Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Suzhou Dongshan Precision Manufacturing Co., Ltd.
Semi-Annual Report 2026
August 22, 2026
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Section I Important Note, Table of Contents and Definitions
The Board of Directors, directors, and senior executives of the Company
hereby warrant that the information contained in this Semi-Annual Report is
true, accurate and complete without any misrepresentation, misleading
statement or material omission, and agree to assume joint and several
liabilities for this Semi-Annual Report.
YUAN Yonggang, Chairman of the Company, CFO WANG Xu and
Accounting Supervisor ZHU Deguang hereby represent that the financial
report contained in this Semi-Annual Report is true, accurate and complete.
All directors of the Company attended the meeting of the Board of
Directors reviewing this Semi-Annual Report.
Forward-looking statements such as those on future development plans in
this Report do not constitute substantial commitments by the Company to the
investors. Investors and relevant persons shall be sufficiently mindful of risks,
and understand the differences between plans, predictions and commitments.
In this Report, the Company has elaborated relevant potential risk factors
and countermeasures, as can be referred to in “X. Risk Exposures to the
Company and Countermeasures” under “Section III Management’s Discussion
and Analysis”, to which the investors should pay attention.
The Company has no plan to pay cash dividends, distribute bonus shares
or convert any capital reserve to the share capital.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Note:
This document is a translated version of the Chinese Semi-Annual Report 2026 (“2026 年半年度报告”).
In case of any discrepancies, the Semi-Annual Report 2026 published in the Chinese version shall
prevail. The full Chinese Semi-Annual Report 2026 is available at www.cninfo.com.cn.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Table of Contents
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
List of References
I. Financial statements signed and chopped by Mr. YUAN Yonggang, legal representative, Mr. WANG Xu,
CFO, and Mr. ZHU Deguang, Accounting Supervisor of the Company;
II. Originals of all documents of the Company publicly disclosed during the reporting period and related
announcements;
III. Original of the Semi-Annual Report 2026 stamped with the seal and signed by the legal representative of the
Company; and
IV. Place for keeping such documents for inspection: Securities Department of the Company at Building 12#,
Yunhe Town Headquarters Industrial Park, No. 99 East Taihu Road, Wuzhong District, Suzhou.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Definitions
Term Means Definition
Company, we or
means Suzhou Dongshan Precision Manufacturing Co., Ltd.
DSBJ
one of our major business segments, including research and development (R&D),
Electronic circuit means
manufacturing and sale of FPCs, rigid PCBs, and rigid-flexible PCBs.
Optical transceiver one of our major business segments, including R&D, manufacturing and sale of optical
means
business transceivers (including optical chips).
Photoelectric one of our major business segments, including R&D, manufacturing and sale of touch panels
means
display module and LCMs.
Precision one of our major business segments, including R&D, manufacturing and sale of precision
means
components metal structural parts and functional components.
Hong Kong HongKong Dongshan Precision Union Opoelectronic Co. Limited, a wholly owned
means
Dongshan subsidiary of the Company.
Hong Kong
means Hong Kong Dongshan Holding Limited, a wholly owned subsidiary of the Company.
Dongshan Holding
Dragon Holdings means Dragon Electronix Holdings Inc., a wholly owned subsidiary of Hong Kong Dongshan.
MFLEX means Multi-Fineline Electronix, Inc., a wholly owned subsidiary of Dragon Holdings.
Multek Group (Hong Kong) Limited, a wholly owned subsidiary of Hong Kong Dongshan
Multek Group means
Holding.
Source Photonics means Source Photonics Holdings (Cayman) Limited, a subsidiary of the Company.
GMD Group means Groupe Mécanique Découpage, a wholly owned subsidiary of the Company.
Source Chengdu means Source Photonics (Chengdu) Co., Ltd., a wholly owned subsidiary of Source Photonics.
Jiangsu Source Communication Technology Co., Ltd., a wholly owned subsidiary of Source
Source Jiangsu means
Photonics.
MFLEX Suzhou means MFLEX Suzhou Co., Ltd., a wholly owned subsidiary of MFLEX.
MFLEX Yancheng means MFLEX Yancheng Co., Ltd., a wholly owned subsidiary of MFLEX.
Multek China means Multek China Limited, a wholly owned subsidiary of Multek Group.
Suzhou Dongyue New Energy Technology Co., Ltd., a wholly owned subsidiary of the
Suzhou Dongyue means
Company.
Aranda Tooling, Inc., AutoTech Production Services, Inc., and Autotech Production de
Aranda means
Mexico S. de R.L. de C.V., wholly owned subsidiaries of the Company.
Printed Circuit Board, which forms conductive circuits with conductive materials on an
insulated substrate according to a pre-designed circuit principle through etching, lamination,
PCB means
drilling, and other processes. It is a core fundamental electronic component providing
mechanical support and electrical interconnection for electronic components.
Flexible Printed Circuit, a PCB that is made with a flexible insulated film as the substrate,
FPC means
having the features of flexible, light, thin, and high-density wiring.
AI Data Center, an artificial intelligence data center/intelligent computing center, which is a
new generation of computing power infrastructure customized for AI large model training,
AI DC means
inference, and high-concurrency computing. As an “AI-upgraded mode” of conventional
IDCs, it is also referred to as an intelligent computing center in the industry.
AI Printed Circuit Board, a high-performance PCB designed for AI computing
(GPU/TPU/ASIC, AI servers, super computing). Unlike common consumer electronics
AI PCB means
PCBs, it focuses on high speed, high density, high reliability, large current, low loss, and
strong heat dissipation.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
High-Density Interconnect PCB, a precision PCB with a higher wiring density and requiring
a smaller installation space achieved through laser micro vias, blind vias and buried vias, fine
lines, and thin substrates, and other processes. Thanks to the core features of finer wire
HDI PCB means
widths and spacing, smaller holes, and higher layer utilization, it is mainly used in scenarios
with dense chip pins and limited product space as a mainstream solution for smartphones, AI
modules, optical transceivers, and high-end server front-end panels.
High Layer Count PCB, a thick core structure generally with ≥16 layers, developing toward
copper foil layers, it has multiple power supply layers, multiple grounding layers, and
multiple sets of high-speed differential lines to mainly meet the requirements for high-current
HLC PCB means
power supply, strong anti-interference, high-speed signal transmission, and complex system
integration in AI servers, switch backplanes, GPU accelerator cards, and large-scale
communication equipment, focusing on thick copper, high stability, and high power handling
capacity.
a core chip transmitting, modulating, and detecting optical signals in an optical transceiver. It
Optical chip means
determines key indicators like the rate, distance, power consumption, etc. of the module.
a core device for conversion between optical signals and electrical signals. It consists of
Optical transceiver means optical transmitting and receiving, control, and structural parts, and is mainly intended for
interconnection scenarios like data centers, computing power networks, communication, etc.
a highly integrated photoelectric core component. Generally integrating functions of optical
Optical engine means chips, optical coupling, drivers, etc., it is a core integration mode of high-speed optical
transceivers.
a collective term for upstream parts of optical transceivers, including optical chips, electric
Optical device means
chips, passive devices, and structural parts.
Electro-Absorption Modulated Laser, a high-performance optical chip achieving monolithic
integration of a DFB continuous wave (CW) laser and an electro-absorption modulator
EML means (EAM). The DFB provides constant continuous light, the modulator modulates high-speed
signals by controlling optical absorption through voltage, and the laser operating point
remains unchanged.
Continuous-Wave Laser, a laser outputting continuous, stable, uninterrupted optical signals
unlike pulsed lasers. In the field of optical communication, the CW laser itself does not carry
CW Laser means data signals, but provides a continuous light source at a constant power. It has to work with
an external modulator (such as an EAM, lithium niobate modulator, etc.) for optical
strength/phase modulation to achieve high-speed data transfer.
Distributed Feedback Laser, a laser with a built-in optical grating structure to achieve output
DFB means at a single stable wavelength. As a direct modulated laser (DML), it switches and modulates
optical signals by varying the injected current.
Vertical-Cavity Surface-Emitting Laser, a laser emitting laser light perpendicular to the chip
VCSEL means surface. It can be integrated in an array for direct modulation. Thanks to its short cavity and
great process compatibility, it can achieve concurrent transmission through multiple channels.
Digital Signal Processor, for equalization, error correction, clock recovery, and signal shaping
DSP means of high-speed electrical signals. It is a necessary core electric chip for high-speed optical
transceivers at 400G and above.
Co-packaged Optics, an ultra-high integration solution packaging a high-speed optical
engine, switch ASIC/GPU, and other main chips on one substrate or middle layer. It reduces
CPO means the electric interconnection distance to millimeters and even sub-millimeters, which
minimizes transmission loss of high-speed electrical signals on the PCB to achieve the
extreme bandwidth density and energy efficiency ratio.
Near-Packaged Optics, a board-level integration solution for placing optical engines in
proximity to switch chips/GPU chips on the same PCB. Instead of being connected to switch
NPO means chips through the long wire routing on the backplane, the optical engines are placed at a
distance of millimeters to greatly shorten the electrical signal paths while keeping the optical
engines and main chip physically independent for separate maintenance.
Linear Pluggable Optics, a technical solution based on the conventional pluggable optical
transceiver architecture, where the DSP chip inside the module is removed or greatly
LPO means
simplified and a switch ASIC chip is used to directly output linear electrical signals to drive
the optical transceiver. Retaining the standard pluggable shape (e.g., QSFP, OSFP) without
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
changing the existing hardware architecture, it is a light-weight and low-cost transitional
solution for high-speed, low-latency, low-power consumption requirements.
separate architecture consisting of “continuous wave laser + silicon photonic integrated
circuit”. By decoupling the light-emitting and modulation functions to achieve high-
CW silicon integration, low-power consumption, low-cost, and high-speed optical transmission, it is a
means
photonics solution core technical solution supporting 400G/800G/1.6T optical transceivers, CPO/NPO, and
other advanced architectures, mainly covering short-distance interconnection scenarios of AI
data centers.
TP for short, a transparent sensing device installed at the front end of a display panel to sense
external touch positions and output coordinate signals by employing capacitance, resistance,
Touch panel means optics, and other principles. As a core component to achieve human-machine interaction, it is
widely used in consumer electronics, vehicle-mounted display, industrial control equipment,
etc.
Liquid Crystal Module, a complete display module integrating a liquid crystal glass panel,
backlight module, driver chip, circuit board, structural parts, etc. to directly receive electrical
LCM means
signals and display images. It is a core functional unit to achieve visual output on various
electronic terminal products.
CSRC means China Securities Regulatory Commission.
SZSE means Shenzhen Stock Exchange
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Section II Company Profile and Financial Highlights
I. Company Profile
Stock short name DSBJ Stock code 002384
Original stock short name (if
None
any)
Stock exchange Shenzhen Stock Exchange
Chinese name 苏州东山精密制造股份有限公司
Chinese short name (if any) 东山精密
English name (if any) Suzhou Dongshan Precision Manufacturing Co., Ltd.
English short name (if any) DSBJ
Legal representative YUAN Yonggang
II. Contact Person and Contact Information
Board Secretary Securities Affairs Representative
Name MAO Xiaoyan ZHOU Hao
Building 12#, Yunhe Town Headquarters Building 12#, Yunhe Town Headquarters
Address Industrial Park, No. 99 East Taihu Road, Industrial Park, No. 99 East Taihu Road,
Wuzhong District, Suzhou Wuzhong District, Suzhou
Telephone 0512-80190019 0512-80190019
Facsimile 0512-80190029 0512-80190029
Email maoxy@dsbj.com hao.zhou@dsbj.com
III. Other Information
Whether there is any change in the Company’s registered address, office address and corresponding postal code, website, and
email address, etc. during the reporting period?
□ Applicable N/A
There has been no change in our registered address, office address and corresponding postal code, website and email address, etc.
during the reporting period, as detailed in the Annual Report 2025.
Whether there is any change in the media for information disclosure and place for keeping the report during the reporting period?
□ Applicable N/A
The website of the stock exchange and the media and its website disclosing our semi-annual report, as well as the place for
keeping our semi-annual report remain unchanged during the reporting period, as detailed in the Annual Report 2025.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Whether there is any change in other related information during the reporting period?
□ Applicable N/A
IV. Key Accounting Data and Financial Indicators
Did the Company need to retrospectively adjust or restate any accounting data of prior years?
□ Yes No
The same period of the Y/Y %
The reporting period
previous year change
Operating revenue (RMB) 27,797,683,972.88 16,955,163,898.89 63.95%
Net profit attributable to owners of the parent company
(RMB)
Net profit attributable to owners of the parent company
after deduction of non-recurring gain or loss (RMB)
Net cash flows from operating activities (RMB) 2,383,887,276.10 2,500,118,021.28 -4.65%
Basic earnings per share (RMB/share) 1.62 0.45 260.00%
Diluted earnings per share (RMB/share) 1.62 0.45 260.00%
Weighted average return on net assets 12.88% 3.95% 8.93%
The end of the reporting The end of the previous
% Change
period year
Total assets (RMB) 69,167,411,001.34 60,250,537,094.98 14.80%
Net assets attributable to owners of the parent company
(RMB)
V. Differences in Accounting Data under the Chinese Accounting Standards for Business
Enterprises (the “CASBEs”) and Overseas Accounting Standards
International Financial Reporting Standards (IFRS) and the CASBEs
□ Applicable N/A
There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under the
IFRS and the CASBEs.
accounting standards and the CASBEs
□ Applicable N/A
There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under
overseas accounting standards and the CASBEs.
VI. Items and Amounts of Non-recurring Gains or Losses
Applicable □ N/A
In RMB
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Item Amount Remark
Gain or loss on disposal of non-current assets (including allowance for impairment of
-6,925,770.36
assets that has been written off)
Government grants recognized in profit or loss (excluding the government grants that
are closely related to the business of the Company, conform to the applicable policies
of the country, are provided in accordance with the established standards, and have
long-term effects on the Company’s profit or loss)
Gain or loss on changes in fair value of financial assets and financial liabilities held
by non-financial entities, and gain or loss on disposal of financial assets and financial 506,057,632.55
liabilities, except for effective hedges held in the ordinary course of business
Other non-operating revenues and expenses -15,598,890.08
Income from
Other gain or loss within the meaning of non-recurring gain or loss 23,143,740.00 debt
restructuring
Less: Effect on income tax 144,213,305.14
Effect on minority interests (after tax) 337,810.58
Total 477,317,288.78
Other items of gain or loss within the meaning of non-recurring gain or loss:
□ Applicable N/A
We do not have any other item of gain or loss within the meaning of non-recurring gains or losses.
Classification of any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information
Disclosure by Companies Publicly Offering Securities – Non-recurring Gain or Loss as recurring gain or loss:
□ Applicable N/A
We have not classified any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information
Disclosure by Companies Publicly Offering Securities – Non-recurring Gain or Loss as recurring gain or loss.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Section III Management’s Discussion and Analysis
I. Situations of Our Primary Business during the Reporting Period
(I) During the reporting period, our primary business has not undergone any material change.
We are an innovation-driven company focusing on the field of intelligent manufacturing with a global perspective and layout.
Under the mission of “building a better connected world for tomorrow” and the vision of becoming a globally leading solution
provider for intelligent interconnection, we are dedicated to providing advanced products and solutions to global leading
technology companies for interconnection among human beings, equipment, and infrastructure. Our main business covers the
global design, production, and sale of electronic circuits, optical transceivers (including optical chips), precision components, and
photoelectric display modules; our products are widely applied in the fields of consumer electronics, vehicles, data centers,
communication equipment, industrial control equipment, etc. By providing all-round and one-stop comprehensive services and
constantly enhancing customer loyalty for cooperation, we have established long-term stable strategic cooperation relationships
with global leading enterprises.
Our main products and their applications:
Main
Product Type Product features
application
The flexible PCB, as a printed circuit board, uses flexible materials like polyimide or
polyester films as the substrate, and implements electric interconnection through a
copper foil layer. Thanks to its unique adaptability, it can be bent, folded, and
twisted repeatedly without affecting the stability of its electric performance. This
flexible characteristic allows flexible PCBs to be seamlessly installed in narrow or
irregular spaces, which not only reduces the weight but also achieves greater
freedom of design. With these characteristics, flexible PCBs have become an ideal
solution for compact devices and application scenarios requiring portability and
durability.
Our flexible PCB product series cover single-layer flexible PCBs, multi-layer
flexible PCBs, and FPCA, which can directly integrate resistors, capacitors,
inductors, and various functional chips onto the circuit. These products are specially
designed to meet the performance requirements of terminal products in various
Smartphones,
industries. We can reduce the thickness of flexible PCBs to 0.05 mm at the
electric vehicle
Flexible PCB minimum; the optimization for ultra-thin and lightweight products helps to provide
BMS systems,
compact solutions balancing space efficiency and performance. To ensure durability
etc.
and reliability, we use advanced materials to achieve high-temperature resistance and
Electronic keep signal integrity under harsh environments.
circuit
Flexible PCBs are widely used in the fields of edge AI devices, consumer
electronics, and vehicle electronics. In edge AI devices, our flexible PCBs are
playing a more and more important role in creating lighter and more advanced
products, supporting high-performance functions within a smaller size. Our flexible
PCBs are used in the AI smartphones, wearable devices, and other smart devices of
multiple globally leading brands. In the vehicle field, our flexible PCBs allow
complex wiring within a restricted space to support key vehicle systems, like the
battery management systems, vehicle-mounted information and entertainment
systems, etc. Keeping pace with the constant development of various industries, our
flexible PCBs are always at the technology forefront to facilitate the development of
next generation AI devices that are smarter, more compact, and more effective.
Rigid PCBs are printed circuit boards made with rigid substrates that cannot be bent AI servers, 5G
or twisted. Our rigid PCB products cover single-layer PCBs, multi-layer PCBs, and base stations,
HDI PCBs, which can meet the demands of customers from various industries, intelligent
Rigid PCB including AI computing, consumer electronics, etc. vehicles,
AR&VR
Single-layer and double-layer PCBs are designed with a simple structure, in which a devices,
rigid substrate is used to separate single-layer or double-layer copper foil wiring. wearable
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Main
Product Type Product features
application
Thanks to its cost effectiveness, this solution is widely used in electronic systems devices,
with intermediate complexity. Multi-layer PCBs, containing multiple layers of robots, etc.
conductive copper separated by insulating materials, help to achieve a higher density
of elements and greater electric performance. HDI PCB products help to achieve a
higher wiring density and smaller elements by using advanced through-hole
structures (e.g., blind vias and buried vias), hence further improving integration.
In particular, in applications with restricted spaces, HLC PCBs and HDI PCBs can
be used to achieve a compact layout, better signal performance, and greater
reliability. Therefore, these products are especially suitable for AI computing power
infrastructure where high-frequency and high-speed data transfer play an important
role. Our ELIC technology, as a leading technology in the HDI PCB field, can
connect any layers to achieve ultra-high-density wiring in extremely compact
designs. Our multi-layer PCBs and HDI PCBs use M8/9 materials with ultra-low
loss to achieve the transmission rate of up to 224Gbps, which can meet the high
requirements of GPU, AI accelerator cards, AI servers, and data center switches.
Relying on our in-depth technology expertise in HLC PCBs and HDI PCBs, we can
ensure high-speed low-loss interconnection with our products under harsh
environments. To meet the heat dissipation requirements of high-power applications,
the embedded copper block, buried copper column, laser copper filling, and other
technologies are employed to effectively improve the heat dissipation efficiency and
reliability of PCBs with enhanced heat dissipation.
AI servers,
Rigid-flexible PCBs, consisting of multiple rigid wiring layers and flexible wiring
data center
boards, achieve connection using electroplating through holes to properly match with
switches,
the structural design of compact and complex electronic products. They combine the
intelligent
durability of rigid PCBs with the adaptability of flexible PCBs to balance mechanical
vehicles,
strength and design flexibility. The flexible portion allows movement or folding,
smartphones
while the rigid portion provides structural support and space for installed
and tablet
Rigid-flexible PCB components.
computers,
This unique combination reduces the demands for connectors and wires, simplifies
AR&VR
assembly efforts, and improves reliability by eliminating potential faulty points. Our
devices, CT
rigid-flexible PCB products are made with high-performance materials to ensure the
scanners,
thermal stability and reliability under harsh environments. Therefore, our products
industrial
are especially suitable for industries, like medical devices and vehicle systems,
devices,
which require devices having high performance within a small space.
robots, etc.
On the basis of the subsidiary Source Photonics, we are developing an optical chip
product system with high-speed EML chips at the core, with the rate covering the
whole matrix from 2.5G to 200G; with whole-process independent development for
IDM and large-scale mass production, our products have advantages of high
bandwidth, low power consumption, low transmission loss, high extinction ratio,
outstanding yield rate in mass production, large temperature range, and high
Optical
Optical chip reliability. Our main product is 100G/200G PAM4 EML high-end chips; given the
transceiver
key performance indicators and mass production capacities reaching the international
top level, these products are fully suitable for optical transceiver applications at
technologies like 400G EML and high-power CW light sources to meet the strict
application requirements in high-end scenarios of AI data centers and ultra-
computing power high-speed interconnection.
Optical
transceiver Driven by the rapid development of AI computing and applications, our data center
optical transceivers are specially designed to meet the requirements of AI
infrastructure. We focus on 400G optical transceivers with QSFP-DD, QSFP112,
and OSFP packages, and OSFP and QSFP-DD800G optical transceivers with the
DSP, LPO, and LRO architecture. Our 1.6T optical transceivers, with multiple
technology options including EML and InP PIC, achieve ultra-high-speed and low-
Optical transceivers latency connections through OSFP and other compact packages. Our independently Data centers,
for data centers developed 100G PAM4 EML chips have been used in 400G and 800G optical etc.
transceivers by over ten million; the 200G PAM4 EML chips have reached mass
production to support 1.6T optical transceivers.
Meanwhile, our 400G PAM4 EML chips under development will empower 3.2T
optical transceivers. In addition, we are promoting the co-packaged optics
technology, which directly integrates optical engines and switch chips in one
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Main
Product Type Product features
application
package to greatly shorten the signal path and reduce latency, making it an ideal
option for AI training and inference.
Our data center products are made with low-loss optical materials, stable signal
integrity design, and adaptive power management technologies to achieve stable
transmission and higher energy efficiency. These innovations not only reduce the
power consumption but also enhance cost advantages and durability, empowering
our solutions to meet the high requirements of AI data centers on the rate and
bandwidth.
Our telecommunication products mainly include products for optical transmission,
wireless transmission, and broadband transmission.
Our optical transmission products, being designed to meet the increasing
requirements of high-speed data transfer for metropolitan area networks, access
networks, and long-distance networks, have the characteristics of high reliability and
long-distance transmission. These products support multiple size specifications and
data rates, including SFP, SFP+, SFP28, and QSFP-DD, and have the transmission
capabilities covering 1G to 800Gb/s.
Enterprise
Our wireless transmission modules operate on the physical layer of wireless
dedicated line
networks to achieve accurate electrical - optical signal conversion and optical -
Telecommunication businesses,
electrical signal conversion, supporting high-speed data interaction among BBU,
optical transceivers core networks,
AAU, and DU to achieve stable and reliable connection for fronthaul, midhaul, and
base stations,
backhaul transmission. These modules are fully compatible with 5G and 5.5G
etc.
network deployment.
Our broadband products are based on the PON architecture, which is a point-to-
multipoint fiber-optical system connecting OLT to ONU/ONT through a passive
optical splitter with no power supply equipment on site. The products, covering 10G
PON and 25G/50G PON and meeting the F5G and F5G-A standards, are widely
deployed in FTTH, enterprise broadband, and campus networks to provide high-
speed data services for end users. The solutions equipped with our independently
developed 50G laser chips have been deployed in commercial 50G-PON projects to
empower high-speed broadband and AI data centers.
We provide various automotive structural parts and functional module products to
meet the functional requirements of vehicles under continuous upgrade. Our core
products cover battery housings, water-cooling boards, EV motor housings, etc.,
which play a key role in improving the vehicle dynamic performance, operation
safety, and energy utilization efficiency.
Battery housing
Battery housings are integral structural parts made of light-weight high-strength
aluminum alloy to contain battery modules and internal core elements, providing
comprehensive protection for the battery system against external shocks. The
housings are equipped with an integral thermal management channel, which can
greatly improve the heat dissipation efficiency; meanwhile, the lower battery housing
is integrated with the vehicle chassis to lower the center of gravity of the entire
vehicle, thus improving driving stability. We employ 8,200-ton integral stamping
Precision Automotive and forming, high-precision laser welding, and other advanced technologies with a Intelligent
components components supporting automatic CCD visual detection system to ensure the size accuracy and vehicles
consistent quality of products. Thanks to such manufacturing technologies, our
products have outstanding safety and reliability to meet the requirements of the
power system for new energy vehicles.
Water-cooling board
The water-cooling board is a liquid heat exchanger that rapidly takes away the heat
generated from the operation of high-power electronic components; it can achieve a
cooling system with a compact structure, low noise during operation, and high use
reliability. Our ECU water-cooling boards can provide accurate temperature control
for the vehicle-mounted controllers of the powertrain, vehicle safety, and vehicle-
mounted information and entertainment system of new energy vehicles. The
products, being manufactured through precision stamping and forming, full-
automatic laser welding, copper-aluminum reflow welding, and other processes, can
be closely integrated with PCB components to ensure the optimal operating
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Main
Product Type Product features
application
temperature for core elements under complex conditions and achieve stable
performance output. Meanwhile, we have the mass manufacturing capabilities for
traction drive motor cooling boards, power battery pack cooling boards, and SiC
inverter water-cooling boards.
EV motor housing
EV motor housings are external structural protection housings for traction motors
and controllers, which can effectively protect against external shocks and reduce the
loss caused by operation vibration. Reaching the protection level of IP54 and above,
these products can meet the reliability requirements for long-time operation. The
housings are made through high-pressure vacuum casting and forming, for which the
high-precision size tolerance of key holes is guaranteed with the cylinder liner
casting-in technology; meanwhile, the full-automatic friction welding process is
employed to create a high-strength and sealed connection structure to achieve
outstanding anti-vibration capabilities and thermal cycling resistance.
In addition, the technology expertise of GMD Group, a subsidiary of the Company,
in the body in white, chassis structure, thermal management system, and interior and
exterior trim parts further enriches our product matrix and improves our
comprehensive capabilities for providing one-stop integrated solutions for global
vehicle manufacturers. Relying on the manufacturing experience and technology
accumulation built for a long period of time in the field of vehicle precision
structural components, we can meet the strict quality management and control
requirements of mainstream vehicle manufacturers and are qualified suppliers for
multiple global top manufacturers of conventional and new energy vehicles.
We can provide products of customized high-performance communication parts to
meet the requirements in the construction and upgrade of global communication
networks. Our core products cover antennas for mobile communication and wave
filters for mobile communication, which can optimize the deployment adaptability
inside and outside base stations and improve the stability in signal transmission.
Antennas for mobile communication
Antennas for mobile communication, as core radio frequency components of base
stations, mainly implement signal reception and transmission between a base station
and a mobile terminal to meet the requirements for the construction of a new
generation of communication networks. Being made with technologies like low
passive inter-modulation, high-power handling, and wide-frequency coverage, and
designed with high-gain, low-transmission loss, and low-wind resistance structure,
these products can achieve performance indicators like phase shifter insertion loss of
< 0.7dB, antenna gain ≥ 17.5dBi, and passive inter-modulation better than -153dBc,
so as to effectively improve the operation efficiency of mobile communication
Components for Base stations
networks and ensure the high-quality signal reception and transmission.
telecommunication for mobile
equipment communication
Wave filters for mobile communication
Wave filters for mobile communication, as core frequency-selecting components of
base stations, can screen radio frequency signals of the specified frequency band and
filter out noise wave interference to ensure the purity of communication links and
operation stability of devices. These products, being made with low passive inter-
modulation design and high-power metal-ceramic structure, can achieve the passive
inter-modulation indicator better than -155dBc to achieve stable operation
performance under various working conditions. Meanwhile, the volume of individual
products is reduced by 50%, which effectively improves the space utilization rate for
the internal layout of base stations and convenience in device integration.
Our communication parts are developed and designed with high reliability, wide
adaptability, and high performance in mind to meet the requirements of the technical
standards and applications for mainstream mobile communication networks around
the world. The table below outlines our main products of telecommunication
equipment and components.
Touch panels are widely used in consumer electronics (tablet computers, laptop Laptop
computers, all-in-one computers), industrial control, medical, and vehicle (central computers,
Photoelectric
control display, copilot display, and entertainment display for back rows) industrial
display Touch panel
applications; they can achieve the touch precision of ±1.0 mm and response time less control
module
than 30.0 ms. Thanks to the rapid response and adaptability for various complex equipment,
environments, they can be used in multiple industries. medical
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Main
Product Type Product features
application
devices, etc.
Display modules (LCD&OLED) can be used to build “integrated solutions”, which
allows in-depth combination of cutting-edge display technologies with high-
reliability structural design and achieves breakthroughs in both performance and
stability.
Display modules are widely used in consumer electronics (mobile phones, laptop
computers, all-in-one computers), industrial control, medical, and vehicle (dash
boards, central control display, copilot display, entertainment display for back rows, Consumer
LCD and OLED electronic rear-view mirrors, and HUD). They can achieve the brightness of up to electronics,
modules 1,000.0 nit to ensure clear visibility even under strong light, and can achieve the intelligent
wide gamut of over 96.0% NTSC for consumer modules. vehicles, etc.
The display modules are integrated with devices seamlessly through the full-
lamination process to enhance durability and improve the optical clarity.
Thanks to our automatic manufacturing procedures and strong supply chain, we can
provide customized display modules with guaranteed high throughput, consistent
quality, and reliable delivery to effectively meet the requirements of global
customers from various industries.
(II) During the reporting period, our main business model has not undergone any material change.
We manufacture main products based on market demands, and adopt the production mode that determines production
according to sales, under which we develop production plans and deliver products by taking into account the purchase orders
placed by customers, the product quantities demanded by the customers, as well as our production capacity and supply of raw
materials.
Our main businesses, covering electronic circuits, optical transceivers (including optical chips), precision components,
photoelectric display modules, etc., require a wide variety of raw materials. Based on the purchase scale, our main raw materials
include integrated circuit chips, electronic components, connectors, display devices, copper clad laminates, cast parts, wafers,
aluminum parts, etc. We make purchase from corresponding suppliers with reference to orders and production plans based on our
information about the lead time and quality of suppliers. Given that our products are mostly customized, suppliers should be
qualified by us or our customers, and we have to obtain the consent and certification from customers for new alternative suppliers.
Generally, we request order-based prompt supply from suppliers instead of keeping a large number of surplus raw materials and
parts; under certain circumstances, we may also require suppliers to establish a local warehouse to shorten the lead time of raw
materials and reduce our inventory. We purchase a wide variety of raw materials in large quantities. Our Group Purchase
Management Center is responsible for coordinating purchase activities, in which we promote green purchase and give full play to
the advantages of large-volume purchase and synergy effects of raw materials. We have established long-lasting, stable, and
mutually beneficial strategic cooperation relationships with core suppliers to ensure a stable supply chain and reduce purchase
costs.
We manufacture products based on market demands, and adopt the production mode that determines production according to
sales, under which we develop production plans and promptly deliver products to customers after passing inspection by taking into
account the purchase orders placed by customers, the product quantities demanded by the customers under such purchase orders,
as well as our production capacity and supply of raw materials. We implement the ideas of green development and low-carbon
operation, and we always give priority to development coordinating a new generation of information technologies with
manufacturing technologies, taking intelligent manufacturing as the main direction for the integration of informatization and
industrialization and taking active measures to promote the construction of intelligent factories and digital workshops. On one
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
hand, we make great efforts for automatic production and construction to improve production efficiency; on the other hand, we
implement information-based production operation and management to achieve real-time management and control over the whole
production operation process, which increases the product yield rates, improves capacity utilization rate, ensures prompt delivery
of orders, and guarantees the quality of products and services in compliance with normative standards and customer requirements.
We sell directly to corporate customers. After we pass customers’ system certification and are admitted to their supplier
system, customers will directly place orders to us. We implement the strategy of group-based coordinated sales and build dedicated
key-account service teams for various business segments to promptly respond to requests from customers. Focusing on basic core
devices in the field of intelligent interconnection, we have built a rich product matrix after years of development. Thanks to the
suitability of our products for a variety of industries and the strong synergy effects we achieved for R&D, technology, supply chain,
product, market, etc. in different business segments, the multi-product synergy advantages allow us to provide customers with all-
round, one-stop comprehensive product solutions with leading technologies to meet customization requests of customers to the
largest extent.
We have built an efficient R&D system focusing on independent R&D of core technologies and oriented to meeting the
innovation needs of customers, and we keep close pace with the strategic layout of industry leading customers and actively
participate in new product development by customers to support customers in product iteration and function innovation.
Meanwhile, we strive to build platform-based R&D institutions and platform-based core technologies, pay close attention to the
development dynamics of new technologies and new processes in the industry, and conduct continuous and effective R&D
investment and study of cutting-edge technologies to maintain the leading position of the Company in technologies and processes
and actively promote the implementation, update, and iteration of downstream terminal products of the industry. With importance
attached to the education of technical talents, we provide the talent support for the development of new technologies and new
products by measures of “talent education, talent attraction, and talent retention”, and take active measures to coordinate R&D
resources and encourage cross-department joint development.
In addition to the transformation and upgrade of our own technologies in our R&D activities, we also pay attention to in-
depth cooperation with customers and the study of future industry trends. By properly combining flexibility, coordination, and
innovation, we have built a R&D ecology system featuring sustainable development and high adaptability to meet the constantly
changing customer needs and market environments, and promote coordinated innovation throughout the industry chain.
(III) Applications of our products, as shown in the figure below:
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
HUDs Leather parts White body parts
Dash boards and central control displays Seat–Framework assemblies
(irregular-shaped displays/multi-
connected displays/curved displays)
Passenger and rear seat entertainment
displays
Streaming electronic rearview mirrors
Armrest displays
Automotive electronics (EMS OEM:
On-board computer–heat dissipation battery management/electric
modules (water-cooling boards) control/domain control/radars)
Electric drive and electronic control–
casings (all-in-one) Central control system/GPS–rigid
Domain control–casings PCBs and rigid-flexible PCBs
Information & entertainment
systems/Internet of Vehicles–rigid
PCBs and rigid-flexible PCBs
Camera modules–brackets and assemblies
Camera modules–rigid PCBs and rigid-
flexible PCBs
Cell–casings
Battery pack–Trays/assemblies
Laser radars/millimeter wave radars– Battery pack–flexible PCBs/CCS
casings
Laser radars/millimeter wave radars–rigid
PCBs and rigid-flexible PCBs
Advanced driving assistance/central
computing unit - rigid PCBs
Injection molding parts Damper tower
Fingerprint flexible PCBs
Flexible PCBs for front cameras
LCD/OLED displays
Flexible PCBs for upper antennas
Flexible PCBs for displays
Main board PCBs
Flexible PCBs for lower antennas
Flexible PCBs for side buttons
Flexible PCBs for USBs
Flexible PCBs for rear cameras
Flexible PCBs for batteries
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Computing nodes
Cabinet sheet metal parts
Rails
Tray panels
Power distribution Handles/latches
boards
Universal substrates
Air dust brackets
Shielding covers
Main boards
Heat dissipation modules
(liquid cooling)
EMI masking metal parts
Front panel metal parts
Optical M.2 carrier boards Optical fiber jumpers
transceivers
Cable clamps
Cable management metal
Switch nodes parts
M.2 carrier boards
Optical transceivers
Switch main boards
Dual in-line memory
modules PSU control boards/metal
casings
Substrates
Substrate management
Optical transceivers controller
(IV) Situations of our industry
We are primarily engaged in the R&D, manufacturing, and sale of electronic circuits, optical transceivers (including optical
chips), precision components, photoelectric display modules, etc.
Printed circuit boards (PCBs), as core basic components of electronic devices, play a critical role in accurate electric
interconnection, low-loss signal transfer, and mechanical support, and its performance directly determines the operating efficiency
and stability of electronic devices. In terms of the fields of application, PCBs are widely used in core scenarios like consumer
electronics, vehicles, data centers, communication, etc., making PCBs an indispensable basic link for the electronic information
industry.
Thanks to the explosive demands of AI and high-speed network infrastructure, the global PCB market experienced rapid
growth. In the long run, driven by multiple factors, including AI infrastructure construction, restructuring of the global supply
chain, terminal intelligentization, etc., the growth dynamics of the industry will be released for a long period of time. Prismark
predicted that the global PCB market size would reach USD 95.8 billion by 2026; the annual compound growth rate of the industry
value would be about 7% from 2026 to 2029, and may exceed USD 116.0 billion by 2029. From 2025 to 2030, the fastest-growing
fields will still be HLC PCBs (over 18 layers), HDI PCBs, etc. The figures above show that AI-driven data communication
infrastructure is becoming the core engine to drive the upgrade and size expansion of the PCB industry.
From the perspective of enterprise development, the structural transformation of the PCB industry is creating relatively
certain development opportunities for us. On one hand, in the field of consumer electronics, the innovation for products like AI
terminals, foldable screens, and other products leads to continuously increasing quantity of FPC in use and value of individual
devices. Relying on the production capacity and technologies of MFLEX, a top 2 manufacturer on the world, we can provide a
stable cash flow and profit support for conventional businesses. On the other hand, in the field of AI computing hardware, the
growth center of the industry is transforming to HLC PCBs and HDI PCBs more and more quickly. Thanks to Multek’s
professional manufacturing capabilities of ultra-HLC PCBs, together with the decisive investment of resources for expansion of
high-end production capacity, we can properly take the historical development opportunities that the value of PCBs for AI servers
is obviously greater than conventional products. The PCB industry is experiencing a fundamental change under the two major
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
trends of high-end consumer electronics and AI infrastructure, which opens a significant window for us to develop from a leading
FPC manufacturer to a supplier of all high-end PCB products.
The optical transceiver technology, employing the mechanism of electrical - optical - electrical signal conversion, has
developed generational advantages in terms of the bandwidth capacity, transfer distance, anti-interference performance, energy
efficiency and density, etc. on the basis of the transfer characteristics of optical fiber, which systematically solves the core
transmission challenge of large-traffic interaction and interconnection of wide area networks, making it a key technology
supporting the upgrade of communication networks and empowering computing infrastructure. The continuously increasing
downstream bandwidth demands lead to the gradual iteration and upgrade of optical chip rates to 100G, 200G, and more, which
directly determines the transfer rate and application scenario positioning of optical transceivers.
On the background of the continuously increasing global investment in computing power, AI has become the core growth
engine for the market of optical transceiver data communication. Lightcounting predicted that the global market size of data
communication optical transceivers would reach USD 22.8 billion by 2026, where the total market size of 800G and 1.6T optical
transceivers would reach USD 14.6 billion in 2026, accounting for about 64% of the total market size of all data communication
optical transceivers. Meanwhile, it’s predicted that the global market size of telecommunication optical transceivers would be USD
growing at an obviously faster rate than the conventional telecommunication market, has become the core driver for the growth of
the optical transceiver industry. Lightcounting predicted that in the next three years, high-speed optical transceivers of 800G, 1.6T,
etc. would dominate the market demands, while the quantity of 3.2T modules would increase gradually from 2028. It is quite
probable that the annual sales volume of optical interconnects used in AI clusters would reach USD 100.0 billion by 2030.
As for the Company, Source Photonics’ core competitive advantages will be more and more prominent under the trend of
rapid industry development. Source, as one of the few global enterprises having an integral layout of EML optical chips + optical
transceivers, employs the IDM mode to maintain independence at core stages; it is one of the few enterprises with mass production
capacities of 100G and 200G EML optical chips in China. Under the industry environment of supply shortage for high-end EML
optical chips and high dependence on others, Source has prominent advantages in production capacity allocation and delivery
response thanks to its capabilities above. Meanwhile, we are making active efforts to develop optical transceivers with two parallel
technology routes, namely the silicon photonics solution and the independently developed EML to respond to the iteration of
optical interconnect technologies with our diversified layout and building a technology basis for the next generation of high-speed
product upgrade. In terms of production capacity expansion, Source is accelerating the pace of building EML optical chip and
optical transceiver production capacities to effectively match with the pace of increasing quantity of downstream customers and
the demand growth trend of the industry. In addition, our comprehensive advantages in key account services, supply chain
management, delivery guarantee, customer qualifications, etc. can also effectively support the further customer development for
Source.
The precision component industry is an industry where precision processing, fast forming, automatic control, and other
relevant technologies are employed to design, manufacture, process, assemble, and sell structural parts, functional modules, and
complete devices with a complex structure and high precision. With the obvious characteristics of technology intensity, high
precision requirements, high-efficiency production, high automation, strong non-standard customization capabilities, etc., this
industry has strict requirements on product consistency, reliability, and lead time. In terms of the industry chain structure, the
upstream industry chain of the precision component industry is the supply of raw materials and manufacturing equipment, mainly
including raw materials like metal materials, and production equipment like cutting and forming equipment, processing equipment,
test and inspection equipment, etc. The midstream of the industry chain is the precision processing and manufacturing stages, that
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
is, the processing of high-precision parts and functional modules and the assembly of complete devices by manufacturers. The
downstream of the industry chain is the application field of precision component products, mainly including vehicles,
telecommunication equipment, etc. Given the constant upgrade of the downstream manufacturing industry and the faster and faster
emerging fields like AI, new energy vehicles, etc., the global application demands for precision component products are increasing,
which creates a broad growth space for the development of the global precision component industry.
We have profound technology expertise and core competitiveness in the field of precision components and have built a
mature and standard process system covering the stages of precision metal processing, module-based integration, precision
assembly, etc., which can meet the strict requirements of vehicle customers for structural parts with high precision, high
consistency, and high reliability. In terms of production capacity and layout, we have built a global supply network, including
production bases located in Mexico, the United States, and Suzhou and Yancheng in China; moreover, we have successfully built
production capacities in Europe and North Africa through the acquisition of GMD Group in France, which further improves our
capabilities of local services in the field of global automotive components. All our customers of the precision component business
are domestic and foreign leading automotive manufacturers; this outstanding customer structure not only provides stable orders for
us, but also consistently promotes the introduction of new products and technology iteration. Generally speaking, we expect that
our precision component business will achieve continuous and stable growth thanks to the growth period of the industry.
Photoelectric display products, as core devices for converting electrical signals into visual images, are core parts for
electronic devices to present visual content and implement information and sensing interaction. Under the background of the
extensive spread of consumer electronics, development of Internet communication technologies, and accelerated penetration of AI
terminals, the demands for information interaction are continuously increasing, where photoelectric display products, as an
important carrier, are widely used in fields like vehicles, consumer electronics, etc. Driven by the technological innovation,
application, and extension and the increasing penetration of smart devices, the global photoelectric display industry has been
developing stably, where the mainstream technology routes mainly include LCD and OLED.
Our photoelectric display products, with touch panels and LCMs at the core, are widely used in the fields of vehicles and
consumer electronics. In the field of vehicles, the continuously increasing penetration of intelligent cockpits leads to the evolution
towards vehicle-mounted displays featuring larger sizes, multiple displays, and high definition, and the vehicle-mounted display
devices are upgrading from conventional information presentation carriers to the core medium for human-vehicle interaction to
achieve human-vehicle interconnection. Relying on our technology accumulation and mass production capacity for touch panels
and display modules, we can provide customers with integral display solutions and have been admitted to the supply chain of
multiple leading vehicle manufacturers. In the field of consumer electronics, given the higher requirements of AI terminal devices
on display interaction, touch panels and LCMs, as the core components for human-machine interface, are experiencing stably
increasing demands. Thanks to our large-scale production capacities and stable delivery capabilities, we can promptly respond to
the demands of downstream brand customers. In general, we expect continuous and stable growth of our photoelectric display
business driven by the upgrade of vehicle-mounted displays and interaction innovation of consumer electronics.
II. Core Competencies of DSBJ
(I) Strategic advantage: AI end-to-end deployment to take early opportunities in a high-growth racetrack
Our strategy focuses on an end-to-end AI deployment from the edge side to data centers. As an innovation-driven enterprise,
we are dedicated to providing global top technology companies with advanced products and solutions by accurately taking the
growth opportunities for global high-speed interconnection and data transfer. Relying on the clear strategic positioning, we have
become the top 3 global PCB supplier, the top 2 global FPC supplier, and the top 10 global optical transceiver supplier,
demonstrating our leading position in multiple fields and industries; meanwhile, we are the only enterprise having the whole-
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
process capabilities covering AI PCBs and optical transceivers (including optical chips) from R&D, designing, and mass
production on the world, fully covering all scenario requirements from edge AI devices to large-scale data centers, which
establishes our long-lasting competitive advantages. By providing AI PCBs and high-speed optical transceiver products for AI DC,
we can help customers achieve data transfer with lower latency, higher transmission rate, and better energy efficiency; meanwhile,
we engage in in-depth design cooperation with customers to shorten product development cycles and improve system performance
of terminal products. In general, relying on the end-to-end whole-process capabilities in AI and our coordinated and integrated
technology system, we can fully take the opportunities of business growth driven by AI for the future, and make use of the
forward-looking layout of advanced processes and production capacities under the background of accelerated AI penetration on the
edge side and data center to progressively improve market shares.
(II) Product advantage: Achieve horizontal synergy among multiple product categories and leading vertical integration,
making optical transceivers and optical chips as the core highlights
By combining external acquisition with endogenous growth, we have built a comprehensive product system featuring full
horizontal coverage and vertical integration, covering core businesses of electronic circuits, optical transceivers (including optical
chips), precision components, photoelectric display modules, etc., which can provide whole-life cycle core device solutions for
customers in the fields of cloud service providers, consumer electronics, intelligent vehicles, etc. to achieve closed-loop value
growth. Based on the opportunities of industry development created by AI technologies, “optical transceivers (including optical
chips) + AI PCB” have become our core product highlights and a critical factor in differential competition. Relying on Source
Photonics, we are capable of whole-process independent development and mass production of EML optical chip IDM, making us
one of the few domestic and even international players achieving mass production of high-end EML optical chips. With a full
product matrix covering the rates of 2.5G to 200G, our main products are 100G/200G EML high-end series, with key product
performance indicators and mass production capacities leading in the industry. In the field of optical transceivers, we have a layout
covering the whole industry chain with products for all rates from 10G to 1.6T; moreover, we make continuous efforts to promote
the R&D of next generation optical transceivers at 3.2T and above to build a new core growth driver for the Company. Meanwhile,
we are making active efforts to develop optical transceivers with two parallel technology routes, namely the silicon photonics
solution and the independently developed EML to respond to the iteration of optical interconnect technologies with our diversified
layout and building a technology basis for the next generation of high-speed product upgrade. In the field of PCBs, we maintain
our leading position in the industry as one of the top players and have professional manufacturing capabilities of ultra-HLC and
high-density thick HDI PCBs. In the field of precision components, we have the capabilities of one-stop supply for core parts of
vehicles, making us the only supplier in the industry that can concurrently supply multiple core parts for top vehicle manufacturers.
(III) Technology advantage: Drive innovation with leading product R&D capabilities in the industry
We always put technological innovation at the core strategic position for corporate development. We deeply participate in
preliminary development conducted by leading industry customers, accurately understand the trend of cutting-edge technologies,
build an efficient coordinated R&D mechanism, and actively engage in industry-university-research cooperation with top
universities, research institutions, and industry organizations to accelerate cutting-edge technology innovation and research results
conversion to inject endless dynamics for high-quality development of the Company. With continuous efforts for R&D, acquisition,
and integration, we have built unique technical advantages in electronic circuits, optical transceivers (including optical chips),
precision components, and photoelectric display modules. In the field of high-end PCBs, we make great efforts in the R&D and
manufacturing of circuit boards for AI servers and constantly iterate and upgrade high-density HDI and ultra-HLC high-speed
board technologies to meet the high-density wiring requirements for the new generation of AI computing hardware, which lays a
solid technology foundation for the Company in the field of high-end computing circuit boards. In the field of optical
communication, operating in the industry for many years, Source Photonics has independently developed multiple key core
technologies and built independent core technologies for EML optical chips under its control; meanwhile, with its independently
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
developed chip package and reliability verification system, it stays at the industry forefront in the R&D and commercial operation
of ultra-high-speed optical transceivers. Relying on Source Photonics, we have built a whole-process technology system covering
the manufacturing of EML optical chips to optical transceivers, which provides a core support for the Company to compete on the
global optical communication market. At present, we are making active efforts for the R&D of optical transceivers at 3.2T and
above, which can fully meet the requirements of AI data centers and other scenarios for ultra-large bandwidth interconnection and
prepare for the next generation core technologies to provide solid technology guarantee for the iteration and upgrade of ultra-high-
speed optical transceivers and help the Company maintain its leading position on the high-end racetrack of optical communication.
Meanwhile, relying on our technology accumulation in electronic circuits, precision components, and photoelectric display
modules, we will consistently consolidate our leading position in the industry to facilitate the high-quality development of the
Company in all of our business segments.
(IV) Scale advantage: Globally leading production capacity and outstanding ability for rapid production capacity expansion
Based on years of operation and forward-looking strategic layout, we have built a globally leading and modern production
capacity platform with prominent scale effects and comprehensive support systems, making us capable of large-scale
manufacturing, whole-process quality management and control, and efficient and stable delivery, which is leading in the industry.
Thanks to our mature production line replication system and capabilities for process standardization, we can increase our
production capacity rapidly and expand production capacity flexibly during the window of explosive demands in the industry,
allowing us to respond to additional demands of major downstream customers. Our new production capacity is planned in close
alignment with the pace of industry technology iteration and the medium- to long-term development requirements of key
downstream customers; by progressively improving the production capacity structure and improving the efficiency of resource
allocation, we can constantly maximize operating benefits, consolidate our leading position in the industry, and build a solid
foundation for long-lasting core competitiveness. In terms of core products, in the fields of electronic circuits and precision
structural components, we have built prominent production capacity barriers on the basis of large-scale manufacturing advantages,
fine management systems, and capabilities of rapid response, which puts us in a leading position in terms of product yield rate,
delivery efficiency, and comprehensive cost control and facilities stable and reliable supply of core components for downstream
customers. In the field of AI core hardware, we have built a comprehensive product matrix and production capacity expansion
layout focusing on high added-value products, like optical transceivers (including optical chips), AI PCB, etc. At present, our
production capacity expansion projects are progressing in order as planned, capacity ramping is under implementation smoothly,
and the capability of large-scale supply is improving progressively to fully match with the increasing purchase demands of both
domestic and overseas mainstream cloud service providers to provide a strong support for the construction of global computing
infrastructure.
(V) Customer advantage: Serving globally leading customers in various fields while continuously deepening in-depth
cooperation
Relying on outstanding product quality, technology strength, and delivery capabilities, we have accumulated global
outstanding customer resources and built a customer base consisting of top global consumer electronics brands, pure electric
vehicle manufacturers, and cloud service providers, with businesses covering multiple high-growth industries like consumer
electronics, vehicles, data centers, telecommunication equipment, etc., which can defend against the seasonal fluctuation and
periodical risks of individual industries with the diversified industry layout. We establish long-term and in-depth strategic
cooperation relationship with core customers, participate in product definition at the early stage of customers’ product
development, closely follow the trends of technology routes, and accelerate product iteration through coordinated designing; after
being admitted to customers’ supply chain, we make use of our rich product portfolio, technology expertise, and large-scale
production capacity for extension to orders of associated products, thereby increasing sales to customers. For example, since the
acquisition of MFLEX, we have been providing flexible PCB products for global leading consumer electronics manufacturers,
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
extending the application scope from smartphones to all consumer electronics product categories and new energy vehicles; in the
vehicle field, we are providing integration solutions for global leading manufacturers to sustain and improve customer loyalty.
Relying on the manufacturing capabilities of vertical integration of EML optical chips and optical transceivers, Source Photonics,
a subsidiary of the Company, has become one of the core suppliers of global optical transceivers, which creates a bigger growth
space for the Company in the field of AI computing hardware.
(VI) Globalization and operation advantage: Global layout of production capacities to empower intelligent manufacturing and
build a resilient supply chain
We are deeply participating in the global supply chain system to build a global network for R&D, production, and sale in all
aspects. In this aspect, we have established R&D teams in multiple countries and regions, including Chinese mainland, Taiwan
Region, the United States, Singapore, France, etc., to attract local high-end professionals; meanwhile, we have production bases in
“global R&D, local production, and integrated services” to rapidly respond to customer needs throughout the world and flexibly
address the complex and volatile international trade environment. In the field of intelligent manufacturing, we have built an
industry leading intelligent manufacturing system with AI empowering and data driver as the core, in which advanced technologies
like machine visual AI detection and SMT automatic production line are widely used; moreover, we have built a production central
control center to implement whole-process coordinated management and control. Many of our production bases won many honors,
including the National Intelligent Manufacturing Demonstration Factory granted by the Ministry of Industry and Information
Technology, and Jiangsu Provincial Industrial Internet Benchmark Factory, which significantly improves the scale of production
capacities, product yield rates, and production efficiency, effectively reduces manufacturing costs, and ensures product quality
consistency and stability. Relying on the global network of production capacities and preference for local procurement, we can
implement local rapid delivery close to the end market, which reduces logistics costs, improves response speed, and enhances the
anti-risk capabilities for the supply chain to provide a solid support for the continuous and stable development of global businesses.
(VII) Management and synergy advantage: Efficient management to empower whole-process synergy
We have a management team with international understanding and forward-looking perspectives, which can make accurate
strategic judgment and conduct efficient strategy implementation. Advocating the corporate spirit of “breakthrough, diversity,
simplicity, journey”, we have built a scientific and efficient modern management system and made continuous efforts to build the
digital and intelligent management system, construct a uniform operation and management platform to standardize procedures and
accumulate experience in aspects of production and manufacturing, quality management and control, R&D projects, and supply
chain scheduling and empower subsidiaries and business segments to improve operating efficiency. Having owned mature
experience in cross-border acquisition and resource integration, we can rapidly promote cultural integration with the acquired
target company, implement our management system, and achieve performance improvement. By completing multiple benchmark
acquisition transactions in the industry, we have successfully entered a high-growth racetrack; we make continuous efforts to
improve our product matrix and global layout of production capacities, build strict and regulated acquisition selecting and post-
investment integration systems to output our mature and successful experience in manufacturing management, digital operation,
talent incentives to the acquired companies, and to efficiently achieve in-depth integration with acquired assets and release value
by means of customer expansion, organizational structure optimization, supply chain synergy and integration, incentive
mechanism improvement, etc.
In addition, we have achieved prominent synergy effects among various business segments: in terms of customer synergy, we
achieved resource sharing and complementary cooperation in a diversified business matrix covering AI PCBs, optical transceivers
(including optical chips), precision components, photoelectric display modules, etc., and deeply incorporated our products and
businesses into the core supply chain of global leading cloud service providers and AI computing power customers, which
effectively improves customer loyalty and overall shares; and in terms of supply chain synergy, we further optimized resource
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
allocation on the ground of our global layout of production capacities and centralized purchase system, which effectively enhances
resilience of the supply chain against risks, reduces costs, improves efficiency, and builds solid competitive advantages in costs as
a strong support for the long-lasting high-quality and sustainable development of the Company.
III. Analysis of Primary Business
In the first half of 2026, on the background of the accelerated global industry restructuring and a new development stage of
the AI computing power industry chain, we made continuous efforts to deepen the top-level development idea with both “offensive
and defensive characteristics”, and moved to in-depth industry operation and value creation on the basis of the business layout and
acquisition achieved in 2025. We focused on quality and efficiency improvement for conventional businesses, and on release of
new products, development of new customers, and expansion of new production capacities for emerging businesses. With
continuous iteration for global coordination, technological innovation, organization governance, and financial risk control system,
we are moving from layout implementation to result realization for various strategies. During the reporting period, we achieved
stable and improving operation as a whole, and further enhanced organic drivers for high-quality development. In the first half of
(I) Improved quality and efficiency for conventional businesses and built a resilient operating system with balanced new and
old businesses
During the reporting period, we moved from scale expansion to the improvement of profit quality and counter-cyclical
capabilities for our basic businesses, including core devices for consumer electronics and core parts for vehicles. Relying on
mature product lines for electronic circuits, precision structural components, photoelectric display modules, etc., we made use of
our global manufacturing network and outstanding customer resources to improve our product and customer structures constantly
in an effort to respond to the periodical fluctuation pressure from the downstream industry, maintain stable profitability, and
achieve stable operating cash flows. Our conventional businesses provided a continuous resource basis for the technology R&D,
production capacity investment, and global expansion of emerging racetracks, while the growth of emerging businesses leads to
future revenues and profits for the company, which makes a virtuous cycle supporting each other. By maintaining the existing core
business and expanding future growth drivers, we can effectively protect against cross-industry and cross-cycle fluctuations and
promote our strategic transformation from scale-driven growth to quality-and-efficiency-first improvement, to further enhance our
overall operating resilience and risk resistance.
(II) Took the opportunities of the AI computing power industry to move from capacity building to value release for “optical
transceivers (including optical chips) + AI PCBs”
The reporting period witnessed the shift from scale expansion to product iteration and capability improvement in the global
AI computing power building, while downstream customers raised higher requirements in product performance, stable delivery,
comprehensive supporting capabilities, etc. for core devices. Relying on the industry layout completed in 2025, we made great
efforts to make use of our unique industry synergy to build one-stop product solution capabilities covering optical transceivers
(including optical chips) + AI PCBs. In the field of optical communication, Source Photonics, after completing preliminary
production capacity building, focused on deepening product technology iteration, supply chain improvement, and customer
development. It accumulated technologies and achieved breakthroughs around the next generation of high-speed products, made
continuous efforts to integrate internal R&D, manufacturing, marketing to accelerate customer qualification and batch delivery of
high-end products, progressively developed global mainstream customers, and improved market position and added value for
products. For the AI PCB business, based on the technologies of Multek, we made active efforts for AI server iteration to match
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
with product upgrade. Having formed a synergistic resonance in technology, customers, and supply chain, the two business
segments facilitate the continuous consolidation of our differentiated competitive advantages in the field of core devices for AI
data centers.
(III) Deepened the competence of global operation to move from construction of production capacities to local-based value
creation in overseas layout
Following the acquisition of GMD Group in France in 2025, we shifted from acquisition closing to deep integration and value
realization in our globalization efforts. We fully released the synergistic potential of the GMD Group to leverage its established
manufacturing bases and complete vehicle customer resources in Europe and North Africa, which further deepened our regional
layout and enhanced our overseas production capacity and customer matrix in the vehicle business. We always optimized our
global manufacturing network covering Asia, the Americas, Europe, and Africa, and moved from mere capacity coverage to
actively promoting global resource allocation, technology sharing, and experience exchange to enhance cross-regional
collaborative operations. We made continuous efforts to build international talent pipeline and empower overseas teams to extend
their roles from execution to market development and technology iteration. Thanks to our local layout that is close to customers,
we can accurately capture the differential demands of customers from various regions, respond rapidly and make delivery
efficiently, thereby transforming our global hardware layout to core soft capacities for market development and risk diversification
and expanding the growth boundaries for the long-lasting development of the Company.
(IV) Strengthened technological innovation to upgrade product competitiveness by means of both technology and
manufacturing
Insisting on development driven by innovation, we further improved the innovation system for the AI hardware racetrack on
the basis of our forward-looking layout. We focused on key fields, including high-speed EML optical chips, high-speed optical
transceivers, and AI PCBs, balanced preliminary research of cutting-edge technologies and mass production technologies to build
a technology base in advance with customer demands for the next generation of products in mind, and progressively iterated and
optimized our product matrix to build product advantages toward the future. To empower innovation results with intelligent
manufacturing, we made continuous efforts for in-depth integration of intelligentization and informatization. We established data
links among global bases relying on the Internet platform, empowered the whole production process with data, and progressively
optimized the production scheduling system, process level, and yield rate performance to efficiently adapt to global customers’
orders requiring customization, various specifications, and short lead time. We insisted on promoting the engineer culture to fully
motivate the innovation potential of R&D and technology talents, and building a channel for industry-university-research
cooperation to create long-lasting competition barriers with hard technologies.
(V) Improved governance competence to build organic drivers in the organization and talents to match with diversified cross-
border businesses
On the background of our continuous business expansion and the successive integration of acquired entities, our organization
building is moving from architecture building to governance competence upgrade. Focusing on the overall strategy, we deepened
the management mechanism featuring “coordination and empowering by the group, and professional operation by business units”
to break business segment and regional barriers and promote efficient coordination among R&D, supply chain, and sales resources,
aiming to improve our integrated capabilities for providing comprehensive services to customers in all aspects. In terms of talent
building, we attracted suitable high-profile talents for key fields, like optical communication, global operation, etc., improved the
internal channel for talent development, strengthened efforts for professional competence building, and built a talent team with
both professional expertise and international perspectives. We optimized the appraisal and incentive mechanism to promote
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
simultaneous advancement of personal value and corporate development. We promoted intercultural integration under the
corporate culture of “openness, inclusion, pragmatism and enterprising”. Meanwhile, we made iteration for the internal control,
compliance, and risk control systems to adapt to complex scenarios of cross-border operation in multiple business segments.
Lifting the integration of acquired targets to the core level of corporate governance, we promoted the in-depth integration of
Source Photonics and GMD Group in France in aspects of businesses, organization, regulations, and culture to truly transform
acquisition advantages into the Company’s core competence and to shift “assets from acquisition” to “value creation driven by
acquisition”, hence supporting the Company’s stable and long-lasting organization efforts.
(VI) Upheld active and prudent financial strategies to achieve dynamic balance between strategic investments and
safeguarding against risks
In response to the capital expenditure demands from industry upgrade and the complex external market environment, we
adhered to the active and prudent financial strategy to further strengthen the financial management model with balanced strategic
orientation and risk bottom lines. We planned resource allocation scientifically, with capital resources prioritized to support
strategic production building in key areas like optical communication and AI PCBs, managed capital expenditure paces in a
reasonable manner, and actively met the funding needs of globalization and industry upgrade through diversified financing
instruments while making continued optimization of our capital and debt structure. We insisted on the idea of “cash priority”,
taking the quality of operating cash flows as a key factor in operation to improve liquidity management and comprehensive budget
and final account system, firmly holding the safety bottom line for funds. We always optimized hedging mechanisms against
fluctuations in exchange rates and commodity prices, and implemented detailed and practical whole-process financial risk
management controls. We deepened the integration of business and finance, promoted the embedding of financial management
into the entire business chain and empowered cost reduction, efficiency improvement, and profitability structure optimization from
a financial perspective. We made continuous efforts to iterate our global financial management and control system, strengthen the
financial management capabilities of overseas subsidiaries, and ensure that all acquired entities can be smoothly and efficiently
integrated into our financial system. The systematic financial governance and the balance between expansion and risk prevention
help to build a solid and reliable financial foundation to support the sustained execution of our strategies.
Year-on-year changes in key financial data
In RMB
The same period of Y/Y %
The reporting period Reason for change
the previous year change
Primarily due to the continuous
development of new customers and
new products in optical transceiver
Operating revenue 27,797,683,972.88 16,955,163,898.89 63.95% businesses during the reporting
period in addition to the acquisition
of Source and GMD, leading to
great growth in the revenue.
Primarily due to the increase in the
operating revenue, which leads to
Operating cost 22,196,075,162.56 14,650,499,235.90 51.50%
the corresponding increase in the
cost.
In addition to the revenue increase
above, primarily due to the increase
Selling expenses 268,145,700.67 157,942,605.07 69.77%
in selling expenses from our active
efforts to develop new products.
In addition to the revenue increase
Administrative expenses 897,460,520.37 547,561,939.49 63.90%
above, primarily due to the increase
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
The same period of Y/Y %
The reporting period Reason for change
the previous year change
in employee remuneration under the
plan.
Primarily due to the strategic
acquisition of Source Photonics and
GMD Group and the active
expansion of production capacity for
optical transceivers (including
optical chips) and AI PCB products,
Financial expenses 545,788,419.37 29,546,958.47 1,747.19%
which leads to the increase in capital
expenditures, increase in the
financial scale, increase in financial
interests; and due to the increase in
exchange losses due to exchange
rate changes in the current period.
Primarily due to the expected profits
achieved for various businesses,
Income tax expenses 503,842,570.02 201,934,636.13 149.51%
which leads to great increase in
taxes payable in the current period.
Net cash flows from operating
activities
Primarily due to the active efforts
for increasing the production
Net cash flows from investing capacities of optical transceivers
-5,482,528,738.38 -1,986,314,848.75 -176.02%
activities (including optical chips) and AI
PCB products, which leads to the
increase in capital expenditures.
Primarily due to the increase in debt
financing to support the strategic
Net cash flows from financing
activities
(including optical chips) and AI
PCBs.
Primarily due to the increase in
Net increase in cash and cash
equivalents
period.
Whether there is a significant change in the components or sources of profits during the reporting period of the Company?
□ Applicable N/A
There have been no significant changes in the components or sources of profits during the reporting period of the Company.
Components of operating revenue
In RMB
The reporting period The same period of the previous year
Y/Y %
% of operating % of operating change
Amount Amount
revenue revenue
Total operating revenue 27,797,683,972.88 100% 16,955,163,898.89 100% 63.95%
By segment
Computer, communication and
other electronics
Others 449,816,104.80 1.62% 199,159,694.31 1.17% 125.86%
By product
Electronic circuits 12,529,627,775.53 45.07% 11,059,315,884.89 65.23% 13.29%
Precision components 6,580,692,901.95 23.67% 2,361,835,859.44 13.93% 178.63%
Optical transceiver 5,350,999,299.05 19.25%
Photoelectric display module 2,723,476,776.77 9.80% 3,048,999,533.55 17.98% -10.68%
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Others 612,887,219.58 2.20% 485,012,621.01 2.86% 26.37%
By region
Domestic market 4,669,148,407.96 16.80% 3,787,323,865.50 22.34% 23.28%
Overseas market 23,128,535,564.92 83.20% 13,167,840,033.39 77.66% 75.64%
Segments, products, or regions representing more than 10% of operating revenue or profit of the Company
Applicable □ N/A
In RMB
Y/Y % change
Gross Y/Y % change in Y/Y % change
Operating revenue Operating cost in gross
margin operating revenue in operating cost
margin
By segment
Computer,
communication
and other
electronics
By product
Electronic circuits 12,529,627,775.53 10,174,431,182.90 18.80% 13.29% 11.58% 1.25%
Precision
components
Optical
transceiver
Photoelectric
display module
By region
Domestic market 4,669,148,407.96 4,213,470,923.64 9.76% 23.28% 15.42% 6.15%
Overseas market 23,128,535,564.92 17,982,604,238.92 22.25% 75.64% 63.48% 5.79%
In case of any adjustment to the statistic scale for primary business data, the primary business data of the most recent reporting
period as adjusted according to the statistic scale applied at the end of the reporting period
□ Applicable N/A
IV. Analysis of Non-primary Business
□ Applicable N/A
V. Analysis of Assets and Liabilities
In RMB
The end of the reporting period The end of the previous year
% of Reason for material
% of total Change %
Amount Amount total changes
assets
assets
Cash and bank
balances
Accounts
receivable
Inventories 11,417,997,322.49 16.51% 8,928,944,182.01 14.82% 1.69%
Investment 140,008,997.75 0.20% 142,555,461.11 0.24% -0.04%
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
properties
Long-term
equity 121,094,948.36 0.18% 126,566,432.55 0.21% -0.03%
investment
Fixed assets 17,187,713,941.47 24.85% 16,586,762,231.15 27.53% -2.68%
Primarily due to the active
efforts for increasing the
production capacities of
optical transceivers
(including optical chips)
Construction
in progress
which leads to the increase
in capital expenditures;
partial production
capacities are under
development.
Right-of-use
assets
Short-term
borrowings
Contract
liabilities
Primarily due to the
Long-term
borrowings
the current period.
Lease
liabilities
Applicable □ N/A
In RMB
Whether it
Controls for Proportion involves
Method of Mode of guaranteeing of overseas risk of
Assets Amount Location Income
acquisition operation the security of assets to net material
assets assets impairment
loss
Its
manufacturing
Hong Kong Hong Kong, R&D and entity is
Established 25,913,982,869.03 603,870,107.03 46.23%No
Dongshan China sales located in
Chinese
mainland
Its
manufacturing
Hong Kong, R&D and entity is
Multek Group Established 24,198,145,848.87 1,078,632,211.11 23.80%No
China sales located in
Chinese
mainland
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Applicable □ N/A
In RMB
Impairment
Aggregate
Gain or loss Amount Amount
changes in
Opening loss on recognized acquired in sold in the Other Closing
Item fair value
balance changes in in the the current current changes balance
recorded in
fair value current period period
equity
period
Financial assets
for trading (excluding 11,515,317. 155,000,00 11,500,000. 155,000,00
-15,317.92
derivative financial 92 0.00 00 0.00
assets)
-7,022.58
assets 01 21 84 05 43
investments
equity instruments 6.68 8.09 76 00 737,463.75 3.78
financial assets
Subtotal of financial 201,553,86 540,832,20 31,141,123. 187,622,28 163,767,09 - 796,622,57
assets 0.61 9.30 84 2.76 3.05 759,804.25 9.21
Investment properties
Productive biological
assets
Others
Total
Financial liabilities
In RMB
Reason Reason
Closing book Closing book Type of Opening book Opening book Type of
Item for for
balance value restriction balance value restriction
restriction restriction
Security Security
Cash and
deposit deposit
bank 1,845,226,184.58 1,845,226,184.58 Pledge 1,545,560,882.95 1,545,560,882.95 Pledge
for notes, for notes,
balances
etc. etc.
Accounts
receivable
Accounts
Pledge of Pledge of
receivable 9,050,787.13 9,050,787.13 Pledge 73,295,416.52 73,295,416.52 Pledge
notes notes
financing
Fixed Loan
assets mortgage
Right-of- 2,721,779,536.43 2,104,086,075.30 Mortgage Finance 2,708,474,287.07 2,209,353,814.61 Mortgage Finance
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
use assets lease lease
Total 5,435,508,976.59 4,813,518,253.21 5,468,799,603.40 4,961,324,206.23
VI. Analysis of Investments
Applicable □ N/A
Amount of investment in the reporting Amount of investment in the previous
Y/Y % change
period (RMB) period (RMB)
□ Applicable N/A
□ Applicable N/A
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(1) Investment in securities
Applicable □ N/A
In RMB
Aggregate Amount Amount sold Profit or loss
Initial Gain or loss on
Type of Code of Accounting Opening book changes in fair acquired in in the in the Closing Accounting Source of
Short name investment changes in fair
securities securities mode value value recorded the current current reporting book value title funds
costs value
in equity period period period
Domestic and Financial
overseas 688808 Semight 462,162,576.03 assets held
stocks for trading
Investments
Domestic and
overseas 920125 Hostar 34,885,400.00 219,056,926.33
stocks
instruments
Domestic and Financial
Ruixiang Measurement 25,074,000.0 33,915,000.0 Self-owned
overseas 920178 8,841,000.00 25,074,000.00 8,841,000.00 assets held
Intelligent by fair value 0 0 funds
stocks for trading
Total -- 34,885,400.00487,236,576.03 219,056,926.33 0.00 -- --
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(2) Investment in derivatives
Applicable □ N/A
Applicable □ N/A
In RMB 0’000
Aggregate % of net
Gain or Amount Amount
changes assets at
Initial loss on acquired sold in
Type of investment in Opening in fair Closing the end
investment changes in the the
derivatives balance value balance of the
amount in fair current current
recorded reporting
value period period
in equity period
Commodity futures 15,639.18 19,782.96 2,879.16 0 72,740.74 44,617.38 50,785.48 2.08%
Total 15,639.18 19,782.96 2,879.16 0 72,740.74 44,617.38 50,785.48 2.08%
Hedge accounting policies
and principles adopted for the
reporting period and
significant changes in such N/A
policies and principles
compared to the previous
reporting period
Actual profit or loss for the
The commodity futures transactions recorded in profit or loss were RMB 28,791,600.
reporting period
We conduct hedging transactions for the purpose of leveraging the hedging function of futures,
mitigating the effect of market price fluctuations of raw materials and products on our production
Effect of hedging
and operating costs, and prices of our main products, enhancing our overall risk resistance capacity,
and improving our financial soundness.
Source of funds for
Self-owned funds
investment in derivatives
Analysis of risks associated
with the derivatives held in
the current period (including
without limitation market Refer to the Announcement of Commodity Futures Hedging Transactions disclosed by us for the
risk, liquidity risk, credit risk, relevant risk analysis and controls.
operational risk and legal
risk) and related risk control
measures
Changes in the market price
or fair value of the
derivatives invested in the
current period (in the analysis We are mainly engaged in hedging transactions with mainstream products on major domestic futures
of the fair value of markets. The derivatives traded by us have a transparent and active market, and their transaction
derivatives, the specific prices and settlement prices can fully reflect their fair value.
approaches, assumptions and
parameters used shall be
disclosed)
Litigations involved (if
N/A
applicable)
Disclosure date of the
announcement of the board December 12, 2025
of directors approving the
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
investment in derivatives (if
any)
□ Applicable N/A
The Company did not have any derivative investment for speculative purposes during the reporting period.
□ Applicable N/A
There was no use of offering proceeds by the Company during the reporting period.
VII. Sale of Material Assets and Equities
□ Applicable N/A
No material asset has been sold during the reporting period.
□ Applicable N/A
VIII. Analysis of Major Subsidiaries and Associates
Applicable □ N/A
Major subsidiaries and associates representing more than 10% of the net profit of the Company
In RMB
Company Type of Primary Registered Operating Operating
Total assets Net assets Net profit
name company business capital revenue profit
R&D, sale and
after-sale
services in
Hong
respect of HKD 25,913,982, 11,349,729, 18,650,973, 641,889,57 603,870,10
Kong Subsidiary
electronic 10,000,000 869.03 752.86 983.02 8.48 7.03
Dongshan
circuits;
investment
holding
R&D, sale and
after-sale
services in
USD
Multek respect of 24,198,145, 5,843,633,0 8,801,477,4 1,332,065,5 1,078,632,2
Subsidiary 218,248,36
Group electronic 848.87 95.76 05.44 38.79 11.11
circuits;
investment
holding
Subsidiaries acquired or disposed of during the reporting period
□ Applicable N/A
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
IX. Structured Entities Controlled by the Company
□ Applicable N/A
X. Risk Exposures to the Company and Countermeasures
We have good customer resources. Our major customers are well-known domestic and international companies in the relevant
industries that are of sound credit and have established stable cooperation relationships with us. However, our top 5 customers
constitute a large proportion of our total sales revenue, which may further increase in the future. Any material adverse change in
the business situation of such major customers could have an adverse effect on our business. We will pay close attention to the
industry development dynamics of key customers and customer credit and take active measures for new product and new customer
development to reduce the adverse effects of high concentration of customers on the Company.
Our business covers electronic circuits, optical transceivers (including optical chips), precision components, photoelectric
display modules, and other technology-intensive industries, and our products are widely applied in AI data centers, consumer
electronics, vehicles, communication equipment, and other fields, all of which are characterized by rapid technology upgrading. If
our R&D and manufacturing capabilities fail to keep pace with the rapid technology upgrading of downstream products, our
products and technologies may become obsolete. We will closely follow the trend of cutting-edge technologies in relevant
industries and maintain in-depth communication with key customers to ensure advanced technologies for our products. Meanwhile,
we will keep close cooperation with influential universities and research institutions in the industry to maintain our advantages in
technologies and processes.
Our major customers include some well-known international companies, and our export sales have grown steadily for years.
Though China has established good economic and trade cooperation relationships with major countries in the world, the
increasingly fierce regional frictions in recent years may cause uncertainties in the applicable trade policies, which could affect our
international trade. Facing the complex and volatile international trade conditions, we will pay close attention to changes in
geopolitical trade policies, progressively optimize the global industry layout, consolidate capabilities for local operation and
support, deepen normal communication with customers, strengthen study on relevant international trade rules and compliance
management, and take systematic measures to protect against operating risks from changes in the external environment.
Our business covers the R&D, production, and sale of electronic circuits, optical transceivers (including optical chips),
precision components, and photoelectric display modules; our products are widely applied in consumer electronics, vehicles, data
centers, AI computing infrastructure, and other fields; and our customers are mostly leading enterprises in the industry. Our
industry has the characteristics of fast technology iteration, short product life cycle, and intense market competition. If we cannot
closely follow the technology development trend of the industry, cannot make sufficient investment in R&D, cannot promptly
meet the constantly improving product and technical requirements of existing core customers and downstream industries, or under
the impact of strict qualifications of downstream industry suppliers and long verification period, we cannot promptly develop high-
quality core customers and smoothly enter their supply chain system, we may experience insufficient orders and decreasing market
shares, resulting in adverse effects on the sale of our products, operating revenue, profitability, and operating performance. We
will increase investment in R&D and strengthen technological innovation and product iteration for continuous improvement of our
core competitiveness. We will take active measures to build a reserve mechanism of multiple customers, optimize our customer
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
structure, and build a diversified customer base. We will take early measures intended for the qualification system of target
customers, and build a dedicated working team to effectively promote qualification evaluation and admission procedures.
Meanwhile, we will make continuous efforts to enhance whole-process quality management and control and guarantee production
capacity, and improve the comprehensive delivery capabilities in all aspects to provide a solid support for the Company to promote
stable market expansion and achieve sustainable operation.
The production process of our products involves critical steps like epitaxial growth, etching, passivation, photolithography,
development, cleaning, and electroplating, which generates wastewater, exhaust gases, solid waste, and various toxic and
hazardous substances. Therefore, we are subject to high management and control requirements for environmental protection.
Despite our correspondingly established management measures for environmental protection, they cannot fully eliminate the risks
of environment accidents caused by management defects, equipment failures, force majeure, or other factors. In the event of a
pollution accident or violation of relevant environmental protection laws and regulations, we may face punishment, be required to
make rectification, and suffer reputation damages, which may cause adverse effects on our production and operation. In addition,
given the continuous implementation of green and low-carbon development throughout China and stricter supervision over
environmental protection, if the environmental protection standard is further enhanced in the future, we need to continuously
increase investment in environmental protection and strengthen transformation, which may correspondingly increase the operating
costs of environmental protection and affect our operating performance. We have set “building of an environment-friendly
enterprise” as a key goal of our sustainable development strategy, actively implemented the requirements of relevant latest
environmental protection laws and regulations, improved the environmental management system, enhanced training and
employees’ awareness, taken control measures at source, and implemented the requirements related to environmental safety in all
of our key business activities, to reduce the environmental risks.
Export sales constitute a large proportion of our total sales revenue. Because our day-to-day operation involves transactions in
USD and other foreign currencies, and our consolidated accounts are presented in RMB, the changes in the exchange rate between
RMB and USD may cause foreign exchange risk to our future operations. We will keep a close watch on the changes in the
relevant foreign exchange rates, strive to control the exposure to foreign exchange risk at a reasonable level, and hedge or
otherwise reduce exposure to such risk.
XI. Formulation and Implementation of Market Value Management System and Valuation
Improvement Plan
Whether the Company has formulated a market value management system?
Yes □ No
Whether the Company has disclosed a valuation improvement plan?
□ Yes No
For details, refer to the Market Value Management System disclosed on www.cninfo.com.cn.
XII. Implementation of the Action Plan to Improve the Quality and Returns
Whether the Company has disclosed its action plan announcement to improve the quality and returns?
□ Yes No
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Section IV Corporate Governance, Environment, and Society
I. Changes in Directors and Senior Executives
Applicable □ N/A
Name Position Type Date Reason
Left office on term
WANG Zhangzhong Independent director May 15, 2026 Re-election
expiry
Left office on term
SONG Liguo Independent director May 15, 2026 Re-election
expiry
Left office on term
GAO Yongru Independent director May 15, 2026 Re-election
expiry
WANG Leigang Independent director Elected May 15, 2026 Re-election
PAN Yongcheng Independent director Elected May 15, 2026 Re-election
CAI Weihua Independent director Elected May 15, 2026 Re-election
Deputy General
Li Ting Wei Appointment March 25, 2026 Appointment
Manager
II. Particulars of Profit Distribution and Transfer of Capital Reserve to the Share Capital
for the Reporting Period
□ Applicable N/A
The Company has no plan to pay cash dividends, distribute bonus shares or convert any capital reserve to the share capital for the
first half of this year.
III. Share Incentive Plans, Employee Stock Ownership Plans or Other Employee Incentives
Applicable □ N/A
Applicable □ N/A
Effective ESOPs in the current period
Total % of total
No. of
Scope of employees shares Changes share Source of funds
employees
held capital
Legal remunerations of the
Key employees for core technologies
employees, self-raised funds or
(businesses) of the Company and its 3,048,70
subsidiaries (excluding the Company’s 1
applicable laws and administrative
directors or senior executives)
regulations
Changes in asset manager during the reporting period:
□ Applicable N/A
Changes in equity due to disposal of shares by the holders or otherwise during the reporting period:
□ Applicable N/A
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Exercise of shareholder rights during the reporting period: N/A
Other information related to the ESOPs during the reporting period and the relevant explanation
□ Applicable N/A
Changes in the members of the ESOP management committee during the reporting period
□ Applicable N/A
The financial effect of the ESOPs on the Listed Company during the reporting period and the relevant accounting treatment
□ Applicable N/A
Termination of the ESOPs during the reporting period:
□ Applicable N/A
□ Applicable N/A
IV. Disclosure of Environmental Information
Whether the Listed Company and its major subsidiaries are included in the list of enterprises to disclose environmental information
in accordance with law
Yes □ No
Number of enterprises included in the list of enterprises
to disclose environmental information in accordance 9
with law
Index for query of environmental information reports disclosed in
No. Enterprise name
accordance with law
Jiangsu Source Communication Technology
Co., Ltd.
Chaowei Microelectronics (Yancheng) Co., Jiangsu Province (http://sthjt.jiangsu.gov.cn/) - “Environmental
Ltd.
Yancheng Dongshan Precision Enterprise Information Disclosure
Manufacturing Co., Ltd.
Yancheng Dongchuang Precision
Manufacturing Co., Ltd.
Province - Guangdong Enterprise Environmental Information
Disclosure System According to Law
V. Social Responsibility
Upholding the idea of “integration of enterprise development with social responsibility”, and under the mission of “building a
better connected world for tomorrow”, we have progressively improved the governance system to include the concerns of
stakeholders, the creation of social value, and the environment sustainable development into our core decision-making in an effort
to seriously fulfill the responsibilities as a corporate citizen and promote the economic and social high-quality development.
In the first half of 2026, we made continuous efforts to deepen ESG management practices while insisting on “customer-
centric” and incorporating customers’ requirements and high quality standards into the full life cycle of products to ensure rapid
response and efficient handling of requests and sustained supply of high-quality products and satisfactory services. On the basis of
our business strategy, we strove to create a fair and transparent purchase environment, optimize the whole-life cycle supplier
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
management, and made continuous efforts to build a competitive, resilient, and sustainable supply chain system. We strictly abided
by laws, regulations, and policies by establishing and improving the labor and human rights management system, progressively
improving the talent training and development system, and constantly improving the sense of belonging and value of employees.
We made active efforts to develop the regional economy and continuous efforts for public welfare and charity activities, in order to
fulfill our corporate social responsibility and promote social development with our practical acts.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Section V Significant Matters
I. Covenants made by the actual controllers, shareholders, affiliates and acquirer of the
Company, the Company itself and other related parties that have been fulfilled during the
reporting period or that fail to be fulfilled on time as of the end of the reporting period
Applicable □ N/A
Validity
Background Type of Time of period of Status of
Covenantor Content of covenant
of covenant covenant covenant the fulfillment
covenant
Each of the shareholders YUAN Yonggang and YUAN
Yongfeng, as director and senior executive of the As of the
Company, covenants that so long as I remain a director end of the
Covenants and senior executive of the Company, I will not transfer reporting
YUAN
related to more than 25% of the total shares held by me in the period, the
Yonggang April 9, Permanently
restrictions Company each year; and if I cease to be a director and covenantors
and YUAN 2010 binding
on the sale senior executive of the Company, I will not transfer any have
Yongfeng
of shares shares held by me in the Company within half a year, and complied
will not transfer more than 50% of the total shares held with such
by me in the Company through the stock exchange covenants.
within 12 months thereafter.
Covenants
As of the
related to
end of the
YUAN horizontal
Covenants related to horizontal competition: Each of the reporting
Yonggang, competition,
shareholders YUAN Yonggang, YUAN Yongfeng, and period, the
YUAN related- April 9, Permanently
YUAN Fugen covenants that I do not, directly or covenantors
Yongfeng, party 2010 binding
indirectly, engage in any business in competition with the have
and YUAN transactions
Covenant business actually conducted by the Company. complied
Fugen and
relating to with such
occupation
initial covenants.
of funds
public
Covenants related to horizontal competition: Each of the
offering or
shareholders YUAN Yonggang, YUAN Yongfeng, and
subsequent
YUAN Fugen covenants that after the completion of this
fundraisings
material asset restructuring, I will not, directly or through
any affiliate, participate or engage in any business that
Covenants substantially competes or might compete with the
As of the
related to business of the Company; and if any product
end of the
YUAN horizontal manufactured or business conducted by any entity wholly
reporting
Yonggang, competition, owned, controlled or invested by me in the future
period, the
YUAN related- competes or might compete with the Company, at the June 11, Permanently
covenantors
Yongfeng, party request of the Company, I will transfer all of the 2018 binding
have
and YUAN transactions investment or shares held by me in such entity, give
complied
Fugen and priority to the Company or its wholly owned subsidiary
with such
occupation in the acquisition of such investment or shares subject to
covenants.
of funds the applicable laws and regulations, and use my best
efforts to procure that the transfer price will be
determined on an arm’s length basis; and if I or any of
my affiliates breaches any covenant set forth above, I
will indemnify the Company and other shareholders for
the damages arising therefrom according to law.
YUAN Covenants Covenants related to the regulation and reduction of June 11, Permanently As of the
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Yonggang, related to related-party transactions: Each of the shareholders 2018 binding end of the
YUAN horizontal YUAN Yonggang, YUAN Yongfeng, and YUAN Fugen reporting
Yongfeng, competition, covenants that (1) I and my affiliates will avoid or reduce period, the
and YUAN related- related-party transactions with the Company to the covenantors
Fugen party maximum extent practicable; (2) with respect to the have
transactions related-party transactions that are unavoidable or complied
and necessary, I will abide by the principle of justice, fairness with such
occupation and openness, enter into the relevant agreements covenants.
of funds according to law, perform the legal procedures pursuant
to the applicable laws, regulations, normative documents,
the Articles of Association and other relevant provisions
of the Company, ensure that such related-party
transactions are fair, comply with the regulations, and
will not damage the legitimate rights and interests of the
Company and other shareholders, and make the relevant
information disclosures promptly in accordance with the
requirements of the applicable laws, regulations and
normative documents; and (3) I will exercise the
shareholder rights in strict accordance with the Company
Law and other applicable laws and regulations, and the
relevant provisions of the Articles of Association of the
Company, and abstain from the voting on the related-
party transactions involving me and other entities
controlled by me at the general meeting of the Company
in accordance with the relevant provisions.
I. Within six months from the base date for pricing
(March 13, 2024) for the private placement of shares, I
and the affiliates under my control have not sold the
shares of DSBJ; II. From the base date for pricing to the
expiration of eighteen months after the private placement As of the
Covenant
of DSBJ is completed, I and the affiliates under my end of the
not to sell
control will neither sell DSBJ’s shares in any form nor reporting
YUAN the
have any plan of selling DSBJ’s shares; and III. My period, the
Yonggang Company’s December Permanently
covenant is an irrevocable covenant, which shall be covenantors
and YUAN shares 18, 2024 binding
binding on me and the affiliates under my control from have
Yongfeng during a
the execution date of this covenant, and the transferee complied
specific
under the share transfer described above shall inherit this with such
period
covenant; if I and the affiliates under my control sell covenants.
shares in violation of this covenant, all the proceeds from
selling such shares shall be owned by DSBJ and I shall
be fully responsible for all the legal liabilities arising
therefrom.
Covenant regarding the remedial measures against
dilution of current earnings caused by the private
YUAN
placement: Each of the directors and senior executives of
Yonggang,
the Company covenants that: (1) I will not transfer
YUAN As of the
benefits to any other entity or individual without
Yongfeng, end of the
compensation or on unfair terms, or otherwise damage
ZHAO reporting
the interests of the Company; (2) I will exercise self-
Xiutian, period, the
Other Other discipline in consumption in performing my duties; (3) I October Permanently
SHAN covenantors
covenants covenants will not use the assets of the Company to engage in any 10, 2019 binding
Jianbin, have
investment or consumption activities not in connection
WANG complied
with my duties; (4) I will link the compensation system
Xu, MAO with such
adopted by the Board of Directors or the Compensation
Xiaoyan covenants.
Committee with the implementation of the Company’s
and MA
remedial measures against dilution of current earnings;
Liqiang
(5) if the Company implements any share incentive plan
in the future, I will link the vesting conditions under such
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
share incentive plan with the implementation of the
Company’s remedial measures against dilution of current
earnings; and (6) I will seriously implement the
Company’s remedial measures against dilution of current
earnings, and abide by the relevant covenants made by
me; and if I breach any covenant set forth above, I will
indemnify the Company or the investors for the losses
arising therefrom according to law, and accept the
punishments that the competent regulatory authorities
may impose on me.
Covenant regarding the remedial measures against
dilution of current earnings caused by the private As of the
placement: Each of the controlling shareholders and end of the
YUAN
actual controllers of the Company covenants that I will reporting
Yonggang,
not interfere with the management and operation of the period, the
YUAN Other October Permanently
Company beyond my powers, or infringe on the interests covenantors
Yongfeng, covenants 17, 2019 binding
of the Company; and as the person responsible for the have
and YUAN
serious implementation of the remedial measures against complied
Fugen
dilution of current earnings, if I breach or refuse to fulfill with such
any covenant set forth above, I will assume the relevant covenants.
liabilities according to law.
To ensure the effective implementation of the remedial
measures against dilution of earnings to be taken by the
Company, each of the controlling shareholders and actual
controllers of the Company covenants that: “(1) I will not
interfere with the management and operation of the
Company beyond my powers, or infringe on the interests
of the Company; (2) from the date of this Letter of
Undertaking till the completion of this offering, in case As of the
of any new regulatory provisions promulgated by the end of the
YUAN
CSRC or the SZSE regarding the remedial measures reporting
Yonggang,
against dilution of earnings and related covenants, as a period, the
YUAN Other March 12, Permanently
result of which the covenants set forth above no longer covenantors
Yongfeng, covenants 2024 binding
comply with such new provisions, I will make additional have
and YUAN
covenants in accordance with such new provisions; and complied
Fugen
(3) I will seriously implement the remedial measures with such
against dilution of earnings adopted by the Company and covenants.
fulfill my covenants in connection therewith, and if I
breach or refuse to fulfill any covenant set forth above,
accept the penalties or other regulatory actions that may
be imposed or taken by the CSRC, the SZSE or other
competent securities authorities against me, and
indemnify the Company or the investors for the losses
arising therefrom according to law.”
To ensure the effective implementation of the remedial
YUAN measures against dilution of earnings to be taken by the
Yonggang, Company, each of the directors and senior executives of
As of the
YUAN the Company covenants that: “(1) I will not transfer
end of the
Yongfeng, benefits to any other entity or individual without
reporting
ZHAO compensation or on unfair terms, or otherwise damage
period, the
Other Xiutian, Other the interests of the Company; (2) I will exercise self- March 12, Permanently
covenantors
covenants SHAN covenants discipline in consumption in performing my duties; (3) I 2024 binding
have
Jianbin, will not use the assets of the Company to engage in any
complied
WANG investment or consumption activities not in connection
with such
Xu, and with my duties; (4) I will link the compensation system
covenants.
MAO adopted by the Board of Directors or the Compensation
Xiaoyan Committee with the implementation of the Company’s
remedial measures against dilution of earnings; (5) if the
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Company implements any share incentive plan in the
future, I will link the vesting conditions under such share
incentive plan with the implementation of the Company’s
remedial measures against dilution of earnings; (6) from
the date of this Letter of Undertaking till the completion
of this offering, in case of any new regulatory provisions
promulgated by the CSRC or the SZSE regarding the
remedial measures against dilution of earnings and
related covenants, as a result of which the covenants set
forth above no longer comply with such new provisions,
I will make additional covenants in accordance with such
new provisions; and (7) I will seriously implement the
remedial measures against dilution of current earnings
adopted by the Company and fulfill my covenants in
connection therewith, and if I breach any covenant set
forth above, indemnify the Company or the investors for
the losses arising therefrom according to law.”
Whether the
covenants
have been Yes
fulfilled on
time
If any
covenant
fails to be
fulfilled on
time, please
explain the N/A
reason and
the relevant
actions to
be taken in
detail
II. Occupation by the Controlling Shareholders and their Affiliates of the Funds of the
Listed Company for Non-operating Purpose
□ Applicable N/A
Our controlling shareholders and their affiliates have not occupied our funds for non-operating purposes during the reporting
period.
III. External Guarantees in Violation of the Regulations
□ Applicable N/A
We have not provided any external guarantee in violation of the applicable regulations during the reporting period.
IV. Engagement and Termination of Engagement of Accounting Firm
Has the semi-annual financial report been audited?
□ Yes No
The semi-annual report has not been audited.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
V. Explanation by the Board of Directors about the Modified Auditor’s Report Issued by the
Accounting Firm for the Reporting Period
□ Applicable N/A
VI. Explanation by the Board of Directors about the Modified Auditor’s Report of the
Previous Year
□ Applicable N/A
VII. Matters Relating to Bankruptcy and Reorganization
□ Applicable N/A
We have not been involved in any bankruptcy or reorganization proceedings during the reporting period.
VIII. Litigation
Material litigation and arbitration proceedings
□ Applicable N/A
We have not been involved in any material litigation or arbitration proceedings during the reporting period.
Other litigation proceedings
□ Applicable N/A
IX. Punishments and Rectifications
□ Applicable N/A
We have not been involved in any punishment and rectification during the reporting period.
X. Credit Standing of the Company and its Controlling Shareholders and Actual Controllers
□ Applicable N/A
XI. Material Related-party Transactions
□ Applicable N/A
There has been no related-party transaction relating to day-to-day operation during the reporting period.
□ Applicable N/A
There has been no related-party transaction involving the acquisition or sale of assets or equities during the reporting period.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
□ Applicable N/A
There has been no related-party transaction involving joint external investment during the reporting period.
□ Applicable N/A
There has been no debt owed by or to related parties during the reporting period.
□ Applicable N/A
There has been no deposit, loan, facility or other financial businesses between us and any of our affiliated financial companies.
□ Applicable N/A
There has been no deposit, loan, facility or other financial businesses between any of our controlled financial companies and
affiliates.
□ Applicable N/A
There has been no other material related-party transaction during the reporting period.
XII. Particulars and Performance of Material Contracts
(1) Trusteeship
□ Applicable N/A
No such case during the reporting period.
(2) Contracting
□ Applicable N/A
No such case during the reporting period.
(3) Leases
□ Applicable N/A
No such case during the reporting period.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Applicable □ N/A
In RMB 0’000
External guarantees provided by the Company and its subsidiaries (excluding those provided for the subsidiaries)
Disclosure date of Whether or
Maximum Effective Counter Whether
announcement of the Actual amount Type of Collateral (if Term of not provided
Obligor amount date of guarantee (if or not
maximum amount guaranteed guarantee applicable) guarantee for a related
guaranteed guarantee applicable) expired
guaranteed party
Suzhou Toprun Electric
Equipment Co., Ltd.
Total amount of external guarantee
Total amount of external guarantee approved
during the reporting period (A1)
reporting period (A2)
Total amount of external guarantee
Total amount of external guarantee approved as at
the end of the reporting period (A3)
reporting period (A4)
Guarantees provided by the Company for its subsidiaries
Disclosure date of Whether or
Maximum Effective Counter Whether
announcement of the Actual amount Type of Collateral (if Term of not provided
Obligor amount date of guarantee (if or not
maximum amount guaranteed guarantee applicable) guarantee for a related
guaranteed guarantee applicable) expired
guaranteed party
Dragon Electronix
Holdings Inc. and its 200,000 126,600.00
subsidiaries
Hong Kong Dongshan
Holding Limited and its 127,000 63,748.02
subsidiaries
Multek Group (Hong
Kong) Limited and its 1,000,000 368,971.17
subsidiaries
Source Photonics
Holdings (Cayman) 100,000 51,743.07
Limited and its
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
subsidiaries
Chaowei
Microelectronics 20,000 0
(Yancheng) Co., Ltd.
Suzhou Dongshan
Display Inc.
Mutto Optronics
Technology Co., Ltd.
Suzhou RF Top
Electronic
Communication Co.,
Ltd.
Suzhou Chengjia
Precision Manufacturing 5,000 0
Co., Ltd.
Suzhou Yongchuang
Communication 20,000 4,350.20
Technology Co., Ltd.
Yancheng Dongchuang
Precision Manufacturing 140,000 85,395.73
Co., Ltd.
Yancheng Dongshan
Precision Manufacturing 60,000 31,850.00
Co., Ltd.
Groupe Mecanique
Decoupage S.A. and its 50,000 0
subsidiaries
Total amount of guarantee actually
Total amount of guarantee approved to be provided
for subsidiaries during the reporting period (B1)
the reporting period (B2)
Total amount of guarantee approved to be provided Total amount of guarantee
for subsidiaries as at the end of the reporting 1,797,000 provided for subsidiaries as at the 792,101.19
period (B3) end of the reporting period (B4)
Guarantees provided by subsidiaries for each other
Disclosure date of Maximum Effective Actual amount Type of Collateral (if Counter Term of Whether Whether or
Obligor
announcement of the amount date of guaranteed guarantee applicable) guarantee (if guarantee or not not provided
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
maximum amount guaranteed guarantee applicable) expired for a related
guaranteed party
Total amount of guarantee actually
Total amount of guarantee approved to be provided
for subsidiaries during the reporting period (C1)
the reporting period (C2)
Total amount of guarantee approved to be provided Total amount of guarantee
for subsidiaries as at the end of the reporting 0 provided for subsidiaries as at the 0
period (C3) end of the reporting period (C4)
Total amount of guarantee provided by the Company
Total amount of guarantee actually
Total amount of guarantee approved during the
reporting period (A1+B1+C1)
period (A2+B2+C2)
Total amount of guarantee
Total amount of guarantee approved as at the end
of the reporting period (A3+B3+C3)
reporting period (A4+B4+C4)
Ratio of the total amount of guarantee (A4+B4+C4) to the net assets of the
Company
Incl.:
Outstanding guarantees provided for shareholders, actual controllers and their
affiliates (D)
Outstanding guarantees directly or indirectly provided for obligors whose debt-to-
assets ratio exceeds 70% (E)
Portion of the total amount of guarantee in excess of 50% of the net assets (F) 0
Total (D+E+F) 647,129.24
Explanation about the joint and several liabilities that have been or might be
N/A
incurred in respect of outstanding guarantees during the reporting period (if any)
Explanation about external guarantees provided in contravention of the established
N/A
procedures (if any)
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Applicable □ N/A
In RMB 0’000
Balance of entrusted wealth
Type of product Risk characteristics management during the Overdue amount
reporting period
Low-risk or principal-
Bank wealth management
guaranteed with floating 15,500 0
product
incomes
□ Applicable N/A
XIII. Record Forms for Investigation, Research, Communication, Interview and Other
Activities during the Reporting Period
Applicable □ N/A
Method of Particulars of the
Type of Main topics of discussion and
Date Place communic Guests investigation and research
guests information provided
ation activity available at
Online Interpretation of our annual
ation etc.
Instituti
Communi
onal Optical communication
investor business, etc. www.cninfo.com.cn
telephone
s
Instituti
On-site
Conferen onal JPMorgan, Optical communication
ce room investor etc. business, etc.
on
s
XIV. Other Significant Matters
□ Applicable N/A
There’s no other significant matter needing to be explained for the reporting period.
XV. Significant Matters of Subsidiaries
□ Applicable N/A
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Section VI Changes in Shares and Shareholders
I. Changes in Shares
In Shares
Before the change +/- After the change
Capitalization
New Bonus
Number % of capital Others Subtotal Number %
shares shares
reserves
I. Non-tradable shares 445,285,809 24.31% 445,285,809 24.31%
owned corporations
domestic investors
Incl.: Shares held by
domestic non-State-owned
corporations
Shares held by domestic
natural persons
investors
Incl.: Shares held by
foreign corporations
Shares held by foreign
natural persons
II. Tradable shares 1,386,321,723 75.69% 1,386,321,723 75.69%
ordinary shares
denominated shares listed
domestically
denominated shares listed
overseas
III. Total shares 1,831,607,532 100.00% 1,831,607,532 100.00%
Cause of change
□ Applicable N/A
Approval of changes in shares
□ Applicable N/A
Registration of changes in shares
□ Applicable N/A
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Progress of share repurchases
□ Applicable N/A
Progress of sale or repurchase of shares by call auction
□ Applicable N/A
Effect of changes in shares on financial indicators including the basic earnings per share, diluted earnings per share, net assets per
share attributable to ordinary shareholders of the Company, etc. in the last year and the last period
□ Applicable N/A
Other information that should be disclosed at the discretion of the Company or at the request of the securities regulatory authorities
□ Applicable N/A
□ Applicable N/A
II. Offering and Listing of Securities
□ Applicable N/A
III. Number of Shareholders and Shareholding Structure of the Company
In Shares
Total number of preferred shareholders whose voting
Total number of ordinary shareholders at the end
of the reporting period
period (if any) (Note 8)
Shareholding by shareholders holding more than 5% of the shares or the top 10 shareholders (excluding the shares lent via refinancing)
No. of shares Changes in Pledge, attachment or freeze
No. of non-
Status of Shareholding held at the end shareholding No. of tradable
Name of shareholder tradable shares
shareholder percentage of the reporting during the shares held Status of shares Number
held
period reporting period
Domestic natural
YUAN Yonggang 16.53% 302,781,254 252,224,705 50,556,549 Pledge 104,828,000
person
Domestic natural
YUAN Yongfeng 13.51% 247,526,917 191,929,879 55,597,038 Pledge 46,583,800
person
Hong Kong Securities Foreign
Clearing Company Limited corporation
Domestic natural
YUAN Fugen 3.21% 58,796,052 58,796,052 N/A
person
China Life Insurance
Company Ltd. –
Traditional – General Others 0.58% 10,675,141 10,675,141 N/A
Insurance Product – 005L
– CT001 Shanghai
China Merchants Bank
Co., Ltd. – Ruiyuan
Others 0.40% 7,414,800 7,414,800 N/A
Growth Value Hybrid
Securities Investment Fund
Reform (Shanghai) Private
Fund Management Co.,
Ltd. – Reform Red Coast Others 0.40% 7,236,854 7,236,854 N/A
No. 3 Private Securities
Investment Fund
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Industrial and Commercial
Bank of China Limited –
Fullgoal Innovative Others 0.38% 7,000,000 7,000,000 N/A
Technology Commingled
Securities Investment Fund
China Construction Bank
Corporation – Huatai-
PineBridge Quality Others 0.38% 6,872,604 6,872,604 N/A
Growth Commingled
Securities Investment Fund
Bank of China – Morgan
Stanley China Digital
Others 0.34% 6,194,686 6,194,686 N/A
Economy Hybrid
Securities Investment Fund
Strategic investors or general corporations
becoming the top 10 shareholders as a result of N/A
rights issue (if any) (Note 3)
Among the shareholders listed above, YUAN Yonggang and YUAN Yongfeng are sons of YUAN Fugen, and YUAN Yongfeng is the elder
Affiliates or concert parties among the brother of YUAN Yonggang. YUAN Fugen, YUAN Yongfeng and YUAN Yonggang are our actual controllers. We are not aware whether
shareholders listed above there are affiliates or concert parties within the meaning of the Administrative Measures for the Takeover of Listed Companies among other
shareholders listed above.
Delegation or waiver of voting rights or
ownership of voting rights by or to the N/A
shareholders listed above
Special explanation about any dedicated account
for repurchase opened by any top 10 shareholder N/A
(if any) (Note 11)
Shareholding by the top 10 holders of tradable shares (excluding the shares lent via refinancing or under executive lock-up)
Type and number of shares
Name of shareholder No. of tradable shares held at the end of the reporting period
Type of shares Number
RMB-
Hong Kong Securities Clearing Company Limited 69,090,247 denominated 69,090,247
ordinary share
RMB-
YUAN Fugen 58,796,052 denominated 58,796,052
ordinary share
RMB-
YUAN Yongfeng 55,597,038 denominated 55,597,038
ordinary share
RMB-
YUAN Yonggang 50,556,549 denominated 50,556,549
ordinary share
China Life Insurance Company Ltd. – Traditional RMB-
– General Insurance Product – 005L – CT001 10,675,141 denominated 10,675,141
Shanghai ordinary share
RMB-
China Merchants Bank Co., Ltd. – Ruiyuan
Growth Value Hybrid Securities Investment Fund
ordinary share
Reform (Shanghai) Private Fund Management RMB-
Co., Ltd. – Reform Red Coast No. 3 Private 7,236,854 denominated 7,236,854
Securities Investment Fund ordinary share
Industrial and Commercial Bank of China Limited RMB-
– Fullgoal Innovative Technology Commingled 7,000,000 denominated 7,000,000
Securities Investment Fund ordinary share
China Construction Bank Corporation – Huatai- 6,872,604 RMB- 6,872,604
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
PineBridge Quality Growth Commingled denominated
Securities Investment Fund ordinary share
RMB-
Bank of China – Morgan Stanley China Digital
Economy Hybrid Securities Investment Fund
ordinary share
Among the shareholders listed above, YUAN Yonggang and YUAN Yongfeng are sons of YUAN Fugen, and YUAN Yongfeng is the elder
Affiliates or concert parties among the top 10
brother of YUAN Yonggang. YUAN Fugen, YUAN Yongfeng and YUAN Yonggang are our actual controllers. We are not aware whether
holders of tradable shares, and among the top 10
there are affiliates or concert parties within the meaning of the Administrative Measures for the Takeover of Listed Companies among other
holders of tradable shares and top 10 shareholders
shareholders listed above.
Securities margin trading conducted by the top 10
N/A
ordinary shareholders (if any) (Note 4)
IV. Changes in Shareholding of Directors and Senior Executives
□ Applicable N/A
There has been no change in the shareholding of our directors and senior executives during the reporting period, as detailed in the
Annual Report 2025.
V. Changes in Controlling Shareholders and Actual Controllers
Describe the progress of change of control if the Company has previously disclosed a planned change of control by the actual
controllers but not completed
□ Applicable N/A
Change in the controlling shareholders during the reporting period
□ Applicable N/A
There has been no change in our controlling shareholders during the reporting period.
Change in the actual controllers during the reporting period
□ Applicable N/A
There has been no change in our actual controllers during the reporting period.
VI. Preferred Shares
□ Applicable N/A
We did not have any preferred share during the reporting period.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Section VII Bonds
□ Applicable N/A
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Section VIII Financial Report
I. Auditor’s Report
Has the semi-annual report been audited?
□ Yes No
This semi-annual financial report has not been audited.
II. Financial Statements
The amounts in the statements contained in the notes to the financial statements are presented in RMB
Prepared by: Suzhou Dongshan Precision Manufacturing Co., Ltd.
June 30, 2026
In RMB
Item Closing balance Opening balance
Current assets:
Cash and bank balances 8,792,751,795.06 7,650,283,509.10
Settlement deposit
Loans to banks and other financial institutions
Financial assets held for trading 796,622,579.21 201,553,860.61
Derivative financial assets
Notes receivable 84,355.48
Accounts receivable 10,598,328,021.04 9,792,745,060.06
Accounts receivable financing 263,570,165.06 285,277,607.54
Advances to suppliers 720,298,190.03 274,265,688.35
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 199,189,721.60 165,859,090.82
Incl.: Interest receivable
Dividends receivable
Financial assets held under resale agreements
Inventories 11,417,997,322.49 8,928,944,182.01
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year 96,551,847.52
Other current assets 1,624,243,297.69 1,328,586,793.26
Total current assets 34,509,637,295.18 28,627,515,791.75
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Non-current assets:
Loans and advances to clients
Debt investments
Other debt investments
Long-term receivables 200,461,581.81 356,797,043.79
Long-term equity investment 121,094,948.36 126,566,432.55
Investments in other equity instruments 753,350,370.10 442,976,297.74
Other non-current financial assets
Investment properties 140,008,997.75 142,555,461.11
Fixed assets 17,187,713,941.47 16,586,762,231.15
Construction in progress 4,514,260,841.57 2,345,985,416.22
Productive biological assets
Oil and gas assets
Right-of-use assets 2,104,086,075.30 2,209,353,814.61
Intangible assets 1,337,819,327.31 1,321,067,216.43
Incl.: Data resources
Development expenses 45,633,398.23 41,694,639.16
Incl.: Data resources
Goodwill 4,682,691,033.43 4,769,259,362.01
Long-term deferred expenses 1,024,532,488.90 990,698,521.69
Deferred tax assets 815,482,511.41 829,762,594.06
Other non-current assets 1,730,638,190.52 1,459,542,272.71
Total non-current assets 34,657,773,706.16 31,623,021,303.23
Total assets 69,167,411,001.34 60,250,537,094.98
Current liabilities:
Short-term borrowings 9,630,387,148.70 8,011,474,049.03
Borrowings from the Central Bank
Borrowings from banks and other financial institutions
Financial liabilities held for trading 181,580,627.27 46,545,937.17
Derivative financial liabilities
Notes payable 616,705,866.60 1,002,812,950.68
Accounts payable 15,735,505,650.92 13,043,136,687.34
Advances from clients
Contract liabilities 459,685,401.30 474,660,658.17
Financial assets sold under repurchase agreements
Deposits from clients and other banks
Funds received as stock broker
Funds received as underwriter of securities
Employee benefits payable 884,144,727.12 995,231,432.74
Taxes payable 644,261,153.86 641,337,262.33
Other payables 154,547,241.39 705,336,813.22
Incl.: Interest payable
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Dividends payable
Fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 2,975,457,863.36 3,488,303,627.95
Other current liabilities 65,198,657.61 43,838,129.08
Total current liabilities 31,347,474,338.13 28,452,677,547.71
Non-current liabilities:
Provision for insurance contracts
Long-term borrowings 9,440,527,185.37 6,375,079,464.54
Bonds payable
Incl.: Preferred shares
Perpetual bonds
Lease liabilities 1,916,654,495.75 1,790,064,820.73
Long-term payables
Long-term employee benefits payable 133,338,235.43 142,470,448.33
Provisions 221,976,523.02 263,756,502.85
Deferred income 870,657,651.65 889,843,133.49
Deferred tax liabilities 687,709,601.19 634,806,937.54
Other non-current liabilities
Total non-current liabilities 13,270,863,692.41 10,096,021,307.48
Total liabilities 44,618,338,030.54 38,548,698,855.19
Owners’ equity:
Share capital 1,831,607,532.00 1,831,607,532.00
Other equity instruments
Incl.: Preferred shares
Perpetual bonds
Capital reserve 9,364,904,944.65 9,257,892,537.77
Less: Treasury shares 125,085,277.62 175,076,133.79
Other comprehensive income -351,692,077.71 -240,832,682.74
Special reserve
Surplus reserve 249,150,887.74 249,150,887.74
General risk reserve
Retained profits 13,397,898,226.42 10,538,405,831.61
Total owners’ equity attributable to the parent company 24,366,784,235.48 21,461,147,972.59
Minority interests 182,288,735.32 240,690,267.20
Total owners’ equity 24,549,072,970.80 21,701,838,239.79
Total liabilities and owners’ equity 69,167,411,001.34 60,250,537,094.98
Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang
In RMB
Item Closing balance Opening balance
Current assets:
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Cash and bank balances 1,797,027,600.68 1,160,294,626.93
Financial assets held for trading 482,600.00 219,600.00
Derivative financial assets
Notes receivable 84,355.48
Accounts receivable 2,830,979,403.55 2,968,231,046.34
Accounts receivable financing 133,700,423.68 97,221,485.41
Advances to suppliers 29,646,722.08 31,232,780.09
Other receivables 7,045,107,579.69 6,264,171,897.96
Incl.: Interest receivable
Dividends receivable 1,399,081,471.06 1,430,532,996.21
Inventories 663,935,500.53 674,472,213.11
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year 30,697,260.09
Other current assets 68,164,879.44 63,612,410.64
Total current assets 12,599,826,325.22 11,259,456,060.48
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 8,772,612.88 76,509,581.77
Long-term equity investment 10,325,701,433.27 10,272,197,298.16
Investments in other equity instruments 299,091,154.78 233,620,897.88
Other non-current financial assets 1,422,215,467.07 725,589,519.73
Investment properties
Fixed assets 756,711,567.17 746,080,950.55
Construction in progress 84,081,493.54 116,200,639.43
Productive biological assets
Oil and gas assets
Right-of-use assets 4,036,637.47 652,300.04
Intangible assets 27,350,524.17 29,117,476.28
Incl.: Data resources
Development expenses
Incl.: Data resources
Goodwill
Long-term deferred expenses 65,433,565.46 62,191,879.79
Deferred tax assets 284,745.88 90,067,212.74
Other non-current assets 53,100,176.54 470,817,876.53
Total non-current assets 13,046,779,378.23 12,823,045,632.90
Total assets 25,646,605,703.45 24,082,501,693.38
Current liabilities:
Short-term borrowings 1,970,561,804.40 1,891,299,933.33
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Financial liabilities held for trading 138,600.00
Derivative financial liabilities
Notes payable 224,613,823.66 794,515,542.20
Accounts payable 2,031,403,348.28 1,713,486,270.10
Advances from clients
Contract liabilities 29,778,023.74 24,694,026.25
Employee benefits payable 21,123,524.59 21,209,233.64
Taxes payable 2,468,409.52 2,981,563.32
Other payables 5,120,898,953.12 5,522,584,357.60
Incl.: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 1,398,138,479.76 1,491,016,892.43
Other current liabilities 4,647,129.88 4,002,965.31
Total current liabilities 10,803,772,096.95 11,465,790,784.18
Non-current liabilities:
Long-term borrowings 3,062,596,213.05 1,356,851,593.72
Bonds payable
Incl.: Preferred shares
Perpetual bonds
Lease liabilities 2,271,314.25
Long-term payables
Long-term employee benefits payable
Provisions 1,284,160.56 1,284,160.56
Deferred income 19,192,706.08 16,537,828.64
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 3,085,344,393.94 1,374,673,582.92
Total liabilities 13,889,116,490.89 12,840,464,367.10
Owners’ equity:
Share capital 1,831,607,532.00 1,831,607,532.00
Other equity instruments
Incl.: Preferred shares
Perpetual bonds
Capital reserve 9,255,763,392.77 9,156,573,425.73
Less: Treasury shares 125,085,277.62 175,076,133.79
Other comprehensive income 68,240,906.24 12,485,447.88
Special reserve
Surplus reserve 249,150,887.74 249,150,887.74
Retained profits 477,811,771.43 167,296,166.72
Total owners’ equity 11,757,489,212.56 11,242,037,326.28
Total liabilities and owners’ equity 25,646,605,703.45 24,082,501,693.38
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
In RMB
Item First half of 2026 First half of 2025
I. Total operating revenue 27,797,683,972.88 16,955,163,898.89
Incl.: Operating revenue 27,797,683,972.88 16,955,163,898.89
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 24,770,727,041.86 16,030,744,161.86
Incl.: Operating cost 22,196,075,162.56 14,650,499,235.90
Interest expenses
Fee and commission expenses
Surrenders
Net payments for insurance claims
Net insurance reserves
Policyholder dividends
Reinsurance expenses
Taxes and surcharges 78,955,921.37 63,725,956.00
Selling expenses 268,145,700.67 157,942,605.07
Administrative expenses 897,460,520.37 547,561,939.49
R&D expenses 784,301,317.52 581,467,466.93
Financial expenses 545,788,419.37 29,546,958.47
Incl.: Interest expenses 296,149,334.39 198,585,725.04
Interest income 86,441,618.15 113,967,483.54
Add: Other income 171,583,827.69 141,318,212.63
Investment income (loss expressed with “-”) 33,671,781.46 -6,702,003.08
Incl.: Investment income from associates and joint ventures -3,664,609.04 -4,073,896.56
Gain on derecognition of financial assets at amortized cost
Exchange gain (loss expressed with “-”)
Net exposure hedging income (loss expressed with “-”)
Gain on changes in fair value (loss expressed with “-”) 490,690,971.91 2,536,226.77
Credit impairment loss (loss expressed with “-”) -13,777,349.90 3,764,627.53
Impairment loss on assets (loss expressed with “-”) -198,128,450.05 -89,174,069.11
Gain on disposal of assets (loss expressed with “-”) -7,633,381.80 -14,963,024.24
III. Operating profit (loss expressed with “-”) 3,503,364,330.33 961,199,707.53
Add: Non-operating revenue 2,634,397.34 5,619,440.36
Less: Non-operating expenses 17,525,675.98 6,326,490.28
IV. Profit before tax (loss expressed with “-”) 3,488,473,051.69 960,492,657.61
Less: Income tax expenses 503,842,570.02 201,934,636.13
V. Net profit (loss expressed with “-”) 2,984,630,481.67 758,558,021.48
(I) Classified by continuity of operation
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(II) Classified by attribution
with “-”)
VI. Other comprehensive income, net after tax -110,859,394.97 112,697,346.88
Other comprehensive income attributable to owners of the parent company, net
-110,859,394.97 112,697,346.88
after tax
(I) Other comprehensive income that cannot be reclassified to profit or loss 230,132,936.38
under the equity method
(II) Other comprehensive income that will be reclassified to profit or loss -340,992,331.35 112,697,346.88
under the equity method
Other comprehensive income attributable to minority interests, net after tax
VII. Total comprehensive income 2,873,771,086.70 871,255,368.36
Total comprehensive income attributable to owners of the parent company 2,846,039,416.07 870,703,327.49
Total comprehensive income attributable to minority interests 27,731,670.63 552,040.87
VIII. Earnings per share:
(I) Basic earnings per share 1.62 0.45
(II) Diluted earnings per share 1.62 0.45
Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang
In RMB
Item First half of 2026 First half of 2025
I. Operating revenue 2,414,068,467.47 2,035,279,637.55
Less: Operating cost 2,207,124,036.79 1,923,255,924.16
Taxes and surcharges 4,906,867.73 7,304,339.14
Selling expenses 17,103,875.58 11,700,519.31
Administrative expenses 146,860,064.96 95,512,928.90
R&D expenses 106,098,469.66 95,862,762.28
Financial expenses 132,849,843.89 97,559,230.35
Incl.: Interest expenses 124,442,157.10 127,405,110.13
Interest income 30,602,265.37 27,296,685.73
Add: Other income 2,694,745.05 5,531,714.64
Investment income (loss expressed with “-”) -2,357,494.42 -3,285,156.20
Incl.: Investment income from associates and joint ventures -2,997,694.42 -3,445,956.20
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Gain on derecognition of financial assets at amortized cost (loss
expressed with “-”)
Net exposure hedging income (loss expressed with “-”)
Gain on changes in fair value (loss expressed with “-”) 596,625,947.34
Credit impairment loss (loss expressed with “-”) -2,898,756.73 -8,328,750.96
Impairment loss on assets (loss expressed with “-”) 467,044.22 -1,685,402.36
Gain on disposal of assets (loss expressed with “-”) 224,528.71 41,991.25
II. Operating profit (loss expressed with “-”) 393,881,323.03 -203,641,670.22
Add: Non-operating revenue 435,385.53
Less: Non-operating expenses 3,422,450.00 4,403,421.43
III. Profit before tax (loss expressed with “-”) 390,458,873.03 -207,609,706.12
Less: Income tax expenses 79,943,268.32 -43,609,661.73
IV. Net profit (loss expressed with “-”) 310,515,604.71 -164,000,044.39
(I) Net profit from continuing operations (loss expressed with “-”) 310,515,604.71 -164,000,044.39
(II) Net profit from discontinued operations (loss expressed with “-”)
V. Other comprehensive income, net after tax 55,755,458.36
(I) Other comprehensive income that cannot be reclassified to profit or loss 55,649,718.36
the equity method
(II) Other comprehensive income that will be reclassified to profit or loss 105,740.00
equity method
VI. Total comprehensive income 366,271,063.07 -164,000,044.39
VII. Earnings per share:
(I) Basic earnings per share 0.17 -0.10
(II) Diluted earnings per share 0.17 -0.10
In RMB
Item First half of 2026 First half of 2025
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services 27,318,459,552.92 17,905,726,279.90
Net increase in deposits from clients and other banks
Net increase in borrowings from the Central Bank
Net increase in borrowings from other financial institutions
Proceeds from premiums under prior insurance contracts
Net proceeds from reinsurance business
Net increase in insured’s deposits and investments
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Proceeds from interest, fees and commissions
Net increase in borrowings from banks and other financial institutions
Net increase in receipts under repurchase transactions
Net cash received as stock broker
Tax refunds received 883,368,416.74 669,998,774.36
Other cash receipts related to operating activities 616,807,778.90 648,888,660.75
Cash provided by operating activities 28,818,635,748.56 19,224,613,715.01
Payments for purchase of goods and receipt of services 20,581,660,977.77 13,120,444,976.67
Net increase in loans and advances from clients
Net increase in deposits in the Central Bank and other banks
Payment of claims under prior insurance contracts
Net increase in loans to banks and other financial institutions
Payment of interest, fees and commissions
Payment of policyholder dividends
Payments to and for employees 3,895,884,417.98 2,542,398,872.87
Taxes paid 625,095,887.15 360,545,772.47
Other cash payments related to operating activities 1,332,107,189.56 701,106,071.72
Cash used in operating activities 26,434,748,472.46 16,724,495,693.73
Net cash flows from operating activities 2,383,887,276.10 2,500,118,021.28
II. Cash flows from investing activities:
Proceeds from disposal of investments 413,710,855.22 38,814,660.00
Proceeds from return on investments 27,621,900.29 4,378,625.51
Net proceeds from the disposal of fixed assets, intangible assets and other
long-term assets
Net proceeds from the disposal of subsidiaries and other business entities
Other cash receipts related to investing activities 2,361,600,623.62 793,654,284.84
Cash provided by investing activities 2,822,057,618.25 914,532,303.59
Payments for the acquisition of fixed assets, intangible assets and other long-
term assets
Payments for investments 533,616,983.13 168,236,626.52
Net increase in mortgage loans
Net payments for the acquisition of subsidiaries and other business entities 536,818,618.87
Other cash payments related to investing activities 1,980,792,794.18 584,356,090.09
Cash used in investing activities 8,304,586,356.63 2,900,847,152.34
Net cash flows from investing activities -5,482,528,738.38 -1,986,314,848.75
III. Cash flows from financing activities:
Proceeds from investors 119,661,514.25 1,391,512,544.73
Incl.: Proceeds of subsidiaries from minority shareholders’ investments
Cash receipts from borrowings 10,932,032,706.62 4,365,837,875.26
Other cash receipts related to financing activities 3,587,827,793.27 730,151,717.04
Cash provided by financing activities 14,639,522,014.14 6,487,502,137.03
Repayment of borrowings 6,402,581,138.02 4,240,821,985.76
Payment of distribution of dividends and profits or for interest 246,477,649.48 269,883,548.61
Incl.: Dividends and profits distributed by subsidiaries to minority
shareholders
Other cash payments related to financing activities 3,850,795,945.91 453,405,753.18
Cash used in financing activities 10,499,854,733.41 4,964,111,287.55
Net cash flows from financing activities 4,139,667,280.73 1,523,390,849.48
IV. Effect of exchange rate changes on cash and cash equivalents -198,222,834.12 35,783,302.37
V. Net increase in cash and cash equivalents 842,802,984.33 2,072,977,324.38
Add: Opening balance of cash and cash equivalents 6,104,722,626.15 5,343,600,382.37
VI. Closing balance of cash and cash equivalents 6,947,525,610.48 7,416,577,706.75
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
In RMB
Item First half of 2026 First half of 2025
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services 2,199,184,571.79 1,848,570,248.41
Tax refunds received 32,807,394.51 55,983,401.38
Other cash receipts related to operating activities 1,939,828,648.02 706,540,414.22
Cash provided by operating activities 4,171,820,614.32 2,611,094,064.01
Payments for purchase of goods and receipt of services 1,751,065,173.99 1,625,050,615.30
Payments to and for employees 154,337,883.04 152,271,297.86
Taxes paid 83,049.68 7,912,874.45
Other cash payments related to operating activities 1,947,235,221.24 755,309,050.54
Cash used in operating activities 3,852,721,327.95 2,540,543,838.15
Net cash flows from operating activities 319,099,286.37 70,550,225.86
II. Cash flows from investing activities:
Proceeds from disposal of investments 1,674,130.44
Proceeds from return on investments 772,944.71 203,172,800.00
Net proceeds from the disposal of fixed assets, intangible assets and other long-
term assets
Net proceeds from the disposal of subsidiaries and other business entities
Other cash receipts related to investing activities 1,565,215,656.77 679,130,328.77
Cash provided by investing activities 1,573,596,594.92 882,436,702.88
Payments for the acquisition of fixed assets, intangible assets and other long-
term assets
Payments for investments 129,990,000.00
Net payments for the acquisition of subsidiaries and other business entities
Other cash payments related to investing activities 1,825,602,180.16 888,354,407.83
Cash used in investing activities 2,026,028,513.95 919,018,177.32
Net cash flows from investing activities -452,431,919.03 -36,581,474.44
III. Cash flows from financing activities:
Proceeds from investors 119,661,514.25 1,391,512,544.73
Cash receipts from borrowings 3,577,513,513.05 1,360,000,000.00
Other cash receipts related to financing activities 250,000,000.00 1,353,041,000.00
Cash provided by financing activities 3,947,175,027.30 4,104,553,544.73
Repayment of borrowings 1,888,510,000.00 2,233,501,340.00
Payment of distribution of dividends and profits or for interest 65,936,018.37 187,206,039.04
Other cash payments related to financing activities 1,119,643,547.07 661,026,890.77
Cash used in financing activities 3,074,089,565.44 3,081,734,269.81
Net cash flows from financing activities 873,085,461.86 1,022,819,274.92
IV. Effect of exchange rate changes on cash and cash equivalents -4,863,112.02 5,841,710.55
V. Net increase in cash and cash equivalents 734,889,717.18 1,062,629,736.89
Add: Opening balance of cash and cash equivalents 717,793,422.39 538,870,203.05
VI. Closing balance of cash and cash equivalents 1,452,683,139.57 1,601,499,939.94
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Amount of the current period
In RMB
First half of 2026
Owners’ equity attributable to the parent
Item Total
Other equity instruments Less: Other General Minority
Share Capital Special Surplus Retained owners’
Treasury comprehensive risk Others Subtotal interests
capital Preferred Perpetual reserve reserve reserve profits equity
Others shares income reserve
shares bonds
I. Balance at the end of 1,831,607, 9,257,892,53 175,076,133. 249,150,88 10,538,405,8 21,461,147, 240,690,26 21,701,838
-240,832,682.74
the previous year 532.00 7.77 79 7.74 31.61 972.59 7.20 ,239.79
Add: Changes in
accounting policies
Correction of
previous period errors
Others
II. Balance at the
beginning of the current -240,832,682.74
year
III. Increase/(decrease)
- -
in the current period 107,012,406. 2,859,492,39 2,905,636,2 2,847,234,
(decrease expressed 88 4.81 62.89 731.01
with “-”)
(I) Total comprehensive 2,956,898,81 2,846,039,4 27,731,670 2,873,771,
-110,859,394.97
income 1.04 16.07 .63 086.70
(II) - - - -
Investment/(divestment) 49,990,856.1 97,406,416.2 86,133,202 26,536,355
by shareholders 7 3 .51 .69
holders of ordinary 49,990,856.1
shares 7
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
holders of other equity
instruments
payments recorded in
owners’ equity
- - - -
(III) Distribution of
profits
owners (shareholders)
(IV) Internal transfer of
owners’ equity
reserve to (share)
capital
reserve to (share)
capital
surplus reserve
in defined benefit plans
to retained earnings
comprehensive income
to retained earnings
(V) Special reserve
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
current period
period
(VI) Others
IV. Balance at the end 1,831,607, 9,364,904,94 125,085,277. 249,150,88 13,397,898,2 24,366,784, 182,288,73 24,549,072
-351,692,077.71
of the current period 532.00 4.65 62 7.74 26.42 235.48 5.32 ,970.80
The same period of the previous year
In RMB
First half of 2025
Owners’ equity attributable to the parent
Item Total
Other equity instruments Less: Other General Minority
Share Capital Special Surplus Retained owners’
Preferred Perpetual Treasury comprehensive risk Others Subtotal interests
capital Others reserve reserve reserve profits equity
shares bonds shares income reserve
I. Balance at the end of 1,705,913,7 7,992,284,43 74,991,696.7 232,241,21 9,288,043,97 18,826,387 59,715,963
-317,104,374.08 03,233.2
the previous year 10.00 5.83 9 6.54 7.88 ,269.38 .85
Add: Changes in
accounting policies
Correction of
previous period errors
Others
II. Balance at the 18,886,1
beginning of the current -317,104,374.08 03,233.2
year 3
III. Increase/(decrease)
in the current period 125,693,822 1,265,818,72 100,084,437. 639,210,799. 2,043,336, 2,043,88
(decrease expressed .00 2.73 00 98 254.59 8,295.46
with “-”)
(I) Total comprehensive 758,005,980. 870,703,32 871,255,
income 61 7.49 368.36
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(II)
Investment/(divestment)
.00 2.73 00 107.73 8,107.73
by shareholders
holders of ordinary
.00 2.73 544.73 2,544.73
shares
holders of other equity
instruments
payments recorded in
owners’ equity
- -
- - -
(III) Distribution of
profits
- - -
owners (shareholders)
(IV) Internal transfer of
owners’ equity
reserve to (share)
capital
reserve to (share)
capital
surplus reserve
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
in defined benefit plans
to retained earnings
comprehensive income
to retained earnings
(V) Special reserve
current period
period
(VI) Others
IV. Balance at the end 1,831,607,5 9,258,103,15 175,076,133. 232,241,21 9,927,254,77 20,869,723 60,268,004
-204,407,027.20 91,528.6
of the current period 32.00 8.56 79 6.54 7.86 ,523.97 .72
Amount of the current period
In RMB
First half of 2026
Other equity instruments Other
Item Share Capital Less: Treasury Special Surplus Retained Total owners’
Preferred Perpetual comprehensive Others
capital Others reserve shares reserve reserve profits equity
shares bonds income
I. Balance at the end 1,831,607, 9,156,57 175,076,133.7 249,150,88 167,296,16 11,242,037,32
of the previous year 532.00 3,425.73 9 7.74 6.72 6.28
Add: Changes
in accounting
policies
Correction
of previous period
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
errors
Others
II. Balance at the
beginning of the 12,485,447.88
current year
III.
Increase/(decrease)
in the current period 55,755,458.36
(decrease expressed
with “-”)
(I) Total
comprehensive 55,755,458.36
income
(II)
Investment/(divestm
ent) by shareholders
from holders of
ordinary shares
from holders of other
equity instruments
payments recorded 29,519,308.96
in owners’ equity
(III) Distribution of
profits
owners
(shareholders)
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(IV) Internal transfer
of owners’ equity
reserve to (share)
capital
reserve to (share)
capital
by surplus reserve
changes in defined
benefit plans to
retained earnings
comprehensive
income to retained
earnings
(V) Special reserve
the current period
current period
(VI) Others
IV. Balance at the
end of the current 68,240,906.24
period
The same period of the previous year
In RMB
First half of 2025
Item
Share Other equity instruments Capital Less: Treasury Other Special Surplus Retained Others Total owners’
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
capital Preferred Perpetual reserve shares comprehensive reserve reserve profits equity
Others income
shares bonds
I. Balance at the end 1,705,913, 7,890,75 232,241,21 133,904,30 9,887,822,239
of the previous year 710.00 4,703.00 6.54 6.56 .31
Add: Changes
in accounting
policies
Correction
of previous period
errors
Others
II. Balance at the
beginning of the 74,991,696.79
current year
III.
Increase/(decrease) -
in the current period 282,795,22
(decrease expressed 5.02
with “-”)
(I) Total - -
comprehensive 164,000,04 164,000,044.3
income 4.39 9
(II)
Investment/(divestm
ent) by shareholders
from holders of
ordinary shares
from holders of other
equity instruments
payments recorded
in owners’ equity
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
- -
(III) Distribution of
profits
owners 118,795,18 118,795,180.6
(shareholders) 0.63 3
(IV) Internal transfer
of owners’ equity
reserve to (share)
capital
reserve to (share)
capital
by surplus reserve
changes in defined
benefit plans to
retained earnings
comprehensive
income to retained
earnings
(V) Special reserve
the current period
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
current period
(VI) Others
IV. Balance at the -
end of the current 0.00 148,890,91
period 8.46
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
III. General Information of the Company
Suzhou Dongshan Precision Manufacturing Co., Ltd. (the “Company”) is a company limited by shares converted from
Suzhou Dongshan Sheet Metal Co., Ltd., and registered with the Suzhou Municipal Administration for Industry and Commerce of
Jiangsu on December 24, 2007, and is headquartered in Suzhou, Jiangsu, holds a business license with the unified social credit
code of 91320500703719732P, and has a registered capital of RMB 1,831,607,532, divided into 1,831,607,532 shares with a par
value of RMB 1 each share, of which, 445,285,809 shares are non-tradable A-shares, and 1,386,321,723 shares are tradable A-
shares. The Company’s shares have been listed and traded on the Shenzhen Stock Exchange since April 9, 2010. The Company
belongs to the computer, communication and other electronic equipment manufacturing industry, and is primarily engaged in the
provision of core devices for intelligent interconnection, including electronic circuits, optical transceivers (including optical chips),
photoelectric display modules, precision components, etc.
These financial statements are published with the approval of the 4th meeting of the 7th Board of Directors of the Company
on August 20, 2026.
IV. Basis for Preparation of the Financial Statements
These financial statements have been prepared on the assumption that the Company is a going concern.
No event or fact may cast significant doubts on the Company’s ability to remain a going concern within 12 months after the
end of the reporting period.
V. Significant Accounting Policies and Accounting Estimates
Note about specific accounting policies and accounting estimates:
The Company has established specific accounting policies and made specific accounting estimates with respect to the
impairment of financial instruments, inventories, depreciation of fixed assets, construction in progress, intangible assets,
recognition of revenues and other transactions or events according to its actual production and operational characteristics.
The financial statements prepared by the Company conform to the requirements of the ASBE, and truly and completely
reflect the Company’s financial condition, operating results, cash flows and other related information.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
The Company’s accounting year is from January 1 to December 31 of each calendar year.
The Company has a relatively short operating cycle, and determines the liquidity of assets and liabilities on the basis of 12
months.
The parent company and domestic subsidiaries adopt RMB as their functional currency. Overseas subsidiaries determine their
functional currencies according to the main economic environment where they conduct operating activities, mainly including USD,
EUR, THB, MXN, etc. These consolidated financial statements are presented in RMB.
Applicable □ N/A
Item Materiality criteria
Disclosure item involving judgment in
Determination and basis for selection of materiality criteria
materiality criteria
Significant dividends receivable aged
Individual amount accounting for over 0.3% of the total assets
over one year
Significant constructions in progress Total investment in an individual project accounting for over 0.3% of the total assets
Significant accounts payable aged over
Individual amount accounting for over 0.3% of the total assets
one year
Significant other payables aged over
Individual amount accounting for over 0.3% of the total assets
one year
Significant contract liabilities aged
Individual amount accounting for over 0.3% of the total assets
over one year
Significant cash flows from investing
Individual amount accounting for over 5% of the total assets
activities
Total assets/total revenue/total profit accounting for over 10% of the group’s total
Significant overseas operating entities
assets/total revenue/total profit
Significant subsidiaries and non-wholly Total assets/total revenue/total profit accounting for over 10% of the group’s total
owned subsidiaries assets/total revenue/total profit
The book value of an individual long-term equity investment accounting for over
Significant joint ventures or associates 15% of the group’s net assets/the individual investment income accounted for using
the equity method accounting for over 15% of the group’s total profit
common control
Assets and liabilities acquired from a business combination by the Company are measured at the carrying value of the assets
and liabilities of the acquiree in the consolidated financial statements of the ultimate controller at the combination date. The
difference between the carrying value of the owners’ equity of the acquiree as stated in the consolidated financial statements of the
ultimate controller and the carrying value of the total consideration paid or total par value of the shares issued in connection with
the combination is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the
difference, the remaining balance is charged against the retained earnings.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Where the cost of the combination exceeds the Company’s share of the fair value of the acquiree’s net identifiable assets, the
difference is recognized as goodwill at the acquisition date. Where the cost of combination is lower than the Company’s share of
the fair value of the acquiree’s net identifiable assets, the Company reviews the measurement of the fair value of each of the
identifiable assets, liabilities and contingent liabilities acquired from the acquiree and the cost of combination, and if the cost of
combination as reviewed is still lower than the Company’s share of the fair value of the acquiree’s net identifiable assets, the
difference is recognized in profit or loss.
Control means that the Company has power over the investee, exposure or rights to variable returns from its involvement with
the investee and the ability to use its power to affect the amount of those returns.
(1) The parent includes all of its controlled subsidiaries in its consolidated financial statements. The consolidated financial
statements are prepared by the parent in accordance with ASBE 33 “Consolidated Financial Statements”, on the basis of the
respective financial statements of the parent and its subsidiaries, by reference to other relevant data.
For the purpose of the cash flow statement, cash comprises cash on hand and demand deposits, and cash equivalents comprise
short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value.
Upon initial recognition, foreign currency transactions are translated into RMB using the approximate exchange rates of spot
exchange rates at the transaction dates. At the balance sheet date, monetary items denominated in foreign currencies are translated
into RMB using the spot exchange rates then prevailing. Exchange differences arising from such translations are recognized in
profit or loss, except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition
or construction of qualifying assets and accrued interest. Non-monetary items denominated in foreign currencies that are measured
at historical cost are translated using the approximate exchange rates of spot exchange rates at the transaction dates, without
adjusting the amounts in RMB. Non-monetary items denominated in foreign currencies that are measured at fair value are
translated using the spot exchange rates prevailing at the dates when the fair value was determined, with the exchange differences
arising from such translations recognized in profit or loss or other comprehensive income.
The asset and liability items in the balance sheet are translated at the spot exchange rates prevailing at the balance sheet date.
The owners’ equity items other than “retained profits” are translated at the spot exchange rates prevailing at the transaction dates.
The income and expense items in the income statement are translated at the approximate exchange rates of spot exchange rates at
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
the transaction dates. The differences arising from such translation of foreign currency financial statements are recognized in other
comprehensive income.
Upon initial recognition, financial assets are classified as: (i) financial assets at amortized cost; (ii) financial assets at fair
value through other comprehensive income; and (iii) financial assets at fair value through profit or loss.
Upon initial recognition, financial liabilities are classified as: (i) financial liabilities at fair value through profit or loss; (ii)
financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or continuing
involvement in the financial assets transferred; (iii) financial guarantee contracts not falling under items (i) or (ii), and loan
commitments not falling under item (i) and below market interest rate; and (iv) financial liabilities at amortized cost.
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract, a financial asset or liability is recognized. Financial
assets or liabilities are initially measured at fair value. Transaction costs relating to financial assets and liabilities at fair value
through profit or loss are directly recognized in profit or loss. Transaction costs relating to other kinds of financial assets or
liabilities are included in their initially recognized amount. However, the accounts receivable that do not contain any significant
financing component or are recognized by the Company without taking into consideration the significant financing components
under the contracts with a term of less than one year upon initial recognition are initially measured at transaction price as defined
in ASBE 14 “Revenue”.
(2) Subsequent measurement of financial assets
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. Gains or
losses on financial assets at amortized cost that do not belong to any hedging relationship are recognized in profit or loss upon
derecognition, reclassification, amortization using the effective interest method, or recognition of impairment.
Investments in debt instruments at fair value through other comprehensive income are subsequently measured at fair value.
Interest, impairment losses or gains and exchange gains or losses calculated using the effective interest method are recognized in
profit or loss, while other gains or losses are recognized in other comprehensive income. Upon derecognition, the aggregate gains
or losses previously recognized in other comprehensive income are transferred to profit or loss.
Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value.
Dividends received (other than those received as recovery of investment cost) are recognized in profit or loss, while other gains or
losses are recognized in other comprehensive income. Upon derecognition, the aggregate gains or losses previously recognized in
other comprehensive income are transferred to retained earnings.
Financial assets at fair value through profit or loss are subsequently measured at fair value. Gains or losses thereon, including
interest and dividend income, are recognized in profit or loss, except the financial assets belonging to any hedging relationship.
(3) Subsequent measurement of financial liabilities
Financial liabilities at fair value through profit or loss include financial liabilities held for trading (including derivatives
classified as financial liabilities), and financial liabilities designated as at fair value through profit or loss. Such financial liabilities
are subsequently measured at fair value. Changes in the fair value of financial liabilities designated as at fair value through profit
or loss arising out of changes in the Company’s credit risk are recognized in other comprehensive income, unless such treatment
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
will result in or increase any accounting mismatch in profit or loss. Other gains or losses on such financial liabilities, including
interest expenses and changes in fair value not arising out of changes in the Company’s credit risk, are recognized in profit or loss,
except the financial liabilities belonging to any hedging relationship. Upon derecognition, the aggregate gains or losses previously
recognized in other comprehensive income are transferred to retained earnings.
continuing involvement in the financial assets transferred
Such financial liabilities are measured in accordance with ASBE 23 “Transfer of Financial Assets”.
the market interest rate
Upon initial recognition, such financial liabilities are subsequently measured at the higher of (i) allowance for impairment
losses determined according to the policy for impairment of financial instruments; and (ii) balance of the initially recognized
amount after deduction of the accumulated amortization determined in accordance with ASBE 14 “Revenue”.
Financial liabilities at amortized cost are subsequently measured at amortized cost using the effective interest method. Gains
or losses on financial liabilities at amortized cost that do not belong to any hedging relationship are recognized in profit or loss
upon derecognition or amortization using the effective interest method.
(4) Derecognition of financial assets and financial liabilities
① the contractual right to receive cash flows from the financial assets has expired; or
② the financial assets have been transferred and such transfer meets the criteria for derecognition of financial assets as set
forth in ASBE 23 “Transfer of Financial Assets”.
discharged.
When a financial asset of the Company is transferred, if substantially all the risks and rewards incidental to the ownership of
the financial asset have been transferred, the financial asset is derecognized, and the rights and obligations incurred or retained in
such transfer are separately recognized as assets or liabilities (as the case may be); if the Company has retained substantially all the
risks and rewards incidental to the ownership of the financial asset, the Company continues to recognize the financial asset
transferred. If the Company neither transferred nor retained a substantial portion of all risks and rewards incidental to the
ownership of the financial asset, then: (i) if the Company does not retain control over the financial asset, the financial asset is
derecognized, and the rights and obligations incurred or retained in such transfer are separately recognized as assets or liabilities
(as the case may be); or (ii) if the Company retains control over the financial asset, the financial asset continues to be recognized to
the extent of the Company’s continuing involvement in the financial asset transferred, and a corresponding liability is recognized.
If an entire transfer of a financial asset meets the criteria for derecognition, the difference between (i) the carrying value of the
financial asset transferred at the date of derecognition; and (ii) the sum of the consideration received from the transfer and the
portion of the cumulative amount of changes in fair value directly recorded as other comprehensive income originally that
corresponds to the part derecognized (where the financial asset transferred is an investment in debt instruments at fair value
through other comprehensive income) is recognized in profit or loss. If part of a financial asset is transferred and the part
transferred entirely meets the criteria for derecognition, the total carrying value of the financial asset immediately prior to the
transfer is allocated between the part derecognized and the part not derecognized in proportion to their relative fair value at the
date of transfer, and the difference between (i) the carrying value of the part derecognized; and (ii) the sum of the consideration
received from the transfer of the part derecognized and the portion of the cumulative amount of changes in fair value directly
recorded as other comprehensive income originally that corresponds to the part derecognized (where the financial asset transferred
is an investment in debt instruments at fair value through other comprehensive income) is recognized in profit or loss.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
The Company adopts the valuation techniques applicable to the current situations and with sufficient data available and
support of other information, to determine the fair value of financial assets and financial liabilities. The Company classifies the
inputs used by the valuation techniques in the following levels and uses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or liability available at the date
of measurement;
(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly or indirectly. This category
includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in
inactive markets, observable inputs other than quoted prices (such as interest rate and yield curves observable during regular
intervals of quotation), and inputs validated by the market;
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock volatility that cannot be directly
observed or validated by observable market data, future cash flows from retirement obligations incurred in business combinations,
and financial forecasts made using own data.
The Company determines the impairment and assesses allowance for impairment of financial assets at amortized cost,
investments in debt instruments at fair value through other comprehensive income, contract assets, lease payments receivable, loan
commitments other than financial liabilities designated at fair value through profit or loss, and financial guarantee contracts other
than financial liabilities designated at fair value through profit or loss and financial liabilities arising as a result of the transfer of
financial assets not meeting the criteria for derecognition or continuing involvement in the financial assets transferred, on the basis
of expected credit losses.
Expected credit loss is the weighted average of credit losses on financial instruments taking into account the possibility of
default. Credit loss is the present value of the difference between all contractual cash flows receivable under the contract and
estimated future cash flows discounted at the original effective interest rate, i.e. the present value of all cash shortages, where the
Company’s purchased or originated financial assets that have become credit impaired are discounted at their credit-adjusted
effective interest rate.
With respect to purchased or originated financial assets that have become credit impaired, at the balance sheet date, the
Company recognizes an impairment loss equal to the cumulative amount of changes in lifetime expected credit losses since initial
recognition.
With respect to lease payments receivable, accounts receivable arising from transactions within the meaning of ASBE 14
“Revenue” and contract assets, the Company uses the simplified measurement method and recognizes an impairment loss equal to
the lifetime expected credit losses.
With respect to financial assets not using the measurement methods stated above, at each balance sheet date, the Company
assesses whether the credit risk has increased significantly since initial recognition, and recognizes an impairment loss equal to the
lifetime expected credit losses if the credit risk has increased significantly since initial recognition, or to the expected credit losses
within the next 12 months if the credit risk has not increased significantly since initial recognition.
The Company uses reasonable and supportable information, including forward-looking information, and compares the
possibility of default at the balance sheet date with the possibility of default upon initial recognition, to determine whether the
credit risk of the financial instruments has increased significantly since initial recognition.
At the balance sheet date, if the Company determines that a financial instrument has low credit risk, the Company assumes
that its credit risk has not increased significantly since initial recognition.
The Company assesses expected credit risk and measures expected credit losses of financial instruments individually or
collectively. When assessing the financial instruments collectively, the Company includes the financial instruments in different
groups according to their common risk characteristics.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
At each balance sheet date, the Company re-assesses the expected credit losses, with the amount of increase in or reversal of
impairment loss recognized in profit or loss as impairment losses or gains. With respect to a financial asset at amortized cost, its
carrying value recorded in the balance sheet is written off against the impairment loss. With respect to an investment in debt
instruments at fair value through other comprehensive income, the Company recognizes the impairment loss in other
comprehensive income, without reducing its carrying value.
Financial assets and financial liabilities are presented in the balance sheet separately, without offsetting each other. Financial
assets and financial liabilities are offset and presented on a net basis in the balance sheet only if: (i) the Company has a currently
enforceable legal right to offset the recognized amounts; and (ii) the Company has an intention to settle on a net basis, or realize
the assets and settle the liabilities simultaneously.
With respect to the transfer of financial assets not meeting the criteria for derecognition, the Company does not offset the
financial assets transferred against the relevant liabilities.
Standard for identifying and making provision of expected credit losses for accounts receivable and contract assets
according to credit risk characteristics
Group type Basis for grouping Method for measuring expected credit losses
Banker’s acceptance bills receivable
By reference to historical credit loss experience, and taking into
Commercial acceptance bills receivable account the current situations and prediction of future economic
Type of bills
conditions, calculate the expected credit losses according to the
Financial company acceptance bills default risk exposure and rate of lifetime expected credit loss.
receivable
By reference to historical credit loss experience, and taking into
account the current situations and prediction of future economic
Accounts receivable – aging group Age conditions, prepare a comparison table of the age of accounts
receivable and rate of expected credit loss, and calculate the
expected credit losses.
Accounts receivable – optical By reference to historical credit loss experience, and taking into
Business segment account the current situations and prediction of future economic
communication business group
conditions, calculate the expected credit losses according to the
Accounts receivable – conventional default risk exposure and rate of 12-month or lifetime expected
Business segment
vehicle business group credit loss.
By reference to historical credit loss experience, and taking into
account the current situations and prediction of future economic
Other receivables – aging group Age conditions, prepare a comparison table of the age of other
receivables and rate of expected credit loss, and calculate the
expected credit losses.
Other receivables – conventional By reference to historical credit loss experience, and taking into
Business segment
vehicle business group account the current situations and prediction of future economic
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Group type Basis for grouping Method for measuring expected credit losses
conditions, calculate the expected credit losses according to the
Other receivables – Optical
Business segment default risk exposure and rate of 12-month or lifetime expected
communication business group
credit loss.
By reference to historical credit loss experience, and taking into
account the current situations and prediction of future economic
Long-term receivables – conventional
Business segment conditions, calculate the expected credit losses according to the
vehicle business group
default risk exposure and rate of 12-month or lifetime expected
credit loss.
Accounts receivable Other receivables
Age
Expected credit loss rate(%) Expected credit loss rate(%)
Within 6 months (inclusive, the same below) 0.5 5
Over 3 years 100 100
The age of accounts receivable/other receivables is calculated from the date of initial recognition.
individually
With respect to the accounts receivable and contract assets whose credit risk is significantly different from that of the relevant
group, an allowance for expected credit losses is recognized individually.
Methods for recognition and accounting of expected credit losses of other receivables
Contract assets or contract liabilities are presented in the balance sheet according to the relationship between the relevant
performance obligations and payment by the customer. Contract assets and contract liabilities under the same contract are
presented on a net basis.
The right of the Company to payment that is unconditional, except for the passage of time, is presented as an account
receivable. The right of the Company to payment for goods already transferred to a customer is presented as a contract asset if that
right to payment is conditional on something other than the passage of time.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
The Company’s obligation to transfer goods to a customer in exchange for the consideration paid or payable by the customer
is presented as a contract liability.
Inventories include finished products or goods held for sale in the ordinary course of business, work in progress and materials
and goods consumed in the process of production or rendering of services.
The value of inventories dispatched is determined using the weighted average method at the end of the month in which they
were dispatched.
The perpetual inventory system is adopted.
(1) Low-value consumables
Low-value consumables are amortized using the immediate write-off method.
(2) Packing materials
Packing materials are amortized using the immediate write-off method.
(1) Recognition standard and method for provision of impairment for inventory
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. An amount equal to the cost
of an inventory in excess of its net realizable value is recognized as an inventory provision. The net realizable value of inventories
held directly for sale is the estimated selling price of such inventories less the estimated selling expenses and related taxes in the
ordinary course of business. The net realizable value of inventories to be further processed is the estimated selling price of finished
goods less the estimated cost of completion, estimated selling expenses and related taxes in the ordinary course of business. At the
balance sheet date, if part of an inventory has a contract price while the remaining part thereof does not have a contract price, the
net realizable value is determined separately, which is compared with their cost, to determine the amount of the inventory
provision recognized or reversed (as applicable).
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require unanimous consent of the parties sharing control. Significant influence is the power to participate in the
financial and operating policy-making of an entity, but is not control or joint control over those policies.
(1) For an equity investment acquired through a business combination involving entities under common control, if the
acquirer pays consideration for the business combination by cash, transfer of non-monetary assets, assumption of liabilities or
issuance of equity securities, the initial investment cost of the long-term equity investment is the Company’s share of the carrying
value of the owners’ equity of the acquiree in the consolidated financial statements of the ultimate controller at the combination
date. The difference between: (i) the initial investment cost of the long-term equity investment; and (ii) the carrying value of the
consideration paid for the combination or the total par value of the shares issued (as applicable) is treated as an adjustment to the
capital reserve. In case the capital reserve is not sufficient to absorb the difference, the remaining balance is charged against the
retained earnings.
If a business combination is effected through multiple transactions by steps that constitute a package deal, the Company
accounts for such transactions as one deal to gain control. If such transactions constitute a package deal, the Company accounts for
such transactions as one transaction to acquire control. If such transactions do not constitute a package deal, the initial investment
cost is the Company’s share of the carrying value of the owners’ equity of the acquiree in the consolidated financial statements of
the ultimate controller at the combination date; and the difference between: (i) the initial investment cost of the long-term equity
investment at the combination date; and (ii) the sum of the carrying value of long-term equity investment before the combination
and the carrying value of the consideration paid for acquisition of the additional shares at the combination date is treated as an
adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the difference, the remaining balance is
charged against the retained earnings.
(2) For an equity investment acquired through a business combination involving entities not under common control, the initial
investment cost is the fair value of the aggregate consideration paid at the date of acquisition.
With respect to a long-term equity investment acquired through a business combination involving entities not under common
control that is effected through multiple transactions by steps, the accounting thereof in the standalone financial statements is
different from that in the consolidated financial statements as stated below:
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
and the additional investment cost incurred is recorded as the initial investment cost of the equity investment changed into the cost
method.
transactions constitute a package deal, the Company accounts for such transactions as one transaction to acquire control. If such
transactions do not constitute a package deal, the equity held in the acquiree prior to the acquisition date is remeasured at its fair
value at the acquisition date, with the difference between its fair value and carrying value recognized as an investment income for
the current period; if the equity held in the acquiree prior to the acquisition date involves other comprehensive income under the
equity method, such other comprehensive income is transferred to the income for the period in which the acquisition date falls,
except for other comprehensive income arising from remeasurement of changes in net liabilities or net assets of defined benefit
plans.
(3) For an equity investment not acquired through business combination, the initial investment cost is the purchase price
actually paid if it is acquired by cash, or the fair value of the equity securities issued if it is acquired through issuance of equity
securities, or in accordance with ASBE 12 “Debt Restructuring” if it is acquired through debt restructuring, or ASBE 7 “Exchange
of Non-monetary Assets” if it is acquired through exchange of non-monetary assets.
Long-term equity investments in investees over which the Company exercises control are accounted for using the cost method.
Long-term equity investments in associates and joint ventures are accounted for using the equity method.
(1) Criteria for determining a package deal
Where the Company loses control over a subsidiary due to the disposal of equity investment in the subsidiary through
multiple transactions by steps, the Company determines whether such transactions constitute a package deal taking into account
the transaction contract terms, consideration received, the transferee of the equity sold, method of disposal, time of disposal and
other information in respect of each step. If the terms, conditions and financial effect of such transactions fall under one or more of
the circumstances set forth below, such transactions are accounted for as a package deal generally:
transactions.
(2) Accounting treatment of transactions not constituting a package deal
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
The difference between the carrying value of the equity disposed of and the disposal proceeds actually received is recognized
in profit or loss. If the remaining equity empowers the Company to exercise significant influence or joint control over the investee,
the remaining equity is accounted for using the equity method; if the remaining equity does not empower the Company to exercise
control, joint control or significant influence over the investee, the remaining equity is accounted for in accordance with ASBE 22
“Recognition and Measurement of Financial Instruments”.
Before the loss of control, the difference between the disposal proceeds and the Company’s share of the net assets of the
subsidiary corresponding to the long-term equity investment disposed of as calculated continuously from the acquisition date or
combination date is treated as an adjustment to the capital reserve (capital premium). In case the capital premium is not sufficient
to absorb the difference, the remaining balance is charged against the retained earnings.
Upon loss of control, the remaining equity is remeasured at its fair value at the date of loss of control. The sum of the
consideration received from the disposal of the equity and the fair value of the remaining equity, net of the Company’s share of the
net assets of the subsidiary as calculated continuously from the acquisition date or combination date according to the original
shareholding ratio, is included in the investment income for the period during which the control was lost, and charged against
goodwill. Other comprehensive income related to the equity investment in the subsidiary is transferred to the investment income
for the period during which the control was lost.
(3) Accounting treatment of transactions constituting a package deal
The Company accounts for such transactions as one deal to dispose of and lose control over the subsidiary; however, in the
standalone financial statements, the difference between the proceeds from each disposal before loss of control and the carrying
value of the long-term equity investment corresponding to the investment disposed of is recognized in other comprehensive
income, which is wholly transferred to profit or loss in the period during which the control was lost.
The Company accounts for such transactions as one deal to dispose of and lose control over the subsidiary; however, in the
consolidated financial statements, the difference between the proceeds from each disposal before loss of control and the
Company’s share of the net assets of the subsidiary corresponding to the investment disposed of is recognized in other
comprehensive income, which is wholly transferred to profit or loss in the period during which the control was lost.
Measurement model for investment property
Measured at cost
Method of depreciation or amortization
using the same method as fixed assets and intangible assets.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(1) Criteria for recognition
Fixed assets are tangible assets held for the production of goods, rendering of service, lease or operation and management
with a service life of more than one accounting year. A fixed asset is recognized if the economic benefits relating to it are very
likely to flow to the Company and its cost can be reliably measured.
(2) Depreciation
Annual rate of
Type Method of depreciation Estimated service life Rate of residual value
depreciation
Buildings and
Straight line method 15-30 0-5 3.33-6.67%
structures
Machinery and
Straight line method 5-20 0-5 5.00-20.00%
equipment
Transportation
Straight line method 5-10 0-5 10.00-20.00%
equipment
Office equipment and
Straight line method 3-12 0-5 8.33-33.33%
others
its cost can be reliably measured. Construction in progress is measured at the actual cost incurred before it is completed and ready
for the intended use.
construction in progress that is ready for intended use but the final settlement of which has not yet been completed is transferred to
fixed assets at estimated value first, and after the completion of the final settlement, the estimated value is adjusted according to
the actual cost, without adjusting the accumulated depreciation.
Category Criteria and time for transfer of construction in progress to fixed assets
Buildings and The main construction project and supporting project have been substantially completed, reached the
structures predefined design requirements, and inspected and accepted
Machinery and
Meet the design requirements or agreed standards after installation and commissioning
equipment
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized
as part of the cost of the asset when they meet the condition for capitalization. Other borrowing costs are expensed when they are
incurred and recognized in profit or loss.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(1) A borrowing cost is capitalized when all of the following conditions are satisfied: (i) the expenditures on the asset have
already been incurred; (ii) the borrowing cost has already been incurred; and (iii) the acquisition, construction or production
activities necessary to prepare the asset for its intended use or sale have already commenced.
(2) Capitalization of borrowing costs is suspended during the period of abnormal interruption of acquisition, construction or
production of a qualifying asset which lasts for more than three consecutive months. The borrowing costs incurred during the
period of suspension are recognized as expenses for the current period. The capitalization of borrowing costs is suspended until the
resumption of acquisition, construction or production activities.
(3) Capitalization of borrowing costs ceases when a qualifying asset acquired, constructed or produced gets ready for its
intended use or sale.
For borrowings obtained specially for the acquisition, construction or production of a qualifying asset, the amount of
capitalization of the borrowing costs is the cost of the borrowings actually incurred in the current period (including amortized
discount or premium determined using the effective interest method) less the interest income from the part of borrowings that has
not yet been utilized and is deposited in banks or investment income from temporary investment of the borrowings. For general
borrowings occupied for the acquisition, construction or production of a qualifying asset, the amount of borrowing costs eligible
for capitalization is determined by multiplying the weighted average of the excess of cumulative expenditures on the asset over the
special-purpose borrowings by the capitalization rate of the general borrowings occupied.
(1) Service life and basis for determination of service life, estimates, method of amortization or review
procedure
which the economic benefits related to the intangible asset are expected to be realized, or if that pattern cannot be determined
reliably, using the straight line method as follows:
Item Service life and basis for determination of service life Method of amortization
Determine the service life to be 50 years according to
Land use right Straight line method
the period for title registration
Determine the service life to be 2-5 years according
Software use right Straight line method
to the expected beneficial period
Determine the service life to be 3-5 years according
Unpatented technology Straight line method
to the expected beneficial period
Determine the service life to be 10 years according to
Trademarks and patents Straight line method
the expected beneficial period
Determine the service life to be 10 years according to
Customer resources Straight line method
the expected beneficial period
Intangible asset with indefinite service life is not amortized, but its service life is reviewed annually.
(2) Scope and accounting treatment of research and development (R&D) expenses
(1) Labor costs
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Labor costs comprise the wages, salaries, basic pension insurance, basic medical insurance, unemployment insurance,
worker’s compensation insurance, maternity insurance and housing provident fund contributions paid to or for the R&D personnel,
and service fees of the outsourced R&D personnel.
With respect to the R&D personnel serving a number of R&D projects concurrently, their labor costs are allocated to the
relevant R&D projects on a pro-rata basis according to the record of working hours spent by them in such R&D projects as
provided by the administrative department.
With respect to the Company’s own R&D personnel and outsourced R&D personnel who are directly engaged in R&D
activities and also engaged in non-R&D activities, their labor costs actually incurred are allocated between R&D expenses and
production and business expenses on a pro-rata basis in proportion to the percentage of working hours spent by them on different
posts as recorded, or otherwise reasonably.
(2) Direct costs
Direct costs refer to the costs actually incurred by the Company in connection with R&D activities, including (i) costs of
materials, fuels and powers directly consumed; (ii) costs of development and fabrication of molds and process equipment used in
pilot trials and trial production, purchasing costs of samples, prototypes and general testing methods not classified as fixed assets,
and inspection costs of trial products; and (iii) operation, maintenance, calibration, inspection, testing, repair and other costs of
instruments and equipment used in R&D activities.
(3) Depreciation expenses and long-term deferred expenses
Depreciation expenses refer to the depreciation expenses of instruments, equipment and buildings used in R&D activities.
With respect to the instruments, equipment and buildings used in both R&D activities and non-R&D activities, the
depreciation expenses actually incurred are allocated between R&D expenses and production and business expenses according to
the actual working hours and area used as recorded, or otherwise reasonably.
Long-term deferred expenses refer to the long-term deferred expenses incurred in the alteration, modification, renovation and
repair of R&D facilities, which are recorded according to the amounts actually spent, and amortized on a straight line basis over
the defined period.
(4) Amortization expenses of intangible assets
Amortization expenses of intangible assets refer to the amortization expenses of software, intellectual properties, and non-
patented technologies (know-how, licenses, designs, computing methods, etc.) used in R&D activities.
(5) Design costs
Design costs refer to the costs incurred in the design of processes, technical specifications, rules of operation and operating
features in connection with the concept, development and manufacturing of new products and new processes, including the costs
of creative design activities conducted for the purpose of developing innovative, creative and breakthrough products.
(6) Equipment commissioning costs and testing costs
Equipment commissioning costs refer to the costs incurred during the equipment preparation phase of R&D activities,
including the costs of developing special-purpose production machines, changing production and quality control procedures,
developing new approaches and standards, etc.
The costs incurred for general equipment preparation and industrial engineering in connection with large-scale mass and
commercial production are excluded from the scope of aggregation.
Testing costs include clinical trial costs for the development of new drugs, field trial costs for exploration and development
technologies, field experiment costs, etc.
(7) Outsourced R&D expenses
Outsourced R&D expenses refer to the expenses of R&D activities that the Company engages external entities or individuals
at home or abroad to conduct, provided that the results of such R&D activities will be owned by the Company and such R&D
activities are closely related to the primary business of the Company.
(8) Other expenses
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Other expenses refer to the expenses that are not set forth above and directly related to R&D activities, including the expenses
of technical documents and data, material translation, advisors and consultants, high and new technology R&D insurance, retrieval,
verification, evaluation, appraisal and acceptance inspection of R&D achievements, application, registration and agency service in
respect of intellectual properties, meetings, travel, communication, etc.
are incurred. Expenditures on an internal R&D project at the development phase are recognized as an intangible asset if: (i) it is
technically feasible to complete the intangible asset so that it will be available for use or sale; (ii) it is intended to complete the
intangible asset so that it will be available for use or sale; (iii) the pattern in which the intangible asset will generate economic
results can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself, or if it is to be
used internally, the usefulness of the intangible asset; (iv) there are sufficient technical, financial and other resources available to
complete the development activities and to use or sell the intangible asset; and (v) the expenditures attributable to the development
of the intangible asset can be reliably measured.
With respect to long-term equity investments, investment properties at cost, fixed assets, construction in progress, right-of-use
assets, intangible assets with a finite service life and other long-term assets, if there’s an indication of impairment at the balance
sheet date, the Company assesses their recoverable amount. Goodwill arising from business combinations and intangible assets
with an infinite service life are tested for impairment every year regardless of whether there’s an indication of impairment.
Goodwill is tested for impairment together with the relevant groups of assets or combinations of groups of assets.
If the recoverable amount of a long-term asset is less than its carrying value, the difference is measured as impairment loss on
the asset and recognized in profit or loss.
Long-term deferred expenses are expenses that have already been incurred but should be amortized over a period of more
than one year. Long-term deferred expenses are stated as the amount actually incurred, and equally amortized over the benefit
period or established period. If an item of long-term deferred expenses will not benefit the subsequent periods, the remaining
unamortized balance of the item is wholly transferred to profit or loss.
(1) Accounting treatment of short-term employee benefits
The short-term employee benefits actually incurred are recognized as liabilities in the accounting period during which
employee services are rendered, and included in profit or loss or the cost of related assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits are classified as defined contribution plans and defined benefit plans.
(1) In the accounting period during which employee services are rendered, the amount contributable as calculated according
to the defined contribution plan is recognized as liabilities and included in profit or loss or the costs of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
variables and financial variables, measure the obligation arising from the defined benefit plan and determine the period to which
the relevant obligation belongs. Meanwhile, discount the obligation arising from the defined benefit plan, in order to determine the
present value of the defined benefit plan obligation and the current service cost;
plan obligation by the fair value of the assets of the defined benefit plan is recognized as a net liability or asset of the defined
benefit plan. If the defined benefit plan has a surplus, the net assets of the defined benefit plan are measured at the lower of surplus
in the defined benefit plan and asset ceiling;
cost, net interest on the net liabilities or net assets of the defined benefit plan, and changes arising from remeasurement of the net
liabilities or net assets of the defined benefit plan, where the service cost and the net interest on the net liabilities or net assets of
the defined benefit plan are included in profit or loss or the cost of related assets, and the changes arising from remeasurement of
the net liabilities or net assets of the defined benefit plan are included in other comprehensive income, which will not be reversed
to profit or loss in subsequent periods, but may be transferred within the scope of equity.
(3) Accounting treatment of termination benefits
(1) When the Company can no longer withdraw the offer of termination benefits as a result of termination of employment or
redundancy; or (2) the Company recognizes the restructuring costs or expenses relating to payment of termination benefits,
whichever the earlier, the employee benefit liabilities arising from recognition of termination benefits are recognized in profit or
loss.
(4) Accounting treatment of other long-term employee benefits
Other long-term employee benefits are accounted for in accordance with the provisions applicable to defined contribution
plans if they are qualified as defined contribution plans, otherwise, are accounted for in accordance with the provisions applicable
to defined benefit plans. In order to simplify the accounting, the total net amount of the cost of employee benefits arising from the
defined benefit plans that is recorded as service cost, net interest on the net liabilities or net assets of the other long-term employee
benefits, changes arising from remeasurement of the net liabilities or net assets of the other long-term employee benefits and other
components is included in profit or loss or the cost of related assets.
product quality warranty, onerous contract or other contingencies, and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably measured.
obligations. The carrying value of provisions is reviewed at the balance sheet date.
Share-based payments include equity-settled share-based payment and cash-settled share-based payment.
(1) Equity-settled share-based payment
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
With respect to an equity-settled share-based payment that is granted in exchange for the services of employees, if the right
can be immediately exercised after the grant, at the date of the grant, the fair value of the equity instruments is included in the
relevant costs or expenses, and the capital reserve is adjusted accordingly; if the right may not be exercised until the vesting period
comes to an end or until the specified performance conditions are met, at each balance sheet date within the vesting period, the
services received in the current period are, based on the best estimate of the exercisable equity, included in the relevant costs or
expenses at the fair value of the equity instruments at the date of grant, and the capital reserve is adjusted accordingly.
An equity-settled share-based payment that is granted in exchange for the services of any other party is measured at fair value
at the date of receipt of such services if the fair value of such services can be reliably measured, or at the fair value of the equity
instruments at the date of receipt of such services if the fair value of such services cannot be reliably measured but the fair value of
the equity instruments can be reliably measured. The services are included in the relevant costs or expenses, and the owners’
equity is increased accordingly.
(2) Cash-settled share-based payment
With respect to a cash-settled share-based payment that is granted in exchange for the services of employees, if the right can
be immediately exercised after the grant, at the date of grant, the fair value of the liability undertaken by the Company is included
in the relevant costs or expenses, and the liabilities are increased accordingly; if the right may not be exercised until the vesting
period comes to an end or until the specified performance conditions are met, at each balance sheet date within the vesting period,
the services received in the current period are, based on the best estimate about the exercisable right, included in the relevant costs
or expenses and the corresponding liabilities at the fair value of the liability undertaken by the Company.
(3) Amendment and termination of share-based payment plans
If such amendment results in an increase in the fair value of the equity instruments granted, the Company recognizes a
corresponding increase in the services received according to the increase in the fair value of the equity instruments. If such
amendment results in an increase in the number of the equity instruments granted, the Company recognizes a corresponding
increase in the services received according to the fair value of the additional equity instruments granted. If the Company amends
the vesting conditions in a manner favorable to the employees, the Company will take into account the vesting conditions as
amended in the accounting thereof.
If such amendment results in a decrease in the fair value of the equity instruments granted, the Company continues to
recognize the services received based on the fair value of the equity instruments at the date of grant, without taking into account
the decrease in the fair value of the equity instruments. If such amendment results in a decrease in the number of the equity
instruments granted, the portion of the equity instruments reduced is deemed canceled. If the Company amends the vesting
conditions in a manner unfavorable to the employees, the Company will not take into account the vesting conditions as amended in
the accounting thereof.
If, during the vesting period, the Company cancels or settles any equity instruments granted (except for those canceled due to
failure to satisfy the vesting conditions), such cancellation or settlement is treated as an acceleration of vesting, and the amount
that would have been recognized in the remaining vesting period is recognized immediately.
Accounting policies for recognition and measurement of revenue disclosed by business type
At the contract commencement date, the Company assesses a contract to identify each single performance obligation included
in the contract and whether such performance obligation shall be satisfied over time or at a point in time.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
A performance obligation shall be satisfied over time if it meets one of the following conditions, otherwise, it shall be
satisfied at a point in time: (i) the customer simultaneously receives and consumes the economic benefits provided by the
Company’s performance; (ii) the customer can control the work in process created during the Company’s performance; or (iii) the
Company’s performance does not create the goods with an alternative use and the Company has an enforceable right to payment
for performance completed to date.
With respect to a performance obligation satisfied over time, the Company recognizes revenue over time by measuring the
progress toward complete satisfaction of that performance obligation. If the Company is unable to reasonably measure the progress
of a performance obligation, but expects to recover the costs incurred in satisfying the performance obligation, the Company
recognizes revenue only to the extent of the costs incurred until such time that it can reasonably measure the progress of the
performance obligation. With respect to a performance obligation satisfied at a point in time, the Company recognizes revenue
when the customer obtains control of the relevant goods or services. In determining whether the customer has obtained control of
any goods, the Company considers the following indicators: (i) the Company has a present right to payment for the goods, i.e. the
customer presently is obliged to pay for the goods; (ii) the Company has transferred the legal title to the goods to the customer, i.e.
the customer has the legal title to the goods; (iii) the Company has transferred physical possession of the goods to the customer, i.e.
the customer physically possesses the goods; (iv) the Company has passed the significant risks and rewards of ownership of the
goods to the customer, i.e. the customer has the significant risks and rewards of ownership of the goods; (v) the customer has
accepted the goods; and (vi) other indicators showing that the customer has obtained control of the goods.
(1) The Company measures revenue according to the transaction price allocated to each performance obligation. Transaction
price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the relevant goods or
services to a customer, excluding the amounts collected on behalf of third parties or expected to be returned to the customer.
(2) If a contract has any variable consideration, the Company determines the best estimate of the variable consideration
according to the expected value or the most likely amount, but the Company shall include in the transaction price some or all of an
amount of variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative
revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
(3) If a contract contains a significant financing component, the Company determines the transaction price according to the
amount that the customer would have paid for the goods or services if it had paid cash when it obtained control of the goods or
services. The difference between such transaction price and the contract consideration is amortized over the term of the contract
using the effective interest method.
(4) If a contract includes two or more performance obligations, at the contract commencement date, the Company allocates
the transaction price to each performance obligation on a relative standalone selling price basis.
Different methods of revenue recognition and measurement for the same business type that adopts different business models
The Company is primarily engaged in the sale of electronic circuit products, optical transceivers (including optical chips),
photoelectric display modules, precision components, and other products, the revenues from which constitute performance
obligations to be satisfied at a point in time. Revenue from sale of products on the domestic market is recognized when the
Company has delivered the products to the agreed place of delivery which has been accepted by the customer, has received or has
a present right to payment for the products, and it is probable that the economic benefits associated with the transaction will flow
to the Company. Revenue from sale of products on the overseas market is recognized when the products delivered by the
Company pursuant to the contract have been cleared through customs, and the Company has received the relevant export
declaration form and bill of lading, has received or has a present right to payment for the products, and it is probable that the
economic benefits associated with the transaction will flow to the Company.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Company will receive the government grants. Government grants in the form of monetary assets are measured at the amount
received or receivable. Government grants in the form of non-monetary assets are measured at fair value, or if their fair value is
unavailable, at a nominal amount.
Government grants related to assets are government grants which are offered for purchasing, constructing or otherwise
acquiring long-term assets as provided by the applicable government documents, or in the absence of such express provision in the
applicable government documents, whose primary condition is that the Company should purchase, construct or otherwise acquire
long-term assets. Government grants related to assets are offset against the carrying value of the relevant assets or recognized as
deferred income. Government grants related to assets recognized as deferred income are included in profit or loss over the service
life of the relevant assets on a reasonable and systemic basis. Government grants measured at nominal amount are directly
recognized in profit or loss. In case of a sale, transfer, retirement or damage of the relevant assets before the end of the intended
service life, the balance of the unallocated deferred income is transferred to profit or loss for the period in which the assets are
disposed of.
Government grants related to income are government grants other than those related to assets. Government grants related to
both assets and income where it is difficult to make a distinction between the portion related to assets and the portion related to
income are wholly classified as government grants related to income. Government grants related to income as compensation for
costs, expenses or losses to be incurred in subsequent periods are recognized as deferred income and in the period for recognizing
the relevant costs, expenses or losses, included in profit or loss or offset against the relevant costs. Government grants related to
income as compensation for costs, expenses or losses already incurred are directly included in profit or loss or offset against the
relevant costs.
relevant costs and expenses depending on the nature of economic business. Government grants not related to day-to-day operations
of the Company are recognized in non-operating revenues or expenses.
If the financial authority directly appropriates any interest subsidy to the Company, the interest subsidy is recognized as a
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
reduction in the borrowing cost.
asset or liability whose tax base can be determined according to the applicable tax law, the difference between its tax base and
carrying value, is recognized as a deferred tax asset or deferred tax liability according to the tax rate applicable to the period in
which the asset or liability is expected to be recovered or settled.
against which deductible temporary differences are deductible. At the balance sheet date, deferred tax assets not recognized in
previous periods are recognized if there’s conclusive evidence that it is probable that sufficient taxable income will be available in
future periods against which the deductible temporary differences are deductible.
longer probable that sufficient taxable income will be available in future periods to allow the benefit of the deferred tax assets to be
utilized. If it is probable that sufficient taxable income will be available, the amount of write-down is reversed.
income taxes arising from any: (i) business combination; or (ii) transaction or event directly recognized in owners’ equity.
has a legal right to settle current tax assets and current tax liabilities on a net basis; and (ii) the deferred tax assets and deferred tax
liabilities relate to income taxes levied by the same tax authority on either the same taxable entity or different taxable entities
which intend either to settle current tax assets and current tax liabilities on a net basis or to realize the assets and liabilities
simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be reversed.
(1) Accounting treatment of leases under which the Company is lessee
At the lease commencement date, a lease that has a lease term of 12 months or less and does not contain a purchase option is a
short-term lease. A lease of an asset with a low value when new is a lease of a low-value asset. Where the Company subleases or
expects to sublease a leased asset, the original lease is not classified as a lease of a low-value asset.
Except short-term leases and leases of low-value assets, at the lease commencement date, the Company recognizes right-of-
use assets and lease liabilities for the lease.
(1) Right-of-use assets
Right-of-use assets are initially measured at cost, which cost includes: (i) the amount of the lease liability initially measured;
(ii) any lease payments made at or before the commencement date, less any lease incentives received; (iii) any initial direct costs
incurred by the lessee; and (iv) estimated costs to be incurred by the lessee in dismantling and removing the lease asset, restoring
the site on which it is located or restoring the lease asset to the condition required by the terms and conditions of the lease.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
The Company depreciates the right-of-use assets using the straight-line method. If it is reasonable to be certain that the
ownership of a lease asset can be acquired by the end of the lease term, the Company depreciates the right-of-use asset over its
remaining service life. Otherwise, the Company depreciates the right-of-use asset over the shorter of the lease term and its
remaining service life.
(2) Lease liabilities
At the lease commencement date, the Company measures a lease liability at the present value of the lease payments that have
not been paid at that date. The present value of lease payments is determined using the interest rate implicit in the lease as the
discount rate. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used. The difference between the
lease payments and their present value is unrecognized financing costs. Interest expenses are measured for each period within the
lease term using the discount rate for determining the present value of lease payments, and recognized in profit or loss. Variable
lease payments not included in the measurement of lease liabilities are recognized in profit or loss in the period during which they
are incurred.
At the lease commencement date, if there are changes in the in-substance fixed lease payments, amounts expected to be
payable under residual value guarantee, the index or rate used to determine the lease payments, the result of an assessment of
purchase option, renewal option or termination option or the actual exercise of such options, the Company re-measures the lease
liability based on the present value of lease payments as adjusted, and adjusts the carrying value of the right-of-use assets
accordingly. If the carrying value of the right-of-use asset is reduced to zero, but the lease liability needs to be further reduced, the
balance is recognized in profit or loss.
(3) Sale and leaseback
In accordance with ASBE 14 “Revenue”, the Company assesses and determines whether the transfer of any asset in a sale and
leaseback transaction should be accounted for as a sale of that asset.
If the transfer of an asset is accounted for as a sale of the asset, the Company measures the right-of-use asset arising from the
leaseback at the proportion of the original carrying value of the asset that relates to the right of use retained by the Company.
Accordingly, the Company recognizes only the amount of any gain or loss that relates to the rights transferred to the lessor.
Otherwise, the Company continues the recognition of the transferred asset, and recognizes a financial liability equal to the
amount of transfer proceeds in accordance with ASBE 22 “Financial Instruments: Recognition and Measurement” at the same time.
(2) Accounting treatment of leases under which the Company is lessor
At the lease commencement date, the Company classifies a lease that transfers substantially all the risks and rewards
incidental to ownership of a lease asset to the lessee as a finance lease, and all other leases as operating leases.
(1) Operating lease
Lease receipts are recognized as lease income using the straight-line method over the lease term. Initial direct costs incurred
are capitalized, amortized on the same basis as the recognition of lease income, and recognized in profit or loss by installments.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Variable lease payments related to the operating lease which are not included in the lease receipts are recognized in profit or loss in
the period during which they are incurred.
(2) Finance lease
At the lease commencement date, the Company recognizes the finance lease payments receivable based on the net investment
in the lease (equal to the sum of unguaranteed residual value and the present value of lease receipts that are not received at the
lease commencement date and discounted using interest rate under the lease), and derecognizes the assets held under the finance
lease. The Company calculates and recognizes interest income using the interest rate implicit in the lease over the lease term.
Variable lease payments that are not included in the measurement of the net investment in a lease are recognized in profit or
loss when they are incurred.
(3) Sale and leaseback
In accordance with ASBE 14 “Revenue”, the Company assesses and determines whether the transfer of any asset in a sale and
leaseback transaction should be accounted for as a sale of that asset.
If the transfer of an asset is accounted for as a sale of the asset, the Company accounts for the purchase of assets in
accordance with other applicable standards, and accounts for the lease of assets in accordance with ASBE 21 “ Leases”.
Otherwise, the Company does not recognize the transferred asset, instead, recognizes a financial asset equal to the amount of
transfer proceeds in accordance with ASBE 22 “Financial Instruments: Recognition and Measurement”.
(1) A hedge includes a fair value hedge/cash flow hedge/hedge of a net investment in a foreign operation.
(2) A hedging relationship qualifies for hedge accounting if all of the following conditions are met: 1) the hedging
relationship consists only of eligible hedging instruments and eligible hedged instruments; 2) at the commencement of the hedge
there is formal designation of hedging instruments and hedged item, and documentation of the hedging relationship and the
Company’s risk management objective and strategy for undertaking the hedge; and 3) the hedging relationship meets the hedging
effectiveness requirements.
The Company recognizes that the hedging relationship meets effectiveness requirements if all of the following conditions are
met: 1) there is an economic relationship between the hedged item and the hedging instruments; 2) the effect of credit risk does not
dominate the value changes that result from the economic relationship between the hedged item and the hedging instruments; and
hedges to the number of hedging instruments that the Company actually uses to hedge such hedged item, but does not reflect an
imbalance between the weightings of the hedged item and the hedging instrument.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
The Company assesses whether a hedging relationship meets the hedge effectiveness requirements at commencement and on
an ongoing basis. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the
risk management objective for that designated hedging relationship remains the same, the hedging relationship will be rebalanced.
(3) Hedge accounting treatment
① The gain or loss on a hedging instrument is recognized in profit or loss (or other comprehensive income, if the hedging
instrument hedges a non-trading equity instrument (or a component thereof) at fair value through other comprehensive income).
② The gain or loss on a hedged item arising from risk exposure is recognized in profit or loss, with a corresponding
adjustment to the book balance of the hedged item not measured at fair value. If the hedged item is a financial asset (or a
component thereof) that is measured at fair value through other comprehensive income in accordance with Article XVIII of ASBE
recognized in profit or loss, without adjusting its book balance which has already been measured at fair value; if the hedged item is
a non-trading equity instrument (or a component thereof) for which the Company has elected to present changes at fair value
through other comprehensive income, the gain or loss arising from the risk exposure on the hedged item is recognized in other
comprehensive income, without adjusting its book balance which has already been measured at fair value.
When a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change in fair value of
the hedged item subsequent to its designation is recognized as an asset or a liability with a corresponding gain or loss recognized in
profit or loss. When a firm commitment is performed to acquire an asset or assume a liability, the initial book balance of the asset
or the liability is adjusted to include the cumulative change in fair value of the hedged item that was previously recognized.
For a hedged item that is a financial instrument (or a component thereof) measured at amortized cost, any adjustment on the
book balance of the hedged item is amortized to profit or loss based on a recalculated effective interest rate at the date that
amortization begins. For a financial asset (or a component thereof) that is a hedged item and measured at fair value through other
comprehensive income in accordance with Article XVIII of ASBE 22 “Financial Instruments: Recognition and Measurement”, the
cumulative gain or loss previously recognized thereon is amortized in the same manner, and recognized in profit or loss, without
adjusting its book balance.
① The portion of the gain or loss on a hedging instrument that is determined to be an effective hedge is recognized in other
comprehensive income as cash flow hedge reserve, while the ineffective portion is recognized in profit or loss. The cash flow
hedge reserve is recognized at the lower of the following (in absolute amount): A. the cumulative gain or loss on the hedging
instrument from the commencement of the hedge; B. the cumulative change in the present value of the estimated future cash flows
of the hedged item from the commencement of the hedge.
② If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, or
a hedged forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair value
hedge accounting is applied, the Company transfers out the amount of cash flow hedge reserve previously recognized in other
comprehensive income, and includes it in the initial cost of the asset or the liability.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
③ For other cash flow hedges, the amount of cash flow hedge reserve previously recognized in other comprehensive income
is transferred to profit or loss in the same period the hedged forecast transaction affects profit or loss.
The portion of the gain or loss on a hedging instrument that is determined to be an effective hedge is recognized in other
comprehensive income, and reclassified from other comprehensive income into profit or loss on the disposal of the foreign
operation, while the ineffective portion is recognized in profit or loss.
When the Company repurchases its shares for the purpose of reducing its registered capital, rewarding its employees or
otherwise, if the purchased shares are to be held as treasury shares, the treasury shares are recorded at the amount actually paid and
the relevant filing procedures are performed; if the repurchased shares are to be retired, the difference between the total book value
of the shares retired and the amount actually paid therefore is recognized as a reduction in capital reserve, and if the capital reserve
is not sufficient to absorb the difference, the remaining balance is charged against the retained earnings. If the repurchased shares
are granted to the employees as equity-settled share-based payments, the purchase price paid by the employees upon exercise of
their rights is recognized as a reduction in the cost of the relevant treasury shares vested in the employees and capital reserve (other
capital reserve) accumulated within the vesting period, with a corresponding adjustment to capital reserve (share premium).
(1) Changes in significant accounting policies
□ Applicable N/A
(2) Changes in significant accounting estimates
□ Applicable N/A
(3) Adjustment of the opening balance of related financial statement items due to the initial adoption of new accounting
standards since 2026
□ Applicable N/A
VI. Taxation
Category of tax Tax base Tax rate
The output tax is calculated based on
revenue from sales of goods or rendering
Value-added tax of services in accordance with the tax
Company’s overseas subsidiaries
law, net of the input tax deductible in the
current period
Urban maintenance and construction tax Amount of turnover tax actually paid 5% or 7% (China)
Enterprise income tax Amount of taxable income
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Category of tax Tax base Tax rate
If levied on the basis of price, 1.2% *
Property tax 1.2% or 12% (China)
if levied on the basis of rental, 12% of
the lease income
Education surcharge Amount of turnover tax actually paid 3% (China)
Local education surcharge Amount of turnover tax actually paid 2% (China)
Different rates of enterprise income tax applicable to the taxpayers:
Taxpayer Income tax rate
The Company, Mutto Optronics Technology Co., Ltd., MFLEX Yancheng Co.,
Ltd., Yancheng Dongshan Precision Manufacturing Co., Ltd., Suzhou RF Top
Electronic Communication Co., Ltd., Suzhou Dongdai Electronic Technology
Co., Ltd., Suzhou Yongchuang Communication Technology Co., Ltd., Suzhou
Jebson Intelligent Technology Co., Ltd., Suzhou Dongyue New Energy 15.00%
Technology Co., Ltd., Yancheng Dongchuang Precision Manufacturing Co.,
Ltd., Suzhou Dongshan Display Inc., Source Photonics (Chengdu) Co., Ltd.,
Jiangsu Source Communication Technology Co., Ltd., and Dongguan Dongshan
Precision Manufacturing Co., Ltd.
HongKong Dongshan Precision Union Opoelectronic Co. Limited and other
companies incorporated in Hong Kong
Mutto Optronics Group Limited, The Dii Group (BVI) Co. Limited, Source
Photonics Holdings (Cayman) Limited
MFLEX Delaware, Inc., Multi-Fineline Electronix, Inc. (hereinafter referred to Federal corporate income tax rate, 21%; state
as MFLEX), and other companies incorporated in the United States corporate income tax rate, 0.75%-8.84%
Multi-Fineline Electronix Singapore Pte. Ltd. and other companies incorporated
in Singapore
Multek Technologies Limited 15% (enjoying an 80% tax exemption)
Multek Technology Sweden AB 20.6% (Sweden)
Multek Technology Malaysia SDN.BHD 24% (Malaysia)
DSBJ Mexico, S.DER.L.DEC.V. and other companies in Mexico 30.00%
Multi-Fineline Electronic (Thailand) Co., Ltd., Source Photonics Co., Ltd. 20.00%
Source Photonics (Macau) Commercial Offshore Limited 12.00%
Companies incorporated in Hungary 9.00%
Companies incorporated in Germany 30.88%
Companies incorporated in Portugal 21.50%
Companies incorporated in Morocco 21.50%
Companies incorporated in Slovakia 24.00%
Companies incorporated in Czech Republic 21.00%
Companies incorporated in Romania 16.00%
Other taxpayers not listed above 25.00%
Ke Fa Huo (2016) No. 32) and Guidelines for the Accreditation of High and New Technology Enterprises (Guo Ke Fa Huo (2016)
No. 195), Suzhou Dongdai Electronic Technology Co., Ltd., Suzhou Yongchuang Communication Technology Co., Ltd., Suzhou
Jebson Intelligent Technology Co., Ltd., Source Photonics (Chengdu) Co., Ltd., and Jiangsu Source Communication Technology
Co., Ltd. passed the qualification review of high and new technology enterprises with a term of three years from 2023 to 2026, and
therefore are subject to an enterprise income tax rate of 15% for the current period.
Ke Fa Huo (2016) No. 32) and Guidelines for the Accreditation of High and New Technology Enterprises (Guo Ke Fa Huo (2016)
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
No. 195), Suzhou Dongyue New Energy Technology Co., Ltd. and Yancheng Dongchuang Precision Manufacturing Co., Ltd.
passed the qualification review of high and new technology enterprises with a term of three years from 2024 to 2027, and therefore
are subject to an enterprise income tax rate of 15% for the current period.
Ke Fa Huo (2016) No. 32) and Guidelines for the Accreditation of High and New Technology Enterprises (Guo Ke Fa Huo (2016)
No. 195), the Company and its subsidiaries including Mutto Optronics Technology Co., Ltd., Yancheng Dongshan Precision
Manufacturing Co., Ltd., MFLEX Yancheng Co., Ltd., Suzhou Dongshan Display Inc., Suzhou RF Top Electronic
Communication Co., Ltd., and Dongguan Dongshan Precision Manufacturing Co., Ltd. passed the qualification review of high and
new technology enterprises with a term of three years from 2025 to 2028, and therefore are subject to an enterprise income tax rate
of 15% for the current period.
Act, and as a global Class I company incorporated in Mauritius but operating abroad, enjoys an 80% tax exemption, so its effective
corporate income tax rate is 3%. From July 1, 2025 to June 30, 2028, enterprises entitled to the preferential tax rate and achieving
annual taxable income of over MUR 24.00 million shall pay an additional fair share contribution tax at 2%.
the Policy on the Additional Pre-tax Deduction of Research and Development Expenses (Announcement No. 7 of 2023 by the
Ministry of Finance and State Taxation Administration), if an enterprise’s R&D expenses actually incurred during R&D activities
are not recognized in profit or loss for creation of intangible assets, on the basis of actual deduction as specified, from January 1,
Eurocast Delle, Eurocast Chateauroux, and Eurocast Reyrieux located in France are entitled to the policy of offsetting taxes against
R&D expenditures. R&D expenditures that may be offset include: salaries of R&D personnel and technicians, depreciation of
assets related to R&D, expenses for R&D outsourcing, patent-related expenditures, etc. The tax credit is calculated as follows: the
eligible R&D expenditures in the year may be offset at 30% for the portion within EUR 10.00 million and at 5% for the portion
over EUR 10.00 million; the tax not fully offset in the year may be carried over during the effective period of the policy.
for Value-added Taxes of Advanced Manufacturing Enterprises (Announcement No. 43 of 2023), from January 1, 2023 to
December 31, 2027, advanced manufacturing enterprises are allowed to deduct an additional 5% of the deductible input tax
amount from the payable VAT amount.
Pursuant to the Notice on Allowing Tax Rebate for Water, Electricity, and Gas Consumption in Export Processing Areas (Guo
Shui Fa [2002] No. 116) released by the State Taxation Administration, Source Photonics (Chengdu) Co., Ltd. is entitled to the tax
rebate policy at 13% for the water, electricity, and gas consumption in the export processing area.
Pursuant to the Value-added and Non-value-added Business Tax Act of Taiwan, China, Source Photonics Co., Ltd. is subject
to value-added business tax for the excess of the output tax over the input tax, where the input tax may offset against the output tax.
The prevailing value-added business tax rate is 5%, while goods sold overseas (exported) are entitled to the tax rate of zero.
Meanwhile, for the over payment of business taxes for goods or services entitled to zero tax rate, for acquisition of fixed assets,
and for acquisition, transfer, dissolution, or request for de-registration, the tax payer may request tax rebate, and the tax will be
refunded after being verified by the competent tax authority.
Pursuant to the Implementation Measures for the Interim Regulations of the People’s Republic of China on Value-added Tax,
where the goods manufactured by a domestic (foreign) manufacturing enterprise holding an export license are exported by itself or
through a foreign trade agency, such goods are entitled to tax exemption and tax rebate unless otherwise provided.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
VII. Notes to items of the consolidated financial statements
In RMB
Item Closing balance Opening balance
Cash on hand 785,509.81 620,829.32
Bank deposits 7,042,092,700.67 6,104,101,796.83
Other cash and bank balances 1,749,873,584.58 1,545,560,882.95
Total 8,792,751,795.06 7,650,283,509.10
Incl.: Total amounts deposited
abroad
In RMB
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 796,622,579.21 201,553,860.61
Incl.:
Investments in equity instruments 592,933,513.78 124,912,226.68
Derivatives 48,689,065.43 65,126,316.01
Wealth management products 155,000,000.00 11,515,317.92
Incl.:
Total 796,622,579.21 201,553,860.61
(1) Notes receivable by category
In RMB
Item Closing balance Opening balance
Commercial acceptance bills 84,355.48
Total 84,355.48
(2) Accounts receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Book balance Book balance
Type accounts Carrying accounts Carrying
Ratio of value Ratio of value
Amount % Amount Amount % Amount
provision provision
Incl.:
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Allowance
recognized 84,779.38 100.00% 423.90 0.50% 84,355.48
collectively
Incl.:
Incl.:
Commercia
l 84,779.38 100.00% 423.90 0.50% 84,355.48
acceptance
bills
Total 84,779.38 100.00% 423.90 0.50% 84,355.48
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
□ Applicable N/A
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
Changes in the current period
Opening
Type Recovered or Closing balance
balance Recognized Written off Others
reversed
Allowance
recognized 423.90 423.90
collectively
Total 423.90 423.90
(1) Accounts receivable by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 10,626,070,374.61 9,821,142,620.45
Within 6 months 10,500,199,854.98 9,694,632,577.94
Over 3 years 119,968,455.79 257,853,544.65
Over 5 years 67,052,976.74 188,704,264.19
Total 10,849,471,135.08 10,200,816,512.14
(2) Accounts receivable by method of recognition of allowance for doubtful accounts
In RMB
Type Closing balance Opening balance
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Allowance for Allowance for
Book balance Book balance
doubtful accounts doubtful accounts
Carrying Carrying
Ratio of value Ratio of value
Amount % Amount provisio Amount % Amount provisio
n n
Allowan
ce
recogniz 160,523, 159,550, 972,408. 176,594, 163,612, 12,981,7
ed 258.79 850.33 46 186.18 411.89 74.29
individu
ally
Allowan
ce
recogniz 91,592,2 244,459, 9,779,76
ed 63.71 040.19 3,285.77
collectiv
ely
Total 71,135.0 100.00% 2.31% 28,021.0 16,512.1 100.00% 4.00%
Accounts receivable with allowance for doubtful accounts recognized collectively by category name: aging group, conventional
vehicle business group, and optical communication business group
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Aging group 6,220,637,966.07 64,467,821.61 1.04%
Conventional vehicle business
group
Optical communication
business group
Total 10,688,947,876.29 91,592,263.71
Accounts receivable with allowance for doubtful accounts recognized collectively by category name: Aging group
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Within 6 months 6,104,992,318.67 30,524,961.68 0.50%
Over 3 years 26,069,431.79 26,069,431.79 100.00%
Total 6,220,637,966.07 64,467,821.61
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Changes in the current period
Opening
Type Recovered or Closing balance
balance Recognized Written off Others
reversed
Allowance
recognized 163,612,411.89 -6,918.07 235,836.62 -3,818,806.87 159,550,850.33
individually
Allowance
recognized 244,459,040.19 -2,968,317.72 148,237,747.51 -1,660,711.25 91,592,263.71
collectively
Total 408,071,452.08 -2,975,235.79 235,836.62 148,237,747.51 -5,479,518.12 251,143,114.04
(4) Accounts receivable actually written off in the current period
In RMB
Item Amount written off
Accounts receivable actually written off 148,237,747.51
(5) The top 5 debtors in terms of closing balance of accounts receivable and contract assets
In RMB
Closing balance of
Closing % of total closing
Total closing balance of allowance for doubtful
Company Closing balance of balance of balance of accounts
accounts receivable and accounts receivable and
name accounts receivable contract receivable and
contract assets impairment of contract
assets contract assets
assets
Top 1 1,204,599,301.16 1,204,599,301.16 11.10% 3,928,102.78
Top 2 640,703,438.78 640,703,438.78 5.91% 15,256,239.49
Top 3 606,669,029.86 606,669,029.86 5.59% 3,197,456.86
Top 4 518,494,572.86 518,494,572.86 4.78% 2,584,412.72
Top 5 510,893,684.90 510,893,684.90 4.71% 2,709,112.78
Total 3,481,360,027.56 3,481,360,027.56 32.09% 27,675,324.63
(1) Accounts receivable financing by category
In RMB
Item Closing balance Opening balance
Banker’s acceptance bills 263,570,165.06 285,277,607.54
Total 263,570,165.06 285,277,607.54
(2) Accounts receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Book balance Book balance
Type accounts Carrying accounts Carrying
Ratio of value Ratio of value
Amount % Amount Amount % Amount
provision provision
Incl.:
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Allowance
recognized 100.00% 100.00%
collectively
Incl.:
Banker’s
acceptance 100.00% 100.00%
bills
Total 100.00% 100.00%
(4) Accounts receivable financing pledged at the end of the current period
In RMB
Item Amount pledged at the end of the period
Banker’s acceptance bills 9,050,787.13
Total 9,050,787.13
(5) Accounts receivable financing already endorsed or discounted but not yet become due at the balance
sheet date
In RMB
Amount derecognized at the end of the Amount not derecognized at the end of
Item
period the period
Banker’s acceptance bills 1,099,579,224.79
Total 1,099,579,224.79
(8) Other information
As the acceptors of banker’s acceptance bills are commercial banks that have high credit ratings, banker’s acceptance bills are
less likely to be dishonored when they become due. Therefore, the Company derecognizes the banker’s acceptance bills already
endorsed or discounted. However, if such bills fail to be paid when they become due, the Company will assume joint and several
liability to the holders thereof pursuant to the Law on Negotiable Instruments.
In RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 199,189,721.60 165,859,090.82
Total 199,189,721.60 165,859,090.82
In RMB
Nature of accounts Closing book balance Opening book balance
Loan and reserve fund 38,285,176.67 25,105,050.07
Security deposit 110,104,544.57 123,410,363.54
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Temporary payment receivable and
others
Total 305,695,808.19 262,756,392.10
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 172,171,673.08 116,532,010.22
Over 3 years 77,745,765.58 75,707,020.71
Over 5 years 36,827,120.12 37,124,918.34
Total 305,695,808.19 262,756,392.10
Applicable □ N/A
In RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Book balance Book balance
Type accounts Carrying accounts Carrying
Ratio of value Ratio of value
Amount % Amount Amount % Amount
provision provision
Allowance
recognized 4.06% 100.00% 0.89% 100.00%
individually
Incl.:
Allowance
recognized 95.94% 32.08% 99.11% 36.31%
collectively
Incl.:
Total 100.00% 34.84% 100.00% 36.88%
Other receivables with allowance for doubtful accounts recognized collectively by category name:
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Conventional vehicle business
group
Optical communication
business group
Aging group 86,376,899.50 15,982,851.44 18.50%
Incl.: Within 1 year 64,850,206.94 3,242,510.32 5.00%
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Over 3 years 9,874,597.72 9,874,597.72 100.00%
Total 293,279,455.70 94,089,734.10
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
In RMB
Stage I Stage II Stage III
Allowance for doubtful Lifetime expected Lifetime expected
accounts credit loss (not credit credit loss (credit
credit loss
impaired) impaired)
Balance as at January
In the current period,
the balance as at
January 1, 2026
- Transferred to stage II -950,851.57 950,851.57
- Transferred to stage
-2,824,538.21 2,824,538.21
III
Recognized 1,838,612.65 1,701,416.56 10,992,715.97 14,532,745.18
Transferred 296,088.75 296,088.75
Other changes -52,983.75 -122,786.00 -4,452,101.37 -4,627,871.12
Balance as at June 30,
Significant changes in the book balance of allowance for doubtful accounts in the current period
□ Applicable N/A
In RMB
% of total closing Closing balance of
Company
Nature of account Closing balance Age balance of other allowance for
name
receivables doubtful accounts
Temporary payment
Top 1 69,867,882.50 Within 1 year 22.86%
receivable and others
Top 2 Loan and reserve fund 17,932,362.03 3-4 years 5.87% 17,932,362.03
Top 3 Security deposit 16,642,170.76 2-5 years 5.44% 14,469,916.46
Top 4 Security deposit 14,923,923.42 1-5 years 4.88% 10,567,789.19
Temporary payment
Top 5 13,625,205.44 Within 1 year 4.46% 681,260.27
receivable and others
Total 132,991,544.15 43.51% 43,651,327.95
(1) Advances to suppliers by age
In RMB
Closing balance Opening balance
Age
Amount % Amount %
Within 1 year 701,971,502.08 97.46% 254,266,212.51 92.72%
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Over 3 years 2,751,596.16 0.38% 4,481,309.57 1.63%
Total 720,298,190.03 274,265,688.35
(2) The top 5 suppliers in terms of closing balance of advances to suppliers
In RMB
Company name Book balance % of the total balance of advances
Top 1 280,009,576.05 38.87
Top 2 90,000,000.00 12.49
Top 3 46,512,000.00 6.46
Top 4 34,076,000.00 4.73
Top 5 29,700,000.00 4.12
Subtotal 480,297,576.05 66.68
Does the Company need to comply with the disclosure requirements for the real estate industry: No
(1) Categories of inventories
In RMB
Closing balance Opening balance
Inventory Inventory
provision or provision or
Item allowance for allowance for
Book balance Carrying value Book balance Carrying value
impairment of impairment of
contract contract
fulfilling costs fulfilling costs
Raw materials 315,621,584.87 316,612,692.03
Work in 3,478,745,448. 3,296,897,541. 2,247,197,239. 2,044,703,693.
progress 64 02 03 33
Goods on hand 727,697,080.42 716,850,179.36
Circulating
materials
Materials for
consigned 145,336,939.95 145,336,939.95 86,582,618.88 86,582,618.88
processing
Total
.20 71 .49 .99 98 01
(3) Inventory provision or allowance for impairment of contract fulfilling costs
In RMB
Increase in the current period Decrease in the current period
Opening
Item Reversed or Closing balance
balance Recognized Others Others
written off
Raw materials 316,612,692.03 41,333,117.08 37,399,411.62 4,924,812.62 315,621,584.87
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Work in
progress
Goods on hand 716,850,179.36 153,053,554.32 138,624,060.80 3,582,592.46 727,697,080.42
Circulating
materials
Total 198,128,450.05 196,879,048.82 12,365,814.50
Basis for determining the net realizable value, and reason for reversing or writing off the provisions for decline in value of
inventories in the current period
Item Basis for determining the net Reason for reversing the inventory Reason for writing off the
realizable value provision inventory provision
Raw
materials
The net realizable value is the
Work in estimated selling price of finished
progress goods less the estimated cost of The circumstances that previously caused The Company has sold or used
Other completion, estimated selling the inventory to be written down no the inventories for which a
circulating expenses and related taxes longer exist, resulting in that the net provision for impairment of
realizable value of the inventory is greater inventory has been made during
materials
than its carrying amount the current period
The net realizable value is the
Goods on estimated selling price of finished
hand goods less the estimated selling
expenses and related taxes
In RMB
Item Closing balance Opening balance
Long-term receivables due with one year 96,551,847.52
Total 96,551,847.52
In RMB
Item Closing balance Opening balance
Cost of returned goods receivable 16,203,894.73 25,696,670.02
Deductible input tax 948,795,401.29 784,368,551.60
Prepaid enterprise income tax 77,831,699.39 128,996,242.65
Deferred expenses and others 485,673,924.25 389,525,328.99
Inventories pending compensation 95,738,378.03
Total 1,624,243,297.69 1,328,586,793.26
In RMB
Changes in the current period Dividend Aggregate gain
Opening Gain and loss Closing income and loss
Item Additional Reduced
balance recognized in Others balance recognized recognized in
investment investment
other in the other
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
comprehensive current comprehensive
income in the period income at the
current period end of the
current period
Jiangsu Bohua
Equity
Investment 207,737,297.88 65,376,356.90 273,113,654.78 73,113,654.78
Partnership
(L.P.)
Hai Dixin
Semiconductor
(Nantong) Co.,
Ltd.
Kunshan
Hostar
Intelligence 34,885,400.00 219,056,926.33 253,942,326.33 225,142,326.33
Technology
Co., Ltd.
Dyness Digital
Energy
Technology
Co., Ltd.
Shanghai
Wuwen
Xinqiong
Intelligent
Technology
Co., Ltd.
Shinwu
Optronics
(Suzhou) Co.,
Ltd.
Other -
companies 793,713.02
Total 442,976,297.74 311,167,785.38 753,350,370.10 354,884,173.26
(2) Reason for designation as an investment in equity instruments at fair value through other comprehensive income
RMB3.3 billion, and is primarily engaged in equity investments and venture capital investment (in non-listed companies only). In
consideration that this investment will bring a good return to the Company and provide the Company with opportunities to invest
in premium fields and assets, and is not held for trading, the Company designated this investment as a financial asset at fair value
through other comprehensive income.
RMB36,152,329.00, in which the Company holds 10.2345% shares. In consideration that the Company has a close business
relationship with Hai Dixin Semiconductor (Nantong) Co., Ltd., the shares held by the Company in it will help the Company
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
improve its business competencies and the investment is not held for trading, the Company designated this investment as a
financial asset at fair value through other comprehensive income on January 1, 2019.
in which the Company holds 3.038% shares. In consideration that the shares held by the Company in it will help the Company
improve its business competencies, including supporting business scale expansion, procuring raw materials/equipment, and
developing and strengthening market and sales teams, and the investment is not held for trading, the Company designated this
investment as a financial asset at fair value through other comprehensive income in February 2023.
RMB112,023,809, in which the Company holds 1.4716% shares. In consideration that the shares held by the Company in it will
help the Company improve its business competencies and the investment is not held for trading, the Company designated this
investment as a financial asset at fair value through other comprehensive income in March 2023.
of RMB 2,191,215, in which the Company holds 1.7697% shares. In consideration that the shares held by the Company in it will
help the Company improve its business competencies and the investment is not held for trading, the Company designated this
investment as a financial asset at fair value through other comprehensive income in November 2025.
in which the Company holds 1.7169% shares. In consideration that the shares held by the Company in it will help the Company
improve its business competencies and the investment is not held for trading, the Company designated this investment as a
financial asset at fair value through other comprehensive income in May 2023.
(1) Particulars of long-term receivables
In RMB
Closing balance Opening balance
Allowance Allowance Range of
Item Carrying Carrying
Book balance for doubtful Book balance for doubtful discount rate
value value
accounts accounts
Amount of 30,000,000.0 30,000,000.0
finance lease 0 0
Labor service
by 192,773,710. 191,688,968. 281,695,941. 280,287,462.
installment 62 93 78 02
receivable
Sale of long- 49,035,581.7 46,509,581.7
term assets 7 7
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
by
installment
receivable
Total 2,096,741.69 3,934,479.76
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
In RMB
Opening Changes in the current period Closing
Opening Closing
balance of Investment Adjustment to Declared cash Allowance balance of
balance Other balance
Investee allowance for Additional Reduced income or loss other dividends or for allowance for
(carrying changes in Others (carrying
impairment investment investment under the equity comprehensive profit impairment impairment
value) equity value)
loss method income distribution loss loss
I. Joint ventures
II. Associates
Suzhou Toprun
Electric Equipment 19,510,321.00 51,487,204.05 -432,671.46 19,077,649.54 51,487,204.05
Co., Ltd.
Shenzhen Nanfang
Blog Technology
Development Co.,
Ltd.
Suzhou LEGATE
Intelligent Equipment 21,402,031.08 -998,948.96 20,403,082.12
Corp., Ltd.
Suzhou Dongcan
Optoelectronics 2,693,102.45 -152,739.16 2,540,363.29
Technology Co., Ltd.
Jiangsu Nangao
Intelligent Equipment
Innovation Center
Co., Ltd.
Jiaozuo Songyang
Photoelectric 22,181,612.25 -1,143,544.82 21,038,067.43
Technology Co., Ltd.
Suzhou Yongxin
Jingshang Venture 1,674,130.
Capital Partnership 44
(L.P.)
Isotek Microwave
Limited
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Shanghai Xinhuarui
Semiconductor 16,978,597.53 -666,914.62 16,311,682.91
Technology Co., Ltd.
Subtotal 77,533,685.13 -3,664,609.04 132,744.71 121,094,948.36 77,533,685.13
Total 77,533,685.13 -3,664,609.04 132,744.71 121,094,948.36 77,533,685.13
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(1) Investment properties at cost
Applicable □ N/A
In RMB
Buildings and Construction
Item Land use right Total
structures in progress
I. Original value
(1) Acquired
(2) Transferred from inventories/ fixed
assets/ construction in progress
(3) Increased due to business combinations
(1) Disposed 5,309,132.17 5,309,132.17
(2) Other transfer-out
II. Accumulated depreciation and amortization
(1) Recognized or amortized 84,061.28 2,019,360.54 2,103,421.82
(1) Disposed 4,866,090.63 4,866,090.63
(2) Other transfer-out
III. Allowance for impairment loss
(1) Recognized
(1) Disposed
(2) Other transfer-out
IV. Carrying value
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
In RMB
Item Closing balance Opening balance
Fixed assets 17,187,713,941.47 16,586,762,231.15
Total 17,187,713,941.47 16,586,762,231.15
(1) Particulars of fixed assets
In RMB
Buildings and Machinery and Transportation Office equipment
Item Total
structures equipment equipment and others
I. Original value
(1) Acquired 9,708,840.67 58,196,003.12 1,111,570.13 28,587,240.17 97,603,654.09
(2) Transferred from
construction in progress
(3) Increased due to
business combinations
(4) Translation of
foreign currency -95,629,299.61 -69,984,142.52 -134,142.08 -7,134,837.73 -172,882,421.94
financial statements
(1) Disposed or retired 5,030,722.82 320,080,244.06 9,625,136.74 6,281,534.60 341,017,638.22
II. Accumulated
depreciation
(1)
Recognized
(2) Translation of
foreign currency -213,738.55 -14,519,692.00 -872,152.03 -1,770,824.06 -17,376,406.64
financial statements
(1) Disposed or retired 3,505,561.87 245,162,525.33 9,128,523.50 6,029,885.96 263,826,496.66
(2) Transfer of
construction in progress
III. Allowance for
impairment loss
(1) Recognized
(1) Disposed or retired 325,074.79 325,074.79
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Buildings and Machinery and Transportation Office equipment
Item Total
structures equipment equipment and others
IV. Carrying value
(2) Fixed assets whose property title certificates have not yet been obtained
In RMB
Reason for not obtaining the property title
Item Carrying value
certificate
Factory buildings of Multek 44,116,758.48 Pending review
Subtotal 44,116,758.48
In RMB
Item Closing balance Opening balance
Construction in progress 4,514,260,841.57 2,345,985,416.22
Total 4,514,260,841.57 2,345,985,416.22
(1) Particulars of construction in progress
In RMB
Closing balance Opening balance
Allowance Allowance
Item for for
Book balance Carrying value Book balance Carrying value
impairment impairment
loss loss
Project of supporting
construction for
production expansion 1,013,186,446.80 1,013,186,446.80
of PCBs and optical
transceivers in Thailand
Plant infrastructure
project of Multilayer
Board (Thailand) Co.,
Ltd.
Kunshan new energy
manufacturing base 269,865,330.68 269,865,330.68
project
High-end AI PCB
construction project
Automatic production
line of vehicle-mounted 217,686,538.92 217,686,538.92 212,383,174.42 212,383,174.42
LCMs
MFLEX Suzhou
Guoxiang Phase II and
other production
expansion projects
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
IC substrate project of
Chaowei
Microelectronics
(Yancheng) Co., Ltd.
MFLEX Yancheng
Phase II project
Construction project of
optical transceiver 974,414,793.99 974,414,793.99 265,534,507.25 265,534,507.25
manufacturing line
Installation equipment
in progress and others
Total 4,514,260,841.57 4,514,260,841.57 2,345,985,416.22 2,345,985,416.22
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(2) Changes in significant constructions in progress in the current period
In RMB
Incl.: Rate of
Aggregate
Budget (100 Increase in Amount % of project Capitalized interest
Opening Other Closing amount of
Item million the current transferred to costs to the Progress interest in the capitalization Source of funds
balance decreases balance capitalized
RMB) period fixed assets budget current in the current
interest
period period
Own funds +
High-end AI PCB 228,037,607. 1,644,463,82 376,525,280. 1,493,077,23 loans from
construction project 94 3.32 84 9.65 financial
institutions
Kunshan new energy Loans from
manufacturing base 18.00 100.00%100.00% 7,229,036.37 financial
project institutions
Infrastructure construction
Loans from
of the factory for Multi- 767,805,258. 33,264,006.8 796,584,478.
layer Circuit Board Co., 88 2 84
institutions
Ltd.
Own funds +
Construction project of
optical transceiver 18.00 82.61%82.61%
manufacturing line
institutions
Project of supporting
Own funds +
construction for
production expansion of 13.12 88.37%88.37%
PCBs and optical
institutions
transceivers in Thailand
Total 137.87 9,368,640.89
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
□ Applicable N/A
(1) Particulars of right-of-use assets
In RMB
Buildings and Machinery and
Item Land Total
structures equipment
I. Original value
balance
combination
foreign currency -4,241,833.25 -6,880,564.79 -11,107.50 -11,133,505.54
financial statements
II. Accumulated
depreciation
balance
(1)
Recognized
combination
foreign currency -5,716,677.99 -3,458,905.38 -9,175,583.37
financial statements
(1) Disposed 5,099,012.78 5,099,012.78
III. Allowance for
impairment loss
balance
(1)
Recognized
(1) Disposed
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
IV. Carrying value
balance
(1) Particulars of intangible assets
In RMB
Unpatented Trademarks and Customer
Item Land use right Patent Software Total
technology patents resources
I. Original value
(1) Acquired 96,240,975.59 18,788,487.92 1,746,009.34 116,775,472.85
(2) Internal R&D 6,351,794.43 6,351,794.43
(3) Increased due to business
combinations
-13,649,719.51 -1,628,684.02 -1,162,971.17 -4,880,394.54 -21,321,769.24
currency financial statements
(1) Disposed 510,779.21 510,779.21
II. Accumulated amortization
(1) Recognized 12,592,654.90 3,227,902.23 23,628,192.57 37,591,601.44 12,271,084.53 89,311,435.67
(2) Increased due to
combination
(3) Translation of foreign
currency financial statements
(1) Disposed 441,962.96 441,962.96
III. Allowance for impairment
loss
(1) Recognized
(2) Increased due to
combination
(3) Translation of foreign
-5,675,724.57 -5,675,724.57
currency financial statements
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(1) Disposed
IV. Carrying value
(1) Original value of goodwill
In RMB
Increase Decrease
Investee or event giving rise to Arising Translation of
Opening balance from foreign currency Closing balance
goodwill Disposed
business financial
combination statements
MFLEX 1,770,752,915.84 1,770,752,915.84
Multek 179,329,062.90 179,329,062.90
Mutto Optronics Technology Co.,
Ltd.
Suzhou RF Top Electronic
Communication Co., Ltd.
Source Photonics 2,799,030,096.91 -86,568,328.58 2,712,461,768.33
Total 5,038,071,303.96 -86,568,328.58 4,951,502,975.38
(2) Allowance for impairment of goodwill
In RMB
Increase Decrease
Investee or event giving rise to goodwill Opening balance Closing balance
Recognized Disposed
Mutto Optronics Technology Co., Ltd. 153,957,647.78 153,957,647.78
Suzhou RF Top Electronic Communication
Co., Ltd.
Total 268,811,941.95 268,811,941.95
(3) Information of asset group or combination of asset groups to which the goodwill belongs
Composition of asset group or
Business segment and basis Whether or not the same
Item combination of asset group and basis
for classification as prior years
for grouping
All of its assets and liabilities when PCB, manufacturing circuit
MFLEX Yes
acquired by the Company boards
All of its assets and liabilities when PCB, manufacturing circuit
Multek Yes
acquired by the Company boards
Mutto Optronics Technology Co., Photoelectric display
All of its assets and liabilities Yes
Ltd. module
Precision components,
Suzhou RF Top Electronic
All of its assets and liabilities manufacturing ceramic Yes
Communication Co., Ltd.
filters
Source Photonics All the assets and liabilities of Optical transceivers Yes
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Composition of asset group or
Business segment and basis Whether or not the same
Item combination of asset group and basis
for classification as prior years
for grouping
Source Photonics when it was (including optical chips)
acquired by the Company
In RMB
Increase in the Other
Item Opening balance Amortization Closing balance
current period decreases
Decoration costs of fixed
assets and others
Total 990,698,521.69 151,401,394.71 114,556,432.79 3,010,994.71 1,024,532,488.90
(1) Deferred tax assets not offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Allowance for
impairment of assets
Deductible losses 4,166,353,404.01 634,310,135.67 3,596,361,870.04 559,296,768.10
Difference in
depreciation of fixed 111,932,557.23 19,787,186.14 105,783,341.60 20,675,023.55
assets
Lease liabilities 2,062,956,022.57 325,179,991.71 2,500,101,261.08 394,720,970.92
Unrealized gains/losses
from inter-company 246,285,935.90 46,483,977.04 329,741,349.28 62,919,533.24
transactions
Change in the fair
value of financial 66,457,201.26 12,478,708.36 1,261,168.56 189,175.28
instruments
Deferred income 698,947,642.54 122,255,848.40 676,768,326.83 118,169,047.33
Accrued expenses 534,740,281.18 110,688,552.45 364,698,570.53 80,596,959.76
Total 9,036,567,442.42 1,462,319,814.29 8,778,377,445.92 1,442,115,165.83
(2) Deferred tax liabilities not offset
In RMB
Closing balance Opening balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
One-off deduction of
depreciation of fixed 2,884,850,823.38 594,071,974.65 3,155,071,803.47 635,400,278.98
assets
Accrued interest
income and others
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Right-of-use assets 2,049,203,415.72 332,855,415.19 2,304,688,646.71 375,918,561.89
Income tax payable
due to increase in 821,926,333.86 167,786,567.56 842,218,446.34 181,435,486.53
appraised value
Total 6,786,519,611.98 1,334,546,904.07 6,567,037,255.48 1,247,159,509.31
(3) Deferred tax assets and deferred tax liabilities presented on a netting basis
In RMB
Closing offset amount Closing balance of Opening offset amount Opening balance of
Item of deferred tax assets deferred tax assets or of deferred tax assets deferred tax assets or
and liabilities liabilities after offset and liabilities liabilities after offset
Deferred tax assets 646,837,302.88 815,482,511.41 612,352,571.77 829,762,594.06
Deferred tax liabilities 646,837,302.88 687,709,601.19 612,352,571.77 634,806,937.54
(4) Unrecognized deferred tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary differences 1,393,544,108.02 1,451,854,757.71
Deductible losses 2,015,388,427.72 2,267,692,018.60
Total 3,408,932,535.74 3,719,546,776.31
(5) Deductible losses on unrecognized deferred tax assets that will expire in the following years
In RMB
Year Closing balance Opening balance Remark
Indefinite 6,738,597.86 6,943,958.56
Total 2,015,388,427.72 2,267,692,018.60
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
In RMB
Closing balance Opening balance
Allowance Allowance
Item for for
Book balance Carrying value Book balance Carrying value
impairment impairment
loss loss
Deferred income
– unrealized gain
or loss on sale
and leaseback
Performance
guarantee for 434,405,903.95 434,405,903.95
acquisition
Prepayment for
projects and 1,713,002,388.14 1,713,002,388.14 1,014,414,674.53 1,014,414,674.53
equipment
Amounts for
share repurchase
Others 2,878,042.18 2,878,042.18 3,010,272.91 3,010,272.91
Total 1,730,638,190.52 1,730,638,190.52 1,459,542,272.71 1,459,542,272.71
In RMB
Closing balance Opening balance
Item Book Carrying Type of Reason for Book Carrying Type of Reason for
balance value restriction restriction balance value restriction restriction
Cash and Security Security
bank Pledge deposit for Pledge deposit for
balances notes, etc. notes, etc.
Accounts 859,452,46 855,155,20 981,561,84 981,561,84
Pledge Factoring Pledge Factoring
receivable 8.45 6.20 7.06 7.06
Accounts
receivable Pledge Pledge
financing
Fixed 159,907,16 151,552,24 Loan
Mortgage
assets 9.80 5.09 mortgage
Right-of- 2,721,779,5 2,104,086,0 Finance 2,708,474,2 2,209,353,8 Finance
Mortgage Mortgage
use assets 36.43 75.30 lease 87.07 14.61 lease
Total
(1) Short-term borrowings by category
In RMB
Item Closing balance Opening balance
Pledge loans 96,812,958.50
Credit loans 7,983,179,536.87 6,689,912,201.97
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Discounting and factoring financing of
notes, letters of credit and accounts 1,550,394,653.33 1,321,561,847.06
receivable
Total 9,630,387,148.70 8,011,474,049.03
In RMB
Item Closing balance Opening balance
Financial liabilities held for trading 181,580,627.27 46,545,937.17
Incl.:
Derivative financial liabilities 181,580,627.27 46,545,937.17
Incl.:
Total 181,580,627.27 46,545,937.17
In RMB
Category Closing balance Opening balance
Commercial acceptance bills 30,000,000.00
Banker’s acceptance bills 616,705,866.60 972,812,950.68
Total 616,705,866.60 1,002,812,950.68
(1) Breakdown of accounts payable
In RMB
Item Closing balance Opening balance
Payment for materials 11,695,336,074.42 10,007,113,113.42
Payment for projects and equipment 3,130,744,124.46 2,493,239,585.68
Others 909,425,452.04 542,783,988.24
Total 15,735,505,650.92 13,043,136,687.34
In RMB
Item Closing balance Opening balance
Other payables 154,547,241.39 705,336,813.22
Total 154,547,241.39 705,336,813.22
(3) Other payables
In RMB
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Item Closing balance Opening balance
Share purchase price 535,923,369.94
Temporary receipts payable 75,805,048.38 77,244,154.65
Others 78,742,193.01 92,169,288.63
Total 154,547,241.39 705,336,813.22
In RMB
Item Closing balance Opening balance
Trade receivable 459,685,401.30 474,660,658.17
Total 459,685,401.30 474,660,658.17
(1) Employee benefits payable
In RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term benefits 907,081,503.02 3,473,570,502.50 3,576,987,212.21 803,664,793.31
II. Post-employment
benefits – defined 79,270,561.17 341,444,903.91 345,261,326.34 75,454,138.74
contribution plans
III. Termination
benefits
IV. Other benefits due
within one year
Total 995,231,432.74 3,821,400,918.07 3,932,487,623.69 884,144,727.12
(2) Short-term employee benefits
In RMB
Item Opening balance Increase Decrease Closing balance
allowances and 839,903,470.98 3,042,047,724.09 3,136,391,912.34 745,559,282.73
subsidies
contributions
Workers’ compensation
insurance
Medical and maternity
insurance
fund
and employee 5,926,145.44 8,941,421.41 14,166,331.79 701,235.06
education fund
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
absence
Total 907,081,503.02 3,473,570,502.50 3,576,987,212.21 803,664,793.31
(3) Defined contribution plans
In RMB
Item Opening balance Increase Decrease Closing balance
insurance
insurance
Total 79,270,561.17 341,444,903.91 345,261,326.34 75,454,138.74
In RMB
Item Closing balance Opening balance
Value-added tax 79,411,074.25 35,923,797.22
Enterprise income tax 506,640,245.94 513,181,003.94
Individual income tax 15,379,067.31 46,215,837.22
Urban maintenance and construction tax 5,504,914.63 7,436,675.11
Property tax 10,792,737.03 9,916,289.44
Stamp duty 7,715,818.11 7,572,566.44
Education surcharge 2,381,675.90 3,010,002.58
Land use tax 479,786.57 480,526.20
Local education surcharge 1,581,221.88 1,983,592.32
Other taxes 14,374,612.24 15,616,971.86
Total 644,261,153.86 641,337,262.33
In RMB
Item Closing balance Opening balance
Long-term borrowings due within one
year
Long-term payables due within one year 28,115,200.00
Lease liabilities due within one year 278,598,193.44 500,891,170.93
Total 2,975,457,863.36 3,488,303,627.95
In RMB
Item Closing balance Opening balance
Output tax to be recognized 47,028,274.12 26,024,795.18
Accrued maintenance expenses 18,170,383.49 17,813,333.90
Total 65,198,657.61 43,838,129.08
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(1) Long-term borrowings by category
In RMB
Item Closing balance Opening balance
Pledge loans 333,839,386.56 333,791,638.89
Mortgage loans 52,980,858.25
Credit loans 9,106,687,798.81 5,988,306,967.40
Total 9,440,527,185.37 6,375,079,464.54
In RMB
Item Closing balance Opening balance
Lease obligations payable 2,127,321,241.72 1,916,709,641.58
Less: Unrecognized financing costs -210,666,745.97 -126,644,820.85
Total 1,916,654,495.75 1,790,064,820.73
(1) Long-term employee benefits payable
In RMB
Item Closing balance Opening balance
I. Post-employment benefits - net
liabilities under defined benefit plans
Total 133,338,235.43 142,470,448.33
In RMB
Item Closing balance Opening balance Method of acquisition
Business restructuring
expenditures
Provision for commercial
risks
Provision for sales return 20,418,721.70 26,523,128.06
Product warranty 20,975,918.66 21,411,260.96
Total 221,976,523.02 263,756,502.85
In RMB
Method of
Item Opening balance Increase Decrease Closing balance
acquisition
Government grants 889,843,133.49 125,675,649.65 144,861,131.49 870,657,651.65
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Total 889,843,133.49 125,675,649.65 144,861,131.49 870,657,651.65
In RMB
Change (+/-)
Opening balance Capitalization Closing balance
Bonus
New shares of capital Others Subtotal
shares
reserves
Total shares 1,831,607,532.00 1,831,607,532.00
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
premium)
Other capital reserve 141,497,253.43 37,341,748.80 178,839,002.23
Total 9,257,892,537.77 107,012,406.88 9,364,904,944.65
In RMB
Item Opening balance Increase Decrease Closing balance
Treasury
shares
Total 175,076,133.79 49,990,856.17 125,085,277.62
Other information, including the explanation about increase/decrease in the current period and the reasons of such change: On
March 9, 2026, the Company transferred 3,048,701 shares from the repurchase securities account to the 2026 employee stock
ownership plan securities account by means of non-trading transfer.
In RMB
Amount of the current period
Less: Other Less: Other
comprehen comprehen Amount Amount
Opening sive sive Less: attributable attributable Closing
Item Amount
balance income income Income tax to the to minority balance
before tax
reclassified reclassified expenses parent after shareholder
to profit or to retained tax s after tax
loss earnings
I. Other
comprehensive income
that cannot be
reclassified to profit or
loss
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Incl.: Changes from - -
remeasurement of 2,580,704.4 1,935,528.3 149,475.85
defined benefit plans 5 4
Change in fair
value of investments 43,716,387. 311,167,78 79,099,320. 232,068,46 275,784,85
in other equity 88 5.38 66 4.72 2.60
instruments
II. Other
comprehensive income - - - - -
that will be 286,634,07 312,921,88 18,691,661. 340,992,33 627,626,40
reclassified to profit or 4.81 6.24 95 1.35 6.15
loss
- - - -
Reserves for cash 36,545,134. 46,762,107.
flow hedge 30 06
Differences in
- - - -
translation of foreign
currency financial
statements
- - - - -
Total other 125,216,25
comprehensive income 1.61
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
reserve
Total 249,150,887.74 249,150,887.74
In RMB
Item Current period Previous period
Balance of retained profits at the end of the previous period
before adjustment
Opening balance of retained profits after adjustment 10,538,405,831.61 9,288,043,977.88
Add: Net profit attributable to owners of the parent company 2,956,898,811.04 1,386,066,705.56
Less: Appropriation to statutory surplus reserve 16,909,671.20
Dividends payable to the ordinary shareholders 118,795,180.63
Acquisition of minority interests 97,406,416.23
Closing balance of retained profits 13,397,898,226.42 10,538,405,831.61
In RMB
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Amount of the current period Amount of the previous period
Item
Revenue Cost Revenue Cost
Primary business 27,347,867,868.08 21,929,134,042.30 16,756,004,204.58 14,521,655,805.67
Other businesses 449,816,104.80 266,941,120.26 199,159,694.31 128,843,430.23
Total 27,797,683,972.88 22,196,075,162.56 16,955,163,898.89 14,650,499,235.90
In RMB
Item Amount of the current period Amount of the previous period
Urban maintenance and construction tax 17,247,219.44 18,294,832.19
Education surcharge 7,605,970.07 8,129,157.99
Property tax 27,979,632.45 19,592,855.42
Land use tax 903,972.02 809,767.30
Vehicle and vessel tax 894,149.41 911,806.51
Stamp duty 16,242,701.28 10,463,237.65
Local education surcharge 5,064,084.62 5,419,438.62
Environmental protection tax 147,514.38 104,860.32
Others 2,870,677.70
Total 78,955,921.37 63,725,956.00
In RMB
Item Amount of the current period Amount of the previous period
Employee benefits 394,173,595.03 279,943,684.74
Depreciation and amortization 130,948,581.47 85,690,889.77
Consulting service fees 207,819,393.69 54,212,094.87
Office expenses 26,479,229.22 12,439,068.14
Business entertainment expenses 28,384,301.19 24,124,672.26
Travel expenses 21,250,141.56 11,634,664.08
Rents 7,527,691.67 4,656,698.12
Repair costs 11,236,446.43 14,159,167.98
Taxes 842,865.60 1,390,536.14
Others 68,798,274.51 59,310,463.39
Total 897,460,520.37 547,561,939.49
In RMB
Item Amount of the current period Amount of the previous period
Employee benefits 149,609,868.81 101,851,337.61
Sales service fees 72,959,268.69 26,670,103.77
Export charges 7,417,620.83 10,789,463.58
Travel expenses 8,542,201.33 6,471,965.00
Business entertainment expenses 15,162,383.66 10,534,099.66
Others 14,454,357.35 1,625,635.45
Total 268,145,700.67 157,942,605.07
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
In RMB
Item Amount of the current period Amount of the previous period
Direct costs 263,769,180.91 250,520,190.78
Labor costs 365,891,741.44 261,695,815.23
Depreciation and amortization 59,175,441.79 45,720,954.81
Others 95,464,953.38 23,530,506.11
Total 784,301,317.52 581,467,466.93
In RMB
Item Amount of the current period Amount of the previous period
Interest expenses 256,552,474.41 159,944,331.53
Interest on leases and financing service
fees
Less: Interest income 86,441,618.15 113,967,483.54
Add: Exchange loss 303,193,121.04 -64,646,445.89
Bank charges and others 32,887,582.09 9,575,162.86
Total 545,788,419.37 29,546,958.47
In RMB
Sources of other income Amount of the current period Amount of the previous period
Government grants related to assets 144,861,131.49 107,132,163.18
Government grants related to income 18,379,346.55 29,188,043.87
Additional deduction of VAT 5,300,546.73
Tax preferences 931,982.92 3,613,741.39
Refund of individual income tax
withholding service fees
Total 171,583,827.69 141,318,212.63
In RMB
Source of gain on changes in fair value Amount of the current period Amount of the previous period
Financial assets held for trading 490,690,971.91 2,536,226.77
Incl.: Incomes from changes in the
fair value of derivative financial 1,554,503.82 2,536,226.77
instruments
Total 490,690,971.91 2,536,226.77
In RMB
Item Amount of the current period Amount of the previous period
Income from long-term equity -3,664,609.04 -4,073,896.56
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
investments under the equity method
Investment income from the disposal of
-4,851,794.93
long-term equity investments
Investment income from the disposal of
financial assets held for trading
Income from debt restructuring 23,143,740.00
Discount loss on accounts receivable
-1,174,010.14 -832,884.08
financing
Total 33,671,781.46 -6,702,003.08
In RMB
Item Amount of the current period Amount of the previous period
Loss from doubtful accounts -13,777,349.90 3,764,627.53
Total -13,777,349.90 3,764,627.53
In RMB
Item Amount of the current period Amount of the previous period
I. Impairment of inventories and contract
-198,128,450.05 -86,992,131.00
fulfilling costs
X. Impairment of goodwill -2,181,938.11
Total -198,128,450.05 -89,174,069.11
In RMB
Source of gain on disposal of assets Amount of the current period Amount of the previous period
Gain on disposal of fixed assets -7,633,381.80 -14,963,024.24
Gain on disposal of intangible assets
Total -7,633,381.80 -14,963,024.24
In RMB
Amount of the previous Amount recognized in non-
Item Amount of the current period
period recurring gain or loss
Penalties 607,587.78 3,293,920.92 607,587.78
Amounts that cannot be paid 241,686.87 340,357.93 241,686.87
Others 1,785,122.69 1,985,161.51 1,785,122.69
Total 2,634,397.34 5,619,440.36 2,634,397.34
In RMB
Item Amount of the current period Amount of the previous Amount recognized in non-
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
period recurring gain or loss
Donations 5,786,821.77 3,915,500.00 5,786,821.77
Loss on destruction and
retirement of non-current 189,379.80 2,052,158.56 189,379.80
assets
Penalties, overdue fines and
liquidated damages
Others 2,403,179.50 358,831.72 2,403,179.50
Total 17,525,675.98 6,326,490.28 17,525,675.98
(1) Statement of income tax expenses
In RMB
Item Amount of the current period Amount of the previous period
Income tax expense 501,447,967.89 198,134,719.03
Deferred income tax expenses 2,394,602.13 3,799,917.10
Total 503,842,570.02 201,934,636.13
(2) Reconciliation of income tax expenses to accounting profit
In RMB
Item Amount of the current period
Total profit 3,488,473,051.69
Income tax expenses calculated based on statutory/applicable
tax rate
Effect of different tax rates applicable to subsidiaries -57,313,503.26
Effect of adjustment of income taxes for prior years -32,106.83
Effect of non-taxable incomes -1,729,883.20
Effect of non-deductible costs, expenses and losses 12,799,163.24
Effect of using the deductible losses for which the deferred
-7,172,830.75
income tax assets were not recognized in previous periods
Effect of deductible temporary differences or deductible losses
not recognized for deferred tax assets for the current period
Effect of super deduction of R&D expenses -31,832,475.97
Others -49,271,863.80
Income tax expenses 503,842,570.02
See the description in Notes V(I)43 for details
(1) Cash flows related to operating activities
Other cash receipts related to operating activities:
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
In RMB
Item Amount of the current period Amount of the previous period
Security deposits 348,476,633.09 212,576,032.68
Government grants 133,730,643.44 300,850,136.02
Interest income 86,441,618.15 113,967,483.54
Temporary receipts payable and others 48,158,884.22 21,495,008.51
Total 616,807,778.90 648,888,660.75
Other cash payments related to operating activities
In RMB
Item Amount of the current period Amount of the previous period
Payment of period expenses in cash 583,086,546.82 331,549,138.55
Security deposits 661,671,859.37 339,221,569.24
Bank charges 15,392,544.26 9,575,162.86
Temporary payment receivable and
others
Total 1,332,107,189.56 701,106,071.72
(2) Cash flows related to investing activities
Other cash receipts related to investing activities
In RMB
Item Amount of the current period Amount of the previous period
Recovery of term deposits 1,861,831,543.20 777,215,212.80
Security deposit for the acquisition 435,380,725.87
Reversal of security deposit for
investments
Other security deposits 31,961,994.32 16,439,072.04
Total 2,361,600,623.62 793,654,284.84
Other cash payments related to investing activities
In RMB
Item Amount of the current period Amount of the previous period
Term deposits 1,915,015,928.00 300,592,706.53
Security deposit for investments 33,407,708.70
Security deposit for the acquisition 237,313,781.32
Other security deposits 32,369,157.48 46,449,602.24
Total 1,980,792,794.18 584,356,090.09
(3) Cash flows related to financing activities
Other cash receipts related to financing activities
In RMB
Item Amount of the current period Amount of the previous period
Various security deposits and term
deposits pledged
Proceeds from discounts on acceptance
bills and letters of credit
Factoring receivable 3,050,144,076.69
Total 3,587,827,793.27 730,151,717.04
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Other cash payments related to financing activities
In RMB
Item Amount of the current period Amount of the previous period
Security deposits 28,957,494.58 900,000.00
Payment of rents 105,829,320.42 11,405,753.18
Expenditures for repurchase of shares 100,100,000.00
Amounts related to the ESOP 27,333,109.90
Payment of expenses for listing in Hong
Kong
Payments under bill financing 504,650,000.35 341,000,000.00
Factoring receivable 2,987,831,825.37
Repurchase of minority interests 186,392,721.74
Total 3,850,795,945.91 453,405,753.18
Changes in liabilities arising from financing activities
Applicable □ N/A
In RMB
Increase Decrease
Opening
Item Non-cash Non-cash Closing balance
balance Cash change Cash change
change change
Short-term 8,011,474,049. 10,026,644,734 8,352,128,050. 9,630,387,148.
borrowings 03 .56 74 70
Long-term
borrowings
(including
long-term 111,651,918.60
borrowings due
within one
year)
Lease liabilities
(including lease 2,290,955,991. 2,195,252,689.
liabilities due 66 19
with one year)
Total 10,126,017.95 167,255,502.75
.25 .89 .16 .18
(1) Supplementary information to the cash flow statement
In RMB
Amount of the previous
Supplementary information Amount of the current period
period
activities:
Net profit 2,984,630,481.67 758,558,021.48
Add: Allowance for impairment of assets 211,905,799.95 85,409,441.58
Depreciation of fixed assets, oil and gas assets, and
productive biological assets
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Depreciation of right-of-use assets 132,847,584.82 40,262,371.85
Amortization of intangible assets 89,311,435.67 53,908,071.35
Amortization of long-term deferred expenses 114,556,432.79 137,179,890.99
Loss on disposal of fixed assets, intangible assets and
other long-term assets (gain expressed with “-”)
Loss on retirement of fixed assets (gain expressed with “-
-707,611.44 2,052,158.56
”)
Loss on changes in fair value (gain expressed with “-”) -490,690,971.91 -2,536,226.77
Financial expenses (income expressed with “-”) 616,837,493.26 133,939,279.15
Investment loss (income expressed with “-”) -34,845,791.60 5,869,119.00
Decrease in deferred tax assets (increase expressed with “-
”)
Increase in deferred tax liabilities (decrease expressed
-2,064,941.98 -3,170,870.44
with “-”)
Decrease in inventories (increase expressed with “-”) -2,687,181,590.55 -342,665,102.19
Decrease in trade receivables (increase expressed with “-
-1,455,615,091.07 659,746,673.69
”)
Increase in trade payables (decrease expressed with “-”) 1,430,413,825.17 -199,754,422.52
Others 29,519,308.96
Net cash flows from operating activities 2,383,887,276.10 2,500,118,021.28
cash receipts and payments:
Debt-to-capital swap
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
Closing balance of cash 6,947,525,610.48 7,416,577,706.75
Less: Opening balance of cash 6,104,722,626.15 5,343,600,382.37
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 842,802,984.33 2,072,977,324.38
(4) Components of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 6,947,525,610.48 6,104,722,626.15
Incl.: Cash on hand 785,509.81 620,829.32
Bank deposits immediately
available for withdrawal
III. Closing balance of cash and cash
equivalents
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(6) Cash and bank balances not classified as cash and cash equivalents
In RMB
Amount of the previous Reason for not classified as
Item Amount of the current period
period cash and cash equivalents
Term deposits and interest 612,144,715.02 596,283,232.70
Security deposit for bills 240,547,081.05 426,049,076.84
Security deposit for factoring 301,767,307.06 295,079,875.64
Security deposit for letters of
credit May be unavailable for
Security deposit for letters of withdrawal due to pledge,
guarantee freeze or otherwise
Security deposit for futures 120,204,809.28 43,403,710.89
Security deposit for foreign
exchange hedging
Other security deposits 116,144,784.47 116,921,907.99
Total 1,845,226,184.58 1,545,560,882.95
(1) Monetary items denominated in foreign currencies
In RMB
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Cash and bank balances 4,734,651,913.59
Incl.: USD 490,854,948.08 6.8109 3,343,163,965.91
EUR 157,643,503.87 7.7671 1,224,432,858.89
HKD 5,005,920.24 0.86855 4,347,892.02
THB 123,481,257.60 0.2042 25,214,872.80
SGD 2,727,625.30 5.2605 14,348,672.89
NTD 115,424,745.00 0.2133 24,620,098.11
MXN 30,545,575.94 0.3897 11,903,610.94
MAD 5,076,377.87 0.7249 3,679,866.32
JPY 19,760,792.54 0.042045 830,842.52
KRW 62,914,489.00 0.004403 277,012.50
MYR 26,452.32 1.6734 44,265.31
GBP 744.54 9.0145 6,711.66
MOP 290,626.52 0.84324 245,067.91
INR 3,383,577.49 0.07186 243,143.88
HUF 3,571,140,681.67 0.02196 78,422,249.37
CZK 4,659,295.52 0.3198 1,490,042.71
RON 121,173.95 1.4807 179,422.27
TRY 8,239,489.61 0.1458 1,201,317.59
Accounts receivable 7,478,261,282.57
Incl.: USD 867,089,832.05 6.8109 5,905,662,137.11
EUR 192,783,127.36 7.7671 1,497,365,828.52
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
HKD
NTD 298,915,363.00 0.2133 63,758,646.93
CZK 1,508,721.78 0.3198 482,489.23
MXN 22,099,562.79 0.3897 8,612,199.62
THB 186,725.89 0.2042 38,129.43
TRY 16,062,083.32 0.1458 2,341,851.75
Long-term borrowings 2,992,380,232.87
Incl.: USD
EUR
HKD 3,445,259,608.39 0.86855 2,992,380,232.87
Other receivables 248,447,131.09
Incl.: EUR 14,008,480.65 7.7671 108,805,270.06
NTD 348,214,240.00 0.2133 74,274,097.39
USD 6,990,051.03 6.8109 47,608,538.56
MXN 23,347,348.11 0.3897 9,098,461.56
THB 33,838,670.27 0.2042 6,909,856.47
MAD 2,344,512.33 0.7249 1,699,536.99
TRY 352,332.37 0.1458 51,370.06
Short-term borrowings 1,655,338,164.06
Incl.: EUR 112,224,743.34 7.7671 871,660,804.00
USD 92,553,283.86 6.8109 630,371,161.05
THB 750,764,931.51 0.2042 153,306,199.01
Accounts payable 4,545,101,180.52
Incl.: USD 317,420,303.14 6.8109 2,161,917,942.69
EUR 172,516,019.04 7.7671 1,339,949,171.52
THB 2,365,140,596.01 0.2042 482,961,709.71
NTD 2,191,517,459.00 0.2133 467,450,674.00
MXN 64,603,044.27 0.3897 25,175,806.35
MAD 33,054,154.78 0.7249 23,960,956.80
JPY 786,249,776.22 0.042045 33,057,871.84
CZK 8,592,375.94 0.3198 2,747,841.83
HUF 233,386,549.23 0.02196 5,125,168.62
HKD 1,816,170.19 0.86855 1,577,434.62
SEK 2,650.00 0.7003 1,855.80
SGD 11,930.05 5.2605 62,758.03
TRY 7,626,808.71 0.1458 1,111,988.71
Other payables 33,569,833.65
Incl.: EUR 514,977.00 7.7671 3,999,877.86
USD 3,154,586.42 6.8109 21,485,572.65
THB 25,731,423.52 0.2042 5,254,356.68
NTD 12,477,727.00 0.2133 2,661,499.17
JPY 688,073.00 0.042045 28,930.03
MXN 358,217.25 0.3897 139,597.26
Non-current liabilities due
within one year
Incl.: EUR 13,476,563.93 7.7671 104,673,819.70
USD 1,913,712.17 6.8109 13,034,102.22
HKD 2,295,590.03 0.86855 1,993,834.72
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(2) The nature of the lack of convertibility of a currency and its financial impact, the spot exchange rate
adopted and its estimation process, and the risks faced by the Company due to the lack of convertibility
of the currency
□ Applicable N/A
(3) Information about overseas operating entities, including main places of business and functional
currencies of major overseas operating entities, basis for the choice of functional currencies, and reasons
for changes in functional currencies.
□ Applicable N/A
(4) Description of the lack of convertibility between the functional currency for overseas operations and
the reporting currency of the Company
□ Applicable N/A
(1) The Company as the lessee
Applicable □ N/A
Variable lease payments not included in lease liabilities
□ Applicable N/A
Lease expenses under short-term leases and leases of low-value assets using the simplified approach
□ Applicable N/A
Sale and leaseback transactions
Item Current period (RMB) The same period of the previous year (RMB)
Short-term lease expenses 46,706,827.56 24,215,000.85
Total 46,706,827.56 24,215,000.85
Item Current period (RMB) The same period of the previous year (RMB)
Interest expense on lease
liabilities
Total cash outflow for leases 165,199,262.79 35,621,000.00
(2) The Company as the lessor
The Company as lessor under operating leases
Applicable □ N/A
In RMB
Incl.: Income related to variable lease
Item Rental income
payments not included in lease receipts
Rental income 1,334,936.47
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
The Company as lessor under finance leases
□ Applicable N/A
Annual undiscounted lease receipts in the following five years
Applicable □ N/A
In RMB
Annual undiscounted lease receipts
Item
Closing balance Opening balance
Year 1 884,263.00 943,144.17
Year 2 711,342.00 948,715.60
Year 3 276,952.60
VIII. Research and Development Expenses
In RMB
Item Amount of the current period Amount of the previous period
Direct costs 263,769,180.91 250,520,190.78
Labor costs 376,441,301.33 261,695,815.23
Depreciation and amortization 59,175,441.79 45,720,954.81
Others 96,602,406.31 23,530,506.11
Total 795,988,330.34 581,467,466.93
Incl.: Expensed R&D expenses 784,301,317.52
Capitalized R&D expenses 11,687,012.82
IX. Changes in the Scope of Consolidation
Whether the control over any subsidiary was lost as a result of disposal of investment in such subsidiary through a single
transaction
□ Yes No
Whether the control over any subsidiary was lost during the current period as a result of the disposal of investment in such
subsidiary through multiple transactions by steps
□ Yes No
Subsidiaries newly included in the scope of consolidation
Method of Date of acquisition of Percentage of capital
Company name Contribution amount
acquisition of shares contribution
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
shares
Suzhou Dongshan Xinchen
Registered capital of
Industry Investment Newly established 2026/3/31 100.00%
RMB 100,000
Partnership (L.P.)
Sunny Residential Property
Newly established 2026/2/6 USD 35,000,100 100.00%
LLC
Source Photonics
Newly established 2026/1/1 USD 10 100.00%
Organization Inc.
Source Photonics USA
Newly established 2026/3/12 USD 10 100.00%
Management Inc.
Source Photonics United
Newly established 2026/1/1 USD 10 100.00%
States Inc.
Source Photonics (Thailand)
Newly established 2026/2/13 THB 2 million 100.00%
Co., Ltd.
Zhuhai Hengqin Ancong
Information Consulting Acquisition 2026/6/16 RMB 1 million 100.00%
Partnership (L.P.)
X. Interests in Other Entities
(1) Composition of the enterprise group
Limited, Groupe Mécanique Découpage (GMD Group), Source Photonics Holdings (Cayman) Limited, Suzhou Dongshan Display
Inc., etc. into the scope of consolidated financial statements.
Principal place Shareholding
of business Nature of percentage (%) Method of
Subsidiary Registered capital
and place of business acquisition
Direct Indirect
registration
Business
combinations
Multi-Fineline Electronix Business &
USD 1 Singapore 100.00 involving entities not
Singapore Pte. Ltd. investment
under common
control
Business
combinations
MFLEX Suzhou Co., Ltd. USD 268.80 million Suzhou Manufacturing 100.00 involving entities not
under common
control
MFLEX Yancheng Co., Ltd. USD 264.99 million Yancheng Manufacturing 100.00 Established
Business &
DSBJ PTE. LTD. SGD 15,000 Singapore 100.00 Established
investment
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
XI. Government Grants
□ Applicable N/A
Reason for failure to receive expected government grants at the expected time
□ Applicable N/A
Applicable □ N/A
In RMB
Amount of non- Amount
New grants
Opening operating revenue transferred to other Other changes in Closing Related to
Item received in the
balance recognized in the income in the the current period balance assets/income
current period
current period current period
Deferred Related to
income assets
Subtotal 889,843,133.49 130,876,623.04 144,861,131.49 -5,200,973.39 870,657,651.65
Applicable □ N/A
In RMB
Item Amount of the current period Amount of the previous period
Government grants recognized in other
income
Effect of financial interest subsidy on
total profit
Total 163,240,478.04 136,320,207.08
XII. Risks Associated with Financial Instruments
The Company’s objectives of risk management are to maintain a balance between risk and income, minimize the negative
effect of risks on the operating results of the Company and maximize the interests of the shareholders and other equity investors.
On the basis of such objectives of risk management, the Company’s basic risk management policy is designed to identify and
analyze all kinds of risks facing by the Company, set appropriate risk thresholds in risk management, and monitor risks and
adherence to limits in a timely and reliable manner.
The Company faces a variety of risks associated with financial instruments in its daily activities, mainly including credit
risk, liquidity risk and market risk. Below is a summary of the policies for managing such risks considered and approved by the
management.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to
discharge an obligation.
(1) Assessment of credit risk
At each balance sheet date, the Company assesses whether the credit risk of a financial instrument has increased
significantly since initial recognition. In assessing whether the credit risk has increased significantly since initial recognition, the
Company takes into account reasonable and supportable information, which is available without undue cost or effort, including
qualitative and quantitative analysis based on historical data, external credit risk rating, and forward-looking information. The
Company determines the changes in default risk of financial instruments during their estimated lifetime through a comparison of
the default risk at the balance sheet date and the initial recognition date, on an individual or collective basis.
The Company determines that the credit risk of a financial instrument has increased significantly when one or more of the
following qualitative and quantitative standards are met:
remaining lifetime has risen by more than a certain percentage compared with the initial recognition; and/or
and present or expected changes in technology, market, economy or legal environment that will have a material adverse effect on
the debtor’s ability to repay.
(2) Definition of default and credit-impaired assets
A financial instrument is in default or credit impaired when one or more of the following conditions are met:
to the debtor a concession that the creditors would not otherwise consider.
The key factors in the measurement of expected credit losses include the probability of default, loss given default, and
exposure to default risk. The Company has developed a model of the probability of default, loss given default and exposure to
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
default risk on the basis of quantitative analysis of historical data (e.g. counterparty rating, guarantee measures and collateral type,
repayment method, etc.) and forward-looking information.
for impairment loss on financial instruments.
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control such risks,
the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other monetary capital in financial institutions with relatively high credit
ratings, so its credit risk is relatively low.
(2) Accounts receivable
The Company performs credit assessments on customers using credit settlement on an ongoing basis. The Company selects
approved and creditworthy customers based on the result of credit assessment, and monitors the balance of accounts receivable
from them on an ongoing basis, to avoid significant risk of doubtful accounts.
As the Company only deals with approved and creditworthy third parties, no collateral is required. The concentration of
credit risks are managed customer by customer. As of June 30, 2026, the Company faced certain credit concentration risks. In
particular, 32.09% (December 31, 2025: 35.67%) of the Company’s accounts receivable came from the top 5 customers, without
any collateral or other credit enhancement.
The Company’s maximum exposure to credit risk is the carrying value of each financial asset in the balance sheet.
(II) Liquidity risk
Liquidity risk is the risk that the Company may not have enough cash to satisfy its obligation to deliver cash or other
financial assets, due to the inability to liquidate financial assets at fair value in a timely manner, or failure of counterparties to
discharge their contract liabilities, acceleration of debts, failure to generate expected cash flows, or otherwise.
In order to control such risk, the Company utilizes a variety of financing tools such as settlement by means of notes, bank
loans, etc., combines long-term and short-term financing to optimize financing structure, and maintains a balance between
financing sustainability and flexibility. The Company has obtained lines of credit from many commercial banks to satisfy its
working capital requirements and capital expenditures.
Financial liabilities classified by remaining maturity
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
In RMB
Closing balance
Item Undiscounted contract
Carrying value Within 1 year 1-3 years Over 3 years
amount
Bank loans 21,767,774,003.99 23,020,899,836.06 12,678,000,867.70 5,512,821,414.47 4,830,077,553.90
Financial
liabilities held 181,580,627.27 181,580,627.27 181,580,627.27
for trading
Notes payable 616,705,866.60 616,705,866.60 616,705,866.60
Accounts
payable
Other payables 154,547,241.39 154,547,241.39 154,547,241.39
Lease liabilities
(including non-
current 2,195,252,689.19 2,437,933,627.14 310,612,385.42 867,105,733.99 1,260,215,507.73
liabilities due
within one year)
Long-term
payables
(including non-
current
liabilities due
within one year)
Subtotal 40,651,366,079.36 42,147,172,849.38 29,676,952,639.30 6,379,927,148.46 6,090,293,061.63
(Continued)
In RMB
Balance at the end of the previous year
Item Undiscounted contract
Carrying value Within 1 year 1-3 years Over 3 years
amount
Bank loans 17,345,850,770.59 18,447,118,979.42 11,256,575,000.94 2,692,839,996.18 4,497,703,982.29
Financial
liabilities held 46,545,937.17 46,545,937.17 46,545,937.17
for trading
Notes payable 1,002,812,950.68 1,002,812,950.68 1,002,812,950.68
Accounts
payable
Other
payables
Lease
liabilities
(including
non-current 2,290,955,991.66 2,507,799,521.86 591,089,880.28 1,237,264,337.10 679,445,304.48
liabilities due
within one
year)
Long-term
payables
(including
non-current
liabilities due
within one
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
year)
Subtotal 34,462,754,350.66 35,780,866,089.69 26,673,612,469.63 3,930,104,333.28 5,177,149,286.77
(III) Market Risk
Market risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in market
prices. Market risk mainly includes interest risk and foreign exchange risk.
Interest risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in market
interest rates. Interest-bearing financial instruments with fixed interest rates expose the Company to fair value interest rate risk,
while interest-bearing financial instruments with floating interest rates expose the Company to cash flow interest rate risk. The
Company determines the proportion of fixed-rate financial instruments and floating-rate financial instruments based on the market
environment, and reviews and monitors the appropriateness of its portfolio of financial instruments on a regular basis. The cash
flow interest rate risk that the Company faces is primarily associated with the floating-rate bank loans owed by the Company.
As of June 30, 2026, the Company had bank loans of RMB 7,178,928,639.23 (December 31, 2025: RMB 6,241,579,337.64)
on which the interests were calculated on a floating interest rate. Supposing the interest rate changes by 50 basic points while other
variables remain unchanged, the Company’s total profit and shareholders’ interest will not be materially affected.
Foreign exchange risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes
in exchange rates. The Company’s foreign exchange risk relates mainly to foreign currency denominated monetary assets and
liabilities. When a short-term imbalance occurs on foreign currency denominated assets and liabilities, the Company may trade
foreign currencies at market exchange rates when necessary, in order to maintain the net risk exposure at an acceptable level.
See Note V(V)1 to the Financial Statements for details of foreign currency denominated monetary assets and liabilities as of
the end of the reporting period.
(1) The Company has hedging businesses for risk management
Applicable □ N/A
Economic
Qualitative and Effective Effect of the
Corresponding risk relationship
quantitative realization of the corresponding
Item management between the
information of expected risk hedging activity on
policy and target hedged item and
hedged risks management target the risk exposure
the hedging
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
instrument
To avoid potential
risks against the The
Company’s implementation of
expected the hedging
production and businesses gives
operation due to full play to the
the fluctuation in The hedged risk is The Company has hedging and value
The future
the prices of the risk of price set up relevant preservation
contracts change in
copper, aluminum fluctuation of internal control features of the
the reverse
and gold and copper and measures for futures and
direction due to
reduce the aluminum. See the hedging to for derivative market,
Cash flow hedging the same risks of
fluctuation in the description in ongoing tracing of thereby avoiding
– future contracts price fluctuation of
operating cash Notes V.43 to the hedging businesses the risks of price
copper and
flow caused by the Financial and ensuring the fluctuation due to
aluminum
fluctuation in the Statements for realization of the the price
expected to be
prices of copper, quantitative expected risk fluctuation in
purchased and sold
aluminum and information. management target commodities and
gold, the Company foreign exchange
had hedging and reducing the
businesses of effect on the
copper and normal operation
aluminum of the Company
commodities.
The
implementation of
the hedging
The expected sales businesses gives
to be settled in full play to the
The expected sales USD are in the The Company has hedging and value
Manage the to be settled in same foreign set up relevant preservation
Company’s risks USD are subject to currency internal control features of the
exposure of foreign exchange corresponding to measures for futures and
Cash flow hedging expected sales of risk exposure. See the future foreign hedging to for derivative market,
– foreign exchange foreign exchange the description in exchange ongoing tracing of thereby avoiding
future contracts to be settled in Notes V.43 to the contracts, where hedging businesses the risks of price
USD by using Financial the basic variable and ensuring the fluctuation due to
future foreign Statements for of the hedging realization of the the price
exchange contracts quantitative instrument and the expected risk fluctuation in
information. hedged item is the management target commodities and
exchange rate of foreign exchange
USD and reducing the
effect on the
normal operation
of the Company
(1) Categories of transfer types
Applicable □ N/A
In RMB
Nature of transferred Amount of transferred Basis for determining
Types of transfer Derecognition
financial assets financial assets derecognition
Note discounting Accounts receivable 319,544,462.73 Derecognized All most all the risks
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
financing and returns have been
transferred
All most all the risks
Note endorsement Notes receivable 4,659,832.99 Derecognized and returns have been
transferred
All most all the risks
Accounts receivable
Note endorsement 780,034,762.06 Derecognized and returns have been
financing
transferred
All most all the risks
Factoring of accounts
Accounts receivable 275,862,379.42 Derecognized and returns have been
receivable
transferred
All most all the risks
Factoring of accounts
Accounts receivable 859,452,468.45 Not derecognized and returns have been
receivable
reserved
Total 2,239,553,905.65
(2) Financial assets derecognized due to transfer
Applicable □ N/A
In RMB
Method of transferring Amount of the financial assets Gains or losses related to the
Item
financial assets derecognized derecognition
Accounts receivable financing Endorsement/discounting 1,099,579,224.79 164,414.06
Notes receivable Endorsement 4,659,832.99
Accounts receivable Factoring 275,862,379.42 458,275.83
Total 1,380,101,437.20 622,689.89
(3) Financial assets transferred with assets with continuous involvement
Applicable □ N/A
In RMB
Amount of assets arising from Amount of liabilities arising
Item Method of assets transfer
continuous involvement from continuous involvement
Accounts receivable Factoring 859,452,468.45 859,452,468.45
Total 859,452,468.45 859,452,468.45
XIII. Fair Value Disclosures
In RMB
Closing balance of fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Recurring fair value
-- -- -- --
measurement
fair value through
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
profit or loss
(2) Investment in
equity instruments
(3) Derivative financial
assets
Bank wealth
management product
financing
equity instruments
Total assets measured
at fair value on a 770,019,829.28 155,000,000.00 888,523,285.09 1,813,543,114.37
recurring basis
(VI) Financial
liabilities held for 181,580,627.27 181,580,627.27
trading
Total liabilities
measured at fair value 181,580,627.27 181,580,627.27
on a recurring basis
II. Fair value
measurement on a non- -- -- -- --
recurring basis
measurements within Level 1
based on the forward exchange rates as confirmed with the transaction bank at the end of the reporting period.
other equity instrument investments not listed. In the absence of a material change in the operating environment, operating
conditions, and financial conditions of the investee, the Company uses the investment costs as the reasonable estimate of the fair
value.
XIV. Related Parties and Related-party Transactions
The ultimate controllers of the Company are YUAN Yonggang, YUAN Yongfeng, and YUAN Fugen.
Relationship with the Percentage of ownership Percentage of voting rights held
Name of shareholder
Company interest in the Company (%) in the Company (%)
YUAN Yonggang, YUAN Actual controllers 33.26 33.26
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Yongfeng, and YUAN Fugen
See the description in Notes VII for details about the Company’s subsidiaries.
See the description in Notes VII for details about significant joint ventures or associates of the Company.
Other joint ventures or associates that have carried out related-party transactions with the Company in the current period or the
previous periods with balances recorded in the current period:
Name of joint venture or associate Relationship with the Company
Suzhou Toprun Electric Equipment Co., Ltd. Associate
Suzhou Dongcan Optoelectronics Technology Co., Ltd. Associate
Multek International Development Limited Associate
Name of other related party Relationship with the Company
Hai Dixin Semiconductor (Nantong) Co., Ltd. Invested company
Haidike (Nantong) Photoelectric Technology Co., Ltd. Invested company
Anhui Landun Photoelectron Co., Ltd. A company controlled by the actual controllers of the Company
Shanghai Corkuna New Material Technologies Co., Ltd. A company controlled by the actual controllers of the Company
Suzhou Corkuna New Material Technologies Co., Ltd. A company controlled by the actual controllers of the Company
Hefei Anhui Software Co., Ltd. A company controlled by the actual controllers of the Company
(1) Related-party commodity and service transactions
Purchase of goods and receipt of services from related parties
In RMB
Transaction Whether or not
Subject Amount of the Amount of the
Related party quota exceed the
matter current period previous period
approved transaction quota?
Suzhou Dongcan Optoelectronics Purchase
Technology Co., Ltd. of goods
Shanghai Corkuna New Material Purchase
Technologies Co., Ltd. of goods
Suzhou Corkuna New Material Purchase
Technologies Co., Ltd. of goods
Haidike (Nantong) Photoelectric Purchase
Technology Co., Ltd. of goods
Purchase
Hefei Anhui Software Co., Ltd. of 1,752,212.40
detectors
Sale of goods and rendering of services to related parties
In RMB
Amount of the previous
Related party Subject matter Amount of the current period
period
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Suzhou Toprun Electric Equipment
Sale of goods 61,415.93
Co., Ltd.
Suzhou Toprun Electric Equipment
Software and services 102,358.49 24,637.14
Co., Ltd.
Suzhou Dongcan Optoelectronics
Sale of goods 1,504.42 22,188.29
Technology Co., Ltd.
Suzhou Dongcan Optoelectronics
Rendering of services 8,906.18
Technology Co., Ltd.
Anhui Landun Photoelectron Co.,
Sale of goods 11,806.50 75,600.00
Ltd.
Haidike (Nantong) Photoelectric
Sale of goods 3,443,286.21
Technology Co., Ltd.
(4) Related-party guarantees
In RMB
Whether the obligation
Amount Effective date of Expiry date of
Obligor guaranteed has been
guaranteed guarantee guarantee
discharged
Suzhou Toprun Electric Equipment
Co., Ltd.
Suzhou Toprun Electric Equipment
Co., Ltd.
Suzhou Toprun Electric Equipment
Co., Ltd.
(7) Remunerations of key officers
In RMB
Item Amount of the current period Amount of the previous period
Remunerations of key officers 14,861,400.00 11,563,600.00
(1) Amounts receivable from related parties
In RMB
Closing balance Opening balance
Item Related party Allowance for Allowance for
Book balance Book balance
doubtful accounts doubtful accounts
Accounts Suzhou Dongcan Optoelectronics
receivable Technology Co., Ltd.
Accounts Suzhou Toprun Electric
receivable Equipment Co., Ltd.
Accounts Hai Dixin Semiconductor
receivable (Nantong) Co., Ltd.
Accounts Anhui Landun Photoelectron Co.,
receivable Ltd.
Accounts Haidike (Nantong) Photoelectric
receivable Technology Co., Ltd.
Other Hai Dixin Semiconductor
receivables (Nantong) Co., Ltd.
Other Multek International 13,625,205.44 681,260.27 13,625,205.44 681,260.27
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
receivables Development Limited
(2) Amounts payable to related parties
In RMB
Item Related party Closing book balance Opening book balance
Accounts Suzhou Dongcan Optoelectronics Technology Co.,
payable Ltd.
Accounts Shanghai Corkuna New Material Technologies Co.,
payable Ltd.
Accounts
Suzhou Corkuna New Material Technologies Co., Ltd. 23,852,264.17 27,479,253.79
payable
Accounts
Hefei Anhui Software Co., Ltd. 1,980,000.00
payable
XV. Share-based Payments
Applicable □ N/A
In RMB
Exercised in the Vested in the Expired in the
Granted in the current period
Type of grantees current period current period current period
Number Amount Number Amount Number Amount Number Amount
Management staff 2,715,456.00 106,581,514.25
R&D personnel 159,236.00 6,250,000.00
Sales staff 174,009.00 6,830,000.00
Total 3,048,701.00 119,661,514.25
Outstanding share options or other equity instruments at the end of the current period:
□ Applicable N/A
Applicable □ N/A
In RMB
Method for determining the fair value of equity Closing price of the Company’s stock at the date the employee stock
instruments at the grant date ownership plan was approved by the general meeting – transfer price
Important parameters for determining the fair value of Closing price of the Company’s stock at the date the employee stock
equity instruments at the grant date ownership plan was approved by the general meeting – transfer price
Basis for determining the number of exercisable equity Confirmation of Securities Transfer Registration issued by China
instruments Securities Depository and Clearing Co., Ltd. Shenzhen Branch
Reason of significant differences between the current
N/A
estimates and previous estimates
Aggregate amount of equity-settled share-based payments
recorded in capital reserve
Total amount of equity-settled share-based payments
recognized in expenses in the current period
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
□ Applicable N/A
Applicable □ N/A
In RMB
Type of grantees Equity-settled share-based payments Cash-settled share-based payments
Management staff 26,292,602.67
R&D personnel 1,541,813.02
Sales staff 1,684,893.27
Total 29,519,308.96
XVI. Commitments and Contingencies
As of the balance sheet date, the Company did not have any significant commitment needing to be disclosed.
(1) Significant contingencies as of the balance sheet date
As of the balance sheet date, the Company did not have any contingency needing to be disclosed.
(2) Whether the Company does not have any significant contingency needing to be disclosed
The Company does not have any significant contingency needing to be disclosed.
XVII. Subsequent Events
XVIII. Other Significant Information
The Company mainly engages in the sale of electronic circuit products, optical transceivers (including optical chips),
photoelectric display modules, precision components, and other products, and manages and assesses its operating results by taking
such businesses as a whole. Therefore, the Company has no segment information to be disclosed. For breakdown information
about the Company’s revenue, see the description in Notes V(II)1 to the Financial Statements.
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
XIX. Notes to Key Items of the Standalone Financial Statements
(1) Accounts receivable by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 1,567,856,574.77 1,662,114,718.95
Within 6 months 1,329,632,648.57 1,546,087,059.15
Over 3 years 90,175,486.67 87,344,953.06
Over 5 years 43,108,329.91 56,301,095.52
Total 2,913,342,131.96 3,072,947,765.80
(2) Accounts receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Book balance Book balance
Type accounts Carrying accounts Carrying
Ratio of value Ratio of value
Amount % Amount Amount % Amount
provision provision
Allowance
recognized 1.22% 100.00% 1.16% 100.00%
individually
Incl.:
Allowance
recognized 98.78% 1.63% 98.84% 2.28%
collectively
Incl.:
Total 100.00% 2.83% 100.00% 3.41%
Accounts receivable with allowance for doubtful accounts recognized collectively by category name: group of related parties
within the scope of consolidation, and aging group
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Group of related parties
within the scope of 1,668,636,658.80
consolidation
Aging group 1,209,127,011.62 46,784,266.87 3.87%
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Total 2,877,763,670.42 46,784,266.87
Accounts receivable with allowance for doubtful accounts recognized collectively by category name: age
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Age
Within 6 months 1,136,687,775.28 5,683,438.88 0.50%
Over 3 years 36,046,176.50 36,046,176.50 100.00%
Total 1,209,127,011.62 46,784,266.87
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
□ Applicable N/A
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
Changes in the current period
Opening
Type Recovered or Closing balance
balance Recognized Written off Others
reversed
Allowance
recognized 35,578,461.54 35,578,461.54
individually
Allowance
recognized 69,138,257.92 484,439.95 22,838,431.00 46,784,266.87
collectively
Total 104,716,719.46 484,439.95 22,838,431.00 82,362,728.41
(4) Accounts receivable actually written off in the current period
(5) The top 5 debtors in terms of closing balance of accounts receivable and contract assets
In RMB
Closing balance of
% of total closing
Closing Total closing allowance for
balance of
Closing balance of balance of balance of accounts doubtful accounts
Company name accounts
accounts receivable contract receivable and receivable and
receivable and
assets contract assets impairment of
contract assets
contract assets
Mutto Optronics Technology
Co., Ltd.
Top 2 450,193,441.27 450,193,441.27 15.45% 2,250,967.21
MFLEX Yancheng Co., Ltd. 309,398,965.63 309,398,965.63 10.62%
DSBJ PTE. Ltd. 288,698,159.61 288,698,159.61 9.91%
Top 5 148,524,287.83 148,524,287.83 5.10% 743,605.38
Total 2,058,683,207.38 2,058,683,207.38 70.66% 2,994,572.59
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
In RMB
Item Closing balance Opening balance
Dividends receivable 1,399,081,471.06 1,430,532,996.21
Other receivables 5,646,026,108.63 4,833,638,901.75
Total 7,045,107,579.69 6,264,171,897.96
(2) Dividends receivable
In RMB
Item (or investee) Closing balance Opening balance
Hong Kong Dongshan Holding Limited 983,081,471.06 1,014,532,996.21
Yancheng Dongshan Precision Manufacturing Co., Ltd. 266,000,000.00 266,000,000.00
Suzhou Dongshan Display Inc. 80,000,000.00 80,000,000.00
Suzhou Dongyue New Energy Technology Co., Ltd. 70,000,000.00 70,000,000.00
Total 1,399,081,471.06 1,430,532,996.21
In RMB
Whether or not
Reason for failure impaired and the
Item (or investee) Closing balance Age
to collect basis for
determination
To support the
Hong Kong Dongshan Holding Limited 887,728,871.06 Over 1 year development of
the subsidiary
To support the
Yancheng Dongshan Precision Manufacturing
Co., Ltd.
the subsidiary
Total 1,153,728,871.06
□ Applicable N/A
(3) Other receivables
In RMB
Nature of accounts Closing book balance Opening book balance
Current accounts 5,636,770,873.16 4,829,937,651.06
Security deposit 905,000.00 5,000.00
Loan and reserve fund 8,005,948.23 1,947,026.93
Temporary payment receivable 5,360,739.25 6,377,782.89
Total 5,651,042,560.64 4,838,267,460.88
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 2,935,005,809.15 4,699,261,104.15
Over 3 years 4,433,756.46 4,433,756.46
Over 5 years 2,668,756.46 1,418,107.21
Total 5,651,042,560.64 4,838,267,460.88
In RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Book balance Book balance
Type accounts Carrying accounts Carrying
Ratio of value Ratio of value
Amount % Amount Amount % Amount
provision provision
Incl.:
Allowance
recognized 100.00% 0.10%
collectively
Incl.:
Total 60.64 100.00% 1 0.09% 08.63 100.00% 0.10%
Other receivables with allowance for doubtful accounts recognized collectively by category name: group of related parties within
the scope of consolidation, and aging group
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Group of related parties
within the scope of
consolidation 5,636,770,873.16
Aging group 14,271,687.48 5,016,452.01 35.15%
Incl.: Within 1 year 8,021,950.88 401,097.54 5.00%
Over 3 years 4,433,756.46 4,433,756.46 100.00%
Total 5,651,042,560.64 5,016,452.01
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
In RMB
Stage I Stage II Stage III
Allowance for doubtful
accounts
credit loss loss (not credit impaired) (credit impaired)
Balance as at January 1, 2026 194,802.67 4,433,756.46 4,628,559.13
In the current period, the
balance as at January 1, 2026
- Transferred to stage II -144,616.20 144,616.20
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Recognized 350,911.07 36,981.81 387,892.88
Balance as at June 30, 2026 401,097.54 181,598.01 4,433,756.46 5,016,452.01
Significant changes in the book balance of allowance for doubtful accounts in the current period
□ Applicable N/A
In RMB
Closing
% of total closing balance of
Nature of
Company name Closing balance Age balance of other allowance for
account
receivables doubtful
accounts
Yancheng Dongshan Precision Current Within 1
Manufacturing Co., Ltd. accounts year
Yancheng Dongshan Precision Current
Manufacturing Co., Ltd. accounts
Mutto Optronics Technology Current Within 1
Co., Ltd. accounts year
Mutto Optronics Technology Current
Co., Ltd. accounts
Suzhou Dongyue New Energy Current Within 1
Technology Co., Ltd. accounts year
Suzhou Yongchuang
Current Within 1
Communication Technology 109,656,305.94 1.94%
accounts year
Co., Ltd.
Suzhou Yongchuang
Current
Communication Technology 347,919,477.77 1-2 years 6.16%
accounts
Co., Ltd.
Dongguan Dongshan Precision Current Within 1
Manufacturing Co., Ltd. accounts year
Dongguan Dongshan Precision Current
Manufacturing Co., Ltd. accounts
Total 3,841,288,032.34 67.98%
In RMB
Closing balance Opening balance
Item Allowance for Allowance for
Book balance Carrying value Book balance Carrying value
impairment loss impairment loss
Investments in 10,373,456,278 10,239,766,278 10,315,147,573 10,181,457,573
subsidiaries .08 .08 .40 .40
Investments in
associates and 103,442,211.66 17,507,056.47 85,935,155.19 108,246,781.23 17,507,056.47 90,739,724.76
joint ventures
Total 151,197,056.47 151,197,056.47
.74 .27 .63 .16
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(1) Investments in subsidiaries
In RMB
Opening Changes in the current period Closing
Opening balance of Closing balance of
balance allowance Allowance balance allowance
Investee Additional Reduced for
(carrying for Others (carrying for
value) impairment investment investment impairment value) impairment
loss loss loss
Dongguan
Dongshan
Precision 78,944.64
Manufacturing Co.,
Ltd.
MFLEX Shanghai 2,023,777.3 2,023,777.3
Co., Ltd. 0 0
Shenzhen Qindao
Dongchuang 100,000,00 100,000,00
Investment 0.00 0.00
Partnership (L.P.)
Suzhou RF Top
Electronic 372,858,08 372,863,02
Communication 3.14 1.22
Co., Ltd.
Suzhou Chengjia
Precision 80,109,368. 80,109,368.
Manufacturing Co., 24 24
Ltd.
Suzhou Dongdai
Electronic 1,530,000.0 1,530,000.0
Technology Co., 0 0
Ltd.
Suzhou Dongke
Enterprise 152,389,09 152,389,09
Management Co., 6.00 6.00
Ltd.
Suzhou Dongkui 12,100,000. 12,100,000.
Lighting Co., Ltd. 00 00
Suzhou Jebson
Intelligent
Technology Co.,
Ltd.
Suzhou
Yongchuang
Communication
Technology Co.,
Ltd.
HongKong
Dongshan
Precision Union
Opoelectronic Co.
Limited
Hong Kong
Dongshan Holding
Limited
Yancheng 1,093,619,6 1,093,619,6
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Dongshan 10.92 10.92
Precision
Manufacturing Co.,
Ltd.
Yancheng
Dongshan Business 3,067,267.2 3,109,192.4
Management Co., 0 4
Ltd.
Yancheng
Dongshan
Communication
Technology Co.,
Ltd.
Suzhou Dongshan 1,382,684,0 1,382,960,2
Display Inc. 03.83 90.75
Suzhou Dongshan
Industrial 20,010,000. 29,990,000. 50,000,000.
Investment Co., 00 00 00
Ltd.
Shanghai Dongxin
New Energy 80,000,000. 80,000,000.
Technology Co., 00 00
Ltd.
Yancheng
Dongchuang
Precision 98,677.56
Manufacturing Co.,
Ltd.
Suzhou Dongyue
New Energy 500,000,00 500,646,35
Technology Co., 0.00 8.56
Ltd.
Multek China
Limited
Mutto Optronics
Technology Co., 824,778.48 478,593.08
Ltd.
MFLEX Suzhou 7,193,259.6 6,744,564.9 13,937,824.
Co., Ltd. 0 2 52
Yancheng Mutto
Optronics
Technology Co.,
Ltd.
MFLEX Yancheng 4,175,696.8 4,274,380.9
Co., Ltd. 9 7
Multek Industries 2,425,059.7 3,239,157.8
Limited 2 0
Dongwei Smart
Suzhou Co., Ltd.
Multek Zhuhai
Enterprise 18,031,597. 18,958,814.
Management Co., 04 30
Ltd.
Yancheng
Dongshan
Optoelectronics
Technology Co.,
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Ltd.
Suzhou Dongchen
Ecological
Technology Co.,
Ltd.
Chaowei
Microelectronics
(Yancheng) Co.,
Ltd.
Total
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
(2) Investments in associates and joint ventures
In RMB
Opening Changes in the current period Closing
Opening Closing
balance of Investment Adjustment to Declared cash Allowance balance of
balance Other balance
Investee allowance for Additional Reduced income or loss other dividends or for allowance for
(carrying (carrying
impairment investment investment under the equity comprehensive changes in profit impairment
Others impairment
value) equity value)
loss method income distribution loss loss
I. Joint ventures
II. Associates
Suzhou Toprun Electric
Equipment Co., Ltd.
Shenzhen Nanfang
Blog Technology 17,507,056.47 17,507,056.47
Development Co., Ltd.
Suzhou LEGATE
Intelligent Equipment 10,247,171.89 -998,948.96 9,248,222.93
Corp., Ltd.
Suzhou Dongcan
Optoelectronics 2,693,102.45 -152,739.16 2,540,363.29
Technology Co., Ltd.
Jiangsu Nangao
Intelligent Equipment
Innovation Center Co.,
Ltd.
Jiaozuo Songyang
Photoelectric 22,181,612.25 -1,143,544.82 21,038,067.43
Technology Co., Ltd.
Suzhou Yongxin
Jingshang Venture 132,744.71
Capital Partnership 107,953.98
(L.P.)
Subtotal 90,739,724.76 17,507,056.47 1,674,130.44
-2,997,694.42 - 132,744.71 85,935,155.19 17,507,056.47
Total 90,739,724.76 17,507,056.47 1,674,130.44
-2,997,694.42 - 132,744.71 85,935,155.19 17,507,056.47
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
In RMB
Amount of the current period Amount of the previous period
Item
Revenue Cost Revenue Cost
Primary business 2,362,015,750.86 2,197,011,699.38 2,007,552,995.18 1,910,964,376.03
Other businesses 52,052,716.61 10,112,337.41 27,726,642.37 12,291,548.13
Total 2,414,068,467.47 2,207,124,036.79 2,035,279,637.55 1,923,255,924.16
In RMB
Item Amount of the current period Amount of the previous period
Income from long-term equity
-2,997,694.42 -3,445,956.20
investments under the equity method
Bank wealth management product 640,200.00 160,800.00
Total -2,357,494.42 -3,285,156.20
XX. Supplementary Information
Applicable □ N/A
In RMB
Item Amount Remark
Gain or loss from disposal of non-current assets -6,925,770.36
Government grants recognized in profit or loss (excluding the government grants that
are closely related to the business of the Company, conform to the applicable policies
of the country, are provided in accordance with the established standards, and have
long-term effects on the Company’s profit or loss)
Gain or loss on changes in fair value of financial assets and financial liabilities held by
non-financial entities, and gain or loss on disposal of financial assets and financial 506,057,632.55
liabilities, except for effective hedges held in the ordinary course of business
Other non-operating revenues and expenses -15,598,890.08
Income from
Other gain or loss within the meaning of non-recurring gain or loss 23,143,740.00 debt
restructuring
Less: Effect on income tax 144,213,305.14
Effect on minority interests (after tax) 337,810.58
Total 477,317,288.78 --
Other items of gain or loss within the meaning of non-recurring gain or loss:
□ Applicable N/A
We do not have any other item of gain or loss within the meaning of non-recurring gains or losses.
Classification of any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information
Disclosure by Companies Publicly Offering Securities – Non-recurring Gain or Loss as recurring gain or loss:
□ Applicable N/A
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2026
Weighted Earnings per share
Profit for the reporting period average return Basic earnings per share Diluted earnings per share
on net assets (RMB/share) (RMB/share)
Net profit attributable to ordinary shareholders
of the Company
Net profit attributable to ordinary shareholders
of the Company after deduction of non- 10.80% 1.36 1.36
recurring gain or loss
(1) Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs
and the IFRS
□ Applicable N/A
(2) Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs
and overseas accounting standards
□ Applicable N/A
