounts receivable where bad debt provisions are accrued
separately, the Company divides other financial instruments into several portfolios according to their
credit risk characteristics, and determines the expected credit loss of each portfolio. Portfolios of notes
receivable, accounts receivable and other receivables for provision of expected credit losses and the
basis for the Company’s determination are as follows:
     ① Portfolios for provision of expected credit losses and the determination basis:
           Item                          Portfolio                            Determination basis
                              Commercial acceptance bills        The expected credit loss is measured with
Notes receivable              Finance company acceptance         the default risk exposure and the expected
                              bills                              credit loss rate for the entire lifetime based
Receivables financing         Bank acceptance bills              on status quo and the forecast of future
                              Related parties in the scope       economic conditions, by reference to
Accounts receivable                                              historical credit loss experience.
                              of the consolidated financial
                                            Annual Report 2025
                            statements
                            Account age analysis
                            Consolidated balance of
                            related-parties current          The expected credit loss is measured with
                            accounts - provisional           the default risk exposure and the expected
                            estimate of input tax            credit loss rate for the following 12 months
Other receivables           Related parties in the scope     or the entire lifetime based on status quo
                            of the consolidated financial    and the forecast of future economic
                            statements                       conditions, by reference to historical credit
                            Account age analysis             loss experience.
                            House lease deposit
    ② Parallel table of account age portfolios and expected credit loss rates
                                                                     Expected credit
                                             Expected credit loss       loss rate of      Expected credit
                                               rate of accounts          accounts           loss rate of
            Account age
                                                  receivable        receivable (direct    other accounts
                                            (traditional business)    office supplies        receivable
                                                                         business)
Within one year (0-6 months (inclusive))                                   0.50%
Within one year (6-12 months (inclusive))                                  5.00%
More than 3 years                                  100.00%                100.00%             100.00%
     If the Company no longer reasonably expects that the contractual cash flow of a financial asset can
be recovered in whole or in part, it will directly write down the book balance of the financial asset.
√ Applicable □ Not applicable
Categories of groups for which bad debt provisions are made on a grouping basis of credit risk
characteristics and the basis for determining them
√ Applicable □ Not applicable
     For details, please refer to “(6) Impairment test method and accounting treatment for impairment of
financial instruments” under Note V (11) Financial Instruments.
Aging methods for age-based recognition of a group of credit risk characteristics
□ Applicable √ Not applicable
Judgment criteria for bad debt provisions made on an individual basis
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Categories of groups for which bad debt provisions are made on a grouping basis of credit risk
characteristics and the basis for determining them
√ Applicable □ Not applicable
     For details, please refer to “(6) Impairment test method and accounting treatment for impairment of
financial instruments” under Note V (11) Financial Instruments.
                                             Annual Report 2025
Aging methods for age-based recognition of a group of credit risk characteristics
√ Applicable □ Not applicable
     For details, please refer to “(6) Impairment test method and accounting treatment for impairment of
financial instruments” under Note V (11) Financial Instruments.
Judgment criteria for bad debt provisions made on an individual basis
√ Applicable □ Not applicable
      The Company makes provision for impairment of accounts receivable separately based on
distinctive credit risk characteristics such as significantly deteriorated credit standing, low possibility of
further repayment and ongoing credit impairment of counterparties.
√ Applicable □ Not applicable
Categories of groups for which bad debt provisions are made on a grouping basis of credit risk
characteristics and the basis for determining them
√ Applicable □ Not applicable
     For details, please refer to “(6) Impairment test method and accounting treatment for impairment of
financial instruments” under Note V (11) Financial Instruments.
Aging methods for age-based recognition of a group of credit risk characteristics
□ Applicable √ Not applicable
Judgment criteria for bad debt provisions made on an individual basis
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Categories of groups for which bad debt provisions are made on a grouping basis of credit risk
characteristics and the basis for determining them
√ Applicable □ Not applicable
     For details, please refer to “(6) Impairment test method and accounting treatment for impairment of
financial instruments” under Note V (11) Financial Instruments.
Aging methods for age-based recognition of a group of credit risk characteristics
√ Applicable □ Not applicable
     For details, please refer to “(6) Impairment test method and accounting treatment for impairment of
financial instruments” under Note V (11) Financial Instruments.
Judgment criteria for bad debt provisions made on an individual basis
√ Applicable □ Not applicable
     The Company makes provision for impairment of other receivables separately based on distinctive
credit risk characteristics such as significantly deteriorated credit standing, low possibility of further
repayment and ongoing credit impairment of counterparties.
√ Applicable □ Not applicable
Inventory categories, issue valuation method, inventory system, amortization method for low value
consumables and packages
√ Applicable □ Not applicable
    (1) Classification and cost of inventories
    Inventories are classified into materials in transit, raw materials, turnover materials, goods-in-stock,
goods in production, goods in transit, commissioned processing materials and so forth.
                                            Annual Report 2025
     Inventories are initially measured at cost. The cost of inventories includes purchase cost, processing
cost and other expenditures incurred to bring inventory to its current location and state.
     (2) Valuation of inventory COGS
     Inventory COGS is valued using the weighted average method.
     (3) Inventory system
     The perpetual inventory system is adopted.
     (4) Amortization of low-value consumables and packaging materials
     ① Low-value consumables are amortized using the immediate write-off method
     ② Packaging materials are amortized using the immediate write-off method
Criteria for recognizing and providing for provision for decline in value of inventories
√ Applicable □ Not applicable
      At the balance sheet date, the inventories are measured according to the cost or the net realizable
value, whichever is lower. If the cost of inventories is higher than the net realizable value, the provision
for decline in value of inventories is made. The net realizable value refers, in the ordinary course of
business, to the amount after deducting the estimated cost of completion, estimated sale expense and
relevant taxes from the estimated sale price of inventories.
      Net realizable value of held-for-sale commodity stocks, such as finished goods, goods-in-stock, and
held-for-sale raw materials, during the normal course of production and operation, shall be determined
by their estimated selling price less the related selling expenses and taxes; the net realizable value of
material inventories, which need to be processed, during the normal course of production and operation,
shall be determined by the amount after deducting the estimated cost of completion, estimated selling
expenses and relevant taxes from the estimated selling price of finished goods; the net realizable value of
inventories held for execution of sales contracts or labor contracts shall be calculated on the ground of
the contracted price. If an enterprise holds more inventories than the quantity stipulated in the sales
contract, the net realizable value of the exceeding part shall be calculated on the ground of general
selling price.
      If the factors, which cause any value write-down of the inventories, have disappeared, thus causing
the inventories’ net realizable value to be higher than their carrying amount, the amount of write-down is
reversed from the provision for the loss on decline in value of inventories which has been made. The
reversed amount is included in the profits and losses of the current period.
Categories of groups and the basis for determining the allowance for decline in value of
inventories on a grouping basis, and the basis for determining the net realizable value of different
categories of inventories
□ Applicable √ Not applicable
Calculation method and basis for determining the net realizable value of each age group for the
purpose of recognizing the net realizable value of inventories based on the age of the inventories
□ Applicable √ Not applicable
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Details are provided as follows:
Recognition standards and accounting treatment for non-current assets or disposal groups held
for sale
√ Applicable □ Not applicable
                                            Annual Report 2025
     The Company classifies a non-current asset or disposal group as held for sale when the carrying
amount of the non-current asset or disposal group will be recovered through a sale transaction (including
non-monetary asset exchange with commercial substance) rather than through continuing use.
     The Company classifies non-current assets or disposal groups meeting all of the following
conditions as held for sale:
     (1) Assets or disposal groups can be sold immediately under current conditions based on the
practice of selling such assets or disposal groups in similar transactions;
     (2) Sales are highly likely to occur, that is, the Company has already made a resolution on a sale
plan and obtained a certain purchase commitment, and the sale is expected to be completed within one
year. The sale shall have been approved if the relevant regulations require the approval of the relevant or
regulatory authority governing the Company.
     If the carrying amount of non-current assets (excluding financial assets, deferred income tax assets
or assets formed by employee remuneration) or disposal groups meeting all of the following conditions
as held for sale is higher than the fair value minus the net amount of the sale costs, the carrying amount
will be written down to the net amount of fair value minus the sale costs, the amount written down will
be recognized as asset impairment losses and included in the profit or loss for the current period, and
provision for impairment of assets held for sale will be made.
Criteria for identification and presentation of discontinued operation
√ Applicable □ Not applicable
     Discontinued operation is a component that satisfies one of the following conditions and is
separately identifiable, and has been disposed of by the Company or is classified by the Company as
held for sale:
     (1) It represents a separate major line of business or geographical area of operations;
     (2) It is part of a single coordinated plan to dispose of a separate major line of business or
geographical area of operations; or
     (3) It is a subsidiary acquired exclusively with a view to resale.
     The profit and loss from continuing operations and the profit and loss from discontinued operations
are separately presented in the income statement. Operational gains and losses such as impairment losses
and reversal amounts and disposal gains and losses from discontinued operations are reported as gains
and losses from discontinued operations. For the discontinued operations reported in the current period,
the Company re-reports the information previously reported as profits and losses from continuing
operations as the profits and losses from discontinued operations for the comparable accounting period
in the current financial statements.
√ Applicable □ Not applicable
     (1) Joint control or significant influence criterion
     Joint control is the contractually agreed sharing of control of an arrangement, and exists only when
decisions about the relevant activities of the arrangement require the unanimous consent of the parties
sharing control. The Company together with the other joint venture parties can jointly control over the
investee, and are entitled to the right of the net assets of the investee who is joint venture of the
Company.
     The term “significant influences” refers to the power to participate in making decisions on the
financial and operating policies of the invested enterprise, but not to control or do joint control together
with other parties over the formulation of these policies. Where the investor can exercise significant
influence over the investee, the investee is an associate of the Company.
     (2) Determination of initial investment cost
     ① Long-term equity investments formed through business combination of entities
     For long-term equity investments in subsidiaries formed by business combination under common
control, the initial investment cost of long-term equity investments shall be determined based on share of
the book value of the owners’ equity of the acquiree in the consolidated financial statements of the
ultimate controlling party at the date of combination. The difference between the initial investment cost
of the long-term equity investment and the carrying value of the consideration paid is adjusted to the
equity premium in the capital reserve. If the capital premium in capital reserve is not sufficient to offset
                                              Annual Report 2025
the difference, the remaining balance is adjusted against retained earnings. In connection with imposing
control over the investee under joint control as a result of additional investment and other reasons, the
difference between the initial investment cost of the long-term equity investment recognized in
accordance with the above principles and the carrying amount of the long term equity investment before
the combination and the sum of carrying amount of newly paid consideration for additional shares
acquired on the date of combination is adjusted to equity premium. If the capital premium in capital
reserve is not sufficient to offset the difference, the remaining balance is adjusted against retained
earnings.
     For long-term equity investment in subsidiaries formed by business combination not under common
control, the cost of the combination ascertained on the date of acquisition shall be taken as the initial
investment cost of the long-term equity investments. In connection with imposing control over the
investee not under joint control as a result of additional investment and other reasons, the initial
investment cost is the sum of the carrying amount of the equity investment originally held and the newly
increased initial investment cost.
     ② Long-term equity investments acquired by means other than business combination
     The initial investment cost of a long-term equity investment obtained by the Company by cash
payment shall be the purchase cost paid actually.
     The initial investment cost of a long-term equity investment obtained by the Company by means of
issuance of equity securities shall be the fair value of the equity securities issued.
      (3) Subsequent measurement and recognition of profit or loss
      ① Long-term equity investment accounted for by cost method
      Long-term equity investment in subsidiaries of the Company is accounted for by cost method,
unless the investment meets the conditions for holding for sale. except for the actual consideration paid
for the acquisition of investment or the declared but not yet distributed cash dividends or profits which
are included in the consideration, investment gains are recognized as the Company’s shares of cash
dividends or profits declared by the investee.
      ② Long-term equity investment accounted for by equity method
      Long-term equity investments of associates and joint ventures are accounted for by equity method.
Where the initial investment cost of a long-term equity investment exceeds the investor’s interest in the
fair value of the investee’s identifiable net assets at the date of acquisition, no adjustment is made to the
initial investment cost of long-term equity investments; where the initial investment cost is less than the
investor’s interest in the fair value of the investee’s identifiable net assets at the date of acquisition, the
difference is included in the profits or losses of the current period, and the cost of the long-term equity
investment is adjusted simultaneously.
      The Company recognizes the investment income and other comprehensive income according to the
shares of net profit or loss and other comprehensive income realized by the investee which it shall be
entitled or shared respectively, and simultaneously makes adjustment to the carrying amount of
long-term equity investments; the carrying amount of long-term equity investments shall be reduced by
attributable share of the profit or cash dividends for distribution declared by the investee. In relation to
other changes of owners’ equity except for net profit and loss, other comprehensive income and profit
distributions of the investee (hereinafter referred to as “other changes in owners’ equity”), the carrying
amount of long-term equity investments shall be adjusted and included in the owners’ equity.
      When determining the amount of proportion of net profit or loss, other comprehensive income and
other changes in owners’ equity in the investee which it entitles, fair value of each identifiable assets of
the investee at the time when the investment is obtained shall be used as the basis, and adjustment shall
be made to the net profit and other comprehensive income of the investee according to the accounting
policies and accounting period of the Company.
      The unrealized profit or loss resulting from transactions between the Company and its associates or
joint ventures shall be offset in proportion to the investor’s equity interest of investee, based on which
investment income or loss shall be recognized. However, the situation that the assets invested or sold
constitute business is excluded. Any losses resulting from internal transactions, which are attributable to
impairment of assets, shall be fully recognized.
      The Company shall recognize the net losses of the joint ventures or associates until the book value
of the long-term equity investment and other long-term rights and interests which substantially form the
net investment made to the invested entity are reduced to zero, unless the joint ventures or associates
have the obligation to undertake extra losses. If the joint ventures or associates realize net profits in the
                                             Annual Report 2025
future, the Company resumes recognizing its share of profits after the share of profits makes up for the
share of unrecognized losses.
      ③ Disposal of long-term equity investments
      For disposal of long-term equity investment, the difference between the carrying amount and the
consideration actually received shall be included in the current profit or loss.
      For partial disposal of long-term equity investments accounted for by the equity method, if the
remaining equity is still accounted for by the equity method, the other comprehensive income calculated
and recognized by the original equity method shall be carried forward in corresponding proportion by
using the same basis as the investee used for direct disposal of relevant assets or liabilities. Other
changes in owners’ equity shall be carried forward to the profits or losses of the current period on a pro
rata basis.
      When the joint control or material influence over the investee is lost due to disposal of equity
investment and other reasons, other comprehensive income recognized in the original equity investment
due to the use of the equity method shall, when it is no longer calculated by the equity method, be
subject to the accounting treatment on the same basis as the investee used for direct disposal of relevant
assets or liabilities. Other changes in owners’ equity shall be all transferred into the profits or losses of
the current period when they are no longer calculated by the equity method.
      When the control over the investee is lost due to partial disposal of equity investment and other
reasons, the remaining equities after disposal shall be accounted for by equity method in preparing
individual financial statements provided that joint control or material influence over the investee can be
imposed, and shall be adjusted as if such remaining equities has been accounted for by the equity
method since they are obtained. The other comprehensive income recognized before the control over the
investee is obtained shall be carried forward in proportion by using the same basis as the investee used
for direct disposal of relevant assets or liabilities, and the other changes in owners’ equity calculated and
recognized using the equity method shall be carried forward to the profits or losses of the current period
on a pro rata basis. Where the remaining equities after disposal cannot impose joint control or material
influence over the investee, they shall be recognized as financial assets, and the difference between fair
value and the carrying amount on the date when control is lost shall be included in the profits or losses
of the current period. All other comprehensive income and other changes in owners’ equity recognized
before the control over the investee is obtained shall be carried forward.
      In respect of stepwise disposal of equity investment in a subsidiary through multiple transactions
until control is lost, where the transactions constitute a basket of transactions, the Company accounts for
the transactions as a transaction of disposal of a subsidiary until control is lost; however, the difference
between the amount received each time for disposal before control is lost and the carrying amount of
long-term equity investments corresponding to the disposal of equity is recognized as other
comprehensive income in the individual financial statements, and is transferred to the profits or losses of
the current period during which control is lost upon loss of control. Where the transactions do not
constitute a basket of transactions, each transaction shall be accounted for separately.
(1).If the cost measurement model is applied:
Depreciation or amortization method
     Investment real estate is properties held to earn rental income or for capital appreciation, or both,
and include leased land use rights, land use rights held for capital appreciation and subsequent transfer,
and buildings that are leased (including buildings constructed by the Company or developed for the
purpose of leasing and buildings under construction or development that are intended for leasing in the
future).
     Subsequent expenditures related to investment real estate are recognized in investment real estate
costs when it is probable that economic benefits will flow to the Company and the cost can be reliably
measured. Otherwise, the expenditures are recognized in the current profit and loss when incurred.
     The Company uses the cost measurement model to measure existing investment real estate. For
investment real estate measured using the cost model—buildings intended for leasing—the same
depreciation policy as that for the Company’s fixed assets is applied. Land use rights held for leasing are
amortized in accordance with the same policy as for intangible assets.
                                                     Annual Report 2025
        (1).Recognition conditions
        √ Applicable □ Not applicable
              Fixed assets are tangible assets that are held for use in the production or supply of goods or services,
        for rental to others, or for administrative purposes; and have a useful life of more than one accounting
        year. Fixed assets are recognized when they meet the following conditions:
              ① It is probable that the economic benefits associated with the fixed assets will flow to the
        enterprise;
              ② The cost of fixed assets can be reliably measured.
              A fixed asset is initially measured at its cost (and considering the impact of expected abandonment
        cost factors).
              Subsequent expenditures related to fixed assets are included in the cost of fixed assets when their
        related economic benefits are likely to flow in to the Company and their costs can be reliably measured;
        the book value of the replaced part is derecognized; all other subsequent expenditures are included in the
        profits or losses of the current period at the time of occurrence.
       (2).Method for depreciation
       √ Applicable □ Not applicable
             Fixed assets are depreciated by categories using the straight-line method, and the depreciation rates
       are determined by categories based upon their estimated useful lives and their estimated residual value.
       For fixed assets with provision for impairment accrued, the depreciation amount shall be determined
       according to the book value after deduction of the impairment provision and the remaining useful life in
       the future period. Where the parts of a fixed asset have different useful lives or cause economic benefits
       for the enterprise in different ways, different depreciation rates or depreciation methods shall be applied,
       and each part shall be depreciated separately.
             The methods for depreciation, useful lives of depreciation, residual value and annual depreciation
       rates of various categories of fixed assets are as follows:
                                         Method for              Useful lives of     Residual value          Annual
           Category
                                         depreciation          depreciation (year)         ratio         depreciation rate
Property and buildings             Straight-line method                20                   5%                4.75%
Machinery and equipment            Straight-line method                10                 5-10%              9.5-9%
Transportation vehicles            Straight-line method               4-10                0-10%               25-9%
Other equipment                    Straight-line method               2-10                0-10%             47.5-9.5%
        √ Applicable □ Not applicable
             Construction in progress is measured at the actual cost incurred. Actual cost includes construction
        cost, installation cost, borrowing expense qualified for capitalization, and other necessary expenditures
        incurred before the construction in progress reaches its intended use status. When the construction in
        progress reaches the intended use status, it shall be transferred to fixed assets and its depreciation shall
        be accrued from the next month. The standards and time point for carrying forward the Company’s
        construction in progress to fixed assets are as follows:
            Category                         Standards and time point for carrying forward them to fixed assets
                                  (1) The construction project and ancillary projects are substantially completed; (2) the
                                  construction project meets the predetermined design requirements and is accepted by
                                  units responsible for surveying, design, construction, supervision, etc.; (3) the
                                  construction project is accepted by fire department, land department, planning
  Houses, buildings and
                                  department or other external authorities if such acceptance is required; (4) if the
  decoration of fixed assets
                                  construction project has reached the predetermined state for use but the final account
                                  for completion has not been made, the project shall be carried forward to fixed assets
                                  at the value estimated according to the actual cost of the project from the date when it
                                  reaches the predetermined state for use.
  Machines and other              (1) The equipment and supporting facilities are installed; (2) the equipment can
  equipment that need to be maintain normal and stable operation for a period of time after commissioning; (3) the
  installed and                   production equipment can stably output qualified products in a period of time; (4) the
                                                 Annual Report 2025
        Category                      Standards and time point for carrying forward them to fixed assets
commissioned and other       equipment is accepted by asset management personnel and users.
long-term assets
     √ Applicable □ Not applicable
           (1) Criteria for recognition of capitalized borrowing costs
           For borrowing costs incurred by the Company that are directly attributable to the acquisition,
     construction or production of assets qualified for capitalization, the costs will be capitalized and
     included in the costs of the related assets. Other borrowing costs shall be recognized as expense in the
     period in which they incur and are included in the current profit or loss.
           Assets qualified for capitalization are assets (fixed assets, investment property, inventories, etc.)
     that necessarily take a substantial period of time for acquisition, construction or production to get ready
     for their intended use or sale.
          (2) Capitalization period of borrowing costs
          The capitalization period shall refer to the period between the commencement and the cessation of
     capitalization of borrowing costs, excluding the period in which capitalization of borrowing costs is
     temporarily suspended.
          Capitalization of borrowing costs begins when the following three conditions are fully satisfied:
          ① expenditures for the assets (including cash paid, transferred non-currency assets or expenditure
     for holding debt liability for the acquisition, construction or production of assets qualified for
     capitalization) have been incurred;
          ② borrowing costs have been incurred;
          ③ acquisition, construction or production that are necessary to enable the asset reach its intended
     usable or saleable condition have commenced.
          Capitalization of borrowing costs shall be suspended during periods in which the qualifying asset
     under acquisition and construction or production ready for the intended use or sale.
          (3) Suspension of capitalization period
          Capitalization of borrowing costs shall be suspended during periods in which the acquisition,
     construction or production of a qualifying asset is interrupted abnormally, when the interruption is for a
     continuous period of more than 3 months; if the interruption is a necessary step for making the
     qualifying asset under acquisition and construction or production ready for the intended use or sale, the
     capitalization of the borrowing costs shall continue. The borrowing costs incurred during such
     suspension period shall be recognized as the current profit or loss. When the acquisition and construction
     or production of the asset resumes, the capitalization of borrowing costs commences.
          (4) Calculation of capitalization rate and amount of borrowing costs
          For specific borrowings for the acquisition, construction or production of assets qualified for
     capitalization, the amount of borrowing costs for capitalization is determined through borrowing costs of
     the specific borrowings actually incurred in the current period minus the interest income earned on the
     unused borrowing loans as a deposit in the bank or as investment income earned from temporary
     investment.
          For general borrowings for the acquisition, construction or production of assets qualified for
     capitalization, the to-be-capitalized amount of interests on the general borrowings shall be calculated and
     determined by multiplying the weighted average asset disbursement of the part of the accumulative asset
     disbursements minus the specifically borrowed loans by the capitalization rate of the general borrowings
     used. The capitalization rate shall be calculated and determined according to the weighted average actual
     interest rate of the general borrowings.
          During the capitalization period, the exchange difference between the principal and interest of
     dedicated borrowings in foreign currency is capitalized and included in the cost of the assets qualified
     for capitalization. Exchange differences arising from the principal and interest of borrowings in foreign
     currency other than dedicated borrowings in foreign currency are included in the profits or losses of the
     current period.
                                              Annual Report 2025
  □ Applicable √ Not applicable
  □ Applicable √ Not applicable
  (1).Useful life and the basis for its determination, estimation, amortization method or review
       procedure
  √ Applicable □ Not applicable
       ① Valuation method of intangible assets
       A. Intangible assets are initially measured at cost upon acquisition by the Company;
       The costs of externally purchased intangible assets include the purchase price, relevant taxes and
  expenses paid, and other expenditures directly attributable to putting the asset into condition for its
  intended use.
       B. Subsequent measurement
       The useful life of intangible assets shall be analyzed and judged upon acquisition.
       As for intangible assets with finite useful life, they are amortized over the term in which economic
  benefits are brought to the enterprise; if the term in which economic benefits are brought to the
  enterprise by intangible assets cannot be estimated, the intangible assets shall be regarded as intangible
  assets with indefinite useful life, and shall not be amortized.
        ② Estimated useful lives for the intangible assets with finite useful life
                                                                           Residual
                                                          Amortization                  Basis for determining
          Item               Estimated useful lives                          value
                                                             method                      expected useful life
                                                                              ratio
                                                         Straight-line                Certificate of land use
Land use rights           50 years                                              0
                                                         method                       rights
Image identification                                     Straight-line
rights                                                   method
                                                         Straight-line                Expected years of
Software                  3 to 10 years                                         0
                                                         method                       benefit
                                                         Straight-line
Patent right              10 years                                              0     Patent right certificate
                                                         method
                                                         Straight-line                Expected years of
Others                    19 months to 120 months                               0
                                                         method                       benefit
        Note: land use rights newly acquired through the increase of capital by M&G Holdings (Group) Co.,
   Ltd. to the Company in 2010 are stated at valuation, and amortized at the remaining useful life.
  (2).      Scope of R&D expenditures and corresponding accounting treatment methods
  √ Applicable □ Not applicable
       ① Scope of R&D expenditures
       Expenditures incurred by the Company in the course of research and development include relevant
  employee remuneration for personnel engaged in R&D activities, consumed materials, related
  depreciation and amortization expenses, and other relevant expenditures, which are classified as follows:
       A. Remuneration and benefits
       Remuneration and benefits refer to the wages and salaries, basic endowment insurance premiums,
  basic medical insurance premiums, unemployment insurance premiums, work-related injury insurance
  premiums, maternity insurance premiums and housing provident funds for the Company’s R&D staff,
  and the labour costs of external R&D personnel.
       B. Inventory consumption
       Inventory consumption refers to the expenditures actually incurred by the Company in carrying out
  R&D activities, including the costs of directly consumed materials, fuel and power.
       C. Depreciation and amortisation expenses
                                              Annual Report 2025
     Depreciation and amortisation charges refer to the expenses incurred from the depreciation of
instruments and equipment used in R&D activities, and the expenses amortized for software, intellectual
property, and non-patented technologies (proprietary technologies, licenses, design and calculation
methods, etc.).
     D. Design and sample costs
     Design and sample costs refer to the costs incurred in the conception, development and
manufacturing of new products and new processes, and the design of processes, technical specifications,
procedures and operational characteristics, including the costs incurred in creative design activities for
the acquisition of innovative, creative and breakthrough products.
    ② Specific criteria for the division of research phase and development phase
    The expenses for internal research and development projects of the Company are divided into
expenses in the research phase and expenses in the development phase.
    Research phase: scheduled, innovative investigations and research activities to obtain and
understand scientific or technological knowledge.
    Development phase: apply the research outcomes or other knowledge to a plan or design prior to a
commercial production or use in order to produce new or essentially-improved materials, devices,
products, etc.
      ③ Specific criteria for capitalization at development phase
      Expenditure in the research phase is included in the profit or loss for the current period at the time
of occurrence. Expenses in the development phase are recognized as an intangible asset when all of the
following conditions are satisfied, otherwise are included in the current profit or loss:
      A. it is technically feasible to complete the intangible asset so that it will be available for use or
sale;
      B. there is an intention to complete the intangible asset for use or sale;
      C. the intangible asset can produce economic benefits, including there is evidence that the products
produced using the intangible asset has a market or the intangible asset itself has a market; if the
intangible asset is for internal use, there is evidence that there exists usage for the intangible asset;
      D. there is sufficient support in terms of technology, financial resources and other resources in
order to complete the development of the intangible asset, and there is capability to use or sell the
intangible asset;
      E. the expenses attributable to the development stage of the intangible asset can be measured
reliably.
      If it is impossible to distinguish the expenses in the research phase from the expenses in the
development phase, all the incurred research and development expenses shall be included in the current
profit or loss.
√ Applicable □ Not applicable
     Long-term assets, such as long-term equity investments, investment real estate measured at the cost
method, fixed assets, construction in progress, right-of-use assets, intangible assets with finite useful life,
and oil and gas assets are tested for impairment if there is any indication that an asset may be impaired at
the balance sheet date. If the result of the impairment test indicates that the recoverable amount of the
asset is less than its carrying amount, the difference shall be used to make impairment provision and an
impairment loss are recognized. The recoverable amount is the higher of the net amount of asset’s fair
value less costs to sell and the present value of the future cash flows expected to be derived from the
asset. Provision for asset impairment is determined and recognized on the individual asset basis. If it is
not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a
group of assets to which the asset belongs to is determined. An assets group is the smallest group of
assets that is able to generate cash inflow independently.
     Impairment test to goodwill formed by business combination, intangible assets with indefinite
useful life and intangible assets not ready to use shall be carried out at least at the end of each year,
regardless of whether there are any indications of impairment.
     When the Company carries out impairment test to goodwill, the Company shall, as of the
purchasing day, allocate on a reasonable basis the carrying amount of the goodwill formed by enterprise
                                              Annual Report 2025
merger to the relevant asset groups, or if there is a difficulty in allocation, the Company shall allocate it
to the portfolio of asset groups. Relevant asset groups or portfolio of asset groups refer to the asset
groups or portfolio of asset groups that can benefit from the synergistic effect of business combination.
     For the purpose of impairment test to the relevant asset groups or portfolio of asset groups
containing goodwill, if any evidence shows that the impairment of asset groups or portfolio of asset
groups related to goodwill exists, an impairment test will be made firstly on the asset groups or portfolio
of asset groups not containing goodwill, thus calculating the recoverable amount and comparing it with
the relevant carrying amount so as to recognize the corresponding impairment loss. Then the Company
will make an impairment test to the asset groups or portfolio of asset groups containing goodwill, and
compare their carrying value with their recoverable amount. Where the recoverable amount is lower than
the carrying value thereof, the amount of impairment loss is first deducted and allocated to the carrying
value of goodwill in the asset groups or portfolio of asset groups, and then the carrying value of other
assets other than goodwill in the asset groups or portfolio of asset groups is deducted according to the
percentages of the carrying value of such other assets. Once the above asset impairment loss is
recognized, it will not be reversed in the subsequent accounting periods.
√ Applicable □ Not applicable
     Long-term prepaid expenses are expenses which have occurred with amortization period over 1
year and shall be borne by the current period and subsequent periods.
     Amortization periods and amortization methods of various expenses are as follows:
                Item                       Amortization period            Amortization method
 Decoration fee                     3 to 5 years                      Expected years of benefit
 Others                             2 years                           Expected years of benefit
√ Applicable □ Not applicable
      The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between performance obligations and customer payments. The Company’s obligation to
transfer goods or provide services to customers for consideration received or receivable from customers
is presented as contract liabilities. Contract assets and contract liabilities under the same contract are
presented in net amounts.
(1).Accounting treatment of short-term benefits
√ Applicable □ Not applicable
     During the accounting period when employees provide service, the Company will recognize the
short-term benefits actually incurred as liabilities, and the liabilities will be included in the current profit
or loss or relevant costs of assets.
     The Company will pay social insurance and housing funds for the employees, and will make
provision of trade union funds and employee education costs in accordance with the requirements.
During the accounting period when employees provide service, the Company will determine relevant
amount of employee benefits in accordance with the required provision basis and provision ratios.
     The employee welfare expenses incurred by the Company are included in the current profit or loss
or related asset costs based on the actual amounts when they actually occur. Among them, non-monetary
benefits are measured at fair value.
(2).Accounting treatment of post-employment benefits
√ Applicable □ Not applicable
     ① Defined contribution scheme
     The Company will pay basic pension insurance and unemployment insurance in accordance with
the relevant provisions of the local government for the employees. During the accounting period when
employees provide service, the Company will calculate the amount payable which will be recognized as
                                             Annual Report 2025
liabilities in accordance with the local stipulated basis and proportions, and the liabilities will be
included in the current profit or loss or costs of related assets.
      ② Defined benefit scheme
      The welfare responsibilities generated from defined benefit scheme based on the formula
determined by projected unit credit method will be vested to the service period of employees and
included into the current profit or costs of related assets.
      The deficit or surplus generated from the present value of obligations of the defined benefit scheme
minus the fair value of the assets of defined benefit scheme is recognized as net liabilities or net assets.
When the defined benefit scheme has surplus, the Company will measure the net assets of the defined
benefit scheme at the lower of the surplus of defined benefit scheme and the upper limit of the assets.
      All obligations of the defined benefit plan, including the expected duty of payment within 12
months after the end of annual reporting period during which employees provide service, shall be
discounted based on the bond market yield of sovereign bond matching the term of obligations of the
defined benefit plan and currency or corporate bonds of high quality in the active market on the balance
sheet date.
      The service cost incurred by defined benefit scheme and the net interest of the net liabilities and net
assets of the defined benefit scheme will be included in the current profit or loss or costs of relevant
assets. The changes as a result of re-measurement of the net defined benefit liabilities or assets shall be
recognized in other comprehensive income and shall not be reversed to profit or loss at subsequent
accounting period. When the original defined benefit plan is terminated, amount originally included in
other comprehensive income shall be transferred to undistributed profit in the scope of equity.
      When the defined benefit scheme is settled, the gain or loss is confirmed based on the difference
between the present value of obligations and the settlement price of the defined benefit scheme as at the
balance sheet date.
(3).Accounting treatment of termination benefits
√ Applicable □ Not applicable
      Where the Company provides termination benefits to its employees, the employee benefits
liabilities resulting from termination benefits are recognized on the following date (whichever is earlier)
and are included in the current profit or loss: when the Company cannot unilaterally withdraw the
termination benefits provided due to the cancellation of the labor relationship with the employees or the
layoff proposal; or when the Company recognizes the costs or expenses of reorganization relating to
payment of termination benefits.
(4).Accounting treatment of other long-term employees’ benefits
□ Applicable √ Not applicable
√ Applicable □ Not applicable
     The Company shall recognize the obligations related to contingencies when all of the following
conditions are satisfied:
     (1) obligation is a present obligation of the Company;
     (2) it is probable that an outflow of economic benefits of the Company will be required to settle the
obligation; and
     (3) the amount of the obligation can be measured reliably.
     Estimated liabilities shall be initially measured at the best estimate of the expenses required to settle
the related present obligation.
     Factors pertaining to a contingency such as risk, uncertainties, and time value of money shall be
taken into account as a whole in getting the best estimate. Where the effect of the time value of money is
material, the best estimate shall be determined by discounting the related future cash outflow.
     Where the expenses required have a successive range and the possibilities of occurrence of each
result are the same in the range, the best estimate shall be determined according to the median value
within the range; in other cases, the best estimate shall be determined as below:
     • If contingencies involve a single item, the best estimate shall be determined according to the most
possible occurrence amount.
                                             Annual Report 2025
     • If contingencies involve multiple items, the best estimate shall be calculated and determined in
accordance with various possible outcomes and related possibilities.
     Where some or all of the expenses required to settle an estimated liability are expected to be
reimbursed by a third party, the reimbursement is separately recognized as an asset when it is virtually
certain that the reimbursement will be received. The amount recognized for the reimbursement is limited
to the carrying amount of the liability recognized.
     The Company reviews the carrying value of the estimated liabilities at the balance sheet date. If
there is any exact evidence indicating that the carrying value cannot really reflect the current best
estimate, the carrying value shall be adjusted in accordance with the current best estimate.
√ Applicable □ Not applicable
     Share-based payments are transactions that grant equity instruments or assume equity-instrument
based liabilities for receiving services rendered by employees or other parties. The Company’s
share-based payments included equity-settled share-based payments and cash-settled share-based
payments.
     (1) Equity-settled share-based payments and equity instruments
     Equity-settled share-based payments made in exchange for services rendered by employees are
measured at the fair value of equity instruments granted to employees. Share-based payment transactions
vested immediately after the date of grant shall be included in the relevant cost or expense based on the
fair value of equity instruments at the date of grant, and the capital reserve shall be increased
accordingly. For share-based payment transactions vested only when the services during the waiting
period are completed or the specified performance conditions are satisfied after the grant, the Company
shall, at each balance sheet date during the waiting period, include the services obtained during the
period in relevant cost or expense at the fair value of the date of grant, according to the best estimate of
the number of vested equity instruments, and the capital reserve shall be increased accordingly.
     If the terms of the equity-settled share-based payments are amended, the Company shall recognize
the services received at least based on the situation before the amendment is made. In addition, any
amendment resulting in the increase of the fair value of the equity instrument granted or changes that are
beneficial to employees on the amendment date, will be recognized as an increase in the service
received.
     During the waiting period, if the granted equity instrument is cancelled, the Company will accelerate
the vesting thereof, immediately include the remaining amount that should be recognized in the waiting
period in the current profit or loss, and recognize the capital reserve. However, if new equity instruments
are vested and they are verified at the vesting date of new equity instrument as alternatives vested to cancel
equity instruments, the treatment on the new equity instrument is in conformity with the modified
treatment on disposal of equity instrument.
      (2) Cash-settled share-based payments and equity instruments
      Cash-settled share-based payments are measured at the fair value of the liabilities calculated and
determined on the basis of shares or other equity instruments undertaken by the Company. Share-based
payment transactions vested immediately after the date of grant shall be included in the relevant cost or
expense based on the fair value of liabilities undertook at the date of grant, and the liabilities shall be
increased accordingly. For share-based payment transactions vested only when the services during the
waiting period are completed or the specified performance conditions are satisfied after the grant, the
Company shall include the services obtained during the period in relevant cost or expense at the fair
value of the liabilities undertook by the Company based on the best estimate of the vesting situation, and
the liabilities shall be included accordingly. At each balance sheet date before the settlement and the
settlement date of relevant liabilities, the fair value of the liabilities is remeasured, and its changes are
included in the current profit or loss.
      If the Company modifies the terms and conditions of a cash-settled share-based payment agreement
so that it becomes an equity-settled share-based payment, on the date of modification (regardless of
whether it occurs within or after the vesting period), the Company measures the equity-settled
share-based payment at the fair value on the grant date of the equity instrument, and recognizes the
services acquired in capital reserve, and derecognizes the liability recognized for the cash-settled
share-based payment on the date of modification, with the difference between the two being recognized
                                           Annual Report 2025
in profit or loss for the period. If the vesting period is lengthened or shortened as a result of the
modification, the Company accounts for the modification in accordance with the modified vesting
period.
□ Applicable √ Not applicable
(1). Accounting policies used in recognition and measurement of revenue by type of business
√ Applicable □ Not applicable
      ① Accounting policies used in recognition and measurement of revenue
      The Company recognizes revenue when its performance obligations in the contract are fulfilled,
that is, the control over the relevant goods or services is obtained by the customer. Obtaining control
over related goods or services means being able to lead the use of the goods or services and obtain
almost all of the economic benefits from the goods or services.
      If the contract contains two or more performance obligations, the Company will, at the date of the
contract, allocate the transaction price to each individual performance obligation in accordance with the
relative proportion of the stand-alone selling price of the goods or services promised by each individual
performance obligation. The Company measures revenue based on the transaction price allocated to each
individual performance obligation.
      Transaction price refers to the amount of consideration that the Company expects to be entitled to
receive due to the transfer of goods or services to customers, excluding amounts collected on behalf of
third parties and amounts expected to be returned to customers. The Company determines the transaction
price in accordance with the terms of the contract and combined with its past customary practices. When
determining the transaction price, the Company considers the impact of variable consideration, major
financing components in the contract, non-cash consideration, consideration payable to customers and
other factors. The Company determines the transaction price that includes variable consideration at an
amount that does not exceed the amount of accumulated recognized revenue that is unlikely to be
significantly reversed when the relevant uncertainty is eliminated. If there is a major financing
component in the contract, the Company determines the transaction price based on the amount payable
in cash when the customer obtains control over the goods or services, and amortizes the difference
between the transaction price and the contract consideration with the actual interest rate method during
the contract period.
      The performance obligation is fulfilled during a certain period of time if one of the following
conditions is satisfied, otherwise, the performance obligation is fulfilled at a certain point in time:
      • the customer obtains and consumes the economic benefits brought by the Company’s performance
at the same time as the Company’s performance.
      • the customer can control the products under construction during the Company’s performance.
      • the goods produced during the Company’s performance have irreplaceable uses, and the Company
has the right to collect payment for the cumulative performance part that has been completed so far
during the entire contract period.
      For performance obligations performed within a certain period of time, the Company recognizes
revenue in accordance with the performance progress during that period, except where the performance
progress cannot be reasonably determined. The Company considers the nature of the goods or services
and adopts the output method or the input method to determine the performance progress. When the
performance progress cannot be reasonably determined, and the cost incurred is expected to be
compensated, the Company recognizes the revenue according to the amount of the cost incurred until the
performance progress can be reasonably determined.
      For performance obligations performed at a certain point in time, the Company recognizes revenue
at the point when the customer obtains control over the relevant goods or services. When judging
whether the customer has obtained control over goods or services, the Company considers the following
signs:
      • the Company has the current right to receive payment for the goods or services, that is, the
customer has the current payment obligation for the goods or services;
                                            Annual Report 2025
     • the Company has transferred the legal ownership of the goods to the customer, that is, the
customer has the legal ownership of the goods;
     • the company has transferred the goods to the customer in kind, that is, the customer has taken
possession of the goods in kind;
     • the company has transferred the main risks and rewards of the ownership of the goods to the
customer, that is, the customer has obtained the main risks and rewards of the ownership of the goods;
     • the customer has accepted the goods or services.
     The Company determines whether the Company’s status is that of a principal or agent when
engaging in a transaction based on whether it has control over the goods or services prior to transferring
them to the customer. If the Company is able to control the goods or services before transferring them to
the customer, the Company is the principal responsible party and recognizes revenue based on the total
consideration received or receivable. Otherwise, the Company shall recognize revenue as an agent based
on the amount of commissions or fees to which it is expected to be entitled.
     ② Disclosure of specific revenue recognition methods and measurement methods by the type of
business
     A. Sale contract: The sale contract between the Company and its customers usually contains only
the performance obligation for the transfer of goods. The Company usually takes into account the
following factors in order to obtain the current right of collection of goods, the transfer of primary risks
and rewards on the ownership of the goods, the transfer of legal ownership of the goods, the transfer of
physical assets of the goods and the customer’s acceptance of the goods as the time point of revenue
recognition.
     B. Supply chain service: The provision of integrated logistics and supply chain services is a
performance obligation performed at a certain time point, and revenue is recognized when the
corresponding services have been provided, the payment has been collected or the right to collect
payment has been obtained, and the corresponding economic benefits are likely to flow in.
     C. Others (including franchise management fee, hardware and software and material income):
Revenue is recognized at the time point when the customer obtains control over the corresponding goods
or services.
(2). Different revenue recognition and measurement methods for the same type of business
    adopting different business models
□ Applicable √ Not applicable
√ Applicable □ Not applicable
      Contract cost includes contract performance cost and contract acquisition cost.
      If the cost incurred by the Company for the performance of the contract does not fall within the
scope of relevant standards and regulations for inventories, fixed assets or intangible assets, it shall be
recognized as an asset as the contract performance cost when the following conditions are met:
      • the cost is directly related to a current or expected contract;
      • the cost increases the Company’s future resources for fulfilling its performance obligations;
      • the cost is expected to be recovered.
      If the incremental cost incurred by the Company to obtain the contract is expected to be recovered,
it will be recognized as an asset as the cost of obtaining the contract.
      Assets related to contract costs are amortized on the same basis as the revenue recognition of goods
or services related to the assets; however, if the amortization period of cost of obtaining the contract
does not exceed one year, the Company will include it in the current profit or loss when it occurs.
      If the carrying value of the assets related to the contract cost is higher than the difference between
the following two items, the Company will make provision for impairment of the excess part and
recognize it as an asset impairment loss:
      (1) the remaining consideration expected to be obtained due to the transfer of goods or services
related to the assets; and
      (2) the costs expected to be incurred due to the transfer of the related goods or services.
      If the depreciation factors in the previous period change later, causing the aforementioned
difference to be higher than the carrying value of the assets, the Company will reverse the
                                             Annual Report 2025
previously-made provision for impairment and include it in the current profit or loss, but the carrying
value of the assets after the reversal cannot exceed the carrying value of the assets at the date of reversal
under the assumption that no provision is made for the impairment.
√ Applicable □ Not applicable
     (1) Types
     Government subsidies are monetary or non-monetary assets obtained by the Company from the
government free of charge. They are divided into government subsidies related to assets and government
subsidies related to income.
     Government subsidies related to assets refer to government subsidies obtained by the Company that
are used to purchase or construct or otherwise form long-term assets. Government subsidies related to
income refer to the government subsidies other than government subsidies related to assets.
      The specific standards for the Company to classify government subsidies into government subsidies
related to assets are as follows:
      If obtained subsidies are used to purchase, construct or otherwise form fixed assets, intangible
assets and other long-term assets as expressly stipulated in government documents, then such subsidies
are deemed as asset-related government subsidies.
      The specific standards for the Company to classify government subsidies into income-related
government subsidies are as follows:
      If the government subsidies (excluding asset-related subsidies) are used to compensate relevant
costs or losses of the Company that have been already incurred or to be incurred in subsequent periods,
then such subsidies are deemed as income-related government subsidies.
      Where there is no express regulation on the object of subsidies in government documents, then the
Company will classify the government subsidies as assets-related or income-related depending on the
specific purpose that the subsidies are used for.
     (2) Timing of recognition
     Government subsidies are recognized when the Company can meet the conditions attached and can
receive them.
      (3) Accounting treatment
      Government subsidies related to assets shall offset the carrying amount of relevant assets or be
recognized as deferred income. If it is recognized as deferred income, it shall be included in the current
profit and loss in a reasonable and systematic way within the useful life of the relevant assets (if it is
related to the daily activities of the Company, it shall be included in other income; otherwise, it shall be
included in the non-operating income);
      Government subsidies related to income that are used for compensation for the relevant costs or
losses of the Company in subsequent periods are recognized as deferred income and are included in the
current profit or loss in the period in which the relevant costs, expenses or losses are recognized (if they
are related to the daily activities of the Company, they shall be included in other income; otherwise, they
shall be included in the non-operating income) or offset the relevant costs or losses; Government
subsidies related to income that are used for compensation for the relevant costs or losses that the
Company has already incurred shall be directly included in the current profit or loss (if they are related
to the daily activities of the Company, they shall be included in other income; otherwise, they shall be
included in the non-operating income) or offset the relevant costs or losses.
      The Company’s policy-based concessional loans are classified into the following two conditions
and are accounted for respectively:
      ① If the lending bank provides loans to the Company at a policy-based preferential interest rate
after the Ministry of Finance allocates the interest-grant funds to the lending bank, the actual borrowing
amount received is recognized as the entry value of the borrowing and the relevant borrowing expenses
are measured in accordance with the principal amount of the borrowing and policy-based preferential
interest rate.
      ② When the government directly distributes the interest-grant funds to the Company, the
corresponding discount will offset the relevant borrowing costs.
                                             Annual Report 2025
√ Applicable □ Not applicable
      Income taxes include current income tax and deferred income tax. Except for income tax arising
from business combination and transactions or events that are directly included in owners’ equity
(including other comprehensive income), the Company includes current income tax and deferred income
tax in the current profit or loss.
      Deferred income tax assets and deferred income tax liabilities are calculated and recognized based
on the difference (temporary difference) between the tax base of assets and liabilities and their carrying
value.
      Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be
available against which deductible temporary differences can be offset. For deductible losses and tax
credits that can be reversed in the future period, deferred tax assets shall be recognized to the extent that
it is probable that taxable profit will be available in the future to offset the deductible losses and tax
credits.
      Save as the exceptions, deferred tax liabilities shall be recognized for the taxable temporary
difference.
      The exceptions for not recognizing deferred tax assets and liabilities include:
      • the initial recognition of the goodwill;
      • other transactions or matters other than enterprise merger in which neither profit nor taxable
income (or deductible loss) will be affected when transactions occur, and the initial recognition of assets
and liabilities does not result in taxable temporary differences and deductible temporary differences of
equal amount
      Deferred income tax liabilities are recognized for all taxable temporary differences arising from the
investments in subsidiaries, joint ventures and associates, except to the extent that both of the following
conditions are satisfied: the Company is able to control the timing of the reversal of the temporary
differences; and it is likely that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognized for all deductible temporary differences associated with
investments in subsidiaries, joint ventures and associates if all of the following conditions are satisfied:
It is likely that the deductible temporary difference will reverse in the foreseeable future and it is likely
that taxable profit in the future will be available against which the deductible temporary difference can
be offset.
      At the balance sheet date, deferred income tax assets and liabilities are measured at tax rates
expected to be applied to the period when the assets are recovered or the liabilities are settled according
to the tax law.
      At the balance sheet date, the Company reviews the carrying value of deferred income tax assets.
The carrying value of the deferred income tax assets are reduced if it is unlikely to obtain sufficient
taxable income to offset the benefit of the deferred income tax assets in the future. When it is likely that
sufficient taxable income will be available, the amount of write-down is reversed.
√ Applicable □ Not applicable
     A lease is a contract whereby the lessor conveys to the lessee the right to use an asset in exchange
for consideration. On the commencement date of the contract, the Company assesses whether the
contract is or contains a lease. A contract is, or contains, a lease if one party to the contract gives the
right to control the use of an identified asset or identified assets for a period of time in exchange for
consideration.
     If the contract contains multiple separate leases simultaneously, the Company will split the contract
and conduct separate accounting treatment for each separate lease. If the contract contains lease
components and non-lease components simultaneously, the lessee and the lessor will split the lease
components and the non-lease components.
Judgmental basis and accounting treatment of short-term leases and leases of low-value assets for
which a simplified treatment is adopted as the lessee
√ Applicable □ Not applicable
    The Company as the lessee
                                             Annual Report 2025
      (1) Right-of-use assets
      At the commencement date of the lease term, the Company recognizes right-of-use assets for leases
other than short-term leases and low-value asset leases. Right-of-use assets are initially measured at cost.
The cost comprises:
      • the amount of the initial measurement of the lease liability;
      • any lease payments made at or before the commencement date of the lease term, less any lease
incentives received;
      • any initial direct costs incurred by the Company; and
      • an estimate of costs to be incurred by the Company in dismantling and removing the leased asset,
restoring the site on which it is located or restoring the leased asset to the condition required by the
terms and conditions of the lease, unless those costs are incurred to produce inventories.
      The Company subsequently adopts the straight-line method to depreciate the right-of-use assets. If
it can be reasonably determined that the ownership of the leased asset can be acquired upon the expiry of
the lease term, depreciation will be prepared during the remaining useful life of the leased asset;
otherwise, depreciation will be prepared during the lease term or the remaining useful life of the leased
asset whichever is shorter.
      The Company determines whether the right-of-use asset has been impaired in accordance with the
principles described in Note “V (27) Impairment of long-term assets”, and performs accounting
treatment for the identified impairment losses.
     (2) Lease liabilities
     At the commencement date of the lease term, the Company recognizes lease liabilities for leases
other than short-term leases and low-value asset leases. Lease liabilities are initially measured at the
present value of the lease payments that are not paid. Lease payments comprise:
     • fixed payments (including substantial fixed payments), less any lease incentives received;
     • variable lease payments that depend on an index or a rate;
     • amounts expected to be payable by the lessee under residual value guarantees provided by the
Company;
     • the exercise price of a purchase option if the Company is reasonably certain to exercise that option;
and
     • Payments for exercising an option to terminate the lease if the lease term reflects the lessee
exercising an option to terminate the lease.
     The Company uses the interest rate implicit in lease as the discount rate, but if the interest rate
implicit in lease cannot be reasonably determined, the Company’s incremental borrowing rate is used as
the discount rate.
     The Company calculates the interest expense of the lease liability in each period of the lease term
according to the fixed periodic interest rate, and includes it in the current profit and loss or the related
asset costs.
     Variable lease payments excluded in the measurement of lease liabilities are included in the current
profit and loss or the related asset costs when they are actually incurred.
     After the commencement date of the lease term, the Company re-measures the lease liabilities and
adjusts the corresponding right-of-use assets under the following circumstances. If the carrying amount
of the right-of-use assets is reduced to zero, but the lease liabilities still need to be further reduced, the
difference is included in the current profit and loss:
     • when there is a change in the assessment result of an option to purchase, renew or terminate the
lease, or the actual exercise of the aforementioned options is inconsistent with the original assessment
result, the Company remeasures the lease liabilities at the present value calculated according to the
changed lease payments and the revised discount rate; and
     • When there is a change in the substantial fixed payments, a change in the amounts expected to be
payable under a residual value guarantee, or a change in an index or a rate used to determine the lease
payments, the Company remeasures the lease liabilities at the present value calculated according to the
changed lease payments and the unchanged discount rate. However, the present value is calculated
according to the revised discount rate if the change in lease payments is caused by a change in floating
interest rates.
     (3) Short-term leases and low-value asset leases
                                             Annual Report 2025
     The Company chooses not to recognize right-of-use assets and lease liabilities for short-term leases
and low-value asset leases, and includes relevant lease payments in the current profit and loss or related
asset costs over the lease term on straight-line basis. A short-term lease is a lease that, at the
commencement date, has a lease term of 12 months or less and does not contain a purchase option. A
low-value asset lease is a lease with a lower value when a single leased asset is a brand-new asset. If the
Company subleases or expects to sublease a leased asset, the original lease is not a low-value asset lease.
      (4) Lease modifications
      The Company accounts for a lease modification as a separate lease if the following conditions are
satisfied simultaneously:
      • the lease modification increases the lease scope by adding the right to use one or more lease assets;
and
      • the consideration for the lease increases by an amount commensurate with the stand-alone price
for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the
circumstances of the particular contract.
      When a lease modification is not treated as a separate lease, at the effective date of the lease
modification, the Company re-allocates the consideration of the contract after the change, re-determines
the lease term, and remeasures the lease liability at the present value calculated according to the changed
lease payments and the revised discount rate.
      When a lease modification decreases the lease scope or shortens the lease term, the Company
reduces the carrying value of the right-of-use asset and includes the relevant gain or loss resulting from
partial of full termination of the lease in the current profit and loss. When other lease modifications
result in re-measurement of the lease liability, the Company adjusts the carrying value of the right-of-use
asset accordingly.
     (5) Sale and leaseback
     The Company assesses and determines whether the transfer of the asset in the sale and leaseback
transactions is a sale according to Note “V (34) Income”.
     When the transfer of the asset in the sale and leaseback transactions is a sale, the Company as the
lessor measures the right-of-use asset arising from the sale and leaseback at the proportion of the
previous carrying amount of the asset that relates to the right of use retained through leaseback, and
recognizes the relevant gain or loss at the amount that relates to the rights transferred to the lessor.
     For details on the subsequent measurement of right-of-use assets and lease liabilities and lease
modifications after the commencement date of the lease term, please refer to “1. The Company as the
lessee” under Note “V (38) Lease”. When subsequently measuring the lease liabilities arising from a sale
and leaseback, the Company determines the lease payments or the modified lease payments in a manner
that does not result in the recognition of gains or losses related to the right-of-use acquired through the
leaseback.
     When the transfer of the asset in the sale and leaseback transactions is not a sale, the Company as
the lessor continues to recognize the transferred assets and also recognizes a financial liability equal to
the transfer income. Details of accounting treatment of financial liabilities are set out in Note “V (11)
Financial Instruments”.
Criteria for classification and accounting treatment of leases as the lessor
√ Applicable □ Not applicable
      At the commencement date of the lease term, the Company classifies lease into finance lease and
operating lease. Finance lease refers to a lease that has transferred in substance all the risks and rewards
related to the ownership of an asset, regardless of whether the ownership is ultimately transferred.
Operating lease refers to a lease other than a finance lease. When the Company acts as a sublease lessor,
it classifies the sublease based on the right-of-use asset arising from the original lease.
      (1) Accounting treatment of operating leases
      Lease receipts from operating leases are recognized as rental income over the lease term on
straight-line basis. The Company capitalizes the initial direct expenses incurred in relation to operating
leases, and amortizes and includes them in the current profit and loss on the same basis as the rental
income is recognized during the lease term. Variable lease payments excluded in lease receipts are
included in the current profit and loss when they are actually incurred. In case of any operating lease
                                             Annual Report 2025
modification, the Company will account for it as a new lease from the effective date of the modification,
and regard the lease advance or lease receivable related to the lease before the modification as the receipt
from the new lease.
      (2) Accounting treatment of finance leases
      At the commencement of the lease, the Company recognizes a finance lease receivable for a finance
lease, and derecognizes finance lease assets. At the initial measurement of the finance lease receivable,
the Company regards the net investment in the lease as the entry value of the finance lease receivable.
Net investment in the lease is the sum of the following items discounted at the interest rate implicit in
lease: any unguaranteed residual value; and any lease receipt which is received at the commencement of
the lease.
      The Company calculates and recognizes the interest income over the lease term at the fixed
periodic interest rate. Derecognition and impairment of finance lease receivables are subject to the
accounting treatment in accordance with Note “V (11) Financial Instruments”.
      Variable lease payments excluded in net investment in the lease are included in measurement the
current profit and loss when they are actually incurred.
      The Company accounts for a finance lease modification as a separate lease if the following
conditions are satisfied simultaneously:
      • the modification increases the lease scope by adding the right to use one or more lease assets; and
      • the consideration for the lease increases by an amount commensurate with the stand-alone price
for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the
circumstances of the particular contract.
      When a finance lease modification is not treated as a separate lease, the Company accounts for the
modified lease as follows:
      • if the lease would have been classified as an operating lease had the modification been in effect at
the commencement date, the Company accounts for the lease modification as a new lease from the
effective date of the modification, and measures the carrying value of the lease asset as the net
investment in the lease immediately before the effective date of the lease modification.
      • if the lease would have been classified as a finance lease had the modification been in effect at the
commencement date, the Company accounts for the lease modification according to the policies for
modification or renegotiation of contracts in Note “V (11) Financial Instruments”.
     (3) Sale and leaseback transactions
     The Company assesses and determines whether the transfer of the asset in the sale and leaseback
transactions is a sale according to Note “V (34) Income”.
     When the transfer of the asset in the sale and leaseback transactions is a sale, the Company as the
lessor accounts for the purchase of the asset, and accounts for the lease of the asset in accordance with
the aforementioned policy in “2. The Company as the lessor”; When the transfer of the asset in the sale
and leaseback transactions is not a sale, the Company as the lessor does not recognize the transferred
asset, but recognizes a financial asset equal to the transfer income. Details of accounting treatment of
financial assets are set out in Note “V (11) Financial Instruments”.
√ Applicable □ Not applicable
      Hedge accounting
      (1) Classification of hedging
      ① Fair value hedge is a hedge of the exposure to changes in fair value of a recognized asset or
liability or an unrecognized firm commitment (except for foreign exchange risk).
      ② Cash flow hedge is a hedge of the exposure to changes in cash flows. Such changes in cash
flows mainly come from a specific type of risk related to a recognized asset or liability or an expected
transaction that is likely to occur, or the foreign exchange risk included in an unrecognized firm
commitment.
      ③ Hedge of net investment in an overseas operation is a hedge of the foreign exchange exposure
arising from net investment in an overseas operation. Net investment in an overseas operation refers to
an enterprise’s equity proportion in the net assets in an overseas operation.
                                             Annual Report 2025
      (2) Designation of hedging relationship and confirmation of hedging effectiveness
      At the commencement of the hedging relationship, the Company shall specify the hedging
relationship formally and prepare a formal written document on the hedging relationship, risk
management objectives and the strategies of hedging. This document shall at least specify the contents
and number of the hedging instruments, the nature and number of the hedged items, the nature of the
hedged risk, the type of hedge and the evaluation of the Company on the effectiveness of the hedging
instruments. Hedging effectiveness refers to the extent that the changes in the fair value or cash flow of a
hedging instrument may offset the changes resulted from the hedging risks in the fair value or cash flow
of a hedged item.
      The Company shall continuously evaluate the hedging effectiveness to determine whether the
hedging meets the requirements on effectiveness for using hedging accounting within the accounting
period when the hedging relationship is specified. If the hedging fails to meet the requirements, the use
of hedging relationship shall be terminated.
      The use of hedge accounting shall meet the following requirements for the hedging effectiveness:
      ① There is an economic relationship between the hedged item and the hedging instrument.
      ② In the value change caused by the economic relationship between the hedged item and the
hedging instrument, the influence of credit risk is not dominant.
      ③ An appropriate hedging ratio is adopted, and this ratio will not form an imbalance in the relative
weight of the hedged item and the hedging instrument, thereby generating accounting results that are
inconsistent with the hedge accounting objectives. If the hedging ratio is no longer appropriate, but the
hedging risk management objectives have not changed, the number of hedged items or hedging
instruments shall be adjusted so that the hedging ratio meets the requirements on effectiveness again.
      (3) Accounting treatment method of hedge
      ① Fair value hedge
      Changes in the fair value of hedging derivatives are included in the current profit and loss. Changes
in the fair value of a hedged item due to hedging risk are included in the current profit and loss, while
adjusting the book value of the hedged item.
      For fair value hedges related to financial instruments measured at amortized cost, adjustments to
the carrying value of the hedged item are amortized in the remaining period between the adjustment date
and the maturity date and are included in the current profit and loss. Amortization carried out in
accordance with the effective interest rate method can begin immediately after the adjustment of the
carrying value, and shall not be later than the adjustment made due to the changes in the fair values
caused by the hedging risk after the hedged item is terminated.
      If the hedged item is derecognized, the un-amortized fair value is recognized as current profit or
loss.
      If the hedged item is an unrecognized firm commitment, the accumulated changes in the fair value
of the firm commitment caused due to the hedged risk is recognized as an asset or liability, and the
related gains or losses are included in the current profit and loss. Changes in the fair value of hedging
instruments are also included in the current profit and loss.
      ② Cash flow hedge
      The portion of the gains or losses from hedging instruments, which belongs to the effective hedge,
shall be directly recognized as other comprehensive income, and the portion which belongs to the
ineffective hedge shall be included in the current profit and loss.
      If the hedged transaction affects the current profit or loss, for example, when the hedged financial
income or financial expense is confirmed or the expected sale occurs, the amount recognized in other
comprehensive income will be transferred to the current profit and loss. If the hedged item is the cost of
a non-financial asset or liability, the amount originally recognized in other comprehensive income is
transferred out and included in the initial recognition amount of the non-financial asset or liability (or the
amount originally recognized in other comprehensive income is transferred out in the same period in
which the non-financial asset or liability affects the profit and loss, and included in the current profit and
loss).
      If the expected transaction or firm commitment is not expected to occur, the cumulative gains or
losses of hedging instruments previously included in other comprehensive income are transferred out
and included in the current profit or loss. If the hedging instrument expires, is sold, terminated or
exercised (but has not been replaced or extended), or the designation of the hedging relationship is
                                             Annual Report 2025
revoked, the amount previously included in other comprehensive income will not be transferred out until
the expected transaction or firm commitment affects the current profit and loss.
     ③ Hedge of net investment in an overseas operation
     Hedge of net investment in an overseas operation, including hedge of monetary items as part of net
investment, is handled similarly to cash flow hedge. The portion of the gains or losses from hedging
instruments, which is recognized as effective hedge, shall be recorded in other comprehensive income,
and the portion which is recognized as ineffective hedge shall be included in the current profit and loss.
When disposing of overseas operations, any accumulated gains or losses included in other
comprehensive income are transferred out and included in the current profit or loss.
     Repurchase of the Company’s shares
     The Company manages the repurchased shares as treasury shares before cancellation or transfer,
and transfers all the expenses for the repurchase to the costs of treasury shares. The consideration and
transaction costs paid for the repurchase reduce the owner’s equity, and no gain or loss is recognized
when the Company’s shares are repurchased, transferred or cancelled.
     (1) Where the Company’s shares are acquired for reasons such as reduction of registered capital or
reward to employees, they will be treated as treasury shares based on the amount actually paid for the
repurchase and also be registered for future reference. If the repurchased shares are cancelled, the
difference between the total nominal value of the shares calculated based on the nominal value and
number of the cancelled shares and the amount actually paid for the repurchase will be offset against the
capital reserve, and if the capital reserve is insufficient to offset, the remaining difference will be offset
against the retained earnings. If the repurchased shares are awarded to employees of the Company as
equity-settled share-based payment, when receiving the price from the exercise by the employees of the
option to purchase the Company’s shares, the Company resells and delivers the cost of employees’
treasury shares and the accumulated amount of capital reserves (other capital reserves) during the
waiting period, and adjusts the capital reserve (share premium) based on the difference between them.
     (2) For the shares repurchased in accordance with the equity incentive plan, the Company will
repurchase and cancel the restricted stocks that fail to meet the unlocking conditions. For the stocks
required to be repurchased due to failure to unlocking conditions for restricted stocks, the Company
debits them to “Other payables - Repurchase obligations of restricted stocks” and other subjects and
credits them to “Bank deposits” and other subjects. At the same time, the Company debits the amount of
share capital corresponding to the number of cancelled restricted stocks in the subject of “Share capital”,
credits the carrying value of the treasury stocks corresponding to the number of cancelled restricted
stocks in the subject of “Treasury shares”, and debits the difference of them to the subject of “Capital
Reserve - Share premium”.
      Debt reorganisation
      (1) The Company as the creditor
      The Company terminates the recognition of claims when the contractual right to receive the cash
flow from claims terminates. In the event of debt reorganisation by means of extinguishing debts with
assets or converting debts into equity instruments, the Company recognises the corresponding assets
when they meet the definition and the conditions for recognition.
      In the event of debt reorganisation by means of extinguishing debts with assets, the Company
measures the transferred non-financial assets at cost upon initial recognition. The cost of inventory
includes the fair value of waived claims and other costs directly attributable to the asset such as taxes,
transportation and handling fees, insurance premiums and other costs incurred in bringing the asset to its
current position and condition. The cost of an investment in an associated enterprise or joint venture
includes other costs such as the fair value of waived claims and taxes directly attributable to the asset.
The cost of an investment property includes the fair value of waived claims and other costs, such as
taxes, directly attributable to the asset. The cost of a fixed asset includes the fair value of waived claims
and other costs directly attributable to the asset such as taxes, transportation, handling and installation
fees, service fees to professionals and other costs incurred in bringing the asset to the predetermined
state for use. The cost of a biological asset includes the fair value of waived claims and other costs, such
as taxes, directly attributable to the asset. The cost of an intangible asset includes the fair value of
waived claims and other costs, such as taxes, incurred in bringing the asset to its intended use. Where
debt reorganisation by converting debts into equity instruments causes creditors to convert their claims
into equity investments in an associated enterprise or joint venture, the Company measures the initial
                                            Annual Report 2025
investment cost at the fair value of waived claims and other costs, such as taxes, directly attributable to
the asset. The difference between the fair value of waived claims and the carrying amount is included in
the profit or loss for the current period.
     For debt reorganisation by means of modifying other terms, the Company recognises and measures
reorganised claims according to Note “V (11) Financial Instruments”.
     For debt reorganisation by means of extinguishing debts with multiple assets or by multiple means,
the Company first recognises and measures transferred financial assets and reorganised claims according
to Note “V (11) Financial Instruments”, and then distributes the net fair value of waived claims after
deducting the recognised amounts of transferred financial assets and reorganised claims according to the
proportion of the fair value of the assets other than the transferred financial assets and, on that basis,
separately determines the cost of each asset according to the aforementioned method. The difference
between the fair value of waived claims and the carrying amount is included in the profit or loss for the
current period.
     (2) The Company as the debtor
     The Company terminates the recognition of debts when its current obligation for debts is
discharged.
     In the event of debt reorganisation by means of extinguishing debts with assets, the Company
terminates recognition when the corresponding assets and the debts to be extinguished meet the
conditions for termination of recognition, and the difference between the carrying amount of the debts to
be extinguished and that of transferred assets is included in the profit or loss for the current period.
     In the event of debt reorganisation by means of converting debts into equity instruments, the
Company terminates recognition when the debts to be extinguished meet the conditions for termination
of recognition. Upon initial recognition of equity instruments, the Company measures at the fair value of
the equity instruments. If the fair value of equity instruments cannot be reliably measured, the Company
measures at the fair value of the debts to be extinguished. The difference between the carrying amount of
the debts to be extinguished and the recognised amounts of equity instruments shall be included in the
profit or loss for the current period.
     For debt reorganisation by means of modifying other terms, the Company recognises and measures
reorganised debts according to Note “V (11) Financial Instruments”.
     For debt reorganisation by means of extinguishing debts with multiple assets or by multiple means,
the Company recognises and measures equity instruments and reorganised debts according to the
aforementioned methods, and includes the difference between the carrying amount of the debts to be
extinguished and the sum of the carrying amount of transferred assets and the recognised amounts of
equity instruments and debts to be extinguished in the profit or loss for the current period.
     Segment reporting
     The Company determines the operating segment based on the internal organizational structure,
management requirements, and internal reporting system, and determines the reporting segment based
on the operating segment and discloses segment information.
     Operating segment refers to the component of the Company that meets the following conditions
simultaneously: (1) the component can generate income and incur expenses in daily activities; (2) the
management of the Company can regularly evaluate the operating results of the component to decide to
allocate resources to it and evaluate its performance; and (3) the Company can obtain relevant
accounting information such as the financial status, operating results and cash flow of the component. If
two or more operating segments have similar economic characteristics and meet certain conditions, they
can be combined into one operating segment.
     Implementation of Q&A on Accounting Treatment for Standard Warehouse Receipt Transactions
under the Financial Instruments Standard
     On July 8, 2025, the Ministry of Finance issued the Implementation Q&A on Accounting
Treatment for Standard Warehouse Receipt (SWR) Transactions, clearly stipulating that, under the
Financial Instruments Recognition and Measurement Standard, the act of an enterprise frequently
entering into SWR buy-and-sell contracts on a futures trading venue to earn price differences without
                                                    Annual Report 2025
       taking delivery of the underlying commodities typically indicates a practice of selling the contracts
       shortly after acquisition to profit from short-term price fluctuations. In such cases, the contracts shall be
       treated as financial instruments and accounted for in accordance with the Financial Instruments
       Recognition and Measurement Standard. For SWRs acquired under such contracts and subsequently sold
       within a short period, revenue from sales shall not be recognized. Instead, the difference between the
       consideration received and the carrying amount of the SWR sold shall be recorded as investment income,
       and SWRs held at the end of the reporting period that have not yet been sold shall be classified as other
       current assets. Enterprises may elect, at initial recognition, to measure SWRs acquired under these
       contracts at fair value with changes recognized in profit or loss, provided this can eliminate or
       significantly reduce accounting mismatches. This election must be applied consistently to all SWRs
       meeting the criteria. Once SWRs are designated at fair value through profit or loss at initial recognition,
       the election cannot be revoked in subsequent periods.
             According to the Notice on Strict Implementation of the Enterprise Accounting Standards and
       Proper Preparation of 2025 Annual Reports (Caikuai [2025] No. 33), enterprises adjusting accounting
       treatments due to the above SWR provisions shall restate comparable periods in their financial
       statements. The implementation of these provisions did not have a material impact on the Company’s
       financial position or operating results.
            (2) Changes in significant accounting estimates
            There were no changes in the Company’s significant accounting estimates during the Reporting
       Period.
           first implementation due to the first implementation of new accounting standards, standard
           interpretations, etc. from 2025
       □ Applicable √ Not applicable
       □ Applicable √ Not applicable
       VI. Taxes
       Particulars on major tax types and tax rates
       √ Applicable □ Not applicable
        Tax type                                       Taxing basis                                        Tax rate
                            The output tax is calculated on the basis of the income from sales
                            of products and taxable income from rendering of services
Value added tax                                                                                     19%, 20%, 13%, 9%,
                            calculated according to the provisions of the tax law. The
(“VAT”)                                                                                             7%, 6%, 5%, 1%
                            difference between the output tax and the input tax which is
                            allowed to be deductible in the current period is the payable VAT
Consumption tax
Business tax
Urban maintenance and       Calculated and paid according to the actually-paid VAT and
construction tax            consumption tax
Enterprise income tax       Calculated and paid according to the taxable income                     22%, 31%, 17%,
       Particulars on disclosure of taxpayers with different enterprise income tax rates
       √ Applicable □ Not applicable
                                                                                                              Income tax
                                           Name of taxpayer
                                                                                                                rate (%)
Shanghai M&G Stationery Inc.                                                                                             15
Shanghai M&G Zhenmei Stationery Co., Ltd.（上海晨光珍美文具有限公司）                                                                  20
                                            Annual Report 2025
Colipu Technologies Group Co., Ltd. (科力普科技集团股份有限公司)                                                    25
Lianyungang Colipu Office Supplies Co., Ltd.（连云港市科力普办公用品有限公司）                                          20
Shenyang Colipu Office Supplies Trading Co., Ltd.（沈阳科力普办公用品贸易有限公司）                                     20
Shanghai M&G Stationery & Gift Co., Ltd.（上海晨光文具礼品有限公司）                                                 25
Shanghai M&G Stationery Sales Co., Ltd.（上海晨光文具销售有限公司）                                                  25
Guangzhou M&G Stationery&Gifts Sales Co., Ltd.（广州晨光文具礼品销售有限公司）                                         25
Yiwu Chenxing Stationery Co., Ltd.（义乌市晨兴文具用品有限公司）                                                      25
Harbin M&G Sanmei Stationery Co., Ltd.（哈尔滨晨光三美文具有限公司）                                                  25
Zhengzhou M&G Stationery&Gifts Co., Ltd.（郑州晨光文具礼品有限责任公司）                                               25
M&G Life Enterprise Management Co., Ltd.（晨光生活馆企业管理有限公司）                                                25
Shanghai M&G Jiamei Stationery Co., Ltd.（上海晨光佳美文具有限公司）                                                 20
Zhejiang New M&G Life Enterprise Management Co., Ltd.（浙江新晨光生活馆企业管理有限公司）                                20
Jiumu M&G Store Enterprise Management Co., Ltd.（九木杂物社企业管理有限公司）                                         25
Shanghai M&G Information Technology Co., Ltd.（上海晨光信息科技有限公司）                                            25
Shenzhen Erya Creative and Cultural Development Co., Ltd.（深圳尔雅文化创意发展有限公司）                              20
Shanghai M&G Office Stationery Co., Ltd.                                                               25
Hangzhou Sanmei M&G Stationery Co., Ltd.（杭州三美晨光文具有限公司）                                                 20
Shanghai Qizhihaowan Culture and Creativity Co., Ltd.（上海奇只好玩文化创意有限公司）                                  25
Shanghai Chenxun Enterprise Management Co., Ltd.（上海晨讯企业管理有限公司）                                         25
Shanghai Colipu Information Technology Co., Ltd.（上海科力普信息科技有限公司）                                        25
Axus Stationery (Shanghai) Company Ltd.                                                                15
Jiangsu Marco Pen Co., Ltd.（江苏马可笔业有限公司）                                                                25
Changchun Macro Stationery Co., Ltd.（长春马可文教用品有限公司）                                                     25
Yili Senlai Wood Co., Ltd.（伊犁森徕木业有限公司）                                                                 25
Axus Stationery (Hong Kong) Company Ltd.                                                              16.5
International stationery company                                                                       20
Shanghai Meixin Stationery Co., Ltd. (上海美新文具有限公司)                                                      25
SHANGHAI M&G STATIONERY (SINGAPORE) PTE.LTD.                                                           17
M&G Jiumu Enterprise Management (Beijing) Co., Ltd. (晨光九木企业管理（北京）有限公司)                                 20
Back to School Holding AS                                                                              22
Beckmann AS                                                                                            22
Beckmann Norway GmbH (Germany)                                                                         31
Beckmann Norway Inc                                                                                    21
Beckmann Norway GmbH (Austria)                                                                         24
Zhejiang Benwei Technology Co., Ltd. (浙江本味科技有限公司)                                                      20
Guangdong South China M&G Stationery Co., Ltd. (广东华南晨光文教用品有限公司)                                        25
Hubei M&G Central China Information Technology Co., Ltd. (湖北晨光华中信息科技有限公司)                              25
Shanghai Colipu Technology Development Co., Ltd. (上海科力普科技发展有限公司)                                       20
Shanghai Yichengxiang E-commerce Co., Ltd. (上海益诚祥电子商务有限公司)                                             20
Shanghai M&G Online Selection Stationery Co., Ltd. (上海晨光在线甄选文具有限公司)                                    25
Shanghai Mymybear Enterprise Management Co., Ltd. (上海沫沫班长企业管理有限公司)                                     20
Shanghai M&G Stationery (Thailand) Co., Ltd                                                            20
Lanzhou M&G Cultural Supplies Co., Ltd. (兰州晨光文化用品有限公司)                                                 20
     √ Applicable □ Not applicable
         On December 19, 2025, the Company obtained the Innovation Company Certificate (certificate
     number GR202531000914, valid for 3 years) issued jointly by Shanghai Municipal Science and
     Technology Commission, Shanghai Finance Bureau and Shanghai Municipal Tax Service, State
     Taxation Administration.
                                           Annual Report 2025
      On December 4, 2024, the subsidiary Axus Stationery obtained the Innovation Company Certificate
(certificate number GR202431002131, valid for 3 years) issued jointly by Shanghai Municipal Science
and Technology Commission, Shanghai Finance Bureau and Shanghai Municipal Tax Service, State
Taxation Administration.
      The Company and the subsidiary Axus Stationery paid the enterprise income tax at the rate of 15%
this year.
      Pursuant to the Announcement on Further Supporting Small and Micro Enterprises and Individual
Industrial and Commercial Businesses through Relevant Tax and Fee Policies (Announcement No. 12
of 2023 of the Ministry of Finance and the State Taxation Administration). Tax on natural resources
(excluding tax on water resources), urban maintenance and construction tax, real estate tax, urban land
use tax, stamp tax (excluding stamp tax on securities transactions), agriculture land tax, educational
surcharge and local education surcharge on small-scale VAT taxpayers, small-sized low-profit
enterprises and individual industrial and commercial households are deducted by half from January 1,
income for small-sized low-profit enterprises, with the effective period extended till December 31, 2027.
Subsidiaries M&G Jiumu Enterprise Management (Beijing) Co., Ltd. (晨光九木企业管理（北京）有限
公司), Zhejiang New M&G Life Enterprise Management Co., Ltd.（浙江新晨光生活馆企业管理有限
公司）, Lianyungang Colipu Office Supplies Co., Ltd.（连云港市科力普办公用品有限公司）, Shenyang
Colipu Office Supplies Trading Co., Ltd.（沈阳科力普办公用品贸易有限公司）, Shanghai Colipu
Technology Development Co., Ltd. (上海科力普科技发展有限公司), Zhejiang Benwei Technology
Co., Ltd. (浙江本味科技有限公司), Shanghai M&G Jiamei Stationery Co., Ltd.（上海晨光佳美文具有
限公司）, Shanghai M&G Zhenmei Stationery Co., Ltd.（上海晨光珍美文具有限公司）, Shenzhen Erya
Creative and Cultural Development Co., Ltd.（深圳尔雅文化创意发展有限公司）, Hangzhou Sanmei
M&G Stationery Co., Ltd.（杭州三美晨光文具有限公司）, Shanghai Yichengxiang E-commerce Co.,
Ltd. (上海益诚祥电子商务有限公司), Lanzhou M&G Cultural Supplies Co., Ltd. (兰州晨光文化用品
有限公司), and Shanghai Mymybear Enterprise Management Co., Ltd. (上海沫沫班长企业管理有限
公司) meet the tax declaration requirements for micro and small enterprises, and declare the enterprise
income tax at the tax rate of 20%.
      In accordance with the Announcement on the Additional VAT Credit Policy for Advanced
Manufacturing Enterprises (Announcement [2023] No. 43) issued by the Ministry of Finance and the
State Taxation Administration, advanced manufacturing enterprises are entitled to an additional 5%
input VAT credit from January 1, 2023 to December 31, 2027 in order to offset their VAT payable. The
Company meets the relevant provisions on the tax incentive and has applied the additional 5% input
VAT credit to offset its VAT payable accordingly.
      In accordance with the Notice of the Ministry of Finance and the State Administration of Taxation
on Value-Added Tax Policies for Software Products (Cai Shui [2011] No. 100), the subsidiary Colipu
Information Technology was granted the tax incentive regarding the refund upon payment of VAT by
Shanghai Xuhui District Tax Service, State Taxation Administration on software products on June 9,
□ Applicable √ Not applicable
VII. Notes to the Items of Consolidated Financial Statements
√ Applicable □ Not applicable
                                                                         Unit: Yuan   Currency: RMB
             Item                         Closing balance                     Opening balance
Cash on hand                                           809,289.01                        1,316,928.26
Cash at bank                                     3,938,309,460.71                    4,921,949,239.34
Other cash and equivalents                          42,503,790.78                       38,951,134.52
Deposits in finance company
             Total                                3,981,622,540.50                     4,962,217,302.12
                                            Annual Report 2025
  Including: Total cash
deposited outside China
Other descriptions:
No
√ Applicable □ Not applicable
                                                                           Unit: Yuan     Currency: RMB
                                                                                        Reasons and basis
                 Item                       Closing balance        Opening balance
                                                                                         for designation
Financial assets at fair value through
profit or loss
Including:
       Debt instrument investment                                                                       /
       Equity instrument investment
        Derivative financial assets                                                                     /
       Others                               4,108,620,317.14        2,569,112,993.22
Financial assets designated at fair
value through profit or loss
Including:
       Debt instrument investment
       Others
                 Total                      4,108,620,317.14        2,569,112,993.22                    /
Other descriptions:
√ Applicable □ Not applicable
    Other bank wealth management products purchased for the Company.
□ Applicable √ Not applicable
(1). Bills receivable presented by category
√ Applicable □ Not applicable
                                                                           Unit: Yuan   Currency: RMB
                    Item                               Closing balance              Opening balance
Bank acceptance bills
Commercial acceptance bills                                      49,831,812.11               9,033,273.87
Finance company acceptance bills                                 14,935,312.61               9,747,991.69
Less: Bad debt provisions of bills receivable                    -4,767,787.38              -1,355,738.91
                   Total                                         59,999,337.34              17,425,526.65
(2). Bills receivable pledged by the Company at the end of the period
□ Applicable √ Not applicable
(3). Bills receivable endorsed or discounted by the Company at the end of the period but not due
yet at the balance sheet date
√ Applicable □ Not applicable
                                                                           Unit: Yuan   Currency: RMB
                Item                     Amount derecognized at the       Amount not derecognized at the
                                                               Annual Report 2025
                                                                 end of the Period                          end of the period
             Bank acceptance bills
             Commercial acceptance bills                                                                                29,545,500.78
             Finance company acceptance bills                                                                            9,687,733.36
                           Total                                                                                        39,233,234.14
             (4). Disclosure by accruing method for bad debt provisions
             √ Applicable □ Not applicable
                                                                                                  Unit: Yuan          Currency: RMB
                                             Closing balance                                                        Opening balance
                       Carrying balance         Bad debt provisions                           Carrying balance         Bad debt provisions
                                                                Accr                                                                   Accr
   Category                          Percent                    uing        Carrying                        Percent                    uing     Carrying
                      Amount           age        Amount       perce         value           Amount           age       Amount        perce      value
                                      (%)                      ntage                                         (%)                      ntage
                                                                (%)                                                                    (%)
Bad debt
provisions
accrued
separately
Including:
Bad debt
provisions
accrued              64,767,124.72   100.00     4,767,787.38    7.36      59,999,337.34     18,781,265.56    100.00    1,355,738.91     7.22   17,425,526.65
according to the
combination
Including:
Finance
company              14,935,312.61    23.06      728,688.24     4.88      14,206,624.37      9,747,991.69     51.90     604,896.12      6.21    9,143,095.57
acceptance bills
Commercial
acceptance bills
     Total           64,767,124.72        /     4,767,787.38     /        59,999,337.34     18,781,265.56        /     1,355,738.91      /     17,425,526.65
             Bad debt provisions accrued separately:
             □ Applicable √ Not applicable
             Bad debt provisions accrued according to the combination:
             √ Applicable □ Not applicable
             Combination item: Credit risk characteristic portfolio
                                                                                               Unit: Yuan   Currency: RMB
                                                                               Closing balance
                      Item                                                                              Accruing percentage
                                              Carrying balance                Bad debt provisions
                                                                                                               (%)
             Finance company
             acceptance bills
             Commercial
             acceptance draft
                     Total                           64,767,124.72                        4,767,787.38
             Notes to bad debt provisions accrued according to the combination
             □ Applicable √ Not applicable
             Bad debt provisions accrued according to the general model of expected credit losses
             □ Applicable √ Not applicable
             Basis of classification of stages and percentage of provision for bad debts
             No
                                              Annual Report 2025
Notes to the significant changes in the book balance of bills receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
√ Applicable □ Not applicable
                                                                            Unit: Yuan    Currency: RMB
                                                    Change of the current period
                                                                       Resold
                          Opening                         Recover                   Other     Closing
     Category                                                             or
                          balance             Accrued       ed or                  change     balance
                                                                       written-
                                                          reversed                    s
                                                                          off
Finance company
acceptance bills
Commercial
acceptance draft
       Total             1,355,738.91     3,412,048.47                                     4,767,787.38
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(6). Particulars on notes receivable actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant notes receivable:
□ Applicable √ Not applicable
Notes to the write-off of notes receivable:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
(1). Disclosure by account age
√ Applicable □ Not applicable
                                                                           Unit: Yuan   Currency: RMB
                                         Carrying balance at the end of       Carrying balance at the
            Account age
                                                  the period                  beginning of the period
Within one year (including one year)                  4,546,808,968.06                 3,840,754,562.66
Including: Sub-item within one year
Within one year                                         4,546,808,968.06               3,840,754,562.66
One to two years                                          106,194,739.34                  86,030,697.31
Two to three years                                         13,674,496.00                   9,635,470.86
Above three years                                           7,059,749.62                   7,004,778.86
Three to four years
Four to five years
Above five years
                Total                                   4,673,737,953.02               3,943,425,509.69
                                                                         Annual Report 2025
                (2). Disclosure by accruing method for bad debt provisions
                √ Applicable □ Not applicable
                                                                                                             Unit: Yuan            Currency: RMB
                                            Closing balance                                                             Opening balance
                    Carrying balance            Bad debt provisions                             Carrying balance            Bad debt provisions
 Category                                                    Accruing        Carrying                                                    Accruing           Carrying
                                 Percentage                                   value                          Percentage                                      value
                  Amount                       Amount       percentage                        Amount                       Amount       percentage
                                    (%)                                                                         (%)
                                                               (%)                                                                          (%)
Bad debt
provisions
accrued
separately
Including:
Bad debt
provisions
accrued
according to
the
combination
Including:
Account
age analysis
   Total      4,673,737,953.02         /        96,202,514.56   /        4,577,535,438.46 3,943,425,509.69         /          82,790,091.93    /        3,860,635,417.76
                Bad debt provisions accrued separately:
                □ Applicable √ Not applicable
                Bad debt provisions accrued according to the combination:
                √ Applicable □ Not applicable
                Combination item: Account age analysis
                                                                                       Unit: Yuan   Currency: RMB
                                                                        Closing balance
                         Item                                                                   Accruing percentage
                                            Carrying balance          Bad debt provisions
                                                                                                       (%)
                Account age analysis            4,653,550,693.85              76,015,255.39                      1.63
                        Total                   4,653,550,693.85              76,015,255.39
                Description on bad debt provisions accrued according to the combination:
                □ Applicable √ Not applicable
                Bad debt provisions accrued according to the general model of expected credit losses
                □ Applicable √ Not applicable
                Basis of classification of stages and percentage of provision for bad debts
                No
                Notes to the significant changes in the book balance of accounts receivable arising from changes in the
                provision for losses in the current period:
                □ Applicable √ Not applicable
                (3). Particulars on bad debt provisions
                √ Applicable □ Not applicable
                                                                                                       Unit: Yuan   Currency: RMB
                                                                            Change of the current period
                                  Opening                                                                                     Closing
             Category                                                       Recovered or       Resold or        Other
                                  balance                  Accrued                                                            balance
                                                                              reversed        written-off      changes
           Bad debt
           provisions
                                                Annual Report 2025
accrued
separately
Account
age analysis
   Total        82,790,091.93      17,041,362.12      2,298,338.54    1,267,690.53     -62,910.42     96,202,514.56
     Significant bad debt provision amounts recovered or reversed in the current period:
     □ Applicable √ Not applicable
     Other descriptions:
          In the bad debt provision for the current year, there are an impact of RMB-75,369.45 due to the
     exchange rate difference in the conversion of foreign currency financial statements and a provision of
     RMB12,459.03 due to the acquisition of Shanghai Mymybear Enterprise Management Co., Ltd. (上海沫
     沫班长企业管理有限公司) (a new business combination not under common control). The bad debt
     provision recognized for the current year includes an amount of RMB2,298,338.54 recovered or
     reversed from the provision for bad debts previously recognized, with the actual provision for bad debts
     being RMB14,743,023.58.
     (4). Particulars on accounts receivable actually written-off in the current period
     √ Applicable □ Not applicable
                                                                               Unit: Yuan    Currency: RMB
                          Item                                            Written-off amount
     Accounts receivable actually written-off                                                  1,267,690.53
     Writing-off of significant accounts receivable
     □ Applicable √ Not applicable
     Description on writing-off of accounts receivable:
     □ Applicable √ Not applicable
     (5). Particulars on top five accounts receivable and contract assets in terms of the balance at the
          end of the period based on debtors
     √ Applicable □ Not applicable
                                                                               Unit: Yuan      Currency: RMB
                                                                               Percentage (%)
                                                                                 in the total
                                            Closing       Closing balance of    balance at the   Balance of bad
                     Closing balance
     Company                               balance of          accounts           end of the     debt provisions
                       of accounts
      name                                  contract        receivable and        period of        at the end of
                       receivable
                                             assets         contract assets        accounts         the period
                                                                               receivable and
                                                                               contract assets
  First              1,031,327,475.14                      1,031,327,475.14               22.07     6,679,276.00
  Second               414,633,311.62                        414,633,311.62                8.87     4,235,326.70
  Third                403,906,075.59                        403,906,075.59                8.64    10,671,854.59
  Fourth               125,821,456.21                        125,821,456.21                2.69     1,732,982.72
  Fifth                109,590,825.84                        109,590,825.84                2.34     3,043,242.86
       Total         2,085,279,144.40                      2,085,279,144.40               44.61    26,362,682.87
     Other descriptions:
     No
     Other descriptions:
     □ Applicable √ Not applicable
                                             Annual Report 2025
(1). Particulars on contract assets
□ Applicable √ Not applicable
(2). Amount of and reason for significant changes in carrying value during the Reporting Period
□ Applicable √ Not applicable
(3). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of contract assets arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(4). Provision set aside for bad debts on contract assets in the current period
□ Applicable √ Not applicable
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(5). Contract assets written off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant contract assets
□ Applicable √ Not applicable
Notes to write-off of contract assets:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
                                            Annual Report 2025
(1). Classified presentation of accounts receivables financing
√ Applicable □ Not applicable
                                                                              Unit: Yuan Currency: RMB
               Item                            Closing balance                  Opening balance
Bills receivable                                        31,211,919.98                    28,475,371.64
Factoring of accounts receivable
Accounts receivable
                Total                                    31,211,919.98                   28,475,371.64
(2). Accounts receivables financing pledged by the Company at the end of the period
□ Applicable √ Not applicable
(3). Accounts receivables financing endorsed or discounted by the Company at the end of the
     period but not due yet at the balance sheet date
√ Applicable □ Not applicable
                                                                          Unit: Yuan     Currency: RMB
                                   Amount derecognized at the end        Amount not derecognized at the
             Item
                                           of the period                       end of the period
Bank acceptance bills                               26,467,790.18
            Total                                   26,467,790.18
(4). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of accounts receivables financing arising from
changes in the provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
□ Applicable √ Not applicable
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
                                                      Annual Report 2025
        (6). Particulars on accounts receivable financing actually written-off in the current period
        □ Applicable √ Not applicable
        Including: Significant write-off of accounts receivables financing
        □ Applicable √ Not applicable
        Notes on write-off:
        □ Applicable √ Not applicable
        (7). Changes in receivables financing during the current period and changes in fair value:
        √ Applicable □ Not applicable
                                                                                     Unit: Yuan    Currency: RMB
                                                                                                       Accumulated losses
                                      Increased in      Derecognition
                       Opening                                              Other         Closing      recognized in other
      Item                             the current      of the current
                       balance                                             changes        balance        comprehensive
                                         period             period
                                                                                                             income
Bills receivable    28,475,371.64    138,453,557.83     135,717,009.49                 31,211,919.98
        (8). Other descriptions
        □ Applicable √ Not applicable
        (1). Prepayment presented by account age
        √ Applicable □ Not applicable
                                                                                   Unit: Yuan    Currency: RMB
                                           Closing balance                            Opening balance
             Account age
                                     Amount           Percentage (%)             Amount         Percentage (%)
        Within one year             71,269,409.61                97.23          88,743,121.12              97.80
        One to two years             1,915,106.03                 2.61           1,471,482.66               1.62
        Two to three years             109,931.11                 0.15             500,279.73               0.55
        Above three years               10,858.15                 0.01              28,788.91               0.03
              Total                 73,305,304.90              100.00           90,743,672.42            100.00
        Description on the reasons for failure to settle the prepayment with an account age over one year and a
        significant amount:
        No
        (2). Particulars on top 5 prepayments in terms of the balance at the end of the period according to
              the concentration of parties to which the prepayments are made
        √ Applicable □ Not applicable
                                                                                      Unit: Yuan      Currency: RMB
                                                                                       Percentage (%) in the total
                   Company name                       Closing balance                balance at the end of the period
                                                                                             of prepayment
        First                                                    7,173,883.76                                     9.79
        Second                                                   6,348,082.66                                     8.66
        Third                                                    4,270,379.41                                     5.83
        Fourth                                                   2,925,196.46                                     3.99
        Fifth                                                    2,202,481.42                                     3.00
                      Total                                     22,920,023.71                                   31.27
                                             Annual Report 2025
Other descriptions:
No
Other descriptions:
□ Applicable √ Not applicable
Presented by item
√ Applicable □ Not applicable
                                                                              Unit: Yuan    Currency: RMB
                Item                           Closing balance                       Opening balance
Interest receivable
Dividend receivable
Other receivables                                       272,193,803.53                     238,243,332.88
                Total                                   272,193,803.53                     238,243,332.88
Other descriptions:
□ Applicable √ Not applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable √ Not applicable
(2). Important overdue interest
□ Applicable √ Not applicable
(3). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
(4). Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of interest receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
□ Applicable √ Not applicable
                                             Annual Report 2025
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(6). Particulars on interest receivable actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant interest receivable
□ Applicable √ Not applicable
Notes on write-off:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Dividend receivable
(1). Dividend receivable
□ Applicable √ Not applicable
(2). Important dividend receivable with the account age over one year
□ Applicable √ Not applicable
(3). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
(4). Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of dividends receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
□ Applicable √ Not applicable
Significant bad debt provision amounts recovered or reversed in the current period:
                                            Annual Report 2025
□ Applicable √ Not applicable
Other descriptions:
No
(6). Particulars on dividend receivable actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant dividend receivable
□ Applicable √ Not applicable
Notes on write-off:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Other receivables
(1). Disclosure by account age
√ Applicable □ Not applicable
                                                                          Unit: Yuan   Currency: RMB
                                         Carrying balance at the end        Carrying balance at the
            Account age
                                                of the period               beginning of the period
Within one year (including one year)                  206,761,277.66                    213,227,356.27
Including: Sub-item within one year
Within one year                                       206,761,277.66                    213,227,356.27
One to two years                                       56,598,575.03                     39,011,841.61
Two to three years                                     32,268,144.36                      8,492,896.52
Above three years                                      13,661,083.20                      9,862,110.90
Three to four years
Four to five years
Above five years
Less: Bad debt provisions                             -37,095,276.72                    -32,350,872.42
                Total                                 272,193,803.53                    238,243,332.88
(2). Particulars on classification by amount nature
√ Applicable □ Not applicable
                                                                          Unit: Yuan   Currency: RMB
                                       Carrying balance at the end of       Carrying balance at the
          Amount nature
                                                the period                  beginning of the period
Personal loans and petty cash                           7,689,044.44                       9,623,635.38
Amount paid for materials                             27,780,107.16                       36,906,025.77
Consolidated balance of
related-parties current accounts -                        51,735,123.27                  49,172,765.14
provisional input tax
Non-housing deposit and margin                         91,600,721.28                     72,362,755.76
Housing deposit and margin                             88,439,343.18                     77,354,849.42
Others                                                 42,044,740.92                     25,174,173.83
                Total                                 309,289,080.25                    270,594,205.30
(3). Particulars on accruing of bad debt provisions
√ Applicable □ Not applicable
                                                   Annual Report 2025
                                                                                 Unit: Yuan      Currency: RMB
                                         Phase 1              Phase 2               Phase 3
                                                          Expected credit       Expected credit
                                   Expected credit       loss for the entire   loss for the entire
      Bad debt provisions                                                                                Total
                                    losses in the        duration (no credit    duration (credit
                                   next 12 months           impairment            impairment
                                                             occurred)             occurred)
 Balance as at January 1, 2025      32,350,872.42                                                     32,350,872.42
 Balance as of January 1, 2025
 in the current period
 - Transferred into Phase 2
 - Transferred into Phase 3
 - Reversed into Phase 2
 - Reversed into Phase 1
 Accrued in the current period          4,467,813.84                                 250,000.00      4,717,813.84
 Reserved in the current period
 Resold in the current period
 Written-off in the current
 period
 Other Changes                           276,590.46                                                    276,590.46
 Balance as at December 31,
   Basis of classification of stages and percentage of provision for bad debts
   No
   Notes to the significant changes in the book balance of other receivables arising from changes in the
   provision for losses in the current period:
   □ Applicable √ Not applicable
   Amount of bad debt provisions accrued for the current period and the basis for assessing whether the
   credit risk of financial instruments has increased significantly:
   □ Applicable √ Not applicable
   (4). Particulars on bad debt provisions
   √ Applicable □ Not applicable
                                                                             Unit: Yuan    Currency: RMB
                                                    Change of the current period
                                                       Recove
                         Opening
    Category                                            red or     Resold or        Other      Closing balance
                         balance            Accrued
                                                       reverse written-off         changes
                                                          d
Bad debt
provisions                                  250,000.00                  250,000.00
accrued separately
Account age
analysis
Deposit for
housing lease
       Total          32,350,872.42       4,717,813.84                  250,000.00    276,590.46      37,095,276.72
   Significant bad debt provision amounts reversed or recovered in the current period:
   □ Applicable √ Not applicable
   Other descriptions:
                                                     Annual Report 2025
           The other changes in the bad debt provision for the current year consist of an impact of
      RMB-1,064.99 due to the exchange rate difference in the conversion of foreign currency financial
      statements and a provision of RMB277,655.45 due to the acquisition of Shanghai Mymybear Enterprise
      Management Co., Ltd. (上海沫沫班长企业管理有限公司) (a new business combination not under
      common control).
      (5). Particulars on other receivables actually written-off in the current period
      √ Applicable □ Not applicable
                                                                                       Unit: Yuan    Currency: RMB
                             Item                                                 Written-off amount
      Other receivables actually written-off                                                            250,000.00
      Including: Write-off of significant other receivables:
      □ Applicable √ Not applicable
      Notes to the write-off of other receivables:
      □ Applicable √ Not applicable
      (6). Particulars on top 5 other receivables in terms of the balance at the end of the period based on
      debtors
      √ Applicable □ Not applicable
                                                                                      Unit: Yuan    Currency: RMB
                                                      Percentage
                                                       (%) in the
                                                                                                              Bad debt
                                                     total balance
                                  Closing                               Account                              provisions
     Company name                                    at the end of                        Account age
                                  balance                                nature                                closing
                                                     the period of
                                                                                                              balance
                                                         other
                                                      receivables
                                                                      Consolidate
                                                                      d balance of
Consolidated balance of
                                                                      related-parti
related-parties current
accounts - provisional
                                                                      accounts -
input tax
                                                                      provisional
                                                                      input tax
China Post Group Co.,                                                                  Within one year
Ltd. Jiangsu Branch（中国                                                Non-housin
                                                                                       RMB4.00 million
邮政集团有限公司江苏                                                                             One to two years
                                                                      and margin
省分公司）                                                                                  RMB3.00 million
Vinda Commercial and
Trade Co., Ltd. Shanghai                                              Amount
Branch（维达商贸有限公                  6,807,287.01                  2.20    paid for         Within one year        340,364.35
                                                                      materials
司上海分公司）
Huizhou Guoxu                                                         Housing
Management Co., Ltd.（惠          6,320,073.00                  2.04    deposit and      One to two years       316,003.65
州市国旭管理有限公司）                                                           margin
Hangzhou Funing
Network Technology Co.,
Ltd.（杭州富柠网络技术                   5,500,000.00                  1.78    Others           Within one year        275,000.00
有限公司）
           Total               77,362,483.28                25.01           /                  /            2,031,368.00
                                                       Annual Report 2025
         (7). Other receivables reported due to centralized management of funds
         □ Applicable √ Not applicable
         Other descriptions:
         □ Applicable √ Not applicable
         (1). Classification of inventories
         √ Applicable □ Not applicable
                                                                                      Unit: Yuan        Currency: RMB
                                     Closing balance                                        Opening balance
                                       Provision for                                          Provision for
                                        the loss on                                            the loss on
                                         decline in                                             decline in
                                          value of                                               value of
                                       inventories/                                           inventories/
      Item
                    Carrying balance provision for       Carrying value     Carrying balance provision for         Carrying value
                                            the                                                    the
                                      impairment of                                          impairment of
                                          contract                                               contract
                                       performance                                            performance
                                            cost                                                   cost
Raw materials        201,031,819.01    3,806,221.73       197,225,597.28     177,310,855.52   1,662,853.82          175,648,001.70
Work-in-process       36,731,382.21    1,353,702.95        35,377,679.26      42,946,655.16                          42,946,655.16
Finished
products
Revolving
materials
Expendable
biological assets
Contract
performance
cost
Consigned
processing             8,911,807.25                          8,911,807.25       8,509,873.42                          8,509,873.42
materials
Shipped goods          24,981,022.76                       24,981,022.76       44,751,670.30                         44,751,670.30
      Total         1,743,249,986.78   74,212,818.75    1,669,037,168.03    1,614,063,796.96     68,197,078.17    1,545,866,718.79
         (2). Data resources recognized as inventories
         □ Applicable √ Not applicable
         (3). Devaluation provisions of inventories and impairment provisions of contract performance cost
         √ Applicable □ Not applicable
                                                                                      Unit: Yuan        Currency: RMB
                                                 Increase amount of the      Decrease amount of the
                                                     current period               current period
                Item          Opening balance                                                              Closing balance
                                                                            Reversed or
                                                   Accrued        Others                       Others
                                                                              resold
        Raw materials             1,662,853.82    2,143,367.91                                                3,806,221.73
        Work-in-process                           1,353,702.95                                                1,353,702.95
        Finished products        65,402,473.76    3,614,559.77                288,846.29    -130,281.56      68,858,468.80
        Revolving materials       1,131,750.59     -637,325.32                300,000.00                        194,425.27
        Expendable
        biological assets
                                             Annual Report 2025
Contract
performance cost
       Total           68,197,078.17     6,474,305.31                588,846.29   -130,281.56      74,212,818.75
     Additional notes: The other changes in the provision for inventory impairment for the current year
include a foreign exchange translation difference of RMB-130,281.56 in the financial statements.
Reasons for reversal or write-off of provision for inventories impairment in the current period
□ Applicable √ Not applicable
Inventories impairment provisions accrued according to the combination
□ Applicable √ Not applicable
Criteria for inventories impairment provisions accrued according to the combination
□ Applicable √ Not applicable
(4). Capitalization amount of the borrowing expenses included in the balance of inventories at the
     end of the period and the criteria and basis for its calculation
□ Applicable √ Not applicable
(5). Description on amortization amount of the current period of contract performance cost
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
□ Applicable √ Not applicable
√ Applicable □ Not applicable
                                                                          Unit: Yuan     Currency: RMB
                    Item                                Closing balance                Opening balance
Debt investment due within one year
Other debt investments due within one year
Long-term receivables due within one year                         215,660.65                      862,796.30
                   Total                                          215,660.65                      862,796.30
Debt investment due within one year
□ Applicable √ Not applicable
Other debt investments due within one year
□ Applicable √ Not applicable
Additional notes to non-current assets due within one year
No
√ Applicable □ Not applicable
                                                                            Unit: Yuan   Currency: RMB
                  Item                             Closing balance                 Opening balance
Contract acquisition cost
                                           Annual Report 2025
Receivable return cost                                       94,285,462.11              62,531,670.08
VAT input tax to be verified                                    559,910.12                 513,487.14
VAT input tax to be deducted                                 56,078,584.05              31,156,492.94
Pre-paid enterprise income tax                                   52,720.28               7,304,935.55
Pre-paid value added tax                                                                   212,307.53
Others                                                        1,316,019.73               1,262,562.90
Fixed term deposits due within one year                                                141,000,000.00
                 Total                                      152,292,696.29             243,981,456.14
Other descriptions:
No
(1). Particulars on debt investment
□ Applicable √ Not applicable
Changes in provision for impairment on debt investments in the current period
□ Applicable √ Not applicable
(2). Important debt investment at the end of the period
□ Applicable √ Not applicable
(3). Particulars on accruing of impairment provisions
□ Applicable √ Not applicable
Basis of classification of stages and percentage of impairment provision
No
Notes to the significant changes in the book balance of debt investments arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
Bases for determining the amount of provision set aside for impairment and assessing whether the credit
risk of financial instruments has increased substantially in the current period
□ Applicable √ Not applicable
(4). Particulars on debt investment actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant debt investments
□ Applicable √ Not applicable
Notes to write-off of debt investments:
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
(1). Other debt investment
□ Applicable √ Not applicable
                                            Annual Report 2025
Changes in provision for impairment on other debt investments in the current period
□ Applicable √ Not applicable
(2). Important other debt investments at the end of the period
□ Applicable √ Not applicable
(3). Particulars on accruing of impairment provisions
□ Applicable √ Not applicable
Basis of classification of stages and percentage of impairment provision
No
Notes to the significant changes in the book balance of other debt investments arising from changes in
the provision for losses in the current period:
□ Applicable √ Not applicable
Bases for determining the amount of provision set aside for impairment and assessing whether the credit
risk of financial instruments has increased substantially in the current period
□ Applicable √ Not applicable
(4). Particulars on other debt investments actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of other significant debt investments
□ Applicable √ Not applicable
Notes to write-off of other debt investments:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
(1). Long-term receivables
□ Applicable √ Not applicable
(2). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
(3). Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
                                                                           Annual Report 2025
                   Basis of classification of stages and percentage of provision for bad debts
                   No
                   Notes to the significant changes in the book balance of long-term receivables arising from changes in the
                   provision for losses in the current period:
                   □ Applicable √ Not applicable
                   Bases for determining the amount of provision set aside for bad debts and assessing whether the credit
                   risk of financial instruments has increased substantially in the current period
                   □ Applicable √ Not applicable
                   (4). Particulars on bad debt provisions
                   □ Applicable √ Not applicable
                   Significant bad debt provision amounts recovered or reversed in the current period:
                   □ Applicable √ Not applicable
                   Other descriptions:
                   No
                   (5). Particulars on long-term receivables actually written-off in the current period
                   □ Applicable √ Not applicable
                   Including: Write-off of significant long-term receivables
                   □ Applicable √ Not applicable
                   Notes to the write-off of long-term receivables:
                   □ Applicable √ Not applicable
                   Other descriptions
                   □ Applicable √ Not applicable
                   (1). Long-term equity investments
                   √ Applicable □ Not applicable
                                                                                                                  Unit: Yuan          Currency: RMB
                                                                          Change of the current period
                                                             Investment                                                                                         Balance of
                                                                                                         Declaration
                     Opening                                  gains and                                                                           Closing      impairment
                                                                             Adjustment to                    on         Accruing
  Invested            balance                                   losses                          Other                                             Balance       provisions
                                   Additional   Withdrawn                        other                   distribution        of
  company            (carrying                               recognized                         equity                                Others     (carrying      at the end
                                   investment   investment                   comprehensive                 of cash      impairment
                       value)                                 under the                        changes                                             value)         of the
                                                                                income                    dividends      provisions
                                                               equity                                                                                             period
                                                                                                          or profits
                                                               method
I. Joint venture
Subtotal
II. Associate
Ningbo
Zhongchen
Equity
Investment         30,726,231.21                             766,143.93        1,435,972.84                                                    32,928,347.98
Partnership
(Limited
Partnership)
Shanghai
Pen-making
Technology
Services Co.,       2,851,883.87                             -173,710.01                                                                        2,678,173.86
Ltd.（上海制
笔技术服务
                                                          Annual Report 2025
有限公司）
Subtotal    33,578,115.08                    592,433.92      1,435,972.84                            35,606,521.84
    Total   33,578,115.08                    592,433.92      1,435,972.84                            35,606,521.84
            (2). Impairment test of long-term equity investments
            √ Applicable □ Not applicable
            The recoverable amount is determined as the net fair value less disposal costs
            □ Applicable √ Not applicable
            The recoverable amount is determined as the present value of the expected future cash flows
            □ Applicable √ Not applicable
            The differences between the foregoing information and the data used in impairment testing in
            previous years, or external information, are due to apparent reasons
            □ Applicable √ Not applicable
            The reasons for the disparity between the information used in impairment testing in previous
            years and the actual situation of the current year are evident for the Company
            □ Applicable √ Not applicable
            Other descriptions:
            No
                                                               Annual Report 2025
           (1). Particulars on other equity instrument investments
           √ Applicable □ Not applicable
                                                                                                  Unit: Yuan      Currency: RMB
                                              Change of the current period
                                                                 Accum
                                                                  ulated                                                       Accum
                                                                                                      Divide
                                   Ad     Wi        Gains         losses                                                        ulated
                                                                                                         nd     Accumulated                 Reason for
                                   diti   thd    included in     include                                                        losses
                                                                                                      income        gains                designation as
                                   on      ra       other           d in                                                       include
                    Opening                                                             Closing       recogni    included in               at fair value
    Item                            al    wn     comprehens        other                                                          d in
                    balance                                                  Others     balance        zed in       other                 through other
                                   inv    inv    ive income      compre                                                          other
                                                                                                        the     comprehensiv             comprehensive
                                   est    est       in the       hensive                                                       compre
                                                                                                      current     e income                    income
                                   me     me       current       income                                                        hensive
                                                                                                       period
                                    nt     nt      period         in the                                                       income
                                                                 current
                                                                  period
Shanghai                                                                                                                                 The Company
M&G                                                                                                                                      held the
Culture and        10,579,958.34                  237,840.06                          10,817,798.40             7,217,798.40             investment for
Creativity                                                                                                                               non-trading
Co., Ltd.                                                                                                                                purposes
    Total          10,579,958.34                  237,840.06                          10,817,798.40             7,217,798.40             /
           (2). Amount derecognized in the current period
           □ Applicable √ Not applicable
           Other descriptions:
           □ Applicable √ Not applicable
           □ Applicable √ Not applicable
           Other descriptions:
           □ Applicable √ Not applicable
           Measurement model of investment real estate
           (1). Impairment test of investment real estate measured at cost
                                                                                                   Unit: Yuan     Currency: RMB
                                                    Property and                                  Construction in
                        Item                                                 Land use right                            Total
                                                     buildings                                      progress
           I. Original carrying value:
           beginning of the period
           current period
                   (1) Outsourcing
                   (2) Transfer-in from
           inventories, fixed assets and
           construction in progress
                   (3) Increase for
           business combination
           the current period
                                           Annual Report 2025
         (1) Disposal
(2) Other transfer-out
the period
II. Accumulated depreciation and amortization
beginning of the period
current period
         (1) Accruing or
amortization
the current period
         (1) Disposal
         (2) Other transfer-out
the period
III. Impairment provisions
beginning of the period
current period
         (1) Accruing
the current period
         (1) Disposal
         (2) Other transfer-out
the period
IV. Carrying value
end of the period
beginning of the period
(2). Investment real estate without proper certificates of title
□ Applicable √ Not applicable
(3). Impairment test of investment real estate measured at cost
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Presented by item
√ Applicable □ Not applicable
                                                                        Unit: Yuan    Currency: RMB
                Item                           Closing balance                 Opening balance
Fixed assets                                         1,682,453,574.18                1,527,715,803.59
Disposal of fixed assets
                Total                                1,682,453,574.18               1,527,715,803.59
                                                   Annual Report 2025
        Other descriptions:
        □ Applicable √ Not applicable
        Fixed assets
        (1). Particulars on fixed assets
        √ Applicable □ Not applicable
                                                                                     Unit: Yuan   Currency: RMB
                          Property and        Machinery and           Means of
        Item                                                                          Other equipment         Total
                           buildings           equipment           transportation
I. Original carrying value:
beginning of the          1,621,912,872.80   1,048,500,012.18      60,287,921.70        437,954,748.96   3,168,655,555.64
period
amount of the current       210,036,137.56    114,095,349.55        5,188,708.58         62,455,248.75    391,775,444.44
period
        (1)
Acquisition
        (2) Transfer-in
from construction in        195,202,456.30     62,630,617.33        1,951,532.50         46,714,964.61    306,499,570.74
progress
        (3) Increase
for business                                                        1,058,003.28                             1,058,003.28
combination
amount of the current         1,077,921.15     42,898,609.07        4,673,043.86         41,906,949.76     90,556,523.84
period
        (1) Disposal
or scraping
        (2)
Translation difference
of foreign-currency
statements
end of the period
II. Accumulated depreciation
beginning of the            615,646,942.08    618,535,788.21       45,621,237.26        347,969,259.05   1,627,773,226.60
period
amount of the current        80,900,530.04     71,280,624.30        5,722,555.86         53,669,862.75    211,573,572.95
period
        (1) Accruing         80,900,530.04     71,280,624.30        5,439,523.33         53,669,862.75    211,290,540.42
        (2) Increase
for business                                                            283,032.53                            283,032.53
combination
amount of the current           404,890.33     24,955,656.28        3,803,504.25         38,830,070.00     67,994,120.86
period
        (1) Disposal
or scraping
        (2)
Translation difference          404,890.33       1,573,577.49            39,713.44          313,567.79       2,331,749.05
of foreign-currency
                                                    Annual Report 2025
statements
end of the period
III. Impairment provisions
beginning of the             11,374,587.33        1,770,457.29                             21,480.83    13,166,525.45
period
amount of the current         1,643,743.47        1,160,474.34          21,439.40          76,040.71     2,901,697.92
period
         (1) Accruing         1,643,743.47        1,160,474.34          21,439.40          70,958.71     2,896,615.92
         (2)
Translation difference
of foreign-currency
statements
amount of the current
period
         (1) Disposal
or scraping
end of the period
IV. Carrying value
value at the end of the 1,121,710,176.62       451,905,064.80      13,241,858.15       95,596,474.61 1,682,453,574.18
period
value at the beginning     994,891,343.39      428,193,766.68      14,666,684.44       89,964,009.08 1,527,715,803.59
of the period
               Other descriptions: For fixed assets used as collaterals, see “1. Important Commitments” under
          Note “XVI. Commitments and Contingencies”.
        (2). Particulars on temporary idle fixed assets
        □ Applicable √ Not applicable
        (3). Particulars on fixed assets leased in under operating leases
        √ Applicable □ Not applicable
                                                                                Unit: Yuan      Currency: RMB
                            Item                                         Closing carrying value
        Property and Buildings                                                                      963,997.71
        (4). Fixed assets without proper certificates of title
        □ Applicable √ Not applicable
        (5). Impairment test of fixed assets
        □ Applicable √ Not applicable
        Other descriptions:
        □ Applicable √ Not applicable
        Disposal of fixed assets
        □ Applicable √ Not applicable
                                            Annual Report 2025
Presented by item
√ Applicable □ Not applicable
                                                                           Unit: Yuan    Currency: RMB
               Item                            Closing balance                    Opening balance
Construction in progress                                44,073,444.33                    148,515,963.08
Engineering materials
               Total                                    44,073,444.33                   148,515,963.08
Other descriptions:
□ Applicable √ Not applicable
Construction in progress
(1). Particulars on construction in progress
√ Applicable □ Not applicable
                                                                           Unit: Yuan   Currency: RMB
                             Closing balance                                Opening balance
                                  Impai                                          Impai
    Item            Carrying      rment                            Carrying      rment
                                          Carrying value                                 Carrying value
                    balance       provi                            Balance        provi
                                  sions                                           sions
Fixed assets
not yet
installed and
put into use
Others           9,925,791.19                9,925,791.19         14,850,222.42           14,850,222.42
Construction
works
     Total      44,073,444.33               44,073,444.33        148,515,963.08         148,515,963.08
(2). Changes in important construction in progress projects in the current period
□ Applicable √ Not applicable
(3). Particulars on impairment provisions accrued for construction in progress in the current
period
□ Applicable √ Not applicable
(4). Impairment test of construction in progress
□ Applicable √ Not applicable
Other descriptions
□ Applicable √ Not applicable
Engineering materials
(1). Particulars on engineering materials
□ Applicable √ Not applicable
                                                 Annual Report 2025
    (1). Productive biological assets using cost measurement model
    □ Applicable √ Not applicable
    (2). Impairment test of productive biological assets using cost measurement model
    □ Applicable √ Not applicable
    (3). Productive biological assets using fair value measurement model
    □ Applicable √ Not applicable
    Other descriptions:
    □ Applicable √ Not applicable
    (1). Particulars on oil and gas assets
    □ Applicable √ Not applicable
    (2). Impairment test of oil and gas assets
    □ Applicable √ Not applicable
    Other descriptions:
    No
    (1). Particulars on right-of-use assets
    √ Applicable □ Not applicable
                                                                              Unit: Yuan    Currency: RMB
                                    Property and          Transportation    Machinery and
            Item                                                                                  Total
                                     buildings               vehicles        equipment
I. Original carrying value
beginning of the period
the current period
        (1) New leases              315,038,902.11           1,292,272.42                       316,331,174.53
        (2) Increase for
business combination
        (3) Revaluation
                                       -3,985,679.70                                             -3,985,679.70
adjustment
the current period
        (1) Disposal                235,454,846.40                             170,119.08       235,624,965.48
        (2) Translation
difference of                            -543,610.93           -20,523.81                          -564,134.74
foreign-currency statements
the period
II. Accumulated depreciation
                                                              Annual Report 2025
beginning of the period
the current period
         (1) Accrual                          275,769,609.94               569,455.70                                   276,339,065.64
         (2) Increase for
business combination
the current period
         (1) Disposal                         216,458,089.44                                       45,365.12            216,503,454.56
the period
III. Impairment provisions
beginning of the period
the current period
         (1) Accrual
the current period
         (1) Disposal
the period
IV. Carrying value
end of the period
beginning of the period
    (2) Impairment test of right-of-use assets
    □ Applicable √ Not applicable
    Other descriptions:
    No
    (1). Particulars on intangible assets
    √ Applicable □ Not applicable
                                                                                              Unit: Yuan        Currency: RMB
                                                               Un
                                                               pat
                                                               ent
                                                               ed    Trademark use
        Item                 Land use right   Patent right                              Software          Others             Total
                                                               tec       rights
                                                               hn
                                                               olo
                                                               gy
I. Original carrying value
the beginning of the         380,364,083.24   21,223,867.74           90,298,953.53   54,527,858.98     35,612,250.69     582,027,014.18
period
amount of the                                  2,239,423.35                            9,250,308.20      2,481,634.15      13,971,365.70
current period
        (1)
Acquisition
                                                             Annual Report 2025
       (2) Internal
R&D
        (3) Increase
for business                                                                            85,533.48                         85,533.48
combination
        (4)
Transfer-in from
construction in
progress
amount of the                 1,840,339.11                           -6,802,219.30     106,705.66      -292,061.48    -5,147,236.01
current period
       (1) Disposal                                                                    106,705.66                       106,705.66
        (2)
Translation
difference of                 1,840,339.11                           -6,802,219.30                     -292,061.48    -5,253,941.67
foreign-currency
statements
end of the period
II. Accumulated amortization
the beginning of the         73,701,109.57    8,256,346.03           14,071,175.99   35,213,079.04   18,717,820.67   149,959,531.30
period
amount of the                 8,125,805.38    1,576,850.13            1,604,617.71    4,864,902.04    4,310,601.12    20,482,776.38
current period
       (1) Accruing           8,125,805.38    1,576,850.13            1,604,617.71    4,846,862.40    4,310,601.12    20,464,736.74
        (2) Increase
for business                                                                            18,039.64                         18,039.64
combination
amount of the                  351,270.55                            -1,823,439.76      21,800.00      -138,485.63    -1,588,854.84
current period
       (1) Disposal                                                                     21,800.00                         21,800.00
        (2)
Translation
difference of                  351,270.55                            -1,823,439.76                     -138,485.63    -1,610,654.84
foreign-currency
statements
the end of the               81,475,644.40    9,833,196.16           17,499,233.46   40,056,181.08   23,166,907.42   172,031,162.52
period
III. Impairment provisions
the beginning of the
period
amount of the
current period
       (1) Accruing
amount of the
current period
       (1) Disposal
the end of the
period
IV. Carrying value
value at the end of      297,048,099.73      13,630,094.93           79,601,939.37   23,615,280.44   15,219,038.90   429,114,453.37
the period
value at the
beginning of the
period
                                               Annual Report 2025
        Other descriptions: For intangible assets used as collaterals, see “1. Important Commitments” under
   Note “XVI. Commitments and Contingencies”.
        The proportion of intangible assets formed by the Company’s internal R&D at the end of the
   current period in the balance of intangible assets was 0.
   (2). Data resources recognized as intangible assets
   □ Applicable √ Not applicable
   (3). Particulars on use rights of land of which the property ownership certificates have not been
        obtained
   □ Applicable √ Not applicable
   (4). Impairment test of intangible assets
   □ Applicable √ Not applicable
   Other descriptions:
   □ Applicable √ Not applicable
   (1). Original carrying value of goodwill
   √ Applicable □ Not applicable
                                                                              Unit: Yuan     Currency: RMB
                                                 Increase of the current       Decrease of the
                                                         period                current period
Name of invested company        Opening
                                               Formed due to                                       Closing balance
or event forming goodwill       balance                                       Dispo
                                                  business         Others              Others
                                                                               sal
                                                combination
Shenzhen Erya Creative
and Cultural Development
Co., Ltd.（深圳尔雅文化创
意发展有限公司）
Axus Stationery (Shanghai)
Company Ltd.
Beckmann Holding AS          63,529,740.20                                                           63,529,740.20
Shanghai Mymybear
Enterprise Management
Co., Ltd. （上海沫沫班长
企业管理有限公司）
           Total             93,836,278.62       41,875,098.79                                     135,711,377.41
   (2). Impairment provisions of goodwill
   √ Applicable □ Not applicable
                                                                              Unit: Yuan     Currency: RMB
                                               Increase of the current    Decrease of the
   Name of invested
                               Opening                 period              current period
company or event forming                                                                         Closing balance
                               balance                                   Dispo
       goodwill                                Accrued         Others              Others
                                                                          sal
Shenzhen Erya Creative
and Cultural Development
Co., Ltd.（深圳尔雅文化
创意发展有限公司）
Axus Stationery
(Shanghai) Company Ltd.
                                                          Annual Report 2025
                     Total              30,306,538.42                                                                  30,306,538.42
           (3). Information regarding the asset group or the combination of asset groups to which goodwill
                 belongs
           √ Applicable □ Not applicable
                                                                                                                        Whether it is
                                 Composition and basis of the asset group or           Operating segments and             consistent
               Item
                                      combination of asset groups                               basis                      with the
                                                                                                                        previous year
                                The asset group comprises fixed assets,             These assets represent the
     Back to School
                                right-of-use assets, trademarks, customer           core traditional business
     Holding AS has
                                contracts, other intangible assets, lease           activities, where the
     assessed the asset
                                liabilities, deferred income tax assets,            Company offers various
     group containing                                                                                                  Yes
                                deferred income tax liabilities and goodwill.       products or services or
     goodwill as of the
                                The cash flows generated by this asset              engages in operational
     valuation reference
                                group or combination are independent of             activities in different
     date.
                                other assets or asset groups.                       regions.
     Shanghai Mymybear          The asset group comprises fixed assets,
     Enterprise                 intangible assets, right-of-used assets,            These assets represent the
     Management Co.,            long-term prepaid expenses, goodwill,               large retail store business
     Ltd. （上海沫沫班                deferred income tax assets, other                   activities, where the
     长企业管理有限公                   non-current assets, non-current liabilities         Company offers various             Not
     司）has assessed the         due within one year, lease liabilities and          products or services or            applicable
     asset group                deferred income tax liabilities. The cash           engages in operational
     containing goodwill        flows generated by this asset group or              activities in different
     as of the valuation        combination are independent of other assets         regions.
     reference date.            or asset groups.
           Changes in asset groups or combinations of asset groups
           □ Applicable √ Not applicable
           Other descriptions:
           □ Applicable √ Not applicable
           (4). Specific determination method for recoverable amount
           The recoverable amount is determined as the net fair value less disposal costs
           □ Applicable √ Not applicable
           The recoverable amount is determined as the present value of the expected future cash flows
           √ Applicable □ Not applicable
                                                                                   Unit: Yuan      Currency: RMB
                                                               Ye                                           Key
                                                         Im    ars                        Basis for     parameters
                                                         pai    of    Key parameters      determin     of the stable
                                                         rm    the    for the forecast      ing the        period       Basis for determining
                                         Recoverable
       Item            Carrying value                    ent   for    period (growth      paramete        (growth       key parameters for the
                                           amount
                                                         am    eca      rate, profit      rs for the    rate, profit        stable period
                                                         ou     st     margin, etc.)       forecast       margin,
                                                          nt   peri                         period        discount
                                                                od                                       rate, etc.)
Back to School                                                 Fiv    Projected           Based on     Steady-state     The operating revenue
Holding AS has
                                                               e      operating           the profit   operating        growth rate is
assessed the asset     161,268,220.21   169,322,400.00
group containing                                               yea    revenue growth      forecast     revenue          determined based on
goodwill as of the                                             rs     rate: 2.9% to       provided     growth rate:     the long-term CPI
                                                        Annual Report 2025
valuation reference                                              6.9%               by the       2%             growth rate in the
date.                                                            Projected profit   Compan       Post-tax       region where the asset
                                                                 margin: 10.8% to   y and        discount       group is located,
                                                                                    supporti                    discount rate is
                                                                                    ng                          determined according
                                                                                    evidence                    to the weighted
                                                                                                                average cost of capital
                                                                                                                model.
Shanghai                                                                            Based on
Mymybear                                                                            the profit
Enterprise                                                       Projected                       Steady-state
                                                                                    forecast
Management Co.,                                                  operating                       operating
                                                                                    provided                    The post-tax discount
Ltd. （上海沫沫班                                                Fiv   revenue growth                  revenue
                                                                                    by the                      rate is determined
长企业管理有限                                                    e     rate: 6.59% to                  growth rate:
公司）has assessed                                            yea   20.57%                          0%
                                                                                    y and                       weighted average cost
the asset group                                            rs    Projected profit                Post-tax
containing                                                                          relevant                    of capital model.
                                                                 margin: -0.7% to                discount
goodwill as of the                                                                  supporti
valuation reference                                                                 ng
date.                                                                               evidence
       Total          277,223,575.89   305,322,400.00        /           /               /            /                    /
                Other descriptions: For the current year, the Company hired Shanghai Lixin Appraisal Co., Ltd. to
          issue the Asset Appraisal Report on the Recoverable Amount of Goodwill Asset Groups Arising from the
          Acquisition of Back to School Holding AS (hereinafter referred to as “Beckmann”) by SHANGHAI
          M&G STATIONERY (SINGAPORE) PTE. LTD. Involved in the Goodwill Impairment Test Carried out
          by Shanghai M&G Stationery Inc. for the Purpose of Financial Reporting with the report number of
          LXA Ping Bao Zi [2026] No.090025 and the Asset Appraisal Report on the Recoverable Amount of
          Goodwill Asset Groups Arising from the Acquisition of Shanghai Mymybear Enterprise Management
          Co., Ltd.（上海沫沫班长企业管理有限公司）(hereinafter referred to as “Mymybear”) by Jiumu M&G
          Store Enterprise Management Co., Ltd.（九木杂物社企业管理有限公司）Involved in the Goodwill
          Impairment Test Carried out by Shanghai M&G Stationery Inc. for the Purpose of Financial Reporting
          with the report number of LXA Ping Bao Zi [2026] No.090024 on March 30, 2026. According to the
          appraisal results, as of December 31, 2025, the carrying value of the asset group or the combination of
          asset groups including goodwill of Beckmann and Mymybear acquired by the Company was
          RMB161.27 million and RMB115.96 million, respectively, and the recoverable amount was not lower
          than RMB169.32 million and RMB136.00 million, respectively; after the test, there was no impairment
          risk in the goodwill formed by the Company’s acquisition of Beckmann and Mymybear.
          The differences between the foregoing information and the data used in impairment testing in previous
          years, or external information, are due to apparent reasons
          □ Applicable √ Not applicable
          The reasons for the disparity between the information used in impairment testing in previous years and
          the actual situation of the current year are evident for the Company
          □ Applicable √ Not applicable
          (5). Performance commitments and corresponding goodwill impairment
          Performance commitments existed at the time goodwill was formed and are within the performance
          commitment period in the current period or the previous period
          □ Applicable √ Not applicable
          Other descriptions:
          □ Applicable √ Not applicable
                                                         Annual Report 2025
         √ Applicable □ Not applicable
                                                                                         Unit: Yuan      Currency: RMB
                                               Increase      Amortization         Other        Increase for
                               Opening
            Item                            amount of the    amount of the      decrease         business      Closing balance
                               balance
                                            current period   current period      amounts       combination
       Decoration fee      109,306,971.70   74,714,447.37    70,232,194.88      -351,840.68    5,775,495.27    119,916,560.14
       Others                3,490,550.21    5,421,179.43     3,501,377.43      -936,647.18                      6,346,999.39
            Total          112,797,521.91   80,135,626.80    73,733,572.31    -1,288,487.86    5,775,495.27    126,263,559.53
         Other descriptions:
           The other decrease amounts are foreign exchange translation difference.
         (1). Unoffset deferred income tax assets
         √ Applicable □ Not applicable
                                                                                         Unit: Yuan      Currency: RMB
                                                              Closing balance                           Opening balance
                        Item                          Deductible       Deferred income           Deductible      Deferred income
                                                       temporary              tax                temporary             tax
                                                      differences           Assets               differences         Assets
Impairment provisions of assets                      137,338,051.99      33,315,819.94          120,844,446.20     28,998,769.34
Unrealized profits from internal transactions        191,299,636.78      31,061,479.70          141,035,187.99     23,285,906.53
Deductible losses
Changes in fair value of financial assets                 46,320.08            10,190.42          2,408,051.41           529,771.31
Deferred income                                       15,667,877.83         2,804,469.78         34,595,802.71         5,845,382.03
Depreciation or amortization difference              124,422,523.56        31,105,630.89        185,155,781.39        46,282,052.13
Time difference in revenue recognition               101,000,869.80        25,173,489.36         67,108,025.22        16,766,417.03
Changes in lease liabilities                         427,581,608.67       101,141,280.44        399,376,748.00        95,921,485.73
                     Total                           997,356,888.71       224,612,360.53        950,524,042.92       217,629,784.10
         (2). Unoffset deferred income tax liabilities
         √ Applicable □ Not applicable
                                                                                         Unit: Yuan       Currency: RMB
                                                           Closing balance                            Opening balance
                    Item                            Taxable         Deferred income             Taxable        Deferred income
                                                   temporary               tax                 temporary              tax
                                                   differences          liabilities            differences         liabilities
  Assets appreciation for business
  combination not under the common               139,812,616.37          25,297,433.26        155,090,164.84        28,249,671.71
  control
  Changes in fair value of other debt
  investments
  Changes in fair value of other equity
  instrument investments
  Depreciation or amortization difference         67,704,242.02         14,894,933.24          63,733,938.58        14,021,466.49
  Time difference in cost recognition             94,285,462.11         23,494,637.44          62,531,670.08        15,622,328.23
  Changes in right-of-use assets                 439,544,777.86        104,095,294.65         411,719,344.82        98,624,099.41
  Changes in fair value of trading
  financial assets
                   Total                         857,185,213.90        187,524,882.52         779,168,069.88      170,671,488.51
                                                Annual Report 2025
     (3). Deferred income tax assets or liabilities presented on a net basis after offsetting
     □ Applicable √ Not applicable
     (4). Details of unrecognized deferred income tax assets
     √ Applicable □ Not applicable
                                                                                Unit: Yuan   Currency: RMB
                     Item                           Closing balance                    Opening balance
     Deductible temporary differences                        95,317,231.85                     80,773,622.60
     Deductible losses                                     603,354,380.45                     518,009,519.82
                     Total                                 698,671,612.30                     598,783,142.42
     (5). The deductible losses of unrecognized deferred income tax assets will expire in the following
            years
     √ Applicable □ Not applicable
                                                                               Unit: Yuan   Currency: RMB
               Year               Closing balance           Opening balance                  Note
              Total                     603,354,380.45               518,009,519.82             /
     Other descriptions:
     □ Applicable √ Not applicable
     √ Applicable □ Not applicable
                                                                                Unit: Yuan   Currency: RMB
                                  Closing balance                                   Opening balance
                                     Impairmen
      Item             Carrying                      Carrying           Carrying      Impairment      Carrying
                                          t
                       balance                        value             balance        provisions      value
                                     provisions
Contract
acquisition cost
Contract
performance cost
Receivable
return cost
Contract assets
Prepayments for
real estate,
engineering,
equipment, etc.
       Total          4,753,846.49                  4,753,846.49      19,704,965.34                 19,704,965.34
     Other descriptions:
     No
                                                                Annual Report 2025
              √ Applicable □ Not applicable
                                                                                                   Unit: Yuan       Currency: RMB
                                 At the end of the period                                           At the beginning of the period
   Item                                               Type of      Restriction                                              Type of      Restriction
              Carrying balance   Carrying value                                    Carrying balance    Carrying value
                                                     restriction     details                                               restriction     details
Cash and
equivalents
Bills
receivable
Inventories
Including:
data
resources
Fixed                                                              Mortgaged                                                             Mortgaged
assets                                                             borrowings                                                            borrowings
Intangible                                                         Mortgaged                                                             Mortgaged
assets                                                             borrowings                                                            borrowings
Including:
data
resources
Cash and                                                           Performance                                                           Performance
equivalents                                                        bonds, letter                                                         bonds, letter
- Other         22,409,291.17      22,409,291.17     Pledge        of credit           5,977,684.75        5,977,684.75    Pledge        of credit
cash and                                                           deposits,                                                             deposits,
equivalents                                                        etc.                                                                  etc.
                                                                   Fixed-term                                                            Fixed-term
Cash and
                                                                   deposits                                                              deposits
equivalents
- Cash at
                                                                   three                                                                 three
bank
                                                                   months                                                                months
Cash and
                                                                                                                                         Project
equivalents
- Cash at
                                                                                                                                         deposits
bank
                                                                   Bank
Cash and
                                                                   guarantees
equivalents                                                                                                                              Trading
- Cash at                                                                                                                                deposits
                                                                   litigation
bank
                                                                   freezes
Cash and
equivalents
                                                                   Trading
- Other          1,016,987.58       1,016,987.58     Frozen
                                                                   deposits
cash and
equivalents
                                                                                                                                         A time
                                                                                                                                         deposit that
                                                                                                                                         matures
Other
                                                                                                                                         within one
current                                                                              141,000,000.00      141,000,000.00    Pledge
                                                                                                                                         year and is
assets
                                                                                                                                         used as
                                                                                                                                         performance
                                                                                                                                         bond
Investment                                                         Mortgaged                                                             Mortgaged
real estate                                                        borrowings                                                            borrowings
   Total      1,385,655,700.23   1,224,287,885.02                                  1,723,177,636.68    1,578,882,834.31         /              /
              Other descriptions:
                   For the current year, the amount of continuing involvement in bills receivable that have been
              endorsed or discounted but are not yet due was RMB39,233,234.14, compared with RMB11,149,017.23
              in the prior year.
                                             Annual Report 2025
    For the current year, the amount of continuing involvement in digital credit certificates that have
been endorsed or discounted but are not yet due was RMB10,446,427.33, compared with
RMB9,926,137.03 in the prior year.
(1). Classification of short-term borrowings
√ Applicable □ Not applicable
                                                                    Unit: Yuan    Currency: RMB
              Item                           Closing balance             Opening balance
Pledged borrowings                                   30,000,000.00              321,000,000.00
Mortgaged borrowings                                190,000,000.00
Guaranteed borrowings
Credit borrowings                                    24,960,000.00               19,880,000.00
Borrowing interest expenses                              171,111.12                 181,169.83
             Total                                  245,131,111.12              341,061,169.83
Description on classification of short-term borrowings:
    See 1. “Important Commitments” under “Note XVI. Commitments and Contingencies”.
(2). Particulars on overdue but yet unrepaid short-term borrowings
□ Applicable √ Not applicable
Particulars of important overdue but yet unrepaid short-term borrowings:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
√ Applicable □ Not applicable
                                                                           Unit: Yuan   Currency: RMB
              Item                              Closing balance                   Opening balance
Foreign exchange derivatives                                 46,320.08
              Total                                          46,320.08
Other descriptions:
No
(1). Presentation of notes payable
□ Applicable √ Not applicable
(1). Presentation of accounts payable
√ Applicable □ Not applicable
                                          Annual Report 2025
                                                                          Unit: Yuan   Currency: RMB
             Item                       Closing balance                       Opening balance
Within one year                               5,696,945,775.67                        4,738,062,847.51
One to two years                                212,733,094.27                          216,444,348.99
Two to three years                               48,270,453.48                           43,336,096.68
Above three years                                22,443,255.77                            8,643,270.02
            Total                             5,980,392,579.19                        5,006,486,563.20
(2). Accounts payable with the account age over one year or overdue
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
(1). Presentation of accounts received in advance
√ Applicable □ Not applicable
                                                                          Unit: Yuan    Currency: RMB
             Item                         Closing balance                       Opening balance
Rent received in advance                             3,378,737.08
             Total                                   3,378,737.08
(2). Significant accounts received in advance with an age of more than one year
□ Applicable √ Not applicable
(3). Amount of and reason for significant changes in carrying value during the Reporting Period
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
(1). Contract liabilities
√ Applicable □ Not applicable
                                                                          Unit: Yuan    Currency: RMB
              Item                        Closing balance                       Opening balance
Loans                                               57,820,365.32                        62,270,073.96
Membership points                                   20,263,759.52                        21,223,869.00
Vouchers                                            64,093,926.55                        59,853,460.48
           Total                                   142,178,051.39                       143,347,403.44
(2). Significant contract liabilities with an age of more than one year
□ Applicable √ Not applicable
(3). Amount of and reason for significant changes in carrying value during the Reporting Period
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
                                             Annual Report 2025
 (1). Presentation of employee benefits payable
 √ Applicable □ Not applicable
                                                                             Unit: Yuan   Currency: RMB
                                                    Increase of the       Decrease of the      Closing
           Item                 Opening balance
                                                    current period         current period      balance
 I. Short-term benefits          180,543,619.89    1,107,868,875.77       1,092,132,618.45 196,279,877.21
 II. Post-employment
 benefits - Defined                8,946,459.40      129,779,790.15         126,291,800.19      12,434,449.36
 contribution plans
 III. Termination benefits                              3,214,312.74          2,097,274.74       1,117,038.00
 IV. Other benefits due
 within one year
            Total                189,490,079.29    1,240,862,978.66       1,220,521,693.38     209,831,364.57
 (2). Presentation of short-term benefits
 √ Applicable □ Not applicable
                                                                             Unit: Yuan      Currency: RMB
                                                   Increase of the       Decrease of the
           Item              Opening balance                                                 Closing balance
                                                   current period        current period
 I. Salary, bonus,
 allowance and subsidy
 II. Employee benefits                  240.00        8,639,890.72          8,631,090.32            9,040.40
 III. Social insurance            4,937,241.33       77,086,836.16         76,567,084.85        5,456,992.64
 Including: Medical
 insurance
            Work-related
 injury insurance
            Maternity
 insurance
 IV. Housing provident
 fund
 V. Labor union and
 employee education                437,114.18         1,698,559.31          1,682,261.42         453,412.07
 funds
 VI. Short-term
 compensated absences
 VII. Short-term profit
 sharing plan
 VIII. Other short-term
 benefits
           Total                180,543,619.89    1,107,868,875.77     1,092,132,618.45      196,279,877.21
 (3). Presentation of defined contribution plans
 √ Applicable □ Not applicable
                                                                            Unit: Yuan     Currency: RMB
                                      Opening          Increase of the     Decrease of the
             Item                                                                           Closing balance
                                       balance         current period      current period
              Total                   8,946,459.40     129,779,790.15       126,291,800.19      12,434,449.36
                                         Annual Report 2025
Other descriptions:
□ Applicable √ Not applicable
√ Applicable □ Not applicable
                                                                          Unit: Yuan   Currency: RMB
                   Item                            Closing balance                Opening balance
Value added tax (“VAT”)                                 71,935,247.70                    67,364,971.75
Consumption tax
Business tax
Enterprise income tax                                    147,742,637.85                141,700,868.38
Personal income tax                                       12,264,552.03                 11,797,380.30
Urban maintenance and construction tax                     5,138,634.36                  4,707,859.62
Property tax                                               4,252,883.93                  3,770,165.05
Education surcharge                                        4,072,214.96                  3,797,795.50
Land use tax                                                 339,610.60                    237,892.23
Stamp duty                                                 4,269,269.50                  3,927,147.11
Others                                                           506.00                      8,653.25
                   Total                                 250,015,556.93                237,312,733.19
Other descriptions:
No
(1). Presented by item
√ Applicable □ Not applicable
                                                                          Unit: Yuan    Currency: RMB
                Item                        Closing balance                      Opening balance
Interest payable
Dividend payable
Other payables                                      534,646,908.51                     518,745,735.51
                Total                               534,646,908.51                     518,745,735.51
Other descriptions:
□ Applicable √ Not applicable
(2). Interest payable
Presentation by category
□ Applicable √ Not applicable
Significant interest payable overdue:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
(3). Dividend payable
Presentation by category
□ Applicable √ Not applicable
                                            Annual Report 2025
(4). Other payables
Other payables presented by amount nature
√ Applicable □ Not applicable
                                                                             Unit: Yuan   Currency: RMB
               Item                           Closing balance                      Opening balance
Margin and deposit                                   201,684,729.87                        185,153,547.16
Product license fee                                    18,317,000.00                        12,643,000.00
Estimated fees                                       258,829,636.53                        267,581,460.00
Engineering and decoration fund                         8,733,233.20                        19,886,522.63
Others                                                 47,082,308.91                        33,481,205.72
               Total                                 534,646,908.51                        518,745,735.51
Significant other payables with the account age over one year or overdue
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
□ Applicable √ Not applicable
√ Applicable □ Not applicable
                                                                        Unit: Yuan   Currency: RMB
                     Item                           Closing balance            Opening balance
Long-term borrowings due within one year                      29,698.35                 4,008,983.34
Bonds payable due within one year
Long-term payables due within one year
Lease liabilities due within one year                       213,399,856.12                200,592,728.05
                     Total                                  213,429,554.47                204,601,711.39
Other descriptions:
No
Particulars on other current liabilities
√ Applicable □ Not applicable
                                                                             Unit: Yuan   Currency: RMB
                 Item                              Closing balance                   Opening balance
Short-term bonds payable
Return amount payable                                        103,493,695.13                 68,885,061.74
Output tax to be written off                                   6,485,535.28                  6,568,492.61
Receivables that cannot be derecognized                       49,679,661.47                 21,075,154.26
Advance from shareholders                                      4,750,000.00
Others                                                                                       2,408,051.41
                  Total                                      164,408,891.88                 98,936,760.02
                                              Annual Report 2025
Changes in short-term bonds payable:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
(1). Classification of long-term borrowings
√ Applicable □ Not applicable
                                                                              Unit: Yuan   Currency: RMB
               Item                           Closing balance                       Opening balance
Pledged borrowings
Mortgaged borrowings                                    31,998,000.00                            6,000,000.00
Guaranteed borrowings
Credit borrowings                                        4,000,000.00
               Total                                    35,998,000.00                            6,000,000.00
Notes to the classification of long-term borrowings:
No
Other descriptions:
□ Applicable √ Not applicable
(1). Bonds payable
□ Applicable √ Not applicable
(2). Changes in bonds payable: (excluding other financial instruments such as preferred shares
     classified as financial liabilities and perpetual bonds)
□ Applicable √ Not applicable
(3). Description on convertible corporate bonds
□ Applicable √ Not applicable
Accounting for transfers of equity and basis of judgment
□ Applicable √ Not applicable
(4). Description on other financial instruments classified as financial liabilities
Basic information on other financial instruments such as outstanding preferred shares and perpetual
bonds at the end of the period
□ Applicable √ Not applicable
Form of changes in financial instruments such as outstanding preferred shares and perpetual bonds at the
end of the period
□ Applicable √ Not applicable
Description on the basis for classification of other financial instruments as financial liabilities:
□ Applicable √ Not applicable
Other descriptions:
                                              Annual Report 2025
□ Applicable √ Not applicable
√ Applicable □ Not applicable
                                                                          Unit: Yuan   Currency: RMB
                      Item                              Closing balance           Opening balance
Long-term lease liabilities                                  427,999,385.28             399,697,915.76
Less: Lease liabilities due within one year                 -213,399,856.12            -200,592,728.05
                      Total                                  214,599,529.16             199,105,187.71
Other descriptions:
No
Presented by item
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Long-term payables
(1). Long-term payables presented by amount nature
□ Applicable √ Not applicable
Special payables
(1). Special payables presented by amount nature
□ Applicable √ Not applicable
□ Applicable √ Not applicable
√ Applicable □ Not applicable
                                                                           Unit: Yuan   Currency: RMB
             Item                   Closing balance           Opening balance      Cause of formation
External guarantee
Pending litigation                            500,000.00            369,927.50   Civil lawsuit
Product quality assurance
Restructuring obligations
Onerous contract to be
implemented
Return amount payable
Others
            Total                             500,000.00            369,927.50              /
Other descriptions, including descriptions on important assumptions and estimates related to important
estimated liabilities:
No
                                             Annual Report 2025
Particulars on deferred income
√ Applicable □ Not applicable
                                                                             Unit: Yuan     Currency: RMB
                                                        Decrease of
                       Opening      Increase of the                          Closing           Cause of
     Item                                               the current
                       balance      current period                           balance          formation
                                                          period
                                                                                            Government
Government
subsidies
                                                                                            received
     Total          34,963,559.04     9,000,000.00     28,075,925.44       15,887,633.60            /
Other descriptions:
□ Applicable √ Not applicable
□ Applicable √ Not applicable
√ Applicable □ Not applicable
                                                                             Unit: Yuan     Currency: RMB
                                  Increase or decrease (+ or -) due to this change
             Opening                        Provident
                            Issue                                                           Closing balance
             balance               Bonus       funds
                             new                              Others           Subtotal
                                   shares transferred
                           shares
                                              shares
Total
shares
Other descriptions:
     The Company convened the 10th meeting of the 6th Board of Directors on March 24, 2025 and the
Re-purposing Part of the Repurchased Shares and Retiring Such Shares was reviewed and approved. It
was approved that the purpose of the repurchased shares under the 2022 Share Repurchase Plan held in
the special securities account for repurchased shares be changed from “to be used for equity incentives
or employee stock ownership plans” to “to be retired and to reduce the registered capital accordingly”.
Specifically, the Company will retire 2,858,043 shares in the special securities account for repurchased
shares and reduce its registered capital accordingly.
     The quantity of shares repurchased and canceled in this instance amounts to 2,858,043 shares, with
a decrease of RMB150,012,246.20 in treasury shares, a decrease of RMB2,858,043.00 in share capital
and a decrease of RMB147,154,203.20 in capital reserve.
(1). Basic information on other financial instruments such as outstanding preferred shares and
     perpetual bonds at the end of the period
□ Applicable √ Not applicable
(2). Form of changes in financial instruments such as outstanding preferred shares and perpetual
     bonds at the end of the period
□ Applicable √ Not applicable
Changes in other equity instruments of the current period, reasons for changes, and basis for relevant
accounting treatment:
                                                       Annual Report 2025
       □ Applicable √ Not applicable
       Other descriptions:
       □ Applicable √ Not applicable
       √ Applicable □ Not applicable
                                                                                        Unit: Yuan  Currency: RMB
                                                       Increase of the           Decrease of the
             Item            Opening balance                                                       Closing balance
                                                       current period            current period
       Capital premium
       (Share premium)
       Other capital
       reserve
             Total             840,320,493.39             21,282,881.10            147,154,203.20           714,449,171.29
       Other descriptions, including descriptions on changes of the current period and reasons for changes:
            (1) As stated in Note VII (53), the capital reserve was decreased by RMB147,154,203.20 due to the
       repurchase of shares.
            (2) The amount of other changes in equity recognized as capital reserve in subsidiaries of the
       Company during the year was RMB21,282,881.10.
       √ Applicable □ Not applicable
                                                                                         Unit: Yuan         Currency: RMB
                                                       Increase of the           Decrease of the
             Item            Opening balance                                                               Closing balance
                                                       current period            current period
       Repurchase
       through the stock       251,095,546.75             48,957,706.02            150,012,246.20           150,041,006.57
       exchange
             Total             251,095,546.75             48,957,706.02            150,012,246.20           150,041,006.57
       Other descriptions, including descriptions on changes of the current period and reasons for changes:
            (1) According to the Proposal on the Plan for Share Repurchase through the Stock Exchange,
       which was approved at the 8th meeting of the 6th session of the Board of Directors, the Company
       repurchased, through the stock exchange, treasury shares with a total amount of RMB48,957,706.02 in
       the current year.
            (2) As detailed in Note VII (53) to these financial statements, treasury shares were decreased by
       RMB150,012,246.20 during the year due to share repurchases.
       √ Applicable □ Not applicable
                                                                                          Unit: Yuan        Currency: RMB
                                                       Amount accounted for in the current period
                                                Less:         Less:
                                              Include      Included
                                                 d in       in other
                                Amount          other      comprehe
                                                                                         Attributable to   Attributable to
              Opening           incurred      compre         nsive         Less:                                              Closing
Item                                                                                       the parent         minority
              balance        before income    hensive     income in    Income tax                                             balance
                                                                                         company after      shareholders
                               tax for the     income          the       expenses
                                                                                             the tax        after the tax
                             current period     in the      previous
                                              previous period and
                                                period   transferred
                                                 and      to retained
                                                              Annual Report 2025
                                                  transferr      earnings
                                                    ed to          in the
                                                  profit or       current
                                                   loss in        period
                                                     the
                                                   current
                                                   period
I. Other
comprehensiv
e income not
to be              7,385,207.44    -269,836.42                                 35,676.01     -305,512.43                   7,079,695.01
reclassified
into profit or
loss
Including:
Change in
re-measureme
nt of defined
benefit plans
   Other
comprehensiv
e income that
may not be
reclassified to
profit or loss
under equity
method
   Changes in
fair value of
other equity       5,932,964.59     237,840.06                                 35,676.01     202,164.05                    6,135,128.64
instrument
investments
   Change in
fair value of
enterprise’s
own credit
risk
II. Other
comprehensiv
e income to be
                  -18,808,658.75   9,452,780.88                               519,580.89   11,138,238.91   -2,205,038.92   -7,670,419.84
reclassified
into profit or
loss
Including:
Other
comprehensiv
e income that
may be                -92,328.13   1,943,649.32                                             1,943,649.32                   1,851,321.19
reclassified to
profit or loss
under equity
method
   Changes in
fair value of
other debt
investments
   Amount
included in
other
comprehensiv
e income on
reclassificatio
n of financial
assets
   Credit
impairment
                                                        Annual Report 2025
provisions of
other debt
investments
   Cash flow
hedging           -1,812,835.38   2,296,286.61                          519,580.89     1,776,705.72                      -36,129.66
reserve
   Exchange
differences
from
                 -16,903,495.24   5,212,844.95                                         7,417,883.87   -2,205,038.92   -9,485,611.37
translation of
financial
statements
Total other
comprehensiv     -11,423,451.31   9,182,944.46                          555,256.90    10,832,726.48   -2,205,038.92     -590,724.83
e income
            Other descriptions, including the adjustment of the effective portion of cash flow hedging profit or loss
            transferred to the initial recognition amount of the hedged item:
            No
            □ Applicable √ Not applicable
            √ Applicable □ Not applicable
                                                                                       Unit: Yuan    Currency: RMB
                                                               Increase of the       Decrease of the
                   Item                 Opening balance                                                 Closing balance
                                                               current period        current period
     Statutory surplus reserve           464,201,654.91                                                  464,201,654.91
     Arbitrary surplus reserve
     Reserve fund
     Enterprise development fund
     Others
                  Total                  464,201,654.91                                                   464,201,654.91
            Descriptions on surplus reserve, including descriptions on changes of the current period and reasons for
            changes:
                The statutory surplus reserve is accrued at 10% of the parent company’s net profits and is capped at
            √ Applicable □ Not applicable
                                                                                        Unit: Yuan    Currency: RMB
                                    Item                                     Current period           Previous period
         Pre-adjustment undistributed profits at the end of the
         previous period
         Total adjustment amount of undistributed profits at the
         beginning of the period (“+” refers to increase by
         adjustment and “-” refers to decrease by adjustment)
         Post-adjustment amount of undistributed profits at the
         beginning of the period
         Add: Net profit attributable to shareholders of the parent
         company in the current period
         Less: Statutory surplus reserve accrued
                                                                             Annual Report 2025
                 Arbitrary surplus reserve accrued
                 Withdrawal of general risk provision
                 Dividends on common shares payable                                                   915,795,377.00                      738,990,821.60
                 Dividends on common shares converted to stock
            capital
            Undistributed profit at the end of the period                                            7,338,681,217.85                    6,944,027,602.89
                  Details on adjustment of undistributed profits at the beginning of the period:
                  their related new regulations, the affected undistributed profit at the beginning of the period was
                  RMB0.00.
                  was RMB0.00.
                  the period was RMB0.00.
                  combination under common control, the affected undistributed profit at the beginning of the period was
                  RMB0.00.
                  RMB0.00.
                  (1). Particulars on revenue and operating costs
                  √ Applicable □ Not applicable
                                                                                                             Unit: Yuan     Currency: RMB
                                              Amount accounted for in the current                     Amount accounted for in the previous
                       Item                                 period                                                   period
                                                Revenue                Costs                             Revenue                 Costs
            Main operations                 25,004,637,548.36    20,424,594,798.09                   24,170,660,271.82     19,619,066,898.47
            Other operations                    59,272,288.11        38,219,165.21                       57,588,426.83         30,685,661.00
                  Total                     25,063,909,836.47    20,462,813,963.30                   24,228,248,698.65     19,649,752,559.47
                  (2). Information on the breakdown of revenue and operating costs
                  √ Applicable □ Not applicable
                                                                                                                Unit: Yuan           Currency: RMB
                          Traditional business               Direct office supplies business           Inter-branch offset                               Total
 Classification
                                        Operating                               Operating                            Operating                                   Operating
  of contracts          Revenue                                Revenue                               Revenue                                Revenue
                                          costs                                    costs                                costs                                      costs
Types of goods
goods
fee for                     485,849.00                                                                                                          485,849.00
franchising
and software
income
service
Classification
by operation
territory
                                                                            Annual Report 2025
countries
Classification
by the time of
goods transfer
at a specific        10,166,622,878.72   6,545,336,830.62   15,048,206,300.07   14,068,895,343.98   -162,153,722.34   -159,710,896.40    25,052,675,456.45   20,454,521,278.20
point in time
within a
specific time
period
      Total          10,166,622,878.72   6,545,336,830.62   15,048,206,300.07   14,068,895,343.98   -162,153,722.34   -159,710,896.40    25,052,675,456.45   20,454,521,278.20
                 Other descriptions:
                 □ Applicable √ Not applicable
                 (3). Description on performance obligations
                 □ Applicable √ Not applicable
                 (4). Description on allocation to remaining performance obligations
                 □ Applicable √ Not applicable
                 (5). Significant contract changes or significant transaction price adjustments
                 □ Applicable √ Not applicable
                 Other descriptions:
                                                                                                           Unit: Yuan     Currency: RMB
                                                                                        Amount in the current      Amount in the last
                                               Item
                                                                                              period                     period
                  Description on revenue from customer contracts                           25,052,675,456.45          24,218,767,480.33
                  Rental income                                                                 11,234,380.02              9,481,218.32
                                      Total                                                25,063,909,836.47          24,228,248,698.65
                 √ Applicable □ Not applicable
                                                                                                               Unit: Yuan    Currency: RMB
                                                                  Amount accounted for in the                  Amount accounted for in the
                                  Item
                                                                       current period                                previous period
                 Consumption tax
                 Business tax
                 Urban maintenance and
                 construction tax
                 Education surcharge                                                     31,320,876.65                                  29,905,670.30
                 Resource tax
                 Property tax                                                            16,043,954.13                                  15,124,917.89
                 Land use tax                                                             1,468,334.78                                   1,267,099.83
                 Taxes and surcharges
                 Stamp duty                                                             14,686,752.60                                   13,952,936.42
                 Others                                                                    123,412.21                                      160,252.54
                              Total                                                    100,390,340.73                                   95,645,558.71
                 Other descriptions:
                 No
                                         Annual Report 2025
√ Applicable □ Not applicable
                                                                     Unit: Yuan    Currency: RMB
                                       Amount accounted for in the    Amount accounted for in the
                Item
                                            current period                  previous period
Salaries and benefits                              480,803,215.92                   463,856,805.74
Channel construction fee                           154,292,542.04                   157,597,672.44
Depreciation and amortization                      227,119,788.26                   199,413,845.99
Brand promotion fee                                131,999,447.30                   122,371,874.05
Business promotion fee                             206,723,945.78                   174,530,342.37
Others                                             659,205,691.73                   620,269,069.02
                Total                            1,860,144,631.03                 1,738,039,609.61
Other descriptions:
No
√ Applicable □ Not applicable
                                                                     Unit: Yuan     Currency: RMB
                                              Amount accounted for in     Amount accounted for in
                      Item
                                                the current period           the previous period
Salaries and benefits                                   452,014,997.62              415,620,864.74
Depreciation and amortization                           154,644,281.65              155,964,622.72
Office expense                                           22,184,626.64                20,262,468.64
Share-based Payments                                     27,362,922.48                75,565,518.76
Others                                                  310,025,022.24              314,389,373.35
                    Total                               966,231,850.63              981,802,848.21
Other descriptions:
No
√ Applicable □ Not applicable
                                                                     Unit: Yuan     Currency: RMB
                                              Amount accounted for in     Amount accounted for in
                      Item
                                                the current period           the previous period
Salaries and benefits                                   121,078,253.59              108,773,449.55
Inventory consumption                                    42,408,392.42                45,025,440.91
Others                                                   26,152,708.86                35,347,090.20
                    Total                               189,639,354.87              189,145,980.66
Other descriptions:
No
√ Applicable □ Not applicable
                                                                     Unit: Yuan     Currency: RMB
                                              Amount accounted for in     Amount accounted for in
                      Item
                                                the current period           the previous period
Interest expense                                         27,831,891.86                27,331,016.15
Including: Interest expense of lease                     20,771,027.05                19,277,519.25
                                           Annual Report 2025
liabilities
Less: Interest income                                        -35,152,616.54                 -64,177,866.11
Exchange gains and losses                                     -6,225,653.72                 -11,521,794.93
Others                                                         8,470,151.42                   8,744,909.87
                    Total                                     -5,076,226.98                 -39,623,735.02
Other descriptions:
No
√ Applicable □ Not applicable
                                                                             Unit: Yuan     Currency: RMB
                                       Amount accounted for in the           Amount accounted for in the
 Classification based on nature
                                            current period                          previous period
Government subsidies                                118,760,958.97                          105,118,017.62
Input tax credits                                    10,776,241.33                            26,605,598.57
Handling charge on withholding
personnel income tax
Direct VAT relief                                          3,250.00                              7,800.00
              Total                                  130,489,651.94                        132,438,188.72
Other descriptions:
No
√ Applicable □ Not applicable
                                                                             Unit: Yuan    Currency: RMB
                                           Amount accounted for in the        Amount accounted for in the
                  Item
                                                current period                       previous period
Long-term equity investment income
accounted for under the equity method
Investment income from disposal of
long-term equity investment
Investment income from
held-for-trading financial assets during
the holding period
Dividend income from other equity
instrument investments during the
holding period
Interest income from debt investment
during the holding period
Interest income from other debt
investments during the holding period
Investment income from disposal of
held-for-trading financial assets
Investment income from disposal of
other equity instrument investments
Investment income from disposal of
debt investment
Investment income from disposal of
other debt investments
Gains from debt restructuring
                   Total                                    9,895,830.01                       -364,758.05
Other descriptions:
                                            Annual Report 2025
No
□ Applicable √ Not applicable
√ Applicable □ Not applicable
                                                                            Unit: Yuan    Currency: RMB
 Sources of income from changes in         Amount accounted for in the       Amount accounted for in the
               fair value                       current period                     previous period
Held-for-trading financial assets                       58,155,252.93                       54,361,789.99
Including: Income from changes in
fair value of derivative financial
instruments
Held-for-trading financial liabilities
Investment real estate measured at
fair value
                 Total                                   58,155,252.93                     54,361,789.99
Other descriptions:
No
√ Applicable □ Not applicable
                                                                            Unit: Yuan    Currency: RMB
                                             Amount accounted for in the     Amount accounted for in the
                  Item
                                                  current period                    previous period
Bad debt losses of notes receivable                        3,412,048.47                       -766,192.55
Bad debt losses of accounts receivable                   14,743,023.58                      22,408,405.72
Bad debt losses of other receivables                       4,717,813.84                      6,768,653.98
Impairment losses of debt investment
Impairment losses of other debt
investments
Bad debt losses of long-term receivables
Impairment losses related to financial
guarantee
                 Total                                      22,872,885.89                  28,410,867.15
Other descriptions:
No
√ Applicable □ Not applicable
                                                                            Unit: Yuan    Currency: RMB
                                           Amount accounted for in          Amount accounted for in the
                 Item
                                             the current period                   previous period
I. Impairment losses of contract
assets
II. Loss for decline in value of
inventories and loss for impairment                     6,474,305.31                        1,482,316.16
of contract performance cost
III. Impairment losses of long-term
equity investment
IV. Impairment losses of investment
real estate
                                             Annual Report 2025
V. Impairment losses of fixed assets                     2,896,615.92                     11,396,995.52
VI. Impairment losses of engineering
materials
VII. Impairment losses of
construction in progress
VIII. Impairment losses of productive
biological assets
IX. Impairment losses of oil and gas
assets
X. Impairment losses of intangible
assets
XI. Impairment losses of goodwill
XII. Others
                 Total                                   9,370,921.23                     12,879,311.68
Other descriptions:
No
√ Applicable □ Not applicable
                                                                           Unit: Yuan     Currency: RMB
                                        Amount accounted for in the        Amount accounted for in the
              Item
                                             current period                       previous period
Gaines or losses from disposal of
                                                        -2,717,992.09                       -148,497.50
fixed assets
Gaines or losses from disposal of
                                                          -129,913.06                        138,212.61
right-of-use assets
              Total                                     -2,847,905.15                        -10,284.89
Other descriptions:
No
Particulars on non-operating profits
√ Applicable □ Not applicable
                                                                           Unit: Yuan     Currency: RMB
                                 Amount accounted         Amount accounted        Amount included in the
            Item                  for in the current      for in the previous      current non-recurring
                                        period                   period              gains and losses
Total gains from disposal of
non-current assets
Including: Gains from
disposal of fixed assets
            Gains from
disposal of intangible assets
Gains from exchange of
non-currency assets
Donations received
Government subsidies                    67,250,000.00             50,495,805.49           67,250,000.00
Liquidated damages and fine
income
Others                                   4,231,382.37              3,543,640.12            4,231,382.37
            Total                       75,631,491.35             78,129,813.59           75,631,491.35
                                                 Annual Report 2025
      Other descriptions:
      □ Applicable √ Not applicable
      √ Applicable □ Not applicable
                                                                               Unit: Yuan      Currency: RMB
                                                                                             Amount included in the
                                      Amount accounted for in    Amount accounted for in
              Item                                                                            current non-recurring
                                        the current period         the previous period
                                                                                                gains and losses
Total losses from disposal of
non-current assets
Including: Losses from disposal
of fixed assets
            Losses from disposal
of intangible assets
Losses from exchange of
non-currency assets
Offering of donations                            6,781,960.13               3,802,728.09                6,781,960.13
Loss from damage and retirement
of non-current assets
Fine late payment                                7,137,075.14               4,699,931.33                7,137,075.14
Compensation expenses                              725,250.52                 956,627.30                  725,250.52
Others                                           2,191,692.55                 341,264.35                2,191,692.55
                Total                           20,142,203.88              15,492,461.01               20,142,203.88
      Other descriptions:
      No
      (1). Table of income tax expenses
      √ Applicable □ Not applicable
                                                                               Unit: Yuan Currency: RMB
                                              Amount accounted for in the       Amount accounted for in the
                     Item
                                                   current period                     previous period
      Current income tax expenses                          338,026,758.11                    356,063,320.52
      Deferred income tax expenses                           9,507,440.27                      10,459,734.92
                    Total                                  347,534,198.38                    366,523,055.44
      (2). Adjustment process of accounting profits and income tax expenses
      √ Applicable □ Not applicable
                                                                                 Unit: Yuan     Currency: RMB
                                                                                        Amount accounted for
                                            Item
                                                                                         in the current period
      Total profits                                                                           1,708,704,232.97
      Income tax expenses calculated at statutory/applicable rates                              256,305,634.95
      Effect of applying different tax rates to subsidiaries                                      64,482,058.82
      Effect of adjusting income taxes of the previous periods                                   -24,863,769.30
      Effect of non-taxable income                                                                  -115,637.05
      Effect of non-deductible costs, expenses and losses                                         10,278,934.44
      Effect of deductible losses of deferred income tax assets not recognized in the
      previous period
                                               Annual Report 2025
  Effect of deductible temporary differences or deductible losses of deferred
  income tax assets not recognized in the current period
  Tax effect of offsetting losses in previous years                                         -5,091,354.90
  Income tax expenses                                                                      347,534,198.38
  Other descriptions:
  □ Applicable √ Not applicable
  √ Applicable □ Not applicable
  For details, refer to Note VII (57) Other Comprehensive Income.
  (1). Cash related to operating activities
  Other cash received from operating activities
  √ Applicable □ Not applicable
                                                                            Unit: Yuan    Currency: RMB
                                              Amount accounted for in the      Amount accounted for in the
                   Item
                                                      current period                  previous period
Recovery of current amount and advances                    1,249,801,400.20                1,673,016,388.16
Special allowances and subsidies                              164,105,412.87                 147,308,734.33
Interest income                                                35,152,616.54                  64,177,866.11
Non-operating profits                                           4,391,650.75                  27,015,657.72
                   Total                                   1,453,451,080.36                1,911,518,646.32
   Descriptions on other cash received from operating activities:
   No
  Cash paid for other operating activities
  √ Applicable □ Not applicable
                                                                             Unit: Yuan    Currency: RMB
                                           Amount accounted for in the        Amount accounted for in the
                  Item
                                                   current period                   previous period
  Inter-company business                                 1,173,439,524.94                 1,303,684,272.66
  Sales expenses                                         1,095,233,431.51                 1,039,633,623.52
  Administration expenses                                   267,345,549.89                  303,320,097.07
  Financial expenses                                          8,141,125.36                    8,583,688.94
  Non-operating expenses                                     16,335,978.34                   12,116,411.77
  R&D expenses                                               26,825,061.47                   34,127,283.46
                  Total                                  2,587,320,671.51                 2,701,465,377.42
  Descriptions on cash paid for other operating activities:
  No
  (2). Cash related to investing activities
  Significant cash received related to investing activities
  □ Applicable √ Not applicable
  Significant cash paid related to investing activities
  □ Applicable √ Not applicable
  Other cash received relating to investing activities
  √ Applicable □ Not applicable
                                                       Annual Report 2025
                                                                                       Unit: Yuan    Currency: RMB
                                                      Amount accounted for in the       Amount accounted for in the
                           Item
                                                           current period                      previous period
         Compensation for the acquisition of
         the original controlling shareholders                          647,135.65                            497,844.25
         of Axus Stationery
         Net cash received from the
         acquisition of the subsidiary
                          Total                                       5,219,162.31                            497,844.25
         Description on other cash received relating to investing activities:
         No
         Other cash paid relating to investing activities
         □ Applicable √ Not applicable
         (3). Other cash received related to financing activities
         Other cash received relating to financing activities:
         √ Applicable □ Not applicable
                                                                                       Unit: Yuan    Currency: RMB
                                                   Amount accounted for in the          Amount accounted for in the
                         Item
                                                            current period                     previous period
         Advance from shareholders                                    4,750,000.00
                         Total                                        4,750,000.00
         Description on other cash received relating to financing activities:
         No
         Other cash paid for financing-related activities
         √ Applicable □ Not applicable
                                                                                    Unit: Yuan   Currency: RMB
                                                        Amount accounted for in the    Amount accounted for in the
                           Item
                                                             current period                  previous period
      Repurchase payment of treasury shares                           48,957,706.02                 164,262,456.55
      Purchase of minority equity of
      subsidiaries
      Cash paid for capital reduction                                                                        83,268,833.33
      Lease payments related to the new lease
      standards
                        Total                                       369,865,778.35                         569,048,890.82
        Descriptions on other cash paid for financing-related activities:
        No
         Changes in liabilities arising from financing activities
         √ Applicable □ Not applicable
                                                                                       Unit: Yuan        Currency: RMB
                                             Increase of the current period      Decrease of the current period
                                                                                                                      Closing
        Item             Opening balance                         Non-cash                            Non-cash
                                           Cash changes                         Cash changes                          balance
                                                                  changes                             changes
Short-term
borrowings
Long-term borrowings
(including non-current
liabilities due within
one year)
Lease liabilities
(including non-current
liabilities due within
one year)
                                                    Annual Report 2025
Treasury shares -
Stock exchange
Dividend payable                                           915,795,377.00     915,795,377.00
        Total        1,001,863,615.68   396,917,706.02   1,276,798,295.31   1,660,992,247.64   155,388,168.05   859,199,201.32
        (4). Notes to the presentation of cash flows on a net basis
        □ Applicable √ Not applicable
        (5). Significant activities and financial effects that do not involve current cash receipts and
        payments but affect the financial position of the enterprise or may affect the enterprise’s cash
        flows in the future
        □ Applicable √ Not applicable
        (1). Supplementary information for the cash flow statement
        √ Applicable □ Not applicable
                                                                                 Unit: Yuan   Currency: RMB
              Supplementary information              Amount in the current period      Amount in the last period
     Net profit                                                 1,361,170,034.59                1,454,734,931.09
     Add: Impairment provisions of assets                            9,370,921.23                   12,879,311.68
     Credit impairment losses                                      22,872,885.89                    28,410,867.15
     Depreciation of fixed assets, oil and gas
     assets, and productive biological assets
     Amortization of right-of-use assets                          276,339,065.64                  256,401,112.69
     Amortization of intangible assets                             20,464,736.74                    21,627,433.27
     Amortization of long-term prepaid expenses                    73,733,572.31                    61,428,447.42
     Losses from disposal of fixed assets,
     intangible assets and other long-term assets                    2,847,905.15                       10,284.89
     (“-” refers to gains)
     Losses from retirement of fixed assets (“-”
     refers to gains)
     Losses from changes in fair value (“-”
                                                                  -58,155,252.93                   -54,361,789.99
     refers to gains)
     Financial expenses (“-” refers to income)                     25,137,529.75                    18,549,263.81
     Investment losses (“-” refers to gains)                        -9,895,830.01                      364,758.05
     Decrease in deferred income tax assets (“-”
                                                                    -4,947,530.25                    5,610,913.07
     refers to increase)
     Increase in deferred income tax liabilities
     (“-” refers to decrease)
     Decrease in inventories (“-” refers to
                                                                 -120,768,209.69                    31,710,912.54
     increase)
     Decrease in operating receivables (“-”
                                                                 -342,696,673.89                  126,083,918.39
     refers to increase)
     Increase in operating payables (“-” refers to
     decrease)
     Others
     Net cash flow generated from operating
     activities
     Debts converted to capital
     Convertible company bonds due within one
     year
     Fixed assets acquired under financing
                                              Annual Report 2025
leases
Closing balance of cash                                 2,942,543,207.01                  3,726,616,032.18
Less: Opening balance of cash                           3,726,616,032.18                  3,708,085,136.83
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents                 -784,072,825.17                    18,530,895.35
  (2). Net cash amount paid for the acquisition of subsidiaries in the current period
  √ Applicable □ Not applicable
                                                                           Unit: Yuan  Currency: RMB
                                                                                    Amount
  Cash or cash equivalents paid in the current period from the
  business combination in the period
  Including: Shanghai Mymybear Enterprise Management Co., Ltd.
  （上海沫沫班长企业管理有限公司）
  Less: Cash and cash equivalents held by subsidiaries at the
  acquisition date
  Including: Shanghai Mymybear Enterprise Management Co., Ltd.
  （上海沫沫班长企业管理有限公司）
  SHANGHAI M&G STATIONERY (THAILAND) CO., LTD.                                              4,572,026.66
  Add: Cash or cash equivalents paid in the current period from the
  business combination in prior periods
  Net cash payments for the acquisition of subsidiaries                                   13,851,891.42
  Other descriptions:
  No
  (3). Net cash amount received from the disposal of subsidiaries in the current period
  □ Applicable √ Not applicable
  (4). Composition of cash and cash equivalents
  √ Applicable □ Not applicable
                                                                          Unit: Yuan   Currency: RMB
                     Item                            Closing balance              Opening balance
  I. Cash                                                  2,942,543,207.01           3,726,616,032.18
  Including: Cash on hand                                        809,289.01               1,316,928.26
        Bank deposits readily available for
  payment
        Other cash and equivalents readily
  available for payment at any time
        Due from central bank available for
  payment
        Due from placements with banks
  and other financial institutions
        Call loan to banks and other
  financial institutions
  II. Cash equivalents
  Including: Bond investments due within
  three months
  III. Closing balance of cash and cash
  equivalents
  Including: Cash and cash equivalents of
                                               Annual Report 2025
  which the use is restricted for the parent
  company or subsidiaries within the
  group
  (5). Presentation of cash and cash equivalents with restricted use
  □ Applicable √ Not applicable
  (6). Monetary funds not classified as cash and cash equivalents
  √ Applicable □ Not applicable
                                                                           Unit: Yuan    Currency: RMB
          Item                    Closing balance         Opening balance                Reason
Deposits for project money                                    19,530,000.00 Frozen
Deposits for letter of credit          4,253,113.16            1,819,766.78 Pledge
Performance bond                      18,247,095.96            3,674,534.42 Pledge
Trading margin                           435,785.60               93,585.19 Frozen
Fixed-term deposits                                                          Period exceeding three months
exceeding three months                                                       at maturity
Others                                   581,201.98              483,383.55 Pledge
Frozen funds                             533,336.79                          Frozen
           Total                   1,039,079,333.49        1,235,601,269.94 /
  Other descriptions:
  □ Applicable √ Not applicable
  Description on “other” item name and adjustment amount adjusted for balance at the end of the previous
  year:
  □ Applicable √ Not applicable
  (1). Foreign currency monetary items
  √ Applicable □ Not applicable
                                                                                                 Unit: Yuan
                                       Foreign currency                                RMB translated at
                                                                Translation foreign
                 Item                 balance at the end of                           the end of the period
                                                                  exchange rate
                                            the period                                       balance
  Cash and equivalents                                     -                      -         257,372,375.38
  Including: USD                              30,815,570.69                  7.0288         216,596,483.27
             EURO                              1,832,631.34                  8.2355          15,092,635.40
             HKD                                  14,708.68                  0.9032               13,284.88
             GBP                                     375.00                  9.4346                3,537.98
             VND                          4,077,299,363.00                   0.0003           1,223,189.81
             NOK                              26,992,977.68                  0.6968          18,808,706.85
             DKK                                 664,641.16                  1.1018             732,301.63
             SGD                                 287,226.60                  5.4586           1,567,855.12
             SEK                                  57,034.00                  0.7617               43,442.80
             THB                              14,790,730.96                  0.2225           3,290,937.64
  Accounts receivable                                      -                      -         113,180,757.81
  Including: USD                              11,530,805.59                  7.0288          81,047,726.33
             EURO                                 48,462.36                  8.2355             399,111.77
             VND                            460,950,912.00                   0.0003             138,285.27
                                          Annual Report 2025
           NOK                           25,442,001.98                 0.6968           17,727,986.98
           THB                           62,326,505.44                 0.2225           13,867,647.46
Long-term borrowings                                 -                      -
Including: USD
           EURO
           HKD
Accounts payable                                    -                       -           31,207,052.50
Including: USD                             225,045.44                  7.0288            1,581,799.39
           VND                      18,578,487,966.48                  0.0003            5,573,546.39
           NOK                          17,178,039.24                  0.6968           11,969,657.74
           HKD                               9,305.00                  0.9032                8,404.28
           CHF                              82,774.45                  8.8510              732,636.66
           THB                          50,970,822.67                  0.2225           11,341,008.04
Other receivables                                   -                       -            1,048,492.78
Including: USD                              48,973.33                  7.0288              344,223.74
           VND                       1,369,414,802.00                  0.0003              410,824.44
           NOK                               5,689.73                  0.6968                3,964.60
           THB                           1,210,261.50                  0.2225              269,283.18
           SGD                               3,700.00                  5.4586               20,196.82
Other payables                                      -                       -           89,562,798.83
Including: USD                               4,000.00                  7.0288               28,115.20
           VND                       2,014,631,909.00                  0.0003              604,389.57
           HKD                              16,000.00                  0.6968               11,148.80
           NOK                             924,671.52                  0.2225              205,739.41
           THB                          19,682,946.34                  4.4940           88,455,160.85
           SGD                              47,309.75                  5.4586              258,245.00
Other descriptions:
No
(2). Descriptions on overseas operating entities, including: for important overseas business entities,
their main overseas business locations, bookkeeping currency and selection basis shall be disclosed;
in case of any change in the bookkeeping currency, the reasons for such change shall be also
disclosed
□ Applicable √ Not applicable
(1). As a lessee
√ Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
√ Applicable □ Not applicable
     The current variable lease payments not included in the measurement of lease liabilities but
included in related asset costs or the current profit or loss were RMB11,505,979.24.
Rental of simplified short-term leases and leases of low-value assets
√ Applicable □ Not applicable
     The simplified treatment of short-term lease expenses included in relevant asset costs or current
period expenses amounted to RMB10,632,494.88. Additionally, the simplified treatment of low-value
asset lease expenses included in relevant asset costs or current period expenses (excluding short-term
lease expenses of low-value assets) amounted to RMB17,682.31.
Sale and leaseback transactions and basis of judgment
                                            Annual Report 2025
□ Applicable √ Not applicable
Total cash outflows related to leases was 343,064,228.76 (Unit: Yuan Currency: RMB)
(2) As a lessor
Operating leases as a lessor
√ Applicable □ Not applicable
                                                                         Unit: Yuan      Currency: RMB
                                                                         Including: income relating to
              Item                           Rental income                variable lease payments not
                                                                          recognized as lease receipts
Operating lease income                                 11,234,380.02
             Total                                     11,234,380.02
Financial leases as a lessor
□ Applicable √ Not applicable
Reconciliation statement of undiscounted lease receipts and net investment in leases
□ Applicable √ Not applicable
Undiscounted lease receipts for the next five years
√ Applicable □ Not applicable
                                                                       Unit: Yuan      Currency: RMB
                                                    Annual undiscounted lease receipts
              Item
                                            Closing balance                  Opening balance
First year                                            11,554,167.36                     11,741,770.78
Second year                                           11,300,823.68                     11,005,320.44
Third year                                            11,519,674.92                     11,377,225.84
Fourth year                                           11,614,434.66                     11,520,441.00
Fifth year                                            11,828,432.35                     11,614,434.66
Total undiscounted lease
receipts after five years
(3). Profit or losses on sales recognized under finance leases as a producer or distributor
□ Applicable √ Not applicable
Other descriptions:
No
□ Applicable √ Not applicable
□ Applicable √ Not applicable
VIII. R&D expenses
√ Applicable □ Not applicable
                                                                        Unit: Yuan     Currency: RMB
                                                 Amount accounted for in     Amount accounted for in
                      Item
                                                   the current period           the previous period
Employee benefits                                          121,078,253.59              108,773,449.55
                                                        Annual Report 2025
         Consumption materials                                               42,408,392.42                      45,025,440.91
         Others                                                              26,152,708.86                      35,347,090.20
                             Total                                          189,639,354.87                     189,145,980.66
         Including: Expensed R&D expenditure                                189,639,354.87                     189,145,980.66
                    Capitalized R&D expenditure
         Other descriptions:
         No
         □ Applicable √ Not applicable
         Significant capitalized R&D projects
         □ Applicable √ Not applicable
         Provision for impairment of development expenses
         □ Applicable √ Not applicable
         Other descriptions:
         No
         □ Applicable √ Not applicable
         IX. Change in Consolidation Scope
         √ Applicable □ Not applicable
         (1). Business combination not under common control in the current period
         √ Applicable □ Not applicable
                                                                                            Unit: Yuan         Currency: RMB
                                                                                                                                   Cash flows
                                               Pro
                                               port                                            Income of         Net profit of        of the
                   Time and                                                  Recognition                                            acquiree
                                  Cost of      ion    Way to                                 acquiree from      acquiree from
                    place of                                     Purchas       basis of
Name of acquiree                gaining the     of     gain                                   the purchase       the purchase       from the
                    gaining                                       e date      purchase
                                  equity       equ    equity                                 date to the end    date to the end   purchase date
                     equity                                                     date
                                                ity                                           of the period      of the period    to the end of
                                               (%)
                                                                                                                                   the period
Shanghai                                                                     The date
Mymybear                                              Acquisit               when
Enterprise                                            ion not                control of
Management Co.,                                100               January
Ltd. （上海沫沫                                      .00              10, 2025
                                                      common                 is
班长企业管理有                                               control                effectively
限公司）                                                                         obtained
                                                                             The date
SHANGHAI                                                                     when
M&G                                                                          control of
STATIONERY         2025/6/12   20,760,105.90                                 the acquiree    15,877,557.92       -3,240,140.32    3,298,829.52
(THAILAND)                                                                   is
CO., LTD.                                                                    effectively
                                                                             obtained
         Other descriptions:
         No
                                              Annual Report 2025
(2). Combination cost and goodwill
√ Applicable □ Not applicable
                                                                           Unit: Yuan    Currency: RMB
                                                                    Shanghai Mymybear Enterprise
Combination cost                                                    Management Co., Ltd. （上海沫沫班
                                                                    长企业管理有限公司）
--Cash                                                                                    30,000,000.00
--Fair value of non-cash assets
--Fair value of debt issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equity interests on the purchase date held
before the purchase date
--Others
Total combination costs                                                                   30,000,000.00
Less: share in the fair value of identifiable net assets acquired                        -11,875,098.79
The amount of goodwill/combination cost less than the share
in the fair value of identifiable net assets acquired
                                                                    SHANGHAI M&G STATIONERY
Combination cost
                                                                    (THAILAND) CO., LTD.
--Cash                                                                                 20,760,105.90
--Fair value of non-cash assets
--Fair value of debt issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equity interests on the purchase date held
before the purchase date
--Others
Total combination costs                                                                   20,760,105.90
Less: share in the fair value of identifiable net assets acquired                         20,760,105.90
The amount of goodwill/combination cost less than the share
in the fair value of identifiable net assets acquired
Method of determining the fair value of the combination cost:
□ Applicable √ Not applicable
Fulfillment of performance commitments:
□ Applicable √ Not applicable
The main formation reason for the large goodwill:
□ Applicable √ Not applicable
Other descriptions:
No
(3). Identifiable assets and liabilities of acquirees on purchase date
√ Applicable □ Not applicable
                                                                           Unit: Yuan   Currency: RMB
                            Shanghai Mymybear Enterprise
                          Management Co., Ltd. （上海沫沫班                 SHANGHAI M&G STATIONERY
                                                                         (THAILAND) CO., LTD.
                               长企业管理有限公司）
                                           Annual Report 2025
                          Fair value on     Carrying value on       Fair value on      Carrying value
                          purchase date      purchase date          purchase date     on purchase date
Assets:                   35,766,983.96         35,766,983.96          4,572,026.66       4,572,026.66
Cash and equivalents       4,076,081.92          4,076,081.92          4,572,026.66       4,572,026.66
Accounts receivable          413,022.58            413,022.58
Inventories                8,015,735.32          8,015,735.32
Fixed assets                 774,970.75            774,970.75
Intangible assets              67,493.84            67,493.84
Prepayment                   612,664.08            612,664.08
Other receivables          3,100,513.12          3,100,513.12
Right-of-use assets       10,376,380.03         10,376,380.03
Long-term prepaid
expenses
Deferred income tax
assets
Liabilities:              47,642,082.75          47,642,082.75
Borrowings
Accounts payable            1,077,921.21          1,077,921.21
Deferred income tax         2,594,095.01          2,594,095.01
liabilities
Other payables            31,513,395.94          31,513,395.94
Lease liabilities         10,218,508.18          10,218,508.18
Other liabilities            349,286.44             349,286.44
Employee benefits
payable
Net assets                -11,875,098.79        -11,875,098.79         4,572,026.66       4,572,026.66
Less: Non-controlling
interests
Net assets acquired       -11,875,098.79        -11,875,098.79         4,572,026.66       4,572,026.66
The determination method of the fair value of identifiable assets and liabilities:
Determined based on the carrying value of the assets and liabilities of Shanghai Mymybear Enterprise
Management Co., Ltd. （上海沫沫班长企业管理有限公司）
Contingent liability of acquiree undertaken in the business combination:
No
Other descriptions:
No
(4). Gains or losses from re-measurement of equity held before the purchase date at fair value
Whether there is a transaction that through multiple transaction step by step to realize business
combination and gaining the control during the Reporting Period
□ Applicable √ Not applicable
(5). Inability to reasonably determine the acquisition consideration or the fair value of acquirees’
     identifiable assets and liabilities at acquisition dates or the period-ends of the combinations
□ Applicable √ Not applicable
(6). Other descriptions
□ Applicable √ Not applicable
                                     Annual Report 2025
□ Applicable √ Not applicable
□ Applicable √ Not applicable
                                                                                  Annual Report 2025
        Whether there were any transactions or events during the current period in which control of subsidiaries was lost
        √ Applicable □ Not applicable
                                                                                                                                                   Unit: Yuan      Currency: RMB
                                                                                                                                                           Method and
                                                                              Difference                                                                        main        Amount of
                                                                             between the                                     Fair value                   assumptions          other
                                                                                                             Carrying
                               Disp                                         disposal price                                        of         Gains or            for       comprehensi
                                                                                                             value of
                               osal                                         and the share                                    remaining         losses      determining      ve income
                                        Proporti                                              Remainin      remaining
                               price                                         of the equity                                      equity     arising from       the fair    related to the
                                         on of     Disposal                                   g equity        equity
                                 at                            Basis for         of the                                     interests in   remeasurem value of the          disposed of
                                        disposal   method                                     interests    interests in
                    Time of     the                           determinin     subsidiary in                                       the           ent of       remaining          equity
    Name of                              at the     at the                                     on the           the
                    cease of   time                            g time of          the                                       consolidat      remaining          equity       investment
   subsidiary                           time of    time of                                     date of     consolidate
                    control      of                            cease of      consolidated                                         ed          equity       interests in        in the
                                        cease of   cease of                                   cease of     d financial
                               ceas                             control        financial                                      financial      interests          the         subsidiary
                                        control    control                                     control     statements
                                e of                                          statements                                    statements       under the    consolidated transferred to
                                          (%)                                                   (%)        on the date
                               contr                                        corresponding                                   on the date     fair value       financial       return on
                                                                                                           of cease of
                                 ol                                              to the                                     of cease of       method        statements      investment
                                                                                                              control
                                                                              investment                                       control                     on the date      or retained
                                                                              disposed of                                                                  of cease of       earnings
                                                                                                                                                              control
Jiangsu M&G Life
Enterprise
Management Co.,                                               Cancellati
                   June 3,                         Cancella
Ltd.（江苏晨光生                               100.00               on
                                                              completed
活馆企业管理有
限公司）
        Other descriptions:
        □ Applicable √ Not applicable
        Whether there was a step-by-step disposal of investments in subsidiaries through multiple transactions and loss of control during the current period
        □ Applicable √ Not applicable
                                                                         Annual Report 2025
Other descriptions:
□ Applicable √ Not applicable
Descriptions on changes in the scope of consolidated financial statements for other reasons (e.g., establishing subsidiaries, clearing subsidiaries, etc.) and their
related circumstances:
√ Applicable □ Not applicable
One new subsidiary was established during the current period: Lanzhou M&G Cultural Supplies Co., Ltd. (兰州晨光文化用品有限公司)
□ Applicable √ Not applicable
                                               Annual Report 2025
     X. Equity in Other Entities
     (1). Composition of the corporate group
     √ Applicable □ Not applicable
                                                                            Unit: 0’000 Currency: RMB
                            Main                                            Shareholding ratio
                                                  Regist
                            place                                                  (%)
       Subsidiary                    Registered    ered    Nature of the                        Acquisition
                             of
         name                         capital     addre     business                               way
                           busines                                          Direct     Indirect
                                                    ss
                              s
Colipu Technologies                                        Retail,
Group Co., Ltd.（科力普科       Shangh                 Shang
                           ai                     hai
技集团股份有限公司）                                                 etc.
Shanghai M&G Stationery                                    Production,
                           Shangh                 Shang
& Gift Co., Ltd.（上海晨                 19,941.94             sale and so         100             Establishment
                           ai                     hai
光文具礼品有限公司）                                                 forth
Shanghai M&G Stationery                                    Retail,
                           Shangh                 Shang
Sales Co., Ltd.（上海晨光                  1,300.00             wholesale,                    100   Establishment
                           ai                     hai
文具销售有限公司）                                                  etc.
Guangzhou M&G
Stationery&Gifts Sales                                     Retail,
                           Guang                  Guan
Co., Ltd.（广州晨光文具                      3,950.00             wholesale,                    100   Establishment
                           zhou                   gzhou
                                                           etc.
礼品销售有限公司）
Yiwu Chenxing Stationery                                   Retail,
Co., Ltd.（义乌市晨兴文           Yiwu       1,800.00    Yiwu     wholesale,                    100   Establishment
具用品有限公司）                                                   etc.
                                                                                               Acquired by
Zhejiang Benwei                                                                                business
                                                           Information
                                                                                               combination
Technology Co., Ltd. (浙    Yiwu       1,000.00    Yiwu     technology                    100
                                                                                               not under
江本味科技有限公司)                                                 services
                                                                                               common
                                                                                               control
M&G Life Enterprise
Management Co., Ltd.（晨                                     Retail,
                           Shangh                 Shang
光生活馆企业管理有限                 ai                     hai
                                                           etc.
公司）
Shanghai M&G Jiamei                                        Production,
Stationery Co., Ltd.（上海    Shangh                 Shang
                           ai                     hai
晨光佳美文具有限公司）                                                forth
Shanghai M&G
Information Technology     Shangh                 Shang    E-commerce
Co., Ltd.（上海晨光信息           ai                     hai      business, etc.
科技有限公司）
Zhejiang New M&G Life
Enterprise Management                                      Retail,
                           Hangz                  Hang
Co., Ltd.（浙江新晨光生           hou                    zhou
                                                           etc.
活馆企业管理有限公司）
Jiumu M&G Store
Enterprise Management                                      Retail,
                           Shangh                 Shang
Co., Ltd.（九木杂物社企                     20,000.00             wholesale,                     85   Establishment
                           ai                     hai
                                                           etc.
业管理有限公司）
                                             Annual Report 2025
                                                                                   Acquired by
Shanghai M&G Zhenmei                                     Retail,                   business
Stationery Co., Ltd.（上海 Shangh        1,000.00
                                                 Shang
                                                         wholesale,    100         combination
                        ai                       hai
晨光珍美文具有限公司）                                              etc.                      under common
                                                                                   control
Harbin M&G Sanmei                                                                  Acquired by
Stationery Co., Ltd.（哈尔                                  Retail,                   business
                                                 Harbi
                             Harbin   1,900.00           wholesale,          100   combination
滨晨光三美文具有限公                                       n
                                                         etc.                      under common
司）                                                                                 control
Zhengzhou M&G                                                                      Acquired by
Stationery&Gifts Co., Ltd.                               Retail,                   business
                             Zhengz              Zheng
（郑州晨光文具礼品有                            2,600.00           wholesale,          100   combination
                             hou                 zhou
                                                         etc.                      under common
限责任公司）
                                                                                   control
                                                                                   Acquired by
Shenzhen Erya Creative                                                             business
and Cultural Development                                 Retail,
                             Shenzh              Shenz                             combination
Co., Ltd.（深圳尔雅文化             en                  hen                               not under
                                                         etc.
创意发展有限公司）                                                                          common
                                                                                   control
                                                         Retail,
Shanghai M&G Office          Shangh              Shang
Stationery Co., Ltd.         ai                  hai
                                                         etc.
Lianyungang Colipu
Office Supplies Co., Ltd.                        Liany   Retail,
                             Lianyu
（连云港市科力普办公                             100.00    ungan   wholesale,          100   Establishment
                             ngang
                                                 g       etc.
用品有限公司）
Shenyang Colipu Office
Supplies Trading Co., Ltd.                               Retail,
                             Shenya              Sheny
（沈阳科力普办公用品                   ng                  ang
                                                         etc.
贸易有限公司）
Hangzhou Sanmei M&G                                      Retail,
                             Hangz               Hang
Stationery Co., Ltd.（杭州               1,800.00           wholesale,          100   Establishment
                             hou                 zhou
三美晨光文具有限公司）                                              etc.
                                                                                   Acquired by
                                                                                   business
                                                         Production,
Axus Stationery              Shangh              Shang                             combination
(Shanghai) Company Ltd.      ai                  hai                               not under
                                                         forth
                                                                                   common
                                                                                   control
                                                                                   Acquired by
Jiangsu Marco Pen Co.,                                                             business
                                                         Production,
Ltd.（江苏马可笔业有限                                    Siyan                             combination
                             Siyang   5,000.00           sale and so         100
                                                 g                                 not under
公司）                                                      forth
                                                                                   common
                                                                                   control
                                                                                   Acquired by
Changchun Macro                                                                    business
                                                         Production,
Stationery Co., Ltd.（长春 Chang         4,000.00
                                                 Chan
                                                         sale and so         100
                                                                                   combination
                        chun                     gchun                             not under
马可文教用品有限公司）                                              forth
                                                                                   common
                                                                                   control
Yili Senlai Wood Co., Ltd.                               Production,               Acquired by
                             Yili     2,000.00   Yili    sale and so         100   business
（伊犁森徕木业有限公
                                                         forth                     combination
                                                Annual Report 2025
司）                                                                                     not under
                                                                                       common
                                                                                       control
                                                                                       Acquired by
                                                                                       business
                                                             Retail,
Axus Stationery (Hong         Hong                  Hong                               combination
Kong) Company Ltd.            Kong                  Kong                               not under
                                                             etc.
                                                                                       common
                                                                                       control
                                                                                       Acquired by
                                                                                       business
                                                             Production,
International stationery      Vietna                Vietn                              combination
company                       m                     am                                 not under
                                                             forth
                                                                                       common
                                                                                       control
Shanghai Qizhihaowan
Culture and Creativity Co.,   Shangh                Shang    Creative
Ltd.（上海奇只好玩文化                           10,000.00                          57          Establishment
                              ai                    hai      service
创意有限公司）
Shanghai Chenxun
Enterprise Management         Shangh                Shang    Enterprise
Co., Ltd.（上海晨讯企业              ai                    hai      management
管理有限公司）
Shanghai Colipu
Information Technology        Shangh                Shang    Software
Co., Ltd.（上海科力普信              ai                    hai      development
息科技有限公司）
Shanghai Meixin
                              Shangh                Shang    Wholesale
Stationery Co., Ltd. (上海                 5,000.00                                100   Establishment
                              ai                    hai      and retail
美新文具有限公司)
SHANGHAI M&G
STATIONERY                    Singap                Singa    Enterprise
(SINGAPORE) PTE.              ore                   pore     management
LTD.
M&G Jiumu Enterprise
Management (Beijing)                                Beijin   Wholesale
                              Beijing     100.00                                 100   Establishment
Co., Ltd.（晨光九木企业                                    g        and retail
管理（北京）有限公司）
                                                                                       Acquired by
                                                                                       business
Back to School Holding        Norwa                 Norw     Holding                   combination
AS                            y                     ay       company                   not under
                                                                                       common
                                                                                       control
                                                                                       Acquired by
                                                                                       business
                                                             Production,
                              Norwa                 Norw                               combination
Beckmann AS                                66.00             sale and so         100
                              y                     ay                                 not under
                                                             forth
                                                                                       common
                                                                                       control
                                                                                       Acquired by
                                                             Retail,                   business
Beckmann Norway GmbH          Germa                 Germ
（Germany）                     ny                    any
                                                             etc.                      not under
                                                                                       common
                                                  Annual Report 2025
                                                                                                      control
                                                     Unite    Retail,
                             United
Beckmann Norway Inc                        0.0001    d        wholesale,                        100   Establishment
                             States
                                                     States   etc.
Beckmann Norway GmbH                                          Retail,
                                                     Austri
                             Austria          3.50            wholesale,                        100   Establishment
（Austria）                                            a
                                                              etc.
Guangdong South China                                         Retail,
                             Huizho                  Huizh
Stationery Co., Ltd. (广东                 5,000.00             wholesale,            100               Establishment
                             u                       ou
华南文教用品有限公司)                                                   etc.
Shanghai Colipu
Technology Development       Shangh                  Shang    Technical
Co., Ltd.（上海科力普科                        10,000.00                                               100   Establishment
                             ai                      hai      services
技发展有限公司）
Shanghai Yichengxiang
E-commerce Co., Ltd.（上                                        Retail,
                             Shangh                  Shang
海益诚祥电子商务有限                   ai                      hai
                                                              etc.
公司）
Hubei M&G Central
China Information                                             General                                 Acquisition
Technology Co., Ltd.（湖                               Wuha     cargo                                   that does not
                             Wuhan      20,000.00                                   100
                                                     n        warehousing                             constitute a
北晨光华中信息科技有
                                                              services                                business
限公司）
Shanghai M&G Online
Selection Stationery Co.,                                     Retail,
                             Shangh                  Shang
Ltd.（上海晨光在线甄选                            2,000.00             wholesale,            100               Establishment
                             ai                      hai
                                                              etc.
文具有限公司）
                                                                                                      Acquired by
Shanghai Mymybear                                                                                     business
Enterprise Management                                         Retail,
                             Shangh                  Shang                                            combination
Co., Ltd.（上海沫沫班长             ai                      hai                                              not under
                                                              etc.
企业管理有限公司）                                                                                             common
                                                                                                      control
                                                                                                      Acquired by
                                                                                                      business
SHANGHAI M&G                                                  Retail,
                             Thaila                  Thaila                                           combination
STATIONERY                              13,500.00             wholesale,                         70
                             nd                      nd                                               not under
(THAILAND) CO., LTD.                                          etc.
                                                                                                      common
                                                                                                      control
Lanzhou M&G Cultural                                         Retail,
Supplies Co., Ltd. (兰州晨 Lanzho          2,000.00
                                                    Lanzh
                                                             wholesale,                    100 Establishment
                            u                       ou
光文化用品有限公司)                                                   etc.
           Additional Note: The registered capital currency for Axus Stationery (Hong Kong) Company Ltd.
      is HKD, International Stationery Company and Beckmann Norway Inc. is USD, SHANGHAI M&G
      STATIONERY (SINGAPORE) PTE. LTD. is SGD, Back to School Holding AS and Beckmann AS is
      NOK, Beckmann Norway GmbH (Germany) and Beckmann Norway GmbH (Austria) is EURO,
      SHANGHAI M&G STATIONERY (THAILAND) CO., LTD. is THB.
      Descriptions on the situation that the shareholding ratio in the subsidiary is different from the share of
      the voting rights:
      No
      Basis for holding half or less of the voting rights of the investee but still controlling the investee and
      holding more than half of the voting rights but not controlling the investee:
      No
                                                                                  Annual Report 2025
                      Basis for controlling important structured entities included in the scope of consolidated financial
                      statements:
                      No
                      Basis for determining whether the Company is an agent or a principal:
                      No
                      Other descriptions:
                      No
                      (2). Important non-wholly owned subsidiaries
                      √ Applicable □ Not applicable
                                                                                                                       Unit: 0’000 Currency: RMB
                                                                              Profits and losses             Dividends declared
                                                      Minority                 attributable to                and distributed to   Minority equity
               Name of subsidiaries                 shareholding                  minority                        minority        balance at the end
                                                        ratio                shareholders in the             shareholders in the    of the period
                                                                               current period                  current period
               Colipu Technologies
               Group Co., Ltd.（科
               力普科技集团股份
               有限公司）
                    Descriptions on the situation that the shareholding ratio of minority shareholders in the subsidiary is
                    different from that of the voting rights:
                    □ Applicable √ Not applicable
                      Other descriptions:
                      □ Applicable √ Not applicable
                      (3). Major financial information of important non-wholly owned subsidiaries
                      √ Applicable □ Not applicable
                                                                                                                        Unit: 0’000          Currency: RMB
                                             Closing balance                                                                     Opening balance
Name of
subsidiar                                                             Non-curre                                                                               Non-curre
               Current       Non-curren    Total         Current                       Total       Current      Non-current      Total         Current                         Total
   ies                                                                    nt                                                                                      nt
                assets        t assets     assets       liabilities                 liabilities     assets        assets         assets       liabilities                   liabilities
                                                                      liabilities                                                                             liabilities
Colipu
Technol
ogies
Group
Co., Ltd.
（科力           813,622.55     12,825.64    826,448.19    550,677.29     4,189.90     554,867.19    672,667.17      15,896.79   688,563.96      447,918.09       5,265.99     453,184.08
普科技
集团股
份有限
公司）
                                        Amount accounted for in the current period                        Amount accounted for in the previous period
                                                                                Cash flow                                                          Cash flow
               Name of                                            Total                                                             Total
                                                                                   from                                                               from
              subsidiaries         Revenue     Net profit   comprehensive                            Revenue     Net profit    comprehensive
                                                                                 operating                                                         operating
                                                                 income                                                            income
                                                                                 activities                                                        activities
            Colipu
            Technologies
            Group Co., Ltd.       1,504,820.63      33,464.83         33,464.83       52,476.66    1,383,143.57      32,178.31            32,178.31         52,709.16
            （科力普科技集
            团股份有限公司）
                                               Annual Report 2025
   Other descriptions:
   No
   (4). Significant restrictions on the use of corporate group assets and the liquidation of corporate
        group debts
   □ Applicable √ Not applicable
   (5). Financial support or other support provided to structured entities included in the scope of
        consolidated financial statements
   □ Applicable √ Not applicable
   Other descriptions:
   □ Applicable √ Not applicable
        Company still controls the subsidiary
   □ Applicable √ Not applicable
   √ Applicable □ Not applicable
   (1). Important joint ventures or associates
   □ Applicable √ Not applicable
   (2). Major financial information of important joint ventures
   □ Applicable √ Not applicable
   (3). Major financial information of important associates
   □ Applicable √ Not applicable
   (4). Summary financial information of unimportant joint ventures and associates
   √ Applicable □ Not applicable
                                                                              Unit: Yuan    Currency: RMB
                                             Closing balance/Amount                Opening balance/Amount
                                            accounted for in the current        accounted for in the previous
                                                      period                               period
Joint ventures:
Total carrying value of investments
Total of the following items calculated according to the shareholding ratio
- Net profits
- Other comprehensive income
- Total comprehensive income
Associates:
Total carrying value of investments                           35,606,521.84                      33,578,115.08
Total of the following items calculated according to the shareholding ratio
- Net profits                                                    592,433.92                      -3,962,188.64
- Other comprehensive income                                   1,435,972.84                         308,191.25
- Total comprehensive income                                   2,028,406.76                      -3,653,997.39
   Other descriptions:
   No
                                                 Annual Report 2025
  (5). Descriptions on significant limitation of the ability of a joint venture or associate to transfer
       funds to the Company
  □ Applicable √ Not applicable
  (6). Excess losses incurred by a joint venture or associate
  □ Applicable √ Not applicable
  (7). Unrecognized commitments related to joint venture investment
  □ Applicable √ Not applicable
  (8). Contingent liabilities related to joint venture or associate investment
  □ Applicable √ Not applicable
  □ Applicable √ Not applicable
  Descriptions on structured entities not included in the consolidated financial statements:
  □ Applicable √ Not applicable
  □ Applicable √ Not applicable
  XI. Government subsidies
  □ Applicable √ Not applicable
  Reasons for not receiving the projected amount of government subsidies at the projected point in time
  □ Applicable √ Not applicable
  √ Applicable □ Not applicable
                                                                                   Unit: Yuan     Currency: RMB
                                                 Amount
                                                 recogniz                        Other
                                                    ed as                        chang
Financial                        Subsidies       non-oper    Other income         es in                     Related to
statement   Opening balance   increased in the      ating    entered in the        the    Closing balance   assets/inc
   item                        current period     income     current period      curren                        ome
                                                   in the                           t
                                                  current                        period
                                                   period
Deferred                                                                                                    Asset-rela
income                                                                                                      ted
Deferred                                                                                                    Income-re
income                                                                                                      lated
   Total      34,963,559.04     9,000,000.00                  28,075,925.44                 15,887,633.60   /
                                            Annual Report 2025
√ Applicable □ Not applicable
                                                                            Unit: Yuan Currency: RMB
                                     Amount accounted for in the           Amount accounted for in the
             Type
                                          current period                         previous period
Asset-related                                        5,575,925.44                           5,416,244.55
Income-related                                     113,185,033.53                         150,197,578.56
             Total                                 118,760,958.97                         155,613,823.11
Other descriptions:
No
XII. Risks Associated with Financial Instruments
√ Applicable □ Not applicable
     We face various financial risks in its business operations: credit risk, liquidity risk and market risk
(including exchange rate risk, interest rate risk and other price risk). The above financial risks and the
risk management policies adopted by us to reduce these risks are as follows:
     The Board of Directors is responsible for planning and establishing the Company’s risk
management structure, formulating the Company’s risk management policies and related guidelines, and
supervising the implementation of risk management measures. We have formulated risk management
policies to identify and analyse the risks faced by us. These risk management policies clearly stipulate
specific risks, covering many aspects in the management of market risk, credit risk and liquidity risk.
We regularly evaluate the market environment and changes in the Company’s business activities to
determine whether to update the risk management policies and systems. The Company’s risk
management is carried out in accordance with the policies approved by the Board of Directors.
Identifying, evaluating and avoiding related risks through working closely with other business
departments of the Company. The Internal Audit Department of the Company conducts regular audits on
risk management control and procedures, and reports the audit results.
     We diversify the risk of financial instruments through appropriate diversified investment and
business portfolios, and reduce the risks relating to concentration in a single industry, specific region or
specific counterparty through formulation of corresponding risk management policies.
     (I) Credit risk
     Credit risk refers to the risk of the Company’s financial losses due to the failure of the counterparty
to perform its contractual obligations.
     The main sources of credit risk for the Company primarily arise from cash and equivalents, bills
receivable, accounts receivable, financing of accounts receivable, and other receivables.
     The Company’s monetary funds are mainly bank deposits deposited in reputable state-owned banks
and other large and medium-sized listed banks with high credit ratings, thus we believe that there are no
significant credit risks and almost no major losses caused by bank defaults.
     In addition, for notes receivable, accounts receivable, financing receivables and other receivables,
we set relevant policies to control credit risk exposure. We evaluate the customer’s credit qualifications
and set the corresponding credit period based on the customer’s financial status, possibility of obtaining
guarantees from a third party, credit history and other factors such as current market conditions. We
regularly monitor customer credit records. For customers with poor credit records, we use written
dunning and shorten or cancel the credit period, etc., to ensure that the Company’s overall credit risk is
within the controllable range.
(II) Liquidity risk
      Liquidity risk is the risk of a shortage of funds of the Company when the Company is performing
its obligation to settle in the form of delivery of cash or other financial assets.
      The Company’s policy is to ensure that there is sufficient cash to pay off the debts due. Liquidity
risk is centrally controlled by the Company’s Finance Department. Finance Department ensures that the
                                                                      Annual Report 2025
                    Company has sufficient funds to repay debts under all reasonable forecasts by monitoring cash balances,
                    marketable securities at any time, and rolling forecasts of the cash flows in the coming 12 months.
                    Finance Department also continuously monitors whether the Company complies with the provisions of
                    the loan agreement and obtains commitments from major financial institutions to provide sufficient
                    reserve funds so as to meet short- and long-term funding needs.
                         Financial liabilities of the Company are presented as unrealized contractual cash flows on the
                    maturity date as follows:
                                                                                    Closing balance
      Item              Immediate                                                                       Above five      Total undiscounted
                                      Within one year      One to two years      Two to five years                                            Carrying value
                        repayment                                                                         years          contract amount
Short-term               171,111.12      247,863,498.00                                                                      248,034,609.12      245,131,111.12
borrowings
Accounts                                5,980,392,579.19                                                                   5,980,392,579.19    5,980,392,579.19
payable
Other payables                           534,646,908.51                                                                      534,646,908.51     534,646,908.51
Non-current
liabilities due           29,698.35      229,328,642.12                                                                      229,358,340.47     213,429,554.47
within one year
Long-term                                                     36,792,355.90                                                   36,792,355.90       35,998,000.00
borrowings
Lease liabilities                                            142,690,320.04         80,035,902.22        1,001,014.34        223,727,236.60      214,599,529.16
       Total             200,809.47     6,992,231,627.82     179,482,675.94         80,035,902.22        1,001,014.34      7,252,952,029.79    7,224,197,682.45
                                                                            Balance at the end of last year
      Item              Immediate                                                                        Above five     Total undiscounted
                                      Within one year      One to two years    Two to five years                                              Carrying value
                        repayment                                                                           years        contract amount
Short-term               181,169.83      340,880,000.00                                                                      341,061,169.83     341,061,169.83
borrowings
Accounts                                5,006,486,563.20                                                                   5,006,486,563.20    5,006,486,563.20
payable
Other payables                           518,745,735.51                                                                      518,745,735.51     518,745,735.51
Non-current
liabilities due            8,983.34      218,933,041.34                                                                      218,942,024.68     204,601,711.39
within one year
Long-term                                                                            6,000,000.00                              6,000,000.00        6,000,000.00
borrowings
Lease liabilities                                            128,853,810.92         77,417,674.75        2,409,642.05        208,681,127.72      199,105,187.71
        Total            190,153.17     6,085,045,340.05     128,853,810.92         83,417,674.75        2,409,642.05      6,299,916,620.94    6,276,000,367.64
                          (III) Market risk
                          Market risk of financial instruments is the risk that the fair value or future cash flows of financial
                    instruments will fluctuate due to changes in market prices including exchange rate risk, interest rate risk
                    and other price risks.
                          Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
                    fluctuate due to changes in market rates.
                          Interest-bearing financial instruments with fixed and floating rates expose the Company to fair
                    value interest rate risk and cash flow interest rate risk, respectively. The Company determines the
                    percentages of fixed interest rate instruments and floating interest rate instruments according to the
                    market environment, and maintains an appropriate combination of fixed interest rate instruments and
                    floating interest rate instruments through regular review and monitoring. When necessary, the Company
                    adopts interest rate swap instruments to hedge the interest rate risk.
                          As of December 31, 2025, assuming all other variables remain constant, a 100 basis points increase
                    or decrease in the borrowing interest rate calculated at a floating rate will result in a decrease or increase
                    of RMB280.96 in the net profit of the Company (as of December 31, 2024: RMB3.51 million).
                         Exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will
                    fluctuate due to changes in foreign exchange rates.
                         The Company continuously monitors the scale of foreign-currency transactions and
                    foreign-currency assets and liabilities to minimize foreign exchange risks. In addition, the Company may
                    also sign forward foreign exchange contracts or currency swap contracts to avoid exchange rate risk.
                    During the current period and prior periods, the Company did not sign any forward foreign exchange
                    contracts or currency swap contracts.
                                                                 Annual Report 2025
                  Foreign exchange risk faced by the Company mainly comes from financial assets and liabilities
              denominated in USD, and the amounts of foreign currency financial assets and liabilities converted into
              RMB are shown below:
                                             Closing balance                                           Balance at the end of last year
Item                                          Other foreign                                                   Other foreign
                           USD                                        Total                 USD                                            Total
                                                currencies                                                      currencies
Cash and
equivalents
Accounts
receivable
Other receivables           344,223.74             704,269.04         1,048,492.78           956,629.61              136,355.22            1,092,984.83
Total foreign
currency financial       297,988,433.34          73,613,192.63      371,601,625.97        322,373,848.89          40,599,025.97          362,972,874.86
assets
Accounts payable           1,581,799.39          29,625,253.11       31,207,052.50         27,692,768.42          24,740,290.75           52,433,059.17
Other payables                28,115.20          89,534,683.63       89,562,798.83         19,285,689.85             561,932.16           19,847,622.01
Total foreign
currency financial         1,609,914.59         119,159,936.74      120,769,851.33         46,978,458.27          25,302,222.91           72,280,681.18
liabilities
                   As of December 31, 2025, assuming all other variables remain constant, a 5% appreciation or
              depreciation of the RMB against USD will result in an increase or decrease of RMB12.57 million in the
              net profit of the Company (as of December 31, 2024: RMB14.53 million).
                   Other price risk is the risk that the fair value or future cash flows of a financial instrument will
              fluctuate because of changes in market prices other than exchange rate risk and interest rate risk.
                   The Company’s other price risk arises mainly from investments in various types of equity
              instruments and is subject to the risk of changes in the price of equity instruments.
              (1). The Company conducts hedging operations for risk management
              √ Applicable □ Not applicable
                                                                         Economic
                                                  Qualitative and
                                  Risk                                 Relationship       Effectiveness of the Hedging
                                                   Quantitative                                                               Impact of Hedging
                              management                                between the        Relationship in Achieving
              Item                                 Information                                                                Activities on Risk
                              strategy and                            Hedged Item and        the Risk Management
                                                 about the Hedged                                                                 Exposure
                               objectives                               the Hedging                Objective
                                                       Risk
                                                                         Instrument
                                                                                          The Company conducts                By using
                                                                                          foreign exchange derivative         purchased foreign
                                                                     Based on the
                                                                                          transactions in accordance          exchange
                                                                     Company’s
                                                                                          with the principles of              derivative
                                                                     prudent forecasts
                                                                                          legality, prudence, safety          contracts, the
                           Foreign exchange                          of foreign
                                                                                          and effectiveness. It has           Company hedges
                           forwards, foreign                         currency receipts
                                                                                          established a sound and             the risk of
                           exchange swaps,                           and actual
                                                                                          effective risk management           fluctuations in
                           foreign exchange      To effectively      business
                                                                                          system and internal control         exchange rates and
                           options,              hedge against       exposure, the
                                                                                          mechanism for foreign               interest rates
                           structured            foreign exchange    settlement dates
                                                                                          exchange derivative                 arising from its
       Forward foreign     forwards, interest    market risks and    of foreign
                                                                                          transactions, appropriately         foreign currency
       exchange            rate swaps,           prevent adverse     exchange
                                                                                          staffed with professionals          receipt business,
       contracts           currency swaps,       effects arising     derivative
                                                                                          responsible for investment          thereby effectively
                           or combinations       from significant    transactions need
                                                                                          decision-making, transaction        managing the risk
                           thereof are used      fluctuations in     to match the
                                                                                          execution and risk control.         exposure to
                           to mitigate the       exchange rates.     Company’s
                                                                                          Strict decision-making              significant cash
                           impact of                                 forecasted timing
                                                                                          procedures, reporting               flow volatility
                           exchange rate                             of foreign
                                                                                          systems and risk monitoring         caused by
                           risk.                                     currency receipts,
                                                                                          measures are in place, with         exchange rate
                                                                     deposit periods or
                                                                                          clearly defined authorization       movements in
                                                                     foreign currency
                                                                                          limits, operational                 such receipts, and
                                                                     payments.
                                                                                          guidelines, accounting              reducing the
                                                                                          treatment and disclosure            impact of
                                                  Annual Report 2025
                                                                           requirements. The types,        exchange rate
                                                                           scale and duration of           fluctuations on the
                                                                           transactions are determined     Company’s
                                                                           based on the Company’s risk     operations.
                                                                           tolerance, ensuring effective
                                                                           overall management.
  Other descriptions:
  □ Applicable √ Not applicable
  (2). The Company conducts qualifying hedging operations and applies hedge accounting
  √ Applicable □ Not applicable
                                                                                   Unit: Yuan        Currency: RMB
                                               Cumulative fair value
                                               hedge adjustment of
                       Carrying value of the      the hedged item      Hedge effectiveness     Impact of hedge accounting
        Item           hedged item and the         included in the     and sources of hedge    on the Company’s financial
                        hedging instrument      recognized carrying       ineffectiveness              statements
                                                value of the hedged
                                                        item
Types of hedge risk
                                                                                               As at the end of the
                                                                                               Reporting Period, the
                                                                                               amount recognized in
                                                                                               derivative financial
                                                                                               liabilities was RMB
                                                                       Correlation between
                                                                                               recognized in other
Foreign exchange                                                       the hedged item and
                                 -46,320.08    Not applicable                                  comprehensive income was
risks                                                                  the hedging
                                                                                               RMB -36,129.66, and the
                                                                       instrument
                                                                                               amount recognized in
                                                                                               deferred tax assets was
                                                                                               RMB10,190.42. The gain
                                                                                               or loss arising during the
                                                                                               Reporting Period amounted
                                                                                               to RMB -2,293,967.43.
Types of hedge
  Other descriptions:
  □ Applicable √ Not applicable
  (3). The Company conducts hedging operations for risk management, expects to achieve its risk
  management objectives, but does not apply hedge accounting
  □ Applicable √ Not applicable
  Other descriptions:
  □ Applicable √ Not applicable
  (1). Classification of transfer modalities
  √ Applicable □ Not applicable
                                                                                   Unit: Yuan      Currency: RMB
                                                     Amount of                                       Basis for
                         Nature of financial
   Transfer modality                               financial assets         Derecognition           determining
                         assets transferred
                                                      transferred                                  derecognition
  Bill endorsement       Bank acceptance               26,467,790.18     Terminated              Almost all risks
                                                     Annual Report 2025
                           bills                                                                 and remuneration
                                                                                                 of the ownership
                                                                                                 have been
                                                                                                 transferred
                           Commercial
    Bill endorsement                                       29,545,500.78    Non-terminated       Not applicable
                           acceptance draft
                           Finance company
    Bill endorsement                                        9,687,733.36    Non-terminated       Not applicable
                           acceptance bills
    Assignment or          Digital accounts
    subdivision            receivable claims               10,446,427.33    Non-terminated       Not applicable
    transfer               certificates
           Total                     /                     76,147,451.65            /                     /
    (2). Financial assets derecognized as a result of a transfer
    √ Applicable □ Not applicable
                                                                                    Unit: Yuan      Currency: RMB
                                        Modality for the
                                                                   Amount of financial       Gains or losses related
               Item                   transfer of financial
                                                                   assets derecognized         to derecognition
                                             assets
    Bank acceptance bills           Bill endorsement                       26,467,790.18
            Total                               /                          26,467,790.18
    (3). Transferred financial assets that continue to be involved
    √ Applicable □ Not applicable
                                                                                    Unit: Yuan   Currency: RMB
                                                                    Amount of assets        Amount of liabilities
               Item                 Asset transfer modality        generated through         generated through
                                                                 continuing involvement continuing involvement
    Commercial acceptance
                                    Bill endorsement                       29,545,500.78              29,545,500.78
    draft
    Finance company
                                    Bill endorsement                        9,687,733.36               9,687,733.36
    acceptance bills
    Digital accounts
                                    Assignment or
    receivable claims                                                      10,446,427.33              10,446,427.33
                                    subdivision transfer
    certificates
               Total                            /                          49,679,661.47              49,679,661.47
    Other descriptions:
    □ Applicable √ Not applicable
    XIII. Disclosure of Fair Value
    √ Applicable □ Not applicable
                                                                                    Unit: Yuan       Currency: RMB
                                                                           Closing fair value
                                                                       Level-2 fair     Level-3 fair
                  Item                        Level-1 fair value
                                                                          value            value             Total
                                                measurement
                                                                       measurement measurement
I. Continuous fair value
measurement
(I) Trading financial assets
through profit or loss
                                                 Annual Report 2025
(1) Debt instrument investment
(2) Equity instrument investment
(3) Derivative financial assets
(4) Others                                  4,108,620,317.14                                        4,108,620,317.14
value through profit or loss
(1) Debt instrument investment
(2) Equity instrument investment
(II) Other debt investments
(III) Other equity instrument
investments
(IV) Investment real estate
transferred after appreciation
(V) Biological assets
(VI) Receivables financing                                        31,211,919.98                        31,211,919.98
Total assets continuously measured
at fair value
(VI) Trading financial liabilities
through profit or loss
Including: Trading bonds issued
        Derivative financial liabilities
        Others
fair value through profit or loss
(VII) Derivative financial liabilities                                46,320.08                             46,320.08
Total liabilities continuously
measured at fair value
II. Non-continuous fair value
measurement
(I) Assets held for sale
Total assets not continuously
measured at fair value
Total liabilities not continuously
measured at fair value
         first-level fair value
    √ Applicable □ Not applicable
         The input value of the first level is the unadjusted quotation of the same asset or liability that can be
    obtained on the measurement date in the active market.
                                             Annual Report 2025
     adopted by items continuously and not continuously measured at the second-level fair value
√ Applicable □ Not applicable
     The input value of the second level is the directly or indirectly observable input value of related
assets or liabilities except the input value of the first level.
    adopted by items continuously and not continuously measured at the third-level fair value
□ Applicable √ Not applicable
     of items continuously measured at the third-level fair value and sensitivity analysis on
     unobservable parameters
□ Applicable √ Not applicable
     during the period, reasons for the conversion and policies to determine the conversion time
     should be provided
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
XIV. Related Parties and Related-Party Transactions
√ Applicable □ Not applicable
                                                                         Unit: 0’000 Currency: RMB
                                                                    The parent
                                                                                        The parent
Name of the                                                         company’s
                Registered      Nature of the       Registered                      company’s voting
  parent                                                           shareholding
                 address         business            capital                         right ratio in the
 company                                                            ratio in the
                                                                                      Company (%)
                                                                   Company (%)
M&G
Holdings                        Industrial
                Shanghai                            300 million              58.20                58.20
(Group) Co.,                    Investment
Ltd.
Descriptions on the parent company of the Company
No
The ultimate controlling party of the Company is Chen Huwen, Chen Huxiong and Chen Xueling
Other descriptions:
No
Particulars on subsidiaries of the Company are shown in the relevant notes
√ Applicable □ Not applicable
                                            Annual Report 2025
    For particulars on subsidiaries of the Company, see Note X. Equity in Other Entities for details.
For important joint ventures and associates of the Company, see the Notes for details
√ Applicable □ Not applicable
     For important joint ventures and associates of the Company, see Note X. “Equity in Other Entities”
for details.
Particulars on other joint ventures and associates which have related-party transactions with the
Company in the current period or had related-party transactions with the Company in the previous
period and form balances are as follows
√ Applicable □ Not applicable
             Name of joint venture and associate                   Relationship with the Company
Ningbo Zhongchen Equity Investment Partnership
                                                             Associates
(Limited Partnership)
Shanghai Pen-making Technology Services Co., Ltd.   （上海
                                                             Associates
制笔技术服务有限公司）
Shanghai Mymybear Enterprise Management Co., Ltd.（上
                                                             Associates
海沫沫班长企业管理有限公司）
Other descriptions:
√ Applicable □ Not applicable
    During the current period, Shanghai Mymybear Enterprise Management Co., Ltd.（上海沫沫班长
企业管理有限公司） became a controlled subsidiary resulting from a business combination not under
common control.
√ Applicable □ Not applicable
                                                          Relationship between other related parties and
            Name of other related parties
                                                                          the Company
PELEG DESIGN Ltd                                         Others
Shanghai M&G Charity Foundation                          Others
Shanghai KACO Industrial Co., Ltd.                       Others
Guo Weilong                                              Others
Guo Shaomin                                              Others
Nanjing Zhaochen Stationery Sales Co., Ltd.              Others
Nanjing Chenri Stationery Sales Co., Ltd.                Others
Nanjing Youchen Stationery Sales Co., Ltd.               Others
Nanjing Liuhe District Weifeng Qichen Cultural
                                                         Others
Products Co., Ltd.
Nanjing Chenzhiheng Stationery Sales Co., Ltd.（南
                                                         Others
京晨之恒文化用品销售有限公司）
Nanjing Chenzhiguang Stationery Sales Co., Ltd.（南
                                                         Others
京晨之光文化用品销售有限公司）
Nanjing Chenzhipei Stationery Sales Co., Ltd.（南京
                                                         Others
晨之沣文化用品销售有限公司）
RISING GOAL INVESTMENTS PTE. LTD.                        Others
Contemporary Amperex Technology Co., Limited             Others
Other descriptions:
No
                                               Annual Report 2025
   (1). Related-party transactions for the purchase and sales of goods and the rendering and receipt
        of services
   Table of information on the purchase of goods/the receipt of services
   √ Applicable □ Not applicable
                                                                                    Unit: Yuan       Currency: RMB
                                                                                                            Amount
                                               Amount                                     Over the
                          Related-party                              Approved                             accounted for
                                            accounted for                             transaction line
    Related party          transaction                           transaction line                             in the
                                            in the current                                or not (if
                             content                              (if applicable)                           previous
                                                period                                   applicable)
                                                                                                             period
                         Receipt of
PELEG DESIGN Ltd                            2,470,420.00                                                 2,769,000.00
                         services
Shanghai KACO            Purchase of
Industrial Co., Ltd.     goods
Shanghai Mymybear
Enterprise
Management Co., Ltd.     Purchase of
（上海沫沫班长企业                goods
管理有限公司）
Shanghai Pen-making
Technology Services      Receipt of
Co., Ltd.（上海制笔技                                533,886.22                                                    57,825.74
                         services
术服务有限公司）
M&G Holdings             Purchase of
(Group) Co., Ltd.        goods
   Table of information on the sale of goods/the rendering of services
   √ Applicable □ Not applicable
                                                                                   Unit: Yuan Currency: RMB
                                    Related-party             Amount accounted for       Amount accounted for
         Related party
                                 transaction content           in the current period      in the previous period
   Sales entities controlled
                               Sale of goods                            6,068,721.47               180,530,383.08
   by Guo Weilong
   Sales entities controlled
                               Sale of goods                          256,305,112.44                85,811,972.83
   by Guo Shaomin
   Sales entities controlled   Provision of labour
   by Guo Shaomin              service
   PELEG DESIGN Ltd            Sale of goods                            1,655,687.01                   740,060.70
   Shanghai Mymybear
   Enterprise Management
   Co., Ltd.（上海沫沫班长            Sale of goods                                                         2,735,930.79
   企业管理有限公司）
   Shanghai Mymybear
   Enterprise Management       Provision of labour
   Co., Ltd.（上海沫沫班长                                                                                  1,522,745.49
                               service
   企业管理有限公司）
   Shanghai Pen-making
   Technology Services Co.,    Provision of labour
   Ltd.（上海制笔技术服务               service
   有限公司）
                                             Annual Report 2025
RISING GOAL
INVESTMENTS PTE.             Sale of goods                        52,097,285.65          21,495,428.17
LTD.
M&G Holdings (Group)
                             Sale of goods                          100,555.26               41,330.97
Co., Ltd.
Contemporary Amperex
                             Sale of goods                          189,650.17              121,250.66
Technology Co., Limited
Shanghai M&G Charity
                             Sale of goods                          110,853.28
Foundation
Particulars on related-party transactions for the purchase and sales of goods and the rendering and
receipt of services
√ Applicable □ Not applicable
No
(2). Particulars on related-party entrusted management/contracting                    and   entrusting
management/outsourcing
Table of information on the Company’s entrusted management/contracting:
□ Applicable √ Not applicable
Particulars on related-party entrusting/contracting
□ Applicable √ Not applicable
Table of information on the Company’s entrusting management/outsourcing
□ Applicable √ Not applicable
Particulars on related-party management/outsourcing
□ Applicable √ Not applicable
(3). Particulars on related-party leases
The Company as the lessor:
√ Applicable □ Not applicable
                                                                            Unit: Yuan    Currency: RMB
                                                              Rental income            Rental income
                                       Type of leased
          Name of lessee                                     recognized in the        recognized in the
                                          assets
                                                               current period          previous period
Shanghai Mymybear Enterprise
                                       Self-owned
Management Co., Ltd.（上海沫沫                                                                   396,330.28
                                       office building
班长企业管理有限公司）
M&G Holdings (Group) Co., Ltd.         Self-owned
（晨光控股（集团）有限公司）                         office building
M&G Holdings (Group) Co., Ltd.
                                       Property fee                    20,954.37
（晨光控股（集团）有限公司）
M&G Holdings (Group) Co., Ltd.
                                       Energy cost                     30,096.28
（晨光控股（集团）有限公司）
                                                                                 Annual Report 2025
The Company as the lessee:
√ Applicable □ Not applicable
                                                                                                                                                       Unit: Yuan         Currency: RMB
                                              Amount accounted for in the current period                                      Amount accounted for in the previous period
                                Rental                                                                           Rental
                               costs for     Variable                                                           costs for     Variable
                             short-term        lease                                                          short-term        lease
                             leases and     payments                                                          leases and     payments
                                                                             Interest                                                                        Interest
 Name of        Type of        leases of        not                                             Increase in     leases of        not                                          Increase in
                                                            Rental         expense on                                                        Rental        expense on
  lessor     leased assets   low-value       included                                          right-of-use   low-value       included                                       right-of-use
                                                           payments            lease                                                        payments           lease
                             assets with      in lease                                            assets      assets with      in lease                                         assets
                                                                            liabilities                                                                     liabilities
                             simplified     liabilities                                                       simplified     liabilities
                              treatment          (if                                                           treatment          (if
                                  (if      applicable)                                                             (if      applicable)
                             applicable)                                                                      applicable)
             Self-owned
             houses
             (including
             office
M&G          buildings,
Holdings     workshops,
(Group)      parking
Co., Ltd.    spaces,
             warehouses,
             dormitory
             buildings,
             etc.)
             Self-owned
M&G
             office
Holdings
             buildings        70,857.17                   21,016,938.20   1,308,506.87         6,904,298.76    66,857.16                   19,187,344.23   1,568,961.13      12,508,685.91
(Group)
             and parking
Co., Ltd.
             spaces
M&G
Holdings
             Utilities                                     6,006,506.14                                                                     6,391,171.48
(Group)
Co., Ltd.
Descriptions on related-party leases
□ Applicable √ Not applicable
                                            Annual Report 2025
(4). Particulars on related-party guarantees
The Company as a guarantor
□ Applicable √ Not applicable
The Company as a guaranteed party
□ Applicable √ Not applicable
Descriptions on related-party guarantees
□ Applicable √ Not applicable
(5). Related-party fund lending
□ Applicable √ Not applicable
(6). Related-party asset transfer and debt restructuring
□ Applicable √ Not applicable
(7). Compensation of key management personnel
□ Applicable √ Not applicable
(8). Other related-party transactions
□ Applicable √ Not applicable
(1). Receivables
√ Applicable □ Not applicable
                                                                          Unit: Yuan    Currency: RMB
                                          Closing balance                      Opening balance
    Items          Related party      Carrying        Bad debt          Carrying
                                                                                    Bad debt provisions
                                      balance        provisions         balance
                   Shanghai
Accounts           M&G
receivable         Charity
                   Foundation
                   Shanghai
                   Mymybear
                   Enterprise
Accounts           Management
                   Co., Ltd.（上                                          312,428.41           15,621.42
receivable
                   海沫沫班长
                   企业管理有
                   限公司）
                   Sales entities
Accounts
                   controlled by                                       2,288,601.66         114,430.08
receivable
                   Guo Weilong
                   Contemporar
Accounts           y Amperex
receivable         Technology
                   Co., Limited
Accounts           Sales entities
receivable         controlled by
                                                   Annual Report 2025
                      Guo Shaomin
                      M&G
Accounts              Holdings
receivable            (Group) Co.,
                      Ltd.
                      RISING
                      GOAL
Accounts                                                                       17,357,788.4
                      INVESTME            53,752,198.68       3,023,786.60                           867,889.42
receivable                                                                                3
                      NTS PTE.
                      LTD.
Accounts              PELEG
receivable            DESIGN Ltd
                      Shanghai
                      Pen-making
                      Technology
Prepaid               Services Co.,            12,800.00
accounts              Ltd.（上海制
                      笔技术服务
                      有限公司）
                      Shanghai
                      Mymybear
                      Enterprise
Other                 Management
                      Co., Ltd.（上                                                 6,054.68               302.73
receivables
                      海沫沫班长
                      企业管理有
                      限公司）
                      M&G
Other                 Holdings
receivables           (Group) Co.,
                      Ltd.
                      Sales entities
Other
                      controlled by          288,532.11         14,426.61
receivables
                      Guo Shaomin
(2). Payables
√ Applicable □ Not applicable
                                                                                   Unit: Yuan     Currency: RMB
                                                               Carrying balance at       Carrying balance at the
              Items                       Related party
                                                              the end of the period      beginning of the period
                                       Sales entities
Accounts payable                       controlled by Guo                                               2,938.49
                                       Weilong
                                       Sales entities
Accounts payable                       controlled by Guo                  28,513.59                    2,884.61
                                       Shaomin
                                       Shanghai KACO
Accounts payable                                                         255,776.88                1,045,140.04
                                       Industrial Co., Ltd.
                                       Shanghai
                                       Mymybear
                                       Enterprise
Accounts payable                       Management Co.,                                               156,447.87
                                       Ltd.（上海沫沫班
                                       长企业管理有限
                                            Annual Report 2025
                                公司）
                                Sales entities
Other payables                  controlled by Guo                  24,000.00             32,000.00
                                Weilong
                                Sales entities
Other payables                  controlled by Guo                 866,000.00            632,000.00
                                Shaomin
                                Shanghai KACO
Other payables                                                     20,000.00
                                Industrial Co., Ltd.
Other payables                  Guo Shaomin                      4,250,000.00
                                M&G Holdings
Lease liabilities                                            11,861,111.14            15,451,571.65
                                (Group) Co., Ltd.
Non-current liabilities due     M&G Holdings
within one year                 (Group) Co., Ltd.
(3). Others
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
XV. Share-based Payments
(1). Details
□ Applicable √ Not applicable
(2). Outstanding stock options or other equity instruments at the end of the period
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
                                           Annual Report 2025
XVI. Commitments and Contingencies
√ Applicable □ Not applicable
Important external commitments, nature, and amount existing on the balance sheet date
     (1) The subsidiary, Axus Stationery (Shanghai) Company Ltd. (hereinafter referred to as “Axus
Stationery”), entered into the Maximum Mortgage Contract numbered ZD9874202200000005 and the
Supplementary Agreement to the Maximum Mortgage Contract number ZD9874202200000005-01 with
Shanghai Pudong Development Bank Co., Ltd. Fengxian Sub-branch respectively on September 15,
(2013) No. 015437, Property HFDQ Zi (2013) No. 013396 and Property HFDQ Zi (2015) No. 015718 at
the maximum amount of secured obligation of RMB200 million and for the term of credit line from
September 15, 2022 to December 31, 2027.
     (2) The subsidiary Jiangsu Marco Pen Co., Ltd. (江苏马可笔业有限公司) entered into the
Maximum Mortgage Contract numbered BD133202411010001201 with Jiangsu Siyang Rural
Commercial Bank Co., Ltd. on October 30, 2024, under which it mortgaged its lands and plants under
Su (2019) Siyang County Real Estate No. 0018047, Su (2019) Siyang County Real Estate No. 0018032,
Su (2019) Siyang County Real Estate No. 0017990 and Su (2019) Siyang County Real Estate No.
     (3) The subsidiary Jiangsu Marco Pen Co., Ltd. (江苏马可笔业有限公司) entered into the
Maximum Mortgage Contract numbered DY131425000031 with Bank of Jiangsu Co., Ltd. Suqian
Branch on June 4, 2025, under which it mortgaged its lands and plants under Su (2019) Siyang County
Real Estate No. 0017990, Su (2019) Siyang County Real Estate No. 0018047, Su (2019) Siyang County
Real Estate No. 0018032 and Su (2019) Siyang County Real Estate No. 0017993 at the maximum
amount of secured obligation of RMB45.78 million and for the term of credit line from June 4, 2025 to
May 21, 2028.
     (4) The subsidiary Jiangsu Marco Pen Co., Ltd. (江苏马可笔业有限公司) entered into the
Maximum Pledge Contract numbered 110011125001C001 with Bank of Jiangsu Co., Ltd. Suqian
Branch on December 19, 2025, under which it pledged its patents, namely: an automatic plate turnover
device (Certificate No. CN109850536B), an automatic feeding round stacking plate device (Certificate
No. CN107253613B), a defect detection and sorting device for wooden pencil boards during processing
(Certificate No. CN105548209B), and a preparation method for colored pencil lead (Certificate No.
CN101412867B). The maximum principal amount secured under this contract is RMB10.00 million,
with the term of the pledge facility valid from December 19, 2025 to December 19, 2026.
     Among them, the unconfirmed commitments related to related parties are detailed in Note XIV.
“Related Parties and Related-Party Transactions”; those related to investments in joint ventures are
detailed in Note X. “Equity in Other Entities”; and those related to lease are detailed in Note VII.(82)
Lease.
(1). Important contingencies on the balance sheet date
√ Applicable □ Not applicable
     The contingent liabilities related to investments in joint ventures or associated enterprises are
detailed in Note X. “Equity in Other Entities”.
(2). If the Company has no important contingent issues that need to be disclosed, it should also be
     explained:
□ Applicable √ Not applicable
                                            Annual Report 2025
□ Applicable √ Not applicable
XVII. Post-balance Sheet Date Events
□ Applicable √ Not applicable
√ Applicable □ Not applicable
                                                                           Unit: Yuan     Currency: RMB
Profits or dividends proposed to be
distributed
Profits or dividends reviewed and
approved to be declared for distribution
      According to the Profit Distribution Plan for 2025 and Authorization of Interim Dividend for 2026
reviewed and approved at the 15th meeting of the 6th session of Board of Directors held by the
Company on March 30, 2026, the Company proposes to distribute cash dividend of RMB10.00 (tax
inclusive) per 10 shares based on the Company’s total share capital (exclusive of shares in the
Company’s special securities account for repurchased shares) registered as at the registration date for the
implementation of dividend distribution. The remaining distributable profits in 2025 will be carried
forward to the following year. This proposal is subject to review and approval by the Company’s 2025
annual meeting of shareholders.
□ Applicable √ Not applicable
□ Applicable √ Not applicable
XVIII. Other Important Issues
    For details, please refer to “Analysis and Explanation from the Company on the Reasons and
Impact of the Change of Accounting Policies, Accounting Estimates or Correction on Significant
Accounting Errors” under “Major Events”.
□ Applicable √ Not applicable
(1). Non-monetary asset exchange
□ Applicable √ Not applicable
(2). Other asset replacement
□ Applicable √ Not applicable
□ Applicable √ Not applicable
                                                Annual Report 2025
  □ Applicable √ Not applicable
  (1). Basis for determining reporting segments and accounting policies
  √ Applicable □ Not applicable
        According to the Company’s internal organizational structure, management requirements and
  internal reporting system, two reporting segments are identified, namely: direct office supplies business
  and traditional business. The Company’s reporting segments provide different products or services, or
  engages in operational activities in different regions. Since each segment requires different technical or
  marketing strategies, the management of the Company separately manages the operating activities of
  each reporting segment and regularly evaluates the operating results of these reporting segments to
  determine the allocation of resources to them and the evaluation of their performance.
        The transfer price between segments is determined on the basis of the actual transaction price, and
  the expenses indirectly attributable to each segment are grouped according to the actual share of each
  segment. Allocation among segments is conducted accordingly. Assets are allocated according to the
  operation of the segment and the location of the asset. Segment liabilities include liabilities that can be
  attributed to the segment formed by the segment’s operating activities. If the expenses associated with
  liabilities shared by multiple operating segments are allocated to these operating segments, the jointly
  assumed liabilities are also allocated to these operating segments.
  (2). Financial information of reporting segments
  √ Applicable □ Not applicable
                                                                            Unit: Yuan      Currency: RMB
                             Direct office            Traditional       Inter-segment
          Item                                                                                     Total
                           supplies business           business          elimination
Revenue from foreign
transactions
Revenue from
inter-segment                  10,046,967.86         163,649,443.50      173,696,411.36
transactions
Income from
investments in
associates and joint
ventures
Credit impairment
                              -12,023,878.96          -10,849,006.93                            -22,872,885.89
losses
Asset impairment
                                  -778,757.53          -8,592,163.70                             -9,370,921.23
losses
Depreciation and
Amortization charges
Total profits (total
losses)
Income tax expenses           116,613,594.33         231,045,215.82          124,611.77        347,534,198.38
Net profits (net losses)      334,648,260.13       1,026,895,609.75          373,835.29      1,361,170,034.59
Total assets                8,264,481,946.01       9,820,405,853.70        9,921,068.56     18,074,966,731.15
Total liabilities           5,548,671,922.83       2,657,084,160.93        7,786,963.26      8,197,969,120.50
  (3). If the Company does not have a reporting segment, or if it cannot disclose the total assets and
        total liabilities of each reporting segment, the reason should be explained
  □ Applicable √ Not applicable
                                                                         Annual Report 2025
               (4). Other descriptions
               □ Applicable √ Not applicable
               □ Applicable √ Not applicable
               □ Applicable √ Not applicable
               XIX. Notes on the Main Items of the Parent Company’s Financial Statements
               (1). Disclosure by account age
               √ Applicable □ Not applicable
                                                                                                              Unit: Yuan    Currency: RMB
                                                              Carrying balance at the end of                    Carrying balance at the
                            Account age
                                                                       the period                               beginning of the period
               Within one year (including one
               year)
               Including: Sub-item within one
               year
               Within one year                                                      263,688,075.98                                 220,362,762.45
               One to two years                                                          37,354.88                                     925,241.61
               Two to three years                                                        17,449.81
               Above three years
               Three to four years
               Four to five years
               Above five years
                             Total                                                  263,742,880.67                                 221,288,004.06
               (2). Disclosure by accruing method for bad debt provisions
               √ Applicable □ Not applicable
                                                                                                             Unit: Yuan          Currency: RMB
                                           Closing balance                                                              Opening balance
                    Carrying balance            Bad debt provisions                              Carrying balance           Bad debt provisions
 Category                                                                     Carrying                                                                  Carrying
                                                             Accruing                                                                    Accruing
                                Percentage                                     value                         Percentage                                  value
                  Amount                      Amount        percentage                         Amount                      Amount       percentage
                                   (%)                                                                          (%)
                                                                (%)                                                                         (%)
Bad debt
provisions
accrued
separately
Including:
Bad debt
provisions
accrued
according to
the
combination
Including:
Account age
analysis
                                                                Annual Report 2025
Related
parties in
the scope of
the            196,440,757.19    74.48                            196,440,757.19   139,589,348.28   63.08                            139,589,348.28
consolidated
financial
statements
    Total      263,742,880.67    /       3,384,042.29       /     260,358,838.38   221,288,004.06   /       4,316,243.19    /        216,971,760.87
               Bad debt provisions accrued separately:
               □ Applicable √ Not applicable
               Bad debt provisions accrued according to the combination:
               √ Applicable □ Not applicable
               Combination item: Credit risk characteristic combination
                                                                                               Unit: Yuan   Currency: RMB
                                                                               Closing balance
                          Item                                                                          Accruing percentage
                                               Carrying balance               Bad debt provisions
                                                                                                               (%)
               Account age analysis                      67,302,123.48                 3,384,042.29                      5.03
               Related parties in the
               scope of the
               consolidated financial
               statements
                       Total                            263,742,880.67                   3,384,042.29
               Description on bad debt provisions accrued according to the combination:
               □ Applicable √ Not applicable
               Bad debt provisions accrued according to the general model of expected credit losses
               □ Applicable √ Not applicable
               Basis of classification of stages and percentage of provision for bad debts
               No
               Notes to the significant changes in the book balance of accounts receivable arising from changes in the
               provision for losses in the current period:
               □ Applicable √ Not applicable
               (3). Particulars on bad debt provisions
               √ Applicable □ Not applicable
                                                                                            Unit: Yuan   Currency: RMB
                                                                  Change of the current period
                                      Opening                        Recovere                                Closing
                   Category                                                       Resold or       Other
                                      balance             Accrued      d or                                  balance
                                                                                  written-off    changes
                                                                     reversed
               Account age
               analysis
                    Total            4,316,243.19        -932,200.90                                                  3,384,042.29
               Significant bad debt provision amounts recovered or reversed in the current period:
               □ Applicable √ Not applicable
               Other descriptions
               No
                                             Annual Report 2025
(4). Particulars on accounts receivable actually written-off in the current period
□ Applicable √ Not applicable
Writing-off of significant accounts receivable
□ Applicable √ Not applicable
Description on writing-off of accounts receivable:
□ Applicable √ Not applicable
(5). Particulars on top five accounts receivable and contract assets in terms of the balance at the
     end of the period based on debtors
√ Applicable □ Not applicable
                                                                           Unit: Yuan     Currency: RMB
                                                                         Percentage (%)
                                                                           in the total
                                        Closing       Closing balance     balance at the Balance of bad
                  Closing balance
  Company                              balance of       of accounts         end of the    debt provisions
                    of accounts
   name                                 contract      receivable and        period of      at the end of
                    receivable
                                         assets       contract assets        accounts        the period
                                                                         receivable and
                                                                         contract assets
First                  78,648,410.00                    78,648,410.00              29.82
Second                 40,082,272.90                    40,082,272.90              15.20
Third                  27,559,517.15                    27,559,517.15              10.45
Fourth                 18,012,119.77                    18,012,119.77                6.83      900,605.99
Fifth                  13,108,881.65                    13,108,881.65                4.97      655,444.08
     Total            177,411,201.47                   177,411,201.47              67.27    1,556,050.07
Other descriptions:
No
Other descriptions:
□ Applicable √ Not applicable
Presented by item
√ Applicable □ Not applicable
                                                                           Unit: Yuan    Currency: RMB
                Item                             Closing balance                  Opening balance
Interest receivable
Dividend receivable
Other receivables                                       521,438,557.39                  1,089,091,354.20
Total                                                   521,438,557.39                  1,089,091,354.20
Other descriptions:
□ Applicable √ Not applicable
Interest receivable
(1). Classification of interest receivable
□ Applicable √ Not applicable
                                             Annual Report 2025
(2). Important overdue interest
□ Applicable √ Not applicable
(3). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
(4). Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of interest receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
□ Applicable √ Not applicable
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(6). Particulars on interest receivable actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant interest receivable
□ Applicable √ Not applicable
Notes on write-off:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Dividend receivable
(1). Dividend receivable
□ Applicable √ Not applicable
                                            Annual Report 2025
(2). Important dividend receivable with the account age over one year
□ Applicable √ Not applicable
(3). Disclosure by accruing method for bad debt provisions
□ Applicable √ Not applicable
Bad debt provisions accrued separately:
□ Applicable √ Not applicable
Description on bad debt provisions accrued separately:
□ Applicable √ Not applicable
Bad debt provisions accrued according to the combination:
□ Applicable √ Not applicable
(4). Bad debt provisions accrued according to the general model of expected credit losses
□ Applicable √ Not applicable
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of dividends receivable arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
(5). Particulars on bad debt provisions
□ Applicable √ Not applicable
Significant bad debt provision amounts recovered or reversed in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(6). Particulars on dividend receivable actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant dividend receivable
□ Applicable √ Not applicable
Notes on write-off:
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
Other receivables
(1). Disclosure by account age
√ Applicable □ Not applicable
                                                                              Unit: Yuan   Currency: RMB
                                           Carrying balance at the end           Carrying balance at the
             Account age
                                                  of the period                  beginning of the period
                                                   Annual Report 2025
     Within one year (including one year)                      128,749,655.62                     378,367,180.81
     Including: Sub-item within one year
     Within one year                                           128,749,655.62                     378,367,180.81
     One to two years                                          104,722,713.26                     200,710,586.90
     Two to three years                                         97,637,346.64                     202,098,108.30
     Above three years                                         191,205,004.21                     309,119,611.93
     Three to four years
     Four to five years
     Above five years
     Less: Bad debt provisions                                    -876,162.34                      -1,204,133.74
                      Total                                    521,438,557.39                   1,089,091,354.20
     (2). Particulars on classification by amount nature
     √ Applicable □ Not applicable
                                                                                   Unit: Yuan   Currency: RMB
                                            Carrying balance at the end of           Carrying balance at the
                Amount nature
                                                     the period                      beginning of the period
     Personal loans and petty cash                           4,376,097.84                           5,350,793.28
     Consolidated balance of
     related-parties current accounts
     Amount paid for materials                                     993,904.71                       5,390,341.29
     Consolidated balance of
     related-parties current accounts -                         2,994,578.01                        3,514,957.39
     provisional input tax
     Non-housing deposit and margin                              321,200.00                           261,200.00
     Housing deposit and margin                                3,165,394.00                         3,231,994.00
     Others                                                    3,324,745.33                           681,118.80
                     Total                                   522,314,719.73                     1,090,295,487.94
     (3). Particulars on accruing of bad debt provisions
     √ Applicable □ Not applicable
                                                                                  Unit: Yuan      Currency: RMB
                                     Phase 1               Phase 2                    Phase 3
                                                     Expected credit loss       Expected credit loss
                                 Expected credit        for the entire             for the entire
     Bad debt provisions                                                                                     Total
                                  losses in the      duration (no credit          duration (credit
                                 next 12 months          impairment                 impairment
                                                          occurred)                  occurred)
Balance as at January 1, 2025       1,204,133.74                                                           1,204,133.74
Balance as of January 1, 2025
in the current period
- Transferred into Phase 2
- Transferred into Phase 3
- Reversed into Phase 2
- Reversed into Phase 1
Accrued in the current period        -327,971.40                                                           -327,971.40
Reserved in the current period
Resold in the current period
Written-off in the current
period
Other Changes
Balance as at December 31,
                                               Annual Report 2025
Basis of classification of stages and percentage of provision for bad debts
No
Notes to the significant changes in the book balance of other receivables arising from changes in the
provision for losses in the current period:
□ Applicable √ Not applicable
Amount of bad debt provisions accrued for the current period and the basis for assessing whether the
credit risk of financial instruments has increased significantly:
□ Applicable √ Not applicable
(4). Particulars on bad debt provisions
√ Applicable □ Not applicable
                                                                             Unit: Yuan   Currency: RMB
                                                  Change of the current period
                      Opening                      Recovere                                    Closing
  Category                                                       Resold or          Other
                      balance       Accrued           d or                                     balance
                                                                 written-off      changes
                                                    reversed
Account age
analysis
Deposit for
housing lease
    Total         1,204,133.74     -327,971.40                                                876,162.34
Significant bad debt provision amounts reversed or recovered in the current period:
□ Applicable √ Not applicable
Other descriptions:
No
(5). Particulars on other receivables actually written-off in the current period
□ Applicable √ Not applicable
Including: Write-off of significant other receivables:
□ Applicable √ Not applicable
Notes to the write-off of other receivables:
□ Applicable √ Not applicable
(6). Particulars on top 5 other receivables in terms of the balance at the end of the period based on
debtors
√ Applicable □ Not applicable
                                                                              Unit: Yuan   Currency: RMB
                                           Annual Report 2025
                                     Percenta
                                      ge (%)
                                       in the
                                        total
                                      balance                                                   Bad debt
                                       at the        Account                                   provisions
Company name       Closing balance                                       Account age
                                       end of         nature                                     closing
                                         the                                                    balance
                                     period of
                                        other
                                     receivabl
                                          es
Shanghai M&G
Information                                       Consolidated
                                                                   Within one year:
Technology Co.,                                   balance of
                                                                   RMB95.14 million
Ltd.（上海晨光          426,489,904.72        81.65    related-partie
                                                                   Above one year:
                                                  s current
信息科技有限                                                             RMB331.35 million
                                                  accounts
公司）
                                                  Consolidated
                                                                   Within one year:
Axus Stationery                                   balance of
                                                                   RMB2.44 million
(Shanghai)           60,000,000.00       11.49    related-partie
                                                                   Above one year:
Company Ltd.                                      s current
                                                                   RMB57.56 million
                                                  accounts
Jiumu      M&G
Store Enterprise                                  Consolidated
Management                                        balance of
                                                                   Within one year:
Co., Ltd.（九木          6,962,431.65        1.33    related-partie
                                                                   RMB6.96 million
                                                  s current
杂物社企业管
                                                  accounts
理有限公司）
Guangdong
South      China                                  Consolidated
                                                                   Within one year:
M&G Stationery                                    balance of
                                                                   RMB3.75 million
Co., Ltd.（广东          4,539,401.38        0.87    related-partie
                                                                   Above one year:
                                                  s current
华南晨光文教                                                             RMB0.79 million
                                                  accounts
用品有限公司）
Shanghai M&G
Jiamei                                            Consolidated
Stationery Co.,                                   balance of
                                                                   Within one year:
Ltd.（上海晨光             3,694,539.46        0.71    related-partie
                                                                   RMB3.69 million
                                                  s current
佳美文具有限
                                                  accounts
公司）
      Total        501,686,277.21        96.05          /                     /
  (7). Other receivables reported due to centralized management of funds
  □ Applicable √ Not applicable
  Other descriptions:
  □ Applicable √ Not applicable
  √ Applicable □ Not applicable
                                                                         Unit: Yuan    Currency: RMB
   Item                       Closing balance                                Opening balance
                                                        Annual Report 2025
                                              Impai                                                 Impai
                                              rment                                                 rment
                      Carrying balance                  Carrying value       Carrying balance                   Carrying value
                                              provi                                                 provi
                                              sions                                                 sions
  Investment to
  subsidiaries
  Investments to
  associates and          35,606,521.84                    35,606,521.84         33,578,115.08                    33,578,115.08
  joint ventures
        Total         1,820,563,744.45                  1,820,563,744.45     1,678,535,337.69                  1,678,535,337.69
      (1). Investment to subsidiaries
      √ Applicable □ Not applicable
                                                                                        Unit: Yuan       Currency: RMB
                                                 Ope           Change of the current period
                                                 ning
                                                                                       Acc
                                                 bala
                                                                                       ruin                                 Closing
                                                 nce
                                                                                       g of                                  balance
                                                  of
                                                                             Withd     imp                                      of
                           Opening balance       imp                                          Ot      Closing balance
   Invested company                                          Additional       rawn      air                                 impairm
                           (carrying value)       air                                         her     (carrying value)
                                                             investment      invest    men                                     ent
                                                 men                                           s
                                                                              ment       t                                  provisio
                                                   t
                                                                                       pro                                     ns
                                                 pro
                                                 visi                                  visi
                                                 ons                                   ons
Colipu Technologies
Group Co., Ltd.（科力普           505,324,042.52                                                            505,324,042.52
科技集团股份有限公司）
Shanghai M&G Zhenmei
Stationery Co., Ltd.（上海        13,288,599.09                                                                13,288,599.09
晨光珍美文具有限公司）
Shanghai M&G
Stationery & Gift Co.,
Ltd.（上海晨光文具礼品                 199,419,400.00                                                            199,419,400.00
有限公司）
M&G Life Enterprise
Management Co., Ltd.（晨
光生活馆企业管理有限
公司）
Shanghai M&G Jiamei
Stationery Co., Ltd.（上海        30,000,000.00                                                                30,000,000.00
晨光佳美文具有限公司）
Shanghai M&G
Information Technology
Co., Ltd.（上海晨光信息               27,500,000.00                                                                27,500,000.00
科技有限公司）
Shenzhen Erya Creative
and Cultural
Development Co., Ltd.           6,339,300.00                                                                 6,339,300.00
（深圳尔雅文化创意发
展有限公司）
Shanghai M&G Office
Stationery Co., Ltd.（上海        50,000,000.00                                                                50,000,000.00
晨光办公用品有限公司）
Axus Stationery
(Shanghai) Company Ltd.
Shanghai Qizhihaowan
Culture and Creativity
Co., Ltd.（上海奇只好玩               28,500,000.00                                                                28,500,000.00
文化创意有限公司）
                                                                  Annual Report 2025
Shanghai Chenxun
Enterprise Management
Co., Ltd.（上海晨讯企业                    235,000,000.00                                                                       235,000,000.00
管理有限公司）
Guangdong South China
Stationery Co., Ltd. (广东              40,000,000.00                                                                       40,000,000.00
华南文教用品有限公司)
Hubei M&G Central
China          Information
Technology Co., Ltd.（湖                72,547,771.00                   140,000,000.00                                     212,547,771.00
北晨光华中信息科技有
限公司）
Shanghai M&G Online
Selection Stationery Co.,
Ltd.（上海晨光在线甄选                         20,000,000.00                                                                       20,000,000.00
文具有限公司）
          Total                    1,644,957,222.61                   140,000,000.00                                 1,784,957,222.61
        (2). Investments to associates and joint ventures
        √ Applicable □ Not applicable
                                                                                                       Unit: Yuan        Currency: RMB
                                                              Change of the current period
                                                                                                                                       Balance
                                                      Investme
                                                                                           Declarat                                        of
                                                       nt gains
                                                                                            ion on     Accruin                         impairm
                  Opening                                and      Adjustmen       Other                                     Closing
     Investme                   Additio   Withdra                                          distribut     g of                             ent
                   balance                              losses     t to other     equit                                     balance
        nt                        nal       wn                                              ion of     impairm    Othe                 provisio
                  (carrying                           recogniz    comprehen         y                                      (carrying
       unit                     investm   investm                                            cash        ent       rs                  ns at the
                    value)                            ed under        sive        chang                                      value)
                                  ent       ent                                            dividend    provisio                         end of
                                                          the       income          es
                                                                                             s or         ns                              the
                                                        equity
                                                                                            profits                                     period
                                                       method
     I. Joint venture
     Subtotal
     II. Associate
     Ningbo
     Zhongch
     en
     Equity
     Investme
     nt
     Partners
     hip
     (Limited
     Partners
     hip)
     Shanghai
     Pen-mak
     ing
     Technol
     ogy
     Services      2,851,883.                         -173,710                                                            2,678,173.
     Co., Ltd.             87                               .01                                                                  86
     （上海
     制笔技
     术服务
     有限公
     司）
     Subtotal
        Total
        (3). Impairment test of long-term equity investments
        □ Applicable √ Not applicable
                                          Annual Report 2025
Other descriptions:
No
(1). Particulars on revenue and operating costs
√ Applicable □ Not applicable
                                                                       Unit: Yuan     Currency: RMB
                         Amount accounted for in the current    Amount accounted for in the previous
        Item                           period                                  period
                            Revenue              Costs              Revenue               Costs
Main operations         3,925,773,362.06    2,128,754,070.75     4,170,394,130.88 2,298,583,148.56
Other operations          225,946,337.49      172,663,888.89       209,003,299.92     162,051,201.63
       Total            4,151,719,699.55    2,301,417,959.64     4,379,397,430.80 2,460,634,350.19
(2). Information on the breakdown of revenue and operating costs
√ Applicable □ Not applicable
                                                                         Unit: Yuan   Currency: RMB
                                                                 Total
      Classification of contracts
                                                  Revenue                  Operating costs
Types of goods
Classification by operation territory
Types of markets or customers
Types of contracts
Classification by the time of goods
transfer
in time
time period
Classification by contract term
Classification by sales channels
                  Total                           4,132,513,620.39             2,299,445,891.29
Other descriptions:
√ Applicable □ Not applicable
No
(3). Description on performance obligations
□ Applicable √ Not applicable
(4). Description on allocation to remaining performance obligations
□ Applicable √ Not applicable
(5). Significant contract changes or significant transaction price adjustments
□ Applicable √ Not applicable
                                            Annual Report 2025
Other descriptions:
Details on revenue:
                                                                      Unit: Yuan Currency: RMB
                                                Amount in the current
                      Item                                                Amount in the last period
                                                     period
Revenue from customer contracts                      4,132,513,620.39             4,359,257,641.43
Rental income                                            19,206,079.16               20,139,789.37
                 Total                               4,151,719,699.55             4,379,397,430.80
√ Applicable □ Not applicable
                                                                           Unit: Yuan     Currency: RMB
                                                       Amount accounted for       Amount accounted for
                         Item
                                                        in the current period     in the previous period
Long-term equity investment income calculated by
cost method
Long-term equity investment income accounted
for under the equity method
Investment income from disposal of long-term
equity investment
Investment income from held-for-trading financial
assets during the holding period
Dividend income from other equity instrument
investments during the holding period
Interest income from debt investment during the
holding period
Interest income from other debt investments
during the holding period
Investment income from disposal of
held-for-trading financial assets
Investment income from disposal of other equity
instrument investments
Investment income from disposal of debt
investment
Investment income from disposal of other debt
investments
Gains from debt restructuring
                       Total                                      2,265,183.03           287,842,385.68
Other descriptions:
No
□ Applicable √ Not applicable
XX. Supplementary Information
√ Applicable □ Not applicable
                                                                          Unit: Yuan     Currency: RMB
                       Item                                  Amount                    Description
Gains or losses on disposal of non-current assets
(inclusive of impairment allowance write-offs)
                                            Annual Report 2025
Government subsidies included in profits and
losses for the current period, excluding those that
are closely related to the Company’s normal
business operations and given in accordance with               186,963,410.61
defined criteria and in compliance with
government policies, and have a continuing
impact on the Company’s profits or losses
Gains or losses on fair-value changes in financial
assets and liabilities held by a non-financial
enterprise, as well as on disposal of financial
assets and liabilities (exclusive of the effective
portion of hedges that is related to the Company’s
normal business operations)
Reversal of provision for impairment of
receivables which are individually tested for                     2,298,338.54
impairment.
Other net non-operating income and expenses,
                                                                 -11,760,712.53
other than the above items
Minus: Effect of income tax                                     41,525,443.98
        Effect of minority equity (after tax)                   14,056,975.42
                         Total                                 186,529,361.09
Items unlisted in the Explanatory Announcement on Information Disclosure by Companies Offering
Securities to the Public No. 1: Non-Recurring Profits and Losses are identified as non-recurring profit
and loss items and the items are of a significant amount, and non-recurring profit and loss items listed in
the Explanatory Announcement on Information Disclosure by Companies Offering Securities to the
Public No. 1: Non-Recurring Profits and Losses are defined as recurring profits and losses
□ Applicable √ Not applicable
Other descriptions:
□ Applicable √ Not applicable
√ Applicable □ Not applicable
                                                                         Earnings per share
  Profits during the Reporting      Weighted average
             Period                    ROE (%)               Basic earnings per     Diluted earnings per
                                                                   share                    share
Net profit attributable to
ordinary shareholders of the                     14.56                     1.4306                  1.4306
Company
Net profit attributable to
ordinary shareholders of the
Company after deducting
non-recurring gains and losses
     Enterprise (“PRC GAAP”) and Overseas Accounting Standards
□ Applicable √ Not applicable
□ Applicable √ Not applicable
                                      Annual Report 2025
                                                                     Chairman: Chen Huwen
            Date of report and submission approved by the Board of Directors: March 30, 2026
Revision information
□ Applicable √ Not applicable