Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Nanjing Putian Telecommunications Co. Ltd.Annual Report 2023

[April 2024]Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Annual Report 2023

Section I Important Notes Contents and Interpretations

The Board of Directors Board of Supervisors directors supervisors and

senior executives of the Company guarantee the truthfulness accuracy and

completeness of the Annual Report and ensure that there are no false records

misleading statements or major omissions and they will be held individually

and jointly liable for any legal liability that may arise.Li Langping the person in charge of the Company Liao Rongchao the person

in charge of accounting and Zhang Jingxia the person in charge of the

accounting firm (accounting supervisor) declare that they guarantee the

truthfulness accuracy and completeness of the financial report represented in

this Annual Report.All directors attended the board meeting at which this Annual Report was

considered.This Annual Report contains forward-looking statements concerning future

plans such as the Company's business plan. It is important to note that these

statements are not intended to constitute a substantive commitment to

investors and investors and related parties should exercise sufficient risk

awareness and carefully consider the differences among plans forecasts and

commitments.In "Section III Discussion and Analysis of the Management Team"， theCompany has provided an analysis of the potential risks that may affect theFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Company's development. We encourage investors to review this section

carefully.The Company planed not to distribute cash dividends and bonus shares or

increase its share capital from provident fund.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Contents

Section I Important Notes Contents and Interpretat....2

Section II Company Profile and Main Financial Indi....7

Section III Discussion and Analysis of the Managem...12

Section IV Corporate Governance .................... 31

Section V Environmental and Social Responsibilitie.. 54

Section VI Important Matters ....................... 55

Section VII Changes in Shares and Shareholders .....100

Section VIII Information on Preferred Shares ...... 108

Section IX Information on Bonds ....................109

Section X Financial Report........................ Ltd.Contents of Documents for Future Reference

(I) Financial statements containing the signatures and seals of the person in charge of the Company the person in charge of

accounting work and the person in charge of the accounting firm (accounting supervisor).(II) The original audit report containing the seal of the accounting firm and the signatures and seals of the certified public

accountants.(III) The originals of all Company documents and announcements publicly disclosed during the reporting period.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Interpretations

Term means Interpretation

Nanjing Putian Telecommunications Co.The Company Company means

Ltd.China Electronics Technology Group

CETC means

Corporation

CETC Glarun means CETC Glarun Group Co. Ltd.Nanjing Southern Telecom Co. Ltd. (a

Southern Telecom means

holding subsidiary of the Company)

Nanjing Putian Telege Intelligent

Telege means Building Ltd. (a holding subsidiary of the

Company)

Nanjing Nanman Electrical Co. Ltd. (a

Nanman Electrical means wholly-owned subsidiary of the

Company)

Nanjing Putian Datang Information

Putian Datang means Electronics Co. Ltd. (a holding

subsidiary of the Company)Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Section II Company Profile and Main Financial Indicators

I. Company information

Stock abbreviation NTX B Stock code 200468

Stock exchange Shenzhen Stock Exchange

Chinese name Nanjing Putian Telecommunications Co. Ltd.Chinese abbreviation Nanjing Putian

English name (if any) Nanjing Putian Telecommunications Co. Ltd.Legal representative Li Langping

Registered address No.8 Fenghui Avenue Yuhua Economic Development Zone Nanjing

Postal code 210039

When the Company was established in 1997 its registered address was Building 1 on the west

side of Ericsson in Jiangning Economic and Technological Development Zone Nanjing; In

Changes of the Company’s

2003 the registered address of the Company was changed to No.58 Qinhuai Road Jiangning

registered address

Economic and Technological Development Zone Nanjing; In 2021 the registered address of the

Company was changed to No.8 Fenghui Avenue Yuhua Economic Development Zone Nanjing

Putian Technology Pioneer Park No.8 Fenghui Avenue Yuhuatai District Nanjing City Jiangsu

Office address

Province

Postal code 210039

Website www.postel.com.cn

E-mail securities@postel.com.cn

II. Contact persons and contact information

Secretary of the Board of Directors Securities representative

Name Li Jing Dai Yuan

Putian Technology Pioneer Park No.8 Putian Technology Pioneer Park No.8

Address Fenghui Avenue Yuhuatai District Fenghui Avenue Yuhuatai District

Nanjing City Jiangsu Province Nanjing City Jiangsu Province

Tel. 86-25-69675805 86-25-69675865

Fax 86-25-52416518 86-25-52416518

E-mail lijing@postel.com.cn daiyuan@postel.com.cn

III. Location of information disclosure and provision

Website of the stock exchange where the Company discloses its

Shenzhen Stock Exchange (http://www.szse.cn)

annual report

Names and websites of the media in which the Company

Securities Times CNINFO (www.cninfo.com.cn)

discloses its annual report

Place where the Annual Report of the Company is prepared Office of the Board of Directors of the CompanyFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.IV. Changes in registration

Unified social credit code 91320000134878054G

Changes in the main business of the Company since its listing

No change

(if any)

When the Company was established in 1997 its controlling

shareholder was China Post and Telecommunications Industry

Corporation (later renamed China Potevio Information Industry

Group Corporation and China Potevio Information Industry

Group Co. Ltd. successively) In 2005 China Potevio

Information Industry Group Corporation transferred all its

Changes of controlling shareholders (if any) shares to China Potevio Information Industry Co. Ltd. free of

charge and the Company’s controlling shareholder was

changed to China Potevio Information Industry Co. Ltd. In

2022 China Potevio Information Industry Co. Ltd. transferred

all its shares to CETC Glarun Group Co. Ltd. free of charge

and the Company’s controlling shareholder was changed to

CETC Glarun Group Co. Ltd.V. Other relevant information

Accounting firms engaged by the Company

WUYIGE Certified Public Accountants LLP (Special General

Name of the accounting firm

Partnership)

Room 2206 Floor 22 No.1 Zhichun Road Haidian District

Office address of the accounting firm

Beijing

Names of the signing accountants Xu Zongliang Guo Zhigang

Sponsor engaged by the Company to perform continuous supervision duties during the reporting period

□Applicable□Not applicable

Financial consultant engaged by the Company to perform continuous supervision duties during the reporting period

□Applicable□Not applicable

VI. Main accounting data and financial indicators

Does the Company need to retroactively adjust or restate the accounting data of previous years

□Yes□No

Increase or decrease in

2023 2022 the current year over 2021

the previous year

Operating revenue

818334374.30879566048.96-6.96%917129674.49

(yuan)

Net profit attributable

to shareholders of the -16884077.62 -47390545.55 64.37% -138766373.70

listed company (yuan)

Net profit attributable

to shareholders of the

listed company after -23157886.24 -51234544.29 54.80% -141603716.82

deducting non-

recurring gains andFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.losses (yuan)

Net cash flow from

operating activities -6017650.03 -30726510.39 80.42% -61717528.76

(yuan)

Basic earnings per

-0.080-0.22063.64%-0.650

share (yuan/share)

Diluted earnings per

-0.080-0.22063.64%-0.650

share (yuan/share)

Weighted average

-124.58%-114.39%-10.19%-105.00%

return on net assets

Increase or decrease at

the end of the current

By the end of 2023 By the end of 2022 year compared with the By the end of 2021

end of the previous

year

Total assets (yuan) 826241412.27 891390055.62 -7.31% 993571982.44

Net assets attributable

to shareholders of the 5111258.66 21995336.28 -76.76% 65187412.69

listed company (yuan)

The lower of the Company's net profit before and after deduction of non-recurring profits and losses for the last three fiscal years

is negative and the audit report for the latest year shows that there is uncertainty about the Company's ability to continue as a

going concern

□Yes□No

The lower of the Company's net profit before and after deduction of non-recurring profits and losses is negative

□Yes □No

Item 2023 2022 Remarks

Operating revenue (yuan) 818334374.30 879566048.96 -

Deducted amount of

14689596.3810866001.57-

operating revenue (yuan)

Amount after deduction of

803644777.92868700047.39-

operating revenue (yuan)

VII. Differences in accounting data under domestic and overseas accounting standards

1. Differences in net profits and net assets in the financial reports disclosed in accordance with

international accounting standards and in accordance with Chinese accounting standards

□Applicable□Not applicable

During the reporting period there is no difference between the net profit and net assets in the financial reports disclosed in

accordance with international accounting standards and Chinese accounting standards.

2. Differences in net profits and net assets in the financial reports disclosed in accordance with overseas

accounting standards and in accordance with Chinese accounting standards

□Applicable□Not applicable

During the reporting period there is no difference between the net profit and net assets in the financial reports disclosed in

accordance with overseas accounting standards and Chinese accounting standards.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.VIII. Main quarterly financial indicators

Unit: yuan

Q1 Q2 Q3 Q4

Operating revenue 178539354.70 214000522.99 188206576.44 237587920.17

Net profit attributable

to shareholders of the -9934009.57 -1027887.35 -5783929.78 -138250.92

listed company

Net profit attributable

to shareholders of the

listed company after

-9495883.88-3027854.09-5657847.85-4976300.42

deducting non-

recurring profits and

losses

Net cash flow from

-104103173.8818020690.41-30038788.44110103621.88

operating activities

Whether the above financial indicators or the sum of them are significantly different from the relevant financial indicators in the

quarterly report and semi-annual report disclosed by the Company

□Yes□No

IX. Items and amounts of non-recurring profits and losses

□Applicable □Not applicable

Unit: yuan

Item Amount in 2023 Amount in 2022 Amount in 2021 Description

Profits and losses on

disposal of non-current

assets (including the

-134939.44506839.52-134892.35

write-off part of the

provision for

impairment of assets)

Government subsidies

included in the current

profits and losses

(except those closely

related to the

Company's normal

business operations

and those conforming 1441162.29 210513.19 660727.46

to national policies

enjoyed according to

certain standards and

having a continuous

impact on the

Company's profits and

losses)

Reversal of impairment

provision for

3413067.60

receivables separately

tested for impairmentFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Profit and loss of debt

588868.842456389.38

restructuring

Other non-operating

revenue and expenses

1049278.582896463.54328880.05

other than the above

items

Other profit and loss

items that comply with

the definition of non- 717457.47 817837.09

recurring profit and

loss

Less: Affected amount

224119.31160760.51108335.97

of revenue tax

Affected amount of

minority shareholders' 576967.41 426894.09 365425.45

equity (after tax)

Total 6273808.62 3843998.74 2837343.12 --

Details of other profit and loss items that comply with the definition of non-recurring profit and loss:

□Applicable □Not applicable

Other profits and losses that meet the definition of non-recurring profits and losses are mainly investment

income generated from the liquidation of subsidiaries.Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information

Disclosure by Companies with Public Securities Offerings - Non-recurring Profits and Losses as recurring profit and loss items

□Applicable□Not applicable

The Company does not define the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on

Information Disclosure by Companies with Public Securities Offerings as recurring profit and loss items.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Section III Discussion and Analysis of the Management Team

I. Industry in which the Company operates during the reporting period

According to the data released by the Ministry of Industry and Information Technology in 2023 China made

every effort to promote the construction of a network powerhouse and a digital nation and drive the in-depth

integration of the digital economy and the real economy. The main operating indicators of the communication

industry grew steadily the network infrastructures such as 5G and gigabit optical networks continued to

improve and the popularization of applications was accelerated in an all-round way. All of these contributed to

steady progression of the industry.The communication equipment manufacturing industry is an important foundation of the communication

industry. Driven by national policies the communication equipment manufacturing industry is generally facing

good development opportunities; Additionally the communication equipment manufacturing industry is a fully

competitive industry with a great many of players in fierce competition.From the standpoint of the Company's primary products in specific sub-sectors the swift

advancement in technologies such as cloud computing artificial intelligence the Internet of

Things 5G and ultra-high-definition audio/video (4K/8K) coupled with an increased focus on

replacing imports with domestic alternatives has significantly expanded the developmental

prospects for the Company’s video conferencing products and also facilitated a rapid transition of

these products towards more intelligent ultra-high-definition and IoT-based upgrades. In terms

of smart cabling products the ongoing construction of new infrastructures like 5G networks and

data centers is generating fresh opportunities and expanding market demands for the Company’s

integrated cabling and data center support products. Concerning smart power distribution products

the adoption of smart manufacturing practices in downstream industries is driving industrial

upgrades and imposing new requirements for monitoring control and cloud computing

capabilities in low-voltage electrical products. Additionally the digitization of these products is

progressing swiftly and becoming increasingly pervasive which supports the Company’s

intelligent electrical products in their gradual shift towards customization digitization and

intelligentization. In regard to smart lighting products following the national implementation of

the "carbon emissions peak and carbon neutrality" strategy and the promotion of smart city

construction the deployment of smart streetlights is increasing by approximately one million

units annually. The Company's IoT-based grid-connected and solar energy streetlight controllers

along with comprehensive solutions are seeing expansive growth potential.II. Major business of the Company during the reporting period

As one of the important providers of products and solutions in the field of information and

communication in China the Company has adhered to the strategy of "products + solutions +

services" and constantly accelerated product innovation industrial restructuring and

transformation and upgrading. The Company and its subsidiaries mainly operate in sectors such

as smart conferencing smart cabling smart power distribution and smart lighting. Their key

products include multimedia communication and application solutions integrated smart buildingFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.solutions industrial smart power distribution systems IoT-based grid-connected and solar energy

streetlight control systems etc. These products primarily serve large central enterprises

government bodies and customers from industries such as finance electric power and healthcare.The subsidiary Southern Telecom mainly offers multimedia communication and application solutions to central

enterprises and large and medium industry customers in the fields of government finance and medical care; Its

subsidiary Telege mainly provides customers with mid-to-high-end integrated cabling and building intelligent

system solutions; the subsidiary Nanman Electrical provides intelligent power distribution solutions for various

scenarios such as rail transit airports ports and parks; the subsidiary Putian Datang mainly provides customers

with solutions of grid-connected and solar energy streetlight controllers and IoT-based intelligent streetlight

management and control.The Company mainly obtains business opportunities by participating in project bidding. It designs

manufactures or purchases equipment required by customers according to project requirements and is

responsible for installation commissioning and system integration and realizes profits after deducting cost

according to contract prices. The Company's operating performance is mainly affected by the capital

expenditure information technology investments and bidding results of central enterprises government

agencies financial institutions customers from the rail traffic industry and other industries as well as

fluctuations in raw material prices and changes in other costs.III. Analysis of core competitiveness

1. Marketing ability

The Company consistently adopts a market-oriented approach has established a robust

marketing network and has extensive experience serving sectors including central enterprises

government bodies and customers from industries such as finance rail transit electric power

healthcare and internet. Moreover the Company has set up offices in major cities including

Beijing Xi'an Shanghai Chengdu Wuhan and Shenzhen assembling localized marketing

teams and offering customers comprehensive and professional services through its dedicated

sales technical and business teams.

2. Product competitiveness

The Company staunchly adheres to an innovation-driven strategy systematically intensifying the

R&D of novel products to elevate its core competencies. The Company has more than 20 years of

rich professional and technical service experience in the field of smart conferencing; By virtue of

independent innovation its self-developed products have been widely recognized by customers

such as central enterprises government bodies and customers from industries such as finance

and healthcare. Additionally through a strategic partnership with Huawei in the smart

collaboration domain and the establishment of the Southern Telecom Smart Collaboration

Experience Center the Company continuously capitalizes on the synergistic technical strengths

of its self-developed smart management platforms and Huawei's products thereby creating

greater values for customers. Its intelligent cabling products are positioned in the high-end market.It provides premium-quality solutions for integrated cabling and intelligent building systems.Exhibiting robust competitive advantages in market sales and product technical standards these

products have emerged as reputable substitutes for international brands. Its intelligent power

distribution products find extensive application in trail transit airports terminals and otherFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.industries consistently maintaining a prominent position in the rail transportation sub-sector. Its

market standing is attributed to the high professionalism and strong competitiveness of its

products. In the field of smart lighting the Company has been deeply engaged in developing

energy-efficient controller systems primarily offering customers advanced smart streetlight

solutions integrating IoT-based solar energy and grid-connected streetlight controllers. It has

established a complete system that encompasses R&D manufacturing and large-scale sales.During the reporting period the Company filed for 26 new patents including 9 invention patents and

submitted 16 new software copyrights. It received approval for 9 new patents and secured 17 new software

copyrights participated in drafting 2 national and 2 industry standards and passed certification for 18 products.

3. Brand influence

The Company a subsidiary of a state-owned enterprise operates within the information and communications

sector. Southern Telecom offers a series of video conferencing products such as Ruijing and Ruizhi and enjoys

a high reputation in China; Putian Telege has earned the prestigious distinction of being recognized as a famous

brand of integrated cabling products in Jiangsu Province as well as a renowned provincial trademark. Securing

the "Top Ten Integrated Cabling Brands" award for 19 consecutive years and ranking third Telege underscores

its leadership in substituting imports within the industry; Nanman Electrical is a prominent brand within the rail

transportation industry; Putian Datang holds significant brand influence in the energy-saving control domain.IV. Analysis of main business

1. Overview

The year 2023 marks the beginning of the comprehensive implement of the guiding principles of the 20th CPC

National Congress. It is an important year to connect the preceding with the following in the implementation of

the 14th Five-Year Plan and a crucial year for the Company to fully integrate into CETC Glarun. In response to

emerging historical opportunities and challenges the Company optimized its industrial layout concentrated on

its core businesses and responsibilities and integrated research and development production and sales

processes. By strengthening centralized control at its headquarters it has fostered a synergy effect. Building on

its existing industrial strengths and under the premise of consolidating its current market the Company

continues to drive the business towards upgrades and transformations in smart conferencing smart cabling

smart power distribution and smart lighting. It is expanding into quality markets including central enterprises

finance energy airports ports and military sectors enhancing innovation and research and development

capabilities. These efforts aim to develop core and differentiated competitive advantages thereby elevating the

Company's overall competitiveness. Moreover the Company is intensifying internal management ramping up

efforts to streamline loss-making subsidiaries recovering accounts receivable and clearing inventory debts

strengthening cost control revitalizing inefficient and idle assets and fostering its stable and sustainable growth.During the reporting period the Company realized operating revenue of 818.33 million yuan and the net profit

attributable to shareholders of the listed company was -16.88 million yuan a decrease of 30.51 million yuan

compared with the same period of the previous year.Development of main business during the reporting period:

The company remains committed to reinforcing its traditional businesses deeply exploring niche areas

focusing on industries where it already holds advantages and attaching great importance to key industries and

customers. It is enhancing synergies across the upstream and downstream supply chains of CETC centering on

the "information communication and electrical products". This focus includes boosting the capacity forFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.providing product and services related to network and information systems and further improving the

Company’s overarching capability to provide solutions integrating “products + technology + services.”

In terms of smart conferencing products the Company is leveraging its video conferencing and conference

room integration businesses to boost sales of its independently controlled Ruijing software and hardware

products thereby developing differentiated solutions. The Company has strengthened the construction of

industry qualifications and has successively obtained a number of certifications such as Grade II Contractor for

Electronic and Intelligentization Projects Grade II Contractor for Building Decoration and Finishing Projects

and the Level III Certificate for Compliance with Information Technology Service Standards. The Company is

also enhancing the execution of major ongoing projects such as the Capital Airport Project; it has secured

projects of the Agricultural Development Bank of China and the CNNC Beijing Science Park offering tailored

services to key customers including PipeChina Kweichow Moutai Jining Medical University and Harbin

Metro. As a distinguished agent for Huawei's video conferencing products the Company is deepening its

strategic collaboration with Huawei and increasing its investments in the smart collaboration market.In terms of intelligent cabling products the Company is working to elevate its brand influence and penetrate

high-end markets like finance and military sectors. It is refining its market mechanisms motivating its

distributor network and expanding its market share. It has successfully won bids for key industry projects

including a municipal government machine room transformation the machine room of Chengdu Huaizhou

Hospital and the machine room of a public security bureau. It has completed the development of prototype

systems for industrial internet and integrated cabling in industry applications as well as prototype trial-

manufacturing of military optical fiber connectors optical modules and essential components and parts. For the

19th consecutive year it maintained its third-place ranking among the "Top Ten Integrated Cabling Brands" and

was recognized during the reporting period as a "specialized refined characteristic and innovative" enterprise

in Jiangsu Province.In terms of smart power distribution products the Company is deepening its engagement in the rail transit and

broader social markets consistently enhancing project quality. It has secured projects for Beijing Metro Line 17

Shanghai Airport Link Line and Jinan Urban Rail and completed emergency product deliveries for Beijing

Metro Line 12 Beijing Metro Line 14 Beijing Yushuzhuang Vehicle Section and Nanjing Metro Line 5

earning high praise from customers. It has obtained the Weapon Equipment Quality Management System

Certification and the "Leading Brand of China Electrical Industry" honor. During the reporting period it passedthe re-evaluation as a “Technology-based SME" and "Innovative SME" in Jiangsu Province.In terms of smart lighting products the Company is actively developing new products and pushing forward

market transformation. As a high-tech enterprise and a certified software enterprise with registered software

products the Company continues to ramp up its technological investments further developing products like

grid-connected complementary energy-saving controllers a smart city comprehensive management platform

and smart streetlights with new products accounting for nearly 20% of sales.

2. Revenue and costs

(1) Composition of operating revenue

Unit: yuan

2023 2022 Year-on-year

Proportion in Proportion in increase or

Amount Amount

operating revenue operating revenue decreaseFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Total operating

818334374.30100%879566048.96100%-6.96%

revenue

Industry

Communication

717049035.9687.62%788478840.6989.64%-9.06%

industry

Electrical industry 101285338.34 12.38% 91087208.27 10.36% 11.20%

Product

Revenue from

main business -

364038981.1644.49%363986691.2941.38%0.01%

integrated cabling

products

Revenue from

main business -

252616129.4630.87%304872384.8334.66%-17.14%

video conferencing

products

Revenue from

main business -

92543747.6111.31%88207032.7210.03%4.92%

smart electrical

products

Revenue from

main business -

communication

121072076.6114.79%145879508.5716.59%-17.01%

infrastructure

products and

others

Internal offset -29294980.98 -3.58% -40821613.26 -4.64% -28.24%

Revenue from

17358420.442.12%17442044.811.98%-0.48%

other business

Region

China 818334374.30 100.00% 879566048.96 100.00% -6.96%

Sales mode

Direct selling 477217979.91 58.32% 464411292.37 52.80% 2.76%

Distribution 341116394.39 41.68% 415154756.59 47.20% -17.83%

(2) The industries products regions and sales modes that account for more than 10% of the Company's operating revenue

or operating profit

□Applicable □Not applicable

Unit: yuan

Operating Gross profit

Operating costs

revenue margin

increased or

Gross increased or increased or

decreased over

Operating revenue Operating cost profit decreased over decreased over

the same period

margin the same period the same period

of the previous

of the previous of the previous

year

year year

Industry

Communication

717049035.96544180224.0124.11%-9.06%-13.58%3.97%

industry

Electrical

101285338.3475504884.6625.45%11.20%9.52%1.14%

industry

ProductFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Revenue from

main business -

integrated 364038981.16 285962797.49 21.45% 0.01% 0.37% -0.27%

cabling

products

Revenue from

main business -

video 252616129.46 182394755.44 27.80% -17.14% -24.18% 6.71%

conferencing

products

Revenue from

main business -

92543747.6171735451.7822.48%4.92%6.40%-1.09%

smart electrical

products

Revenue from

main business -

communication

121072076.6198711820.9518.47%-17.01%-26.45%10.47%

infrastructure

products and

others

Internal offset -29294980.98 -28570843.39 2.47% -28.24% 29.67% 1.98%

Revenue from

17358420.449451126.4045.55%-0.48%-22.05%15.06%

other business

Region

China 818334374.30 619685108.67 24.27% -6.96% -11.30% 3.70%

Sales mode

Direct selling 477217979.91 356641883.01 25.27% 2.76% -5.75% 6.75%

Distribution 341116394.39 263043225.66 22.89% -17.83% -17.85% 0.02%

When the statistical range of the Company's main business data is adjusted during the reporting period the Company's main

business data according to the range adjusted at the end of the reporting period in the latest year is

□Applicable□Not applicable

(3) Whether the Company's physical sales revenue is greater than the labor service revenue

□Yes □No

Year-on-year

Industry Item Unit 2023 2022 increase or

decrease

Sales Yuan 717049035.96 788478840.69 -9.06%

Communication Production Yuan 682850852.71 785475356.70 -13.07%

industry Inventory Yuan 91908637.52 126106820.77 -27.12%

Sales Yuan 101285338.34 91087208.27 11.20%

Production Yuan 91742061.29 73999365.12 23.98%

Electrical industry

Inventory Yuan 30790140.74 40333417.79 -23.66%

Explanation of the reasons why the relevant data changed by more than 30% year-on-year

□Applicable□Not applicableFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

(4) The performance of major sales contracts and major purchase contracts signed by the Company as of the reporting

period

□Applicable□Not applicable

(5) Composition of operating costs

Industry

Unit: yuan

20232022

Year-on-year

Industry Item Proportion to Proportion to increase or

Amount operating Amount

operating costs decrease

costs

Cost of main

Communica business - raw

tion material cost 487513256.43 78.67% 579046304.70 82.89% -15.81%

industry (procurement

cost)

Communica

Cost of main

tion 47878388.54 7.73% 38718063.87 5.54% 23.66%

business - other

industry

Communica

Cost of other

tion 8788579.04 1.42% 11903131.78 1.70% -26.17%

business

industry

Cost of main

business - raw

Electrical

material cost 64837890.33 10.46% 56741067.50 8.12% 14.27%

industry

(procurement

cost)

Electrical Cost of main

10004446.971.61%11978213.451.71%-16.48%

industry business - other

Electrical Cost of other

662547.360.11%220849.120.03%200.00%

industry business

Total Operating cost 619685108.67 100.00% 698607630.42 100.00% -11.30%

Description

-

(6) Whether the consolidation scope changed during the reporting period

□Yes □No

See the section "Changes in the scope of consolidation" in the notes to the financial statements in the full text

of the annual report.

(7) Major changes or adjustments in the business products or services of the Company during the reporting period

□Applicable□Not applicableFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

(8) Main customers and suppliers

Main sales customers of the Company

Total sales amount of the top five customers (yuan) 95320957.91

Proportion of total sales amount of the top five customers to

total annual sales amount 11.65%

Proportion of related party sales of the top five customers' sales

5.09%

to the total annual sales

Information of the Company’s top 5 customers

Proportion to total annual

S/N Customer name Sales (yuan)

sales

China Electronics Technology

Group Corporation 41637485.74 5.09%

Nanjing Yongrui Technology

215198245.901.86%

Co. Ltd.China Railway Electrification

314023662.441.71%

Engineering Group Co. Ltd.China Railway 19th Bureau

412419784.341.52%

Group Corporation Limited

Beijing Shengshi Shunyuan

512041779.491.47%

Technology Co. Ltd.Total -- 95320957.91 11.65%

Other information of major customers

□Applicable □Not applicable

Nanjing Yongrui Technology Co. Ltd. China Railway Electrification Engineering Group Co. Ltd. China

Railway 19th Bureau Group Corporation Limited and Beijing Shengshi Shunyuan Technology Co. Ltd. are top

five new customers.Major suppliers of the Company

Total purchase amount of the top 5 suppliers (yuan) 179567443.38

Proportion of total purchase amount of the top five suppliers to

32.98%

total annual purchase amount

Proportion of related party purchase amount in the top 5

0.00%

suppliers' purchase amount to total annual purchase amount

Information of the Company’s top 5 suppliers

Proportion to total annual

S/N Name of supplier Purchase amount (yuan)

purchase amount

1 Supplier 1 59245898.21 10.88%

Jiangsu DongQiang Cables

240088463.687.36%

Co. Ltd.

3 Supplier 3 36792980.52 6.76%

4 Supplier 4 27431721.97 5.04%

5 Supplier 5 16008379.00 2.94%

Total -- 179567443.38 32.98%

Other information of major suppliers

□Applicable □Not applicable

Jiangsu DongQiang Cables Co. Ltd. is one of the top 5 new suppliersFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

3. Expenses

Unit: yuan

Year-on-year increase Description of major

20232022

or decrease changes

Sales expenses 76487601.27 75331981.00 1.53%

Management expenses 61842896.59 63190264.31 -2.13%

Financial expenses 9397594.51 10081432.77 -6.78%

Research and

38022112.3442690479.34-10.94%

development expenses

4. Investment in R&D

□Applicable □Not applicable

Expected impact on the

Name of main R&D

Project purpose Project progress Goals to be achieved future development of

project

the Company

Meet customer needs

and adhere to the

essential characteristics Expand the Company's

Develop new products

Photoelectric hybrid Project acceptance has of integrated cabling product types and

according to customer

cabling systems been completed systems: compatibility enhance product

and market needs

openness flexibility diversity.reliability and

advancement.Enhance product

New-generation

Continually iterate Enrich product performance improve

intelligent cabling

offerings based on Project acceptance has portfolios and improve product

system and integrated

demands of customers been completed technical parameters of competitiveness and

cabling management

and the market products promote business

platform 2023

growth.Optimize product

Enhance product

Enhance product technology improve

competitiveness

Economical cabling competitiveness and Project acceptance has production efficiency

expand market share

systems independently develop been completed and greatly reduce

and promote business

new products production and

growth.manufacturing costs.Industrial Internet and Expand the Company's

Continually iterate Meet customer needs

industrial application product types enhance

offerings based on Prototype R&D has and enrich the

integrated cabling the Company's product

demands of customers been completed Company's product

systems (YW circular diversity and promote

and the market categories.network connectors) business growth.Prototype trial-

Expand the Company's

manufacturing of Continually iterate Meet customer needs

Prototype trial- product types enhance

military optical fiber offerings based on and enrich the

manufacturing has the Company's product

connectors optical demands of customers Company's product

been completed diversity and promote

modules and essential and the market categories.business growth.components and parts

Enhance the Provide customers with Improve the market

advantages of video overall management competitiveness of

Ruijing conference Project acceptance has

conferencing solutions systems increase video conferencing

management systems been completed

and independently customer stickiness projects and help the

develop new products and achieve continuous Company develop newFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.cooperation. markets and customers.Expand the Company's

Meet customer needs

Develop new products product types enter

Military electrical Project acceptance has and enrich the

according to customer new markets and

connectors been completed Company's product

and market needs promote business

categories.growth.Enhance product

Smart power

Meet customer needs performance improve

distribution systems Develop new products

Project acceptance has and enrich the product

(components + according to customer

been completed Company's product competitiveness and

software + DC power and market needs

categories. promote business

distribution)

growth.Improve the reliability

Smart application of Optimize network

and stability of optical Continually iterate

integration of smart resource allocation

fiber networks and Project acceptance has offerings based on

ODN system and improve resource

ensure the safety and been completed customer demands and

optical cable utilization and reduce

smoothness of data market development

monitoring system costs for customers.transmission

Enhance product

Meet customer needs performance improve

Develop new products

Centralized IoT-based Project acceptance has and enrich the product

according to customer

smart circuit breakers been completed Company's product competitiveness and

and market needs

categories. promote business

growth.Enhance product

Meet customer needs performance improve

Smart gateways for Develop new products

Project acceptance has and enrich the product

smart lighting according to customer

been completed Company's product competitiveness and

management and market needs

categories. promote business

growth.R&D personnel of the Company

2023 2022 Proportion of change

Number of R&D personnel

2922746.57%

(unit: person)

Proportion of R&D personnel 37.24% 30.27% 6.97%

Educational levels of R&D personnel

Bachelor’s degree 178 173 2.89%

Master’s degree 5 5 0.00%

Age of R&D personnel

Under 30 66 67 -1.49%

30~4014112810.16%

40~5065616.60%

Over 50 20 18 11.11%

R&D investment of the Company

2023 2022 Proportion of change

R&D investment amount

38022112.3442690479.34-10.94%

(yuan)

Proportion of R&D

investment to operating 4.65% 4.85% -0.20%

revenue

Amount of capitalized R&D 0.00 0.00 0.00%Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.investment (yuan)

Proportion of capitalized

R&D investment to R&D 0.00% 0.00% 0.00%

investment

Causes and impacts of major changes in the composition of R&D personnel in the Company

□Applicable□Not applicable

Reasons for significant changes in the proportion of total R&D investment to operating revenue compared with the previous year

□Applicable□Not applicable

Reasons for the significant change of capitalization rate of R&D investment and an explanation of its reasonability

□Applicable□Not applicable

5. Cash flow

Unit: yuan

Year-on-year increase or

Item 2023 2022

decrease

Subtotal of cash inflow from

875872365.97908235270.88-3.56%

operating activities

Subtotal of cash outflow from

881890016.00938961781.27-6.08%

operating activities

Net cash flow from operating

activities -6017650.03 -30726510.39 80.42%

Subtotal of cash inflow from

238830.0021066608.48-98.87%

investing activities

Subtotal of cash outflow from

investing activities 4226647.07 2629351.27 60.75%

Net cash flow from investing

-3987817.0718437257.21-121.63%

activities

Subtotal of cash inflow from

170538933.34198600000.00-14.13%

financing activities

Subtotal of cash outflow from

financing activities 160740527.52 202378296.79 -20.57%

Net cash flow from financing

9798405.82-3778296.79359.33%

activities

Net increase in cash and cash

-207061.28-16074329.4798.71%

equivalents

Description of the main influencing factors of major year-on-year changes in relevant data

□Applicable □Not applicable

The net cash flow from operating activities increased year-on-year mainly because the Company continues to

increase the pressure drop of the two gold strive to do the letter to the letter respond to the lawsuit the effect is

obvious.The year-on-year decrease in cash inflow from investment activities was mainly due to the recovery of

subsidiaries’ trading financial asset when they matured in the previous year.The year-on-year increase in cash outflow from investment activities was mainly due to the increase in the

Company's fixed asset investment during the reporting period.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.The year-on-year decrease in net cash flow from investment activities was mainly due to the recovery of

subsidiaries’ trading financial assets when they matured in the previous year.The year-on-year decrease in net cash flow from financing activities was mainly due to the decrease in

dividends paid by subsidiaries to minority shareholders compared with the same period of the previous year.The year-on-year increase in net increase in cash and cash equivalents was mainly due to the combined effect of

cash flows from operating activities investment activities and financing activities.Explain the reasons for the significant difference between the net cash flow generated from the Company's operating activities

during the reporting period and the net profit of the current year

□Applicable□Not applicable

V. Analysis of non-main business

□Applicable □Not applicable

Unit: yuan

Proportion to total

Amount Reasons Is it sustainable

profits

Mainly the reversal of

Return on investment 1277927.08 150.10% No

debt restructuring

Mainly the reversal of

Non-operating revenue 2158806.41 253.56% long-standing unpaid No

accounts payable

Mainly the unrecoverable

assets due to subsidiary

Non-operating

1109527.83 130.32% dissolution as well as fines No

expenses

forfeits and penalty

expenditure

Provision of expected credit

losses for accounts receivable

other receivables and bills

Credit impairment loss -9012120.28 -1058.00% No

receivable according to the

new financial instrument

standards

Asset impairment loss -4935911.69 -579.74% Loss of inventory depreciation No

VI. Analysis of assets and liabilities

1. Significant changes in asset composition

Unit: yuan

By the end of 2023 Early 2023 Increase or

Description of

Proportion to Proportion to decrease in

Amount Amount major changes

total assets total assets proportion

Monetary funds 178290844.21 21.58% 173863825.35 19.50% 2.08%

Accounts

301618359.2736.50%304616212.0434.17%2.33%

receivable

Contract assets 0.00% 0.00% 0.00%

Inventories 122698778.26 14.85% 166440238.56 18.67% -3.82%

Investment real 19127078.75 2.31% 20351240.03 2.28% 0.03%Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.estate

Long-term

equity 10412689.14 1.26% 10422321.80 1.17% 0.09%

investment

Fixed assets 93754100.19 11.35% 97917714.15 10.98% 0.37%

Projects under

5906.530.00%0.00%0.00%

construction

Right-of-use

0.00%0.00%0.00%

asset

Short-term

69863323.938.46%112836727.7712.66%-4.20%

loans

Contract

16720781.302.02%15048811.361.69%0.33%

liability

Long-term

176011976.1121.30%105800000.0011.87%9.43%

loans

Overseas assets account for a high proportion

□Applicable□Not applicable

2. Assets and liabilities measured at fair value

□Applicable □Not applicable

Unit: yuan

Profits

and

losses

Changes in

from Impairment Purchase Sales

cumulative

Opening changes accrued in amount in amount in Other Closing

Item fair value

amount in fair the current the current the current changes amount

included in

value in period period period

equity

the

current

period

Financial assets

4. Other

equity

741953

instrument 741953.00.00

investment

s

Subtotal of

741953

financial 741953.00.00

assets

Financing

with 32347

30668999.36

accounts 277.62

receivable

Total of the

33089

above 31410952.36

230.62

items

Financial

0.000.00

liabilitiesFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Other changes

Whether there were any significant changes in the measurement attributes of the Company's main assets during the reporting

period

□Yes□No

3. Restricted asset rights as of the end of the reporting period

Assets with restricted ownership or use rights

(1) Details

Item Closing book value Reasons for restriction

Monetary funds 14113164.10 Freezes due to security deposits andlitigation

Fixed assets 23546470.68 Real estate and Land mortgage loans

Intangible assets 3344930.14 Real estate and Land mortgage loans

Total 41004564.92

(2) Other notes

In addition to the above-mentioned assets with restricted ownership or use rights the Company

pledged its equity interests in its subsidiaries namely 96.99% equity interest in Nanjing Southern Telecom Co.Ltd. (with a corresponding capital contribution of 33.17 million yuan) 100% equity interest in Nanjing Nanman

Electrical Co. Ltd. (with a corresponding capital contribution of 41.14 million yuan) to China Potevio

Information Industry Co. Ltd. for a loan granted by the bank entrusted by the company. The Company

registered the pledges of its equity interests with the Qinhuai and Jiangning Administrations for Market

Regulation of Nanjing respectively; The parent company CETC Glarun Group Co. Ltd. provided a guarantee

for the Company's loan from CETC Finance Co. Ltd. and the Company pledged the 40% equity interest in its

subsidiary Nanjing Putian Telege Intelligent Building Ltd. (with a corresponding capital contribution of 8

million yuan) to the parent company. The Company registered the pledge of its equity interest with the

Jiangning Administrations for Market Regulation of Nanjing. The transfer of the above-mentioned equity

interests in subsidiaries is restricted until the pledges are released.VII. Analysis of investment status

1. Overview

□Applicable □Not applicable

Investment amount in the reporting Investment amount in the same period of

Amplitude of variation

period (yuan) the previous year (yuan)

3508094.97 3726579.21 -5.86%Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

2. Significant equity investments acquired during the reporting period

□Applicable□Not applicable

3. Major ongoing non-equity investments during the reporting period

□Applicable□Not applicable

4. Investment in financial assets

(1) Securities investment

□Applicable□Not applicable

There was no securities investment during the reporting period.

(2) Derivatives investment

□Applicable□Not applicable

There was no derivative investment during the reporting period.

5. Use of raised funds

□Applicable□Not applicable

There was no use of the raised funds during the reporting period.VIII. Sale of major assets and equity

1. Sale of major assets

□Applicable□Not applicable

The Company did not sell any major assets during the reporting period.

2. Sale of major equity

□Applicable□Not applicable

IX. Analysis of the major companies controlled by the Company and companies in which

the Company holds an equity stake

□Applicable □Not applicable

Major subsidiaries and companies in which the Company holds an equity stake and that contribute more than 10% to the

Company's net profit

Unit: yuan

Company Type of Main Registered Operating Operating

Total assets Net assets Net profit

name company business capital revenue profit

Nanjing Developme 20 million 28065512 11289337 36889807 30644056. 27498536.Subsidiary

Putian nt yuan 4.41 8.16 6.14 69 16Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Telege production

Intelligent and sales of

Building integrated

Ltd. cabling and

intelligent

building

products

Multimedia

Nanjing

communica 34.2

Southern 24149224 99166241. 25301136 16088558. 15462906.Subsidiary tion and million

Telecom 0.02 59 7.56 34 56

application yuan

Co. Ltd.solutions

Manufactur

ing and

Nanjing sales of

41.14

Nanman industrial 14953956 54694670. 10128533 2144270.5 2111624.3

Subsidiary million

Electrical intelligent 9.27 21 8.34 5 0

yuan

Co. Ltd. power

distribution

products

Research

and

developme

nt

production

and sales of

Nanjing grid-

Putian connected

Datang and solar

10 million 46432917. 25945721. 27436881. 1545653.9 1810236.2

Informatio Subsidiary energy

yuan 63 55 67 1 5

n streetlight

Electronics controllers

Co. Ltd. and

production

and

processing

of

electronic

products

Manufactur

ing and

sales of

outdoor

cabling

products

Nanjing

cable

Putian

distribution

Changle - - -

equipment 10 million 7671339.5 2820111.9

Communic Subsidiary 4017518.3 3398526.4 3075614.4

outdoor yuan 4 6

ation 7 9 4

and

Equipment

machine

Co. Ltd.room

network

chassis

(cabinet)

equipment

communicaFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.tion

electronic

products

Acquisition and disposal of subsidiaries during the reporting period

□Applicable □Not applicable

Ways of acquiring and disposing Impact on overall production operation

Company name

subsidiaries during the reporting period and performance

Nanjing Putian Network Co. Ltd. Liquidation and closure No significant impact

Chongqing Puhua Information

Liquidation and closure No significant impact

Technology Co. Ltd.Seventh Branch of Nanjing

Liquidation and closure No significant impact

Communication Equipment Factory

Information of major companies controlled by the Company and companies in which the Company holds an equity stake

X. Structured entities controlled by the Company

□Applicable□Not applicable

XI. Prospects for the future development of the Company

In 2024 the Company will steadfastly adhere to the principles embodied in Xi Jinping’s Thought on Socialism

with Chinese Characteristics for a New Era. It will wholeheartedly embrace the tenets of the 20th CPC National

Congress ensuring unwavering alignment with the strategic decisions and deployments delineated by CETC's

leading Party group and the Party Committee of CETC Glarun. Prioritizing stability and seeking progress while

maintaining stability the Company will resolve legacy challenges while fostering innovation and breakthroughs

amid transformative endeavors. It will concentrate on core responsibilities and businesses leverage the

strengths of leading sectors expand market development within the CETC framework identify new economic

growth areas strive to comprehensively enhance its operational management and ability to prevent and mitigate

significant risks and try to chart a trajectory toward the robust sustained and resilient growth.(I) Key work of the Company in the year:

1. Consolidate foundations and enhance leading sectors. By concentrating on key sectors and customers the

Company is vigorously expanding business beyond the CETC framework as a new driver of economic growth.The Company gives full play of its proprietary strengths in smart cabling audio-video integration smart power

distribution smart ODN systems and energy-saving control to strengthen and enlarge its existing industry

markets while actively seeking new customers in the Group and military sectors.

2. Optimize the business structure and strengthen implementation management. The Company strategically

adjusts its industrial structure phases out unprofitable operations and supports the expansion of its leading

sectors. It is intensifying its focus on industry concentration and R&D investments nurturing new economic

growth points gradually enhancing its high value-added and soft power capabilities and significantly bolstering

its core competitiveness. The Company is optimizing resource allocation aggressively pursuing cost reductions

and efficiency improvements enhancing process control and strengthening performance evaluations to ensure

it meets its annual operational objectives.

3. Reinforce foundation and revitalize stock assets. The Company lays a strong emphasis on recovering

accounts receivable and clearing inventory debts and optimizing asset structures; liquidating inefficient andFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.ineffective assets; revitalizing stock assets; enhancing talent acquisition and gradually aligning the necessary

resources to fortify its developmental foundation and continually augment its core competitiveness.

4. Remain committed to technological innovation and continuously enhance product competitiveness. The

Company's management team and the Strategy and Investment Committee play a pivotal role in guiding

planning efforts ensuring well-coordinated operational strategies. The Company is meticulous in planning and

deliberating on product positioning and R&D focusing on its competitive technologies and sectors and key

customers. It is deepening its core business in information and communications achieving technological

innovations in key applications and continually advancing the core competitiveness of its products.(II) Risks that the Company may face during its development:

1. Risks of technology research and development

Given the rapid pace of technological advancement and product evolution in the communications industry

failing to upgrade or transform its existing products and technology platforms in line with market demands or if

its R&D outputs do not align with these demands could adversely affect its operations.Countermeasures: The Company will actively monitor industry trends in technology development and adopt a

market-oriented approach to technology development and introduction. It places great importance on the

organization planning and management of product development expands new product projects and strives to

maintain its technological leadership in the industry.

2. Risks of market competition

The industry where the Company operates is intensely competitive with numerous companies competing

particularly as national economic growth has slowed further intensifying competition. Despite having

established a competitive advantage in areas such as brand recognition technology quality and marketing

through its long-term business development efforts failure to adapt to future market changes may cause the

Company to lose its current advantage in the highly competitive market.Countermeasures: The Company will continue to leverage its existing advantages to consolidate traditional

markets and actively develop premium customers such as central enterprises government bodies and customers

from the finance energy airports and military industries. It aims to strengthen and expand its social industry

market accelerates industrial transformation and upgrading and cultivates business in strategic emerging

sectors. The Company will also continuously strengthen its cost control and enhance its production and R&D

capabilities to promote the rapid development of new products. Furthermore the Company will keep a close eye

on market trends grasp market information adjust sales policies in a timely manner and maintain its

competitive edge in the market.

3. Risks associated with the supply and price fluctuations of raw materials

The main raw materials used in the Company's daily production include iron copper steel plates etc. The

stability of the supply and price trends of these materials will significantly influence its future production

stability and profitability. Although the Company has smooth and sufficient raw material supply channels

changes in the supply-demand structure for these materials could still potentially lead to supply shortages or

fluctuations in price and quality which may negatively impact its product quality cost efficiency and

profitability.Countermeasures: The Company intends to transfer or mitigate the impact of rising raw material costs through

innovations in technological processes optimization of product structures and deepening collaborations with its

customers.

4. Risks of cash flow shortageFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

The Company's products primarily cater to customers such as central enterprises government bodies and

customers from rail transit and other industries. Due to lengthy approval processes and extended project

completion cycles the Company’s sales repayment cycle is elongated exerting considerable pressure on its

cash flow.Countermeasures: The Company adheres to budget management for funds ensuring a dynamic balance between

cash payments and collections. The Company classifies and collects long-term accounts receivables while

increasing assessment efforts implementing reward and punishment measures urging timely recovery of

payments strengthening inventory management and enhancing inventory liquidity. If necessary the Company

may obtain some working capital financing from financial institutions.XII. Reception of research communication interviews and other activities during the

reporting period

□Applicable□Not applicable

During the reporting period there were no activities such as reception of research communication and interviews.XIII. Implementation of the "Dual Enhancement of Quality and Returns" action plan

Has the Company disclosed the "Dual Enhancement of Quality and Returns" action plan.□Yes□NoFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Section IV Corporate Governance

I. Overview of corporate governance

In strict accordance with the requirements of the Company Law Securities Law Code of Corporate

Governance for Listed Companies Listing Rules of Shenzhen Stock Exchange and other relevant laws and

regulations the Company has built a "three organizations and one team" governance system composed of the

Shareholders' General Meeting the Board of Directors the Board of Supervisors and the management team

forming a governance structure with clearly-defined rights and responsibilities separate functions and

coordinated operation. The Company has improved the internal control system strengthened internal and

external supervision and enhanced standardized operation. During the reporting period the Company adhered

to the combination of Party organization construction and corporate governance operated according to law

earnestly safeguarded the legitimate rights and interests of minority shareholders and promoted its sustained

and healthy development.

1. About shareholders and shareholders' meetings

The Company has developed the Articles of Association in strict accordance with the Company Law

Guidelines for Articles of Association of Listed Companies and other laws and regulations to ensure that all

shareholders enjoy equal rights and assume corresponding obligations according to their shares. The convening

holding and voting of shareholders' meetings are conducted in accordance with the laws and regulations and

internet voting mode is allowed for all shareholders to ensure that all shareholders have the right to know and

make decisions on important matters. The decision-making procedures for related party transactions strictly

comply with the laws and regulations and the Articles of Association of the Company and there are no cases of

damage to the interests of the Company and unrelated shareholders.

2. About directors and the Board of Directors

The Company elects directors in strict accordance with the selection procedures stipulated in laws and

regulations and the Articles of Association. There are 8 members of the Board of Directors including 3

independent directors. The number and composition of the Board of Directors comply with laws and regulations.The Board of Directors independent directors and professional committees of the Board of Directors shall

exercise their functions and powers in accordance with laws and regulations and the Articles of Association of

the Company and safeguard the legitimate rights and interests of the Company and all shareholders. All

directors abide by laws and regulations and the relevant provisions of the Articles of Association perform their

duties diligently and cautiously attend board meetings seriously and give their opinions on matters discussed to

ensure the efficient operation and scientific decision-making of the Board of Directors. The convening and

holding of board meetings complies with laws and regulations.

3. Supervisors and the Board of Supervisors

The Company elects supervisors in strict accordance with the selection procedures stipulated in laws and

regulations and the Articles of Association. There are 3 members of the Board of Supervisors including 1

employee supervisor. The number and composition of the Board of Supervisors comply with laws and

regulations. The Board of Supervisors operates independently conscientiously performs its duties inspects theFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Company's finance status according to laws supervises the legal compliance of directors and senior executives

in performing their duties exercises the functions and powers stipulated in the Articles of Association and

safeguards the legitimate rights and interests of the Company and shareholders.

4. Senior executives and incentives

The Company employs senior executives in strict accordance with legal procedures and the Articles of

Association of the Company. There are no cases where controlling shareholders actual controllers and their

related parties interfere with the normal selection procedures of senior executives and directly appoint or

dismiss senior executives without the approval of the Shareholders' General Meeting and the Board of Directors.The Company has established a mechanism linking remuneration with Company performance and individual

performance and takes the performance evaluation of senior executives as an important basis for remuneration

and other incentives of senior executives.

5. Controlling shareholders and their related parties

The controlling shareholder of the Company exercises shareholders' rights and fulfills shareholders' obligations

according to laws and there are no cases where the controlling shareholder and actual controller leverage their

control rights to damage the legitimate rights and interests of the Company and other shareholders. The

nomination or recommendation of candidates for directors and supervisors by controlling shareholder shall

comply with the requirements and procedures stipulated by laws and regulations and the Articles of Association

of the Company. Major decisions of the Company are made by the Shareholders' General Meeting and the

Board of Directors according to laws. The Company is independent of the controlling shareholder and actual

controller in terms of personnel assets finance organizations and businesses. They conduct accounting

independently and bear liability and risks independently. For related party transactions decision-making

procedures and information disclosure obligations are strictly performed in accordance with relevant regulations.The Company does not provide guarantee for the controlling shareholder and its affiliated enterprises. The

controlling shareholder does not occupy the Company's funds for non-operating purposes.

6. Stakeholders environmental protection and social responsibilities

The Company respects the legitimate rights of banks and other creditors employees customers suppliers

communities and other stakeholders. While maintaining its development striving to improve business

performance and protecting the interests of shareholders the Company actively fulfills its social responsibilities

conducts effective exchanges and cooperation with stakeholders to jointly promote the sustained and steady

development of the Company and the industry.

7. Information disclosure and transparency

In strict accordance with laws and regulations self-discipline rules and the Articles of Association the

Company conscientiously fulfills its information disclosure obligations continuously strengthens the

standardization of information disclosure conducts investor exchanges in accordance with regulations fully

protects shareholders' right to be informed ensures the transparency of information disclosure and ensures that

all shareholders of the Company can obtain information with equal opportunities.Is there any significant difference between the actual situation of corporate governance and the laws administrative regulations

and the regulations on the governance of listed companies issued by China Securities Regulatory Commission

□Yes□No

There is no significant difference between the actual situation of corporate governance and the laws administrative regulations andFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.the regulations on the governance of listed companies issued by China Securities Regulatory Commission.

2. The independence of the Company relative to the controlling shareholder and actual

controller in terms of assets personnel finance organizations and business

The Company is independent of and completely separated from the controlling shareholder actual controller

and other related parties in terms of assets personnel finance organizations and business.

1. Assets

The assets owned by the Company are independent and complete with clear established ownership and are not

occupied or controlled by any directors supervisors senior executives controlling shareholder actual controller

and their related parties.

2. Personnel

The Company has an independent labor and personnel system and an independent workforce; Senior executives

are appointed in accordance with regulations and do not hold other administrative positions except directors

and supervisors in the controlling shareholder or enterprises controlled by it.

3. Finance

The Company has an independent financial department has established an independent financial accounting

system and developed financial accounting rules and developed financial management rules for its branches

and subsidiaries. It can make financial decisions independently without the interference of the controlling

shareholder in the use of the Company’s funds.

4. Organizations

The Company has established an independent and sound corporate governance structure and internal operation

management organizations. The Board of Directors the Board of Supervisors and other internal organizations

operate independently and there is no mixed operation with the controlling shareholder.

5. Business

The Company has complete business systems including procurement production sales and R&D systems. It

can make independent decisions and operate independently and does not need to rely on shareholders and other

related parties for production and operation.III. Horizontal competition

□Applicable□Not applicable

4. Annual general meeting of shareholders and extraordinary general meetings of

shareholders held during the reporting period

1. General Meeting of Shareholders during the Reporting Period

Investor

Session Type Date of meeting Date of disclosure Resolution

participation ratioFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.The following

proposals were

reviewed and

approved at the

meeting:

1. Proposal on by-

election of Mr.Jiang Yi as a

director of the 8th

The first

Board of Directors

extraordinary Extraordinary

of the Company;

general meeting of general meeting of 55.40% March 6 2023 March 7 2023

2. Proposal on

shareholders in shareholders

amending the

2023

Articles of

Association of the

Company;

3. Proposal on

amending the

Company’s Rules

of Procedure of the

Board of

Directors;

The following

proposals were

reviewed and

approved at the

meeting:

1. Work Report of

the Company’s

Board of Directors

for 2022;

2. Work Report of

the Company’s

Board of

Supervisors for

2022;

3. The Company's

annual final

2022 annual Annual general financial accounts

general meeting of meeting of 55.24% May 26 2023 May 27 2023 report for 2022;

shareholders shareholders 4. The Company's

profit distribution

plan for 2022;

5. Annual report of

the Company for

2022;

6. Proposal on

expected routine

related party

transactions in

2023

7. Proposal on

engaging an

accounting firm;

8. Proposal on

applying for credit

line from financialFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.company

2. The preferred shareholders whose voting rights have been restored requested to convene an

extraordinary general meeting of shareholders

□Applicable□Not applicable

V. Information on directors supervisors and senior executives

1. Basic information

Numb

er of Numb Numb Numb

shares er of er of er of Reaso

Other

held at shares shares shares ns for

increas

the increas reduce held at the

Servic Term Term es and

beginn ed in d in the end increas

Name Sex Age Post e starts expires reducti

ing of the the of the e or

status on on ons

the current current current decrea

(shares

current period period period se of

)

period (shares (Share (shares shares

(shares ) s) )

)

Direct

Li Octobe

or and In

Langpi Male 59 r 18 0 0 0 0 0

Chair service

ng 2022

man

Shen Octobe

Direct In

Xiaobi Male 45 r 18 0 0 0 0 0

or service

ng 2022

March

Jiang Direct In

Male 43 6 0 0 0 0 0

Yi or service

2023

Shi Octobe

Direct In

Jiandon Male 50 r 18 0 0 0 0 0

or service

g 2022

Octobe

Wang Direct In

Male 45 r 18 0 0 0 0 0

Xingyu or service

2022

Indepe

Song Octobe

ndent In

Tieche Male 56 r 18 0 0 0 0 0

directo service

ng 2022

r

Indepe

Octobe

Gao Femal ndent In

55 r 18 0 0 0 0 0

Jing e directo service

2022

r

Indepe

Octobe

Huang ndent In

Male 43 r 18 0 0 0 0 0

Linkui directo service

2022

r

Superv Octobe

Mei In

Male 41 isor r 18 0 0 0 0 0

Lin service

Chair 2022Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.man of

the

Board

of

Superv

isors

Octobe

Superv In

He Hui Male 38 r 18 0 0 0 0 0

isor service

2022

Qiu August

Femal Superv In

Huizhe 50 23 0 0 0 0 0

e isor service

n 2017

Genera

Februa

Jiang l In

Male 43 ry 16 0 0 0 0 0

Yi Manag service

2023

er

Execut

ive

Deput

Jia Octobe

Femal y In

Haowe 43 r 18 0 0 0 0 0

e Genera service

n 2022

l

Manag

er

Deput

y

Genera

Liao l Octobe

In

Rongch Male 49 Manag r 18 0 0 0 0 0

service

ao er 2022

Chief

Accou

ntant

Deput

y

Octobe

Femal Genera In

Li Jing 48 r 18 0 0 0 0 0

e l service

2022

Manag

er

Secret

ary of

the August

Femal In

Li Jing 48 Board 23 0 0 0 0 0

e service

of 2017

Direct

ors

Genera

Octobe

Fu l In

Male 33 r 18 0 0 0 0 0

Guokai Couns service

2022

el

Februa Februa

Sun Direct Not in

Male 51 ry 14 ry 13 0 0 0 0 0

Xigang or service

20222023

Vice Octobe Februa

Sun Not in

Male 51 Chair r 18 ry 13 0 0 0 0 0

Xigang service

man 2022 2023Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Total -- -- -- -- -- -- 0 0 0 0 0 --

Was there resignation of any directors and supervisors or dismissal of any senior executives during the reporting period

□Yes □No

During the reporting period Vice Chairman Sun Xigang resigned.Changes of directors supervisors and senior executives of the Company

□Applicable □Not applicable

Name Position Type Date Reason

Sun Xigang Vice Chairman Not in service February 13 2023 Resignation

2. Service situation

Professional background main work experience and main responsibilities of current directors supervisors and senior executives of

the Company

Directors:

Li Langping male born in 1964 holds a bachelor’s degree in engineering and is a senior engineer at research

fellow level. He started his career in 1985 and worked in various positions at the 43rd Research Institute of

CETC including technician assistant engineer and engineer Assistant Deputy Director and Deputy Director at

the 5th Office Vice President President and Deputy Secretary of the Party Committee of the 43rd Research

Institute of CETC as also served as director General Manager and Deputy Secretary of the Party Committee at

CETC Microelectronics Technology Co. Ltd. He is currently serving as a director General Manager and

Deputy Secretary of the Party Committee of CETC Glarun Group Co. Ltd. Chairman and Secretary of the

Party Committee of Glarun Technology Co. Ltd. and Chairman and Secretary of the Party Committee of

Nanjing Putian Telecommunications Co. Ltd.Shen Xiaobing male born in 1978 holds a bachelor’s degree and is an engineer. He started his career in 1997

and worked in various positions including technician and assistant engineer at 121st Office of the 12th

Department of the 14th Research Institute of CETC General Manager of Nanjing Lopu Technology Co. Ltd.and General Manager of Nanjing Lopu Co. Ltd. He is currently serving as Deputy General Manager of CETC

Glarun Group Co. Ltd. Chairman of Nanjing Lopu Technology Co. Ltd. Chairman of Nanjing Lopu

Industrial Co. Ltd. Chairman of Nanjing Lopu Co. Ltd. and director of Nanjing Putian Telecommunications

Co. Ltd.Jiang Yi male born in 1980 holds a master’s degree in engineering and is a senior engineer. He started his

career in 2002 and served successively as a probationer in Department VI assistant engineer and engineer in

Office 602 of Department VI at the 14th Research Institute of CETC and Director of the General Office of the

Technical Foundation Department at the 14th Research Institute of CETC. He is currently serving as a director

General Manager and Deputy Secretary of the Party Committee at Nanjing Putian Telecommunications Co. Ltd.Shi Jiandong male born in 1973 holds a master’s degree in engineering and is a senior engineer at research

fellow level. He started his career in 1996 and worked in various positions in the 14th Research Institute of

CETC including assistant engineer and engineer at 302nd Office of the 3rd Department senior engineer at the

402nd Office of the 4th Department Deputy Director of Standardization Office of the Technical Foundation

Department Director of the Production Office of the Science and Technology Department Director of theFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Scientific Research Office of the Science and Technology Department Secretary of United Party Branch of the

logistics company under the Materials and Equipment Department Vice Director of the Materials and

Equipment Department (concurrently) and Director of General Office (concurrently). He is currently serving as

Secretary of the General Party Branch of Structural Technology Research Department in the 14th Research

Institute of CETC and a director of Nanjing Putian Telecommunications Co. Ltd.Wang Xingyu male born in 1978 holds a master’s degree in engineering and is a senior engineer. He started

his career in 2000 and served successively as assistant engineer of the Materials and Equipment Department

and Vice Director of the Materials and Equipment Department in the 14th Research Institute of CETC. He is

currently serving as Deputy Secretary of the United Party Branch in the logistics company under the Materials

and Equipment Department of the 14th Research Institute of CETC and Vice Director of the Materials and

Equipment Department of the 14th Research Institute of CETC and a director of Nanjing Putian

Telecommunications Co. Ltd.Song Tiecheng male born in 1967 holds a doctor’s degree in engineering. He started his career in 1992 served

successively as teaching assistant lecturer and associate professor at Southeast University and is currently a

professor at Southeast University and an independent director of Nanjing Putian Telecommunications Co. Ltd.Gao Jing female born in 1968 holds a bachelor’s degree and is a senior accountant and a certified public

accountant. She started her career in 1989 and worked in various positions including accountant and deputy

director at AVIC Jincheng Group Co. Ltd. deputy director of AVIC Jincheng Nanjing Engineering Institute of

Aircraft System chief project accountant of AVIC Electromechanical Systems Co. Ltd. Chief Risk Control

Officer of Shenzhen Kuang-Chi Cutting-edge Equipment Technology Co. Ltd. CFO of Kuang-Chi

Technologies Co. Ltd. Director of the Risk Control Department and Secretary of the Board of Directors of

Shenzhen Hymson Laser Intelligent Equipment Co. Ltd. She is currently serving as Financial Director of

Shenzhen Hymson Laser Intelligent Equipment Co. Ltd. a director of Changzhou Hymson Jinyu New Energy

Technology Co. Ltd. and an independent director of Nanjing Putian Telecommunications Co. Ltd.Huang Linkui male born in 1980 holds a bachelor’s degree. He started his career in 2003 and used to be a

partner of Jiangsu Tonganning Law Firm and is currently a partner of Grandall (Nanjing) Law Firm and an

independent director of Nanjing Putian Telecommunications Co. Ltd.Supervisors:

Mei Lin male born in 1982 holds a master’s degree in law and is a first-class legal counsel and a senior

engineer. He started his career in 2007 served successively as assistant engineer engineer senior engineer and

Director of Legal Affairs Office of the 14th Research Institute of CETC. He is currently serving as Deputy

General Counsel of CETC Glarun Group Co. Ltd. Director of Legal Affairs Office under the Office of the 14th

Research Institute of CETC a supervisor of Magnichip Co. Ltd. Chairman of the Board of Supervisors of

Nanjing Glarun-Atten Technology Co. Ltd. and Chairman of the Board of Supervisors of Nanjing Putian

Telecommunications Co. Ltd.He Hui male born in 1985 holds a master's degree in management and is a senior accountant. He joined the

work in 2012 served successively as assistant accountant and deputy minister of the Finance Department of the

14th Research Institute of China Electronics Technology Group Corporation and is currently the deputy

minister of the Finance Department of the 14th Research Institute of China Electronics Technology Group

Corporation and a supervisor of Nanjing Putian Telecommunications Co. Ltd.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Qiu Huizhen female born in 1973 holds a bachelor’s degree in economics and is a senior accountant. She

started her career in 1997 served successively as a representative of woman's congress and Secretary of the

CCYL Committee of Shaokou Township Government Wan’an County Jiangxi Province cost accountant of the

Finance Department and CFO of Nanjing Putian Telecommunications Co. Ltd. Deputy Director of the

Personnel Department Deputy Director of the Finance Department and Director of the Finance Department of

Nanjing Putian Telecommunications Co. Ltd. and is currently serving as Director of the Audit Discipline

Inspection and Risk Control Department and an employee supervisor of Nanjing Putian Telecommunications

Co. Ltd.Senior executives:

General Manager Mr. Jiang Yi’s main work experience has previously been outlined in the section on directors.Jia Haowen female born in 1980 holds a bachelor’s degree in management and is a senior human resource

manager. She started her career in 2002 and served successively as administrative management specialist and

sales representative at Shanghai Xinhaoshi Real Estate Co. Ltd.; In Nanjing Putian Telecommunications Co.Ltd. she served successively as Confidential Secretary and Secretary of the CEO's Office Assistant Director of

the Integrated Management Department Assistant Director Deputy Director and Director of the Human

Resources Department Director of the Integrated Management Department (concurrently) Party Branch

Secretary of the Integrated Management Department Director of the Multimedia Application Industry

Department in the HQ (concurrently) and Assistant General Manager. She is currently serving as Executive

Deputy General Manager of Nanjing Putian Telecommunications Co. Ltd. and Chair of Nanjing Southern

Telecom Co. Ltd.Liao Rongchao male born in 1974 holds a master’s degree in accounting and is a senior accountant. He started

his career in 1997 and served successively as probationary accountant and assistant accountant at 200th Office

of the 2nd Department accountant of the Finance Office and Deputy Director of the Finance Department in the

14th Research Institute of CETC. He is currently serving as Deputy General Manager and Chief Accountant of

Nanjing Putian Telecommunications Co. Ltd. and Chairman of Nanjing Putian Telege Intelligent Building Ltd.Li Jing female born in 1975 holds a master’s degree in management and is a senior economist. She started her

career in 1996 and served successively as secretarial clerk and customs broker at Nanjing Mennekes Electric

Co. Ltd. purchaser and employee-employer relation management specialist at Nanjing Putian Computer

Industry Co. Ltd. investment administrator assistant and Deputy Director of the Corporate Development

Department Deputy Director of the Strategic Development Department Deputy Director of the Comprehensive

Management Department Deputy Director and Director of the Investment Management Department and

Director of the Strategic Investment Department at Nanjing Putian Telecommunications Co. Ltd. She is

currently serving as Deputy General Manager and Secretary of the Board of Directors at Nanjing Putian

Telecommunications Co. Ltd. Chairman of Nanjing Putian Datang Information Electronics Co. Ltd. and

Chair of Nanjing Putian Changle Communication Equipment Co. Ltd.Fu Guokai male born in 1990 holds a master’s degree in management and is an engineer. He started his career

in 2016 used to be a probationer in the Discipline Inspection Supervision and Audit Department of the 14th

Research Institute of CETC and is currently serving as General Counsel Deputy Secretary of the Party

Committee and Chairman of the Labor Union at Nanjing Putian Telecommunications Co. Ltd.Service in shareholder unitsFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.□Applicable □Not applicable

Did he/she receive

remuneration and

Name of Position held in

Name of employee Term starts on Term expires on allowances from

shareholder unit shareholder unit

the shareholder

unit

Director General

Manager and

CETC Glarun

Li Langping Deputy Secretary October 15 2020 Yes

Group Co. Ltd.of the Party

Committee

CETC Glarun Deputy General

Shen Xiaobing January 10 2022 Yes

Group Co. Ltd. Manager

CETC Glarun Deputy General

Mei Lin June 3 2022 Yes

Group Co. Ltd. Counsel

Information about

the service in the CETC Glarun Group Co. Ltd. is the controlling shareholder of the Company

shareholder unit

Service in other units

□Applicable □Not applicable

Did he/she receive

Position held in remuneration and

Name of employee Name of other unit Term starts on Term expires on

other unit allowances from

other unit

Glarun

Chairman of the

Li Langping Technology Co. December 3 2020 No

Board

Ltd.Glarun

Secretary of the

Li Langping Technology Co. December 3 2020 No

Party Committee

Ltd.Nanjing Lopu

Chairman of the

Shen Xiaobing Technology Co. February 10 2022 No

Board

Ltd.Nanjing Lopu Co. Chairman of the

Shen Xiaobing February 10 2022 No

Ltd. Board

Secretary of the

General Party

Branch of the

The 14th Research

Shi Jiandong Structural April 6 2023 Yes

Institute of CETC

Technology

Research

Department

Logistics

Company under

the Materials

and Equipment Deputy Secretary

Wang Xingyu Department of of the United Party January 5 2022 No

the 14th Branch

Research

Institute of

CETC

Vice Director of

The 14th Research

Wang Xingyu the Materials and November 2 2020 Yes

Institute of CETC

EquipmentFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Department

Southeast

Song Tiecheng Professor April 8 2005 Yes

University

Shenzhen Hymson

Laser Intelligent

Gao Jing Financial Director January 15 2019 Yes

Equipment Co.Ltd.Changzhou

Hymson Jinyu

Gao Jing New Energy Director May 6 2019 Yes

Technology Co.Ltd.Grandall (Nanjing)

Huang Linkui Partner May 9 2022 Yes

Law Firm

Magnichip Co.Mei Lin Supervisor June 15 2021 No

Ltd.Nanjing Glarun- Chairman of the

Mei Lin Atten Technology Board of December 10 2021 No

Co. Ltd. Supervisors

Vice Director of

The 14th Research

He Hui the Finance November 6 2020 Yes

Institute of CETC

Department

Penalties imposed by securities regulatory authorities in the past three years on the Company's directors supervisors and senior

executives serving or leaving office during the reporting period

□Applicable□Not applicable

3. Remuneration of directors supervisors and senior executives

Decision-making procedures basis for determination and actual payment of remuneration for directors supervisors and senior

executives

The Company did not pay remuneration to its directors and supervisors the directors and supervisors who held

administrative positions of the Company received remuneration according to their administrative positions.Independent directors received independent director allowances from the Company and the allowance standard

was decided by the Shareholders' General Meeting. The remuneration standards and assessment methods of

senior executives were decided by the Board of Directors.For senior executives the Company implemented the performance-based annual remuneration system and

assessed and paid the senior executives according to its production and operation indicators and the completion

of the work undertaken by the senior executives.Remuneration of directors supervisors and senior executives of the Company during the reporting period

Unit: RMB 10000

Did he/she

Total pre-tax receive

remuneration remuneration

Name Sex Age Post Service status

received from from related

the Company parties of the

Company

Chairman of

Li Langping Male 59 the Board of In service 0 Yes

Directors

Shen Xiaobing Male 45 Director In service 0 Yes

Jiang Yi Male 43 Director and In service 40.35 NoFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.General

Manager

Shi Jiandong Male 50 Director In service 0 Yes

Wang Xingyu Male 45 Director In service 0 Yes

Independent

Song Tiecheng Male 56 In service 9 No

director

Independent

Gao Jing Female 55 In service 9 No

director

Independent

Huang Linkui Male 43 In service 9 No

director

Chairman of

Mei Lin Male 41 the Board of In service 0 Yes

Supervisors

He Hui Male 38 Supervisor In service 0 Yes

Qiu Huizhen Female 50 Supervisor In service 24.33 No

Executive

Jia Haowen Female 43 Deputy General In service 63.15 No

Manager

Deputy General

Liao Rongchao Male 49 Manager Chief In service 43.94 No

Accountant

Deputy General

Manager and

Li Jing Female 48 Secretary of the In service 47.42 No

Board of

Directors

General

Fu Guokai Male 33 In service 36.72 No

Counsel

Sun Xigang Male 51 Vice Chairman Not in service 0 Yes

Total -- -- -- -- 282.91 --

Other information

□Applicable□Not applicable

VI. Performance of duties by directors during the reporting period

1. Situation of the Board of Directors during the reporting period

Session Date of meeting Date of disclosure Resolution

The following proposals were reviewed and

approved at the meeting:

1. Proposal on by-election of Mr. Jiang Yi as a

director of the 8th Board of Directors of the

Company;

2. Proposal on amending the Articles of

The 4th Meeting of the 8th Association of the Company;

February 16 2023 February 17 2023

Board of Directors 3. Proposal on amending the Company’s

Rules of Procedure of the Board of Directors;

4. The proposal on the appointment of the

Company's general manager;

5. The proposal on convening the first

extraordinary general meeting of shareholders

in 2023.The 5th Meeting of the 8th The following proposals were reviewed and

April 6 2023 April 7 2023

Board of Directors approved at the meeting:Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

1. Proposal on expected routine related party

transactions in 2023;

2. The proposal on the adjustment of members

of the Strategic Committee and the

Remuneration and Evaluation Committee of

the 8th Board of Directors;

3. The proposal on the formulation of the

Company’s Detailed Working Rules of the

Nomination Committee of the Board of

Directors;

4. The staffing plan of the Nomination

Committee of the Company’s 8th Board of

Directors;

5. The proposal on the adjustment of the

Company's securities affairs representative;

6. The proposal on amending the Annual

Work Procedures of the Audit Committee.The following proposals were reviewed and

approved at the meeting:

1. Work Report of the Company’s Board of

Directors for 2022;

2. Work Report of the Company’s General

Manager for 2022;

3. The Company's annual final financial

accounts report for 2022;

4. The Company's Annual Financial Budget

Report for 2023;

5. The Company's Profit Distribution Plan for

2022;

6. The Company's Annual Report for 2022 and

its summary;

7. Proposal on Provision for Asset Impairment

The 6th Meeting of the 8th in 2022;

April 18 2023 April 20 2023

Board of Directors 8. The Company's Internal Control Evaluation

Report for 2022;

9. Proposal on applying for credit line from

financial company;

10. Proposal on applying for credit line from

banks;

11. Risk continuous assessment report for

CETC Finance Co. Ltd.;

12. Proposal on engaging an accounting firm;

13. Proposal on the remuneration plan of the

Company's senior executives in 2023;

14. The proposal on formulating the

Company's Financing and Guarantee

Management Measures;

15. Proposal on convening the annual general

meeting of shareholders in 2022.The following proposals were reviewed and

approved at the meeting:

1. The Company's report for the first quarter

The 7th Meeting of the 8th

April 28 2023 April 29 2023 of 2023;

Board of Directors

2. The proposal for revising the Company's

Internal Control Deficiency Identification

Standards.The 8th Meeting of the 8th July 26 2023 July 27 2023 The following proposals were reviewed andFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Board of Directors approved at the meeting:

Proposal on applying for credit line from Bank

of Beijing;

The following proposals were reviewed and

approved at the meeting:

1. The work report of the general manager of

the Company for the first half of 2023;

2. The Company's budget implementation

report for the first half of 2023;

3. The Company's semi-annual report and

summary for 2023;

4. Risk continuous assessment report for

CETC Finance Co. Ltd.;

The 9th Meeting of the 8th

August 25 2023 August 29 2023 5. The proposal for amending the Company's

Board of Directors

Related Party Transaction Management

Measures;

6. The proposal for revising the Company's

Information Disclosure Management Rules;

7. The proposal for revising the Company's

Management Rules for the Registration of

Persons Informed of Inside Information;

8. The proposal for liquidating and closing

Chongqing Puhua Information Technology

Co. Ltd.The following proposals were reviewed and

The 10th Meeting of the 8th approved at the meeting:

September 20 2023 September 21 2023

Board of Directors The proposal for liquidating and dissolving

Nanjing Putian Network Co. Ltd.The following proposals were reviewed and

The 11th Meeting of the 8th

October 30 2023 October 31 2023 approved at the meeting:

Board of Directors

Report for the third quarter of 2023

The following proposals were reviewed and

approved at the meeting:

1. The proposal for liquidating and dissolving

the Seventh Branch of Nanjing

Communication Equipment Factory;

The 12th Meeting of the 8th 2. The proposal for amending the Company's

December 6 2023 December 7 2023

Board of Directors Working Rules of Independent Directors;

3. The proposal for amending the Company's

Working Rules for Independent Directors'

Annual Reports;

4. The proposal for adjusting the Company’s

internal management structure.

2. Attendances of directors at board meetings and general meetings of shareholders

Attendances of directors at board meetings and general meetings of shareholders

Number of Whether

board Number of

Number of Number of there was a Number of

meetings that attendances Number of

on-site attendances failure to attendances

Name of should be at board absences

attendances at board attend board at

director attended meetings via from board

at board meetings by meetings in shareholders'

during the communicati meetings

meetings proxy person for meetings

reporting on means two

period consecutiveFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.times

Li Langping 9 1 8 0 0 No 1

Shen

9 0 9 0 0 No 0

Xiaobing

Jiang Yi 8 1 7 0 0 No 1

Shi Jiandong 9 1 8 0 0 No 0

Wang

9 1 8 0 0 No 0

Xingyu

Song

9 1 8 0 0 No 0

Tiecheng

Gao Jing 9 1 8 0 0 No 0

Huang

9 1 8 0 0 No 0

Linkui

Explanation for not attending board meetings in person for two consecutive times

Not applicable

3. Directors' objections to relevant matters of the Company

Did any directors raise any objections to the relevant matters of the Company

□Yes□No

During the reporting period directors did not raise any objections to the relevant matters of the Company.

4. Other explanations of directors' performance of their duties

Were directors' suggestions for the Company adopted

□Yes □No

Explanation of whether the Company adopted suggestions made by directors

During the reporting period all directors of the Company worked in strict accordance with the Company Law

Securities Law Listing Rules of Shenzhen Stock Exchange Guidelines of Shenzhen Stock Exchange on

Standardized Operation of Listed Companies and the Articles of Association of the Company attended the

board meetings on time carefully studied various proposals submitted to the Board of Directors according to

the actual situation of the Company and made prudent decisions supervised and promoted the implementation

of resolutions of the Board of Directors and safeguarded the legitimate rights and interests of the Company and

all shareholders.VII. Situation of the special committees under the Board of Directors during the reporting

period

Number Important Details of

Name of the of Date of Content of opinions and Performanc matters

Members

committee meetings meeting the meeting suggestions put e of duties objected (if

held forward any)

Gao Jing Shi 1. Review of 1. The Company's

Audit and

Jiandong the annual report and

Risk Control

Wang Company's summary for 2022

Committee 1 April 13 2023

Xingyu annual report were reviewed

of the Board

Song and summary and approved;

of Directors

Tiecheng for 2022; 2. The proposalFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Huang 2. Review of on engaging an

Linkui the proposal audit firm for the

on engaging Company in 2023

an was reviewed and

accounting approved and it

firm; was agreed to

propose to the

Board of

Directors to

engage WUYIGE

Certified Public

Accountants LLP

(Special General

Partnership) as

the financial and

internal control

audit institution of

the Company in

2023.

Gao Jing Shi

Jiandong Review of

Audit and The Company's

Wang the

Risk Control report for the first

Xingyu Company's

Committee 1 April 26 2023 quarter of 2023

Song report for the

of the Board was reviewed and

Tiecheng first quarter

of Directors approved

Huang of 2023

Linkui

Gao Jing Shi

Review of

Jiandong The Company's

Audit and the

Wang semi-annual

Risk Control Company's

Xingyu August 21 report and

Committee 1 semi-annual

Song 2023 summary for 2023

of the Board report and

Tiecheng were reviewed

of Directors summary for

Huang and approved

2023

Linkui

Gao Jing Shi

Jiandong Review of

Audit and The report for the

Wang the

Risk Control third quarter of

Xingyu October 25 Company’s

Committee 1 2023 was

Song 2023 report for the

of the Board reviewed and

Tiecheng third quarter

of Directors approved

Huang of 2023

Linkui

Review of

The proposal on

Song the proposal

Remuneratio the remuneration

Tiecheng on the

n and plan of the

Jiang Yi remuneration

Evaluation Company's senior

Wang 1 April 13 2023 plan of the

Committee executives in

Xingyu Gao Company's

of the Board 2023 was

Jing Huang senior

of Directors reviewed and

Linkui executives in

approved

2023

VIII. Work of the Board of Supervisors

The Board of Supervisors tried to identify risks of the Company in supervision activities during the reporting periodFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.□Yes□No

The Board of Supervisors had no objection to the supervision matters during the reporting period.IX. Employees of the Company

1. Number of employees areas of expertise and educational attainment

Number of employees in the parent company at the end of the

134

reporting period (unit: person)

Number of employees in major subsidiaries at the end of the

646

reporting period (unit: person)

Total number of employees at the end of the reporting period

784

(unit: person)

Total number of paid employees in the current period (unit:

956

person)

Number of retired employees who receive payments from the

338

parent company and major subsidiaries (unit: person)

Areas of expertise

Area of expertise Number of employees with the expertise (unit: person)

Production personnel 156

Sales personnel 233

Technical personnel 292

Financial personnel 25

Administrative personnel 78

Total 784

Education attainment

Education attainment Number of persons

Master degree or above 22

Bachelor’s degree 352

Junior college diploma 267

Senior high school and below 143

Total 784

2. Remuneration policy

The Company strictly implements the national provincial and municipal laws and regulations and standardizes

the distribution and payment of remuneration and benefits. In order to further mobilize the enthusiasm initiative

and creativity of employees the Company implements an efficiency-oriented and performance-based

remuneration distribution mechanism and develops remuneration and performance appraisal methods for

different positions according to the characteristics of different positions. Additionally the Company provides its

employees with five social insurances housing provident fund and enterprise annuity in accordance with

relevant national regulations.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

3. Training plans

According to the Company's development plan and the principle of Party-led talent management the Company

upholds new development concepts in the new development stage and focuses on talent work deployment in the

new era. The Company places great importance on the development of employees’ capabilities with particular

emphasis on three aspects: training and education on-the-job cultivation and practical experience and

improves its training system to enhance the quality of its talent pool. The Company also prioritizes the training

of innovative and versatile talents and strengthens training through a layered and graded approach to build up

reserves of talents for its innovation and transformation.

4. Labor outsourcing

□Applicable□Not applicable

X. Profit distribution and conversion of capital provident fund to share capital

Development implementation or adjustment of profit distribution policies especially cash dividend policies during the reporting

period

□Applicable□Not applicable

During the reporting period the Company made profits and the profit available to shareholders of the parent company was positive

but no cash dividend distribution plan was proposed

□Applicable□Not applicable

Profit distribution and conversion of capital provident fund to share capital during the reporting period

□Applicable□Not applicable

The Company planed not to distribute cash dividends and bonus shares or increase its share capital from provident fund.XI. Implementation of the Company’s equity incentive plan employee stock ownership plan

or other employee incentive measures

□Applicable□Not applicable

During the reporting period the Company had no equity incentive plan employee stock ownership plan or other employee

incentive measures and implementation of such plans and measures.XII. Construction and implementation of internal control system during the reporting

period

1. Construction and implementation of internal control

The Company consistently improves its rules and regulations to ensure compliance with legal and regulatory

requirements and orderly execution of operations. In 2023 the Company developed or revised a total of 44 rules:

3 at the upper level 18 at the mid-level and 23 at the lower level. In reinforcing Party leadership the Company

added and updated several systems including the Working Rules of the CCP Committee at Nanjing Putian

Telecommunications Co. Ltd. the Detailed Rules for the Implementation of the Party Ideology Work

Accountability System under New Circumstances the Work Report Evaluation and Assessment Measures for

Primary Party Organization Secretaries in Party Building the Party Building Work Assessment and EvaluationFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Measures and the Comprehensive Checklist for the Party Committee’s Implementation of Strict Party

Discipline. In corporate governance the Company refined the Articles of Association the Rules of Procedure of

the Board of Directors the Detailed Working Rules of the Nomination Committee of the Board of Directors the

Information Disclosure Management Rules and the Rules for the Registration of Persons Informed of Inside

Information. In daily business management the Company introduced or revised rules including the Recruitment

and Employment Management Rules Management Measures for Key Young Staff Members Funds

Management Measures Financing and Guarantee Management Measures Financial Accounting Management

Measures Rules for Science and Technology Innovation Management Strategic Planning Management Rules

Customer Credit Management Measures Marketing and Sales Management Measures Comprehensive Risk

Management Measures and Compliance Management Measures. These rules span strategic technology human

resource management financial and asset management legal and compliance management investment

management risk control marketing quality and procurement management and other work related to the daily

production and operation of the Company thus ensuring efficient operational processes.To further enhance its internal control structure the Company established a Legal and Compliance Department

charged with refining foundational internal control rules and developing a comprehensive internal control

mechanism. Adhering to graded and categorized rules departments were organized to draft amend abolish

and clarify rules and regulations leading the compilation and maintenance of these rules and regulations.The Company implemented safety standardization and integrated management system of quality environment

and safety and prepared a number of documents including safety standardization documents integrated

management system manuals and procedure documents. The Company supervised and evaluated the design

and implementation of internal control rules and regulations by carrying out annual internal control self-

evaluation external audit of internal control inspection and acceptance of comprehensive management system

and carrying out special inspections from time to time. According to the requirements of the Company's internal

control rules and relevant regulations internal control has been established in all major aspects and effectively

implemented achieving the goal of internal control. No major defects in internal control of financial reports and

non-financial reports have been found. To meet needs of operation and business development the Company

will continue to improve the construction of internal control system strengthen the enforcement of internal

control system to promote the healthy development of the Company.

2. Details of major internal control defects found during the reporting period

□Yes□No

XIII. Management and control of subsidiaries by the Company during the reporting period

Problems

Integration Settlement Follow-up

Company name Integration plan encountered in Solutions taken

progress progress settlement plan

integration

None Not applicable Not applicable Not applicable Not applicable Not applicable Not applicableFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.XIV. Internal control evaluation report or internal control audit report

1. Internal control evaluation report

Date of disclosing full-text internal

April 27 2024

control evaluation report

Index of the disclosed full-text internal CNINFO (www.cninfo.com.cn) "Internal Control Evaluation Report 2023 of Nanjing

control evaluation report Putian Telecommunications Co. Ltd."

Proportion of the total assets of the unit

included in the evaluation scope to the

100.00%

total assets in the Company's

consolidated financial statements

Proportion of the operating revenue of

the unit included in the evaluation scope

to the operating revenue in the 100.00%

Company’s consolidated financial

statements

Defect identification criteria

Category Financial reporting Non-financial reports

Laws and regulations: Minor violations

that have been corrected are general

defects violations that result in

punishment are important defects and

serious violations that lead to severe

punishment or criminal liability are

major defects.Any of the following circumstances

Operation: Temporary halts in

(including but not limited to the

production that can be restored within

circumstances) shall generally be

half a day are considered as general

deemed as a "major defect" in the

defects halts lasting up to 2 days are

internal control of financial reports:

considered as important defects and

（1） Senior executives abuse their halts lasting 3 days or more are

powers and commit major fraud;

considered as major defects.

（2）Any reported or disclosed financial Reputation: When negative news

reports are corrected due to the discovery

circulates within the Company without

of significant accounting errors in

greatly affecting its reputation it is

previous years;

Qualitative criteria considered as a general defect. If

（3） It is found that there is a material negative news spreads in a certain area

misstatement in the current financial

and causes significant damage to the

statements but the misstatement was not

Company's reputation it is considered as

found in the internal control process;

an important defect. When negative news

（4）The supervision of internal control circulates throughout the country and

by internal audit institutions is not

causes significant damage to the

effective;

Company's reputation it is considered as

（5）Major or important defects that a major defect.

have been identified and reported to the

Safety: General defects are those that

management team have not been

cause brief impacts on the health of

rectified within a reasonable time limit.employees or citizens that can be

restored to normal within a short period.Important defects are those that cause the

death of an employee or citizen or

require a longer period of time to recover

their health. Major defects are those that

cause the death of multiple employees orFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.citizens or result in irreparable damage to

their health.Environment: Environmental pollution

and damage that are within a controllable

range and do not cause permanent

environmental impact are considered as

general defects. Important defects are

those that cause significant pollution to

the surrounding environment and require

high restoration costs. Major defects are

those that cause permanent pollution or

irreparable damage to the surrounding

environment;

Any of the following circumstances

(including but not limited to the

circumstances) shall generally be

deemed as a "major defect" in the

internal control of non-financial reports:

(1) Serious violation of national laws

administrative regulations and normative

documents causing adverse effects;

(2) Any important decisions important

issues important personnel appointments

and dismissals and large sum payments

were not approved through the collective

decision-making process;

(3) Serious loss of management

personnel and technical personnel in key

positions;

(4) Important business operations related

to the Company's production and

operation lack institutional controls or

suffer from institutional system failures;

(5) Major/important defects in internal

control are not rectified in time.Potential errors or omissions of total

profit in financial report: Errors or

omissions that are less than 2% of the

total profit/RMB 500000 are general

defects. Errors or omissions that are

greater than or equal to 2% of the total

profit/RMB 500000 and less than 3% of

the total profit/RMB 3 million are Potential assets and capital losses: Losses

important defects. Errors or omissions that are less than RMB 100000 are

that are greater than or equal to 3% of the general defects; Losses that are greater

total profit/RMB 3 million are major than or equal to RMB 100000 and less

Quantitative criteria

defects. than RMB 1 million are important

Potential errors or omissions of total defects; Losses that are greater than or

assets in financial reports: Errors or equal to RMB 1 million are major

omissions that are less than 1% of the defects.total assets/RMB 2 million are general

defects. Errors or omissions that are

greater than or equal to 1% of the total

assets/RMB 2 million and less than 2%

of the total assets/RMB 100 million are

important defects. Errors or omissions

that are greater than or equal to 2% of theFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.total assets/RMB 100 million are major

defects.Potential errors or omissions of operating

revenue in financial reports: Errors or

omissions that are less than 0.5% of the

total operating revenue/RMB 2 million

are general defects. Errors or omissions

that are greater than or equal to 0.5% of

the total operating revenue/RMB 2

million and less than 1% of the total

operating revenue/RMB 100 million are

important defects. Errors or omissions

that are greater than or equal to 1% of the

total operating revenue/RMB 100 million

are major defects.Potential errors or omissions of owners'

equity in financial reports: Errors or

omissions that are less than 0.5% of the

total owners' equity/RMB 1 million are

general defects. Errors or omissions that

are greater than or equal to 0.5% of the

total owners' equity/RMB 1 million and

less than 1% of the total owners'

equity/RMB 5 million are important

defects. Errors or omissions that are

greater than or equal to 1% of the total

owners' equity/RMB 5 million are major

defects.Number of major defects in financial

0

reports

Number of major defects in non-financial

0

reports

Number of important defects in financial

0

reports

Number of important defects in non-

0

financial reports

2. Internal control audit report

□Applicable □Not applicable

Consideration paragraph in internal control audit report

We believe that Nanjing Putian maintained effective internal control over financial reports in all major aspects in accordance with

the Basic Standards for Internal Control of Enterprises and relevant regulations.Disclosure of internal control audit report Disclosed

Disclosure date of full-text internal control audit report April 27 2024CNINFO (www.cninfo.com.cn) “Internal Control AuditDisclosure index of the full-text internal control audit reportReport 2023 of Nanjing Putian Telecommunications Co. Ltd.”

Type of opinions in internal control audit report Standard unqualified opinion

Whether there are major defects in non-financial reports No

Did the accounting firm issue an internal control audit report with non-standard opinions

□Yes□NoFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the Board of

Directors

□Yes □No

XV. Rectification of problems found during self-inspection in special actions for listed

company governance

The self-examination of the company's "Special action on Listed Company Governance" in April 2021 has been

rectified in October 2022.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Section V Environmental and Social Responsibilities

I. Major environmental protection issues

Whether the listed company and its subsidiaries are key pollutant discharge units announced by the environmental protection

department

□Yes□No

Administrative punishment due to environmental problems during the reporting period

Influence on the

Rectification

Name of company Reasons for production and

Violation Penalty measures taken by

or subsidiary punishment operation of the

the Company

listed company

------

Refer to other environmental information disclosed by key pollutant discharge units

-

Measures taken to reduce carbon emissions during the reporting period and their effects

□Applicable□Not applicable

Reasons for not disclosing other environmental information

The Company and its subsidiaries are not key pollutant discharge units announced by the environmental

protection department. During the reporting period the Company strictly implemented the relevant national

environmental protection laws and regulations and there was no violation of environmental protection laws and

regulations and there was no administrative punishment by the environmental protection department for

environmental violations.II. Social responsibilities

For details please refer to the 2023 Environmental Social and Corporate Governance Report released by the

Company on the same day.III. Consolidation and expansion of the achievements in poverty alleviation and rural

revitalization efforts

The Company is committed to supporting special groups offering aid and regular visits to employees facing

difficulties. It aims to handle concrete affairs give support and solve problems for employees in difficulty

ensuring that these employees genuinely feel the support and warmth of the Labor Union and the Company.This has been a foundational practice of the Company for many years.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Section VI Important Matters

I. Implementation of commitments

1. Commitments fulfilled by the actual controllers shareholders related parties purchasers and the

Company during the reporting period and commitments not fulfilled by the end of the reporting period

□Applicable □Not applicable

Subject of Commitment Type of Contents of Date of Fulfillment

Valid period

commitment party commitments commitments commitment status

Commitments

See

China on horizontal

"Commitment

Electronics competition

1" under "2. August 31 Being fulfilled

Technology related party Long-term

Details of 2021 normally

Group transactions

commitments"

Corporation and capital

for details.occupation

Commitments

China on horizontal

Electronics competition See

August 31 Being fulfilledTechnology related party “Commitment Long-term

2021 normallyGroup transactions 2”

Corporation and capital

occupation

Commitments

China on horizontal

Electronics competition See

August 31 Being fulfilledTechnology related party “Commitment Long-term

2021 normallyCommitments Group transactions 3”

made in Corporation and capital

acquisition occupation

reports or Commitment

equity change on maintaining

reports the

See

CETC Glarun independence October 12 Being fulfilled“Commitment Long-termGroup Co. Ltd. of Nanjing 2022 normally

4”

Putian

Telecommunica

tions Co. Ltd.Commitment

on avoiding

horizontal

See

CETC Glarun competition October 12 Being fulfilled“Commitment Long-termGroup Co. Ltd. with Nanjing 2022 normally

5”

Putian

Telecommunica

tions Co. Ltd.Commitment

on See

CETC Glarun October 12 Being fulfilledstandardization “Commitment Long-termGroup Co. Ltd. 2022 normallyand reduction 6”

of related partyFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.transactions

Commitments

on horizontal

China Potevio

competition See

Information October 13related party “Commitment April 18 2023 FulfilledIndustry Co. 2020transactions 7”

Ltd.and capital

occupation

China Potevio

Commitments

Information

on horizontal

Industry Co.competition See

Ltd.; China October 13related party “Commitment April 18 2023 FulfilledPotevio 2020transactions 8”

Information

and capital

Industry Group

occupation

Co. Ltd.China Potevio

Information

Industry Co.See

Ltd.; China Other October 13“Commitment April 18 2023 FulfilledPotevio commitments 2020

9”

Commitments Information

made during Industry Group

asset Co. Ltd.reorganization Xu Qian; Wang

Wenkui; Li

Tong; Liu Yun;

Wang Jinfeng;

Qin Zhen; Tang

Fuxin; Xie See

Other November 25 Being fulfilledManlin; Du “Commitment Long-termcommitments 2020 normallyXiaorong; Jia 10”

Haowen; Lei

Xu; Liu

Xiaodong;

Wang Huailin;

Li Jing

China Potevio

Information

Industry Co.See

Ltd.; China Other November 25“Commitment April 18 2023 FulfilledPotevio commitments 2020

11”

Information

Industry Group

Co. Ltd.Commitments

on horizontal

China Potevio

competition See

InformationOther related party “Commitment April 8 2018 April 18 2023 FulfilledIndustry Co.commitments transactions 12”Ltd.made to and capital

minority occupation

shareholders of Commitments

the Company China Potevio on horizontal See

Informationcompetition “Commitment April 8 2018 April 18 2023 FulfilledIndustry Co.related party 13”

Ltd.transactionsFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.and capital

occupation

Commitments

on horizontal

China Potevio

competition See

Informationrelated party “Commitment April 8 2018 April 18 2023 FulfilledIndustry Co.transactions 14”

Ltd.and capital

occupation

Commitments

on horizontal

China Potevio

competition See

Informationrelated party “Commitment April 8 2018 April 18 2023 FulfilledIndustry Grouptransactions 15”

Corporation

and capital

occupation

Commitments

on horizontal

China Potevio

competition See

Informationrelated party “Commitment April 8 2018 April 18 2023 FulfilledIndustry Grouptransactions 16”

Corporation

and capital

occupation

Commitments

on horizontal

China Potevio

competition See

Informationrelated party “Commitment April 8 2018 April 18 2023 FulfilledIndustry Grouptransactions 17”

Corporation

and capital

occupation

China Potevio

See

Information Other“Commitment June 19 2018 April 18 2023 FulfilledIndustry Group commitments

18”

Corporation

Is the

commitment

Yes

fulfilled on

time

If a

commitment is

not fulfilled on

time the

specific reasons

for the failed Not applicable

fulfillment and

the next work

plan shall be

specified in

detail

2. Details of commitments

Commitment 1

Commitment made by: China Electronics Technology Group CorporationFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Contents of commitments

After the review by the State-owned Assets Supervision and Administration Commission of the State Council

and the approval by the State Council China Potevio Information Industry Group Co. Ltd. (hereinafter referred

to as "China Potevio") was transferred to China Electronics Technology Group Corporation (hereinafter referred

to as "the Company") free of charge and became a wholly-owned subsidiary of the Company (hereinafter

referred to as "the Reorganization"). The Reorganization will result in the Company becoming the indirect

controlling shareholder of Nanjing Putian Telecommunications Co. Ltd. (hereinafter referred to as the "Listed

Company") a listed company affiliated to China Potevio. As the purchaser of the Listed Company in order to

ensure the independence of the Listed Company in terms of assets personnel finance business and

organizations the Company hereby makes the following commitments:

1. Personnel independence

(1) The Company ensures that the general manager deputy general manager chief financial officer secretary of

the Board of Directors and other senior executives of the Listed Company will not hold other administrative

positions except directors and supervisors in the Company and other enterprises and institutions controlled bythe Company (hereinafter referred to as “Subordinate Enterprises and Institutions") and will not receiveremuneration from the Company and its Subordinate Enterprises and Institutions.

(2) The Company ensures that the financial personnel of the Listed Company will not work part-time in the

Company and its Subordinate Enterprises and Institutions.

2. Financial independence

(1) The Company ensures that the Listed Company sets up an independent financial accounting department has

independent financial accounting system and financial management rules and makes financial decisions

independently.

(2) The Company ensures that the Listed Company remains independent in financial decision-making and that

the Company and its Subordinate Enterprises and Institutions do not interfere in the use of funds by the Listed

Company.

(3) The Company ensures that the Listed Company independently opens accounts in banks and settle revenue

and expenditures and independently files tax returns and fulfills tax obligations according to laws.

3. Organizational independence

(1) The Company ensures that the Listed Company and its subsidiaries establish and improve their corporate

governance structures according to laws and can operate independently and that the offices and production and

business premises of the Listed Company are separated from the Company and its Subordinate Enterprises and

Institutions.

(2) The Company ensures that the Listed Company and its subsidiaries operate independently without

subordinate relationship with the Company’s functional departments.

4. Asset independence

(1) The Company ensures that the Listed Company has independent and complete assets.

(2) The Company ensures that the Company and its Subordinate Enterprises and Institutions do not illegallyFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

occupy assets funds and other resources of the Listed Company.

5. Business independence

(1) The Company ensures the independence of the Listed Company’s business and operation activities.

(2) The Company ensures that the Listed Company signs contracts and carries out business independently

forms an independent and complete business system implements independent accounting of operation and

management bears liabilities and risks independently and has the ability to operate independently and

continuously in the market.This commitment shall remain in force during the period during which the Company has control over the Listed

Company. If the Company fails to fulfill the above commitment and causes losses to the Listed Company the

Company will bear corresponding liability for compensation.Commitment 2

Commitment made by: China Electronics Technology Group Corporation

Contents of commitments

After the review by the State-owned Assets Supervision and Administration Commission of the State Council

and the approval by the State Council China Potevio Information Industry Group Co. Ltd. (hereinafter referred

to as "China Potevio") was transferred to China Electronics Technology Group Corporation (hereinafter referred

to as "the Company") free of charge and became a wholly-owned subsidiary of the Company (hereinafter

referred to as "the Reorganization"). The Reorganization will result in the Company becoming the indirect

controlling shareholder of Nanjing Putian Telecommunications Co. Ltd. (hereinafter referred to as the "Listed

Company") a listed company affiliated to China Potevio. As the purchaser of the Listed Company in order to

avoid horizontal competition and safeguard the interests of public shareholders the Company hereby makes the

following commitment:

From the date of issuance of this Letter of Commitment the Company will further investigate whether there is

horizontal competition with the Listed Company. If there is horizontal competition with the Listed Company

the Company will strengthen internal coordination and control management to ensure the healthy and

sustainable development of the Listed Company without damaging the interests of the Listed Company and its

public investors; If there is no horizontal competition during the period when the Company directly or

indirectly maintains substantial equity control over the Listed Company it will strictly abide by the relevant

rules formulated by the CSRC and the stock exchange and the Articles of Association of the Listed Company

and will not leverage its control over the Listed Company to engage in horizontal competition that harms the

legitimate rights and interests of the Listed Company and its minority shareholders.The above Letter of Commitment shall take effect from the date of issuance of the Letter of Commitment and

shall remain valid during the legal and effective existence of the Listed Company and the period when the

Company is the actual controller of the Listed Company.Commitment 3

Commitment made by: China Electronics Technology Group Corporation

Contents of commitmentsFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.After the review by the State-owned Assets Supervision and Administration Commission of the State Council

and the approval by the State Council China Potevio Information Industry Group Co. Ltd. (hereinafter referred

to as "China Potevio") was transferred to China Electronics Technology Group Corporation (hereinafter referred

to as "the Company") free of charge and became a wholly-owned subsidiary of the Company (hereinafter

referred to as "the Reorganization"). The Reorganization will result in the Company becoming the indirect

controlling shareholder of Nanjing Putian Telecommunications Co. Ltd. (hereinafter referred to as the "Listed

Company") a listed company affiliated to China Potevio. As the acquirer of the Listed Company in order to

ensure the legitimate rights and interests of the Listed Company and its minority shareholders the Company

makes the following commitment concerning regulating related party transactions between the Company and

the Listed Company:

1. The Company and its subordinate units controlled by the Company will try their best to avoid or reduce

unnecessary related party transactions with the Listed Company and its subsidiaries; Related business

transactions or transactions that are necessary or reasonable will be conducted on the basis of equality and

voluntariness and in accordance with the principles of fairness impartiality and openness and the transaction

prices will be reasonably determined based on market prices. For related party transactions that are difficult to

compare with market prices or subject to pricing limitations the standards of relevant costs and profits should

be clearly defined in contracts and decision-making procedures should be performed in accordance with

relevant laws and regulations normative documents and the Articles of Association of the Listed Company so

as to ensure that the legitimate rights and interests of the Listed Company and other shareholders will not be

damaged through related party transactions and information disclosure obligations should be performed in

accordance with relevant regulations.

2. Any agreement and arrangement made by the Company its controlled subordinate enterprises and the Listed

Company on related affairs and related party transactions shall not prevent them from conducting business

dealings or transactions with any third party for their own benefit under the same competitive conditions in the

market.This Letter of Commitment shall remain valid during the legal and valid existence of the Listed Company and

the period when the Company is the actual controller of the Listed Company. If the Listed Company suffers

losses due to the Company's violation of the commitment under this Letter of Commitment the Company will

bear corresponding compensation liabilities according to laws.Commitment 4

Commitment made by: CETC Glarun Group Co. Ltd.Contents of commitments

As the acquirer of NXT B the Company hereby makes the following commitment to ensure the independence

of the Listed Company in assets personnel finance business and organizations after the completion of this

acquisition:

1. Personnel independence

(1) The Company ensures that the general manager deputy general manager chief financial officer secretary of

the Board of Directors and other senior executives of the Listed Company will not hold other positions except

directors and supervisors in the Company and other enterprises and institutions controlled by the CompanyFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.(hereinafter referred to as “Subordinate Enterprises and Institutions") and will not receive remuneration fromthe Company and its Subordinate Enterprises and Institutions.

(2) The Company ensures that the financial personnel of the Listed Company will not work part-time in or

receive remuneration from the Company and its Subordinate Enterprises and Institutions.

(3) The Company ensures that the Listed Company has complete and independent labor personnel and

remuneration management systems and that these systems are completely independent of the Company and

other enterprises and institutions controlled by the Company.

2. Financial independence

(1) The Company ensures that the Listed Company sets up an independent financial accounting department has

independent financial accounting system and financial management rules and makes financial decisions

independently.

(2) The Company ensures that the Listed Company remains independent in financial decision-making and that

the Company and its Subordinate Enterprises and Institutions do not interfere in the use of funds by the Listed

Company.

(3) The Company ensures that the Listed Company independently opens accounts in banks and settle revenue

and expenditures and independently files tax returns and fulfills tax obligations according to laws.

(4) The Company ensures that the financial personnel of the Listed Company do not serve concurrently in the

Company and its Subordinate Enterprises and Institutions.

3. Organizational independence

(1) The Company ensures that the Listed Company and its subsidiaries establish and improve their corporate

governance structures according to laws establish independent and complete organizations and operate

independently and that the office and production and business premises of the Listed Company are separated

from the Company and its Subordinate Enterprises and Institutions without confusion among their

organizations.

(2) The Company ensures that the Listed Company and its subsidiaries operate independently without

subordinate relationship with the Company’s functional departments.

4. Asset independence

(1) The Company ensures that the Listed Company has independent and complete assets.

(2) The Company ensures that the Company and its Subordinate Enterprises and Institutions do not illegally

occupy assets funds and other resources of the Listed Company.

5. Business independence

(1) The Company ensures the independence of the Listed Company’s business and operation activities.

(2) The Company ensures that the Listed Company has assets personnel and qualifications to independently

carry out business activities sign contracts and carry out business independently forms an independent and

complete business system implements independent accounting of operation and management bears liabilities

and risks independently and has the ability to operate independently and continuously in the market.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

(3) In case of necessary related party transactions between the Company/its Subordinate Enterprises and

Institutions and the Listed Company agreements shall be signed according to laws and necessary legal

procedures shall be performed in accordance with relevant laws regulations and Articles of Association of the

Listed Company.This commitment shall remain valid during the legal and valid existence of the Listed Company and the period

when the Company is the controlling shareholder of the Listed Company. If the Company fails to fulfill the

above commitment and causes losses to the Listed Company the Company will bear corresponding liability for

compensation.Commitment 5

Commitment made by: CETC Glarun Group Co. Ltd.Contents of commitments

The main business of the Company is not identical or similar to that of the Listed Company. Before this

acquisition the actual controller of the Listed Company was China Electronics Technology Group Corporation

(hereinafter referred to as "CETC"). After the completion of this acquisition the actual controller of the Listed

Company is still CETC. This acquisition is carried out between different subjects controlled by the same actual

controller without causing changes in the actual controller of the Listed Company and the related parties of the

Listed Company. Therefore this acquisition will not cause new horizontal competition between the related

parties and the Listed Company.In order to avoid horizontal competition and safeguard the interests of public shareholders the Company hereby

makes the following commitment:

I. As of the date of issuance of this Letter of Commitment the Company and other enterprises controlled by the

Company do not engage in or participate in any business or activities that constitutes a substantial competition

against the Listed Company in its main business.II. After the completion of this acquisition the Company and other enterprises controlled by the Company will

not directly or indirectly engage in the business same as the main business of the Listed Company.III. After the completion of this acquisition the Company ensures that the Company and its subordinate units

will not have substantial horizontal competition against the Listed Company in the future through internal

coordination and control management. If the Company and its subordinate units get business opportunities to

engage in new businesses that may result in horizontal competition against the Listed Company the Company

and its subordinate units will give priority to offering the business opportunities of the said new businesses to

the Listed Company for selection and make their best efforts to enable the business opportunities of the said

new businesses to transfer to the Listed Company.If the Listed Company gives up the business opportunities of the said new businesses the Company and its

subordinate units can operate the relevant new businesses on their own but in the future with the needs of

business development the Listed Company will still enjoy the following rights as permitted by the applicable

laws and regulations and relevant regulatory rules:

1. The Listed Company has the right to purchase assets and equity related to the above businesses from the

Company and its subordinate units for one or more times;

2. In addition to acquisition the Listed Company may as permitted by applicable laws regulations and relevant

regulatory rules choose to operate the assets and/or businesses related to the above businesses of the Company

and its subordinate units by means of entrusted management lease contracted operation and licensed use.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.IV. This Letter of Commitment shall remain valid during the legal and effective existence of the Listed

Company and the period when the Company is the controlling shareholder of the Listed Company; From the

date of issuance of this Letter of Commitment if the Listed Company suffers losses due to the violation of the

commitment under this Letter of Commitment by the Company or its subordinate units the Company will bear

corresponding compensation liabilities according to laws.If the commitment hereunder is impossible to fulfill or needs to be adjusted due to objective reasons such as

policy adjustment and market changes the Company and the Listed Company will give public explanations to

the market in advance to fully disclose the reasons for adjustment or failure to fulfill the commitment and

propose corresponding solution.Commitment 6

Commitment made by: CETC Glarun Group Co. Ltd.Contents of commitments

After the completion of this acquisition the Listed Company will continue to strictly comply with the

requirements of relevant laws regulations and the Listing Rules abide by the Articles of Association and other

provisions on related party transactions perform necessary legal procedures conduct related party transactions

in accordance with legal and effective agreements give full play to the role of independent directors in practical

work follow the principles of fairness impartiality and openness and fulfill information disclosure obligations

thus protecting the interests of minority shareholders. In order to reduce and regulate related party transactions

and safeguard the legitimate rights and interests of the Listed Company and its public shareholders the

Company makes the following commitment concerning regulating related party transactions between the

Company and the Listed Company:

1. The Company and its subordinate units controlled by the Company will try their best to avoid or reduce

unnecessary related party transactions with the Listed Company and its subsidiaries; Related business

transactions or transactions that are necessary or reasonable will be conducted on the basis of equality and

voluntariness and in accordance with the principles of fairness impartiality and openness and the transaction

prices will be reasonably determined based on market prices. For related party transactions that are difficult to

compare with market prices or subject to pricing limitations the standards of relevant costs and profits should

be clearly defined in contracts and decision-making procedures should be performed in accordance with

relevant laws and regulations normative documents and the Articles of Association of the Listed Company so

as to ensure that the legitimate rights and interests of the Listed Company and other shareholders will not be

damaged through related party transactions and information disclosure obligations should be performed in

accordance with relevant regulations.

2. Any agreement and arrangement made by the Company its controlled subordinate enterprises and the Listed

Company on related affairs and related party transactions shall not prevent them from conducting business

dealings or transactions with any third party for their own benefit under the same competitive conditions in the

market.This Letter of Commitment shall remain valid during the legal and valid existence of the Listed Company and

the period when the Company is the controlling shareholder of the Listed Company. If the Listed Company

suffers losses due to the Company's violation of the commitment under this Letter of Commitment the

Company will bear corresponding compensation liabilities according to laws.If the commitment hereunder is impossible to fulfill or needs to be adjusted due to objective reasons such as

policy adjustment and market changes the Company and the Listed Company will give public explanations toFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.the market in advance to fully disclose the reasons for adjustment or failure to fulfill the commitment and

propose corresponding solution.Commitment 7

Commitment made by: China Potevio Information Industry Co. Ltd.; China Potevio Information Industry

Group Co. Ltd.Contents of commitments

1. The Company or the enterprises controlled by the Company will minimize related party transactions with

Nanjing Putian Telecommunications Co. Ltd. (hereinafter referred to as "Nanjing Putian") and its subsidiaries

and branches.

2. Related party transactions that are necessary or reasonable shall be conducted on the basis of equality and

voluntariness and in accordance with the principles of fairness impartiality and compensation for equal value.The Company or the enterprise controlled by the Company will sign a related party transaction agreement with

Nanjing Putian or its subsidiaries in accordance with the laws and transaction prices will be determined

according to the reasonable prices recognized by the market to ensure the fairness of the related party

transaction prices; In accordance with relevant laws regulations rules other normative documents and the

Articles of Association of Nanjing Putian or its subsidiaries fair procedures such as related party transaction

decision-making and vote avoidance shall be performed and information shall be disclosed in a timely manner

to ensure that the legitimate rights and interests of Nanjing Putian or its subsidiaries and other shareholders of

Nanjing Putian will not be damaged by related party transactions.

3. The Company ensures that the Company will not require or accept Nanjing Putian or its subsidiaries and

branches to give the Company or the enterprises controlled by the Company conditions superior to those for

third parties in any fair market transaction.

4. The Company ensures that it will exercise corresponding rights and assume corresponding obligations in

accordance with the Articles of Association of Nanjing Putian and its subsidiaries will not leverage the identity

of controlling shareholder/actual controller to seek illegitimate interests will not illegally transfer funds and

profits of Nanjing Putian or its subsidiaries through related party transactions and guarantees that it will not

damage the legitimate rights and interests of other shareholders of Nanjing Putian.

5. In case of violation of the above commitment the Company is willing to bear all liabilities arising therefrom

and fully compensate or make up for all direct or indirect losses caused to Nanjing Putian.Commitment 8

Commitment made by: China Potevio Information Industry Co. Ltd.; China Potevio Information Industry

Group Co. Ltd.Contents of commitments

1. During the period when the Company directly or indirectly holds shares of Nanjing Putian

Telecommunications Co. Ltd. (hereinafter referred to as "Nanjing Putian") it guarantees not to leverage its

control over Nanjing Putian to engage in or participate in acts detrimental to the interests of Nanjing Putian and

its minority shareholders.

2. Except the above-mentioned disclosure in the future the Company and enterprises controlled by the

Company will not own manage control invest in or engage in any other business or project directly or

indirectly within or outside the PRC which is the same or similar to those currently carried out or planned for

the future by Nanjing Putian and its subsidiaries and branches nor will they seek to directly or indirectly engage

in any business that competes with the current or planned business of Nanjing Putian and its subsidiaries orFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.branches through joint venture cooperation joint venture with any third party or through any means such as

lease operation contract operation or entrusted management nor will they have an interest in the above

activities. If the Company and the enterprises controlled by the Company discover any new business

opportunity that constitutes or may constitute a direct or indirect competition against Nanjing Putian or its

holding enterprises in their main business they will immediately notify Nanjing Putian in writing and cause the

business opportunity to be first provided to Nanjing Putian or its holding enterprises on reasonable and fair

terms and conditions.

3. If Nanjing Putian or its holding enterprises give up such competitive new business opportunities and the

Company and the enterprises controlled by the Company engage in these competitive businesses Nanjing

Putian or its holding enterprises have the right to acquire any equity assets and other interests in the above

competitive businesses from the above entities for one or more times at any time.

4. When the Company and the enterprises controlled by the Company intend to transfer sell lease license or

otherwise transfer or allow the use of assets and businesses that constitute or may constitute direct or indirect

competition against Nanjing Putian or its holding enterprises in their main business the Company and the

enterprises controlled by the Company will provide Nanjing Putian or its holding enterprises with the right of

first refusal and promise to make every effort to urge the enterprises in which the Company holds an equity

stake to provide the right of first refusal to Nanjing Putian or its holding enterprises under the above

circumstances.

5. If the Company violates the above commitment it shall make comprehensive timely and full compensation

for the losses suffered by Nanjing Putian; All benefits obtained by the Company due to breach of the above

commitments shall belong to Nanjing Putian.

6. The above commitment shall remain valid during the period when the Company is the controlling

shareholder/actual controller of the Listed Company.Commitment 9

Commitment made by: China Potevio Information Industry Co. Ltd.; China Potevio Information Industry

Group Co. Ltd.After the completion of this transaction the Company will strictly abide by the Company Law Securities Law

relevant regulations of China Securities Regulatory Commission Shenzhen Stock Exchange and the Articles of

Association etc. and ensure that Nanjing Putian Telecommunications Co. Ltd. (hereinafter referred to as the

"Listed Company") will continue to be completely separated from the Company and the enterprises controlled

or greatly influenced by the Company in terms of personnel assets finance organizations and business and

maintain the independence of the Listed Company in terms of personnel assets finance organizations and

business. In particular after the completion of this transaction the Company will abide by the Notice on Certain

Issues Concerning the Regulation of Financial Transactions between Listed Companies and Related Parties and

External Guarantees by Listed Companies (Z.J.F (2003) No.56) and the Notice of the China Securities

Regulatory Commission and China Banking Regulatory Commission on the Regulation of External Guarantees

by Listed Companies (Z.J.F [2005] No.120) to regulate external guarantees by the Listed Company and its

subsidiaries and will not illegally occupy funds of the Listed Company and its subsidiaries.The Company guarantees to strictly fulfill the above commitment. If the rights and interests of the Listed

Company are damaged due to the violation of the above commitment by the Company or the enterprises

controlled or greatly influenced by the Company the Company will bear corresponding compensation liabilities

according to laws.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Commitment 10

Commitment made by: Xu Qian; Wang Wenkui; Li Tong; Liu Yun; Wang Jinfeng; Qin Zhen; Tang Fuxin; Xie

Manlin; Du Xiaorong; Jia Haowen; Lei Xu; Liu Xiaodong; Wang Huailin; Li Jing

Contents of commitments

In order to ensure that the Company's measures to fill the diluted immediate return can be effectively

implemented all directors and senior executives of the Company make the following commitment:

(I) I promise not to transfer benefits to other units or individuals without compensation or on unfair terms or to

use other means to harm the interests of the Listed Company;

(II) I promise to restrain my job-related consumption behavior;

(III) I promise not to use the Listed Company's assets for investments and consumption unrelated to my duties;

(IV) I promise to do my best within the scope of my responsibilities and authority to link the remuneration

system established by the Board of Directors or the Remuneration Committee with the implementation of the

Listed Company's compensation measures to cover losses;

(V) If the Listed Company plans to implement equity incentives in the future I promise to do my best within

the scope of my responsibilities and authority to link the exercise conditions of the equity incentives planned by

the Listed Company with the implementation of the compensation measures;

(VI) From the date of this commitment to the completion of this transaction if the CSRC issues any new

regulatory provisions regarding compensation measures to cover losses to cover losses and related

commitments and the above commitments cannot satisfy such provisions of the CSRC I promise to issue a

supplementary commitment in accordance with the latest regulations of the CSRC;

(VII) I promise to diligently fulfill the Listed Company's established compensation measures to cover losses and

any commitments I have made in relation to these measures; if I violate such commitments and cause losses to

the Listed Company or investors I am willing to assume legal compensation responsibility to the Listed

Company or investors.Commitment 11

Commitment made by: China Potevio Information Industry Co. Ltd.; China Potevio Information Industry

Group Co. Ltd.Contents of commitments

1. The Company promises not to interfere in the operation and management activities of Nanjing Putian

Telecommunications Co. Ltd. (hereinafter referred to as "Nanjing Putian") beyond its authority and not

encroach on interests of Nanjing Putian;

2. From the date of issuance of this commitment to the completion of this transaction if the CSRC makes clear

provisions on the compensation measures to cover losses and related commitments and the above commitments

cannot satisfy the provisions of the CSRC the Company promises to issue supplementary commitments

according to the provisions of the CSRC;

The Company promises to strictly fulfill the above commitments and ensure that the compensation measures to

cover losses can be effectively taken. If the Company violates the above commitments and causes losses to

Nanjing Putian or investors the Company is willing to bear the compensation responsibility for Nanjing Putian

or investors and the corresponding punishment of the regulatory authorities according to laws.Commitment 12

Commitment made by: China Potevio Information Industry Co. Ltd.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Commitment: In view of the fact that Nanjing Putian Telecommunications Co. Ltd. (hereinafter referred to as

"Nanjing Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing the Company as the

controlling shareholder of Nanjing Putian hereby makes the following commitment:

I. Ensure personnel independence of Nanjing Putian

(I) The Company ensures that Nanjing Putian's production operation and administration (including labor

personnel and salary management etc.) are completely independent of the Company and the companies and

enterprises under the Company.(II) The Company ensures that Nanjing Putian's general manager deputy general manager chief financial

officer secretary of the Board of Directors and other senior executives work full-time in Nanjing Putian and

receive remuneration from Nanjing Putian and do not concurrently hold other positions other than directors and

supervisors in the Company and the companies and enterprises under the Company and do not receive

remuneration from the Company and the companies or enterprises under the Company; The Company ensures

that the financial personnel of Nanjing Putian do not work part-time in and receive remuneration from the

Company and the companies and enterprises under the Company.(III) The Company ensures that it recommends candidates to serve as directors supervisors and senior

executives of Nanjing Putian through legal procedures and then it will not interfere with the personnel

appointment and dismissal decisions made by the Board of Directors and Shareholders' Meeting of Nanjing

Putian.II. Ensure assets independence and integrity of Nanjing Putian

(I) The Company ensures the assets independence and integrity of Nanjing Putian and its subsidiaries and

ensures that all these assets are under the control of Nanjing Putian and its subsidiaries and are independently

owned and operated by Nanjing Putian and its subsidiaries.(II) The Company ensures that the Company and the companies and enterprises under the Company do not

illegally occupy Nanjing Putian's assets funds and other resources.III. Ensure business independence of Nanjing Putian

(I) The Company ensures that Nanjing Putian has an independent procurement and sales systems; has the assets

personnel and qualifications to independently carry out business activities and has the ability to operate

independently in the market.(II) The Company ensures that the Company and the companies and enterprises under the Company avoid

horizontal competition against Nanjing Putian and its subsidiaries.(III) The Company ensures to conduct strict control of related party transactions and minimize continuing

related party transactions between Nanjing Putian and its subsidiaries and the Company and the companies and

enterprises under the Company. The Company puts an end to the illegal occupation of Nanjing Putian's funds

and assets and will not require Nanjing Putian and its subsidiaries to provide any form of guarantee to the

Company and the companies and enterprises under the Company. For necessary related party transactions the

Company will follow the principle of "fairness impartiality and openness" make transaction prices consistent

with those for non-related enterprises and disclose information in a timely manner.(IV) The Company ensures not to interfere in major decisions of Nanjing Putian by any means other than

exercising shareholders' rights according to laws and not to affect the independence of Nanjing Putian's assets

personnel finance organizations and business.IV. Ensure organizational independence of Nanjing Putian

(I) The Company ensures that Nanjing Putian and its subsidiaries establish and improve their own corporateFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.governance structures according to laws and completely separate from the Company and the companies and

enterprises under the Company; The Company ensures that Nanjing Putian and its subsidiaries are completely

separated from the Company and the companies and enterprises under the Company in terms of offices and

production and business premises without confusion among their organizations.(II) The Company ensures that Nanjing Putian and its subsidiaries operate independently and the Company will

not directly or indirectly interfere in the decision-making and operation of Nanjing Putian without the approval

of the Board of Directors and Shareholders' Meeting of Nanjing Putian.(III) The Company ensures that the Shareholders' Meeting Board of Directors independent directors Board of

Supervisors and senior executives of Nanjing Putian independently exercise their functions and powers in

accordance with laws regulations and the Articles of Association.V. Ensure financial independence of Nanjing Putian

(I) The Company ensures that Nanjing Putian has an independent financial accounting department an

independent financial accounting system standardized and independent financial accounting rules and financial

management rules.(II) The Company ensures that Nanjing Putian remains independent in financial decision-making and that the

Company and the companies and enterprises under the Company do not interfere in the use and dispatch of

funds of Nanjing Putian.(III) The Company ensures that Nanjing Putian maintains its own independent bank accounts and does not share

any bank accounts with the Company and the companies and enterprises under the Company.(IV) Ensure independent tax payment by Nanjing Putian according to laws.The above commitment shall remain valid and irrevocable during the period when the Company is the

controlling shareholder of Nanjing Putian. In case of violation of the above commitment and thus causing

economic losses to Nanjing Putian the Company will compensate Nanjing Putian.Commitment 13

Commitment made by: China Potevio Information Industry Co. Ltd.Contents of commitments

In view of the fact that Nanjing Putian Telecommunications Co. Ltd. (hereinafter referred to as "Nanjing

Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing the Company as the

controlling shareholder of Nanjing Putian hereby makes the following commitment:

I. The Company will not leverage its identity as Nanjing Putian's controlling shareholder to require Nanjing

Putian and its subsidiaries to give rights superior to those for third parties in the market in business cooperation

or engage in any acts that harm the interests of Nanjing Putian and its subsidiaries in transactions.II. The Company will not leverage its identity as Nanjing Putian's controlling shareholder to seek priority rights

to conclude transactions with Nanjing Putian and its subsidiaries.III. When carrying out related party transactions that are really necessary and unavoidable it ensures that they

are carried out in accordance with the principle of marketization and fair prices and will strictly comply with

the relevant laws regulations normative documents and the relevant provisions of the Articles of Association

of the listed company perform the transaction procedures and information disclosure obligations and ensures

that the legitimate rights and interests of Nanjing Putian and other shareholders will not be damaged through

related party transactions.The above commitment shall remain valid and irrevocable during the period when the Company is theFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.controlling shareholder of Nanjing Putian. In case of violation of the above commitment and thus causing

economic losses to Nanjing Putian the Company will compensate Nanjing Putian.Commitment 14

Commitment made by: China Potevio Information Industry Co. Ltd.Commitment: In view of the fact that Nanjing Putian Telecommunications Co. Ltd. (hereinafter referred to as

"Nanjing Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing the Company as the

controlling shareholder of Nanjing Putian hereby makes the following commitment:

I. The Company and the related enterprises controlled by the Company have not engaged in any production and

operation business or activities that directly or indirectly compete against Nanjing Putian and promise not to

engage in any production and operation business or activities that directly or indirectly compete against Nanjing

Putian in the future.II. The Company does not own manage control invest or engage in any other businesses or projects that are

the same as or similar to the those of Nanjing Putian.III. If the Company or its any related enterprise obtains any business opportunity from any third party that

constitutes substantial competition or may constitute substantial competition against Nanjing Putian in its

business the Company will immediately notify Nanjing Putian and transfer the business opportunity to Nanjing

Putian after obtaining approval from the third party.IV. The Company will supervise and restrain the production and operation activities of itself and its related

enterprises. If the products or businesses of the Company and its related enterprises are the same as or similar to

those of Nanjing Putian in the future the Company promises to take the following measures to solve the

problem:

(I) When Nanjing Putian deems it necessary the Company and its related enterprises will reduce their holdings

until all the relevant assets and businesses held by the Company and its related enterprises are transferred;

(II) Nanjing Putian may when it deems it necessary give priority to the acquisition of relevant assets and

businesses held by the Company and its related enterprises through appropriate means;

(III) If the Company and its related enterprises have conflicts of interest with Nanjing Putian due to horizontal

competition the interests of Nanjing Putian shall be given priority;

(IV) The Company will take other measures conducive to avoiding horizontal competition.The above commitment shall remain valid and irrevocable during the period when the Company is the

controlling shareholder of Nanjing Putian. In case of violation of the above commitment and thus causing

economic losses to Nanjing Putian the Company will compensate Nanjing Putian.Commitment 15

Commitment made by: China Potevio Information Industry Group Corporation

Commitment: In view of the fact that Nanjing Putian Telecommunications Co. Ltd. (hereinafter referred to as

"Nanjing Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing the Company as the

actual controller of Nanjing Putian hereby makes the following commitment:

I. Ensure personnel independence of Nanjing Putian

(I) The Company ensures that Nanjing Putian's production operation and administration (including labor

personnel and salary management etc.) are completely independent of the Company and the companies and

enterprises under the Company.(II) The Company ensures that Nanjing Putian's general manager deputy general manager chief financialFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.officer secretary of the Board of Directors and other senior executives work full-time in Nanjing Putian and

receive remuneration from Nanjing Putian and do not concurrently hold other positions other than directors and

supervisors in the Company and the companies and enterprises under the Company and do not receive

remuneration from the Company and the companies or enterprises under the Company; The Company ensures

that the financial personnel of Nanjing Putian do not work part-time in and receive remuneration from the

Company and the companies and enterprises under the Company.(III) The Company ensures that it recommends candidates to serve as directors supervisors and senior

executives of Nanjing Putian through legal procedures and then it will not interfere with the personnel

appointment and dismissal decisions made by the Board of Directors and Shareholders' Meeting of Nanjing

Putian.II. Ensure assets independence and integrity of Nanjing Putian

(I) The Company ensures the assets independence and integrity of Nanjing Putian and its subsidiaries and

ensures that all these assets are under the control of Nanjing Putian and its subsidiaries and are independently

owned and operated by Nanjing Putian and its subsidiaries.(II) The Company ensures that the Company and the companies and enterprises under the Company do not

illegally occupy Nanjing Putian's assets funds and other resources.III. Ensure business independence of Nanjing Putian

(I) The Company ensures that Nanjing Putian has an independent procurement and sales systems; has the assets

personnel and qualifications to independently carry out business activities and has the ability to operate

independently in the market.(II) The Company ensures that the Company and the companies and enterprises under the Company avoid

horizontal competition against Nanjing Putian and its subsidiaries.(III) The Company ensures to conduct strict control of related party transactions and minimize continuing

related party transactions between Nanjing Putian and its subsidiaries and the Company and the companies and

enterprises under the Company. The Company puts an end to the illegal occupation of Nanjing Putian's funds

and assets and will not require Nanjing Putian and its subsidiaries to provide any form of guarantee to the

Company and the companies and enterprises under the Company. For necessary related party transactions the

Company will follow the principle of "fairness impartiality and openness" make transaction prices consistent

with those for non-related enterprises and disclose information in a timely manner.(IV) The Company ensures not to interfere in major decisions of Nanjing Putian by any means other than

exercising shareholders' rights according to laws and not to affect the independence of Nanjing Putian's assets

personnel finance organizations and business.IV. Ensure organizational independence of Nanjing Putian

(I) The Company ensures that Nanjing Putian and its subsidiaries establish and improve their own corporate

governance structures according to laws and completely separate from the Company and the companies and

enterprises under the Company; The Company ensures that Nanjing Putian and its subsidiaries are completely

separated from the Company and the companies and enterprises under the Company in terms of offices and

production and business premises without confusion among their organizations.(II) The Company ensures that Nanjing Putian and its subsidiaries operate independently and the Company will

not directly or indirectly interfere in the decision-making and operation of Nanjing Putian without the approval

of the Board of Directors and Shareholders' Meeting of Nanjing Putian.(III) The Company ensures that the Shareholders' Meeting Board of Directors independent directors Board ofFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Supervisors and senior executives of Nanjing Putian independently exercise their functions and powers in

accordance with laws regulations and the Articles of Association.V. Ensure financial independence of Nanjing Putian

(I) The Company ensures that Nanjing Putian has an independent financial accounting department an

independent financial accounting system standardized and independent financial accounting rules and financial

management rules.(II) The Company ensures that Nanjing Putian remains independent in financial decision-making and that the

Company and the companies and enterprises under the Company do not interfere in the use and dispatch of

funds of Nanjing Putian.(III) The Company ensures that Nanjing Putian maintains its own independent bank accounts and does not share

any bank accounts with the Company and the companies and enterprises under the Company.(IV) Ensure independent tax payment by Nanjing Putian according to laws.The above commitment shall remain valid and irrevocable during the period when the Company is the actual

controller of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to

Nanjing Putian the Company will compensate Nanjing Putian.Commitment 16

Commitment made by: China Potevio Information Industry Group Corporation

Contents of commitments

In view of the fact that Nanjing Putian Telecommunications Co. Ltd. (hereinafter referred to as "Nanjing

Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing the Company as the actual

controller of Nanjing Putian hereby makes the following commitment:

1. The Company will not leverage its identity as Nanjing Putian's actual controller to require Nanjing Putian and

its subsidiaries to give rights superior to those for third parties in the market in business cooperation or engage

in any acts that harm the interests of Nanjing Putian and its subsidiaries in transactions.

2. The Company will not leverage its identity as Nanjing Putian's actual controller to seek priority rights to

conclude transactions with Nanjing Putian and its subsidiaries.

3. When carrying out related party transactions that are really necessary and unavoidable it ensures that they

are carried out in accordance with the principle of marketization and fair prices and will strictly comply with

the relevant laws regulations normative documents and the relevant provisions of the Articles of Association

of the listed company perform the transaction procedures and information disclosure obligations and ensures

that the legitimate rights and interests of Nanjing Putian and other shareholders will not be damaged through

related party transactions.The above commitment shall remain valid and irrevocable during the period when the Company is the actual

controller of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to

Nanjing Putian the Company will compensate Nanjing Putian.Commitment 17

Commitment made by: China Potevio Information Industry Group Corporation

Commitment: In view of the fact that Nanjing Putian Telecommunications Co. Ltd. (hereinafter referred to as

"Nanjing Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing the Company as the

actual controller of Nanjing Putian hereby makes the following commitment:

1. The Company and the related enterprises controlled by the Company have not engaged in any production andFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

operation business or activities that directly or indirectly compete against Nanjing Putian and promise not to

engage in any production and operation business or activities that directly or indirectly compete against Nanjing

Putian in the future.

2. The Company does not own manage control invest or engage in any other businesses or projects that are the

same as or similar to the those of Nanjing Putian.

3. If the Company or its any related enterprise obtains any business opportunity from any third party that

constitutes substantial competition or may constitute substantial competition against Nanjing Putian in its

business the Company will immediately notify Nanjing Putian and transfer the business opportunity to Nanjing

Putian after obtaining approval from the third party.

4. The Company will supervise and restrain the production and operation activities of itself and its related

enterprises. If the products or businesses of the Company and its related enterprises are the same as or similar to

those of Nanjing Putian in the future the Company promises to take the following measures to solve the

problem:

(1) When Nanjing Putian deems it necessary the Company and its related enterprises will reduce their holdings

until all the relevant assets and businesses held by the Company and its related enterprises are transferred;

(2) Nanjing Putian may when it deems it necessary give priority to the acquisition of relevant assets and

businesses held by the Company and its related enterprises through appropriate means;

(3) If the Company and its related enterprises have conflicts of interest with Nanjing Putian due to horizontal

competition the interests of Nanjing Putian shall be given priority;

(4) The Company will take other measures conducive to avoiding horizontal competition.

The above commitment shall remain valid and irrevocable during the period when the Company is the actual

controller of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to

Nanjing Putian the Company will compensate Nanjing Putian.Commitment 18

Commitment made by: China Potevio Information Industry Group Corporation

Commitment: The Group makes the following statements and commitments regarding the operation and future

development plan of Nanjing Putian’s private network communications business and the business of the Group

and the enterprises controlled by the Group (except Nanjing Putian and its controlled enterprises):

In order to optimize the internal resource allocation of the Group and give full play to Nanjing Putian's business

capabilities from 2016 the Group has entrusted Nanjing Putian to produce the private network communications

products that were originally purchased by China Potevio Information Industry Co. Ltd. (hereinafter referred toas “Potevio Co. Ltd.") a wholly-owned subsidiary of the Group. The Group's private network communicationsbusiness was originally a trade-oriented business where products were purchased and sold by Potevio Co. Ltd.from external suppliers. From 2016 the business has been successfully transformed into an independent

processing and production business. The current business model is as follows: Potevio Co. Ltd. will sign

entrusted production contracts with Nanjing Putian and its subsidiary Southern Telecom after obtaining orders

from customers and Nanjing Putian will be responsible for production. At present the customer of Potevio Co.Ltd. is Fortune Industrial Corp. and the total annual order amount of existing model products remains above

500 million yuan. It is expected to have a stable demand period of 3 to 5 years.

The Group undertakes to take Nanjing Putian as the operating entity of private network communications

business including but not limited to:

1. Nanjing Putian is the military-civilian integration industrial base of the Group and is the only producer of theFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

existing multi-network cloud-based data processing communication devices and related military-civilian

integration projects (that is the private network communications business referred to in this commitment) and

it is exclusive;

2. The Group undertakes to gradually integrate the complete business processes and related resources of the

private network communications business including sales into Nanjing Putian within 3 years; If the relevant

business resources cannot be integrated into Nanjing Putian due to external reasons such as special requirements

of downstream customers on the subject qualifications of direct partners (for example non-foreign-funded

enterprises) the Group will cooperate with Nanjing Putian to carry out relevant business under the condition of

meeting the requirements of relevant laws and regulations that is undertake relevant business in the name of

the Group or its subordinate enterprises and Nanjing Putian will be responsible for actual operation.The above commitment shall take effect from the date of signing this commitment and shall remain valid and

irrevocable during the existence of Nanjing Putian and the period when the Group is recognized as a related

party that is not allowed to engage in business same as or similar to Nanjing Putian’s private network

communications business in accordance with relevant regulations. If the above commitment is proved to be

untrue or not fulfilled all benefits obtained by the Group due to breach of the commitment shall be owned by

Nanjing Putian and the Group shall compensate for all direct and indirect losses suffered by Nanjing Putian and

bear corresponding legal liabilities.

3. If there is a profit forecast for the Company's assets or projects and the reporting period is still in the

profit forecast period the Company shall explain whether the assets or projects have achieved the

original profit forecast and the reasons therefor.□Applicable□Not applicable

II. Non-operating occupation of funds by controlling shareholders and other related parties

of the Listed Company

□Applicable□Not applicable

During the reporting period there was no non-operating occupation of funds by controlling shareholders and other related parties

of the Listed Company.III. Illegal external guarantees

□Applicable□Not applicable

During the reporting period the Company had no illegal external guarantees.IV. Explanation of the Board of Directors on the relevant information of the latest Non-

standard Audit Report

□Applicable□Not applicableFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.V. Explanations of the Board of Directors the Board of Supervisors and independent

directors (if any) on the Non-standard Audit Report for the reporting period issued by the

accounting firm

□Applicable□Not applicable

VI. Explanation of changes in accounting policies accounting estimates compared with the

financial report of the previous year or correction of material accounting errors

□Applicable□Not applicable

During the reporting period there was no change in accounting policies accounting estimates or correction of major accounting

errors.VII. Explanation of changes in the scope of consolidated statements compared with the

financial report of the previous year

□Applicable □Not applicable

The subsidiary Chongqing Puhua Information Technology Co. Ltd. has been liquidated. For the reporting

period its profits and losses and cash flow from January to September during the liquidation period were

included in the consolidated statements.The subsidiary Nanjing Putian Network Co. Ltd. has been liquidated. For the reporting period its profits and

losses and cash flow from January to November during the liquidation period were included in the consolidated

statements.Its subsidiary Seventh Branch of Nanjing Communication Equipment Factory has been liquidated. For the

reporting period its profits and losses and cash flow from January to December during the liquidation period

were included in the consolidated statements.VIII. Appointment and dismissal of accounting firm

Accounting firm currently engaged

WUYIGE Certified Public Accountants LLP (Special General

Name of domestic accounting firm

Partnership)

Remuneration of domestic accounting firm (in 10000 yuan) 80

Continuous years of audit service of the domestic accounting

firm

Name of CPAs of the domestic accounting firm Xu Zongliang Guo Zhigang

Continuous years of audit service of CPAs of the domestic

1 years 2 years

accounting firm

Whether to change the accounting firm in the current periodFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.□Yes□No

Engagement of internal control audit accounting firm financial consultants or sponsors

□Applicable □Not applicable

The Company engaged WUYIGE Certified Public Accountants LLP (Special General Partnership) as the

internal control audit institution in 2023 and the internal control audit fee was 200000 yuan.IX. Delisting after the disclosure of the annual report

□Applicable□Not applicable

X. Matters related to bankruptcy reorganization

□Applicable□Not applicable

No bankruptcy reorganization related matters occurred during the reporting period.XI. Major litigation and arbitration matters

□Applicable □Not applicable

Ser Basic Whether an The result Enforcement

Amount Progress of

ial situation of estimated and influence of litigation Date of Disclosure

involved (in litigation

num litigation liability is of litigation (arbitration) disclosure index

10000 yuan) (arbitration)

ber (arbitration) formed (Arbitration) judgments

Nanjing

Sierte

Technology It has no

Co. Ltd. v. significant Announceme

Nanjing impact on the nt on

Putian The verdict profit of the Accumulated

Execution

1 Telecommun 47.65 No has come Company in April 7 2023 Litigation

completed

ications Co. into effect the current (Announcem

Ltd.: Case of period or ent No.:

Dispute over after the 2023-010)

Project period

Construction

Contract

Nanjing

Southern

Telecom Co.Ltd. v.Nanjing

2 Leqiu 14.67 No Under trial Pending - April 7 2023 Ibid

Trading Co.Ltd.: Case of

Disputes

over Sales

Contract

Nanjing It has no

Nanman significant

Case

3 Electrical 8.59 No impact on the - April 7 2023 Ibid

withdrawn

Co. Ltd. v. profit of the

COOEC- Company inFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Fluor Heavy the current

Industries period or

Co. Ltd.: after the

Case of period

Disputes

over Sales

Contract

Nanjing

Sierte

Technology It has no

Co. Ltd. v. significant

Nanjing impact on the

Putian The verdict profit of the

Execution

4 Telecommun 31.89 No has come Company in April 7 2023 Ibid

completed

ications Co. into effect the current

Ltd.: Case of period or

Dispute over after the

Project period

Construction

Contract

Nanjing

Sierte

Technology It has no

Co. Ltd. v. significant

Nanjing impact on the

Putian Court- profit of the

Execution

5 Telecommun 7.87 No ordered Company in April 7 2023 Ibid

completed

ications Co. mediation the current

Ltd.: Case of period or

Dispute over after the

Project period

Construction

Contract

Danyang

Jinyang

Hengguang

Communicati It has no

on significant

Equipment impact on the

Co. Ltd. v. Court- profit of the

Execution

6 Nanjing 5.12 No ordered Company in April 7 2023 Ibidcompleted

Putian mediation the current

Telecommun period or

ications Co. after the

Ltd.: Case of period

Disputes

over Sales

Contract

Nanjing It has no

Bowden significant

Intelligent impact on the

Technology profit of the

Case

7 Co. Ltd. v. 13.07 No Company in - April 7 2023 Ibidwithdrawn

Nanjing the current

Putian period or

Telecommun after the

ications Co. periodFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Ltd.: Case of

Disputes

over Sales

Contract

Nanjing

Putian

Telecommun

ications Co.Ltd. v. Morin

Dawa Branch

It has no

of China

significant

Broadnet

impact on the

Inner

profit of the

Mongolia Case

8 8.19 No Company in - April 7 2023 Ibid

Network Co. withdrawn

the current

Ltd. China

period or

Broadnet

after the

Inner

period

Mongolia

Network Co.Ltd.: Case of

Disputes

over Sales

Contract

Nanjing

Putian

Telecommun

ications Co.Ltd. v. Alxa

Branch of

It has no

China

significant

Broadnet

impact on the

Inner

profit of the

Mongolia Case

9 9.22 No Company in - April 7 2023 Ibid

Network Co. withdrawn

the current

Ltd. China

period or

Broadnet

after the

Inner

period

Mongolia

Network Co.Ltd.: Case of

Disputes

over Sales

Contract

Nanjing

Putian

Telecommun It has no

ications Co. significant

Ltd. v. impact on the

Beijing Luck Court- profit of the

Execution

10 Building 11.72 No ordered Company in April 7 2023 Ibidcompleted

Decoration mediation the current

Engineering period or

Co. Ltd.: after the

Case of period

Disputes

over SalesFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Contract

Jiangning

Xindong

Printing

Announceme

Factory v.nt on

Nanjing

Accumulated

Putian

11 6.2 No Under trial Pending - June 8 2023 Litigation

Telecommun

(Announcem

ications Co.ent No.:

Ltd.: Case of

2023-026)

Disputes

over Sales

Contract

Nanjing

Sierte

Technology

Co. Ltd. v.Nanjing

Putian

12 57.92 No Under trial Pending - June 8 2023 Ibid

Telecommun

ications Co.Ltd.: Case of

Disputes

over Sales

Contract

Nanjing

Southern

Telecom Co. It has no

Ltd. v. significant

SENYINT impact on the

Digital The verdict profit of the

13 Medical 9.9 No has come Company in In execution June 8 2023 Ibid

System into effect the current

(Dalian) Co. period or

Ltd.: Case of after the

Disputes period

over Sales

Contract

Nanjing

Nanman

It has no

Electrical

significant

Co. Ltd. v.impact on the

Qingdao

Court- profit of the

Yingxuan Execution

14 24.51 No ordered Company in June 8 2023 IbidTechnology completed

mediation the current

Co. Ltd.:

period or

Case of

after the

Disputes

period

over Sales

Contract

Nanjing

Putian

Telecommun

15 ications 364.77 No Under trial Pending - June 8 2023 Ibid

Technology

Co. Ltd. v.NanjingFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Putian

Information

Technology

Co. Ltd. and

Nanjing

Putian

Telecommun

ications Co.Ltd.: Case of

Disputes

over the

Recovery of

Unpaid

Capital

Contribution

s

Nanjing

Putian

Datang

Information It has no

Electronics significant

Co. Ltd. v. impact on the

In the

Yangzhou profit of the

Judgment

16 Dingxu New 7.35 No Company in - June 8 2023 Ibid

Announceme

Energy the current

nt

Technology period or

Co. Ltd.: after the

Case of period

Disputes

over Sales

Contract

Nanjing

Keyuesi

System It has no

Integration significant

Co. Ltd. v. impact on the

Nanjing Court- profit of the

Execution

17 Putian 80.43 No ordered Company in June 8 2023 Ibid

completed

Telecommun mediation the current

ications Co. period or

Ltd.: Case of after the

Disputes period

over Sales

Contract

Cixi Dongdi

Electric

It has no

Appliance

significant

Factory v.impact on the

Nanjing

profit of the

Putian Case

18 16.25 No Company in - June 8 2023 IbidTelecommun withdrawn

the current

ications Co.period or

Ltd.: Case of

after the

Disputes

period

over Sales

Contract

19 Dewei 57.68 No Under trial Pending - June 8 2023 IbidFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

Communicati

on

Equipment

(Jiangsu)

Co. Ltd. v.Nanjing

Putian

Telecommun

ications Co.Ltd.: Case of

Disputes

over Sales

Contract

Zhu Zhiyang

v. Nanjing

Putian

Telecommun

ications

Technology It has no

Co. Ltd. and significant

Nanjing impact on the

Putian The verdict profit of the

Execution

20 Telecommun 0 No has come Company in June 8 2023 Ibid

completed

ications Co. into effect the current

Ltd. (the period or

third party): after the

Case of period

Dispute over

Requesting

Change of

Company

Registration

It has no

Shen Lei v.significant

Nanjing

impact on the

Putian

The verdict profit of the

Telecommun Execution

21 2.5 No has come Company in June 8 2023 Ibid

ications Co. completed

into effect the current

Ltd.: Case of

period or

Labor

after the

Dispute

period

Nanjing

Qinhuai

Maoye

It has no

Department

significant

Store v.impact on the

Nanjing

The verdict profit of the

Putian Execution

22 2 No has come Company in June 8 2023 IbidTelecommun completed

into effect the current

ications Co.period or

Ltd.: Case of

after the

Dispute over

period

Housing

Lease

Contract

Anhui Hairi Court- It has no

23 400.44 No In execution June 8 2023 IbidElectronic ordered significantFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

Co. Ltd. v. mediation impact on the

Nanjing profit of the

Putian Company in

Telecommun the current

ications Co. period or

Ltd.: Case of after the

Disputes period

over Sales

Contract

Nanjing

Huaheng

Electric

It has no

Control

significant Announceme

Equipment

impact on the nt on

Co. Ltd. v.Court- profit of the Accumulated

Nanjing Execution

24 225.88 No ordered Company in July 27 2023 Litigation

Putian completed

mediation the current (Announcem

Telecommun

period or ent No.:

ications Co.after the 2023-028)

Ltd.: Case of

period

Disputes

over Sales

Contract

Yangzhou

Sancheng

Machinery It has no

Manufacturin significant

g Co. Ltd. v. impact on the

Nanjing Court- profit of the

25 Putian 15.82 No ordered Company in In execution July 27 2023 Ibid

Telecommun mediation the current

ications Co. period or

Ltd.: Case of after the

Disputes period

over Sales

Contract

Wu Zhifu v.Nanjing

Putian

Telecommun

26 21.34 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

Wang Xi v.Nanjing

Putian

Telecommun

27 19.29 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

Xia

Haicheng v.

28 Nanjing 22.38 No Under trial Pending - July 27 2023 Ibid

Putian

TelecommunFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.ications Co.Ltd.: Case of

Labor

Dispute

Pei Tingrong

v. Nanjing

Putian

Telecommun

29 8.8 No Under trial Pending - July 27 2023 Ibid

ications Co.Ltd.: Case of

Labor

Dispute

Li Yan v.Nanjing

Putian

Telecommun

30 20.12 No Under trial Pending - July 27 2023 Ibid

ications Co.Ltd.: Case of

Labor

Dispute

Ruan Rui v.Nanjing

Putian

Telecommun

31 5.04 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

Ren Minfu v.Nanjing

Putian

Telecommun

32 9.21 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

It has no

Gao Wen v.significant

Nanjing

impact on the

Putian

The verdict profit of the

Telecommun Execution

33 59.18 No has come Company in July 27 2023 Ibidications Co. completed

into effect the current

Ltd.: Case of

period or

Labor

after the

Dispute

period

Shen Lei v.Nanjing

Putian

Telecommun

34 19.57 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

Lv Ming v.Nanjing

35 132.18 No Under trial Pending - July 27 2023 IbidPutian

TelecommunFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.ications Co.Ltd.: Case of

Labor

Dispute

Zhao Jing v.Nanjing

Putian

Telecommun

36 12.83 No Under trial Pending - July 27 2023 Ibid

ications Co.Ltd.: Case of

Labor

Dispute

Zhu Jinming

v. Nanjing

Putian

Telecommun

37 21.2 No Under trial Pending - July 27 2023 Ibid

ications Co.Ltd.: Case of

Labor

Dispute

Che Leiting

v. Nanjing

Putian

Telecommun

38 14.71 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

Wei Jun v.Nanjing

Putian

Telecommun

39 9.86 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

Sun Yuanwei

v. Nanjing

Putian

Telecommun

40 16.13 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

Xue Haining

v. Nanjing

Putian

Telecommun

41 15.31 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

Yu Yang v.Nanjing

42 Putian 7.38 No Under trial Pending - July 27 2023 Ibid

Telecommun

ications Co.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Ltd.: Case of

Labor

Dispute

Zhou

Faxiang v.Nanjing

Putian

43 Telecommun 8.97 No Under trial Pending - July 27 2023 Ibid

ications Co.Ltd.: Case of

Labor

Dispute

Bao

Gencheng v.Nanjing

Putian

44 Telecommun 18.41 No Under trial Pending - July 27 2023 Ibid

ications Co.Ltd.: Case of

Labor

Dispute

Zhu Houping

v. Nanjing

Putian

Telecommun

45 10.81 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

Li Jia v.Nanjing

Putian

Telecommun

46 7.07 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

Ge Suqing v.Nanjing

Putian

Telecommun

47 17.54 No Under trial Pending - July 27 2023 Ibidications Co.

Ltd.: Case of

Labor

Dispute

Fan

Ningsheng v.Nanjing

Putian

48 Telecommun 16.98 No Under trial Pending - July 27 2023 Ibid

ications Co.Ltd.: Case of

Labor

Dispute

Nanjing The verdict It has no

Execution

49 Putian 13.83 No has come significant July 27 2023 Ibidcompleted

Telege into effect impact on theFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Intelligent profit of the

Building Ltd. Company in

v. The the current

Second period or

Construction after the

Limited period

Company of

China

Construction

Eighth

Engineering

Division

Corp. Ltd.:

Case of

Disputes

over Sales

Contract

Nanjing

Putian

Telege

Intelligent

Building Ltd.v. The

It has no

Second

significant

Construction

impact on the

Limited

The verdict profit of the

Company of Execution

50 51.83 No has come Company in July 27 2023 Ibid

China completed

into effect the current

Construction

period or

Eighth

after the

Engineering

period

Division

Corp. Ltd.:

Case of

Disputes

over Sales

Contract

Hebei

Wonder

Cabinets It has no

Manufacturin significant

g Co. Ltd. v. impact on the

Nanjing Court- profit of the

51 Putian 163.86 No ordered Company in In execution July 27 2023 Ibid

Telecommun mediation the current

ications Co. period or

Ltd.: Case of after the

Disputes period

over Sales

Contract

Hebei It has no

Donghe significant

Communicati The verdict impact on the

52 on 216.25 No has come profit of the In execution July 25 2023 Ibid

Equipment into effect Company in

Co. Ltd. v. the current

Nanjing period orFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Putian after the

Telecommun period

ications Co.Ltd.: Case of

Disputes

over Sales

Contract

Other

litigation that

did not meet

the

53 disclosure 862.06 No - - - -

criteria

during the

reporting

period

XII. Punishment and rectification

□Applicable□Not applicable

During the reporting period the Company was not subject to any punishment or rectification.XIII. Credit status of the Company its controlling shareholders and actual controllers

□Applicable□Not applicable

XIV. Major related party transactions

1. Related party transactions related to daily operations

□Applicable □Not applicable

Amou

Pricin nt of Propo Appro Settle Avail

Whet

Type Conte g Price relate rtion ved ment able

her it

of nt of princi of d to the transa metho marke

excee Date

Relate relate relate ple of relate party amou ction d of t price Disclo

Relati ded of

d d d relate d transa nt of quota relate of sure

on the disclo

party party party d party ction simila (in d simila index

appro sure

transa transa party transa (in r 1000 party r

ved

ction ction transa ction 1000 transa 0 transa transa

quota

ction 0 ctions yuan) ction ctions

yuan)

CIE Anno

(Nanji Contr Purch unce

ng) olled asing ment

Telec

Electr by the goods on

ommu

onic same and Bank April Expec

nicati Marke 183.3 183.3 183.3

Infor ultima receiv 0.30% 6000 No transf 7 ted

ons t price 1 1 1

matio te ing er 2023 Routi

produ

n contro labor ne

cts

Devel lling servic Relate

opme party es d

nt PartyFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Co. Trans

Ltd. action

Nanji s in

Contr Purch

ng 2023

olled asing

Hikvi Telec releas

by the goods

sion ommu ed on

same and Bank April

Digita nicati Marke CNIN

ultima receiv 8.42 8.42 0.01% No transf 8.42 7

l ons t price FO

te ing er 2023

Techn produ

contro labor

ology cts

lling servic

Co.party es

Ltd.Hangz

Contr Purch

hou

olled asing

Hikvi Telec

by the goods

sion ommu

same and Bank April

Techn nicati Marke

ultima receiv 6.19 6.19 0.01% No transf 6.19 7

ology ons t price

te ing er 2023

Co. produ

contro labor

Ltd. cts

lling servic

(CET

party es

C)

Nanji

ng

Contr Purch

Potevi

olled asing

o Telec

by the goods

Hony ommu

same and Bank April

ar nicati Marke

ultima receiv 32.05 32.05 0.05% No transf 32.05 7

Electr ons t price

te ing er 2023

ical produ

contro labor

Techn cts

lling servic

ology

party es

Co.Ltd.Nanji

Contr Sellin

ng

olled g

LES Telec

by the goods

Infor ommu

same and Bank April

matio nicati Marke 1125. 1125. 1125.ultima provid 1.37% No transf 7

n ons t price 07 07 07

te ing er 2023

Techn produ

contro labor

ology cts

lling servic

Co.party es

Ltd.Contr Sellin

1000

The olled g Ibid

Telec 0

14th by the goods

ommu

Resea same and Bank April

nicati Marke 957.1 957.1 957.1

rch ultima provid 1.17% No transf 7

ons t price 8 8 8

Institu te ing er 2023

produ

te of contro labor

cts

CETC lling servic

party es

The Contr Sellin Telec

Bank April

28th olled g ommu Marke 498.4 498.4 498.4

0.61% No transf 7

Resea by the goods nicati t price 3 3 3

er 2023

rch same and onsFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Institu ultima provid produ

te of te ing cts

China contro labor

Electr lling servic

onics party es

Techn

ology

Group

Corpo

ration

Nanji

Contr Sellin

ng

olled g

Glaru Telec

by the goods

n ommu

same and Bank April

Defen nicati Marke 371.7 371.7 371.7

ultima provid 0.45% No transf 7

se ons t price 4 4 4

te ing er 2023

Syste produ

contro labor

m cts

lling servic

Co.party es

Ltd.Contr Sellin

Nanji

olled g

ng Telec

by the goods

Glawa ommu

same and Bank April

y nicati Marke 330.1 330.1 330.1

ultima provid 0.40% No transf 7

Softw ons t price 9 9 9

te ing er 2023

are produ

contro labor

Co. cts

lling servic

Ltd.party es

Nanji

ng Contr Sellin

Rail olled g

Telec

Transi by the goods

ommu

t same and Bank April

nicati Marke 175.6 175.6 175.6

Syste ultima provid 0.21% No transf 7

ons t price 3 3 3

m te ing er 2023

produ

Engin contro labor

cts

eering lling servic

Co. party es

Ltd.Tianb

o Contr Sellin

Electr olled g

Telec

onic by the goods

ommu

Infor same and Bank April

nicati Marke 169.3 169.3 169.3

matio ultima provid 0.21% No transf 7

ons t price 5 5 5

n te ing er 2023

produ

Techn contro labor

cts

ology lling servic

Co. party es

Ltd.Contr Sellin

Nanji

olled g

ng Labor Bank April

by the goods Marke 107.5 107.5 107.5

Lopu servic 0.13% No transf 7

same and t price 0 0 0

Co. e cost er 2023

ultima provid

Ltd.te ingFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.contro labor

lling servic

party es

CETC Contr Sellin

Potevi olled g

Telec

o by the goods

ommu

Scien same and Bank April

nicati Marke 124.2 124.2 124.2

ce & ultima provid 0.15% No transf 7

ons t price 7 7 7

Techn te ing er 2023

produ

ology contro labor

cts

Co. lling servic

Ltd. party es

Hebei

Far-

Contr Sellin

east

olled g

Com Telec

by the goods

munic ommu

same and Bank April

ation nicati Marke 123.4 123.4 123.4

ultima provid 0.15% No transf 7

Syste ons t price 4 4 4

te ing er 2023

m produ

contro labor

Engin cts

lling servic

eering

party es

Co.Ltd.CETC

Taili

Contr Sellin

Telec

olled g

ommu Telec

by the goods

nicati ommu

same and Bank April

ons nicati Marke

ultima provid 39.68 39.68 0.05% No transf 39.68 7

Techn ons t price

te ing er 2023

ology produ

contro labor

Co. cts

lling servic

Ltd.party es

(CET

C)

Contr Sellin

Taiji olled g

Telec

Comp by the goods

ommu

uter same and Bank April

nicati Marke

Corpo ultima provid 29.25 29.25 0.04% No transf 29.25 7

ons t price

ration te ing er 2023

produ

Limit contro labor

cts

ed lling servic

party es

Putian

Contr Sellin

Rail

olled g

Transi Telec

by the goods

t ommu

same and Bank April

Techn nicati Marke

ultima provid 27.04 27.04 0.03% No transf 27.04 7

ology ons t price

te ing er 2023

(Shan produ

contro labor

ghai) cts

lling servic

Co.party es

Ltd.The Contr Sellin Telec Marke Bank April

25.23 25.23 0.03% No 25.23

7th olled g ommu t price transf 7Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.

Resea by the goods nicati er 2023

rch same and ons

Institu ultima provid produ

te of te ing cts

CETC contro labor

lling servic

party es

Contr Sellin

Nanji olled g

Telec

ng by the goods

ommu

Lopu same and Bank April

nicati Marke

Techn ultima provid 17.59 17.59 0.02% No transf 17.59 7

ons t price

ology te ing er 2023

produ

Co. contro labor

cts

Ltd. lling servic

party es

Contr Sellin

olled g

Telec

by the goods

Magni ommu

same and Bank April

chip nicati Marke

ultima provid 17.35 17.35 0.02% No transf 17.35 7

Co. ons t price

te ing er 2023

Ltd. produ

contro labor

cts

lling servic

party es

Contr Sellin

olled g

CETC Telec

by the goods

Eastc ommu

same and Bank April

om nicati Marke

ultima provid 8.10 8.1 0.01% No transf 8.10 7

Group ons t price

te ing er 2023

Co. produ

contro labor

Ltd. cts

lling servic

party es

Easter

Contr Sellin

n

olled g

Com Telec

by the goods

munic ommu

same and Bank April

ations nicati Marke

ultima provid 7.46 7.46 0.01% No transf 7.46 7

Co. ons t price

te ing er 2023

Ltd. produ

contro labor

(Head cts

lling servic

quarte

party es

r)

Liyan

g

Syste Contr Sellin

m olled g

Telec

Equip by the goods

ommu

ment same and Bank April

nicati Marke

Co. ultima provid 6.86 6.86 0.01% No transf 6.86 7

ons t price

Ltd. te ing er 2023

produ

of the contro labor

cts

28th lling servic

Resea party es

rch

InstituFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.te

Zhong

kexin Contr Sellin

Integr olled g

ated by the goods

Circui same and Bank April

Marke

t Co. ultima provid OEM 1.34 1.34 0.00% No transf 1.34 7

t price

Ltd. te ing er 2023

Nanji contro labor

ng lling servic

Branc party es

h

CIE

(Nanji

ng) Contr Sellin

Electr olled g

Telec

onic by the goods

ommu

Infor same and Bank April

nicati Marke

matio ultima provid 1.06 1.06 0.00% No transf 1.06 7

ons t price

n te ing er 2023

produ

Devel contro labor

cts

opme lling servic

nt party es

Co.Ltd.Contr

Rent

Potevi olled

and

o Hi- by the

Renti proper

tech same Bank April

ng ty Marke 100.0

Indust ultima 64.09 64.09 100 No transf 64.09 7 Ibid

proper mana t price 0%

ry te er 2023

ty geme

Co. contro

nt

Ltd. lling

fees

party

Contr

olled

Nanji by the

Leasi

ng same Bank April

ng Marke

Lopu ultima Rent 39.52 39.52 4.70% No transf 39.52 7

proper t price

Co. te er 2023

ty

Ltd. contro

lling

party

300 Ibid

Contr

The olled

14th by the

Leasi

Resea same Bank April

ng Marke 118.1 118.1 14.05 118.1

rch ultima Rent No transf 7

proper t price 2 2 % 2

Institu te er 2023

ty

te of contro

CETC lling

party

China Contr Intere

Potevi olled st on Intere Bank April

Marke 453.5 453.5 46.38 453.5

o by the entrus st on 650 No transf 7 Ibid

t price 9 9 % 9

Infor same ted loan er 2023

matio ultima loanFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.n te

Indust contro

ry lling

Co. party

Ltd.Contr

olled

CETC

by the Intere

Glaru

same st on Intere Bank April

n Marke 188.1 188.1 19.24 188.1

ultima guara st on 350 No transf 7 Ibid

Group t price 8 8 % 8

te nteed loan er 2023

Co.contro loan

Ltd.lling

party

52571740

Total -- -- -- -- -- -- -- --.230

Details of return of large sales Not applicable

The Company estimated that the total amount of routine related party transactions in 2023

did not exceed 174 million yuan. The total amount of routine related party transactions

Actual performance during the

actually occurred during the reporting period was 52.5723million yuan including 2.2997

reporting period (if any) for

million yuan for products and labor services purchased from related parties 41.6376million

expected routine related party

yuan for products and services provided to related parties rental income of 1.5764 million

transactions during the period with

yuan rent and property management fee payments of 0.6409 million yuan 4.5359 million

estimated total amount by category

yuan for interest payments on entrusted loans and 1.8818 million yuan for interest

payments on guaranteed loans staying within the estimated total amount.Reasons for the large difference

between the transaction price and

Not applicable

the market reference price (if

applicable)

2. Related party transactions arising from the acquisition or sale of assets or equity

□Applicable□Not applicable

During the reporting period there were no related party transactions of assets or equity acquisition or sale.

3. Related party transactions involving joint external investment

□Applicable□Not applicable

During the reporting period there were no related party transactions involving joint external investment

4. Related credits and debts

□Applicable □Not applicable

Whether there were non-operating related party transactions involving creditor's rights and debts

□Yes□No

During the reporting period there was no non-operating related party transactions involving creditor's rights and debts

5. Transactions with finance companies as related parties of the Company

□Applicable □Not applicable

Deposit businessFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Amount in the current period

Maximum Total

Range of Opening Total deposit Closing

Related daily deposit withdrawal

Relation Deposit balance (in amount in

parties limit (in amount in

balance (in

interest rate 10000 yuan) the current 10000 yuan)

10000 yuan) the currentperiod (in

period (in

10000 yuan)

10000 yuan)

Other

CETC enterprises

Finance Co. controlled by 62397.3 0.2% 2407.44 107075.93 110266.73 5309.89

Ltd. the actual

controller

Loan business

Amount in the current period

Total

Loan amount Range of Opening Total loan Closing

Related repayment

Relation (in 10000 loan interest balance (in amount in balance (in

parties amount in

yuan) rate 10000 yuan) the current the current 10000 yuan)

period (in

period (in

10000 yuan)

10000 yuan)

Other

CETC enterprises

Finance Co. controlled by 5500 3.8% 0 5500 5500

Ltd. the actual

controller

CETC CETC

Finance Co. Finance Co. 1500 3.75% 0 1500 1500

Ltd. Ltd.Credit granting or other financial business

Total amount (in Actual amount incurred

Related parties Relation Business type

10000 yuan) (in 10000 yuan)

Other enterprises

CETC Finance Co.controlled by the actual Credit granting 7000 7000

Ltd.controller

6. Transactions between the financial company controlled by the Company and related parties

□Applicable□Not applicable

There was no deposit loan credit or other financial business between the financial company controlled by the Company and its

related parties.

7. Other major related party transactions

□Applicable□Not applicable

There were no other major related party transactions during the reporting period.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.XV. Major contracts and their performance

1. Trusteeship contracting and leasing

(1) Trusteeship

□Applicable□Not applicable

There was no trusteeship during the reporting period.

(2) Contracting

□Applicable□Not applicable

There was no contracting during the reporting period.

(3) Leasing

□Applicable □Not applicable

Description of leasing

During the reporting period the Company and its subsidiaries incurred rental expenses of 640900 yuan and

rental revenue of 8954500 yuan.Items that brought profit or loss to the Company amounting to more than 10% of the total profit of the Company in the reporting

period

?Applicable□Not applicable

Amount

Impact

involved Lease Basis for

of lease Related

in leased income lease

Name of Name of Leased Lease Lease income party

assets (in income Relation

lessor lessee assets start date end date on the transacti

(in 10000 determin

Compan on or not

10000 yuan) ation

y

yuan)

Nanjing

Putian

Individu Real

Telecom June 1 August Contract Increase

al estate 13.58 17.96 No -

municati 2022 31 2027 signing profits

customer leasing

ons Co.Ltd.Nanjing

Nanjing

TOPPE

Putian

AK Real Decemb

Telecom January Contract Increase

Culture estate 7.82 er 31 23.81 No -

municati 1 2023 signing profits

Commu leasing 2027

ons Co.nication

Ltd.Co. Ltd.Under

Nanjing

the

Putian The 14th

Real Decemb control

Telecom Research March 1 Contract Increase

estate 264.86 er 31 34.55 Yes of the

municati Institute 2023 signing profits

leasing 2027 actual

ons Co. of CETC

controlle

Ltd.rFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Under

Nanjing

the

Putian The 14th

Real Decemb control

Telecom Research May 1 Contract Increase

estate 601.20 er 31 72.97 Yes of the

municati Institute 2023 signing profits

leasing 2027 actual

ons Co. of CETC

controlle

Ltd.r

Under

Nanjing

the

Putian The 14th

Real Novemb Novemb control

Telecom Research Contract Increase

estate 116.40 er 10 er 9 10.60 Yes of the

municati Institute signing profits

leasing 2023 2024 actual

ons Co. of CETC

controlle

Ltd.r

Nanjing

Nanjing

Putian

Innoflow

Telege Real

Industry January January Contract Increase

Intellige estate 54.52 73.35 No -

and 20 2020 19 2025 signing profits

nt leasing

Trade

Building

Co. Ltd.Ltd.Nanjing

Nanjing

Putian

Huahao

Telege Real Novemb Novemb

Building Contract Increase

Intellige estate 25.29 er 16 er 15 32.41 No -

Technol signing profits

nt leasing 2021 2024

ogy Co.Building

Ltd.Ltd.Under

the

Nanjing

Nanjing Real Decemb control

Southern January Contract Increase

Lopu estate 15.06 er 31 39.52 Yes of the

Telecom 1 2021 signing profits

Co. Ltd. leasing 2023 actual

Co. Ltd.controlle

r

Nanjing

Nanjing

Infy

Nanman Real Septemb

Power 1285.2 August Contract Increase

Electrica estate er 1 304.76 No -

Technol 1 31 2025 signing profits

l Co. leasing 2022

ogy Co.Ltd.Ltd.Nanjing

Putian

Changle

Individu Real Decemb Novemb

Commu Contract Increase

al estate 2.90 er 1 er 30 18.35 No -

nication signing profits

customer leasing 2022 2023

Equipme

nt Co.Ltd.Nanjing Nanjing

Putian Puloume

Changle ng

Real Novemb

Commu Intellige October Contract Increase

estate 1.97 er 1 12.69 No -

nication nt 30 2024 signing profits

leasing 2021

Equipme Technol

nt Co. ogy Co.Ltd. Ltd.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Nanjing

Nanjing

Putian

Pianfeng

Changle

Screen Real

Commu May 18 May 17 Contract Increase

Culture estate 3.02 27.76 No -

nication 2023 2025 signing profits

Commu leasing

Equipme

nication

nt Co.Co. Ltd.Ltd.Nanjing

Putian

Nanjing

Changle

Zhongni Real

Commu May 20 July 20 Contract Increase

ngda estate 3.45 36.70 No -

nication 2023 2026 signing profits

Logistics leasing

Equipme

Co. Ltd.nt Co.Ltd.Nanjing Nanjing

Putian Jinhong

Changle Huijian

Real Septemb

Commu Decorati August Contract Increase

estate 2.89 er 1 9.17 No -

nication on 31 2029 signing profits

leasing 2023

Equipme Engineer

nt Co. ing Co.Ltd. Ltd.Nanjing

Putian

Nanjing

Datang

Lerun Real

Informat October October Contract Increase

Instrume estate 42.44 25.92 No -

ion 8 2019 7 2029 signing profits

nt Co. leasing

Electroni

Ltd.cs Co.Ltd.Nanjing

Nanjing

Putian

Aideng

Datang

Electroni Real

Informat May 18 May 17 Contract Increase

c estate 42.44 23.08 No -

ion 2017 2023 signing profits

Technol leasing

Electroni

ogy Co.cs Co.Ltd.Ltd.Nanjing

Nanjing

Putian

Yihe

Datang

Electroni Real

Informat March 1 February Contract Increase

c estate 32.33 31.77 No -

ion 2021 28 2026 signing profits

Technol leasing

Electroni

ogy Co.cs Co.Ltd.Ltd.Nanjing

Putian Nanjing

Datang Yihe

Real

Informat Software March 1 February Contract Increase

estate 64.67 31.77 No -

ion Technol 2021 28 2026 signing profits

leasing

Electroni ogy Co.cs Co. Ltd.Ltd.Nanjing Nanjing Real 27.79 April 1 March 15.43 Contract Increase No -Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Putian Nanda estate 2023 30 2028 signing profits

Datang Digital leasing

Informat Technol

ion ogy Co.Electroni Ltd.cs Co.Ltd.Nanjing

Nanjing

Putian

Dunhua

Datang

Electroni Real

Informat June 1 May 31 Contract Increase

c estate 42.44 10.08 No -

ion 2021 2023 signing profits

Technol leasing

Electroni

ogy Co.cs Co.Ltd.Ltd.Nanjing

Under

Putian Land

the

Potevio Changle rent and

Decemb control

Hi-tech Commu property January Contract Costs

/ er 31 64.09 Yes of the

Industry nication manage 1 2023 signing expenses

2023 actual

Co. Ltd. Equipme ment

controlle

nt Co. fees

r

Ltd.

2. Material guarantees

□Applicable□Not applicable

There was no material guarantee during the reporting period.-

3. Delegation of cash asset management to others

(1) Entrusted wealth management

□Applicable□Not applicable

There was no entrusted wealth management during the reporting period.

(2) Entrusted loans

□Applicable□Not applicable

There was no entrusted loan during the reporting period.

4. Other major contracts

□Applicable□Not applicable

There was no other major contract during the reporting period.XVI. Explanations of other major matters

□Applicable □Not applicableFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Matter Date ofRelated query index of the informationdisclosure disclosure website

Announcement on Changing the Designated January 17

Information Disclosure Media 2023 CNINFO (www.cninfo.com.cn)

Annual Performance Forecast for 2022 January 202023 CNINFO (www.cninfo.com.cn)

Announcement on Independent Directors ObtainingFebruary 4

Independent Director Qualification Certificates 2023 CNINFO (www.cninfo.com.cn)

Announcement on the Resignation of the ViceFebruary 15

Chairman of the Board of Directors 2023 CNINFO (www.cninfo.com.cn)

Announcement of the Resolutions of the 4th MeetingFebruary 17

of the 8th Board of Directors 2023 CNINFO (www.cninfo.com.cn)

Notice on Convening the 1st Extraordinary General February 17

Meeting of Shareholders in 2023 2023 CNINFO (www.cninfo.com.cn)

Announcement of the Resolutions of the 1st

Extraordinary General Meeting of Shareholders inMarch 7 2023 CNINFO (www.cninfo.com.cn)

2023

Announcement of the Resolutions of the 5th Meeting

of the 8th Board of Directors April 7 2023 CNINFO (www.cninfo.com.cn)

Announcement on Expected Routine Related Party

Transactions in 2023 April 7 2023 CNINFO (www.cninfo.com.cn)

Announcement on Accumulated Litigation April 7 2023 CNINFO (www.cninfo.com.cn)

Announcement on the Completion of the Transfer of

the Company’s State-Owned Legal Person Shares April 19 2023 CNINFO (www.cninfo.com.cn)

Announcement of the Resolutions of the 6th Meeting

of the 8th Board of Directors April 20 2023 CNINFO (www.cninfo.com.cn)

Announcement of the Resolutions of the 3rd Meeting

of the 8th Board of Supervisors April 20 2023 CNINFO (www.cninfo.com.cn)

Summary of the Annual Report 2022 April 20 2023 CNINFO (www.cninfo.com.cn)

Announcement on Provision for Impairment of

Assets in 2022 April 20 2023 CNINFO (www.cninfo.com.cn)

Announcement on Expected Continuous Related

Party Transactions with CETC Finance Co. Ltd. inApril 20 2023 CNINFO (www.cninfo.com.cn)

2023

Announcement on Engaging an Accounting Firm April 20 2023 CNINFO (www.cninfo.com.cn)

Notice on Convening the 2022 Annual General

Meeting of Shareholders April 20 2023 CNINFO (www.cninfo.com.cn)

Announcement on Completing Transfer Registration

for Free Transfer of State-owned Shares andApril 20 2023 CNINFO (www.cninfo.com.cn)

Changing Controlling Shareholder

Report for the First Quarter of 2023 April 29 2023 CNINFO (www.cninfo.com.cn)

Announcement of the Resolutions of the 7th Meeting

of the 8th Board of Directors April 29 2023 CNINFO (www.cninfo.com.cn)

Announcement on Response to Shenzhen Stock

Exchange Annual Report Inquiry Letter May 26 2023 CNINFO (www.cninfo.com.cn)

Announcement of Resolution of 2022 Annual

General Meeting of Shareholders May 27 2023 CNINFO (www.cninfo.com.cn)

Announcement on Convening the 2022 Online

Performance Briefing May 30 2023 CNINFO (www.cninfo.com.cn)

Record Form of Investor Relations Activities June 7 2023 CNINFO (www.cninfo.com.cn)

Announcement on Accumulated Litigation June 8 2023 CNINFO (www.cninfo.com.cn)

Semi-annual Performance Forecast for 2023 July 15 2023 CNINFO (www.cninfo.com.cn)

Announcement on Accumulated Litigation July 27 2023 CNINFO (www.cninfo.com.cn)Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Announcement of the Resolutions of the 8th Meeting

of the 8th Board of Directors July 27 2023 CNINFO (www.cninfo.com.cn)

Summary of the Semi-annual Report for 2023 August 29 2023 CNINFO (www.cninfo.com.cn)

Announcement of the Resolutions of the 9th Meeting

of the 8th Board of Directors August 29 2023 CNINFO (www.cninfo.com.cn)

Announcement of the Resolutions of the 5th Meeting

of the 8th Board of Supervisors August 29 2023 CNINFO (www.cninfo.com.cn)

Announcement on the Liquidation and Closure of a

Subsidiary August 29 2023 CNINFO (www.cninfo.com.cn)

Announcement of the Resolutions of the 10thSeptember 21

Meeting of the 8th Board of Directors 2023 CNINFO (www.cninfo.com.cn)

Announcement on the Liquidation and Dissolution ofSeptember 21

a Subsidiary 2023 CNINFO (www.cninfo.com.cn)

Progress Announcement on the Liquidation andSeptember 27

Dissolution of a Subsidiary 2023 CNINFO (www.cninfo.com.cn)

Report for the third quarter of 2023 October 312023 CNINFO (www.cninfo.com.cn)

Progress Announcement on the Liquidation andNovember 30

Dissolution of a Subsidiary 2023 CNINFO (www.cninfo.com.cn)

Announcement of the Resolutions of the 12thDecember 7

Meeting of the 8th Board of Directors 2023 CNINFO (www.cninfo.com.cn)

Announcement on Liquidation and Dissolution of aDecember 7

Tertiary Subsidiary 2023 CNINFO (www.cninfo.com.cn)

Progress Announcement on the Liquidation andDecember 28

Dissolution of a Tertiary Subsidiary 2023 CNINFO (www.cninfo.com.cn)

XVII. Major issues of the Company's subsidiaries

□Applicable□Not applicableFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Section VII Changes in Shares and Shareholders

I. Changes in shares

1. Changes in shares

Unit: share

Before the change Increase or decrease (+ -) in this change After the change

Conversio

Issue of n of

Proportio Share Proportio

Quantity new provident Others Subtotal Quantity

n offering n

shares fund into

shares

I.Unlisted 1150000 1150000

53.49%53.49%

tradable 00 00

shares

1. Shares

11500001150000

of 53.49% 53.49%

0000

founders

Where:

Shares 1150000 1150000

53.49%53.49%

held by 00 00

the state

Shares

held by

domestic

legal

persons

Shares

held by

overseas

legal

persons

Others

2. Shares

held by

legal

persons

3. Shares

held by

employee

s

4.

Preferred

shares or

other

II. Listed 1000000 100000046.51% 46.51%

tradable 00 00Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.shares

1.

Ordinary

shares in

Renminbi

2. Foreign

shares 1000000 1000000

46.51%46.51%

listed in 00 00

China

3. Foreign

shares

listed

overseas

4. Others

III. Total

21500002150000

number of 100.00% 100.00%

0000

shares

Reasons for changes in shares

□Applicable□Not applicable

Approval of share changes

□Applicable□Not applicable

Transfer of shares

□Applicable□Not applicable

Effect of share changes on financial indicators such as basic and diluted earnings per share and net assets per share attributable to

ordinary shareholders of the Company for the most recent year and the most recent period

□Applicable□Not applicable

Other contents that the Company deems necessary to be disclosed or required to be disclosed by the securities regulatory authority

□Applicable□Not applicable

2. Changes in restricted shares

□Applicable□Not applicable

II. Issuance and listing of securities

1. Securities issuance (excluding preferred shares) during the reporting period

□Applicable□Not applicable

2. Changes in the total number of shares and shareholder structure of the Company and changes in the

structure of assets and liabilities of the Company

□Applicable□Not applicable

3. Existing shares held by employees

□Applicable□Not applicableFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.III. Shareholders and actual controllers

1. Number and shareholding of shareholders of the Company

Unit: share

Total

Total number of

number of preferred

Total ordinary shareholder

Total number of preferred

number of shareholder s whose

shareholders whose voting

common s at the end voting

rights were restored at the

shareholder of last rights were

7650 7657 0 end of the previous month 0

s at the end month restored at

before the disclosure date

of the before the the end of

of the annual report (if

reporting disclosure the

any) (see Note 8)

period date of the reporting

annual period (if

report any) (see

Note 8)

Shareholders holding more than 5% of the shares or the top 10 shareholders' shareholdings (excluding shares lent through

refinancing)

Number of Pledge marking or

Increase or

shares held Number of Number of freezing

decrease

Shareholde Type of Shareholdi at the end unlisted listed and

during the

r name shareholder ng ratio of the tradable tradable

reporting Shares

reporting shares held shares held Quantity

period status

period

CETC State-

Glarun owned 11500000 11500000 Not

53.49%000

Group Co. legal 0 0 applicable

Ltd. person

Shenwan

Overseas

Hongyuan 5476788.0 5476788.0 Not

legal 2.55% 874688.00 0 0

Securities 0 0 applicable

person

(H.K.) Ltd.Natural

3104600.0 2319200.0 3104600.0 Not

He Wei person in 1.44% 0 0

0 0 0 applicable

China

GUOTAI

JUNAN

Overseas

SECURITI 2747797.0 2747797.0 Not

legal 1.28% 195339.00 0 0

ES (HONG 0 0 applicable

person

KONG)

LIMITED

Natural

Zheng 2449739.0 2449739.0 Not

person in 1.14% 0.00 0 0

Enyue 0 0 applicable

China

Natural

Sun 2022200.0 2022200.0 Not

person in 0.94% -57800.00 0 0

Huiming 0 0 applicable

China

Natural

1871371.0 1871371.0 Not

Gu Jinhua person in 0.87% 0.00 0 0

0 0 applicable

China

Li Natural 0.54% 1168820.0 848520.00 0 1168820.0 Not 0Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Mingling person in 0 0 applicable

China

Natural

Zhen 1010900.0 1010900.0 Not

person in 0.47% 8600.00 0 0

Hongquan 0 0 applicable

China

Natural

Not

Xiang Yan person in 0.42% 905602.00 0.00 0 905602.00 0

applicable

China

Strategic investors or

general legal entities

becoming top 10

shareholders as a result of None

the placement of new

shares (if any) (see Note

3)

Description of the above-

Among the top 10 shareholders CETC Glarun Group Co. Ltd. was not related to other shareholders

mentioned shareholders'

and was not a party acting in concert. The Company did not know whether other shareholders were

association or concerted

related to each other or were parties acting in concert.actions

Explanation of the above

shareholders' involvement

in proxy/entrusted voting None

rights and abstention from

voting rights

Special note on the

existence of repurchase

special accounts of the top None

10 shareholders (if any)

(see Note 10)

Shareholding of the top 10 tradable shareholders

Type of shares

Number of listed and tradable shares held at the end of the reporting

Shareholder name

period Type of Quantity

shares

Domestic

Shenwan Hongyuan listed 5476788.0

5476788.00

Securities (H.K.) Ltd. foreign 0

shares

Domestic

listed 3104600.0

He Wei 3104600.00

foreign 0

shares

Domestic

GUOTAI JUNAN

listed 2747797.0

SECURITIES (HONG 2747797.00

foreign 0

KONG) LIMITED

shares

Domestic

listed 2449739.0

Zheng Enyue 2449739.00

foreign 0

shares

Domestic

listed 2022200.0

Sun Huiming 2022200.00

foreign 0

shares

Gu Jinhua 1871371.00 Domestic 1871371.0Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.listed 0

foreign

shares

Domestic

listed 1168820.0

Li Mingling 1168820.00

foreign 0

shares

Domestic

listed 1010900.0

Zhen Hongquan 1010900.00

foreign 0

shares

Domestic

listed

Xiang Yan 905602.00 905602.00

foreign

shares

Domestic

listed

Xia Zulin 900000.00 900000.00

foreign

shares

Description of the

relationship or concerted

action among the top 10

shareholders with

unlimited tradable shares The Company did not know whether the above shareholders were related to each other or were

and between the top 10 acting in concert.shareholders with

unlimited tradable shares

and the top 10

shareholders

Description of the

participation of the top 10

ordinary shareholders in

None

margin financing and

securities lending business

(if any) (see Note 4)

Details of the Top Ten Shareholders’ Participation in Share Lending Through Refinancing Business

□Applicable□Not applicable

Changes in the Composition of the Top Ten Shareholders

□Applicable□Not applicable

Whether the Company's top 10 ordinary shareholders and top 10 shareholders holding ordinary shares with unlimited selling

conditions entered into agreed repurchase transactions during the reporting period

□Yes□No

The top 10 ordinary shareholders of the Company and the top 10 shareholders holding ordinary shares with unlimited selling

conditions did not conduct agreed repurchase transactions during the reporting period.

2. Controlling shareholder of the Company

Nature of controlling shareholder: central state-owned holding

Type of controlling shareholder: legal person

Name of controlling Legal Date of establishment Organization code Main business

shareholder representative/personFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.in charge

Research and

development of

electronic products

communication

equipment instruments

and meters research

and development of

railway special

equipment and

accessories research

and development of

computer software and

hardware technical

services import and

export business of self-

operated and agent

commodities and

technologies domestic

trade design and

CETC Glarun Group

Wang Jianming December 17 2007 91320000670120685E construction of

Co. Ltd.intelligent building

system engineering

electronic system

engineering highway

communication

monitoring and toll

collection integrated

system engineering

consulting services

related to aviation

systems research and

development of

agricultural machinery

and accessories

technical services

construction and

maintenance of

agricultural production

information systems

Shareholdings in other

domestic and foreign

listed companies which

the controlling

shareholder controlled Shares of other domestic and overseas listed company holding and participating shares include: Glarun

or in which the Technology Co. Ltd. CETC Digital Technology Co. Ltd.controlling shareholder

held an equity stake

during the reporting

period

Changes of controlling shareholder during the reporting period

□Applicable □Not applicable

Name of new controlling shareholder CETC Glarun Group Co. Ltd.Date of change April 17 2023Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Announcement on Completing Transfer Registration and

Changing Controlling Shareholder for Free Transfer of State-

Query index on the designated website

owned Shares (Announcement No.: 2023-011) released on

CNINFO

Date of disclosure on the designated website April 18 2023

3. Actual controller of the Company and persons acting in concert

Nature of actual controller: central state-owned assets management institution

Type of actual controller: legal person

Legal

Name of actual

representative/person Date of establishment Organization code Main business

controller

in charge

Mainly engaged in the

construction of national

important military and

civilian large-scale

electronic information

China Electronics Unified social credit systems and the

Technology Group Wang Haibo February 25 2002 code development and

Corporation 91110000710929498G production of major

equipment

communication and

electronic equipment

software and key

components.Equity interests in Other domestic and foreign listed companies controlled by the actual controller: Hangzhou Hikvision

other domestic and Digital Technology Co. Ltd. Taiji Computer Corporation Limited CETC Digital Technology Co.foreign listed Ltd. CETC Cyberspace Security Technology Co. Ltd.; Glarun Technology Co. Ltd. CETC Chip

companies controlled Technology Co. Ltd. Sun Create Electronics Co. Ltd. Chengdu Spaceon Electronics Co. Ltd. CETC

by the actual controller Potevio Science & Technology Co. Ltd. Phoenix Optics Co. Ltd. Hebei Sinopack Electronic

during the reporting Technology Co. Ltd. Eastern Communications Co. Ltd. Eastcompeace Technology Co. Ltd. Guobo

period Electronics Co. Ltd. and Chengdu SIWI Science and Technology Co. Ltd.Change of actual controller during the reporting period

□Applicable□Not applicable

The actual controller of the Company was not changed during the reporting period.Ownership and control relationship between the Company and the actual controller in the form of a block diagram

State-owned Assets Supervision and

Administration Commission of the

State Council

100%

China Electronics Technology Group

Corporation

100%

CETC Glarun Group Co. Ltd.

53.49%

Nanjing Putian Telecommunications

Co. Ltd.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Control of the Company by the actual controller through trust or other asset management modes

□Applicable□Not applicable

4. The controlling shareholder or the largest shareholder of the Company and the persons acting in

concert pledged 80% of the number of shares held by them

□Applicable□Not applicable

5. Other corporate shareholders holding more than 10% of shares

□Applicable□Not applicable

6. Restrictions on shareholding reduction by controlling shareholder actual controller restructured

parties and other entities making commitments

□Applicable□Not applicable

IV. Implementation of share repurchase during the reporting period

Implementation progress of share repurchase

□Applicable□Not applicable

Implementation progress of reducing repurchased shares by centralized bidding transaction

□Applicable□Not applicableFull text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Section VIII Information on Preferred Shares

□Applicable□Not applicable

The Company had no preferred shares during the reporting period.Full text of the Annual Report 2023 of Nanjing Putian Telecommunications Co. Ltd.Section IX Information on Bonds

□Applicable□Not applicableAuditor’s Report

DAXIN SHEN ZI [2024]No. 1-00663

To the Shareholders of Nanjing Putian Telecommunications Co. Ltd.:

I. Opinion

We have audited the financial statements of Nanjing Putian Telecommunications Co. Ltd (hereafter

referred to as “the Company”) which comprise the consolidated and the Company's balance sheets

as at December 31 2023 the consolidated and the Company's statements of income the

consolidated and the Company's statements of cash flows and the consolidated and the Company's

statements of changes in equity for the year then ended and notes to the financial statements.In our opinion the accompanying financial statements give a true and fair view of the financial

position of the Company as at December 31 2022 and of its financial performance and cash flows

for the year then ended in accordance with Accounting Standards for Business Enterprises.II. Basis for Opinion

We conducted our audit in accordance with Chinese Certified Public Accountants Auditing

Standards. Our responsibilities under those standards are further described in the Auditor’s

Responsibilities for the Audit of the Financial Statements section of our report. We are independent

of the Company in accordance with the Code of Ethics for Chinese Certified Public Accountants and

have fulfilled our other ethical responsibilities in accordance with the Code.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis

for our audit opinion.III. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most significance in

our audit of the financial statements of the current period. These matters were addressed in the

context of our audit of the financial statements as a whole and in forming our opinion thereon and

we do not provide a separate opinion on these matters.(I) Revenue recognition1. Event description

As stated in notes III (25) of the financial statements and notes V(34) Operating revenue and

operating costs the sales revenue of the company in 2023 was81833.44 ten thousand yuan.Operating income is one of the company's key performance indicators and an important part of the

source of profit. There is an inherent risk that management manipulates revenue recognition for

specific purposes and we therefore identify revenue recognition as a critical audit event.

2. Audit response

(1) Understand and evaluate the revenue process of transaction booking and key internal controls of

management.

(2) Select samples of revenue transactions recorded in the reporting period check sales orders sales

invoices shipping records customer receipt documents and other materials and evaluate whether

relevant revenue recognition conforms to your company's accounting policies for revenue

recognition.

(3) Perform analytical review procedures for operating revenue and gross profit margin based on

product customer and other dimensions to judge the rationality of changes in operating revenue and

gross profit margin.

(4) Confirm the sales revenue generated by major customers and the balance of accounts receivable

to evaluate the authenticity and accuracy of your company's revenue recognition.

(5) Perform sample tests on sales revenue recognized around the balance sheet date to assess

whether sales revenue is recognized in the appropriate period.(II) Provision for bad debts of accounts receivable

Event description

The relevant disclosures are detailed in notes III (12) and V (3) to the financial statements.As of December 31 2023 the book balance of accounts receivable of the company is 49973.00 ten

thousand yuan the balance of bad debt reserve is 19811.17 ten thousand yuan and the book value is

30161.83 ten thousand yuan accounting for 36.50% of the total assets

The management of your company (hereinafter referred to as the management) measures its loss

reserve in accordance with the expected credit loss amount equivalent to the entire duration based on

a single account receivable or a combination of accounts receivable based on the credit risk

characteristics of each account receivable. For the receivables that measure expected credit losses on

a single item basis the management estimates the expected cash flow by taking into account

reasonable and evidence-based information about past events current conditions and future

economic conditions and determines the allowance for bad debts accordingly. For accounts

receivable that measure expected credit loss on the basis of portfolio the management divides the

portfolio based on aging refers to historical credit loss experience and makes adjustments according

to forward-looking estimates and prepares a comparison table between aging accounts receivable

and expected credit loss rate to determine the allowance for bad debts.Due to the significant amount of accounts receivable and the significant management judgment

involved in the impairment test of accounts receivable we identified the impairment of accounts

receivable as a critical audit matter.

2. Audit response

For the impairment of accounts receivable our audit procedures mainly include:

(1) Understand and evaluate the design and operational effectiveness of key internal controls related

to accounts receivable bad debt reserve;;

(2) For the accounts receivable for which bad debt provision is made according to individual

assessment we have sampled and reviewed the basis for the management to calculate the

recoverable amount including the management's assessment of the customer's credit risk based on

the customer's current credit status repayment willingness and repayment ability;

(3) For the accounts receivable set aside for bad debts according to the aging combination we

sampled the key information such as aging and overdue days；

(4) We reviewed management's calculation of allowance for doubtful accounts receivable;

(5) Implement confirmation of large and important accounts receivable and evaluate the rationality

of the management's provision for bad debts of accounts receivable based on procedures such as

post-period collection and long-term reason analysis of accounts receivable.IV. Other Information

The directors of the Company are responsible for the other information. The other information

comprises all of the information included in the annual report other than the financial statements and

our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express

any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other

information and in doing so consider whether the other information is materially inconsistent with

the financial statements or our knowledge obtained in the audit or otherwise appears to be materially

misstated.If based on the work we have performed we conclude that there is a material misstatement of this

other information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Directors and Those Charged with Governance for the Financial

Statements

The directors of the Company are responsible for the preparation of financial statements that give a

true and fair view in accordance with Accounting Standards for Business Enterprises and for such

internal control as the directors determine is necessary to enable the preparation of the financialstatements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the directors are responsible for assessing the Company’s

ability to continue as a going concern disclosing as applicable matters related to going concern and

using the going concern basis of accounting unless the directors either intend to liquidate the

Company or to cease operations or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting

process.VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial

Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement whether due to fraud or error and to issue an auditor’s report

that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in

accordance with auditing standards will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individually or in the

aggregate they could reasonably be expected to influence the economic decisions of users taken on

the basis of these financial statements.As part of an audit in accordance with auditing standards we exercise professional judgement and

maintain professional scepticism throughout the audit. We also:

A. Identify and assess the risks of material misstatement of the financial statements whether due to

fraud or error design and perform audit procedures responsive to those risks and obtain audit

evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not

detecting a material misstatement resulting from fraud is higher than for one resulting from error as

fraud may involve collusion forgery intentional omissions misrepresentations or the override of

internal control.B. Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances but not for the purpose of expressing an

opinion on the effectiveness of the Company’s internal control.C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the directors.D. Conclude on the appropriateness of the directors’ use of the going concern basis of accounting

and based on the audit evidence obtained whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Company’s ability to continue as a going concern.If we conclude that a material uncertainty exists we are required to draw attention in our auditor’s

report to the related disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our

auditor’s report. However future events or conditions may cause the Company to cease to continue

as a going concern.E. Evaluate the overall presentation structure and content of the financial statements and whether

the financial statements represent the underlying transactions and events in a manner that achieves

fair presentation.F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or

business activities within the Company to express an opinion on the financial statements. We are

responsible for the direction supervision and performance of the group audit. We remain solely

responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned

scope and timing of the audit and significant audit findings including any significant deficiencies in

internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with

relevant ethical requirements regarding independence and to communicate with them all

relationships and other matters that may reasonably be thought to bear on our independence and

where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters

that were of most significance in the audit of the financial statements of the current period and are

therefore the key audit matters. We describe these matters in our auditor’s report unless law or

regulation precludes public disclosure about the matter or when in extremely rare circumstances we

determine that a matter should not be communicated in our report because the adverse consequences

of doing so would reasonably be expected to outweigh the public interest benefits of such

communication.WUYIGE CERTIFIED PUBLIC ACCOUNTANTS LLP.Certified Public Accountant of China

(Engagement partner)

Certified Public Accountant of China

China . Beijing

Date: April 26 2024Nanjing Putian Telecommunications Co. Ltd.Notes to Financial Statements

Monetary unit: RMB Yuan

I. Company profile

Nanjing Putian Telecommunications Co. Ltd. (the “Company”) whose predecessor is Nanjing

Telecommunication Facility Factory was established as a limited liability company through

financing under the approval of National Economic Institutional Reform Commission with

document of approval numbered TGS [1997] 28 dated March 21 1997. The Company is

headquartered in Nanjing City Jiangsu Province. Currently it holds a business license with unified

social credit code of 91320000134878054G with registered capital of 215000000.00 yuan total

share of 215000000.00 shares with par value of 1 yuan per share. Among them 115000000

shares are state-owned legal person shares and 100000000 shares are B shares. The Company was

listed on the Shenzhen Stock Exchange on May 22 1997.The Company belongs to telecommunication equipment manufacture industry and is mainly engaged

in R&D production and sale of data wire and wireless telecommunication equipment distribution

and allocation of layout of telecommunication product multimedia computer digital television

vehicle electronics and conference video system. R & D manufacturing and sales of new energy

vehicle charging products and their accessories (including electric vehicle charger charging module

charging station system split charging cabinet outdoor integrated pile various AC and DC charging

piles and other accessories); Design and sales of new energy charging and discharging overall

solutions; Electric vehicle charging operation and maintenance. R & D and sales of software and

intelligent software platform. Smart city smart elderly care and other industry information services.R & D manufacturing sales installation and service of video equipment and video conference

system. Agent sales of communication modified vehicles (excluding wholesale) and provide

corresponding after-sales service. Design system integration and related consulting services of

communication information network engineering and computer information system engineering.Design construction installation and service of building intelligent system engineering. Lease of

self owned assets such as houses and equipment.The financial statements have been deliberated and approved for issue by the Board of Directorsdated April 26 2024.The Company includes Nanjing Putian Changle Communication Equipment Co. LTD. Nanjing

Putian Tianji Building Intelligence Co. LTD. and other five subsidiaries in the scope of the current

consolidated financial statements as detailed in Notes VII and VIII of the financial statements.II. Preparation basis of the financial statements

(I) Preparation basis

The financial statements of the Company are prepared on the basis of going concern based on actual

transactions and events in accordance with the Accounting Standards for Business Enterprises-Basic

Standards and specific Accounting Standards promulgated by the Ministry of Finance (hereinafter

collectively referred to as the "Accounting Standards for Business Enterprises") and based on the

important accounting policies and accounting estimates described below.(II) Assessment of the ability to continue as a going concern

The Company has no events or circumstances that would cause material doubt about its ability to go

as a going concern for the 12 months from the end of the reporting period.The company optimizes the industrial layout focuses on the main business continues to promote the

upgrading and transformation of the business to intelligent conference intelligent wiring intelligent

power distribution intelligent lighting expand the high-quality market direction of central

enterprises finance energy airports ports military industry promote innovation and research and

development capabilities and strive to form core and differentiated competitive advantages to

improve the company's core competitiveness. In 2024 the company won the bid or signed the

"National Oil and Gas Pipeline Network Group Co. LTD. Video Conference Project" with the

project amount of about 85 million yuan; "Ningbo Rail Transit Line 6 Phase I distribution box

(cabinet)" the project amount is about 37.33 million yuan; "Hubei Provincial Center for Disease

Control and Prevention comprehensive capacity improvement (Phase I) project the project amount

of about 7.48 million yuan and other projects. The company continues to consolidate the advantages

of the industry while actively expanding the upstream and downstream industry chain of China

Electronics Group synergy 2023 sales to member units increased by 88% over the previous year.III. Significant accounting policies and estimatesImportant note: The Company has formulated specific accounting policies and estimates for

transactions or matters such as impairment of financial instruments depreciation of fixed assets

amortization of intangible assets and revenue recognition according to the actual characteristics of

production and operation.(I) Statement of compliance

The financial statements prepared by the Company comply with the requirements of the Accounting

Standards for Business Enterprises and truly and completely reflect the financial position of the

Company as of December 31 2022 the operating results and cash flows of the year from January to

December 2022 and other relevant information.(II) Accounting period

The accounting year of the Company runs from January 1 to December 31 under the Gregorian

calendar.(III) Operating cycle

The Company has a relatively short operating cycle for its business an asset or a liability is

classified as current if it is expected to be realized or due within 12 months.(IV) Functional currency

The Company’s functional currency is Renminbi (RMB) Yuan.(V) Method for determining importance criteria and selection criteria

Importance of itemized items in the notes to the financial statements

The Company determines the importance of the detailed items in the notes to the financial

statements and on the basis of the importance of the items in the financial statements the specific

items account for a certain proportion of the project or the combined amount while taking into

account the nature of the specific items. Some items are not material to the financial statements but

may be material to the notes and still need to be disclosed separately in the notes. The relevant

materiality criteria for the notes to the financial statements are:

item Materiality criteria

Material item receivables for Accounting for more than 5% of the amount of the corresponding receivables and the

provision for bad debts amount exceeds 4 million yuan or the provision for bad debts in the current period affectsthe change in profit and loss

Recovery or reversal of The impact of the reversal of bad debt reserves accounts for more than 5% of the current

provisions for bad debts of period's bad debt reserves and the amount exceeds 1 million yuan or affect the change in

significant receivables profit and loss of the current perioditem Materiality criteria

Significant debt investments Accounts for more than 5% of the debt investment and the amount exceeds 1 million yuan

Important accounts payable and

other payables with an account Account for more than 5% of the balance of accounts payable or other payables and the

age of more than 1 year amount exceeds 1 million yuan

Significant joint ventures or Book value of a long-term equity investment of more than 10% or investment gains (losses

associates in absolute terms) from a joint venture or associate of more than 10% of the net profit of theconsolidated statement

(VI) Accounting treatments of business combination under and not under common control

1. Accounting treatment of business combination under common control

Of a long-term equity investment under the same control enterprise merger form combined party to

pay in cash transfers non-cash assets or bear debt as a merger of consideration the company

owners' equity on the combining date according to the combined party on the final the share of the

book value of the control side of the consolidated financial statements as the initial cost of the long-

term equity investment. If the merging party issues equity instruments as the merger consideration

the total par value of the issued shares shall be used as the share capital. The difference between the

initial investment cost of long-term equity investment and the book value of the combined

consideration (or the total face value of the issued shares) shall be adjusted to the capital reserve; If

the capital reserve is insufficient to offset the retained earnings shall be adjusted.

2. Accounting treatment of business combination not under common control

For business combinations not under the same control the merger cost is the sum of the fair value of

the assets paid by the purchaser the liabilities incurred or assumed and the equity securities issued

by the purchaser on the purchase date in order to gain control over the acquired purchaser. The

identifiable assets liabilities and contingent liabilities of the purchased party that are acquired in a

business combination under different control and meet the recognition conditions shall be measured

at fair value on the purchase date. The difference between the buyer's cost of the merger and the fair

value share of the identifiable net assets of the acquiree obtained in the merger is reflected as the

value of goodwill. If the merger cost is less than the fair value share of the identifiable net assets of

the acquiree obtained in the merger the difference between the merger cost and the fair value share

of the identifiable net assets of the acquiree obtained in the merger shall be included in the non-

operating income of the current period.(VII) Compilation method of consolidated financial statements1. Scope of consolidated financial statements

The parent company includes all subsidiaries under its control in the consolidated scope of the

consolidated financial statements. The consolidated financial statements are based on the financial

statements of the parent company and its subsidiaries and are prepared by the parent Company in

accordance with Accounting Standards for Business Enterprises No. 33 - Consolidated Financial

Statements based on other relevant information.The Company includes all subsidiaries (including the separate entities controlled by the Company)

into the scope of consolidated financial statements including the enterprises controlled by the

Company the divisible parts of the investee units and the structured entities.

2. Unify the accounting policies balance sheet dates and accounting periods of the parent-subsidiary

company

If the accounting policies or accounting periods adopted by a subsidiary are not consistent with those

adopted by the Company it shall make necessary adjustments to the financial statements of the

subsidiary in accordance with the accounting policies or accounting periods adopted by the

Company when preparing the consolidated financial statements.

3. Offset items in consolidated financial statements

The consolidated financial statements are based on the financial statements of the Company and

subsidiaries and have offset internal transactions that occur between the Company and subsidiaries

and among subsidiaries. The shares of the owners' equity of subsidiaries that do not belong to the

Company shall as minority shareholders' equity be listed under the "minority shareholders' equity"

item in the consolidated balance sheet. Long-term equity investments of the Company held by

subsidiaries are considered Treasury shares of the Company and are shown as a deduction of

Stockholders' equity in the consolidated balance sheet under the item of Stockholders' equity as

"Less: Treasury shares".

4. Merger and acquisition of subsidiary accounting treatment

For the subsidiaries acquired by the merger of enterprises under the same control the merger shall

be deemed to have occurred when the ultimate controlling party began to exercise control and its

assets liabilities operating results and cash flows shall be included in the consolidated financial

statements from the beginning of the merger period. For subsidiaries acquired by a merger ofenterprises not under the same control the individual financial statements shall be adjusted on the

basis of the fair value of identifiable net assets on the purchase date when preparing consolidated

financial statements.

5. Accounting for the disposal of subsidiaries

In the case of partial disposal of the long-term equity investment in the subsidiary without loss of

control in the consolidated financial statements the disposal price and the disposal of the long-term

equity investment shall be entitled to the difference between the shares of net assets continuously

calculated by the subsidiary since the purchase date or the merger date and the capital reserve

(capital premium or equity premium) shall be adjusted. If the capital reserve is insufficient for write-

down the retained earnings shall be adjusted.If the investor loses the right of control due to the disposal of part of the equity investment or other

reasons the remaining equity shall be remeasured according to the fair value on the date of the loss

of the right of control when preparing the consolidated financial statements. The sum of the

consideration obtained from the disposal of the equity and the fair value of the remaining equity

minus the difference between the shares of the original shareholding proportion which should enjoy

the net assets continuously calculated from the purchase date or merger date of the original

subsidiary shall be included in the investment income of the period of loss of control and the

goodwill shall be written down at the same time. Other comprehensive income related to the equity

investment of the original subsidiary shall be converted to current investment income when the right

of control is lost.(VII) Classification of joint arrangements and accounting treatment of joint operations

1. Classification of joint venture arrangements

Joint venture arrangement is divided into joint venture and joint venture. If the joint venture

arrangement is not reached by a single entity it shall be classified as joint operation. A separate

subject refers to a subject with a separate identifiable financial structure including a separate legal

entity and a subject without legal entity qualification but recognized by law. A joint venture

arrangement through a separate entity usually classified as a joint venture. Where the rights and

obligations of the party under the joint venture arrangement have changed due to changes in relevant

facts and circumstances the party shall reassess the classification of the joint venture arrangement.2. Accounting for joint operations

As a participant in the joint operation the Company shall recognize the following items related to

the share of interests in the joint operation and conduct accounting treatment in accordance with the

relevant accounting standards for enterprises: recognize the assets or liabilities held separately and

recognize the assets or liabilities held jointly according to the share; Recognize the revenue

generated from the sale of the share of output enjoyed by the joint operation; To recognize the

revenue generated by the sale of the output of the joint operation according to its share; Recognize

expenses incurred separately and expenses incurred in joint operations by share.The Company is a participant without joint control over the joint operation. If the company enjoys

the relevant assets of the joint operation and bears the relevant liabilities of the joint operation it

shall conduct accounting treatment according to the provisions of the joint operation participant;

Otherwise according to the provisions of the relevant enterprise accounting standards for accounting

treatment.

3. Accounting treatment of joint venture

The company is the joint venture party in accordance with the "Accounting Standards for

Enterprises No. 2 - Long-term Equity investment" for the joint venture investment accounting

treatment; The Company is not a joint venture party according to the extent of the impact on the

joint venture accounting treatment.(VIII) Recognition criteria of cash and cash equivalents

Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment.Cash equivalents refer to short-term highly liquid investments that can be readily converted to cash

and that are subject to an insignificant risk of changes in value.(IX) Foreign currency translation

1. Translation of foreign currency business

The Company shall enter the foreign currency transactions in standard currency at the spot rate

equivalent to the date of occurrence of the transaction. The foreign currency monetary items on the

balance sheet date shall be translated at the spot exchange rate on the balance sheet date. The

exchange difference arising from the difference between the spot exchange rate on the current date

and the initial recognition rate or the spot exchange rate on the previous balance sheet date shall beincluded in the current profit and loss except that the exchange difference of special foreign

currency loans conforming to the capitalization conditions shall be capitalized and included into the

cost of related assets during the capitalization period. For foreign currency non-monetary items

measured at historical cost the spot exchange rate on the transaction date shall still be adopted and

the amount of the accounting standard currency shall not be changed. Foreign currency non-

monetary items measured at fair value shall be converted by the spot exchange rate on the date of

fair value determination. The difference between the converted amount of accounting standard

currency and the original amount of accounting standard currency shall be treated as fair value

changes (including exchange rate changes) and recorded into current profit and loss or recognized as

other comprehensive income.

2. Translation of financial statements measured in foreign currency

If the subsidiaries joint ventures and associated enterprises of the Company adopt a different

accounting standard currency from the Company they shall conduct accounting and preparation of

consolidated financial statements after converting their foreign currency financial statements. The

assets and liabilities in the balance sheet shall be translated at the spot exchange rate at the balance

sheet date and the owners' equity items shall be translated at the spot exchange rate at the time of

occurrence except for the "undistributed profit" item. The income and expense items in the income

statement shall be converted at the spot exchange rate on the transaction date. The balance of

translation in foreign currency financial statements resulting from translation is shown as follows in

owners' equity items and other comprehensive income in the balance sheet. Foreign currency cash

flows shall adopt the spot rate on the date of occurrence of cash flows. The impact of exchange rate

changes on cash is shown separately in the statement of cash flows. When disposing of overseas

operations the balance of translation of foreign currency statements related to the overseas

operations shall be transferred into the disposal profit or loss of the current period in full or in

proportion to the disposal of the overseas operations.(X) Financial instruments

1. Classification and reclassification of financial instruments

Financial instruments refer to contracts that form the financial assets of one party and the financial

liabilities or equity instruments of another party.(1) Financial assets

The Company classifies financial assets that meet the following conditions as financial assets

measured at amortized cost: * The Company's business model of managing financial assets is to

collect contract cash flow; * The terms of the contract of the financial asset stipulate that the cash

flow generated on a specified date is only the payment of the principal amount and the interest based

on the outstanding principal amount.The Company classifies the financial assets that meet the following conditions as those measured at

fair value and whose changes are included in other comprehensive income: * The Company's

business model of managing financial assets aims at both collecting contract cash flow and selling

the financial assets; * The terms of the contract of the financial asset stipulate that the cash flow

generated on a specified date is only the payment of the principal amount and the interest based on

the outstanding principal amount.For investments in non-trading equity instruments the Company may upon initial recognition

irrevocably designate them as financial assets measured at fair value and whose changes are included

in other comprehensive income. The designation is made on an individual investment basis and the

underlying investment meets the definition of an equity instrument from the issuer's point of view.In addition to financial assets classified as financial assets measured at amortized cost and financial

assets measured at fair value and whose changes are booked into other comprehensive income the

Company classifies them as financial assets measured at fair value and whose changes are booked

into current profit and loss. In the initial recognition if accounting mismatch can be eliminated or

reduced the Company may irrevocably designate financial assets as financial assets measured at fair

value and whose changes are recorded into current profit and loss.When the Company changes the business model of managing financial assets it will reclassify all

the affected financial assets on the first day of the first reporting period after the change of the

business model and adopt the future applicable method to conduct relevant accounting treatment

from the reclassification date without retroactive adjustment of previously recognized gains losses

(including impairment losses or gains) or interest.

(2) Financial liabilities

Financial liabilities at the initial recognition are classified as: financial liabilities measured at fairvalue and whose changes are booked into current profit and loss; The financial assets transfer does

not meet the conditions for termination of recognition or continues to involve the financial liabilities

formed by the transferred financial assets; Financial liabilities measured at amortized cost. All

financial liabilities are not reclassified.

2. Measurement of financial instruments

The Company's financial instruments are initially recognized as measured at fair value. For financial

assets and financial liabilities measured at fair value and whose changes are booked into current

profit and loss relevant transaction costs are directly booked into current profit and loss; For other

types of financial assets or financial liabilities related transaction costs are included in the initial

recognized amount. For accounts receivable or notes receivable arising from the sale of products or

the provision of services that do not contain or take into account significant financing components

the amount of consideration to which the Company is entitled to collect as expected shall be the

initial recognition amount. Subsequent measurement of financial instruments depends on their

classification.

(1) Financial assets

* Financial assets measured at amortized cost. After the initial recognition such financial assets are

measured by the amortized cost using the effective interest rate method. The gains or losses

generated by financial assets measured at amortized cost and not belonging to any hedging

relationship shall be booked into current profit and loss when recognition is terminated reclassified

amortized according to the effective interest rate method or impairment is recognized.* Financial assets that are measured at fair value and whose changes are booked into current profit

or loss. After the initial recognition such financial assets (except part of the financial assets

belonging to the hedge relationship) shall be measured at the fair value and the resulting gains or

losses (including interest and dividend income) shall be booked into current profit and loss.* Investment in debt instruments that are measured at fair value and whose changes are recorded in

other comprehensive income. After the initial recognition the fair value of such financial assets is

used for subsequent measurement. Interest impairment losses or gains and exchange gains and

losses calculated using the effective interest rate method are included in current profit and loss while

other gains or losses are included in other comprehensive income. Upon termination of recognitionthe accumulated gains or losses previously booked into other comprehensive income shall be

transferred out of other comprehensive income and booked into current profit and loss.

(2) Financial liabilities

* Financial liabilities measured at fair value and whose changes are booked into current profit and

loss. Such financial liabilities include trading financial liabilities (including derivative instruments

belonging to financial liabilities) and financial liabilities designated as measured at fair value and

whose changes are booked into current profit and loss. After the initial recognition the fair value of

such financial liabilities is used for subsequent measurement. Except for the hedge accounting the

gain or loss (including interest expense) generated by the change in the fair value of trading financial

liabilities is booked into current profit and loss. If a financial liability is specified as a financial

liability measured at fair value and its change is included in current profit and loss the change in the

fair value of the financial liability caused by the change of the enterprise's own credit risk shall be

included in other comprehensive income and the change in other fair value shall be included in

current profit and loss. If accounting mismatch in profit and loss will be caused or expanded if the

impact of the change in credit risk of the financial liability is included in other comprehensive

income the Company shall book all gains or losses of the financial liability into current profit and

loss.* Financial liabilities measured at amortized cost. After the initial recognition such financial

liabilities are measured at amortized cost using the effective interest rate method.

3. The Company's method of recognizing the fair value of financial instruments

If there are financial instruments in active markets their fair value shall be determined by quotation

in active markets; If there is no active market for financial instruments use valuation techniques to

determine their fair value. Valuation techniques mainly include market method income method and

cost method. In limited cases if recent information used to determine fair value is insufficient or if

the distribution of possible estimates of fair value is wide and cost represents the best estimate of

fair value within the range the cost may represent its appropriate estimate of fair value within the

range of distribution. The Company uses all information about the investee's performance and

operations available after the initial confirmation date to determine whether the cost represents fair

value.4. Recognition basis and measurement method for transfer of financial assets and financial liabilities

(1) Financial assets

The financial assets of the Company shall be terminated if they meet one of the following conditions:

(1) The contractual right to collect the cash flow of the financial assets shall be terminated; (2) The

financial assets have been transferred and the company has transferred almost all the risks and

rewards of the ownership of the financial assets; (3) The financial assets have been transferred.Although the Company has neither transferred nor retained almost all rewards on the ownership of

the financial assets it has not retained control of the financial assets.Where the Company neither transfers nor retains almost all remuneration on the ownership of the

financial assets and retains control over the financial assets the relevant financial assets shall be

recognized according to the degree of continued involvement in the transferred financial assets and

the relevant liabilities shall be recognized accordingly.If the transfer of financial assets meets the conditions for termination of recognition as a whole the

difference between the following two amounts shall be recorded into the current profit and loss: (1)

the book value of the transferred financial assets on the date of termination of recognition; (2) The

sum of the consideration received due to the transfer of financial assets and the amount

corresponding to the part of termination of recognition in the accumulative amount of the change in

fair value directly included in other comprehensive income (the financial assets involved in the

transfer are financial assets classified as measured at fair value and whose change is included in

other comprehensive income).If the partial transfer of financial assets meets the conditions for termination of recognition the book

value of the whole transferred financial assets shall be apportioned between the terminated and

unterminated part according to their relative fair value on the transfer date and then the difference of

the following two amounts shall be recorded into current profit and loss: (1) The book value of the

terminated recognition part on the termination of recognition date; (2) The sum of the consideration

received for the part of termination recognition and the amount corresponding to the part of

termination recognition in the accumulative amount of changes in fair value originally included in

other comprehensive income (financial assets involved in transfer are financial assets classified as

measured at fair value and whose changes are included in other comprehensive income).(2) Financial liabilities

If the current obligation of the financial liability (or part thereof) has been discharged the Company

shall terminate the recognition of the financial liability.If the recognition of financial liabilities (or part thereof) is terminated the Company shall book the

difference between the book value and the consideration paid into the current profit and loss.(XI) Methods for determining expected credit losses and accounting treatment

1. Methods for determining expected credit losses

Based on expected credit losses the Company conducts impairment accounting treatment and

recognizes loss reserves for financial assets (including receivables) measured at amortized cost

financial assets classified as measured at fair value and whose changes are included in other

comprehensive income (including receivables financing) lease receivables.On each balance sheet date the company evaluates whether the credit risk of relevant financial

instruments has significantly increased since the initial recognition. The process of credit impairment

of financial instruments is divided into three stages and different accounting treatment methods are

adopted for the impairment of financial instruments at different stages: (1) In the first stage if the

credit risk of the financial instrument does not increase significantly after the initial recognition the

Company shall calculate the loss reserve based on the expected credit loss of the financial instrument

in the next 12 months and calculate the interest income based on its book balance (i.e. without

deducting the impairment reserve) and the actual interest rate; (2) In the second stage if the credit

risk of the financial instrument has increased significantly since the initial recognition but no credit

impairment has occurred the Company shall measure the loss reserve according to the expected

credit loss during the entire duration of the financial instrument and calculate the interest income

according to its book balance and actual interest rate; (3) In the third stage if credit impairment

occurs after the initial recognition the Company shall measure the loss reserve according to the

expected credit loss during the entire duration of the financial instrument and calculate the interest

income according to its amortized cost (book balance minus impairment reserve already drawn) and

the actual interest rate.

(1) Lower credit risk financial instruments measure loss reserve methodFor financial instruments with lower credit risk at the balance sheet date the Company may directly

assume that the credit risk of such instruments has not increased significantly since the initial

recognition without comparing them with the credit risk at the time of their initial recognition.If the default risk of the financial instrument is low the debtor has a strong ability to perform its

contractual cash flow obligations in the short term and even if there are adverse changes in the

economic situation and business environment in a longer period of time it may not necessarily

reduce the borrower's ability to perform its contractual cash flow obligations the financial

instrument is regarded as having a low credit risk.

(2) How to measure loss reserve for receivables and lease receivables

* Receivables that do not contain significant financing components. For receivables that are formed

from transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue and

do not have a significant financing component the Company adopts a simplified approach that

always measures the loss reserve against expected credit losses over the entire duration.Depending on the nature of the financial instrument the Company assesses whether credit risk is

significantly increased on the basis of individual financial assets or a portfolio of financial assets.The Company divides notes receivable and accounts receivable into several combinations according

to credit risk characteristics and calculates expected credit losses on the basis of the combination.The basis for determining the combination is as follows:

Accounts receivable Portfolio 1: combination of related parties within the scope of consolidation

Accounts receivable Portfolio 2: aging portfolio

Notes Receivable Portfolio 1: Banker's Acceptance receivable

Notes Receivable Portfolio 2: Commercial Acceptance receivable

For the accounts receivable divided into portfolios the company by referring to the historical credit

loss experience combined with the current situation and the forecast of future economic conditions

prepares the comparison table of the expected credit loss rate between the age of accounts receivable

and the entire duration of accounts receivable to calculate the expected credit loss. For notes

receivable divided into portfolios the Company calculates expected credit losses based on default

risk exposure and expected credit loss rate over the entire duration by referring to historical credit

loss experience combining current situation and forecast of future economic conditions.Accounts receivable -- a comparison of the aging of an aging portfolio with the expected credit loss

rate over its entire life

Aging of account Expected credit loss rate of accounts receivable (%)

Within 1 Year 1.00

1-2 Years 5.00

2-3 Years 10.00

3-4 Years 30.00

4-5 Years 50.00

More than 5 Years 100.00

* Receivables and lease receivables with a significant financing component.For receivables with a significant financing component and for lease receivables regulated by

Accounting Standard for Business Enterprises No. 21 - Leases the Company measures the loss

reserve in accordance with the general method known as the "three-stage" model.

(3) Other methods of measuring loss reserves for financial assets

For financial assets other than the above such as debt investments other debt investments other

receivables long-term receivables other than lease receivables the Company measures the loss

reserve in accordance with the general method namely the "three-stage" model.The Company takes the following factors into account when assessing whether credit risk is

significantly increased in the event of credit impairment of the measurement financial instruments:

The Company divides other receivables into several combinations according to the nature of the

amounts and calculates the expected credit loss on the basis of the combination. The basis for

determining the combination is as follows:

Other receivables Portfolio 1: Combination of related parties within the scope of consolidation

Other receivables Portfolio 2: Financing margin portfolio

Other receivables Portfolio 3: Export tax rebates receivable portfolio

2. Accounting for expected credit losses

In order to reflect the changes of the credit risks of financial instruments since the initial recognition

the Company remeasures the expected credit losses on each balance sheet date and the resulting

increase in the loss reserve or reversal amount shall be recorded into the current profit and loss as

impairment losses or gains. Write off the carrying value of the financial asset listed in the balancesheet or into the estimated liabilities or into other comprehensive income (debt investment measured

at fair value and its changes into other comprehensive income).(XII) Inventories

1. Classification of inventory

Inventory refers to finished products or commodities held by the Company in daily activities for sale

products in the process of production materials and materials consumed in the process of production

or provision of services etc. It mainly includes raw materials turnover materials (packaging low-

value consumable etc.) commissioned processing materials products in process homemade semi-

finished products finished products (stock goods) etc.

2. Valuation method for issuing inventory

When the inventory is dispatched the monthly weighted average method is adopted to determine the

actual cost of delivery.

3. Method of drawing reserve for inventory decline

On the balance sheet date the inventory shall be measured according to the lower of the cost and net

realizable value and the inventory decline reserve shall be calculated according to the single

inventory item. However for the inventory with a large quantity and a low unit price the inventory

decline reserve shall be calculated according to the inventory category.On the balance sheet date the inventory shall be measured by the lower of cost and net realizable

value and the inventory depreciation reserve shall be calculated according to the difference between

the cost of inventory class and net realizable value. The net realizable value of the inventory directly

used for sale shall be determined by the estimated selling price of the inventory less estimated selling

expenses and related taxes in the normal course of production and operation; For inventories that

need to be processed the net realizable value shall be determined by the estimated selling price of

finished products produced in the normal course of production and operation after deducting the

estimated cost estimated selling expenses and related taxes to be incurred upon completion; On the

balance sheet date if a part of the same inventory has a contract price but the other part does not

have a contract price its net realizable value shall be determined respectively and the corresponding

cost shall be compared with it to determine the amount to be withdrawn or transferred back from the

reserve for inventory declines respectively.4. Inventory system

The company's inventory system is the perpetual inventory system.

5. Amortization method of low-value consumable products and packaging

Low - value consumable goods and packaging are amortized by one - pass method.(XIII) Contract assets and contract liabilities

1. Contract assets

The Company presents as a contractual asset the right to receive consideration for goods or services

transferred to the Customer subject to factors other than the passage of time. Provision for

impairment of contracted assets shall be made according to the expected credit loss method of

financial instruments. For contract assets that do not contain a material financing component the

Company adopts a simplified method to measure loss provisions. For contract assets that contain

significant financing components the Company measures loss provisions in accordance with the

general method.In case of impairment loss on contract assets "asset impairment loss" shall be debited according to

the amount to be written down and the impairment provision for contract assets shall be credited;

The reverse entry is made when the asset impairment provision has been transferred back.

2. Contract liabilities

Obligations of the Company to transfer goods or services to the Customer for consideration received

or receivable from the customer shall be listed as contractual liabilities.The Company presents contractual assets and contractual liabilities under the same contract on a net

basis.(XIV) Long-term equity investments

1. Initial investment cost determination

For the long-term equity investment obtained from the enterprise merger if the enterprise merger is

under the same control the initial investment cost of the long-term equity investment shall be taken

as the share of the owner's equity of the merged party in the book value of the final controlling

party's consolidated financial statements on the merger date; In the case of enterprise merger not

under the same control the initial investment cost of long-term equity investment shall be taken as

the merger cost determined on the purchase date; For long-term equity investment obtained by cashpayment the initial investment cost is the actual purchase price paid; For the long-term equity

investment obtained by issuing equity securities the initial investment cost shall be the fair value of

the equity securities issued; The initial cost of long-term equity investment obtained through debt

restructuring shall be determined in accordance with the relevant provisions of Accounting

Standards for Enterprises “CASBE 12 – Debt Restructuring”; For long-term equity investment

obtained by exchange of non-monetary assets the initial investment cost shall be determined inaccordance with relevant provisions of Accounting Standards for Business Enterprises “CASBE 7 –Non-cash Assets Exchange”.

2. Subsequent measurement and recognition method of profit or loss

For long-term equity investments with control relationship it is accounted for with cost method; for

long-term equity investments with joint control or significant influence relationship it is accounted

for with equity method. The company for equity investment consortium one part of through risk

investment institutions mutual funds trust companies or similar subject including cast the insurance

fund indirect holding whether the above subject has a significant influence on this part of theinvestment the company in accordance with the accounting standards for enterprises “CASBE 22 –Financial Instruments: Recognition and Measurement” and the rest of the equity method accounting.

3. Determine the basis of joint control and significant influence on the invested entity

Of the invested entity has joint control refers to an arrangement returns have a significant impact on

activity must go through the participants agreed to share control decisions including the sale and

purchase of goods or services financial assets management purchase and disposal of the assets

research and development activities and financing activities etc.; Having a significant influence on

the invested entity refers to having a significant influence when holding more than 20% to 50% of

the voting capital of the invested entity. Or although less than 20% has a significant impact if one

of the following conditions is met: representation on the board of directors or a similar authority of

the invested entity; To participate in the policy making process of the investee; Dispatching

management personnel to the invested units; The invested entity relies on the technology or technical

data of the investment company; Having important transactions with the invested units.(XV) Investment property

The Company's investment property categories including leased land use rights leased buildingsland use rights held and ready to be transferred after appreciation. The initial measurement of

investment property is carried out according to the cost and the subsequent measurement is carried

out according to the cost model.The average life method is adopted for the depreciation of leased buildings in the Company's

investment property and the specific accounting policy is the same as that of fixed assets. The land-

use right leased in investment property and the land-use right held and transferred after appreciation

shall be amortized by the straight-line method. The specific accounting policies are the same as those

for intangible assets.(XVI) Fixed assets

1. Recognition principles of fixed assets

Fixed assets are tangible assets held for use in the production of goods or rendering of services for

rental to others or for administrative purposes and expected to be used during more than one

accounting year. Fixed assets are recognized if and only if it is probable that future economic

benefits associated with the assets will flow to the Company and the cost of the assets can be

measured reliably.

2.Depreciation method of different categories of fixed assets

The company's fixed assets are mainly divided into: buildings and structures machinery electronic

equipment transport facilities etc. The depreciation method adopts the average life method. The

service life and estimated net salvage value of fixed assets shall be determined according to the

nature and usage of various types of fixed assets. At the end of the year the service life estimated

net salvage value and depreciation method of the fixed assets shall be rechecked. If there is any

difference from the original estimate corresponding adjustment shall be made. In addition to the

fixed assets that have been fully depreciated but are still in use and the land that is separately priced

and recorded the Company will calculate and depreciate all the fixed assets.Categories Useful life (years) Estimated residual value Annual depreciation rateproportion (%) (%)

Buildings and structures 15-35 3.00 2.77-6.47

Machinery 10-15 3.00 6.47-9.70

Transport facilities 6-8 3.00 12.13-16.17

Electronic equipment 4-11 3.00 8.82-24.25Categories Useful life (years) Estimated residual value Annual depreciation rateproportion (%) (%)

Other equipment 4-11 3.00 8.82-24.25

(XVII) Construction in progress

1. Construction in progress is recognized if and only if it is probable that future economic benefits

associated with the item will flow to the Company and the cost of the item can be measured reliably.Construction in progress is measured at the actual cost incurred to reach its designed usable

conditions.

2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the

designed usable conditions. When the auditing of the construction in progress was not finished while

reaching the designed usable conditions it is transferred to fixed assets using estimated value first

and then adjusted accordingly when the actual cost is settled but the accumulated depreciation is not

to be adjusted retrospectively.(XVIII) Borrowing costs

1. Recognition principle of capitalization of borrowing costs

Borrowing costs incurred by the Company that can be directly attributed to the purchase

construction or production of assets eligible for capitalization shall be capitalized and included in the

cost of relevant assets; Other borrowing costs shall be recognized as expenses according to the

amount incurred when incurred and recorded into current profits and losses. The assets that meet the

capitalization conditions refer to the fixed assets investment real estate inventory and other assets

that need to go through a fairly long period of purchase construction or production activities to

reach the predetermined state of being usable or saleable.

2. Calculation method of capitalization amount

Capitalization period refers to the period from the beginning of capitalization of borrowing costs to

the end of capitalization. Periods of suspension of capitalization of borrowing costs are not included.Capitalization of borrowing costs shall be suspended if abnormal interruption occurs in the purchase

construction or production process and the interruption lasts for more than 3 consecutive months.The borrowing of a special loan shall be determined according to the amount of the interest expense

actually incurred in the current period of the special loan minus the interest income obtained from

depositing the unused loan funds in the bank or the investment income obtained from temporaryinvestment; Occupied general borrowings shall be calculated and determined according to the

weighted average of the accumulated asset expenditure exceeding the portion of special borrowings

multiplied by the capitalization rate of occupied general borrowings and the capitalization rate shall

be the weighted average interest rate of general borrowings; If there is a discount or premium on the

loan the amount of discount or premium to be amortized in each accounting period shall be

determined according to the effective interest rate method and the amount of interest for each period

shall be adjusted.The effective interest rate method is a method to calculate the amortized discount or premium or

interest expense of a loan according to the effective interest rate. The effective interest rate is the

future cash flow of the loan during its expected life discounted as the interest rate used in the current

book value of the loan.(XIX) Intangible assets

1. The valuation method of intangible assets

The Company's intangible assets are initially measured at cost. The purchased intangible assets shall

be regarded as the actual cost according to the actual price paid and related expenses. The actual cost

of intangible assets invested by investors shall be determined according to the value stipulated in the

investment contract or agreement but if the value stipulated in the contract or agreement is unfair

the actual cost shall be determined according to the fair value. For self-developed intangible assets

the cost shall be the total amount of expenses incurred before reaching the intended use.The Company's subsequent measurement methods for intangible assets are as follows: Intangible

assets with limited service life shall be amortized by the straight-line method and the service life

and amortization method of intangible assets shall be rechecked at the end of the year. If there is any

difference from the original estimate corresponding adjustment shall be made; Intangible assets with

uncertain service life are not amortized but at the end of the year the service life shall be rechecked.When there is conclusive evidence that the service life is limited the service life shall be estimated

and amortized according to the straight-line method.Intangible assets with limited useful life are amortized as follows:

Items Amortization period (years)

Software 3-10Items Amortization period (years)

patent right and non-patented technology 5-10

land use right 40-50

2. The judgment basis of uncertain service life

The Company will not be able to foresee the period of time that the asset will bring economic

benefits to the Company or the intangible assets with uncertain service life are identified as

intangible assets with uncertain service life. The judgment basis of uncertain service life is: it comes

from contractual rights or other legal rights but the contract or legal provisions do not specify the

service life; Based on the industry situation or relevant experts' arguments it is still impossible to

judge the period when intangible assets bring economic benefits to the company.At the end of each year the service life of intangible assets with uncertain service life is reviewed

mainly in a bottom-up way. The departments related to the use of intangible assets conduct basic

review to evaluate whether the judgment basis of uncertain service life has changed.

3. Specific criteria for research and development stages of internal research and development

projects as well as specific criteria for development stage expenditures to meet the capitalization

conditions

Expenditure in the research phase of internal research and development projects shall be recorded

into current profits and losses when incurred; The expenditure in the development stage shall be

transferred to the accounting of intangible assets if it meets the conditions of being recognized as

intangible assets.Specific criteria for dividing the research phase and development phase of an internal research and

development project: (1) it is technically feasible to complete the intangible asset so that it can be

used or sold; (2) it has the intention to complete the intangible asset and use or sell it; (3) The way in

which intangible assets generate economic benefits including being able to prove that there is a

market for the products produced by using the intangible assets or that there is a market for the

intangible assets themselves and that the intangible assets will be used internally being able to

prove their usefulness; (4) it has the support of sufficient technology financial resources and other

resources to complete the development of the intangible asset and has the ability to use or sell the

intangible asset; (5) The expenditure attributable to the development stage of the intangible asset canbe measured reliably.(XX) Impairment of part of long-term assets

If long-term equity investment investment real estate measured by the cost model fixed assets

intangible assets of construction in progress and other long-term assets show signs of impairment on

the balance sheet date the impairment test shall be conducted. If the result of the impairment test

shows that the recoverable amount of the asset is lower than its carrying value the impairment

reserve shall be calculated and booked into the impairment loss according to the difference.The recoverable amount is the higher between the net fair value of the asset less the disposal charge

and the present value of the expected future cash flows of the asset. If it is difficult to estimate the

recoverable amount of a single asset the recoverable amount of the asset group shall be determined

based on the asset group to which the asset belongs. An asset group is the smallest set of assets that

can independently generate cash inflows.Goodwill shown separately in the financial statements regardless of whether there is evidence of

impairment shall be tested for impairment at least annually. In the impairment test the carrying

value of goodwill is apportion to the group of assets or combination of asset groups expected to

benefit from the synergies of the business combination. If the test results show that the recoverable

amount of the asset group or the asset group combination containing the apportion of goodwill is

lower than its carrying value the corresponding impairment loss shall be recognized. The amount of

impairment loss shall first offset the book value of goodwill apportion to the asset group or asset

group combination and then offset the book value of other assets in proportion to the proportion of

the book value of assets other than goodwill in the asset group or asset group combination.Once the above-mentioned asset impairment loss is recognized the part whose value can be

recovered shall not be transferred back in the following period.(XXI) Long-term prepayments

Long-term prepayments are expenses that have been recognized but with amortization period over

one year (excluding one year). They are recorded with actual cost and evenly amortized within the

beneficiary period or stipulated period. If items of long-term prepayments fail to be beneficial to the

following accounting periods residual values of such items are included in profit or loss.(XXII) Employee benefitsEmployee benefits refers to various forms of remuneration or compensation provided by the

Company for obtaining services provided by employees or for terminating labor relations. Employee

benefits include short-term employee benefits post-employment benefits termination benefits and

other long-term employee benefits.

1. Short-term employee benefits

During the accounting period when employees provide services for the company the actual short-

term compensation is recognized as liabilities and booked into the current profits and losses except

for those required or allowed to be booked into the cost of assets by the accounting standards for

enterprises. The employee welfare expense incurred by the Company shall be included in the current

profit and loss or the cost of relevant assets according to the actual amount when it is actually

incurred. If the employee welfare fee is non-monetary welfare it shall be measured at fair value. The

company for the medical treatment insurance premium of worker pay inductrial injury insurance

birth insurance premium of social insurance premiums and housing accumulation fund and

according to the rules extraction of the trade union and employee education funds and provide

services in the workers of the accounting period according to the provisions stipulated in the basic

and provision ratio calculate and determine the corresponding compensation amount and confirm

corresponding liabilities Include current profit or loss or related asset cost.

2. Post-employment benefits

During the accounting period when employees provide services the payable amount calculated

according to the set depository plan shall be recognized as liabilities and recorded into the current

profit and loss or the cost of relevant assets. According to the formula determined by the expected

cumulative benefit unit method the welfare obligation arising from the set benefit plan shall be

attributed to the period of service provided by the employee and shall be included in the current

profit and loss or the cost of relevant assets.

3. Termination benefits

Termination benefits provided to employees are recognized as an employee benefit liability for

termination benefits with a corresponding charge to profit or loss at the earlier of the following

dates: a. when the Company cannot unilaterally withdraw the offer of termination benefits because

of an employment termination plan or a curtailment proposal; or b. when the Company recognizescost or expenses related to a restructuring that involves the payment of termination benefits.

4. Other long-term employee benefits

Other long-term employee benefits provided by the company to the employees that meet the

conditions for setting up an escrow plan shall be dealt with in accordance with the provisions on

setting up an escrow plan; In addition identify and measure other long-term employee benefit net

liabilities or net assets according to the relevant provisions of the defined benefit plan.(XXIII) Provisions

An obligation related to a contingent event is recognized as a projected liability when it is a current

obligation undertaken by the Company and the performance of the obligation is likely to result in an

outflow of economic benefits and the amount of the obligation can be measured reliably. The

Company shall make initial measurement according to the best estimate of the expenditure required

to fulfill the relevant current obligations. If there exists a continuous range of expenditure required

and various outcomes within the range are equally likely to occur the best estimate shall be

determined as the intermediate value within the range; If more than one project is involved calculate

the best estimate based on the various possible outcomes and the associated probabilities.On the balance sheet date the book value of the projected liabilities shall be reviewed. If there is

conclusive evidence that the book value does not truly reflect the current best estimate the book

value shall be adjusted according to the current best estimate.(XXIV) Revenue

The Company has fulfilled its performance obligation under the contract that is when the customer

obtains control of the relevant commodity or service it recognizes revenue according to the

transaction price apportioned to the performance obligation. To acquire the control right of relevant

goods refers to to be able to dominate the use of the goods and obtain almost all the economic

benefits from them. Performance obligation refers to the commitment of the company in the contract

to transfer clearly distinguishable commodities to the customer. Transaction Price represents the

amount of consideration that the Company expects to be entitled to collect as a result of the transfer

of goods to the Customer excluding monies received on behalf of third parties and monies that the

Company expects to refund to the Customer.Whether the performance obligation is to be performed within a certain period of time or at a certain

point depends on the terms of the contract and relevant legal provisions. If the performance

obligation is performed within a certain period of time the Company recognizes revenue according

to the progress of performance. Otherwise the Company recognizes revenue at a point at which the

customer acquires control of the relevant assets.If one of the following conditions is met the performance obligation shall be performed within a

certain period of time; otherwise the performance obligation shall be performed at a certain point: (1)

The customer obtains and consumes the economic benefits arising from the Company's performance

at the same time as the Company's performance; (2) The customer can control the goods under

construction during the company's performance; (3) The commodities produced by the Company

during the performance of the Contract have irreplaceable uses and the Company has the right to

collect payment for the accumulated performance completed so far throughout the contract period.For performance obligations performed within a certain period of time the Company recognizes

revenue in accordance with the progress of performance during that period. If the performance

progress cannot be reasonably determined and the incurred costs are expected to be compensated

the revenue shall be recognized according to the amount of incurred costs until the performance

progress can be reasonably determined. For performance obligations performed at a certain point

revenue is recognized at the point when the customer acquires control of the relevant goods or

services. In determining whether the customer has acquired control of the goods the Company

considers the following indications: (1) the Company has a current collection right in respect of the

goods i.e. the customer has a current payment obligation in respect of the goods; (2) the Company

has transferred the legal title of the goods to the Customer that is the customer has the legal title of

the goods; (3) The Company has physically transferred the commodity to the customer that is the

customer has physically possessed the commodity; (4) The Company has transferred the major risks

and rewards in the ownership of the commodities to the Customer that is the customer has obtained

the major risks and rewards in the ownership of the commodities; (5) The customer has accepted the

goods; (6) Other signs indicating that the customer has acquired control of the goods.Specific methods of revenue recognitionThe Company mainly sells video conferencing products integrated cabling products intelligent

electrical products communication basic products and other products. The above product sales

business of the company is a performance obligation performed at a certain point and the product

revenue recognition shall meet the following conditions: The company has delivered the products to

the purchaser according to the contract and accepted them by the purchaser and the amount of sales

revenue of the products has been determined the payment for goods has been recovered or the

receipt of payment has been obtained and the relevant economic benefits are likely to flow in and

the costs related to the products can be measured reliably.(XXV) Contract cost

The contract cost of the Company includes the incremental cost incurred to obtain the contract and

the contract performance cost. Incremental costs incurred to acquire a contract (" contract acquisition

costs ") are costs that would not have been incurred otherwise. If the cost is expected to be recovered

the Company will recognize it as a contract acquisition cost as an asset.The cost incurred by the Company to perform the contract which does not fall within the scope of

accounting standards for enterprises such as inventory and meets the following conditions at the

same time shall be recognized as an asset as the contract performance cost:

1. The costs are directly related to a current or expected contract and include direct labor direct

materials manufacturing expenses (or similar expenses) costs expressly borne by the User and other

costs incurred solely as a result of the contract;

2. The cost increases the Company's resources for future performance obligations;

3. This cost is expected to be recovered.

The Company will recognize the contract performance costs as assets the amortization period of the

initial recognition does not exceed one year or a normal business cycle in the balance sheet into the

"inventory" item; If the amortization period is more than one year or one normal operating cycle at

the time of initial recognition "other non-current assets" will be included in the balance sheet.The Company shall record the acquired costs of contracts recognized as assets into the "other current

assets" item in the balance sheet if the amortization period at the initial recognition does not exceed

one year or one normal operating cycle. If the amortization period is more than one year or onenormal operating cycle at the time of initial recognition "other non-current assets" will be included

in the balance sheet.The Company amortizes the assets recognized for contract acquisition cost and contract performance

cost (hereinafter referred to as "assets related to contract cost") on the same basis as the commodity

revenue recognized for the assets and records them into the current profit and loss. If the

amortization period of the asset formed by the incremental cost of acquiring the contract does not

exceed one year it shall be included in the current profit and loss at the time of occurrence.If the carrying value of the asset related to the contract cost is higher than the difference between the

following two items the Company will calculate and withdraw the excess part of the impairment

reserve and recognize it as the asset impairment loss:

1. The remaining consideration expected to be obtained from the transfer of commodities related to

the asset;

2. Estimate the cost to be incurred for the transfer of the related goods.

If the difference between the foregoing two items is higher than the carrying value of the asset due to

the change of the factors of impairment in the previous period it shall revert to the original provision

for asset impairment and be included in the current profit and loss provided that the carrying value

of the asset after the reversal shall not exceed the carrying value of the asset on the date of reversal

assuming no provision for impairment.(XXVI) Government grants

1. Types of government subsidies and accounting treatment

Government subsidy refers to the monetary assets or non-monetary assets that the Company obtains

free of charge from the government (but does not include the capital invested by the government as

the owner). If the government subsidy is a monetary asset it shall be measured according to the

amount received or receivable. Where government subsidies are non-monetary assets they shall be

measured at fair value; If the fair value cannot be obtained reliably it shall be measured according to

the nominal amount.Government subsidies related to daily activities shall be included in other income according to the

economic business essence. Government subsidies unrelated to daily activities shall be included in

non-operating income.Government documents clearly stipulate that government subsidies for the purchase and construction

of long-term assets or the formation of long-term assets by other means shall be recognized as

government subsidies related to assets. If the government documents do not specify the object of

subsidy and long-term assets can be formed the part of government subsidy corresponding to the

value of the asset shall be regarded as the government subsidy related to the asset and the rest shall

be regarded as the government subsidy related to the income. It is difficult to distinguish between

government subsidies as a whole as government subsidies related to benefits. Government subsidies

related to assets are recognized as deferred income. The amount recognized as deferred income shall

be recorded into current profits and losses in a reasonable and systematic manner during the useful

life of the relevant asset.Government subsidies other than those related to assets shall be recognized as government subsidies

related to earnings. If the government subsidies related to earnings are used to compensate the

relevant expenses or losses of the enterprise in the subsequent period they shall be recognized as

deferred earnings and recorded into the current profit and loss during the period when the relevant

expenses are recognized. If it is used to compensate the relevant expenses or losses already incurred

by the enterprise it shall be directly recorded into the current profit and loss.If the company obtains a policy preferential loan discount interest and the finance allocates the

discount interest funds to the lending bank and the lending bank provides the loan to the Company

at the policy preferential interest rate the actual amount of the loan is taken as the recorded value of

the loan and the relevant borrowing costs are calculated according to the loan principal and the

policy preferential interest rate; If the finance directly appropriates the discount interest funds to the

Company the Company will offset the corresponding discount interest against the relevant

borrowing costs.

2. Confirmation of government subsidies

Government grants are recognized when the conditions attached to government grants are met and

can be received. The government subsidy measured according to the amount receivable shall be

confirmed at the end of the period when there is solid evidence that it can meet the relevant

conditions stipulated in the financial support policy and is expected to receive the financial support

funds. Government subsidies other than those measured according to the amount receivable shall berecognized when the amount of subsidies is actually received.(XXVII) Deferred income tax assets and liabilities

1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference

between the carrying amount and tax base of assets and liabilities (and the difference of the carrying

amount and tax base of items not recognized as assets and liabilities but with their tax base being

able to be determined according to tax laws) and in accordance with the tax rate applicable to the

period during which the assets are expected to be recovered or the liabilities are expected to be

settled.

2. A deferred tax asset is recognized to the extent of the amount of the taxable income which it is

most likely to obtain and which can be deducted from the deductible temporary difference. At the

balance sheet date if there is any exact evidence that it is probable that future taxable income will be

available against which deductible temporary differences can be utilized the deferred tax assets

unrecognized in prior periods are recognized.

3. Recognize deferred tax liabilities for taxable temporary differences related to investments in

subsidiaries and associates unless the Company has control over the timing of the reversal of the

temporary differences and it is likely that the reversal will not occur in the foreseeable future. For

deductible temporary differences related to investments in subsidiaries and associates deferred tax

assets are recognized when such temporary differences are likely to be reversed in the foreseeable

future and the amount of taxable income used to offset the deductible temporary differences is likely

to be obtained in the future.(XXVIII) Leases

1. Accounting treatment of leased assets

On the commencement date of the lease term the Company recognizes the right to use assets and

lease liabilities for leases other than short-term leases and leases of low-value assets and recognizes

depreciation expense and interest expense respectively during the lease term.The Company uses the straight-line method for each period of the lease term to charge lease

payments for short-term leases and leases for low-value assets to current expenses.

（1）Right-of-use asset

The right-of-use asset is initially measured at cost which includes: 1) the initial measurementamount of the lease liability; 2) the lease payments made on or before the start date of the lease term

if there is a lease incentive deduct the amount of the lease incentive already enjoyed ; 3) Initial

direct costs incurred by the lessee; 4) The lessee is expected to incur costs to dismantle and remove

the leased asset restore the site where the leased asset is located or restore the leased asset to the

state agreed upon in the lease terms

The company depreciates right-of-use assets on a straight-line basis. If it can be reasonably

determined that the ownership of the leased asset will be obtained at the expiration of the lease term

the company shall accrue depreciation over the remaining useful life of the leased asset. If it cannot

be reasonably determined that the ownership of the leased asset can be obtained when the lease term

expires the company shall accrue depreciation within the shorter of the lease term and the remaining

useful life of the leased asset.In accordance with the Accounting Standards for Enterprises “ CASBE 8 - Asset Impairment” the

company determines whether the assets used for use have been impaired and carries out accounting

treatment.

（2）Lease liability

The lease liability is initially measured at the present value of the outstanding lease payments on the

commencement date of the lease term. The lease payment amount includes: 1) the fixed payment

amount (including the substantial fixed payment amount). If there is a lease incentive the lease

incentive related amount shall be deducted; 2) variable lease payments depending on the index or

ratio; 3) the amount expected to be paid according to the security residual value provided by the

lessee; 4) the exercise price of the purchase option the premise is that the lessee is reasonable to

determine the exercise of the option; 5) Payment for exercising the option to terminate the lease

provided that the lease term reflects that the lessee will exercise the option to terminate the lease;

The Company uses the lease embedded interest rate as the discount rate; If it is impossible to

reasonably determine the interest rate embedded in the lease the incremental borrowing rate of the

Company shall be used as the discount rate. The Company calculates the interest expense of the

lease liability in each period of the lease term at a fixed periodic interest rate and records it as a

financial expense. The cyclical rate refers to the discount rate or the revised discount rate adopted by

the Company.Variable lease payments that are not included in the measurement of lease liabilities are recorded in

current profit and loss when they are actually incurred.If the Company changes the evaluation result of the option to renew the lease terminate the lease or

purchase the lease it will re-measure the lease liability according to the present value calculated by

the changed lease payment amount and the revised discount rate and adjust the book value of the

right asset accordingly. In the event of a change in the actual lease payment the estimated payable

amount of the guarantee residual or the variable lease payment depending on the index or ratio the

lease liability shall be re-measured according to the present value calculated by the changed lease

payment and the original discount rate and the carrying value of the right asset shall be adjusted

accordingly.

2. Accounting treatment of leased assets

（1）Operating lease accounting treatment

In each period of the lease term the Company adopts the straight-line method to recognize the lease

receipts from the operating leases as rental income. The Company capitalizes the initial direct

expenses incurred in connection with the operating lease and stages them into current earnings

during the lease term on the same basis of recognition as rental income.

（2）Accounting treatment of finance lease

On the lease commencement date the Company recognizes the difference between the sum of the

financial lease receivable the unguaranteed residual value and its present value as unrealized

financing income and recognizes it as lease income in each period in which the rent is received in

the future. The initial direct expenses incurred by the Company in connection with the leasing

transaction are included in the initial recorded value of the finance lease receivable.(XXIX) Explanation of changes in major accounting policies and accounting estimates

Since the first implementation of Interpretation of Accounting Standards No. 15 in 2022 the

Company has not involved the adjustment of the financial statements at the beginning of the first

implementation year.IV. Taxes

(I) Main taxes and tax rates

Taxes Tax bases Tax rates

The output tax shall be calculated on the basis of the sales of goods and

Value-added tax taxable service income calculated in accordance with the provisions of the 13%、6%、5%、

(VAT) tax law. After deducting the input tax allowed to be deducted in the current 3%

period the balance shall be the VAT payable.For housing property levied on the basis of price housing property tax is

Housing property levied at the rate of 1.2% of the balance after deducting 30% of the cost;

tax for housing property levied on the basis of rent housing property tax is 1.2%、12%

levied at the rate of 12% of rent revenue.Urban

maintenance and Turnover tax payable 7%

construction tax

Education

surcharge Turnover tax payable 3%

Local education

surcharge Turnover tax payable 2%

Enterprise

income tax Taxable income 15%、25%

Taxpayers Income tax rate

The Company 25%

Nanjing Putian Telege Intelligent Building Co.Ltd 15%

Nanjing Putian Datang Information Electronic Co.Ltd. 15%

Taxpayers other than the above-mentioned 25%

(II) Tax preferential policies

1. Nanjing Putian Telege Intelligent Building Co. Ltd obtained high-tech enterprise certificate in

November 2021 valid for 3 years. From 2021 to 2023 the enterprise income tax shall be paid at the

reduced tax rate of 15%.

2. The subsidiary Nanjing Putian Datang Information Electronic Co. Ltd. obtained high-tech

enterprise certificate in November 2021 valid for 3 years. From 2021 to 2023 the enterprise

income tax shall be paid at the reduced tax rate of 15%.

3. The subsidiaries Nanjing Putian Datang Information Electronic Co. Ltd. awere certified as

software enterprises and some of the software products produced by Nanjing South

Telecommunications Company Limited and Nanjing Putian Network Co. Ltd. are entitled to enjoy

the preferential tax policy of VAT refund upon collection in accordance with the provisions of Cai

Shui [2011] No.100.V. Notes to items of consolidated financial statements

1. Cash and bank balances

Items Closing balance Opening balance

Cash on hand 343.39

Cash in bank 111078777.09 140310024.05

Deposit money with finance company 53098903.02 24074373.95

Other cash and bank balances 14113164.10 9479083.96

Total 178290844.21 173863825.35

Details of other cash and bank balances

Items Closing balance Opening balance

Deposit for L/G 9744312.73 6779083.96

Frozen funds 4368851.37 2700000.00

Total 14113164.10 9479083.96

Note: Other cash and bank balances are restricted funds.

2. Notes receivable

(1) Categories

Items Closing balance Opening balance

Bank acceptance 2222820.00

Trade acceptance 24728859.51 26807458.99

Less: Provision for bad debts 24728859.51 29030278.99

Total 23492416.53 27689906.04

（2）Notes receivable that have been endorsed or discounted at the end of the period and are not yet

due on the balance sheet date

The confirmation amount shall The confirmation amount

Items be terminated at the end of the has not been terminated at

period the end of the period

Bank acceptance 28234158.30

Trade acceptance 17640802.92

Total 45874961.22(3) Provision for bad debts of notes receivable

Closing balance

Book balance Provision for bad debts

Categories

Provision Carrying amount

Amount % to total Amount proportion

(%)

Note receivable with bad debt

provision accrued on portfolio 24728859.51 100.00 1236442.98 5.00 23492416.53

Portfolio 1: trade acceptance bill 24728859.51 100.00 1236442.98 5.00 23492416.53

Total 24728859.51 —— 1236442.98 5.00 23492416.53

Opening balance

Categories Book balance Provision for bad debts

Carrying amount

Amount % to total Amount Provision proportion(%)

Note receivable with bad debt

provision accrued on portfolio 29030278.99 100.00 1340372.95 4.62 27689906.04

Portfolio 1: bank acceptance

bill 26807458.99 92.34 1340372.95 5.00 25467086.04

Portfolio 2: trade acceptance

bill 2222820.00 7.66 2222820.00

Total 29030278.99 —— 1340372.95 4.62 27689906.04

1）Notes receivable with bad debt provision in combination

Closing balance

Items

Book balance Provision for bad debts Provision proportion (%)

Trade acceptance 24728859.51 1236442.98 5.00

Bank acceptance ——

Total 24728859.51 1236442.98 ——

(Continued)

Opening balance

Items

Book balance Provision for baddebts Provision proportion (%)

Trade acceptance 26807458.99 1340372.95 5.00

Bank acceptance 2222820.00

Total 29030278.99 1340372.95 ——

(3) Bad debt provisions for notes receivable accrual recovered or reversed in the current period

Changes in the current period

Items Opening Closingbalance Accrual Recovery Write- balanceoff OthersOpening Changes in the current periodItems Closingbalance Accrual Recovery Write- balanceoff Others

Receivables with provision made

on an individual basis

Receivables with provision for

bad debts made on a collective 1340372.95 -103929.97 1236442.98

basis

Trade acceptance 1340372.95 -103929.97 1236442.98

Total 1340372.95 -103929.97 1236442.98

3. Accounts receivable

(1) Disclosure according to aging

Ages Closing balance Opening balance

Within 1 year 203810673.21 185688715.74

1 to 2 years 55260839.75 58022885.76

2 to 3 years 29870212.97 30502728.20

3 to 4 years 20763649.56 34953804.10

4 to 5 years 23809632.03 60019462.10

Over 5 years 166215013.08 129317629.98

Less: Allowance for doubtful accounts 193889013.84198111661.33

Total 301618359.27 304616212.04

(2) According to the bad debt calculation and withdrawal method classification disclosure

Closing balance

Book balance Provision for bad debts

Categories

Provision

Amount % to total Amount proportion

(%)

Receivables with provision made on an

individual basis 76074296.15 15.22 76074296.15 100.00

Receivables with provision made on a

collective basis 423655724.45 84.78 122037365.18 28.81

Aging combination 423655724.45 84.78 122037365.18 28.81

Total 499730020.60 100.00 198111661.33 39.64

Opening balance

Book balance Provision for bad debts

Categories

Provision

Amount % to total Amount proportion

(%)

Receivables with provision made on an

individual basis 75571063.55 15.16 75571063.55 100.00

Receivables with provision made on a

collective basis 422934162.33 84.84 118317950.29 27.98Opening balance

Book balance Provision for bad debts

Categories

Provision

Amount % to total Amount proportion

(%)

Aging combination 422934162.33 84.84 118317950.29 27.98

Total 498505225.88 100.00 193889013.84 38.89

1）Accounts receivable with provision made on an individual basis

Debtors Book balance Provision for bad Provisiondebts proportion (%) Reasons

Dongpo Xi Laos Co. Ltd. 19708086.54 19708086.54 100.00 Unable torecover

Mr. Xu 17591683.74 17591683.74 100.00 Unable torecover

China Tower Corporation Ltd. 13819926.92 13819926.92 100 Unable torecover

Putian Information Technology Co. LTD 6065598.36 6065598.36 100 Unable torecover

Ningbo Tianan Group switch Co. LTD 4419126.70 4419126.70 100 Unable torecover

Other 14469873.89 14469873.89 100 Unable torecover

Total 76074296.15 76074296.15

2）Accounts receivable with provision made on an collective basis

* Aging combination

Closing balance Opening balance

Ages

Book balance Provision for bad Provision Book balance Provision for bad Provisiondebts proportion (%) debts proportion (%)

Within 1

year 203810673.21 2038106.74 1.00 185668485.74 1856684.86 1.00

1 to 2

years 55217219.25 2760860.96 5.00 58022885.76 2901144.29 5.00

2 to 3

years 29835462.97 2983546.30 10.00 26585163.67 2658516.37 10.00

3 to 4

years 14229702.18 4268910.65 30.00 34953804.10 10486141.24 30.00

4 to 5

years 21153452.63 10576726.32 50.00 34576719.05 17288359.53 50.00

Over 5

years 99409214.21 99409214.21 100.00 83127104.01 83127104.01 100.00

Total 423655724.45 122037365.18 28.81 422934162.33 118317950.29 27.98

(3) Bad debt provision

Categories Opening

Change in current period

balance Closing balanceAccrual Recovery Write- Otheroff changes

Receivables with

provision made on an 75571063.55 8975296.51 3413067.60 -5058996.31 76074296.15

individual basis

Receivables with

provision made on a 118317950.29 5271612.34 -1552197.45 122037365.18Opening Change in current periodCategories balance Accrual Recovery Write- Other

Closing balance

off changes

collective basis

Total 193889013.84 14246908.85 3413067.60 - -6611193.76 198111661.33

Current significant accounts receivable bad debt reserve transfer or recovery situation

The basis and rationality

Debtors Bookbalance Turn back cause

Recovery of determining the ratio

mode of the original bad debt

reserve

China Railway The account age is long

Communication Signal

Shanghai Engineering 1748190.05

Proceeds from sales of previous collect and it is difficult to collect

years are recovered in this period payment and reconcile the

Group Co. LTD account

The account age is long

China Telecom Group 1664877.55 Proceeds from sales of previous collect and it is difficult to collectLimited Henan branch years are recovered in this period payment and reconcile the

account

Total 3413067.60

(4) Details of the top 5 debtors with largest balances

Debtors Book balance Proportion to the total balance of Provision for badaccounts receivable (%) debts

Dongpo Xi Laos Co. Ltd. 19708086.54 3.94 19708086.54

Mr. Xu 17591683.74 3.52 17591683.74

China Tower Corporation Ltd. 13819926.92 2.77 13819926.92

Henan Branch of China United Network

Communication Co. Ltd. 8828589.22 1.77 8828589.22

Shanghai Potevio Co. Ltd. 8755534.00 1.76 8755534.00

Total 68703820.42 13.78 68703820.42

Debtors Book balance Proportion to the total balance of accounts Provision for badreceivable (%) debts

Dongpo Xi Laos Co. Ltd. 19708086.54 3.94 19708086.54

Mr. Xu 17591683.74 3.52 17591683.74

China Tower Corporation Ltd. 13819926.92 2.77 13819926.92

CHINA RAILWAY 11TH BUREAU

GROUP CORPORATION 10768588.51 2.15 272240.49

LIMITED

NANJING LES INFORMATION

TECHNOLOGY CO. LTD 8865266.00 1.77 88652.66

合计70753551.7114.1551480590.35

4. Receivables financing

Items Closing balance Opening balance

Notes receivable (Bank acceptance) 32347277.62 30668999.365. Advances paid

(1) Age analysis

Closing balance Opening balance

Ages

Amount % to total Amount % to total

Within 1 year 5870068.98 57.64 6186930.98 32.42

1-2 years 409519.84 4.02 8653927.80 45.35

2-3 years 794780.12 7.80 746082.95 3.91

Over 3 years 3110314.80 30.54 3494882.49 18.32

Total 10184683.74 100.00 19081824.22 100.00

(2) Details of the top 5 debtors with largest balances

Proportion to the total

Debtors Closing balance balance of advances

paid (%)

Zhengzhou Hounuo Information Technology Co. LTD 1928391.40 18.93

Shenzhen Chuangxian photoelectric Co. LTD 1120000.00 11.00

Rizhao Star Information Technology Co. LTD 313987.81 3.08

Ningbo Gete electronic Technology Co. LTD 207964.60 2.04

Nanjing Wenhui film and television equipment Co. LTD 196387.93 1.93

Total 3766731.74 36.98

6. Other receivable

Items Closing balance Opening balance

Other receivables 50680676.82 56070287.57

Less: Allowance for doubtful accounts 42577655.38 44353986.38

Total 8103021.44 11716301.19

（1）Other receivables categorized by nature

Categories Closing balance Opening balance

Provisional payment receivable 38355242.94 39559820.38

Deposit 10413472.88 13816308.52

Travel allowance 444303.97 608332.22

Other 1467657.03 2085826.45

Less: Allowance for doubtful accounts 50680676.82 44353986.38

Total 42577655.38 11716301.19

（2）Age analysis

Ages Closing balance Opening balanceWithin 1 year 4826760.69 8928722.74

1 to 2 years 3553362.18 3081096.07

2 to 3 years 1800397.30 2504630.82

3 to 4 years 1735195.43 2686896.37

4 to 5 years 2500896.37 3120558.40

Over 5 years 36264064.85 35748383.17

Less: Allowance for doubtful accounts 42577655.38 44353986.38

Total 8103021.44 11716301.19

（3）Changes in provision for bad debts

Phase I Phase II Phase III

Items 12-month expected Lifetime expected credit Lifetime expected credit Total

credit losses losses (credit not impaired) losses (credit impaired)

Opening balance 12259677.83 32094308.55 44353986.38

Opening balance in the

current period 12259677.83 32094308.55 44353986.38

--Transferred to phase

II

--Transferred to phase

III

--Reversed to phase II

--Reversed to phase I

Provision made in the

current period -1739097.39 21306.39 -1717791.00

Provision recovered in

current period

Provision written off in

current period 46540.00 46540.00

Other changes -12000.00 -12000.00

Closing balance 10474040.44 32103614.94 42577655.38

（4）Bad debt provision

Change in current period

Categories Opening Closingbalance Accrual To withdraw or turn Cancel after balanceback verification Other changes

Provision for

bad debts 44353986.38 -1717791.00 46540.00 -12000.00 42577655.38

（5）Details of the top 5 debtors with largest balancesProportion to

Debtors Nature of Closing Ages the total Provision forreceivables balance balance of other bad debts

receivables (%)

Beijing Likangpu Temporary

Communication payment 28912122.71 Over 5 years 57.05 28912122.71

Equipment Co. Ltd. receivable

Nanjing Putian Security Within 1Communication deposit 1125520.04 year650000.00，1- 2.22 1125520.04Technology Co. LTD 2year 475520.04

Nanjing Putian Temporary

Communication Industry payment 805545.63 4-5year 179184.19，

Co. Ltd. receivable Over5 years626361.44

1.59805545.63

Beijing Lekang Property Security

Management Co. LTD deposit 295503.81 Within 1 year 0.58 14775.19

Deposit

China International and

Tendering Co. LTD advance 287905.44 Within 1 year 0.57 14395.27

payment

Total 31426597.63 —— 62.01 30872358.84

7. Inventories

(1) Details

Closing balance Opening balance

Items

Book balance Provision for Carryingwrite-down amount Book balance

Provision for

write-down Carrying amount

Raw

material 24355064.85 10860838.19 13494226.66 27176586.65 11431889.29 15744697.36

s

Work in

process 5436730.59 2660490.69 2776239.90 6222900.12 2797339.41 3425560.71

Goods

on hand 84241370.76 44673371.62 39567999.14 102664462.27 41363720.25 61300742.02

Goods

dispatch 124160523.31 58109826.28 66050697.03 145488617.47 59779466.22 85709151.25

ed

Products

on

consign 1614307.52 804691.99 809615.53 1064779.21 804691.99 260087.22

ment for

sales

Total 239807997.03 117109218.77 122698778.26 282617345.72 116177107.16 166440238.56

(2) The increase or decrease of the inventory decline reserve and the impairment reserve of contract

performance cost

Increase amount in the Decrease amount in the

Items Opening balance current period current period Closing

Accrual Others Reversal or balancewrite-off Others

Raw materials 11431889.29 578431.26 1149482.36 10860838.19

Work in

process 2797339.41 -136848.72 2660490.69Increase amount in the Decrease amount in the

Items Opening balance current period current period Closing

Accrual Others Reversal orwrite-off Others

balance

Goods on

hand 41363720.25 3955848.33 114375.20 531821.76 44673371.62

Goods

dispatched 59779466.22 538480.82 905299.32 1302821.44 58109826.28

Products on

consignment 804691.99 804691.99

for sales

Total 116177107.16 4935911.69 2169156.88 1834643.20 117109218.77

The specific basis for determining the net realizable value and the reasons for turning back or selling

the inventory depreciation reserve in the current period.Specific basis for determining net realizable Reasons for the reversal of Reasons for the provision forItem value inventory depreciation provisions depreciation of inventory soldin the current period in the current period

Net realizable value is determined by the During the current period

estimated selling price of the relevant finished The net realizable value ofinventories for which provision was the inventory that was setRaw materials products less the estimated costs to be

incurred to completion estimated sales made for inventory depreciation in

aside for inventory

depreciation at the beginning

expenses and relevant taxes previous periods increased of the period has been sold

The net realizable value of the inventory is The net realizable value of During the current period

Goods determined by the estimated selling price of inventories which has been the inventory that was set

dispatched the inventory less estimated selling expenses provided for the decline of aside for inventoryand related taxes in the normal course of inventories in previous periods depreciation at the beginning

production and operation increased of the period has been sold

The net realizable value of the inventory is The net realizable value of During the current perioddetermined by the estimated selling price the inventory that was set

Goods on hand minus the estimated selling expenses and inventories for which provision was

relevant taxes in the normal course of made for inventory depreciation in

aside for inventory

previous periods increased depreciation at the beginningproduction and operation of the period has been sold

8. Other current assets

Items Closing balance Opening balance

Input tax to be deducted 3349668.12 3432231.67

Advance payment of income tax 141091.78

Total 3490759.90 3432231.679. Long-term equity investments

Increase/Decrease

Investment Closing

Investees Opening income

Adjustment in Changes Cash Closing balance of

balance Investments Investments recognized other in other dividend/Profit Provision for balance provision forincreased decreased under equity comprehensive equity declared for impairment

Others

impairment

method income distribution

I. Subsidiary 1294510.00 1294510.00 1294510.00

Nanjing Putian

Hotel Co. Ltd. 1294510.00 1294510.00 1294510.00

II. Joint ventures -9632.66

SEI-Nanjing

Putian Optical

Network Co. 10422321.80 -9632.66 10422321.80

Ltd.Total 10422193.15 -9632.66 1294510.00 1294510.00 11716831.80 1294510.0010. Other equity instrument investments

The reason

Amount of designated as

other measurement Other

Closing Opening Dividen The The cumulative comprehensi

at fair value comprehensi

Items balance balance d cumulativ loss ve income

and its ve income is

income e gains transferred to change transferred to

retained included in retained

earnings other earningscomprehensi

ve income

Nanjing

Yuhua

Electroplating 420915.00 420915.00

Factory

Hangzhou

Honyar

Electrical 321038.00 321038.00

Co.Ltd.Beijing

Likong

Communicati

on Equipment

Co. Ltd.Total 741953.00 741953.00

Note: The investment in Nanjing Yuhua Electroplating Factory Hangzhou Honyar Electrical Co.Ltd. and Beijing

Likong Communication Equipment Co. Ltd. are classified as other equity instrument investments the Company

measured it at fair value through other comprehensive income.

11. Investment property

(1) Investment real estate measured at cost

Items Buildings and structures Total

I.Original book value

1. Opening balance 40129313.41 40129313.41

2. Increase

(1) External purchase

(2) Transfer of fixed assets

3. Decrease

(1) Disposal

(2) Other transfer out

4. Closing balance 40129313.41 40129313.41

II.Accumulated depreciation and amortization

1. Opening balance 19778073.38 19778073.38

2. Increase 1224161.28 1224161.28

(1) Accrual or amortization 1224161.28 1224161.28

(2) Transfer of fixed assetsItems Buildings and structures Total

3. Decrease

(1) Disposal

(2) other transfer out

4. Closing balance 21002234.66 21002234.66

IIIProvision for impairment

IV.Carrying amount

1. Closing balance 19127078.75 19127078.75

2. Opening balance 20351240.03 20351240.03

12. Fixed assets

Categories Closing balance Opening balance

Fixed assets 94480062.75 98643676.71

Liquidation of fixed assets

Less: Impairment provision 725962.56 725962.56

Total 93754100.19 97917714.15

(1) Fixed assets

1）Details

Items Buildings and Machinery Electronic Transport Otherstructures equipment equipment facilities equipment Total

I. Original book value

1. Opening

balance 122417144.93 45316591.74 23002008.74 3888742.90 17542315.66 212166803.97

2. Increase 2806727.42 258054.41 277048.68 160357.93 3502188.44

(1) Acquisition 2806727.42 258054.41 277048.68 160357.93 3502188.44

(2) Transfer of

projects under

construction

(3) Others

3. Decrease 586802.28 156807.22 1509989.94 800331.30 179046.24 3232976.98

(1) Disposal or

scrapping 586802.28 156807.22 1509989.94 800331.30 179046.24 3232976.98

(2) Transfer into

investment real estate

(3) Others

(4) Changes in the

scope of

consolidation

4. Closing balance 121830342.65 47966511.94 21750073.21 3365460.28 17523627.35 212436015.43

II.Accumulated

depreciation

1. Opening balance 48456225.13 26920074.59 18316990.42 3564933.91 16264903.21 113523127.26

2. Increase 4288224.90 1569590.92 1042033.01 97592.41 234600.19 7232041.43Items Buildings and Machinery Electronic Transport Otherstructures equipment equipment facilities equipment Total

（1）Accrual 4288224.90 1569590.92 1042033.01 97592.41 234600.19 7232041.43

（2）Others

3. Decrease 484263.91 149012.85 1467066.34 532511.43 166361.48 2799216.01

(1)

Disposal/Scrapping 484263.91 149012.85 1467066.34 532511.43 166361.48 2799216.01

（2）Transfer to

investment real estate

（3）Others

（4）Change in

consolidation scope

4. Closing balance 52260186.12 28340652.66 17891957.09 3130014.89 16333141.92 117955952.68

III.Provision for

impairment

1. Opening balance 539124.00 11550.65 175287.91 725962.56

2. Increase

（1）Accrual

（2）Others

3. Decrease

（1）

Disposal/Scrapping

（2）Others

4. Closing balance 539124.00 11550.65 175287.91 725962.56

IV. Carrying amount

1. Closing balance 69031032.53 19614308.63 3858116.12 235445.39 1015197.52 93754100.19

2. Opening balance 73421795.80 18384966.50 4685018.32 323808.99 1102124.54 97917714.15

2）Fixed assets temporarily idle

Items Original book Accumulated Provision for Carryingvalue depreciation impairment amount Remarks

Machinery equipment 219385.00 202981.30 11550.65 4853.05

Electronic equipment 36000.00 34920.00 1080.00

Other equipment 342985.18 157407.73 175287.91 10289.54

Total 598370.18 395309.03 186838.56 16222.59

3）Fixed assets leased under operating leases as of December 31 2023

Items Carrying amount

Buildings and structures 12414346.21

4）Fixed assets with certificate of titles being unsettled

Items Carrying amount Reasons for unsettlement

Buildings and structures 33937794.59 In process13. Construction in progress

Categories Closing balance Opening balance

Construction in progress project 5906.53

Engineering materials

Less: Impairment provision

Total 5906.53

1. Projects under construction

(1) Basic information of construction projects in progress

Closing balance Opening balance

Items Book Provision Carrying Book Provisionfor for Carryingbalance impairment amount balance impairment amount

Renewal and transformation 5906.53 5906.53

14. Intangible assets

(1) Details

Items Software Land use right Total

I. Original book value

1. Opening balance 12131153.63 26656046.83 38787200.46

2. Increase 51262.44 51262.44

（1）Acquisition 51262.44 51262.44

3. Decrease 588965.52 588965.52

（1）Disposal 588965.52 588965.52

4. Closing balance 11593450.55 26656046.83 38249497.38

II.Accumulated depreciation

1. Opening balance 10512343.86 7781392.84 18293736.70

2. Increase 277565.07 634289.62 911854.69

（1）Acquisition 226302.63 634289.62 860592.25

（2）other 51262.44 51262.44

3. Decrease 588965.52 588965.52

（1）Disposal 588965.52 588965.52

4. Closing balance 10200943.41 8415682.46 18616625.87

III. Carrying amount

1. Closing balance 1392507.14 18240364.37 19632871.51

2. Opening balance 1618809.77 18874653.99 20493463.7615. Long-term prepayments

Items Opening balance Increase Amortization Other decrease Closing balance

Renovation expenditure 3953824.45 220616.00 1874667.27 2299773.18

16. Deferred tax assets and deferred tax liabilities

(1) Details of unrecognized deferred tax assets

Items Closing balance Opening balance

Deductible temporary difference 361055451.02 357780952.89

Deductible losses 250920070.63 297743081.95

Total 611975521.65 655524034.84

(2) Maturity years of deductible losses of unrecognized deferred tax assets

Maturity years Closing balance Opening balance Remarks

Year 2023 4729689.33

Year 2024 105985653.23 125729965.87

Year 2025 3031582.45

Year 2026 67207331.67 93920899.53

Year 2027 55359032.59 56365467.02

Year 2029 10349408.51 197690.62

Year 2030 1622476.49 1622476.49

Year 2031 1188328.53 1188328.53

Year 2032 9791047.64 10250907.64

Year 2033 3128208.76 3737656.92

Total 258001091.82 297743081.95

17. Other non-current assets

Items Closing balance Opening balance

Long-term asset purchase 40899.0018. Assets with limited ownership or use rights

Closing balance Opening balance

Items

Book balance Book value Restricted type Restricted case Book balance Book value Restricted type Restricted case

Other cash Involving litigation bankInvolving litigation bank freeze 4368851.37 Involving litigation bank Involving litigation bank freezeand bank 14113164.10 14113164.10 ，freeze Guarantee deposit Guarantee deposit 9479083.96 9479083.96 freeze Guarantee deposit 2700000.00，Guaranteebalances 、 、9744312.73 deposit 6779083.96Fixed

assets 37958367.23 23546470.68

Property and land mortgage Property and land

loans mortgage loans 37958367.23 24947499.64

Property and land mortgage Property and land mortgage

loans loans

Intangible 5033207.40 3344930.14 Property and land mortgage Property and land 5033207.40 1568556.10 Property and land mortgage Property and land mortgageassets loans mortgage loans loans loans

Total 57104738.73 41004564.92 52470658.59 35995139.70 --

Other instructions：We remind users of financial statements that apart from the above assets with title or use right restrictions in order to entrust the parent company to apply for

loans from Bank of Beijing Jiangning Sub-branch the Company pledged its holding equities to the parent company which include equity of Nanjing South Telecommunications Co Ltd.

33.17 million yuan(96.99% shares of stock equity) equity of Nanjing Putian Telege Intelligent Building Co. Ltd. 4.80 million yuan(40% shares of stock equity) equity of Nanjing

Putian Changle Telecommunications Equipment Co. Ltd. 5.07 million yuan(50.7% shares of stock equity) equity of Nanjing Putian Network Co. Ltd. 7.80 million yuan(78% shares of

stock equity) equity of Nanjing Mennekes Electric Co. Ltd. 41.14 million yuan (100% shares of stock equity ). The Company has registered the equity pledge at Nanjing Jiangning

Market Supervision Administration. Those equities are with use restrictions before released.19. Short-term borrowings

(1) Details

Borrowing conditions Closing balance Opening balance

Pledged borrowings 50000000.00

Mortgaged borrowings 16015446.08 32800000.00

Secured borrowings 30036727.77

credit borrowings 53847877.85

Total 69863323.93 112836727.77

20.Notes payable

Items Closing balance Opening balance

Banker's acceptance 7885557.80

Total 7885557.80

21.Accounts payable

(1) Classified by account age

Items Closing balance Opening balance

Within 1 year (including 1 year) 261624545.57 291414050.48

More than 1 year 135969220.70 179453232.59

Total 397593766.27 470867283.07

(2) Significant accounts payable with age over one year

Name of creditor Closing balance Reasons for unsettlement

SEI-Nanjing Putian Optical Network Co. Ltd. 20568725.66 Material payment/According to the contractschedule both parties have not settled

Potevio Company Limited 14918045.42 Material payment/According to the contractschedule both parties have not settled

Nanjing Xingping Industry Co. Ltd. 8927226.06 Not yet settled

Xi'an Huasheng Communication Co. Ltd. 3397858.77 Material payment/According to the contractschedule both parties have not settled

Total 47811855.91

22.Advances received

Items Closing balance Opening balance

Within 1 year (including 1 year) 452216.54 240585.08

More than 1 year

Total 452216.54 240585.08

23.Contract liabilitiesItems Closing balance Opening balance

Payment for goods 16720781.30 15048811.36

1. Significant contract liabilities older than 1 year

Name of creditor Opening balance Reasons for unsettlement

China Putian Information Industry

Co. LTD 3672363.25 Not yet settled

24.Employee benefits payable

(1) Details

Items Opening Closingbalance Increase Decrease balance

Short-term employee benefits 17473887.86 135281538.08 134984058.57 17771367.37

Post-employment benefits - defined

contribution plan 20667231.63 20667231.63

Dismissal welfare 8672717.62 8672717.62

Total 17473887.86 164621487.33 164324007.82 17771367.37

(2) Details of short-term employee benefits

Items Openingbalance Increase Decrease

Closing

balance

Wage bonus allowance and subsidy 3625349.25 101177180.70 101177180.70 3625349.25

Employee welfare fund 7719342.21 7719342.21

Social insurance premium 8577558.72 8577558.72

Including: Medicare premium 7468350.59 7468350.59

Occupational injuries premium 506380.33 506380.33

Maternity premium 602827.80 602827.80

Others

Housing provident fund 3216865.05 9543902.39 9543902.39 3216865.05

Trade union fund and employee 10616677.03 836398.69 538919.18 10914156.54

education fund

Others 14996.53 7427155.37 7427155.37 14996.53

Total 17473887.86 135281538.08 134984058.57 17771367.37

(3) Details of defined contribution plan

Items Openingbalance Increase Decrease Closing balance

Basic endowment insurance premium 19490529.41 19490529.41

Unemployment insurance premium 785947.72 785947.72

Company annuity payment 390754.50 390754.50

Total 20667231.63 20667231.63

25.Taxes payableItems Closing balance Opening balance

VAT 2627413.82 3347506.52

Enterprise income tax 2064588.36 2752400.75

Individual income tax 155936.50 185396.12

Urban maintenance and construction tax 212899.11 411899.55

Housing property tax 278347.94 265078.20

Land use tax 76065.10 76065.10

Education surcharge&local education

surcharge 149928.29 292071.40

Other tax 65813.19 60103.57

Total 5630992.31 7390521.21

26.Other payables

Items Closing balance Opening balance

Dividend payable 5692213.38 1692213.38

Other payables 41427529.15 57514067.70

Total 47119742.53 59206281.08

(1) Dividend payable

Items Closing balance Opening balance

Dividend of ordinary shares 5692213.38 1692213.38

(2) Other payables

1）Classification by nature of funds

Items Closing balance Opening balance

Temporary receipts payable 32498657.42 34476014.33

Unsettled installation cost 231627.19 8160449.74

Deposits 2904038.29 6273154.05

Operating expenses 4891257.87 7860725.92

Others 901948.38 743723.66

Total 41427529.15 57514067.70

27.Other current liabilities

Items Closing balance Opening balance

VAT collected in advance 1595107.01 1691302.29

28.Long-term borrowingsItems Closing balance Opening balance Interest raterange

Pledged borrowings 176011976.11 105800000.00 3.75%-4.05%

29.Share capital

Movements

accumulation

Items Opening Issuebalance Bouns

fund Closing balance

of new shares Reserve Others Subtotalshares transferred to

shares

Total shares 215000000.00 215000000.00

30.Capital reserve

Items Opening balance Increase Decrease Closing balance

Share premium 137786640.63 137786640.63

Other capital reserve 59311274.77 59311274.77

Total 197097915.40 197097915.4031.Other comprehensive income (OCI)

Current period cumulative

Less: Other Less: Other

Current period comprehensive comprehensive

Items Opening balance Closingcumulative income in the income recorded in Less: Attributable to Attributable to balance

before income previous period is the previous period Income tax parent company non-controllin g

tax transferred to is transferred to shareholders

profit and loss retained income inthe current period

Other comprehensive income reclassified

into profit and loss -1854910.00 -1854910.00

Including: The amount of financial assets

reclassified into other comprehensive -1854910.00 -1854910.00

income

Total -1854910.00 -1854910.0032.Surplus reserve

Items Opening balance Increase Decrease Closing balance

Statutory surplus reserve 589559.77 589559.77

33.Undistributed profit

Items Current period cumulative Preceding periodcomparative

Balance before adjustment at the end of preceding period -388837228.89 -341446683.34

Add: Increase due to adjustment (or less: decrease)

Opening balance after adjustment -388837228.89 -341446683.34

Add: Net profit attributable to owners of the parent

company -16884077.62 -47390545.55

Less: Appropriation of statutory surplus reserve

Withdraw arbitrary surplus reserve

Dividend payable on ordinary shares

Common stock dividends converted into capital

stock

Closing balance -405721306.51 -388837228.89

34.Operating revenue/Operating cost

(1) Details

Items Current period cumulative Preceding period comparativeRevenue Cost Revenue Cost

I.Main operations 800975953.86 610233982.27 862124004.15 686483649.52

II.Other operations 17358420.44 9451126.40 17442044.81 12123980.90

Total 818334374.30 619685108.67 879566048.96 698607630.42

(2) Statement of operating income deductionItems Current Year Specific deduction Previous year Specificdeduction

Amount of operating income 818334374.30 879566048.96

Total amount of business income deduction items 14689596.38 10866001.57

Proportion of the total amount of deductible items in the operating revenue (%) 1.80% / 1.24% /

I. Business income unrelated to main business

The income from housing rental and

1. Income from other businesses other than normal operations. For example income from water and electricity of 9149896.78

leasing fixed assets intangible assets and packaging selling materials exchanging non- yuan. Materials sales

monetary assets with materials operating entrusted management business etc. as well as 14689596.38 revenue5408004.19yuan. 10866001.57

income that is included in the main business income but is outside the normal operation of Software service revenue

the listed company. 19892.93yuan Scrap revenue47820.18yuan Non-rental income

63982.30yuan.

II. Income without commercial substance

III. Other income that has nothing to do with the main business or has no commercial

substance

Amount after deduction of operating income 803644777.92 868700047.39

- 74 -(3) Operating income operating cost breakdown information

Income classification Revenue Cost

By business type 818334374.30 879566048.96

Communication industry 717049035.96 788478840.69

Electrical industry 101285338.34 91087208.27

By sales channel 818334374.30 879566048.96

Direct selling 477217979.91 464411292.37

distribution 341116394.39 415154756.59

Total 818334374.30 879566048.96

(4) Description of performance obligations

The nature of Whether it The amount that The type of

Meet Important payment the goods the is the

the company is quality assurance

Projects performance terms company principal

responsible for is provided by the

obligations promises to responsible expected to be company and

transfer person refunded to the relatedcustomer obligations

Selling video Customers Pay in installmentsaccept items according to the Videoconferencing or sign for time node agreed in conferencing is There is no

Warranty Period

products Products Warrantymerchandise the contract

Sales of Pay in installments

integrated Customers according to the Integrated

wiring sign for time node agreed in cabling is There is no

Warranty Period

merchandise products Warrantyproducts the contract

Sales of smart Customers Pay in installments

electrical sign for according to the

Smart

time node agreed in Electrical is There is no

Warranty Period

products merchandise Products Warrantythe contract

Engineering Follow the Pay in installments Integrated

construction performance according to the cabling is There is no Warranty Period

provided schedule time node agreed in products Warrantythe contract

Provide Follow the Pay in installments Maintenance

maintenance performance according to thetime node agreed in and other is There is no There is noservices schedule the contract services

(4) Description of apportionment to remaining performance obligations

The amount of income corresponding to the performance obligations that have been signed but not yet

performed or completed at the end of this report is 20400.57 million yuan of which 16974.48 million yuan is

expected to be recognized in 2024; 34260900 yuan is expected to be recognized in 2025.

35.Taxes and surcharges

Items Current period cumulative Preceding periodcomparative

Urban maintenance and construction tax 1634769.84 1616471.39

Education surcharge&local education surcharge 1167392.69 1154331.76

- 75 -Items Current period cumulative Preceding periodcomparative

Housing property tax 1708445.30 1226460.58

Land use tax 458287.96 472310.06

Other tax 581646.77 431367.74

Total 5550542.56 4900941.53

36.Selling expenses

Items Current period cumulative Preceding periodcomparative

Employee benefits 51975577.69 51675564.01

Business entertainment 9234928.54 8102994.12

Travelling expenses 5145939.14 3495888.41

Office expenses 3496071.29 2327400.49

Sales service charges 1779263.54 4273777.24

Conference expenses 564035.42 420557.41

Promotion expenses 522574.60 572798.35

Equipment maintain fees 7461.95 12303.98

Others 3761749.10 4450696.99

Total 76487601.27 75331981.00

37.Administrative expenses

Items Current period cumulative Preceding periodcomparative

Employee benefits 45533495.59 44564523.09

Depreciation and amortization 5655087.34 6115801.58

Consulting intermediary and legal fees 3076826.85 3040563.68

Office expenses 3610998.40 3823473.00

Lease expenses 1760994.92 2210789.52

Business entertainment 657307.68 939099.40

Travelling expense 508195.35 1053212.45

Funding for Party Building 1039990.46 60551.22

Others 61842896.59 1382250.37

Total 45533495.59 63190264.31

38.R&D expenses

Items Current period cumulative Preceding periodcomparative

Employee benefits 29939792.60 36089623.23

Travelling expenses 1441242.03 934536.37

Depreciation and amortization 977381.41 1467608.27

- 76 -Items Current period cumulative Preceding periodcomparative

Material use 758826.36 1085053.28

Intermediate test fee 1456770.43 1681442.67

Design fee 1439245.25 10188.68

Others 2008854.26 1422026.84

Total 38022112.34 42690479.34

39.Financial expenses

Items Current period cumulative Preceding periodcomparative

Interest expenditures 9780203.87 10747567.42

Less: Interest income 550442.21 781316.52

Losses on foreign exchange -9497.49 6594.36

Less: gain on foreign exchange 10.20

Financial institution fees 177315.62 105949.33

Others 14.72 2648.38

Total 9397594.51 10081432.77

40.Other income

Items Current period Preceding period

Related to

cumulative comparative assets/Related toearnings

Government grants related to income 5197105.02 1702585.06 Related toearnings

Withholding and payment of individual tax service fee

return 61550.43 29712.14

Total 5258655.45 1732297.20

41.Investment income

Items Current period cumulative Preceding periodcomparative

Investment income from long-term equity investments

under equity method -9632.66 128.65

Investment gains from the disposal of trading financial

assets 337205.48

Debt restructuring 588868.84 82093.23

Others 698690.90 398538.38

Total 1277927.08 817965.74

42.Credit impairment loss

Items Current period cumulative Preceding periodcomparative

Bad debt loss of notes receivable 103929.97 -619152.29

- 77 -Items Current period cumulative Preceding periodcomparative

Bad debt loss of accounts receivable -10833841.25 -6782976.13

Bad debt loss of other receivables 1717791.00 -3451939.79

Total -9012120.28 -10854068.21

43.Assets impairment loss

Items Current period cumulative Preceding periodcomparative

Inventory write-down loss -4935911.69 -7084963.73

Impairment losses on long-term equity investments -1294510.00

Total -4935911.69 -8379473.73

44.Gains on asset disposal

Items Current period cumulative Preceding periodcomparative

Gain on disposal of fixed assets -134939.44 555016.98

45.Non-operating revenue

Current period Preceding Amount includedItems cumulative period in non-recurringcomparative profit or loss

Unpaid payables 1817075.37 99519.59 1817075.37

Penalty income 123145.40 8890.51 123145.40

Others 218585.64 3093180.22 218585.64

Total 2158806.41 3201590.32 2158806.41

46.Non-operating expenditures

Current period Preceding Amount includedItems cumulative period in non-recurringcomparative profit or loss

Penalty expenditures 626900.00 2000.00 626900.00

Overdue expenditure 8365.01 161691.92 8365.01

Others 474262.82 458112.32 474262.82

Total 1109527.83 621804.24 1109527.83

47.Income tax expenses

(1) Details

Items Current period cumulative Preceding periodcomparative

- 78 -Items Current period cumulative Preceding periodcomparative

Current income tax expense calculated in accordance

with the tax law and relevant provisions 4164603.65 5392730.40

Others -586698.92 3188452.95

Total 3577904.73 8581183.35

(2) Accounting profit and income tax expense adjustment process

Items Amount

Profit before tax 851408.06

Income tax expenses based on tax rate applicable to the parent company 212852.02

Effect of different tax rate applicable to subsidiaries -3226220.13

Effect of prior income tax reconciliation -356216.58

The effect of non-taxable income

The impact of non-deductible costs expenses and losses 1228840.84

The effect of deductible temporary differences or deductible losses of deferred tax assets

not recognized in the previous period

The effect of deductible temporary differences or deductible losses on deferred tax assets

was not recognized in the current period 13377004.91

Deduction of R&D expenditures -7658356.33

Income tax expenses 3577904.73

48.Statement of cash flow

(1) Other cash receipts related to operating activities

Items Current period Preceding periodcumulative comparative

Government grants 1371811.57 363345.72

Interest income 676743.53 1460033.50

Incomings and outgoings 46691196.33 33075711.39

Others 3872809.63 7725241.18

Total 52612561.06 42624331.79

(2) Other cash payments related to operating activities

Items Current period Preceding periodcumulative comparative

Out-of-pocket expenses 60579555.09 50305591.96

Incomings and outgoings 27973575.62 32253196.38

Others 6469002.51 4013738.38

Total 95022133.22 86572526.72

(3) Other cash payments related to financing activities

Items Current period Preceding periodcumulative comparative

Others 615441.46 1077527.58

Total 615441.46 1077527.58

- 79 -(5) Other cash payments related to financing activities

Opening Current increase Current decreaseItems balance Cash movement Non-cash Cash movement Non-cash Ending balance

movement movement

Short-term

borrowings 112836727.77 110800000.00 26596.16 153800000.00 69863323.93

Long-term

borrowings 105800000.00 70000000.00 211976.11 176011976.11

Total 218636727.77 180800000.00 238572.27 153800000.00 245875300.04

49.Supplement information to the cash flow statement

(1) Supplement information to the cash flow statement

Items Current period Preceding periodcumulative comparative

I. Reconciliation of net profit to cash flow from operating

activities:

Net profit -2726496.67 -37366339.70

Add: Provision for assets impairment loss 4935911.69 8379473.73

Provision for credit impairment loss 9012120.28 10854068.21

Depreciation of fixed assets depletion of oil and gas

assets depreciation of productive biological assets and 8456202.71 9489058.06

depreciation of investment real estate

Depreciation of right-of-use assets

Amortization of intangible assets 911854.69 1006279.95

Amortization of long-term prepayments 1874667.27 1462172.62

Loss on disposal of fixed assets intangible assets and

other long-term assets (Less: gains) 134939.44 -555016.98

Fixed assets retirement loss (Less: gains) 48177.46

Gains from derecognition of financial assets at amortized

cost

Losses on changes in fair value (Less: gains)

Financial expenses (Less: gains) 9780203.87 10747567.42

Investment losses (Less: gains) -1277927.08 -817965.74

Decrease of deferred tax assets (Less: increase)

Increase of deferred tax liabilities (Less: decrease)

Decrease of inventories (Less: increase) 42809348.69 15635851.24

Decrease of operating receivables (Less: increase) -4652275.38 24164049.92

Increase of operating payables (Less: decrease) -75276199.54 -73773886.58

Others

Net cash flows from operating activities -6017650.03 -30726510.39

II. Significant investing and financing activities not related to

cash receipts and payments:

Conversion of debt into capital

Convertible bonds due within one year

- 80 -Items Current period Preceding periodcumulative comparative

Fixed assets leased in under finance leases

III. Net changes in cash and cash equivalents:

Cash at the end of the period 164177680.11 164384741.39

Less: Cash at the beginning of the period 164384741.39 180459070.86

Add: Cash equivalents at the end of the period

Less: Cash equivalents at the beginning of the period

Net increase of cash and cash equivalents -207061.28 -16074329.47

(2) Cash and cash equivalents

Items Current period cumulative Preceding periodcomparative

I. Cash -207061.28 -16074329.47

Including: Cash on hand 343.39

Cash in bank on demand for payment 164177680.11 164384398.00

Other monetary funds readily available for payment

Money deposited with a central bank that can be used for

payment

Deposit of interbank funds

Interbank debits

II. Cash equivalents

Including: bond investments maturing within three months

III. Cash and cash equivalents at the end of the period 164177680.11 164384741.39

Including: restricted use of cash and cash equivalents by the

parent company or subsidiaries within the Group

50.Monetary items in foreign currencies

(1) Monetary items in foreign currencies

Items Closing balance in Exchange rate RMB equivalent at theforeign currencies end of the period

Cash and bank balances

Including: USD 33665.08 7.0827 238439.66

51.lease

1. As lessor

（1）Operating lease

Items Lease income Among them: Income related to variable lease payments not included in leasecollections

- 81 -Items Lease income Among them: Income related to variable lease payments not included in leasecollections

Lease income 8954511.16

VI. R&D expenses

（一）List by nature of cost

Items Current period cumulative Preceding period comparative

Employee benefits 29939792.60 36089623.23

Travelling expenses 1441242.03 934536.37

Depreciation and amortization 977381.41 1467608.27

Material use 758826.36 1085053.28

Intermediate test fee 1456770.43 1681442.67

Design fee 1439245.25 10188.68

Others 2008854.26 1422026.84

Total 38022112.34 42690479.34

Among them: expensed research

and development expenditure 38022112.34 42690479.34

VII. Changes in the consolidation scope

(I) Subsidiaries liquidated this year:

The seventh branch of Nanjing Communication Equipment Factory: It has been liquidated in

December 2023 and the profit and loss and cash flow from January to December during the

liquidation period are included in the scope of consolidation.Nanjing Putian Network Co. LTD. : The liquidation was completed in November 2023 and the

profit and loss and cash flow from January to November during the liquidation period were included

in the scope of consolidation

Chongqing Puhua Information Technology Co. LTD. : The liquidation has been completed in

September 2023 and the profit and loss and cash flow from January to September during the

liquidation period are included in the scope of consolidation

VIII. Interest in other entities

(I) Interest in subsidiaries

1. Composition of subsidiaries

- 82 -（1）Details

Subsidiaries Place of

Main Holding proportion (%)

registration operating

Business Acquisition

place nature Direct Indirect Method

Nanjing Putian

Changle

Telecommunications Nanjing City Nanjing City Manufacture 50.70 Set up

Equipment Co. Ltd.Nanjing Putian

Telege Intelligent Nanjing City Nanjing City Manufacture 45.77 Set up

Building Ltd.Nanjing South

Telecommunications Nanjing City Nanjing City Manufacture 96.99 3.01 Set up

Company Limited

Merger of

Nanjing Mennekes enterprises

Electric Co. Ltd. Nanjing City Nanjing City Manufacture 100.00 underdifferent

control

Merger of

Nanjing Putian enterprises

Datang Information Nanjing City Nanjing City Manufacture 40.00 under

Electronic Co. Ltd. different

control

（2）Notes

Remarks on inconsistency between holding proportion owned and voting rights proportion owned in

subsidiaries

a. The Company holds 45.767% of voting rights in Nanjing Putian Telege Intelligent Building Ltd.the other voting rights are decentralized. The Company has over half member of the Board of

Directors and it not only controls this company but also has a privileged variable return by taking

part in Nanjing Putian Telege Intelligent Building Ltd’s related activity. The Company has the

ability to impact the amount of return and control over Nanjing Putian Telege Intelligent Building

Ltd.b. The company holds Nanjing Putian Datang Information Electronics Co. LTD. 40% equity the

company in Nanjing Putian Datang information electronics Co. LTD. As the number of board

members more than half of the company's board of directors has the power of Nanjing Putian

Datang information Electronics Co. LTD. Be able to enjoy variable returns by participating in

relevant activities of Nanjing Putian Datang Information Electronics Co. LTD. and have the ability

to influence the amount of returns by using the power of Nanjing Putian Datang Information

Electronics Co. LTD. and be able to control Nanjing Putian Datang Information Electronics Co.LTD.

2. Significant not wholly-owned subsidiaries

Holding proportion Non-controlling Dividend declared to Closing balance of

Subsidiaries of non-controlling shareholders’ profit non-controlling non-controlling

shareholders or loss shareholders interest

Nanjing Putian 54.23% 14587076.16 10846600.00 61222078.98

- 83 -Telege Intelligent

Building Ltd.

3. Main financial information of significant not wholly-owned subsidiaries

Closing balance

Subsidiaries Non-

Current assets Non-currentassets Total assets

Current Total

liabilities currentliabilities liabilities

Nanjing Putian

Telege Intelligent 246175267.24 34479857.17 280655124.41 167761746.25 167761746.25

Building Ltd.(continued)

Opening balance

Subsidiaries Non-current Current Non-Current assets Total assets current Totalassets liabilities liabilities liabilities

Nanjing Putian

Telege Intelligent 220616216.69 35771362.31 256387579.00 150992737.00 150992737.00

Building Ltd.Current period cumulative

Subsidiaries Operating Total

revenue Net profit comprehensive

Cash inflow from

income operating activities

Nanjing Putian Telege Intelligent

Building Ltd. 368898076.14 27498536.16 27498536.16 21821020.40

(continued)

Preceding period comparative

Subsidiaries Operating Total

revenue Net profit comprehensive

Cash inflow from

income operating activities

Nanjing Putian Telege Intelligent

Building Ltd. 368838452.07 28193877.68 28193877.68 14659448.46

(II) Interest in joint venture or associates

1. Aggregated financial information of insignificant joint ventures and associates

Closing

Items balance/Current period Opening balance/Preceding

cumulative period comparative

Joint ventures

Total carrying amount of investments 10412689.14 10422321.80

Proportionate shares in the following items:

Net profit -19265.32 128.65

Total comprehensive income -19265.32 128.65

- 84 -VIV. Government subsidy

(一) Government grants recognised in profit or loss for the current period

Items Current period Preceding periodcumulative comparative

VAT is collected and refunded 1963542.97 1253284.01

Subsidies for high-tech enterprises 260000.00

Government grants related to earnings 898251.01 139183.65

Vocational training subsidy costs 30382.40 31202.84

Job stabilization subsidy 504705.14 8500.00

Tax relief for hiring poor employees who have established a file 7800.00 7800.00

other 30406.14 2614.56

Total 3435087.66 1702585.06

X. Risks related to financial instruments

The Company aims to seek the appropriate balance between the risks and benefits from its use of

financial instruments and to mitigate the adverse effects that the risks of financial instruments have

on the Company’s financial performance. Based on such objectives the Company’s risk

management policies are established to identify and analyze the risks faced by the Company to set

appropriate risk limits and controls and to monitor risks and adherence to limits.The Company has exposure to the following risks from its use of financial instruments which

mainly include: credit risk liquidity risk and market risk. Management have deliberated and

approved policies concerning such risks and details are:

(I) Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other

party by failing to discharge an obligation.

1. Credit risk management practice

(1) Evaluation method of credit risk

At each reporting date the Company assesses whether the credit risk on a financial instrument has

increased significantly since initial recognition. When 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

- 85 -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 the estimated

lifetime through comparison of the default risk at the balance sheet date and the initial recognition

date on an individual basis or a collective basis.The Company considers the credit risk on a financial instrument has increased significantly when

one or more of the following qualitative and quantitative standards are met:

1) Quantitative standard mainly relates to the scenario in which on the balance sheet date the

probability of default in the remaining lifetime has risen by more than a certain percentage compared

with the initial recognition;

2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or

financial position present or expected changes in technology market economy or legal environment

that will have significant adverse impact on the debtor’s repayment ability;

(2) Definition of default and credit-impaired asset

The Company defines a financial asset as in default when the financial instrument meets one or more

of the following criteria which are consistent with the definition of credit impairment incurred:

1) significant financial difficulty of the debtor;

2) a breach of binding clause of contract;

3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;

4) the creditor of the debtor for economic or contractual reasons relating to the debtor’s financial

difficulty having granted to the debtor a concession(s) that the creditor would not otherwise

consider.

2. Measurement of expected credit losses

The key factors in the measurement of expected credit loss include the probability of default loss

rate of default and exposure to default risk.

3. The opening balance and closing balance of loss provision for financial instruments are detailed in

Notes V(3) V(4) and V(7) to these financial statements.

4. Exposure to credit risk and concentration of credit risk

The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In

- 86 -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 cash and bank balances in financial institutions

with relatively high credit levels hence its credit risk is relatively low.

(2) Receivables

The Company performs credit assessment on customers who uses credit settlement on a

regular/continuous basis. The Company selects credible and well-reputed customers based on credit

assessment result and conducts ongoing monitoring on receivables to avoid significant risks in bad

debts.As the Company's accounts receivable risk points are distributed across multiple partners and

multiple customers 14.16% of the Company's accounts receivable as of June 30 2023 (June 30

2022: 13.78%) originated from the top five customers with balances and the Company does not

have significant credit concentration risk.The maximum amount of exposure to credit risk of the Company is the carrying amount of each

financial asset on the balance sheet.(II) Liquidity risk

Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations

associated with cash or other financial assets settlement which is possibly attributable to failure in

selling financial assets at fair value on a timely basis or failure in collecting liabilities from

counterparts of contracts or early redemption of debts or failure in achieving estimated cash flows.In order to control such risk the Company utilized financing tools such as notes settlement bank

borrowings etc. and adopts long and short financing methods to optimizing financing structures and

finally maintains a balance between financing sustainability and flexibility. The Company has

obtained credit limit from several commercial Nanjing Putian Telecommunications Co. Ltd. 2021

Annual Report 187 banks to meet working capital requirements and expenditures.Financial instruments classified based on remaining time period till maturity

Closing balance

Items

Carrying amount Contract amount notyet discounted Within 1 year 1-3 years Over 3 years

Short-term borrowings 69863323.93 69863323.93 69863323.93

Notes payable

Accounts payable 397593766.27 397593766.27 397593766.27

- 87 -Other payable 47119742.53 47119742.53 47119742.53

Non-current liabilities due

within one year

Subtotal 514576832.73 514576832.73 514576832.73

(Continued)

Opening balance

Items

Carrying amount Contract amount notyet discounted Within 1 year 1-3 years Over 3 years

Short-term borrowings 112836727.77 112836727.77 112836727.77

Notes payable

Accounts payable 470867283.07 470867283.07 470867283.07

Other payable 59206281.08 59206281.08 59206281.08

Non-current liabilities due

within one year

Subtotal 642910291.92 642910291.92 642910291.92

(III) Market risk

Market risk is the risk that the Company may encounter fluctuation in fair value of financial

instruments or future cash flows due to changes in market price.

1. Interest risk

Interest risk is the risk that an enterprise may encounter fluctuation in fair value of financial

instruments or future cash flows due to changes in market interest. The Company’s fair value interest

risks arise from fixed-rate financial instruments while the cash flow interest risks arise from floating

interest financial instruments. The Company determines the proportion of fixed-rate financial

instruments and floating interest rate financial instruments based on the market environment and

maintains a proper financial instruments portfolio through regular review and monitoring. The

Company’s interest risk relates mainly to bank borrowings with floating interest rate

2. Foreign currency risk

Foreign exchange risk refers to the risk that the fair value or future cash flow of a financial

instrument may fluctuate due to changes in foreign exchange rates. The Company operates in

mainland China and its main activities are denominated in renminbi so the Company's exposure to

foreign exchange movements is not material. The Company's foreign currency monetary assets and

liabilities at the end of the period are detailed in the relevant notes to the financial statements.- 88 -XI. Fair value

(I) Details of fair value of assets and liabilities at fair value at the balance sheet date

Items Level 1 fair value Level 2 fair value Level 3 fair valuemeasurement measurement measurement Closing balance

I. Recurring fair value measurement

1. Receivables financing 32347277.62 32347277.62

2. Other equity instrument investments 741953.00 741953.00

Total assets at recurring fair value

measurement 32347277.62 32347277.62

Items Level 1 fair value Level 2 fair value Level 3 fair value Closingmeasurement measurement measurement balance

I. Recurring fair value

measurement

（一）Other equity instrument

investments 741953.00 741953.00

Total assets at recurring fair

value measurement 741953.00 741953.00

二、Non-continuous fair value

measurement

（一）Financing of receivables 32347277.62 32347277.62

Total assets that are not

consistently measured at fair 32347277.62 32347277.62

value

(II) Valuation technique(s) and key input(s) for level 3 fair value at recurring and non-recurring fair

measurement

1. For notes receivable measured at par value.

2. For other equity instrument investments including Nanjing Yuhua Electroplating Factory and

Hangzhou Honyar Electrical Co.Ltd. due to no changes of operating environment and conditions

and financial conditions of the invested enterprises the Company measured at investment cost.

3. For other equity instrument investments including Beijing Likangpu Communication Equipment

Co. Ltd. due to deterioration of operating environment and conditions and financial conditions of

the invested enterprises the Company measured at zero value.XII. Related party relationships and transactions

(I) Parent company

- 89 -Holding Voting rightRegistered

Parent Business proportion over proportioncompany Place of registration nature capital（Tenthousand yuan the Companyover the

） (%) Company(%)

China Electric No.359 Jiangdong Middle Electronic

Power Rui Group Road Jianye District equipment 1000000000.00 53.49 53.49

Co. LTD Nanjing manufacturing

The ultimate control party is China Electronics Technology Group Co. LTD.(II) Status of the Company's subsidiaries

See Note "VIII. Interests in Other Entities" for details.(III) Joint ventures and associates of the Company

For the important joint ventures or associates of the enterprise see Note "VIII. Interests in Other

Entities" other joint ventures or associates that have related party transactions with the Company in

the current period or have a balance of related party transactions with the Company in the previous

period.Joint ventures or associates Relationships with the Company

SEI-Nanjing Putian Optical Network Co. Ltd. Joint ventures

(IV) Other related parties of the Company

Related parties Relationships with the Company

Nanjing Hikvision Digital Technology Co. LTD An affiliated company of the ultimate controlling party

Hangzhou Hikvision Technology Co. LTD An affiliated company of the ultimate controlling party

Nanjing Putian Hongyan Electric Technology Co. LTD An affiliated company of the ultimate controlling party

China Electronics Technology Group Corporation 23rd

Research Institute An affiliated company of the ultimate controlling party

Putian Hi-Tech Industry Co. LTD An affiliated company of the ultimate controlling party

Nanjing Rice Information Technology Co. LTD An affiliated company of the ultimate controlling party

The 14th Research Institute of China Electronics

Technology Group Corporation An affiliated company of the ultimate controlling party

The 28th Research Institute of China Electronics

Technology Group Corporation An affiliated company of the ultimate controlling party

Nanjing Guorui Defense System Co. LTD An affiliated company of the ultimate controlling party

Nanjing Guorui Xinwei Software Co. LTD An affiliated company of the ultimate controlling party

Nanjing Rail Transit System Engineering Co. LTD An affiliated company of the ultimate controlling party

Tianbo Electronic Information Technology Co. LTD An affiliated company of the ultimate controlling party

Nanjing Lop Co. LTD An affiliated company of the ultimate controlling party

CLP Science and Technology Co. LTD An affiliated company of the ultimate controlling party

- 90 -Related parties Relationships with the Company

Hebei Far East Communication System Engineering Co.LTD An affiliated company of the ultimate controlling party

CLP Keteli Communication Technology Co. LTD An affiliated company of the ultimate controlling party

Taiji Computer Corporation Limited An affiliated company of the ultimate controlling party

Putian Rail Transit Technology (Shanghai) Co. LTD An affiliated company of the ultimate controlling party

The Seventh Research Institute of China Electronics

Technology Group Corporation An affiliated company of the ultimate controlling party

Nanjing Lop Technology Co. LTD An affiliated company of the ultimate controlling party

Nanjing Meichen Microelectronics Co. LTD An affiliated company of the ultimate controlling party

CLP Oriental Communication Group Co. LTD An affiliated company of the ultimate controlling party

Orient Communications Co. LTD An affiliated company of the ultimate controlling party

Liyang Twenty-eight System Equipment Co. LTD An affiliated company of the ultimate controlling party

Zhongkexin Integrated Circuit Co. LTD. Nanjing

Branch An affiliated company of the ultimate controlling party

Sun Create Electronics Co. LTD An affiliated company of the ultimate controlling party

Beijing Taiji Information System Technology Co. LTD An affiliated company of the ultimate controlling party

55th Research Institute of China Electronics Technology

Group Corporation An affiliated company of the ultimate controlling party

CLP Rice Information System Co. LTD An affiliated company of the ultimate controlling party

China Putian Information Industry Co. LTD An affiliated company of the ultimate controlling party

China Electronics Technology Finance Co. LTD An affiliated company of the ultimate controlling party

Shanghai Putian Postcom Technology Co. LTD An affiliated company of the ultimate controlling party

Putian Information Technology Co. LTD An affiliated company of the ultimate controlling party

Putian Communications Co. LTD An affiliated company of the ultimate controlling party

CLP Technology (Nanjing) Electronic Information

Development Co. LTD An affiliated company of the ultimate controlling party

Hangzhou Hikvision Digital Technology Co. LTD. Nanjing

branch An affiliated company of the ultimate controlling party

Hangzhou Hongyan Electric Appliance Co. LTD An affiliated company of the ultimate controlling party

Beijing Likang general letter equipment Co. LTD A subsidiary of the company

Nanjing Putian Information Technology Co. LTD An affiliated company of the ultimate controlling party

(V) Related party transactions

1. Purchase of goods receiving of services

Related parties Content of Current period Preceding periodtransaction cumulative comparative

CLP Technology (Nanjing) Electronic Information Telecommunication

Development Co. LTD products 1833079.7

Nanjing Hikvision Digital Technology Co. LTD Telecommunicationproducts 84168.12 1289950.45

- 91 -Hangzhou Hikvision Technology Co. LTD Telecommunicationproducts 61862.75 639084.20

Nanjing Putian Hongyan Electric Technology Co. Telecommunication

LTD products 320518.58

China Electronics Technology Group Corporation

23rd Research Institute Testing fee 5000.00

Putian Hi-Tech Industry Co. LTD Service charge 255471.65

2. Sale of goods rendering of services

Related parties Content of transaction Current period Preceding periodcumulative comparative

Nanjing Rice Information Technology Co. LTD Telecommunicationproducts 11250659.92

The 14th Research Institute of China Telecommunication

Electronics Technology Group Corporation products 9571757.06

The 28th Research Institute of China Telecommunication

Electronics Technology Group Corporation products 4984277.88 9035292.74

Nanjing Guorui Defense System Co. LTD Telecommunicationproducts 3717405.39

Nanjing Guorui Xinwei Software Co. LTD Telecommunicationproducts 3301886.78

Nanjing Rail Transit System Engineering Co. Telecommunication

LTD products 1756286.72 1038659.29

Tianbo Electronic Information Technology Co. Telecommunication

LTD products 1693466.88

Nanjing Lop Co. LTD Service charge 1470258.45 434176.15

CLP Science and Technology Co. LTD Telecommunicationproducts 1242704.44 4213115.06

Hebei Far East Communication System Telecommunication

Engineering Co. LTD products 1234440.72 2142224.08

CLP Keteli Communication Technology Co. Telecommunication

LTD products 396800.90 3150.44

Taiji Computer Corporation Limited Telecommunicationproducts 292513.71 4443100.78

Putian Rail Transit Technology (Shanghai) Co. Telecommunication

LTD products 270357.52

The Seventh Research Institute of China Telecommunication

Electronics Technology Group Corporation products 252293.57

Nanjing Lop Technology Co. LTD Telecommunicationproducts 175932.31

Nanjing Meichen Microelectronics Co. LTD Telecommunicationproducts 173451.35

CLP Oriental Communication Group Co. LTD Telecommunicationproducts 80998.50 52532.81

Orient Communications Co. LTD Telecommunicationproducts 74600.15

Liyang Twenty-eight System Equipment Co. Telecommunication

LTD products 68620.52 359462.86

Zhongkexin Integrated Circuit Co. LTD.Nanjing Branch Contract processing 13391.60 109562.74

CLP Technology (Nanjing) Electronic Telecommunication

Information Development Co. LTD products 10619.47

Beijing Taiji Information System Technology Telecommunication

Co. LTD products 380530.98

55th Research Institute of China Electronics Telecommunication

Technology Group Corporation products 131858.40

CLP Rice Information System Co. LTD Telecommunicationproducts 35018.40

Nanjing Putian Hongyan Electric Technology Telecommunication

Co. LTD products 10619.47

- 92 -3. Our company acts as the lessor

Lease income \ expenses Lease income and

Name of lessee Status of leased assets recognized in the current expenses confirmed in the

period previous period

Nanjing Lop Co. LTD Income from rent andproperty fees 395238.10 395238.10

China Electronics Technology

Group Corporation 14th Research Income from rent andproperty fees 1181215.56Institut

4. The company acts as the lessee：

Lease income \ expenses Lease income and expenses

Name of Lessor Status of leased assets recognized in the current confirmed in the previous

period period

Nanjing Putian Communication

Technology Industrial Park Co. Ltd. Rent and management fee 275229.36 839675.19

5. Related party loans and interest expenses

Name of related party Amount Commencement Maturity Whether the guarantee isguaranteed date date mature

China Electric Power Rui Group

Co. LTD 55.000.000.00 2023-04-03 2026-04-02 NO

China Electric Power Rui Group

Co. LTD 15.000.000.00 2023-06-25 2026-06-24 NO

6. Related party entrusted loan and interest expense

Name of related party Related transaction Current period Preceding periodcontent cumulative comparative

Potevio Company Limited Loan interest 4454856.94 7741475.85

China Electronic Technology Finance Company Interest on long-

Limited term loans 1881791.67

CLP Financial Leasing Co. LTD Other interest 62917.43

7. Key management’s emoluments

Items Current period cumulative Preceding period comparative

Key management’s emoluments 2829012.00 3156438.00

(VI) Balance due to or from related parties

1. Balance due from related parties

Ending balance Opening balance

Items Name of related party

Book balance Bad debtreserve Book balance Bad debt reserve

Bank deposits:

China Electronics Technology

Finance Co. LTD 53098903.02 24074373.95

Accounts

receivable:

Nanjing Rice Information

Technology Co. LTD 10898694.00 108986.94

Shanghai Putian Postcom 8755534.00 8755534.00 8755534.00 8755534.00

- 93 -Ending balance Opening balance

Items Name of related party

Book balance Bad debtreserve Book balance Bad debt reserve

Technology Co. LTD

The 14th Research Institute of

China Electronics Technology 8130279.06 83102.79

Group Corporation

Hebei Far East Communication

System Engineering Co. LTD 7076527.70 452584.61 8058730.63 327755.62

The 28th Research Institute of

China Electronics Technology 5106770.00 187793.30 4111020.00 41110.20

Group Corporation

Putian Information Technology

Co. LTD 6065598.36 6065598.36 6065598.36 3617195.20

Putian Communications Co.LTD 4317924.00 1060171.20 4317924.00 1060171.20

Nanjing Guorui Xinwei

Software Co. LTD 3500000.00 35000.00

China Putian Information

Industry Co. LTD 3222253.45 2926570.09 5519204.83 4357744.25

Nanjing Guorui Defense

System Co. LTD 2722285.85 27222.86

CLP Technology Co. LTD 2085679.20 100536.79 2988000.00 29880.00

Nanjing Rail Transit System

Engineering Co. LTD 1735507.81 39802.46 1455390.41 25822.12

Nanjing Lop Co. LTD 926320.00 9263.20 44000.00 2200.00

Putian Rail Transit Technology

(Shanghai) Co. LTD 395458.66 6454.16 430422.40 4304.22

Taiji Computer Corporation

Limited 261274.32 10416.12 888289.70 8882.90

Nanjing Meichen

Microelectronics Co. LTD 196000.00 1960.00

Sun Create Electronics Co.LTD 135557.43 22896.17 183262.43 26252.98

CLP Ketele Communication

Technology Co. LTD. (CLP) 44838.50 448.39

Tianbo Electronic Information

Technology Co. LTD 31160.00 311.6 416834.00 4168.34

Liyang 28 Suo System

Equipment Co. LTD 54065.80 540.66 190083.00 9504.15

Orient Communications Co.LTD. (Headquarters) 20599.99 206

CLP Technology (Nanjing)

Electronic Information 12000.00 120

Development Co. LTD

Nanjing Lop Technology Co.LTD 7500.00 75

Zhongke Chip Integrated

Circuit Co. LTD. Nanjing 65333.00 653.33

branch

CLP Rice Information System

Co. LTD 38901.80 389.02

CLP East Communication

Group Co. LTD 29900.00 299

55th Research Institute of

China Electronics Technology 14900.00 149

Group Corporation

Subtotal 65701828.13 19895594.70 43573328.56 18272015.53

Notes

Receivable:

- 94 -Ending balance Opening balance

Items Name of related party

Book balance Bad debtreserve Book balance Bad debt reserve

Tianbo Electronic Information

Technology Co. LTD 1709812.62 85490.63

CLP Technology Co. LTD 1772820.00 88641.00

Taiji Computer Corporation

Limited 980897.36 49044.87

Subtotal 1709812.62 85490.63 2753717.36 137685.87

Prepayments:

Hangzhou Hikvision

Technology Co. LTD 57505.00 57505.00

Hangzhou Hikvision Digital

Technology Co. LTD. Nanjing 2766.00 2766.00

Branch

Subtotal 60271.00 60271.00

Other

receivables:

Putian Information Technology

Co. LTD 367800.00 367800.00 367800.00 367800.00

China Putian Information

Industry Co. LTD 1000.00 1000.00 2245100.00 1954305.00

Nanjing Hikvision Digital

Technology Co. LTD 80000.00 4000.00 80000.00 4000.00

CLP Technology Co. LTD 31100.00 1555.00 91100.00 4555.00

Tianbo Electronic Information

Technology Co. LTD 141000.00 7050.00

Hangzhou Hongyan Electric

Appliance Co. LTD 20200.00 1010.00

The 23rd Research Institute of

China Electronics Technology 1500.00 15.00

Group Corporation

Beijing Likang General Letter

Equipment Co. LTD 28912122.71 28912122.71 28912122.71 28912122.71

Subtotal 29392022.71 29286477.71 31858822.71 31250857.71

Total 149962837.48 49267563.04 102320513.58 49660559.11

2. Balance due to related parties

Project name Related Parties Closing balance Opening balance

Accounts payable:：

China Putian Information Industry Co. LTD 14918045.42 18016137.43

Hangzhou Hikvision Technology Co. LTD 504393.96

Putian High-tech Industry Co. LTD 25000.00 25000.00

Subtotal 14943045.42 18545531.39

Contract liabilities:

China Putian Information Industry Co. LTD 3727418.22 4690537.30

The 14th Research Institute of China Electronics

Technology Group Corporation 272253.45

Nanjing Lop Technology Co. LTD 46017.70

Subtotal 4045689.37 4690537.30

- 95 -Project name Related Parties Closing balance Opening balance

Other payables:

Putian High-tech Industry Co. LTD 2993604.93 3981366.18

Nanjing Putian Information Technology Co. LTD 2467412.69 2525332.52

Putian Information Technology Co. LTD 400000.00 400000.00

Putian Communications Co. LTD 200000.00 200000.00

China Putian Information Industry Co. LTD 130927.50 118973.06

China Putian Information Industry Group Co. LTD 9580000.00 9580000.00

Subtotal 15771945.12 16805671.76

XI. Commitments and contingencies

(I) Commitments

As of December 31st 2023 the Company has no material commitments to disclose.(II) Contingencies

As of December 31st 2023 the Company had no material contingencies to disclose.XIII. Events after the balance sheet date

In 2024 the Company expects to dispose of the equity of its subsidiary Nanjing Putian Changle

Communication Equipment Co. LTD. As of the date of the audit report the transfer has not been

completed.XIV. Other significant events

Segment reports

1. Identification basis for reportable segments

Reportable segments are identified based on operating segments which are determined based on the

structure of the Company’s internal organization management requirements and internal reporting

system. The Company identified reportable segments based on products which include video

conferencing products integrated wiring product electrical products wiring products and other

products. Assets and liabilities shared by different segments are allocated pro rata among segments.The Company identified reportable segments based on products assets and liabilities of each

segment are the actual amount of its proportion in assets and liabilities and revenue from main

operations and cost of main operations are those generated or incurred by each product segment.- 96 -2. Financial information of reportable segments

Items Video conferencing Generic cable Intelligent electrical Communications infrastructure Inter-segmentproducts products products products and others offsetting Total

Reven

ue

from

main 253011367.56 368898076.14 101285338.34 121645917.73 -26506325.47

2530113

67.56

operati

ons

Cost of

main

operati 182394755.44 289278557.77 75504884.66 96738570.26 -24231659.46

1823947

55.44

ons

Total

assets 241492240.02 280655124.41 149539569.27 381173687.88

-2414922

226619209.3140.02

Total

liabiliti 142325998.43 167761746.25 94844899.06 469532619.11 - 1423259

es 132043685.68 98.43

XV. Notes to items of parent company financial statements

(I) Accounts receivable

1. Disclosure according to aging

Ages Closing balance Opening balance

Within 1 year 37402082.05 43483236.49

1 to 2 years 20967585.95 25242696.25

2 to 3 years 13476502.08 15354863.60

3 to 4 years 11129447.83 17339579.38

4 to 5 years 13713915.65 54845034.31

Over 5 years 148465760.33 103377145.03

Less: Allowance for doubtful accounts 164641104.04 155462979.31

Total 80514189.85 104179575.75

2. According to the bad debt calculation and withdrawal method classification disclosure

Closing balance

Categories Book balance Provision for bad debts

Amount % to total Amount Provisionproportion (%)

Receivables with provision made on an individual

basis 70104372.00 28.60 70104372.00 100.00

Receivables with provision made on a collective

basis 175050921.89 71.40 94536732.04 54.01

Among them: Combination 1: aging method 173611186.43 99.18 94536732.04 54.45

Combination 2: related parties 1439735.46 0.82

Total 245155293.89 100.00 164641104.04 67.16

- 97 -Opening balance

Categories Book balance Provision for bad debts

Amount % to total Amount Provisionproportion (%)

Receivables with provision made on an individual

basis 68961269.79 26.56 68961269.79 100.00

Receivables with provision made on a collective

basis 190681285.27 73.44 86501709.52 45.36

Among them: Combination 1: aging method 188947762.27 99.09 86501709.52 45.78

Combination 2: related parties 1733523.00 0.91

Total 259642555.06 100.00 155462979.31 59.88

（1）Receivables with provision made on an individual basis

Debtors Book balance Provision for Provisionbad debts proportion (%) Reasons

Dongpo Xi Laos Co. Ltd. 19708086.54 19708086.54 100.00 Unable torecover

China Tower Corporation Limited 17591683.74 17591683.74 100.00 Unable torecover

Mr. Xu 13819926.92 13819926.92 100.00 Unable torecover

Putian Information Technology Co. LTD 4413141.91 4413141.91 100.00 Unable torecover

China Railway Communication Signal Shanghai

Engineering Group Co. LTD 3534579.35 3534579.35 100.00

Unable to

recover

Others 11036953.54 11036953.54 100.00 Unable torecover

Total 70104372.00 70104372.00 100.00

（2）Receivables with provision made on a collective basis

Combination 1: Aging combination

Closing balance Opening balance

Ages Provision for Provision Provision for ProvisionBook balance bad debts proportion (%) Book balance bad debts proportion(%)

Within 1

year 36144924.85 361449.25 1.00 42251540.94 422515.41 1.00

1 to 2

years 20764777.69 1038238.88 5.00 24720638.80 1236031.94 5.00

2 to 3

years 13441752.08 1344175.21 10.00 11437299.07 1143729.91 10.00

3 to 4

years 7211883.30 2163564.99 30.00 17339579.38 5201873.81 30.00

4 to 5

years 12837089.60 6418544.80 50.00 29402291.26 14701145.63 50.00

Over 5

years 83210758.91 83210758.91 100.00 63796412.82 63796412.82 100.00

Total 173611186.43 94536732.04 54.45 188947762.27 86501709.52 45.78

Combination 2: related parties

Ages Closing balance Opening balance

- 98 -Provision for Provision ProvisionBook balance bad debts proportion Book balance

Provision for

(%) bad debts

proportion

(%)

Within 1

year 1257157.20 1211465.55

1 to 2 years 182578.26 522057.45

Total 1439735.46 1733523.00

3. Bad debt provision

Opening Change in current periodCategories Closingbalance Accrual To withdraw Cancel after Other balanceor turn back verification changes

Provision for

bad debts 155462979.31 12591192.33 3413067.60 164641104.04

4. Current significant accounts receivable bad debt reserve transfer or recovery situation

The basis and rationality of

Debtors Book balance Turn back cause Recovery mode determining the ratio of the

original bad debt reserve

China Railway Proceeds from

Communication Signal sales of previous The account age is long and

Shanghai Engineering 1748190.05 years are collect payment it is difficult to collect and

Group Co. LTD recovered in this reconcile the accountperiod

Proceeds from

China Telecom Group sales of previous The account age is long and

Limited Henan branch 1664877.55 years are collect payment it is difficult to collect andrecovered in this reconcile the account

period

Total 3413067.60

5. Details of the top 5 debtors with largest balances

Proportion to the total

Debtors Book balance balance of accounts Provision for bad

receivable (%) debts

Dongpo Xi Laos Co. Ltd. 19708086.54 8.04 19708086.54

Mr. Xu 17591683.74 7.18 17591683.74

China Tower Corporation Limited 13819926.92 5.64 13819926.92

China United Network Communications Co.LTD. Henan branc 8799400.34 3.59 7353303.31

Nanjing Rice Information Technology Co.LTD 8865266.00 3.62 88652.66

Total 68784363.54 28.07 58561653.17

(II)Other receivable

Items Closing balance Opening balance

- 99 -Items Closing balance Opening balance

Dividends receivable 19400000.00 600000.00

Other receivables 20740274.42 24727107.09

Total 40140274.42 25327107.09

1. Dividends receivable

（1）Details

Items Closing balance Opening balance

Nanjing Putian Datang Information Electronics Co. Ltd. 19400000.00 600000.00

2. Other receivable

（1）Other receivable categorized by nature

Items Closing balance Opening balance

Temporary payment receivable 54281249.32 55986690.26

Deposit 4229786.49 7751311.73

Travel allowance 401203.05 442731.30

Others 1133923.15 1721849.52

Less: Allowance for doubtful accounts 39305887.59 41175475.72

Total 20740274.42 24727107.09

（2）Age analysis

Ages Closing balance Opening balance

Within 1 year 859803.13 23014515.42

1 to 2 years 19546598.16 1563414.00

2 to 3 years 1052514.00 1647443.32

3 to 4 years 1522193.51 2415479.37

4 to 5 years 2399479.37 2991891.40

Over 5 years 34665573.84 34269839.30

Less: Allowance for doubtful accounts 39305887.59 41175475.72

Total 20740274.42 24727107.09

（3）Changes in provision for bad debts

Phase I Phase II Phase III

Items 12-month Lifetime expected Lifetime expected Total

expected credit credit losses (credit credit losses

losses not impaired) (credit impaired)

Opening balance 10218687.21 30956788.51 41175475.72

Opening balance in the current

period 10218687.21 30956788.51 41175475.72

- 100 -Phase I Phase II Phase III

Items 12-month Lifetime expected Lifetime expected Total

expected credit credit losses (credit credit losses

losses not impaired) (credit impaired)

--Transferred to phase II

--Transferred to phase III

--Reversed to phase II

--Reversed to phase I

Provision made in the current

period -1890894.52 21306.39 -1869588.13

Provision recovered in current

period

Provision written off in current

period

Other changes

Closing balance - 8327792.69 30978094.90 39305887.59

（4）Provision for bad debts

Opening Change in current periodCategories Closingbalance Accrual To withdraw or Cancel after balanceturn back verification Other changes

Losses on bad

debts 41175475.72 -1869588.13 39305887.59

（5）Details of the top 5 debtors with largest balances

Proportion

to the total

Debtors Nature of Closing balance of Provision forreceivables balance Ages other bad debts

receivables

(%)

Beijing Likangpu Telecommunications Temporary

Equipment Co.Ltd. payment 28912122.71 Over 5 years 48.15 28912122.71receivable

Nanjing Putian Communication Temporary 4-5year179184.19，

Industry Co. Ltd. payment 805545.63 Over 5 years 1.34 805545.63receivable 626361.44

Total 29717668.34 49.49 29717668.34

(III) Long-term equity investments

Closing balance Opening balance

Items

Book balance Provision for Carrying Provision for Carryingimpairment amount Book balance impairment amount

Investments in

subsidiaries 103667928.23 1294510.00 102373418.23 113409068.64 1294510.00 112114558.64

Investments in

associates and 10412689.14 10412689.14 10422321.80 10422321.80

joint ventures

Total 114080617.37 1294510.00 112786107.37 123831390.44 1294510.00 122536880.44

1. Investments in subsidiaries

- 101 -Opening Closing Provision for Closing balanceInvestees balance Increase Decrease balance impairment made of provision forin current period impairment

Nanjing Putian

Changle

Communication 2610457.00 2610457.00

Equipment Co. Ltd.Nanjing Putian

Telege Intelligent 3320003.45 3320003.45

Building Ltd.Nanjing Southern

Telecom Co. Ltd. 33175148.00 33175148.00

Nanjing Mennekes

Electric Co. Ltd. 57831012.71 57831012.71

Nanjing Putian

Datang Information 5436797.07 5436797.07

Electronics Co. Ltd.Nanjing Putian

Communication 1294510.00 1294510.00 1294510.00 1294510.00

Technology Co. LTD

Chongqing Puhua

Information 2000000.00 2000000.00

Technology Co. Ltd.Nanjing Putian

Network Co. LTD 7741140.41 7741140.41

Total 113409068.64 9741140.41 113409068.64 1294510.00

- 102 -2. Investments in associates and joint ventures

Increase/Decrease

Investment Closing

Opening income Adjustment in CashInvestees Changes Closing balance ofbalance Investments Investments recognized other dividend/Profit Provision for balance provision forincreased decreased under equity comprehensive

in other

equity declared for impairment

Others

impairment

method income distribution

I. Joint ventures

SEI-Nanjing Putian

Optical Network 10422321.80 -9632.66 10412689.14

Co. Ltd.Total 10422321.80 -9632.66 10412689.14

- 103 -(IV) Operating revenue/Operating cost

1. Operating income and operating costs are classified by major categories

Current period cumulative Preceding period comparative

Items

Revenue Cost Revenue Cost

I.Main operations 86997690.84 75517253.16 114398871.87 103317341.26

II.Other operations 4391233.26 471932.73 3945565.52 3820744.62

Total 91388924.10 75989185.89 118344437.39 107138085.88

2. Operating income in the current period is classified according to the time of revenue recognition

Revenue recognition time Income from main Other businessbusiness income

Confirm at a certain point 86997690.84 4391233.26

3.Description of performance obligations

The nature Whether it The company The company

Meet Important of the goods is the accepts the accepts the

Projects performance payment the company principal money expected money expected

obligations terms promises to responsible to be returned to to be returned to

transfer person the customer the customer

Pay in

Selling Customers installments

video accept items according to Video

conferencing or sign for the time node conferencing is There is no

Warranty Period

Products Warrantyproducts merchandise agreed in the

contract

4.Description of apportionment to remaining performance obligations

The amount of revenue corresponding to the performance obligations that have been contracted

but not yet performed or completed at the end of this report is 17844800 yuan of which:

17844800 yuan is expected to be recognized in 2024.

(V) Investment income

Items Current period Preceding periodcumulative comparative

Investment income from long-term equity investments under cost method 28553400.00 9153400.00

Investment income from long-term equity investments under equity method -9632.66 128.65

Investment income from disposal of long-term equity investments 4735386.18

Debt restructuring gains 588868.84

Others 340936.63 1104350.78

Total 34208958.99 10257879.43

XVI. Other supplementary information

- 104 -(I) Schedule of non-recurring profit or loss

Previous period amount

Items Amount Before the After the

adjustment adjustment

Profit and loss on disposal of non-current assets including the

write-off part of the asset impairment provision -134939.44 506839.52 506839.52

Government subsidies included in the current profit and loss

(closely related to the business of the enterprise except those

enjoyed in accordance with the national unified standard quota 1441162.29 210513.19 210513.19

or quantitative government subsidies)

Allowance for impairment reversal of receivables tested

separately for impairment 3413067.60

Gains and losses on debt restructuring 588868.84

Other non-operating income and expenses other than those

described above 1049278.58 2896463.54 2896463.54

Other profit and loss items that meet the definition of non-

recurring profit and loss 717457.47 817837.09 817837.09

Minus: Impact of income tax 224119.31 160760.51 160760.51

Amount of influence of minority shareholders 576967.41 426894.09 426894.09

Total 6273808.62 3843998.74 3843998.74

"Other items of profit or loss that meet the definition of non-recurring profit or loss" :

Items Amount involved

Liquidate investment income generated by subsidiaries 717457.47

(II) Return on net assets(RONA) and earnings per share(EPS)

EPS (yuan/share)

Weighted average RONA (%)

Profit of the reporting period Basic EPS Diluted EPS

Current Preceding Current Preceding Current Preceding

period period period period period period

Net profit attributable to shareholders of

ordinary shares -124.58 -114.39 -0.08 -0.22 -0.08 -0.22

Net profit attributable to shareholders of

ordinary shares after deducting non- -170.87 -123.67 -0.11 -0.24 -0.11 -0.24

recurring profit or loss

Board of Directors of

Nanjing Putian Telecommunications Co. Ltd.April26 2024