Non-recurring gains and losses

Our other income and gains decreased by 72.1% from RMB37.2 million in 2022 to RMB10.4 million in 2023, primarily because the government grants we received significantly decreased from 2022 to 2023 as most of those government grants we received in 2022 are one-off and non-recurring.

Financial Information · p. 392

Our other net loss increased significantly from RMB0.3 million for the year ended December 31, 2022 to RMB4.1 million for the year ended December 31, 2023, primarily due to increased losses of RMB4.0 million from disposal of property, plant and equipment, primarily reflecting equipment-related losses resulting from business location optimization and production bases adjustment initiatives.

Financial Information · p. 242

Such changes were primarily attributable to a decrease of RMB4.5 million in losses from disposal of property, plant and equipment as we completed most of our production bases consolidation initiatives in 2023.

Financial Information · p. 240

Our net other gains increased from approximately RMB0.1 million in FY2024 to approximately RMB35.5 million in FY2025, primarily due to the net gains on disposal of investment properties of approximately RMB43.1 million in FY2025 as we disposed one of our investment properties in Hong Kong to an entity owned as to 80% by Ms. Yeung and 20% by Ms. Fung (our Controlling Shareholders).

Financial Information · p. 286

The consideration was determined on an arm’s length basis taking into account the valuation report prepared by an independent third party valuer.

Financial Information · p. 286

In FY2025, we had gains from disposal of one of our investment properties located in Hong Kong amounting to approximately RMB43.1 million and such gains are not subject to profits tax pursuant to the applicable laws and regulations; as a result, our effective tax rate decreased from 18.8% in FY2024 to 13.8% in FY2025.

Financial Information · p. 282

Our other income and gains decreased by 39.2% from RMB35.4 million in the nine months ended September 30, 2024 to RMB49.3 million in the nine months ended September 30, 2025, primarily due to lower foreign exchange gains, as the depreciation of Renminbi against the US dollar in the first half of 2024 did not recur in the same period of 2025.

Financial Information · p. 195

Our other income and gains decreased by 61.5% from RMB84.7 million in 2022 to RMB32.6 million in 2023, primarily due to the decrease in gain on foreign exchange differences, as 2023 experienced a period of Renminbi appreciation at the beginning of the year then experienced the RMB depreciation, compared to the more notable depreciation of RMB in 2022.

Financial Information · p. 195

Our other income and gains increased by 35.7% from RMB82.0 million in 2024 to RMB111.2 million in 2025, primarily due to (i) a gain on disposal of items of property, plant and equipment of RMB39.1 million recognized in 2025 relating to our disposal of certain production facilities and land use rights in the PRC; and (ii) net foreign exchange gains of RMB10.5 million in 2025, as compared to nil in 2024, which was mainly due to the increase of value of certain assets denominated in foreign currencies caused by the change of foreign exchange rates

Financial Information · p. 221

During the Track Record Period, our net fair value gains on financial assets at fair value through profit or loss mainly included a one-time fair value gain in 2023 from our unlisted equity investment.

Financial Information · p. 218

We have collected the mandated repurchase amount from the counterparty in 2024 accordingly.

Financial Information · p. 218

We incurred a net reversal of impairment losses on financial and contract assets of RMB25.9 million in 2023, a net impairment loss of RMB6.5 million in 2024, and a net reversal of impairment loss of RMB0.5 million in 2025.

Financial Information · p. 218

Such a difference was mainly because we previously recorded impairment losses for certain trade and bill receivables of two customers in relation to our power station EPC business, which were collected in 2023, leading to the reversal of impairment losses for these trade and bill receivables in that year.

Financial Information · p. 225

We recorded net impairment losses on financial assets and contract assets of RMB6.5 million in 2024, primarily attributable to a payment made in connection with a potential investment project in Southeast Asia, which did not proceed.

Financial Information · p. 222

As of December 31, 2023, the closing share price of Red Phase was RMB6.7 per share and we recognized an impairment loss of RMB211.3 million for the year ended December 31, 2023.

Financial Information · p. 202

A compensation liability of approximately RMB186.1 million in respect of the non-achievement of the Profit Guarantee was recognized accordingly.

Financial Information · p. 202

The losses were primarily attributable to impairments recorded on an associate as a result of a sharp decline in its stock price.

Financial Information · p. 209

Our other income and gains decreased by 69.5% from RMB13.2 million for the year ended December 31, 2023 to RMB4.0 million for the year ended December 31, 2024.

Financial Information · p. 335

(ii) the ending of the tax incentives for taxpayers of productive services on value-added tax on December 31, 2023, such that we no longer enjoyed the additional 5% value input tax deduction only leaving one entity to enjoy the 5% value input tax deduction for taxpayers of advanced manufacturing enterprise in 2024; and (iii) a reduction in government grants received.

Financial Information · p. 335

Our income tax expense increased from RMB17.5 million in 2023 to RMB34.2 million in 2024, primarily attributable to the recognition of withholding tax expenses on distributable profits in 2024.

Financial Information · p. 233

Therefore, the deferred tax liability of RMB16,080,000 was appropriately recognized in 2024 to reflect the expected tax consequences of the planned dividend distribution, even though the formal dividend declaration occurred in January 2025.

Financial Information · p. 227

Our other net income/(loss) mainly consists of (i) government grants, (ii) net (losses)/gains on disposal of property and equipment and intangible assets, (iii) value added tax and other tax refund, (iv) interest income, (v) litigation compensation income representing the one-off litigation compensation income from a successful lawsuit in 2023 and (vi) others.

Financial Information · p. 206

Litigation compensation income | 39,048 | 68.0 | – | – | – | – | – | –

Financial Information · p. 206

Our other net income decreased by 88.7% from RMB57.4 million in 2023 to RMB6.5 million in 2024, primarily due to the one-off litigation compensation income from a successful lawsuit against the developer and supplier in 2023.

Financial Information · p. 214

The deemed disposal occurred in 2024 due to the increase in shareholding from 34.5% to 51.8% by the third-party partner, as a result of which our shareholding of the subsidiary was reduced from 51% to 37.5% and thus we no longer held control over the subsidiary after both parties’ negotiation and mutual agreement.

Financial Information · p. 296

As a result, this was considered as a deemed disposal.

Financial Information · p. 296

(ii) a decrease in government grants as the non-recurring government grants we received decreased from RMB9.7 million in 2023 to RMB2.0 million in 2024.

Financial Information · p. 313

(ii) a decrease in government grants as the non-recurring government grants we received decreased from RMB13.1 million in 2022 to RMB9.7 million in 2023.

Financial Information · p. 313

Our other income and gains increased by 134.3% from RMB11.9 million for the nine months ended September 30, 2024 to RMB27.9 million for the nine months ended September 30, 2025, primarily attributable to (i) an increase in government grants as a result of the subsidy of RMB7.2 million received from government; and (ii) an increase in net foreign exchange gains as a result of a notable decrease in foreign exchange losses from accounts payable.

Financial Information · p. 313

Our other net income decreased by 41.4% from RMB107.8 million in the first nine months of 2024 to RMB63.2 million in the first nine months of 2025, primarily driven by (i) a decrease of RMB13.8 million in net gains on disposal of interests in associates resulting from our disposal of equity interest in certain associate, (ii) an RMB13.2 million decrease in government grants, which was mainly due to a one-off subsidy received by one of our subsidiaries from the local government in the first nine months of 2024, and (iii) an RMB9.9 million increase in net foreign exchange losses, and (iv) an RMB7.0 million decrease in VAT super deduction and refund, partially offset by an increase in realized and unrealized gains on other financial assets measured at FVPL of RMB12.9 million, resulting from changes in the fair value of our investments in unlisted securities and funds.

Financial Information · p. 341

Our other income, gains and losses increased by 50.3% from RMB108.3 million for the ten months ended October 31, 2024 to RMB162.8 million for the same period in 2025, primarily attributable to (i) gains on disposal of property, plant and equipment in RMB34.5 million recognized in connection with our sales of certain self-owned EV charging stations and charging equipment in the ten months ended October 31, 2025, as compared to losses on disposal of property, plant and equipment in RMB7.0 million in connection with our disposals of machinery, equipment and motor vehicles in the same period in 2024, and (ii) gains on disposal of subsidiaries and associates in RMB25.6 million in the ten months ended October 31, 2025, as compared to losses on disposal of subsidiaries and associates in RMB0.2 million in the same period of 2024.

Financial Information · p. 227

During the Track Record Period, our gains/(losses) on disposal of property, plant and equipment were primarily attributable to the disposal of our machinery, equipment and lease rights for EV charging station sites.

Financial Information · p. 221

Our other income and expenses decreased by 30.6% from RMB369.6 million in the nine months ended September 30, 2024 to RMB256.6 million in the nine months ended September 30, 2025, primarily due to a decrease in value-added tax refund and additional deduction, primarily due to (i) policy changes and (ii) limit on VAT refund received in relation to VAT carried forward from the previous period, which cannot exceed actual VAT paid in 2025.

Financial Information · p. 305

We recorded impairment losses under expected credit loss model, net of reversal of RMB515.7 million in the nine months ended September 30, 2024, and reversed impairment allowance of RMB215.7 million in the nine months ended September 30, 2025, primarily because the lithium battery industry recovered and resumed production, which significantly improved customers’ ability to make payments.

Financial Information · p. 298

We recorded impairment losses under expected credit loss model, net of reversal of RMB473.2 million, RMB750.4 million and RMB555.2 million in 2022, 2023 and 2024, primarily attributable to the impairment losses recognized on trade receivable.

Financial Information · p. 298

During the Track Record Period, our other net income or loss was mainly a result of the (i) net realized and unrealized gain or loss on derivative financial instruments, which reflected our arrangements with certain banks for mitigating our currency risks arising from receivables denominated in USD; and (ii) net foreign exchange gain or loss resulting from foreign exchange rate fluctuations.

Financial Information · p. 279

We had other net loss of RMB9.2 million in 2023 compared to other net income of RMB6.3 million in 2022, primarily because (i) the gain in net foreign exchange of RMB8.0 million in 2022 changed to the loss in net foreign exchange of RMB2.2 million in 2023 as a result of the fluctuation in the exchange rate of USD against the RMB

Financial Information · p. 289

During the Track Record Period, we had a net foreign exchange gain of RMB8.0 million, RMB2.0 million, RMB1.3 million and RMB1.8 million in 2022 and 2024 and in the eight months ended August 31, 2024 and 2025, and a net foreign exchange loss of RMB2.2 million in 2023.

Financial Information · p. 265

Our other income, gains and losses were RMB16.2 million, RMB46.9 million, RMB337.5 million, RMB189.1 million and RMB95.7 million in FY2022, FY2023, FY2024, 10MFY2024 and 10MFY2025, respectively.

Financial Information · p. 294

Gain on bargaining purchase arising on acquisition of subsidiaries represents the gain recognized in 2024, when we, as restructing investor, acquired Hong Kong Petrochemical and Gon Chemical (Dongming).

Financial Information · p. 295

According to the relevant regulation issued by the competent authority in September 2023, advanced manufacturing companies (such as us) are entitled to an additional deduction of 5% VAT on the basis of the deductible input VAT of relevant year from 1 January 2023 to 31 December 2027.

Financial Information · p. 295

Our other income and gains increased by 86.9% from RMB309.7 million in 2023 to RMB578.6 million in 2024, primarily due to (i) an increase in value-added tax additional deduction of RMB213.5 million in relation to preferential tax treatments we received under a value-added tax additional deduction policy for advanced manufacturing enterprises issued by a local authority, and (ii) an increase in government grants of RMB43.9 million; partially offset by a decrease in net fair value changes of investment measured at FVTPL of RMB30.2 million.

Financial Information · p. 337

partially offset by a decrease in value-added tax additional deduction of RMB72.5 million in relation to preferential tax treatments we received under a value-added tax additional deduction policy for advanced manufacturing enterprises issued by a local authority.

Financial Information · p. 333