Ticker:002242StockAbbreviation:Joyoung
JoyoungCo.,Ltd.AbstractoftheAnnualReport2025SectionIImportantStatementsThisisanabstractoftheAnnualReport2025.InvestorsaresuggestedtoreadthecompleteversionoftheAnnualReport2025onthemedia,whichisdesignatedbytheChinaSecuritiesRegulatoryCommission(the“CSRC”)tohaveafullunderstandingofoperationalresults,financialstatements,andfutureplansoftheCompany.ShouldtherebeanyinconsistencybetweentheChineseversionandEnglishversion,theChineseversionshallprevail.AllDirectorswerepresentattheBoardmeetingatwhichthisreportwasconsidered.ModifiedAuditOpinion
□Applicable√N/AThepreliminaryplanfordividenddistributionorconvertingcapitalreservesintosharecapitalforcommonshareholderswhichwereconsideredandapprovedbytheBoard
√Applicable□N/AConvertcapitalreservesintosharecapital
□Yes√No
TheBoardhasconsideredandapprovedthefollowingdividendpayoutplanfortheReportingPeriod:basedontheCompany'stotalsharesof763,017,000,theCompanyshoulddistributeacashdividendofRMB1.5(taxinclusive)and0stockdividend(taxinclusive)per10sharestoalltheshareholdersandshouldnotconvertcapitalreservesintosharecapital.ThepreliminaryplanfordividenddistributionforpreferredsharesinthereportingperiodwasapprovedbytheBoard
□Applicable√N/ASectionIICompanyProfile
1.CompanyInformation
| StockAbbreviation | Joyoung | StockCode | 002242 | |
| StockExchangeWheretheSharesoftheCompanyareListed | ShenzhenStockExchange | |||
| ContactUs | BoardSecretary | SecuritiesRepresentative | ||
| Name | MinxinMIAO | |||
| Address | No.760YinhaiStreet,QiantangDistrict,Hangzhou,ZhejiangProvince | |||
| Tel. | 0571-81639178 | |||
| 002242@joyoung.com | ||||
2.BusinessorProductReviewintheReportingPeriod
1)MajorbusinessEngagedbytheCompanyintheReportingPeriod
IntheReportingPeriod,theCompanycontinuedtofocusontheR&D,production,andsalesofsmallhouseholdappliances.TheCompanymainlyoperatedindependentR&D,design,sales,andself-ownedbrands.IntheReportingPeriod,nosignificantchangesoccurredtotheCompany'sprimarybusiness.TheCompanywasinthematureperiodwithoutvisiblecyclicalfeatures.MajorproductcategoriesoftheCompanyallrankedthetop3acrosstheindustrydomesticallyinChina.
2)SmallHouseholdApplianceIndustryintheReportingPeriod
In2025,facedwithacomplexdomesticandinternationalenvironment,China'seconomydemonstratedstrongresilienceandsoundfundamentalsforhigh-qualitydevelopment.Thenationaleconomyoperatedgenerallysteadily,movingtowardinnovationandoptimization.AccordingtodatareleasedbytheNationalBureauofStatistics,theannualgrossdomesticproduct(GDP)exceededtheRMB140trillionthresholdforthefirsttime,reachingRMB140.19trillion.Calculatedatconstantprices,itincreasedby5.0%comparedwiththepreviousyear[Note1].
Thedemandstructurecontinuedtoimprove,withbothdomesticandinternationalcirculationsworkingincoordination.Thefundamentalroleofconsumptionineconomicgrowthwasfurtherconsolidated,withthecontributionrateoffinalconsumptionexpenditurereaching52.0%.Theupgradingofcommodityconsumptionandthesustainedreleaseofserviceconsumptionproceededinparallel,andtheshareofonlineretailsalesofphysicalgoodsintotalretailsalesofconsumergoodsroseto26.1%.Againstthisbackdrop,variousconsumption-boostingpolicies,includingthehomeappliance“trade-infornew”program,workedinsynergy,effectivelyunderpinningthemomentumofmacroeconomicrecoveryandprovidingasoundpolicyandmarketfoundationforproductreplacementandstructuralupgradinginthesmallhouseholdappliancestockmarket.
Thenationalconsumermarketmaintainedsteadygrowthoverall,withtotalretailsalesofconsumergoodsexceedingRMB50trillion,up3.7%year-on-year[Note2].Themarketfeaturedprominentstructuralcharacteristics,withcategoriescloselyrelatedtotheupgradingofresidents’qualityoflifegrowingfaster.Forexample,retailsalesofhouseholdappliancesandaudio-visualequipmentbyenterprisesabovedesignatedsizeincreasedby11.0%year-on-year.Whilepursuingproductfunctionality,consumerspaidgreaterattentiontointelligence,health,anddesignaesthetics,creatingopportunitiesforenterprisesprovidinghighvalue-addedproducts.
Thesmallhouseholdapplianceindustryhasenteredanewstageofvalue-drivendevelopment,characterizedbymoredisciplinedvolumegrowthanddeepermarketpenetration.AccordingtoAVC’sall-channelaggregateddata,totalretailsalesofkitchensmallhouseholdappliancesin2025reachedRMB63.3billion,ayear-on-yearincreaseof3.8%;theoverallaveragepricewasRMB242,up11.4%year-on-year[Note3].Thistrendpreciselyconfirmstheindustry’sparadigmshiftfromscaleexpansiontostructuralupgrading:staplecategoriessuchasricecookersandelectricpressurecookersachievedsteadymarketperformancesupportedbystabledailydemand;health-orientedproductsincludingsoybeanmilkmakersandhealth-preservingkettlesachievedgrowthagainstthetrendbymeetingconsumerdemandforhealthpreservationandemotionalvalue;productsfeaturingefficientcookingandeasycleaning,suchashands-freeautomatichigh-speedblenders,showedconsiderablegrowthpotential.
Despiteincreasinglyfiercecompetitioninthesmallhouseholdapplianceindustry,themarketstillmaintainedahighlevelofleadingconcentration.AsaleadingenterpriseinChina’ssmallhouseholdapplianceindustry,theCompanywillstaycommittedtoitscorebusiness,continuetobeuser-centricandretail-oriented,driveinnovationbasedonindependentintellectualpropertyrights,graspnewtrends,andseizenewopportunities.
[Note1]2025GDPgrowth:NationalBureauofStatistics(https://www.stats.gov.cn/)
[Note2]Retaildatasources:NationalBureauofStatistics(https://www.stats.gov.cn/)
[Note3]Kitchensmallhouseholdappliancesdatasources:AVC
3)CoreCompetenceAnalysisOverthepastyear,theCompanyhasremainedcommittedtoits"JoyfulHealthyLiving"brandphilosophy,continuouslystrengtheningthebrandvaluesystemencompassing"FamilyKitchen+HopeKitchen+SpaceKitchen".Throughpersistentdedicationtoitscoresmallhouseholdappliancebusiness,theCompanystrivestocreatelong-termvalueforboththeorganizationanditsshareholders.a.AerospaceBreakthroughsShowcaseStrength,SpaceTechnologyDrivesDevelopmentOnOctober31,2025,thesuccessfullaunchoftheShenzhou-21mannedspacecraftdrewsignificantattentiontothenutritionalhealthanddietarysupportforastronautsduringtheirin-orbitmissions.Since2014,theCompanyhasundertakenthedevelopmentofthe"SpaceKitchen"forChina'sspacestation.TheequipmententeredthespacestationaboardtheTianhecoremoduleinApril2021andhassinceoperatedstablyforover1,500days,providingreliablefoodandwatersupportformultiplespacemissions.
Toaddresstheextremeconditionsofspace,theCompanyhasovercomekeytechnicalchallenges,includingefficientheatingandpotablewatersupply.Thedevelopedhotairheatingdeviceutilizes3Dhotaircirculationtechnologytoheatadiverserangeofspacemealswithin30minutes.Thewaterdispenserensuresastronautshavecontinuousaccesstocleandrinkingwateratoptimaltemperatures.TheCompanyremainscommittedtotranslatingitsspacetechnologyexpertiseintohomeapplianceinnovation.Leveragingexpertisegainedfromspaceprograms,ithaslaunchedinnovativeproductsincorporatingspace-derivedtechnologies,includingtheJoyoungTianjingHeatingWaterPurifier,theTitaniumNon-StickCoating-FreeRiceCookerandtheHands-FreeLow-PurineSoyMilkMaker.Theseinnovationscontinuouslyempowerhealthyliving,enhancingproductcompetitivenessandbrandvalue.b.SeizingTrendstoOpenNewFrontiers,Omni-ChannelOperationsBoostGrowthAmidrisinghouseholdincomesandgrowingdemandforqualityliving,theconsumergoodssectorisenteringanewphaseofmulti-tiered,high-qualityconsumption.Thesmallhouseholdapplianceindustryisalsoembracingacycleofhigh-qualitydevelopment.Inresponsetotherapidevolutionofdomesticretailchannels,theCompanyisproactivelycapturingopportunitiesininstantretail,synergisticallyexpandingitspresenceacrossphysicalstores,shelf-basede-commerceplatforms,andcontent-drivene-commercechannels,whilestrategicallypositioningitselfinemergingnichechannels.
Topreciselycatertotheneedsofconsumersinthenewera,theCompanyisintensifyingeffortsintargetedproductdevelopmentandcontentmarketing.ItstrategicallyfocusesonkeycontentplatformssuchasXiaohongshu,Douyin,andWeChatChannels,continuouslyrefiningitscapabilitiesinuserresearch,dataanalysis,contentcreation,andlivestreamingoperations.TheCompanyhasbuiltalivestreamingmatrixcenteredaroundself-operatedbroadcasts,establishingacloseduserloopof"inspiration—purchase—sharing".Thissystemhaseffectivelyenhancedthebrand'sNetPromoterScore(NPS),consistentlycultivatingnewusersandcustomersegmentswhileimprovingconversionefficiencyacrosstheentiremarketingfunnel,therebybringingintelligentandhealthyproductsintomorehouseholds.
Inarapidlyevolvingandincreasinglycompetitivemarketenvironment,theCompany'smanagementwillcontinuetoproactivelyidentifyopportunitiesarisingfromnewcustomersegments,productcategories,andchannels.Drivenbyinnovationandtransformation,theCompanywillpersistentlydeepenitseffortsinuserresearch,technologicalinnovation,productoperations,channelcollaboration,andbrandbuilding,continuouslyenhancingitsrefinedoperationalcapabilitiestocomprehensivelypromotequalityimprovement,efficiencygains,andsustainabledevelopment.
c.Health-DrivenDevelopment,InnovationLeadstheFuture
For32years,Joyounghasbeendeeplyengagedintechnologicalinnovation,accumulating15,070patents,includingmorethan1,150inventionpatents.Everytechnologicalbreakthroughandproductinnovationstemsfromprofoundinsightsintohealthyqualityliving.AsaleadingbrandinChina'ssmallhouseholdapplianceindustry,theCompanyisconfidentinitsfuturedevelopmentandwillcontinuouslyenhanceitsprofessional,efficient,andforward-lookingoperationalcapabilities.With"health"and"innovation"asitsbrandDNA,theCompanynotonlylaunchesflagshipproductsleadingindustrytrendsbutalsostrengthenstechnologicalapplicationsinentry-levelpricesegments,achievingfullprice-rangecoverageanddifferentiatedcompetition.Itiscommittedtoimprovingthebrand'sNPS,marketshare,andproductpenetrationrate.TheCompanyalwaysupholdsitsoriginalaspirationforhealth,bringingconveniencetousers'"Familykitchen"withinnovativetechnologiesandproducts,improvingnutritionandmealsforover600,000ruralschoolchildreninmorethan1,743"PublicWelfareKitchens",andenhancingthedietaryandwaterqualityofastronautsontheChinaSpaceStation.Lookingahead,Joyoungwillcontinuetofocusonitscorebusiness,buildingauniquebrandvalueof"FamilyKitchen+HopeKitchen+SpaceKitchen",andconsistentlyfulfillingitslong-termvaluecommitmentstoshareholdersandsociety.
4)MajorBusinessAnalysis
Revenuein2025wasRMB8,209.76million,adecreaseof7.23%yearonyear.Amidshiftsintheindustrylandscape,theCompanyhasactivelyoptimizeditsproductportfolio.Whilemaintainingoperationalresilienceinitstraditionalcorecategories,ithassteadilynurturednewlydevelopedsegments.
Fortheyearof2025,operatingcostsnarroweddownby8.80%yearonyeartoRMB6,012.02million.Grossprofitmarginincreasedby1.27percentagepointsyearonyear.
SellingexpensesamountedtoRMB1,391.58million,downby7.61%yearonyear,withsalesexpenseratioat16.95%,downby0.07percentagepointsyearonyear;GeneralandadministrativeexpensesamountedtoRMB381.13million,downby0.88%yearonyear,withG&Aratioat4.64%,upby0.30percentagepointsyearonyear;ResearchanddevelopmentexpensesamountedtoRMB302.97million,downby16.07%yearonyear.
Duringthereportingperiod,thenumberofnewlyaddedpatentapplicationswas1,005(including139patentapplicationsforinvention,677applicationsforutilitymodeland189applicationsforappearancedesign),andasoftheendofthereportingperiod,theCompanyownedatotalof15,070patents(including1,150patentsforinvention,12,106patentsforutilitymodelsand1,814patentsforappearancedesign).
In2025,totalprofitreachedRMB97.54million,representingayear-on-yearincreaseof98.76%,andnetprofitattributabletoshareholdersoflistedcompanieswasRMB117.65million,representingayear-on-yeardecreaseof3.85%.
In2025,netcashflowgeneratedfromoperatingactivitieswasRMB715.01million,representinganincreaseof302.69%year-on-year.
5)OutlookfortheCompany'sFutureDevelopmenta.FutureDevelopmentStrategyandBusinessOperationPlanfortheNextYear
Inarapidlyevolvingmarketenvironmentmarkedbyintensifyingcompetitionandheighteneduncertainty,theCompany’sleadershipwillproactivelycaptureemergingopportunitiesacrossnewconsumersegments,productcategories,saleschannels,andbusinessdomains.Byembracingpioneeringinitiativesanddrivingtransformativestrategies,theCompanywillcontinuetostrengthenitscorecompetenciesinuserinsights,technologicalinnovation,productoperations,channelmarketing,andbrandpromotion.Aheightenedfocusonprecision-drivenoperationalcapabilitieswillbeprioritizedtoachieve
comprehensivequalityandefficiencyenhancementacrosstheorganization.Ashouseholdincomelevelscontinuetoriseanddemandforpremiumlifestyleexperiencesescalates,theconsumergoodsindustryistransitioningintoamulti-tierederaofquality-drivenconsumption.Thesmallhouseholdappliancesectorinparticularisenteringanewcycleofhigh-qualitydevelopment.Consumerexpectationsnowincreasinglyemphasizeproductswithpremiumquality,aestheticappeal,cost-effectiveness,andhealth-orientedfunctionalities,whileprioritizingattributessuchaspersonalization,smarttechnologyintegration,andenvironmentalsustainability.Asaleadingdomesticsmallhouseholdappliancebrand,theCompanywillremaindedicatedtoitscorebusiness,adheretoauserdemand-orientedapproach,andconsolidateandexpandthedevelopmentspaceofitsadvantageouscategoriesandessentialmainstreamcategories.TheCompanyimprovesthesuccessrateofproductinnovationbydeepeningconsumerinsights,developspractical,user-friendlyandhigh-qualityproductsthroughtechnologicalinnovation,andstrengthensuserengagement,enhancesserviceexperienceandcontinuouslyimprovesthebrand’sNetPromoterScore(NPS)throughbrandempowerment,contentcreation,in-depthO2Ochannelintegrationandrefinedchanneloperation.
Inthefuture,theCompanywillcontinuetostrengthenitsbrandassetsof“FamilyKitchen”,“HopeKitchen”and“SpaceKitchen”,steadilydevelopproductlinesincludingkitchensmallappliances,waterappliancesandcookingutensils,andstrivetobecomealeadingenterpriseoffull-categoryhigh-qualitysmallhomeappliances,soastocreatesustainablevaluereturnsfortheCompanyanditsshareholders.b.RisksFacedbytheCompanyandCountermeasuresI.Industry-relatedrisks
Inrecentyears,China’seconomyhasshiftedfromaphaseofrapidgrowthtohigh-qualitydevelopment.Therisingpursuitofhigh-qualitylifehascreatedsounddevelopmentopportunitiesforthedomesticsmallhouseholdapplianceindustry.However,withthecontinuousreleaseofmarketpotential,anincreasingnumberofcompetitorshaveenteredthesector,leadingtointensifyingindustrycompetition.Thishasalsobroughtaboutindustry-wideriskssuchasunevenproductquality,anincreasinglysaturatedmarket,andnormalizedirrationalpricecompetition,whichnotonlyimpairconsumerexperiencebutalsosqueezetheoverallprofitmarginofenterprises.
AlthoughtheCompanyholdsaleadingpositioninChina’skitchensmallappliancesector,italsofacestheabovechallengesandpressures.Toaddresstheserisks,theCompanyalwaysadherestoauser-centricapproach,continuouslyincreasesinvestmentintechnologicalinnovation,strengthensintellectualpropertyprotection,promotesdifferentiatedproductdesign,andactivelylauncheshigh-qualityproductsthatbettermeettheexpectationsofconsumersinthenewera.II.Businessrisksi.Riskofrawmaterialpricefluctuation
TherawmaterialsexternallyprocuredbytheCompanyprimarilyincludeiron,stainlesssteel,aluminum,copper,andplastics,whileexternallysourcedcomponentsmainlyconsistofmotors,panels,integratedcircuits,etc.Therequiredrawmaterialsandcomponentsinvolvenumerousspecificationswithdispersedusagedemands,andthereisnoover-concentrationonanysinglematerialtypeorcategory.However,priceincreasesintheaforementionedrawmaterialscoupledwithrisinglogisticsandpackagingcostsmayadverselyimpacttheCompany'sprofitability.Toaddressthis,theCompanywillimplementscientificadjustmentstoitssupplychainnetwork,optimizeproductstructuraldesigns,consolidateandrefineprocurementchannels,andcomprehensivelyreduceproductioncosts,therebyachievingcostefficiencyimprovements..ii.Managementrisksarisingfromproductdiversification
TheCompanyhassuccessfullytransitionedfromthe"Joyoung=SoymilkMaker"identityto"Joyoung=QualityLifeSmallHomeAppliances"throughstrategicandbrandenhancementinitiatives,establishingadiversifiedproductportfoliotoexplorebroadermarketopportunities.However,thisproductdiversificationandexpansionsimultaneouslyimposeheighteneddemandsacrossvariousoperationalaspects,includinginternalmanagement,qualitycontrol,marketingeffectiveness,technologicalinnovation,andhumanresourceallocation.ShouldtheCompanyfailtopromptlyenhanceitsinstitutionalframeworksoradequatelyrecruitanddeployspecializedprofessionals,operationalrisksmayemerge.Tomitigatetheserisks,theCompanywillimplementcomprehensivemeasurestostrengthenoperationalmanagementquality.Theseincludedeployingintelligentinformationmanagementsystems,developingscientificallygroundedmanagementprotocols,recruitingandnurturingprofessionaltalent,andrefininginternalincentive-disciplinemechanisms.iii.RiskofproductqualityproblemsSincetheuseofhomeappliancesiscloselyrelatedtopersonalsafety,especiallytheCompany'smainproductsdirectlyaffectconsumers'foodsafetyandhomeenvironment,thequalityrequirementsforsmallhomeapplianceswillbemorestringent.Aftermorethan30yearsofaccumulation,theCompanyhasestablishedasetofcompleteandstrictinternalcontrolprocessinqualitycontrol,andeffectivelypreventpotentialqualityproblemsthatmayoccurintheproductionprocess.
3.KeyAccountingDataandFinancialIndicators
1)KeyAccountingDataandFinancialIndicatorsinRecentThreeYears
WhethertheCompanyperformedaretroactiveadjustmenttoorrestatementofaccountingdata
□Yes√No
Unit:RMBYuan
| Asof31December,2025 | Asof31December,2024 | YoYchange(%) | Asof31December,2023 | |
| Totalassets | 7,794,224,747.51 | 7,586,185,728.31 | 2.74% | 7,612,080,030.42 |
| NetassetsattributabletoshareholdersoftheCompany | 3,433,241,112.10 | 3,485,895,659.65 | -1.51% | 3,471,347,161.90 |
| 2025 | 2024 | YoYchange(%) | 2023 | |
| Operatingrevenues | 8,209,763,125.36 | 8,849,314,724.78 | -7.23% | 9,612,788,761.39 |
| NetProfitattributabletoshareholdersoftheCompany | 117,645,794.97 | 122,351,668.35 | -3.85% | 389,046,168.90 |
| NetprofitattributabletoshareholdersoftheCompanybeforenon-recurringgainsandlosses | 211,536,770.90 | 118,570,698.62 | 78.41% | 352,837,004.30 |
| Netcashflowsfromoperatingactivities | 715,008,988.97 | 177,560,361.37 | 302.69% | 763,320,596.41 |
| Basicearningspershare(RMBYuan/share) | 0.16 | 0.16 | 0.00% | 0.52 |
| Dilutedearningspershare(RMBYuan/share) | 0.16 | 0.16 | 0.00% | 0.52 |
| Weightedaveragereturnonnetassets | 3.41% | 3.54% | -0.13% | 11.54% |
2)MainAccountingDatabyQuarter
Unit:RMBYuan
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenues | 1,999,944,950.10 | 1,987,067,883.83 | 1,598,088,948.43 | 2,624,661,343.00 |
| NetProfitattributabletoshareholdersoftheCompany | 101,488,347.36 | 21,242,689.94 | 854,630.27 | -5,939,872.60 |
| NetprofitattributabletoshareholdersoftheCompanybeforenon-recurringgainsandlosses | 106,503,121.32 | 80,543,966.12 | 5,429,104.05 | 19,060,579.41 |
| Netcashflowsfromoperatingactivities | 245,581,933.84 | 86,254,774.85 | 15,195,079.63 | 367,977,200.65 |
Whethertherearesignificantdifferencesbetweentheabovefinancialdataorthetotalvaluepreviouslydisclosedquarterlyorinterimreports.
□Yes√No
4.ShareholdersandShares
1)Totalnumberofcommonshareholdersandpreferredshareholderswithresumedvotingrights,andshareholdingsofthe
toptencommonshareholders
Unit:share
| TotalnumberofcommonshareholdersattheendoftheReportingPeriod | 46,043 | Totalnumberofcommonshareholdersattheendofthepreviousmonthofthedisclosuredateofthisreport | 42,870(asofFeb.27th.2026) | TotalnumberofpreferredshareholderswithresumedvotingrightsattheendoftheReportingPeriod | 0 | Totalnumberofpreferredshareholderswithresumedvotingrightsattheendofthepreviousmonthofthedisclosuredateofthisreport | 0 | |||
| Top10commonshareholders(Excludingshareslentoutthroughsecuritiesrefinancing) | ||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Numberofrestrictedsharesheld | Pledgedorfrozenshares | |||||
| Status | Number | |||||||||
| ShanghaiLihongEnterpriseManagementLimited | Domesticnon-state-ownedcorporation | 50.40% | 384,523,746 | 0 | N/A | 0 | ||||
| JSGlobalCapitalManagementLimited | Foreigncorporation | 17.03% | 129,924,090 | 0 | N/A | 0 | ||||
| JoyoungESOPPlan(Phase1) | Others | 2.01% | 15,313,800 | 0 | N/A | 0 | ||||
| CentralHuijinInvestmentLtd. | State-ownedcorporation | 1.47% | 11,201,233 | 0 | N/A | 0 | ||||
| HongKongSecuritiesClearingCo.,Ltd. | Foreigncorporation | 0.69% | 5,298,086 | 0 | N/A | 0 | ||||
| CPIC-Dividend-PersonalDividend | Others | 0.40% | 3,045,512 | 0 | N/A | 0 | ||||
| ChinaMerchantsBankCo.,Ltd.-SouthernAssetManagementCSI1000ETF | Others | 0.37% | 2,794,437 | 0 | N/A | 0 | ||||
| WangYingxin | DomesticNaturalPerson | 0.24% | 1,864,800 | 0 | N/A | 0 | ||||
| ChinaMerchantsBankCo.,Ltd.-HuaxiaAssetManagementCSI1000ETF | Others | 0.23% | 1,769,519 | 0 | N/A | 0 | ||||
| JiangZhenjun | DomesticNaturalPerson | 0.22% | 1,710,100 | 0 | N/A | 0 | ||||
| Relatedoracting-in-concertpartiesamongshareholdersabove | InApril2019,theshareholdingstructureofBiltingDevelopmentsLimitedchanged.MR.XuningWANG,theactualcontrolleroftheCompany,becametheactualcontrollerofBiltingDevelopmentsLimited(SeeReportNo.2019-027oftheCompanyonwww.chinainfo.com.cn.).Asaresult,ShanghaiLihongEnterpriseManagementCo.,Ltd.andBiltingDevelopmentsLimited,bothcontrolledbyMr.XuningWANG,aredefinedasacting-in-concertpartiesbytheAdministrativeMeasuresfortheTakeoverofListedCompanies.Otherthantheaforementionedrelatedandacting-in-concertparties,theCompanyisuncertainaboutwhethertherearerelatedoracting-in-concertpartiesamongshareholdersabove.InJuly2024,BILTINGDEVELOPMENTSLIMITEDchangeditsnametoJSGlobalCapitalManagementLimited,whichisstillapartyactinginconcertwiththecontrollingshareholderoftheCompany,ShanghaiLihongEnterpriseManagementCo.,Ltd.TheaforementionedchangedoesnotinvolveanyequitychangeoftheCompany’scontrollingshareholderandhasnoimpactontheCompany'soperatingactivities,andtherehasbeennochangeintheCompany'scontrollingshareholderanddefactocontroller. |
| Explanationoncommonshareholdersparticipatinginsecuritiesmargintrading(ifany) | JiangZhenjunholds0sharesoftheCompanythroughanordinarysecuritiesaccountand1,710,100sharesthroughacreditsecuritiesaccount,withatotalof1,710,100sharesoftheCompany. |
Shareholdersholdingmorethan5%ofshares,top10shareholders,andtop10holdersofunrestrictedtradablesharesparticipatinginsecuritieslending.
□Applicable√NotapplicableChangesinthetop10shareholdersandtop10holdersofunrestrictedsharesduetosecuritieslending/returningactivitiescomparedtothethirdquarter
□Applicable√Notapplicable
2)TotalNumberofPreferredShareholdersandTOP10PreferredShareholdersandTheirShareholdings
□Applicable√Notapplicable
3)DisclosethepropertyrightsandcontrolrelationshipbetweentheCompanyandtheactualcontrollerinblockdiagram
form
5.InformationonBondsOutstandingasoftheApprovalDateoftheAnnualReport
□Applicable√NotapplicableSectionIIIImportantIssues
1.EquityDistributionTheCompanyheldthe13thmeetingofthe6thsessionoftheBoardofDirectorsonMarch26,2025,atwhichthe2024profitdistributionplanwasreviewedandapproved.Basedonthetotalsharecapitalof763,017,000shares,whichwascalculatedbydeducting4,000,000sharesheldinthespecialrepurchasesecuritiesaccountfromthetotalsharecapitalof767,017,000sharesonthedateoftheprofitdistributionproposaldisclosure,theCompanyplannedtodistributeacashdividendofRMB1.5per10shares(taxinclusive)toallshareholders,withoutissuingstockdividendsandwithoutconvertingcapitalreserveintosharecapital.OnApril21,2025,theaboveproposalwasreviewedandapprovedatthe2024annualgeneralmeetingoftheCompany.TheprofitdistributionplanwasfullyimplementedonMay15,2025.
2.EmployeeStockOwnershipPlan(ESOP)
OnMarch26,2025,the6thmeetingoftheManagementCommitteeofthePhaseIESOPoftheCompanyreviewedandapprovedthe“ProposalontheCustodyoftheUnlockingSharesCorrespondingtotheThirdUnlockingPeriodofthePhaseIESOPThatFailtoMeetthePerformanceAppraisal”.Inlightoftheperformanceappraisalresultsforthethirdunlockingperiod,itwasdiscussedanddecidedbytheManagementCommitteeoftheESOPthat2,287,500sharescorrespondingtothethirdunlockingperiodoftheESOP(accountingfor0.30%ofthetotalsharecapitaloftheCompany)shallnotbeunlockedduetofailuretomeettheperformanceappraisalrequirements.
Duringthereportingperiod,someparticipantsoftheESOPresignedfromtheCompany.InaccordancewiththerelevantprovisionsofthePhaseIESOP,theManagementCommitteeoftheESOPwithdrewatotalof1,425,000sharesheldbysuchparticipants.Theabove-mentionedsharesshallbewithdrawnandkeptintemporarycustodybytheManagementCommittee
upontheexpiryofthelock-upperiod.Inthefuture,theManagementCommitteemayreallocatesuchinterestsbasedonactualneeds,orsellsuchsharesatanappropriatetime,withtheremainingproceedsattributabletothelistedcompany.
3.ProgressintheImplementationofShareRepurchaseTheCompanyheldthe15thmeetingofthe6thsessionoftheBoardofDirectorsonJune23,2025,andreviewedandapprovedthe“ProposalonChangingthePurposeofRepurchasedSharesandCancelingSuchShares”with6votesfor,0votesagainstand0votesabstained.Itproposedtochangethepurposeof4,000,000sharesheldinthespecialrepurchasesecuritiesaccount,whichwereoriginallyplannedtobe"usedfortheimplementationofequityincentiveplansoremployeestockownershipplans",to"usedforcancellationtoreduceregisteredcapital".
TheCompanyheldthefirstextraordinarygeneralmeetingof2025onJuly11,2025,andreviewedandapprovedthe“ProposalonChangingthePurposeofRepurchasedSharesandCancelingSuchShares”bywayofspecialresolution.Thenumberofrepurchasedsharestobecanceledthistimeis4,000,000shares,accountingfor0.52%ofthetotalsharecapitaloftheCompanybeforecancellation,withtheactualrepurchaseandcancellationamountofRMB68,026,879.84(excludingtransactionfees).Uponcompletionofthecancellation,thetotalsharecapitaloftheCompanywaschangedfrom767,017,000sharesto763,017,000shares.
OnJuly25,2025,theCompanycompletedthecancellationproceduresfortheabove4,000,000repurchasedsharesattheShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.ThecancellationoftherepurchasedshareswillnothaveamaterialimpactontheCompany'sfinancialpositionandoperatingresults.Thenumberofrepurchasedsharescanceled,thecompletiondateandthecancellationperiodallcomplywiththerequirementsofrelevantlawsandregulations.