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内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021

内容: Luxshare Precision Industry Co., Ltd.

内容: Annual Report 2021

内容: April 2022

内容: This document is a translated version of the Chinese version Annual Report 2021 of Luxshare Precision Industry Co.,Ltd.(“《立讯精密 2021 年年度报告》”),and the published Annual Report 2021 of Luxshare Precision Industry Co.,Ltd.in the Chinese version shall prevail. The complete published Chinese Annual Report 2021 of Luxshare Precision Industry Co.,Ltd. may be obtained at www.cninfo.com.cn.

内容: Section I Important Note, Table of Contents and Definitions

内容: The Board of Directors, the Board of Supervisors, directors, supervisors and executives of the Company hereby warrant that the information contained in this Annual Report is true, accurate and complete and this Annual Report is free from any misrepresentation, misleading statement or material omission, and agree to assume joint and several liability for this Annual Report. WANG Laichun, Principal of the Company, CFO WU Tiansong and Chief Accountant CHEN Huiyong hereby represent that the financial statements contained in this Annual Report are true, accurate and complete. All directors of the Company attended the meeting of the Board of Directors reviewing this Report. The relevant risks facing the Company are set out in “Section III Management’s Discussion and Analysis - XI. Prospects for future development of the Company”. According to the profit distribution proposal approved by the Board of Directors, the Company will distribute a cash dividend of RMB1.10 (inclusive of tax) per 10 shares to all shareholders on the basis of 7,084,301,477 shares, and will not distribute any bonus shares or transfer any capital reserve to the share capital for the reporting period.

内容: Table of Contents

内容: List of References

内容: 1. 2. 3. 4. Financial statements signed and chopped by the principal, CFO and Chief Accountant of the Company; Original of the auditor’s report stamped with the seal of the accounting firm and signed and chopped by the certified public accountants; Originals of all documents of the Company publicly disclosed on the website for information disclosure designated by the China Securities Regulatory Commission during the reporting period and related announcements; and Other references.

内容: Definitions

内容: Terms We/us, the Company or Luxshare-ICT Luxshare Limited ICT-Lanto Luxshare Precision Luxshare Jiangsu Luxshare Shanxi Luxshare Dongguan Luxshare Suzhou Luxshare Chuzhou Luxshare Kunshan Luxshare Baoding Luxshare Xuancheng Luxshare Yancheng Luxshare Enshi Luxshare Vietnam Luxshare Van Trung Luxshare Nghe An Luxshare Electroacoustic Luxshare Smart Manufacturing Luxshare-Merry ASAP Jiangxi Xiexun Jiangxi Smart Manufacturing Jiangxi Lanto Bozhou Xuntao Bozhou Meite Suzhou Huzhou Jiuding Lanto Kunshan Kunshan RF Liding Dongguan Rikai Yancheng Xiexun Wan’an Smart Manufacturing Changshu Fujian JK Xingning Electronics Luxsan Kunshan BCS Suzhou SpeedTech Definition means Luxshare Precision Industry Co., Ltd. means Luxshare Limited, founder and controlling shareholder of Luxshare-ICT. means ICT-Lanto Limited. means Luxshare Precision Limited. means Luxshare Precision Industry (Jiangsu) Co., Ltd. means Shanxi Luxshare Precision Industry Co., Ltd. means Dongguan Luxshare Precision Industry Co., Ltd. means Luxshare Precision Industry (Suzhou) Co., Ltd. means Luxshare Precision Industry (Chuzhou) Co., Ltd. means Kunshan Luxshare Precision Industry Co., Ltd. means Luxshare Precision Industry (Baoding) Co., Ltd. means Xuancheng Luxshare Precision Industry Co., Ltd. means Yancheng Luxshare Precision Industry Co., Ltd. means Luxshare Precision Industry (Enshi) Co., Ltd. means Luxshare-ICT (Vietnam) Limited. means Luxshare-ICT (Van Trung) Company Limited. means Luxshare-ICT (Nghe An) Limited. means Shenzhen Luxshare Electroacoustic Technology Co., Ltd. means Luxshare Smart Manufacturing (Zhejiang) Co., Ltd. means Guangdong Luxshare-Merry Electronics Co., Ltd. means ASAP Technology (Jiangxi) Co., Ltd. means Xiexun Electronic (Ji’an) Co., Ltd. means Jiangxi Luxshare Smart Manufacturing Co., Ltd. means Bozhou Lanto Electronic Limited. means Bozhou Xuntao Electronic Limited. means Meite Technology (Suzhou) Co., Ltd. means Huzhou Jiuding Electronic Co., Ltd. means Lanto Electronic Limited. means Kunshan Luxshare Radio Frequency Technology Co., Ltd. means Liding Electronic Technology (Dongguan) Co., Ltd. means Rikai Precision Technology (Yancheng) Co., Ltd. means Wan’an Xiexun Electronic Co., Ltd. means Changshu Luxshare Smart Manufacturing Co., Ltd. means Fujian JK Wiring Systems Co., Ltd. means Xingning Luxshare Electronics Co., Ltd. means Luxsan Technology (Kunshan) Co., Ltd. means BCS Automotive Interface Solutions (Suzhou) Co., Ltd. means SpeedTech Corp.

内容: Luxshare Automation Jiangsu Dongguan Luxshare Technology Luxshare Electronic Kunshan Luxshare Electronic Enshi AOA means Luxshare Automation (Jiangsu) Co., Ltd. means Dongguan Luxshare Technology Co., Ltd. means Luxshare Electronic Technology (Kunshan) Co., Ltd. means Luxshare Electronic Technology (Enshi) Co., Ltd. means Articles of Association of Luxshare Precision Industry Co., Ltd.

内容: Section II Company Profile and Financial Highlights

内容: I. Company profile

内容: Stock short name Stock exchange Chinese name Chinese short name English name (if any) English short name (if any) Legal representative Registered address Postal code of registered address History of changes in registered address Office address Postal code of office address Company website Email Luxshare-ICT Shenzhen Stock Exchange 立讯精密工业股份有限公司 立讯精密 Luxshare Precision Industry Co., Ltd. Luxshare-ICT WANG Laichun 2/F, Block A, Sanyang New Industrial Zone, West Haoyi, Shajing Street, Baoan District, Shenzhen 518104 N/A No. 313 Beihuan Road, Qingxi Town, Dongguan, Guangdong 523642 www.luxshare-ict.com Public@luxshare-ict.com Stock code 002475

内容: II. Contact person and contact information

内容: Board Secretary Name Address Telephone Fax E-mail HUANG Dawei Dongguan, Guangdong 0769-87892475 0769-87732475 David.Huang@luxshare-ict.com Securities Affairs Representative LI Ruihao Dongguan, Guangdong 0769-87892475 0769-87732475 Ray.Li@luxshare-ict.com

内容: No. 313 Beihuan Road, Qingxi Town, No. 313 Beihuan Road, Qingxi Town,

内容: III. Media for information disclosure and place for keeping annual report

内容: Website of the stock exchange disclosing the Company’s annual report Place for keeping annual report Securities Times

内容: Media and website disclosing the Company’s annual report www.cninfo.com.cn Securities Affairs Office of the Company

内容: IV. Changes in registration particulars

内容: Change in organization code Unified social credit code: 91440300760482233Q

内容: Changes in main business since the listing No

内容: of the Company (if any) Changes in controlling shareholder (if any) No

内容: V. Other related information

内容: Accounting firm engaged by the Company: Name of accounting firm Office address of accounting firm Name of accountants signing this report BDO China Shu Lun Pan Certified Public Accountants LLP Rooms 1, 2 & 3, 4/F, No. 61 East Nanjing Road, Huangpu District, Shanghai LI Jing and WEI Gang

内容: Sponsor engaged by the Company that performs the duties of ongoing supervision over the Company during the reporting period: √ Applicable □ N/A Name of sponsor CITIC Securities Co., Ltd. Office address of sponsor Names of sponsor representatives and Period of ongoing supervision LIU From December 2, 2020 to December 31, 2021

内容: 19/F, North Tower, Excellence Times HE Feng Plaza (Phase II), No. 8 3rd Central Guanzhong Road, Futian District, Shenzhen

内容: Financial advisor engaged by the Company that performs the duties of ongoing supervision over the Company during the reporting period □ Applicable √ N/A

内容: VI. Key accounting data and financial indicators

内容: Operating revenue (RMB) Net profit attributable to shareholders of the listed company (RMB) Net profit attributable to shareholders of the listed company after deduction of extraordinary gain or loss (RMB) Net cash flows from operating activities (RMB) Basic earnings per share (RMB/share) Diluted earnings per share (RMB/share) Weighted average return on net assets Total assets (RMB) Net assets attributable to shareholders of the listed company (RMB)

内容: Whether the lower of the net profit before and after deduction of extraordinary gain or loss in the past three accounting years has

内容: been negative and the most recent annual auditor’s report indicates that the Company’s ability to continue as a going concern is uncertain? □ Yes √ No Whether the lower of the net profit before and after deduction of extraordinary gain or loss is negative? □ Yes √ No

内容: VII. Differences in accounting data arising from adoption of Chinese and foreign accounting standards concurrently

内容: 1. Differences in net profit and net assets disclosed in the financial statements prepared according to the international accounting standards and the Chinese accounting standards

内容: □ Applicable √ N/A There was no difference in net profit and net assets disclosed in the financial statements for the reporting period prepared according to the international accounting standards and the Chinese accounting standards.

内容: 2. Differences in net profit and net assets disclosed in the financial statements prepared according to the foreign accounting standards and the Chinese accounting standards

内容: □ Applicable √ N/A There was no difference in net profit and net assets disclosed in the financial statements for the reporting period prepared according to the foreign accounting standards and the Chinese accounting standards.

内容: VIII. Main quarterly financial indicators

内容: In RMB Operating revenue Net profit attributable to shareholders of the listed company Net profit attributable to shareholders of the listed company after deduction of extraordinary gain or loss Net cash flows from operating activities First quarter 21,019,011,536.13 1,349,512,048.43 Second quarter 27,127,972,915.37 1,739,717,980.42 Third quarter 32,865,598,826.82 1,600,431,354.99 Fourth quarter 72,933,514,512.08 2,380,859,002.73

内容: Whether there’s any significant difference between the financial indicators set forth above or aggregate amounts thereof and the corresponding financial indicators contained in any quarterly or semi-annual report already disclosed? □ Yes √ No

内容: IX. Items and amounts of extraordinary gains or losses

内容: √ Applicable □ N/A In RMB

内容: Item Gain or loss on disposal of non-current assets (including allowance for impairment of assets that has been written off) Government grants recognized in profit or loss (excluding government grants that are closely related to the business of the Company and are provided in fixed amount or quantity continuously according to the applicable polices of the country) 2021 -57,241,855.39 2020 2019 Remark

内容: Interest in the fair value of the acquirees’ identifiable net assets at the date of acquisition in excess of the investment cost of the relevant subsidiaries, associates and joint ventures

内容: Difference between the original carrying amount of long-term investment and fair value of newly consolidated subsidiaries upon change from the equity method to the cost method 113,778,335.78 89,722,710.32

内容: Gain or loss on assets under entrusted investment or management Gain or loss on changes in fair value of financial assets held for trading and financial liabilities held for trading, and gain on disposal of financial assets held for trading, financial liabilities held for trading and available-for-sale financial assets, except for effective hedges held in the ordinary course of business Other non-operating income and expenses Other gain or loss within extraordinary gain or loss the meaning of

内容: -999,739.32 Mainly gain on derecognition of 0.00 financial assets at amortized cost 55,533,801.99 9,305,165.76 277,846,535.49 --

内容: Less: Effect of income tax Effect of minority interest (after tax) Total

内容: Other items of gain or loss within the meaning of extraordinary gains or losses: □ Applicable √ N/A We do not have any other item of gain or loss within the meaning of extraordinary gains or losses. If the Company classifies any item of extraordinary gain or loss defined by or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Publicly Offering Securities - Extraordinary Gain or Loss as recurrent profit or loss, please explain the reason. □ Applicable √ N/A We have not classified any item of extraordinary gain or loss defined by or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Publicly Offering Securities - Extraordinary Gain or Loss as recurrent profit or loss in the reporting period.

内容: Section III Management’s Discussion and Analysis

内容: I. Situations of our industry in the reporting period

内容: During the reporting period, we are engaged in the research and development (R&D), manufacturing and sale of products in the fields of consumer electronics, communication, automotive electronics and healthcare, among others. Our products and businesses are diversified and vertically integrated, and cover components, modules and system assembly. (I) Consumer electronics In the industry of consumer electronics, the development and innovation of applied technologies and diversified growth of consumer demands jointly promote the upgrading of consumer electronic products and related product lines, and continued growth of the consumer electronics market size. According to Statista, the global consumer electronics market size grew at a compound annual growth rate (CAGR) of 2.90% from 2015 to 2020, and is expected to reach USD1,098 billion in 2025. The advancement of 5G and artificial intelligence (AI) technologies will promote the development of different kinds of smart mobile, smart wearable, AR/VR/MR, smart home, smart display and other IoT devices. The acceleration of upgrading of terminal products will drive the increase in the integration level of electronic components contained therein and improvement of technological level. The one-stop solution providers that are able to provide the brand customers with better production processes and higher integration level and require the input of less resources will get more orders for related components and finished products. Accordingly, the Company's business expansion and industrial operations are expected to fully benefit. (II) Communication and data center In the field of communication and data center, the series of technical innovation and emerging of new technologies promote the evolution from traditional IT infrastructure to data infrastructure, and along with the continuous development of the Internet, e-commerce, video, cloud computing and other Internet vertical industries have been rapidly springing up, and the global data center market has come into multiple periods of rapid growth. According to IDC, the shipments and sales of the global server market reached 13,539,000 units and USD99.22 billion in 2021, representing an increase of 6.9% and 6.4% respectively. The global Internet data center market size grew at a CAGR of more than 10% from 2012 to 2021.

内容: Global server shipments from 2016 to 2021

内容: Global server sales from 2016 to 2021

内容: Global server shipments (10,000 units)

内容: Global server sales (USD100 million)

内容: The ever increasing demands for new data centers by IT, telecommunication, banking, financial, service and investment (BFSI), e-government and smart city projects, and wide application of AI and IoT technologies in the future will further promote growth of the communication and data center market size. According to IDC, the global server market size is expected to reach USD126.5 billion in 2027. 11

内容: (III) Automotive electronics Smart electric vehicles represent an opportunity of the century for the automotive industry of China. China has the largest automotive market with the highest level of openness and inclusion and most consumers in the world, utilizes the most advanced smart vehicle technologies and attracts all major carmakers in the world. China ranks among the first in the world in terms of number of smart vehicle brands and models. At present, China’s smart vehicle market is transiting from the policy-driven period to the period of market-driven high growth in an all-round way. In 2021, the sales volume of electric vehicles reached 3.52 million units in China, representing an increase of 160% as compared with 2020. China has ranked first in the world in terms of sales volume of electric vehicles for seven consecutive years, and the sales volume of electric vehicles in China is expected to further increase by 47% to about 5 million units in 2022. The penetration of electric vehicles increased from 7.2% at the beginning of 2021 to 19% at the end of 2021, representing an exponential growth as compared with 10 years ago, and showing great potentialities of growth. In 2021, the penetration of electric vehicles began to increase rapidly in China and the transition to clean transportation is accelerating. Penetration of electric vehicles sales volume (k)

内容: Source: China Association of Automobile Manufacturers In addition to “electrification”, “intelligentization” and “interconnection” are also developing vigorously. Statistics show that about 20% new passenger cars are equipped with driver assistance system, the penetration of L2 driver assistance system into the electric vehicle market reaches 38%, electric vehicles has basically realized full coverage of Internet of Vehicles (IoV) functions, and some major carmakers have begun to sell new vehicles powered by V2X technology. Chinese consumers are more willing to accept smart electric vehicles, and medium- and high-end smart electric vehicles occupy increasingly greater shares on the business and consumer markets. Traditional smart mobile phone players begin to enter the smart electric vehicle sector; on the other hand, electric vehicle manufacturers begin to produce smart mobile phones. Along with the popularization of “intelligentization”, vehicles will become large-sized mobile smart and computing terminals. In the next stage, carmakers need to build ecosystems to break through the tight encirclement, connect vehicles with consumer electronics, create more consumption scenarios, and realize full coverage of “human-vehicle-home” scenarios. (IV) Our position in the industry During the reporting period, we ranked first on the 34th list of top 100 electronic component manufacturers of China (2021) published by the China Electronic Components Association, and were awarded the honorable titles of “Top 500 Private Enterprises Of China”, “Top 500 Private Manufacturers Of China”, and “2021 Model of China’s Digital Economic Industry”, among others.

内容: II. Our main business in the reporting period

内容: We concentrate our efforts on the specialization in and optimization of underlying technologies, made in-depth deployments in acoustic, visual, power (wired/wireless), wireless communication and other fields to meet future demands. Our products have been widely applied in the fields of consumer electronics, communication and automotive. By comprehensively mastering the technologies relating to various components and modules, and super-precision manufacturing technologies accumulated over the years, we give full play to our advantages in vertical integration, and continuously restructure the supply chain in the field of system assembly, to create more value for our customers, thereby gaining customers’ support and confidence. In launching a new product, we focus on the product quality, yield rate and optimization of production costs on the basis of innovative production technology, intelligent automation and digital platform, thereby enabling us to make continuous and substantial breakthroughs in new markets, new customers and new products. In the implementation of related controls, there is no doubt that the automation technologies lay the strong foundation for our core competencies. Therefore, we attach great importance to the continuous exploration of automatic and smart manufacturing technologies. Our core team’s spirit of in-depth exploration of processes and determination to accomplish all tasks assigned guarantee the success in the development and design of automation technologies. According to the requirements for appearance, size, functions and reliability of products, we disassemble and study all manufacturing processes, and make efforts to solve process challenges with reference to our past experience and advanced technologies available on the market. With the goal of zero loss and zero defect, we strive to realize the reasonableness, standardization and automation of designs in terms of yield rate, efficiency, cost, etc. After the completion of process study, we realize process design through automation, including automation of work stations, handling and positioning, testing, warehousing, logistics and production processes. Standardization is the prerequisite for automation, because standardized products cannot be made without the use of standardized equipment and processes. With respect to the products that have a low demand and change frequently, we mainly use man-machine flexible automation technologies. In the design of automatic equipment, we make plans for MES system, IoT access and key work station information flows needing to be controlled simultaneously, and build a model of digital factory on that basis. Thereafter, we convert all problems and phenomenon into data, and then process and judge the data systematically, and present the same in the form of visual reports, to realize whole-process traceability of products, materials, people, equipment, fixtures, process technology and quality information, among others, implement close-end control, and ensure the effective realization of automation. On that basis, we introduce digital models, use modeling approaches to connect production with data flows, and through the use of big data, cloud computing, AI, digital twin and other technologies, deeply explore the information and trends behind data, seek benefits from data, and finally realize intelligentization, and self-judgment, self decision-making, self-adjustment and self-execution by machines, so that the machines are able to solve tangible problems and predict intangible problems on their own, thereby achieving the long-term goal of smart manufacturing.

内容: 1.精益化 ? ? ? ? ? ? ? ? 工艺的深度拆解和前瞻研究 设计的合理化、标准化和简单化 产线的精益布局规划 In-depth disassembly of and forward-looking research on processes Reasonableness, standardization and simplification of design Lean layout of production lines 2.自动化 搬运-加工-检测-物流-仓储的全流程自动化 柔性自动化系统分析

内容: 3.数字化 ? ? ? ? ? ? IOT、制造数字化集成 可视化控制中心和管理 运营流程自动化贯通 Digital integration of IoT and manufacturing Visual control center and management Automation of the whole operation process

内容: 1. Leanness

内容: 3. Digitalization

内容: 4.智能化 ? ? ? 机器自感知、自学习、自决策、自执行 解决有形的问题和预测无形的问题 数据驱动管理决策 Self-sensing, self-learning, self decision-making and self-execution of machines ? ? 精益工艺研究 Lean process study 智能制造 Smart manufacturing 预测性分析 Predictive analysis Solve tangible problems and predict intangible problems Data-driven management decision-making 工艺数字化 Technological digitalization 信息域 Information field 物流自动化 Logistics automation 流程数字化 Process digitalization 制成自动化 Manufacturing automation 高级决策支持 Advanced decision-making support

内容: 2. Automation ? ? Whole-process automation of handling, processing, testing, logistics and warehousing Analysis of flexible automation system 精益生产布局 Lean production layout 数字化 Digitalization 智能化 Intelligentization

内容: 4. Intelligentization ?

内容: 物理域 Physical field 精益化 Leanness 自动化 Automation

内容: (I) Consumer electronics business 14

内容: From the perspective of applications, consumer electronics, communication and automotive are our main product and business segments. In the field of consumer electronics, we continue our product mix in prior years, follow the trends of metaverse, AIoT smart life and high-speed transmission, and enrich our product offerings in a steady and orderly manner. Our product offerings include acoustic products (such as TWS earphone), smart home products (such as 5G CPE and Wi-Fi 6 portable router), smart terminal products (such as wearable watch and wristband, AR/VR/MR), computer accessories (such as Dock), intelligent stylus, video conference equipment and wired and wireless high-watt rapid charging accessories for various PC/NB/mobile phone brands for retail sale. We have been engaged in the field of consumer electronics for years, while satisfying the customers’ demands, made continuous breakthroughs to build the strong capability to provide customers with comprehensive solutions. We have the advantages in intelligentization, digitalization and globalization on the vast consumer electronics market. We make dynamitic adjustments continuously, and clearly understand the existing market and the incremental market. With respect to the existing market, such as the business relating to PC and smart mobile phones, we have mature technical capabilities, capital equipment and customer resources. As the most trusted partner of our customers, we are not only able to, in conjunction with our premium customers, achieve self-worth in the field of premium products and the existing products we are good at, but also in the upgrading of products and technologies, leverage our mature resources, grasp the opportunities to enter the market of higher-level products at optimal cost, and maximize the rewards. With respect to the incremental market, such as health & wellness, metaverse and other applications, we believe that the premium customers on the existing market will continue to take the lead. By leveraging our good reputation and solid partnership with our customers built by us over the years, our management will continue to keep abreast of the market, analyze and accurately grasp the situations of technology development of the industry from the perspectives of consumers, brand customers and supply chain, continuously improve product attractions required by the incremental market, and make all-round deployments from components, modules to system. Though we face many external challenges, such as disengagement between China and the United States and geopolitics, we have high hopes for and are confident about the future development of our consumer electronics business. In the past ten years, through continuous upper-level industry guidance, development of designated customers, improvement of the quality and development of high-quality supply chain, and with the long-term and strong support and investments in different areas, China has gradually built the most complete and systemic consumer electronics supply chain in the world, and takes the lead in in-depth deployment, talent pool, policy support and other issues in respect of supply chain on all market segments. In view of our strong head start advantage and the competitive situation on the consumer electronics market, we keep improving and enhancing all kinds of capabilities, and on the basis of our global deployment completed over the years and our stable strategic focus, develop incremental businesses at home and abroad according to the development requirements of customers. The present and foreseeable situations show that the strong will be always strong. Our strategic goals conform to those of our customers.

内容: 智能音箱 Smart speaker 电子烟 Electronic cigarette

内容: 快充适配器 Rapid charging adapter 无线充模组 Wireless charging module 射频 Radio frequency

内容: VR眼镜 VR eyeglasses 声学模组 Acoustic module 线材线缆 Wire and cable

内容: 5G路由器 5G router 震动马达 Vibration motor 机构件 Mechanical components

内容: 智能穿戴 Smart wearable 5G模组 5G module 连接器 Connector

内容: 机壳天线 Casing antenan 天线 Antenna 核心工艺 智能制造 Core technology Smart manufacturing

内容: (II) Communication business Driven by 5G, big data and edge computing technologies, the ICT industry puts forward higher requirements for data transmission, hardware equipment shows a tendency towards gradual opening of interfaces and high integration of functions, and interconnect components show a tendency towards high speed, high density, high reliability and low loss. On the basis of the application scenarios of our products in the field of data and communication, and centering on the application and development trend of data center, we have gradually enriched our product offerings, and on the basis of electric connection (high-speed electric connectors and cables), optical connection (AOC and optical modules), radio frequency (RF) communication (base station antennas, base station filters, tower mounted amplifiers, duplexer, combiners, RRUs, AAUs and small base stations), and other existing products, have developed thermal management (heat pipes, VC, axial fans, cold plates and water cooling radiators), industrial connection and other products, further increasing our product coverage. In 2022, we will develop server and other complete unit assembly business, center on the “complete unit + core components” double development strategy, and strive to grow into a comprehensive solution provider offering all kinds of products in the field of data and communication.

内容: 电连接产品线 Electric connection products 光连接产品线 Optical connection products 汇聚交换机 Aggregation switch

内容: 服务器 Server 综合布线 Cabling system 接入交换机 Access switch

内容: 交换机 Switch 基础设施 Infrastructure 数据中心机架群 Data center rack cluster

内容: 整机组装产品线 Complete unit assemblies 热管理产品线 Thermal products 机架内服务器群 Server cluster inside rack management

内容: We have focused on the development of core technological capabilities and basic R&D capabilities through research of simulation technology, new materials and new processes and application of testing technologies, and provide strong technical support for communication interconnect products in different forms. With respect to system-level products, through disassembly of modules and components contained in the products, and single-point manufacturing processes and technologies, we are able to realize highly or wholly automated, efficient and high-quality production and manufacturing of large and small batches of products.

内容: 基础设施 Infrastructure 精密模组 Precision module 滤波器

内容: 服务器 Server 高速连接器 High-speed connector 热管理

内容: 综合布线 Cabling system 高速线缆 High-speed cable 核心零部件

内容: 浸没机柜 Immersion cabinet 线缆模组 Cable module 高速裸线开发

内容: Filter 精密冲压和注塑 Precision stamping and injection molding 基础制造能力 Basic manufacturing capability 冲压 Stamping 本地工程服务中心 Local engineering service center 压铸 Die casting 注塑 Injection molding 全球化采购 Global purchasing 机加 Tooling 表面处理 Surface treatment 自动化设备开发 Development of automatic equipment Due to the effect of disengagement between China and the United States and geopolitics, exports of the domestic communication and data center industries face certain shocks and challenges. With respect to the further exploitation of opportunities of external circulation, we always regard the technical capabilities as the foundation for business development, and driven by the technologies and with the support of our strong precision manufacturing capability, actively exploit the overseas market. In addition, we will firmly grasp the opportunities provided by the “Eastern Data, Western Computing” program and replacement with home-made goods, focus on internal circulation, and actively seek new opportunities in the domestic communication industry. We believe that we will get more and better business opportunities than traditional communication product manufacturers, as we will apply our rich experience accumulated in the consumer electronics precision manufacturing industry to the new communication industry. (III) Automotive business In view of the development of electric vehicles, we have made long-term plans for automotive business, and included wire harness, connection system, new energy, smart interconnect, smart cabin and smart manufacturing in our product offerings. 钣金 Sheet metal 基础服务平台 Basic service platform 零件中心 Component center Thermal management 射频 Radio frequency Core components 散热部件 Radiator Development of high-speed bare wire

内容: Leverage the superior resources of the Group, enrich product offerings, and create driving force for the growth of automotive tier-1 business

内容: 线束

内容: 整车线束

内容: 特种线束

内容: 充电枪

内容: Wire harness 连接器 Connector 新能源 New energy 车载通讯单元 Telematics control unit 信息娱乐系统 Infotainment system 智能制造 Smart manufacturing Vehicle wire harness 低压连接器 Low-voltage connector 逆变器 Inverter 智能天线 Smart antenna 域控制器 Domain controller 嵌件注塑 Insert molding Special wire harness 高压连接器 High-voltage connector 智能网联 Smart interconnect 智能驾舱 Smart cabin 无线充电 Wireless charging Charging gun 高速连接器 High-speed connector 路测单元 Road-side unit 多媒体仪表 Multi-media instrument panel 电源网络隔离器 Power and network isolator

内容: Wire harness is an essential system-level component for a vehicle, is flexible, important and widely used, covers all configurations of a vehicle, and provides reliable power supply, signals and data to all electric appliances, so they serve as “arteries” of the “neural network” of a vehicle. According to Markets and Markets, the global automotive wire harness market size was expected to reach USD47 billion in 2021. Through vertical integration, we have grown into a comprehensive supplier specialized in the design, validation and manufacturing of low-voltage and high-voltage vehicle wire harnesses, special wire harnesses, charging guns and other products. We stick to the customer oriented service concept, and satisfy the customers’ demands with our efficient customized design and development, production facilities located in the neighborhood of our customers, and our strong precision manufacturing capabilities accumulated over the years. In additional to traditional carmakers, we have developed some major emerging customers. Automotive is one of the largest markets for connectors. Automotive connectors account for 22% in the global connector industry, where smart electric vehicles are the largest growth driver. According to Bishop & Associates, the global automotive connector market size was USD15.210 billion in 2019, and is expected to reach USD19.452 billion in 2025. We have designed and developed all kinds of connectors required on vehicles, including low-voltage connectors, high-voltage connectors, high-speed connectors and customized connection systems, among others. We exploit the existing customer market through our wire harness business, and enhance the synergistic effect with our existing consumer electronic and business-type products, to promote growth of business. Our proprietary gigabit Ethernet connector adopts a wholly shielded double cable connection structure, and can be widely used on infotainment systems, ADASs, domain controllers and other products. In order to satisfy the demands of the smart electric vehicle market, we launched key components of the power system of electric vehicles, including battery disconnect unit (BDU), power distribution unit (PDU) and inverters. In 2021, the global automotive PDU market size was USD7 billion, and the inverter market size was USD3 billion. PDU is designed to distribute and manage electric power in the high-voltage system of new energy vehicles, and can integrate MBS master control, charging module, DC module, PTC control module and other functions. BDU is specially designed for installation inside battery packs and is a kind of distribution box. Inverter is a device that converts direct current in batteries into three-phase alternating current required by electric motors, and a core component of new energy vehicles. The power output and battery life of electric motors directly depend on the performance of inverters. The IoV relies on the new-generation information communication technology, receives information from and transmits information to moving vehicles, and can play an important role in vehicle safety, traffic control, information service, smart city and intelligent transportation. At present, IoV applications are key projects of government and OEMs, and require coordination among multiple devices, such as road-side unit (RSU) which collects environment, traffic condition, traffic sign and other information and sends the same to vehicles, telematics control unit (TCU) which effects two-way communication between vehicles and external networks, central gateway (CGW) which connects all electronic devices on a vehicle, and other products. We focus on the development of wireless communication and automotive electronic products, and currently offer RSUs, TCUs and CGWs. 19

内容: According to Visteon, the global smart cabin market size was about USD44.7 billion in 2020, and is expected to reach USD73.8 billion in 2025. The penetration of smart cabin into new vehicles in China is expected to exceed 75% in 2025. At present, the basic configuration of a smart cabin on the market includes digital instrument panel, streaming rearview mirror, HUD, rear seat screen and IoV modules, among others, which can provide passengers with navigation, environmental monitoring, entertainment and other directly perceivable information, satisfy diversified human-machine interaction requirements, provide better ride experience and create more consumption scenarios. Our products include AR-HUD, infotainment system, cabin entertainment domain, LCD instrument panel, driver monitoring system, power isolation module, etc., and USB port and wireless charging module are relatively mature products. In the future, more consumer electronic functions will be applied in cabins, so we can fully leverage our technologies accumulated over the years in the field of consumer electronics.

内容: We also provide customers with smart manufacturing services, including insert molding, PCBA and other product services, by leveraging our economy of scale and lean production. In February 2022, we entered into a Strategic Cooperation Framework Agreement with Chery Holding Group, pursuant to which, we and Chery New Energy Automobile Co., Ltd. will establish a joint venture specialized in R&D and manufacturing of new energy vehicles in the form of ODM. This business platform will produce vehicles for brand customers, provide a frontier R&D and mass production platform and access to the overseas market for our core automotive component business, and help us develop our tier-1 business. We have been engaged in the field of consumer electronics for years, and accumulated a solid industrial base and strong ODM capability, and are familiar with ODM operation and management model. Chery has rich experience in the field of traditional vehicles, and solid technological base. Our superior products will have an opportunity to grow from 0 to 1 through this joint venture ODM platform and the incremental business provided by Chery, and we will leverage our advantages to take part in the competition, in order to have our tier-1 products pass validation by the brand customers. Along with the wide application of consumer electronics products on vehicles, our technologies, experience and customer resources accumulated over the years in the field of consumer electronics will help our automotive business segment better grasp the trend, and develop more products and customers. We will keep pace with our premium customers at home and abroad, accurately grasp the development direction of technologies and the industry, and actively promote the technological upgrading of products and reduction of costs through technology, to continuously provide our customers with products and solutions that are competitive in both technology and business. Our medium-to-long term goal is to grow into a tier-1 manufacturer in the global automotive component industry in the next three to five years.

内容: III. Analysis of core competencies

内容: (I) Smart manufacturing under the lean production mode Since our establishment, we have adhered to our original intention, focused on precision manufacturing, and through development and application of advanced digital tools and automatic production processes, and continuous optimization of system structure, organization and production mode, ensure our production system is able to rapidly adapt to the continuously expanding production lines and meet the constantly changing market demands. 1. Modern optimization of smart process We implement the lean production mode pursuant to 7-S management standard, carry out production according to demands, meet the demands of different customers for different products with the optimal production rhythm, and have introduced many digital system tools, for example: (1) SAP system that connects all links in our internal operation, and connects customers through EDI system and suppliers through SRM system; (2) PLM system in respect of product R&D, that integrates product-related processes, designs software and simulation models, and scientifically manages product data in the entire life cycle from design, development, production, marketing, purchasing to after-sale services; (3) MES system in respect of production and manufacturing that integrates human, tooling, equipment, jigs, materials, customer demands and other factors, and uses AI and 5G technologies to implement optimal management of the whole process from receipt of customer demands to delivery of products; (4) WMS smart warehousing system that effectively deals with and manages our complicated inbound and outbound goods, improves the goods turnover and inventory turnover, greatly reduces overstock and occupation of funds, and make warehousing management more accurate, simple and efficient; and (5) Budget management and BI system in respect of financial and accounting operation that realizes efficient preparation of budgets and effective control, review and analysis, and manages and controls risks using big data. We continuously optimize our management processes and production processes, implement customer oriented precise, scientific and intelligent management, and constantly strive to improve our production efficiency and product yield. 2. Advanced automatic process design and application As a global leading provider of diversified component solutions, high-quality precision manufacturing has always been one of our core competencies. Since our listing, our precision manufacturing capability has developed from “automation with passive positioning” to “automation with active positioning” and finally to “full automatic and smart” super-precision modularized manufacturing today. In the automatic manufacturing of products, we connect product design with the design of automatic manufacturing process seamlessly, and on the basis of ensuring our process capability at key work stations takes the lead in the industry, have introduced AI visual robots to realize positioning, error detection and judgment in the production process of precision electronic components, active and mutual positioning between components and jigs in the assembly process, and AI-assisted inspection of appearance of component products. We widely use automated guided vehicles (AGVs) on production lines and warehouses, to give support to modern smart logistics and warehousing system. In addition, we use big data and AI technologies, in conjunction with our proprietary algorithms, to feed back real-time measuring and testing data, thereby ensuring the reliable quality assurance and full traceability of products, and enabling the automatic production lines to have the deep learning capability, to realize close-end control over the automation technology, which marks that we have formally entered into the stage of “smart precision

内容: manufacturing” from “precision manufacturing” in the early stage and “quality assured precision manufacturing” in the middle stage. 3. Advanced comprehensive quality management system Quality is the foothold of a company, and one of the most important core values provided by a company to its customers. Since our establishment, we have adopted “quality is our lifeline” as one of our corporate values, established and improved the quality management system using scientific and effective quality management approaches, and integrated quality assurance into the whole process from design, manufacturing, inspection, packaging to transportation of products. We have a full set of advanced NPI ( new product introduction) management process, and control quality from the development and design of products, to lay a solid basis for successful mass production of products. In the each stage of development of a new product, such as POC (proof of concept), Proto (model verification), EVT (engineering verification test), DVT (design verification test), PVT (process verification test) and MP (mass production), etc., we take the highest requirement for mass production that each stage should satisfy as the criteria for approval of entry into the next stage. We attach great importance to quality precautions, and implement design quality controls focusing on quality, cost, manufacturing and automation, to shorten the period from engineering development to mass production. Due to our excellent quality assurance capability, we have received praise from our customers continuously, and enhanced customer adhesion. (II) Forward-looking strategic deployment Our management keeps abreast of market trends and developments of the industry, through industrial researches and internal seminars, reviews our development situations, makes in-depth analysis of the boundaries of our business and capabilities, enhances the implementation of the “three five-year” strategic plan, and continuously explores the ways of diversified innovations and development. Our development towards new products and new areas is based on multi-dimensional analysis of industrial development, customer demands, competitors, the value we can provide, the space we can play, profitability, return on investment and other aspects of the industries, customers and end users, and detailed sand table exercise by our core management. 1. Vertically integrated one-stop service capability We focus on providing the market with perfect comprehensive solutions covering the entire industry chain. We provide full coverage products from core components, modules to system-level assembly. We have proprietary key process capabilities, including design and processing of molds/jigs, bare copper wire drawing, plastic particle molding, stamping/press forging, precision implant molding, surface treatment, SMT, SiP and system-level assembly testing. In addition, we have a number of national CNAS certification labs responsible for preliminary development validation, in-process quality inspection and failure analysis. Therefore, we have vertically integrated production capabilities for core components, modules to system-level assembly that are relatively complete, and have realized close-end management from key materials, parts, modules, core technologies to data of all stages, in respect of all core acoustic, optical and electric module products, such as acoustic modules, vibration motors, voice coil motors, antenna modules, wireless charging modules, and all kinds of terminal products, such as accessory system, IoT equipment, acoustic wearable devices, smart wearable devices and smart mobile phones. With our understanding of the market demands over the years, we are able to provide comprehensive one-stop professional services from product proposal, design, validation to mass production, and even to logistic cooperation, after-sale quality tracking and warranty, thus further enhancing our competitive advantage in rapid response to demands of customers, timely and efficient engineering cooperation and cost control with quality guaranteed. 2. Industrial synergistic effect In order to provide the customers with greater and better values, in addition to our vertically integrated one-stop service capability, we manage and integrate purchasing, R&D and manufacturing activities of consumer electronics, communication, automotive, healthcare and other business segments in a centralized manner, to minimize the use of resources, accelerate trans-sector technological convergence, improve production efficiency and product yield, seek synergistic effect, reduce overall costs for customers, and ensure our return on investment.

内容: 3. Global service deployment Economic globalization is the profound background and fundamental trend of the development and evolution of global economy in the 21st century. As the players of economic globalization, transnational companies directly promote the development of economic globalization. From the perspective of market, in the era of global intelligentization, the electronics industry is the field with the most thorough allocation of global resources and market competition at present. After more than ten years’ development, we have gradually built a global system integrating development, sales, FAE (field application engineer) and manufacturing. We now have 16 sales & FAE offices abroad, which, in addition to providing services to our customers from nearby locations, actively attract sales, R&D and management talents of different fields throughout the world, to introduce fresh blood and draw out the potential capacities of the teams. This approach not only can be horizontally replicated in new product operation teams, but also can maintain the capability boundary of all functional teams and personnel at the same level. In addition, in order to optimize our cost structure, we have established industrial zones and manufacturing facilities in some foreign countries, to serve global brand customers. We are committed to satisfying the demands of customers, keep abreast of market demands through our global sales & FAE network, accelerate R&D of new products, produce high value-added products; leverage our local manufacturing capabilities throughout the world and advantages in smart manufacturing, shorten the production and transportation cycle of products, further enhance the cost advantage of products, and improve quality and efficiency, to provide our customers throughout the world with more competitive services. (III) R&D and technological innovation 1. Continuous increase in R&D investment Since our listing, we have placed R&D and innovation on an important position in our development, made continuous investments in technology R&D, vigorously upgraded traditional manufacturing processes, continuously improved the level of automatic production, and realized platformization of all precision manufacturing processes. We also attach great importance to the long-term development of underlying materials and innovative production technologies. Our R&D team has continuously learned and explored advanced precision manufacturing technologies and product applications in the countries and regions mastering frontier technologies, and established a number of advanced technology development labs with certain core customers, to jointly develop frontier technologies. We have established advanced production technology and manufacturing process R&D platforms in Dongguan, Kunshan, Taiwan and the United States, and own a R&D and smart manufacturing team taking the lead in the industry. Our R&D expenses are mainly classified into early stage R&D expenses and product upgrading expenses. Early stage R&D expenses are incurred in connection with medium-to-long term product and business planning and deployment, and consist of investments in new products and new areas and R&D expenses relating to underlying technologies, accounting for about 30% of our total R&D expenses. Product upgrading expenses are incurred in the process from concept to NPI (new product introduction) of new solutions and new products. All early stage R&D expenses and product upgrading expenses are expensed as incurred to reduce the pressure of asset amortization costs in the future. Our R&D expenses have been continuously increasing, and totaled RMB16.763 billion in the past three years. In the reporting period, our R&D expenses totaled RMB6.642 billion. 2. Innovation capabilities and patents Innovation is the soul of the era of knowledge economy. As a hi-tech company, we always attach great importance to the management and protection of intellectual properties (IPs), have established and continuously improved our IP policy, complied with all IP laws and regulations, established IP department and engaged professionals to actively carry out application, protection, operation and maintenance activities in respect of IPs. We encourage our employees to actively make innovations, reduce product costs and increase our profits. On the other hand, we actively prevent risk of infringement, and protect our and our customers’ legitimate rights and interests. As of the end of this reporting period, we own 3?090 valid patents, an increase of 44.46% as compared with the end of 2020. 23

内容: We firmly believe that R&D and technological innovation are an important means to realize forward-looking deployment, and will drive our development. The continuous and steady R&D investments will not only consolidate our leading position and advantages in the industry, but also enhance our risk bearing capability in an ever-changing macro environment, and lay a solid foundation for our continuous and rapid development in the future. (IV) Corporate culture focusing on sustainable development 1. All-round customer-oriented culture Since our establishment, we have adhered to the philosophy of “customer first”, and been committed to providing our customers with complete and perfect comprehensive solutions, taking into comprehensive consideration response speed, engineering cooperation, service quality, flexible delivery, cost control and other factors. Our leading technologies and excellent quality assurance capability have helped us build a good brand image and reputation in the industry, and brought high-quality customers to us. After years of cultivation, we have established stable cooperation relationships with a lot of global leading brands and manufacturers in the fields of consumer electronics, communication and automotive. Over the years, we have kept pace with the strategic steps made by our major customers, cautiously assessed the development trends of the industry from the perspective of brand customers and end consumers, and made forward-looking deployments to occupy the new markets and new channels, to ensure that we maintain the lead. We think what customers think and are eager to help the customers in need. Under the guidance of the service philosophy of “customer first”, in addition to fulfilling the tasks assigned by the customers, we have also continuously identified the pain points of the customers in their applications, fully leveraged our resource and platform advantages, and taken the initiative to provide the customers with optimization proposals and suggestions, to highlight our competencies. Our commitment to fulfill all missions has been generally recognized in the industry. 2. Spirit of workmanship that constantly strives for perfection We are unable to make continuous improvement in smart manufacturing, product R&D, internal management, social responsibility and other areas without our employees’ striving for perfection at work and accomplishment of each task in such manner that is higher than the customer standard, stricter than the industrial standard and more excellent than what has been done yesterday. That is the key internal driving force behind continuous recognition of us by the customers and our rapid development. In the future, we will remain true to our original aspiration, not only carry on the spirit of workmanship that constantly strives for perfection in our traditional superior fields, but also foster such spirit in our new teams and new business segments, strive to accomplish the strategic goals in the “three five-year” plan period with the spirit of enterprise, and achieve a win-win situation with our customers, shareholders and employees. 3. Talent selection, training, use and retention mechanisms deeply integrated with corporate culture The core competencies of a company will be ultimately reflected in the soft power arising from in-depth integration and mutual nourishment of talents and corporate culture. Core talents are the basis for the sustainable development of a company and the cornerstone for cultivating the talents required by a company. We have adhered to the strategy of invigorating the business through talents, and continuously improved our talent echelon building system and talent pool mechanism. We vigorously recruit outstanding talents required in our development who recognize and conform to the distinctive characteristics of our corporate culture, to continuously augment our team of core talents. On the other hand, we continuously improve our talent training system and talent selection system. Along with the growth of our business, we continuously put forward new and reasonable requirements for our employees, encourage them to make self break-through in the boundary of their capabilities, and continuously improve their personal competencies and management capabilities, to contribute new energy to our development. Under the nurture of our corporate culture of being pragmatic and enterprising, constantly striving for perfection, and fulfilling the missions, we provide the key employees with a vast space to exercise their talents, and effectively stimulate their sense of mission, sense of achievement and sense of collective honor. At present, we have recruited outstanding talents in materials, automation, electronic information, molds, business 24

内容: management and other fields throughout the world, to create a talent pool for our sustainable development. We clearly know how to attract and retain talents. To develop a virtuous circle of people creating the environment and the environment creating people through in-depth integration of talents and corporate culture is our strongest core competency. Through effective talent mechanisms, we have sufficient talents in our traditional superior fields, and have laid the foundation for our rapid development in new areas and businesses.

内容: IV. Analysis of main business

内容: 1. Overview

内容: In 2021, the external environment became more complicated and severe. The domestic and overseas economic development faced numerous pressures and was greatly affected by the changes unseen in a century and the epidemic disease of the century. During the reporting period, we faced more risks and challenges in our development, for example, the repeated outbreaks of COVID-19 at home and abroad causing interruption of the upstream supply chain and blockade of logistic routes, shortage of chips and materials throughout the world, sharp rise of the prices of staple commodities and logistic and transportation costs, and delay in the mass production and delivery of certain new products. In addition, the learning curve of some new products/businesses during rapid growth and the regular cycle of some existing products affected our financial indicators to a certain extent. During the reporting period, we invested in and controlled Rikai Precision Technology (Yancheng) Co., Ltd. (“Rikai Yancheng”). Since 2021, due to great demands from customers for the precision display structure module products for mobile phones in the coming years, the scale of operation of Rikai Yancheng increased rapidly. However, the huge investment in the preliminary development and automation optimization in respect of the precision display structure module products for mobile phones and large proportion of raw materials to the total cost of such products greatly affected the overall product margin of Rikai Yancheng, and in turn affected the consolidated gross margin of Luxshare-ICT. In addition, after experiencing the strong demands from industries/market and consumers for smart wearable acoustic products, the shipments of our smart wearable acoustic products dropped sharply in 2021, which had a periodic effect on the operating revenue and net profit of this business. The development of this business is expected to become stable in 2022. We will continue to leverage our core competencies, give full play to our value as an important partner of our key customers, and promote the steady and high-quality development of this business. Facing the market competitions and internal and external pressures and challenges, we work hard to overcome the difficulties, focus on the formulation and implementation of the “three five-year” strategic plan, and further enhance short-, medium- and long-term forward-looking deployments taking into account the new situations and new opportunities. During the reporting period, we fully leveraged our advantages in smart, digital and modular high-end manufacturing and flexible management, further consolidated the foundation of the big precision and smart manufacturing platform, intensively implemented vertically integrated allocation of resources, and effective coordination of all product lines and business segments, improved the efficiency of internal organization, and made praise-worthy achievements in both existing and new businesses. (1) Consumer electronics business During the reporting period, we stuck to the strategy of diversified vertical integration and production penetration in the field of consumer electronics. In 2021, with respect to smart wearable healthcare products, as an important member of our family of system-level products, though the delivery of certain products was delayed due to the epidemic situation at home and abroad and shortage of materials, our excellent performance in product development, automatic production process, premium quality, flexible delivery and other areas was well recognized by our key customers, laying a solid foundation for the provision by us of in-depth and diversified services, such as system assembly and different kinds of core components, in respect of this product line. With respect to SiP products, despite the effect of overseas epidemic situation, our performance was generally mature and realized full coverage of smart wearable healthcare products. On the basis of thorough assessment of return on investment, utilization rate and other operating 25

内容: metrics, and in-depth analysis of this technology development route, taking into account our strategy of access to the overseas market for system products, we will make further plans in respect of smart wearable acoustic products and peripheral functional module system packaging business in the short term, and develop chip/semiconductor module packaging business in the long term. With respect to system products for mobile phones, the joint venture platform established by us and our controlling shareholder vigorously promoted smart and digital practices, and built an integrated smart platform covering product scheduling, production process analysis, asset management, energy monitoring, personnel management, failure analysis, remote assistance and other activities, in order to continuously improve our operation and management level, and effectively satisfy our customers’ increasingly personalized, high quality and rapidly evolving demands. Our integrated smart development and production platform covering the whole process make full preparation for large-scale replication and group/global operation in the days to come. With respect to the vast consumer electronics market, we keep our eyes open, and wash grains of gold out of the sand. In the recent years, by leveraging our strong core competencies and the demonstration effect of big customers, through our premium services to many global well-known brand customers, we have made excellent achievements in smart terminal, smart life, computer accessory and other solutions, and accumulated strength for the diversified development of our consumer electronics business at the customer and product sides. Our products include acoustic, optical and electric modules, smart accessory system, acoustic system, IoT equipment, wearable devices, etc. Through in-depth market/customer researches, we have established executable development plans and growth objectives, and our cooperation with global customers having great potentialities has been upgraded from simple cooperation in components and modules to integrated and all-round cooperation in complete unit system solutions. At present, we are carrying out business as planned, with the support and recognition of the market and customers as what they did in the past. In view of the relatively fragmented market, we will further focus on resources and make thorough assessments in the future, and strive to develop related business into important drivers of our sustainable growth in the next five to ten years. (2) Automotive business In 2021, despite the weak market demand and chip shortage caused by the epidemic situation at home and abroad, the overall development of our automotive business generally meets the expectations of our management. Along with the continuous development of “electrification”, “intelligentization” and “interconnection” of vehicles, and trans-sector application of consumer electronic products and technologies on vehicles, we actively grasp market opportunities, and fully leverage our technologies and customer resources accumulated over the years in the fields of consumer electronics and communication, in order to ensure that our existing automotive business catches the trend more accurately, and to develop product lines and strategic customers in a more intensive and focused manner. At present, our main products cover automotive wire harnesses (vehicle wire harnesses, special wire harnesses, charging guns, etc.), connectors (high-voltage, low-voltage and high-speed connectors, Busbar, etc.), smart new energy (PDUs, BDUs, inverters, energy storage, etc.), smart interconnect (RSUs, TCUs, etc.), and smart cabin/control (domain controllers, infotainment system and multi-media instrument panels). We will, guided by the trend of technology development and strategy to focus on/enable customers, continuously provide our customers with products and solutions that are competitive in the world in both technical and commercial metrics, by leveraging our manufacturing facilities and product R&D centers distributed around the country, and the synergistic effect of domestic and overseas resources. (3) Communication business During the reporting period, our supercomputing center business grew rapidly, as a result of our continuous technology development in the field of communication. However, the unreasonable interference by foreign entities of the same trade in the context of China-US trade friction affected the continued development of our communication business in North America. On the basis of further improving our capabilities in respect of existing high/low-frequency electric connector, optical connector and RF communication products, during the reporting period, we focused on the development of thermal system management, industrial connector and other new products and new businesses, further enhanced vertical integration of industries, trans-sector technological convergence, and increased coverage of product lines, with a view to growing into a comprehensive data and communication solution 26

内容: provider. The global market has continuous demands for communication equipment. Along with the further development of smart manufacturing, metaverse, smart driving and IoT, by virtue of our complete product lines and platforms, and our understanding and application of frontier technologies, we will continuous exploit the global market and increase our market shares. During the reporting period, our sales revenues totaled RMB153.946 billion, an increase of 66.43% year on year; profit totaled RMB8.143 billion, an increase of 0.09% year on year; and net profit attributable to the owners of the parent totaled RMB7.071 billion, a decrease of 2.14% year on year.

内容: 2. Revenue and cost (1) Components of operating revenue

内容: Total operating revenue By segment Computer interconnect products and precision components Automotive interconnect products and precision components Communication interconnect products and precision components Consumer electronics Other connectors and other business By product Computer interconnect products and precision components Automotive interconnect products and precision components Communication interconnect products and precision components Consumer electronics Other connectors and other business By region Domestic market Overseas market By sales mode Direct sales

内容: (2) Segments, products or regions representing more than 10% of operating revenue or profit

内容: √ Applicable □ N/A In RMB Operating revenue By segment Consumer electronics By product Consumer electronics By region Domestic market Overseas market By sales mode Operating cost Gross margin 11.36% 11.36% 19.74% 11.73% Y/Y % Change Y/Y % Y/Y % in operating Change in Change in revenue operating cost gross margin 64.56% 64.56% 40.75% 68.68% 77.54% 77.54% 44.47% 81.05% -6.48% -6.48% -2.06% -6.03%

内容: In case of any adjustment to the statistic scale for main business data, the main business data of the most recent reporting period as adjusted according to the statistic scale applied at the end of the current reporting period: □ Applicable √ N/A

内容: (3) Whether the Company’s revenue from sale of tangible goods is higher than the revenue from labor service?

内容: √ Yes □ No Segment Computer interconnect products and precision components Automotive interconnect products and precision components Communication interconnect products and precision components Consumer electronics Item Sales volume Output Inventories Sales volume Output Inventories Sales volume Output Inventories Sales volume Output Inventories Sales volume Output Inventories Unit KPCS KPCS KPCS 1?000 sets 1?000 sets 1?000 sets KPCS KPCS KPCS KPCS KPCS KPCS KPCS KPCS KPCS 2021 692,107 735,779 43,672 233,339 256,542 23,203 380,329 413,793 33,465 3,495,842 3,773,559 277,717 467,754 508,283 40,529 2020 Y/Y % Change 510,910 35.47% 537,997 36.76% 27,087 61.23% 172,912 34.95% 184,502 39.05% 11,590 100.20% 470,565 -19.18% 514,389 -19.56% 43,824 -23.64% 3,299,993 5.93% 3,661,402 3.06% 361,409 -23.16% 312,258 49.80% 348,814 45.72% 36,556 10.87%

内容: Other connectors and other business

内容: Analysis of changes in the relevant data over 30% year on year: √ Applicable □ N/A During the reporting period, our output and sales volume increased as a result of increase in sales.

内容: (4) Performance of material sales contracts and material purchase contracts by the Company as of the end of the reporting period

内容: □ Applicable √ N/A

内容: (5) Components of operating cost

内容: Classification of segments In RMB 2021 Segment Computer interconnect products and precision components Automotive interconnect products and precision components Communication interconnect products and precision components Consumer electronics Other connectors and other business Analysis None 28 Item Amount 6,296,204,929.34 3,475,111,291.70 2,700,268,416.55 119,338,834,375.15 3,237,917,280.14 % of operating cost 4.66% 2.57% 2.00% 88.37% 2.40% Amount 2,765,866,774.16 2,374,148,439.75 1,818,503,189.96 67,217,502,600.73 1,593,986,044.98 2020 % of operating cost 3.65% 3.13% 2.40% 88.71% 2.10% Y/Y % Change 127.64% 46.37% 48.49% 77.54% 103.13%

内容: (6) Change in the scope of consolidation during the reporting period

内容: √ Yes □ No Luxis Technology Limited, Yancheng Luxshare Precision Industry Co., Ltd., Hangzhou Xuntao Technology Co., Ltd., Rugao Luxshare Business Management Service Partnership (LP), Lianxun Smart Equipment (Rugao) Co., Ltd., Luxshare Technology (Xi’an) Co., Ltd., Luxshare Electronic Technology (Enshi) Co., Ltd., Luxis Technology (Kunshan) Co., Ltd., Luxshare Investment Co., Ltd., Yancheng Luxshare Business Management Service Partnership (LP), Luxshare Smart Equipment (Yancheng) Co., Ltd., Luxis Precision Intelligent Manufacturing (Kunshan) Co., Ltd., Luxshare Smart Manufacturing & Electronic Service (Kunshan) Co., Ltd., Liding Electronic Technology (Dongguan) Co., Ltd., Luxshare Technology (Nanjing) Co., Ltd., Henan Leader Precision Industry Co., Ltd. and Changzhi Luxshare Precision Industry Ltd., that were newly established by us, Rikai Precision Technology (Yancheng) Co., Ltd. and Zhejiang Puson Electronic Technology Co., Ltd., that were acquired by us in cash, and Caldigit Holding (Cayman) and Taihan Precision Technology Co., Ltd., that were controlled by us by contract during the reporting period, are included in the scope of consolidation. Wuxi Huihong Electronics Co., Ltd., that was transferred by us, and Ji’an Jizhou Luxshare Electronics Co., Ltd., Speedtech (LS-ICT) Co., Limited, Luxshare International Cable Co., Ltd. and Luxshare-ICT International B.V., that were liquidated and deregistered during the reporting period, are removed from the scope of consolidation.

内容: (7) Material changes or adjustments in respect of business, products or services of the Company during the reporting period

内容: (8) Major customers and suppliers

内容: Major customers of the Company: Aggregate sales revenue from top 5 customers (RMB) Proportion of aggregate sales revenue from top 5 customers to annual sales revenue Proportion of aggregate sales revenue from related parties among top 5 customers to annual sales revenue Particulars of top 5 customers: No. 1 2 3 4 5 Total Name of customer Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 -Sales revenue (RMB) 114,055,710,068.00 5,033,592,065.75 3,621,465,625.47 3,188,059,176.36 2,500,581,156.19 128,399,408,091.77 % of annual sales revenue 74.09% 3.27% 2.35% 2.07% 1.62% 83.41% 128,399,408,091.77 83.41% 0.00%

内容: Other information of major customers: □ Applicable √ N/A Major suppliers of the Company: Aggregate purchase amount from top 5 suppliers (RMB) Proportion of aggregate purchase amount from top 5 suppliers to annual purchase cost Proportion of aggregate purchase amount from related parties among top 5 suppliers to annual purchase cost Particulars of top 5 suppliers: No. 1 2 3 4 Supplier 1 Supplier 2 Supplier 3 Supplier 4 Name of supplier Purchase amount (RMB) 68,529,282,195.97 2,220,179,015.43 1,986,097,524.70 1,718,167,435.10 % of annual purchase cost 52.28% 1.69% 1.52% 1.31% 29 75,982,606,355.38 57.96% 0.00%

内容: Other information of major suppliers: □ Applicable √ N/A

内容: 3. Expenses

内容: In RMB 2021 Sales expenses General expenses Financial expenses R&D expenses 789,908,163.80 3,741,908,783.50 554,665,874.05 6,642,300,402.74 2020 477,047,875.58 2,463,953,208.63 904,828,142.89 5,744,805,136.33 Y/Y % Change 65.58% 51.87% -38.70% 15.62% Reason of material changes Primarily due to increase in the scope of consolidation and business growth Primarily due to increase in the scope of consolidation and business growth Primarily due to fluctuations in foreign exchange rates Primarily due to increase in the scope of consolidation and R&D investments Primarily due to increase in pre-tax deduction of differences in the exercise price of incentive shares, and additional deduction of R&D expenses

内容: Income tax expenses

内容: 4. R&D investments

内容: √ Applicable □ N/A Description of major R&D project Project relating to To Expected effect on the Purpose develop and of new new TWS acoustic and improve Progress In progress To Objectives optimize and the realize future development of Company Our R&D and functions processes and other functions of the relevant products stable mass production with high quality. manufacturing capabilities in respect of acoustic products will be improved, will and be our R&D cycle of new products shortened, enhanced. Project smart products relating to To develop of new smart Partially completed To level lines, improve of the While recognition getting from wearable functions functions, automation production production

内容: acoustic products

内容: earphones, headphones products, develop new products, continuously

内容: production efficiency.

内容: competencies will be

内容: wearable products and improve the production process.

内容: customers, the results of our smart wearable business increased enhanced. will and be our

内容: efficiency and product yield of the relevant products.

内容: competencies will be Our advantage in the vertical integration of 30

内容: Millimeter dielectric

内容: wave antenna

内容: To

内容: develop and

内容: new new

内容: Completed

内容: To make breakthroughs in the use on traditional

内容: products

内容: components project performance, and millimeter antennas, reduce wave the components will be enhanced and market share of the relevant product lines will be increased. Our advantage in the vertical integration of components will be enhanced and market share of the relevant product lines will be increased. our Our advantage in the vertical integration of components will be enhanced and market share of the relevant product lines will be increased. and with in tests, the the mass and

内容: reduce production costs.

内容: dimensions of products and effectively lower costs. New-type linear motor project To optimize product In progress To optimize technical indicators cooperate customers relevant production deliveries. SIP project system level To develop new In progress To upgrade double side packaging technologies and new processes, and improve production efficiency. traditional SiP module packaging technology, fully fill the bottom space of chips, reduce the residue stress after packaging, ensure the reliability of package products, and improve the packaging. Project optical products relating to To develop 400G optical and develop In progress To and expand market the for optical develop product of the technical capabilities of product mix and reduce R&D costs.

内容: Our advantage in the vertical integration of components will be enhanced and market share of the relevant product lines will be increased.

内容: module

内容: high-speed modules preliminary modules.

内容: application high-speed modules, high-speed production

内容: scenarios

内容: next-generation optical

内容: product series, enrich lines and realize mass relevant products.

内容: Project

内容: relating

内容: to

内容: To transmission

内容: develop cable

内容: In progress

内容: To develop proprietary interfaces for servers, switches, high-performance computers the speed. and other products, and increase

内容: Our advantage data

内容: technical in the and cable be be

内容: high-speed cables

内容: assemblies that provide high-speed signals for super data centers and 5G services.

内容: communication center will will products share increased. our

内容: enhanced and market

内容: to wire

内容: To develop, improve and upgrade vehicle

内容: Partially completed

内容: improve

内容: Our product lines and market share in the

内容: automotive

内容: technical capability to

内容: harnesses wire harnesses, motor wire automotive wire energy wire Project relating to harnesses, steering new pack and Partially completed harnesses, battery harnesses develop satisfy customization requirements, increase revenue. To improve our and efficiency. connector a wholly structure, Our product lines and market share in the field of automotive will be further increased. manufacturing capability production Ethernet adopts connection and operating automotive different field of automotive will be further increased.

内容: wire harness products,

内容: other products. To develop high and low voltage connectors, high-speed connectors, customized structures connector and other automotive connectors

内容: Our proprietary gigabit

内容: automotive connectors.

内容: shielded double cable and has been widely used on infotainment systems, other products. Project power relating system to of To high-voltage high-current disconnect on-board other battery control bidirectional system electric develop Partially completed To improve our and efficiency. process trial Our product lines and market share in the field of automotive will be further increased. manufacturing capability production The development, ADASs, domain controllers and

内容: electric vehicles

内容: module, new-generation DC power supply and power for products vehicles.

内容: production and PPAP certification in respect of our new-generation on-board bidirectional DC power supply have been completed.

内容: To develop RSU, TCU and other automotive interconnect products.

内容: Our IoV smart RSU has realized coverage, communication remote short delay,

内容: Our product lines and market share in the field of automotive will be further increased.

内容: smart

内容: interconnect products

内容: high success rate of message sending and other functions. Multi-cavity automatic robot project sorting The robot will change the operation mode of manual cavity-by-cavity plate feeding on the Completed To replace manual

内容: Through upgrading

内容: automation of

内容: handling, identification, plate feeding and other labor intensive

内容: production lines, our production efficiency

内容: production injection greatly workplace realize production, promote upgrading industry. in lines for operations, and realize cavity-by-cavity feeding products for made plate micro from and product yield will be improved.

内容: micro products in the molding improve safety, automatic and automation the Through workshop in the past,

内容: injection molding.

内容: further upgrading of the equipment, to improve the stability of the equipment realize production during automatic of micro

内容: production and finally

内容: products in the injection molding workshop. AI inspection project automatic system The AI automatic Completed To and and replace other realize manual inspection labor precise of essential precision for operations, Through upgrading automation of inspection system will change the traditional operation visual realize automation mode of inspection, automatic upgrading handling, intensive inspection and factors other of

内容: production lines, our production efficiency and product yield will be improved.

内容: inspection and promote in the industry. Through further upgrading of the equipment, to improve the and Particulars of R&D personnel: reliability finally and realize stability of production, unmanned workshops.

内容: appearance, dimensions

内容: components electronic products.

内容: Number of R&D personnel Proportion of R&D personnel to total number of employees Education background of R&D personnel Undergraduate Master Others Ages of R&D personnel Below 30 30-40

内容: Amount of R&D expenses (RMB) Proportion of R&D expenses to operating revenue Amount of R&D expenses capitalized (RMB) Proportion of capitalized R&D expenses to total R&D expenses

内容: Analysis of the cause and effect of significant change in the composition of R&D personnel: □ Applicable √ N/A Analysis of significant change in the proportion of R&D expenses to operating revenue compared with 2019: □ Applicable √ N/A Analysis and reasonableness of significant change in the proportion of R&D expenses capitalized: □ Applicable √ N/A

内容: 5. Cash flows

内容: In RMB Item Cash provided by operating activities Cash used in operating activities Net cash flows from operating activities Cash provided by investment activities Cash used in investment activities Net cash flows from investment activities Cash provided by financing activities Cash used in financing activities Net cash flows from financing activities Net increase in cash and cash equivalents Analysis of main causes of material changes in the related data: √ Applicable □ N/A 1. The cash provided by operating activities was RMB152,974,773,200, an increase of 50.95% year on year, primarily due to an increase in sales, sales revenue collected and tax rebates received. 2. The cash used in operating activities was RMB145?690?006?300, an increase of 54.22% year on year, primarily due to an increase in the raw materials purchased and employee benefits paid. 3. The net cash flows from financing activities was -RMB389?928?100, a decrease of 105.75% year on year, primarily due to repayment of short-term borrowings, loans and interest during the reporting period. Analysis of significant difference between net cash flows from operating activities during the reporting period and net profit in current year: □ Applicable √ N/A 2021 152,974,773,173.48 145,690,006,256.48 7,284,766,917.00 59,103,742,247.41 67,483,404,233.19 -8,379,661,985.78 42,545,854,141.42 42,935,782,234.50 -389,928,093.08 -1,543,267,723.26 2020 Y/Y % Change 101,344,544,382.43 50.95% 94,471,332,896.38 54.22% 6,873,211,486.05 5.99% 56,134,501,620.87 5.29% 65,282,235,798.95 3.37% -9,147,734,178.08 -8.40% 31,843,182,893.74 33.61% 25,056,689,251.71 71.35% 6,786,493,642.03 -105.75% 4,317,464,527.08 -135.74%

内容: V. Analysis of non-main business

内容: Amount Investment income Gain or loss on changes in fair value Impairment loss on assets Non-operating income Non-operating expenses Gain on disposal of assets Other gains Credit loss 689,386,649.74 -115,737,751.66 -162,790,335.12 21,096,536.60 45,672,434.05 -45,266,592.65 853,542,165.37 -26,875,504.69 % of total profit Reason Whether or not sustainable No No No No No No No No

内容: Income from investments and wealth 8.47% management products classified as financial assets at fair value through profit or loss Investment income on financial assets at fair -1.42% value through profit or loss Allowance for impairment of inventories and -2.00% fixed assets 0.26% Revenue from retirement of assets 0.56% Loss on disposal of fixed assets -0.56% Disposal of production equipment 10.48% Government grants Impairment loss on accounts receivable and other -0.33% receivables

内容: VI. Analysis of assets and liabilities

内容: 1. Material changes in components of assets

内容: In RMB December 31, 2021 % of total Amount assets Cash balances Accounts receivable Contract assets and bank 14,204,618,186.43 January 1, 2021 Y/Y % % of total Change Amount assets 15.01% -3.23% Business growth 6.50% increase in the consolidation) 0.00% Increase in inventory storage level along with increase in our -1.50% scale of operation (including increase in the scope of consolidation) -0.02% -0.79% Increase in investment in factory buildings, dormitories and equipment (including increase in the scope of consolidation) Factory building, dormitory and workshop renovation projects in progress and equipment that has not yet been accepted (including increase in the scope of consolidation) Adoption by us of the new lease accounting standard since January 1, 2021 Replenishment of working capital (including increase in the scope of consolidation) (including scope of Reason of material change

内容: Inventories

内容: Investment properties Long-term investment Fixed assets equity

内容: Construction progress

内容: in

内容: Right of use assets

内容: Short-term borrowings Contract liabilities

内容: 0.00% Advances from clients 35

内容: Increase in loans to satisfy the requirements of new projects (including increase in the scope of consolidation) Adoption by us of the new lease accounting standard since January 1, 2021 Forward exchange facilities, wealth management and other investments Prepayments for materials and customs deposits (including increase in the scope of consolidation) Share transfer prices, export rebates and deposits, and insurance indemnities receivable Input tax credits and prepaid and refundable income tax Factory building and workshop renovation expenses (including increase in the scope of consolidation) Share-based payments, unrealized profit on internal asset transactions, government grants, deductible losses before tax and other timing differences Prepayments for equipment, engineering projects and land (including increase in the scope of consolidation) Increase in raw materials purchased in order to fulfill orders along with our business growth (including increase in the scope of consolidation) Accrued expenses and security deposits payable Short-term bonds and inter-company trade account payable (including increase in the scope of consolidation) Government grants relating to capital Accelerated depreciation of fixed assets and temporary difference arising from increase in appraised value of business combinations not under common control

内容: Long-term loans

内容: Lease liabilities Financial assets held for trading

内容: Advances to suppliers

内容: Other receivables Other current assets Long-term deferred expenses

内容: Deferred tax assets

内容: Other non-current assets Notes payable

内容: 0.01% Increase in note transactions

内容: Accounts payable

内容: Other payables Other current liabilities Deferred income

内容: Deferred tax liabilities

内容: Analysis of high proportion of overseas assets: □ Applicable √ N/A

内容: 2. Assets and liabilities at fair value

内容: Beginning balance Gain or loss on changes in fair value Aggregate changes in fair value recorded in equity Impairment loss recognized in the current period Amount acquired in the reporting period Amount sold in the reporting period Other changes

内容: Financial assets 1. Financial assets held for trading (excluding derivative financial assets) 2. Derivative assets financial other 2,854,676,050.46 73,732,025.24 19,182,537,140.74 20,119,745,754.45 1,991,199,461.99

内容: Subtotal of financial assets Investment instruments Total Financial liabilities Other changes: in equity

内容: Other changes are the principal of other equity instruments included due to increase in the scope of consolidation. Whether there’s any material change in the measurement properties of main assets of the Company during the reporting period? □ Yes √ No

内容: 3. Encumbrances on assets as of the end of the reporting period

内容: On September 30, 2021, the 4th meeting of the 5th Board of Directors considered and adopted the Proposal for Applying for an Acquisition Loan from the Banks and Pledging the Shares of the Subsidiary, pursuant to which, we intended to apply to four banks for a syndicated acquisition loan of up to RMB3.4 billion, for a term of five years, which would be mainly used to replace our capital contribution already made to Rikai Yancheng. We pledged 48.013% shares of Rikai Yancheng as security for such acquisition loan for a term of five years. The relevant information was disclosed in our Announcement on Applying for an Acquisition Loan from the Banks and Pledging the Shares of the Subsidiary (No. 2021-080). During the reporting period, we completed the procedures relating to the pledge of the shares of Rikai Yancheng for a term of five years. See “Section X Financial Report – VII. Notes to Items in Consolidated Financial Statements – 81. Assets with restricted ownership or right of use”.

内容: √ Applicable □ N/A Amount of investment in 2021 (RMB) 7,623,854,176.00 Amount of investment in 2020 (RMB) 3,122,574,000.00 Y/Y % Change 144.15%

内容: 2. Major equity investments acquired in the reporting period

内容: Investee Main business Method of investment Amount of investment Shareholding percentage Source of funds Partner Term of investment Status as of Product type the balance sheet date Investment Expected income income/ loss in the reporting period Whether or not litigation Date of any) Disclosure reference (if any) involved in any disclosure (if

内容: Technology development, technical consulting and technical respect and services of in computer of

内容: accessories; design, R&D production ≥ ≥ precision stamping molds (precision precision Rikai Precision y g) Co., Ltd. (precision metal and 0.02mm), molds Announce ment No. Capital injection 6?000,000,000.00 50.01% Self-owned funds N/A Long-term Electronic components Paid in full 0.00 0.00 No February 4, 2021 2021-017 published on www.cnin fo.com.cn molds, parts for of 0.05mm), cavity product standard

内容: Technolog non-metal product molds (Yanchen molds; molded materials, hardware shafts, components components electronics design (exterior parts, and for production

内容: high-temperature resistant insulating stamped rivets, other 3C mechanical

内容: industrial design, product structural design, circuit

内容: design, graphic design, etc.); lease of own idle equipment; commission export aforesaid related licensing: of Total and wholesale, agency supporting and

内容: (except auction), import, services in respect of the products components. manufacturing software, -6?000,000,000.00 ------0.00 0.00 ----

内容: 3. Major non-equity investments that have not yet been completed in the reporting period

内容: 4. Investment in financial assets (1) Investment in securities

内容: Type of security Security code Short name Initial investment cost Method of measurement Beginning carrying amount Gain or loss on changes in fair value in the reporting period Aggregate changes in fair equity Amount acquired in period Amount sold in Gain or loss in the reporting period the reporting period Ending carrying amount Accounting item Investment 603595 Tony Electronic 22,500,000.00 Fair value 114,221,319.04 96,057,510.08 162,951,644.67 0.00 0.00 96,057,510.08 210,278,829.12 in other equity instruments 22,500,000.00 -114,221,319.04 96,057,510.08 162,951,644.67 0.00 0.00 96,057,510.08 210,278,829.12 Self-owned funds Source of funds

内容: Stock listed on domestic or overseas market Total

内容: Disclosure date of the announcement of the Board of Directors approving the investment in securities Disclosure date of the announcement of the shareholders’ meeting approving the investment in

内容: % of ending Whether or not Counterparty Affiliation a related-party transaction Type of derivative Initial investment cost Allowance Date of commencement Date of termination Beginning balance Amount acquired in Amount sold in the the reporting period reporting period for impairment loss (if any) 48,545.26 463,920.39 --512,465.65 534,737.11 1,659,594.71 2,194,331.82 578,098.28 1,725,671.42 2,303,769.7 5,184.08 397,843.68 403,027.76 Ending balance balance to the Actual gain or net asset as at the end of the reporting period Bank Bank Total Source of funds Whether or not involved in any litigation Disclosure date of the announcement of the Board of Directors approving the investment in derivatives (if any) Disclosure date of the announcement of the shareholders’ meeting approving the investment in derivatives (if any) 1. 2. We conduct foreign exchange derivative transactions for the purpose of fixing costs, and avoiding and preventing foreign exchange and interest rate risks, and prohibit any speculation. We have established strict business management policy regarding financial derivative transactions, which contain explicit provisions on the principle of operation, approving power, internal operating process, information segregation measures, internal risk controls, information disclosure and other issues relating to financial Analysis of risks associated with the derivatives held in the reporting period (including without limitation market risk, liquidity risk, credit risk, operational risk and legal risk) and related risk control measures 5. 6. Changes in the market price or fair value of the derivatives held in the reporting period (in the analysis of the fair value Change in the fair value of a foreign exchange derivative is the difference between its fair market price in the month in which the delivery date determined by the of derivatives, the specific approaches, assumptions and Company falls and its contract price. parameters used shall be disclosed) derivative transactions, to control the risks associated with such transactions. 3. 4. We carefully examine the terms of contracts entered into with the relevant banks, and strictly implement the risk management policy to prevent legal risks. Our Finance Department continuously follows up on the changes in the market price or fair value of the relevant foreign exchange derivatives, promptly assesses the changes in risk exposures of such foreign exchange derivatives, reports to the management on a regular basis, promptly reports the abnormal situations discovered, calls attention to the relevant risks, and takes the appropriate emergency measures. In order to prevent any delay in the delivery of forward exchange contracts, we attach great importance to the management of accounts receivable, and have established safety management measures to prevent any delay in the payment of accounts receivable. Our Internal Audit Department is responsible for supervising and auditing the decision-making, management, execution and other issues in respect of foreign exchange derivative transactions. N/A January 23, 2021 Non-affiliate No Non-affiliate No Forward Option 48,545.26 463,920.39 512,465.65 Self-owned funds 0.15% 11.27% 11.42% 19,739.28 49,352.43 69,091.71 loss in the reporting period

内容: Whether there’s any material change in the accounting policies and accounting principles for the measurement of derivatives in the reporting period as compared with the preceding reporting period The Company conducts foreign exchange derivative transactions for the purpose of avoiding foreign exchange risk arising from fluctuations in the foreign exchange rates Special opinion issued by the independent directors of RMB, and effectively controlling the uncertainties of costs caused by foreign exchange risk. The Company has established the Business Management Policy Regarding regarding the Company’s investment in derivatives and Financial Derivative Transactions, to enhance risk management and control over foreign exchange derivative transactions. In addition, the Company only provides related risk control measures self-owned funds, rather than any offering proceeds, as deposit for derivative transactions. The review, voting and other procedures relating to such transactions have complied with the Company Law, the AOA and other applicable regulations. No material change

内容: (1) Description of use of offering proceeds

内容: Year of offering Method of offering Total offering proceeds Total amount of offering proceeds used in the reporting period Aggregate amount of offering proceeds that has been used Total amount of offering proceeds whose purpose was changed in the reporting period Aggregate amount of offering proceeds whose purpose has been changed Percentage of offering proceeds whose purpose has been changed Total amount of unused offering proceeds Purpose and whereabouts of unused offering proceeds Total amount of offering proceeds that has remained unused for more than two years 0 0

内容: Public offering 2020 Total of convertible corporate bonds 300,000 300,000 24,478.69 24,478.69 298,881.41 298,881.41 0 0 Description of use of offering proceeds Pursuant to the Reply on Approval of Public Offering of Convertible Corporate Bonds by Luxshare Precision Industry Co., Ltd. from the China Securities Regulatory Commission (CSRC), we publicly issued 30?000?000 convertible corporate bonds of par value of RMB100.00 each, and raised RMB3?000?000?000.00 in total. After deduction of the underwriter fee and sponsor fee of RMB14,400,000.00 (inclusive of tax) paid to our underwriter, CITIC Securities Co., Ltd., the total subscription amount received was RMB2?985?600?000.00, and after deduction of legal fee, audit and capital verification fee, credit rating fee, information disclosure and other charges, the net proceeds from this offering were RMB2?984?743?424.52. In 2020, we used the offering proceeds of RMB2,744,027,590.66, of which, RMB2,744,027,273.53 was invested in the relevant fund-raising investment projects (RMB2,001,653,153.13 was used to replace to the amount pre-invested), and RMB317.13 was used to pay the relevant account management fee, service charge and other charges. In 2021, we used the offering proceeds of RMB 244,786,916.51, of which, RMB244,786,780.12 was invested in the relevant fund-raising investment projects, and RMB136.39 was used to pay the relevant account management fee, service charge and other charges. The interest generated by the offering proceeds in 2021 is RMB657,387.96. As of December 31, 2021, the balance of the account of offering proceeds was RMB0.00, and the special account for depositing the offering proceeds was cancelled. 0 0 0.00% 0.00% 0 0 N/A

内容: (2) Committed fund-raising investment projects

内容: Whether the Committed investment project and use of over-raised funds project has been changed or partially changed Committed investment project Smart mobile terminal module production line upgrading and expansion project Smart wearable equipment components production line upgrading and expansion project New smart wearable equipment project with an annual production capacity of 4 million sets Replenishment of working capital Subtotal Use of over-raised funds N/A Total Failure to meet the scheduled progress and produce the desired result and reason thereof (please describe on a project by project basis) Reason of significant change in the feasibility of the project Amount and use of over-raised funds and progress of use thereof Change in the place of the fund-raising investment project Adjustment implementation investment project Funds already invested in the fund-raising investment project We have already invested RMB2?001?653?153.13 of self-raised funds in the projects for which the public offering of convertible corporate bonds was made in 2020 prior to the completion thereof, as verified by BDO China Shu Lun Pan Certified Public Accountants LLP in its Report Xin Kuai Shi Bao Zi [2020] No. ZB11783 dated December 1, 2020. Applicable of of the the method of N/A N/A N/A None 300,000 300,000 24,478.67 298,881.4 --131,394.15 The smart wearable equipment components production line upgrading and expansion project failed to produce the desired result, primarily due to shortage of critical raw materials, resulting in a decrease in the operating results. We activelystocked up with the relevant raw materials, so the profit of the project reached 96.62% of the predicted profit in 2021, and 99.14% of the predicted profit in aggregate. No 70,000 300,000 70,000 300,000 203.56 24,478.67 68,677.91 298,881.4 -98.11% 131,394.15 N/A No No 60,000 60,000 0.04 60,026.58 100.04% August 1, 2020 12,682.33 Yes No No 60,000 60,000 25.23 60,031.76 100.05% May 1, 2021 33,952.62 Yes No No 110,000 110,000 24,249.84 110,145.15 100.13% March 1, 2021 84,759.2 N/A No Total committed investment amount Total investment amount as adjusted (1) Amount invested in the reporting period Aggregate amount already invested as of the end of the reporting period (2) Progress of investment as of the end of the reporting period (3) =(2)/(1) Date that the project is ready for its intended use Income earned in the reporting period Whether the project has produced the desired result Whether there’s any significant change in the feasibility of the project

内容: Temporary replenishment of working N/A N/A capital with the unused offering proceeds Amount of surplus offering proceeds and reason thereof Purpose and whereabouts of unused offering proceeds Problems and other matters existing in the use and disclose of offering proceeds None As of December 31, 2021, the balance of the account of offering proceeds was RMB0.00, and the offering proceeds were used in full.

内容: (3) Changes in the fund-raising investment projects

内容: □ Applicable √ N/A There’s no change in the fund-raising investment projects during the reporting period.

内容: VIII. Sale of material assets and equities

内容: □ Applicable √ N/A No material asset has been sold during the reporting period.

内容: IX. Analysis of major subsidiaries and associates

内容: √ Applicable □ N/A Major subsidiaries and associates representing more than 10% of the net profit of the Company: In RMB

内容: Company name Luxshare Precision Limited ICT-LANTO LIMITED Subsidiary Subsidiary Type Main business Purchase and sale of electronic products, data lines, connection lines, connectors, computer and peripherals, plastic and hardware products. Sales and services in respect of internal and external connection lines for IT, communication and consumer electronic applications, and precision connectors. Technology development, technical consulting and technical RMB6,264,312,296 32,118,051,618.12 10,996,563,441.13 49,727,123,010.93 1,255,106,809.05 1,092,231,638.01 USD153,290,323 39,670,045,411.95 3,756,939,895.20 33,200,135,705.13 860,084,363.00 729,281,287.52 USD5,000,000 59,466,332,306.97 5,491,597,678.03 135,508,345,248.07 3,286,048,713.01 3,236,547,298.11 Registered capital Total assets Net assets Operating revenue Operating profit Net profit

内容: Technology (Yancheng) Co., Ltd. services in respect of computer accessories; design, R&D and production of precision stamping molds (precision ≥ 0.02mm), precision cavity molds (precision ≥ 0.05mm), metal product molds, non-metal product molds and standard parts for molds; production of high-temperature resistant molded insulating materials, stamped hardware parts, rivets, shafts, mechanical components and other components for 3C electronics products; industrial design, product design (exterior design, structural design, circuit design, graphic design, etc.); lease of own idle equipment; wholesale, commission agency (except auction), import, export and supporting services in respect of the aforesaid products and related components. Business not subject to licensing: manufacturing of computer software, hardware and peripherals. Computer peripherals, connection lines and connectors; new-type electronic components (electronic devices), instruments and accessories for communication and IT purpose, plastic, rubber and hardware products; research, development, production and sale of special electronic equipment, testing instruments, tools, molds, remote control dynamic models and related supplies and components; production and sale of power supply units and wireless transmission products; development of software; import Lanto Electronic Limited Subsidiary and export of goods and technology (except any business that is subject to licensing, restricted or prohibited pursuant to the applicable laws and administrative regulations) (any business subject to approval according to law may only be operated with the approval of the competent authorities). Business not subject to licensing: manufacturing of automotive components and accessories; research and development of automotive components; wholesale of automotive components and accessories; sale of mechanical components and components; manufacturing of opto-electronic components; sale of opto-electronic components; research and development of special electronic materials; research and development of household appliances. RMB2?320?000?000 18,989,845,478.63 7,396,344,211.40 24,850,269,766.84 1,530,454,712.74 1,374,091,215.23

内容: Subsidiaries acquired and disposed of during the reporting period: √ Applicable □ N/A Company name Method of acquisition or disposal Effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, operation and results of the Company taken as a whole No significant effect on the production, 45

内容: Rugao Luxshare Business Management Service Newly established Partnership (LP) Luxis Technology Limited Newly established

内容: Luxshare Precision Industry (Yancheng) Co., Ltd. Newly established

内容: Luxshare Electronic Technology (Enshi) Co., Ltd. Newly established

内容: Lianxun Smart Equipment (Rugao) Co., Ltd.

内容: Luxshare Technology (Xi’an) Co., Ltd. Luxis Precision Intelligent (Kunshan) Co., Ltd. Manufacturing

内容: Liding Electronic Technology (Dongguan) Co., Newly established Ltd. Luxshare Smart Manufacturing & Electronic Newly established Service (Kunshan) Co., Ltd. Luxshare Investment Co., Ltd. Yancheng Luxshare Business Service Partnership (LP) Management Newly established

内容: Luxshare Smart Equipment (Yancheng) Co., Ltd. Newly established

内容: Changzhi Luxshare Precision Industry Ltd.

内容: Henan Leader Precision Industry Co., Ltd. CALDIGIT HOLDING LIMITED

内容: operation and results of the Company taken as a whole No significant effect on the production, Taihan Precision Technology Co., Ltd. Controlled operation and results of the Company taken as a whole No significant effect on the production, Capital injection and acquisition of Rikai Precision Technology (Yancheng) Co., Ltd. operation and results of the Company control taken as a whole No significant effect on the production, Zhejiang Puson Electronic Technology Co., Ltd. Purchase of shares operation and results of the Company taken as a whole No significant effect on the production, Caseteck Singapore PTE. LTD. Purchase of shares operation and results of the Company taken as a whole No significant effect on the production, Ji’an Jizhou Luxshare Electronics Co., Ltd. Deregistered operation and results of the Company taken as a whole No significant effect on the production, Speedtech (LS-ICT) Co., Ltd. Deregistered operation and results of the Company taken as a whole No significant effect on the production, Luxshare-ICT International B.V. Deregistered operation and results of the Company taken as a whole No significant effect on the production, Luxshare International Cable Co., Ltd. Deregistered operation and results of the Company taken as a whole No significant effect on the production, Wuxi Huihong Electronics Co., Ltd. Sale of shares operation and results of the Company taken as a whole Particulars of major controlled subsidiaries and associates: N/A

内容: X. Structured entities controlled by the Company

内容: XI. Prospects for future development of the Company

内容: 1. Situations of the industry In recent years, despite certain fluctuations, the global smart mobile phone market size has been growing generally. According to IDC, the global smart phone shipments reached 1.35 units in 2021, representing an increase of 7% year on year. After the arrival of the 5G era, the CAGR of the global smart mobile phone market is expected to reach 3.6% from 2020 to 2025. The application of new-generation communication technologies will further drive the market demands for mobile phones, give rise to competitions over diversified functions and upgraded performance on the existing market for mobile phones, and accelerate the upgrading of precision electronic components and assemblies, resulting in an increase in the market size of precision electronic components and assemblies, and product variety. The advancement of 5G and AI technologies will promote the development of different kinds of smart mobile, smart wearable, AR/VR/MR, smart home, smart display and other IoT devices. Driven by the IoT ecosystem and market trends and call for green and environment friendly sustainable development, the terminal products having smart interconnect, health check, environment friendly and other functions will deeply affect people’s habits and customs, and be widely accepted by consumers of all ages. The acceleration of upgrading of terminal products will drive the increase in the integration level of electronic components contained therein and improvement of technological level. The one-stop solution providers that are able to provide the brand customers with better production processes and higher integration level and require the input of less resources will get more orders for related components and finished products. Our business development and industrial operation are expected to fully benefit from this trend. In the field of communication and data center, the series of technical innovation and emerging of new technologies promote the 46

内容: evolution from traditional IT infrastructure to data infrastructure, and along with the continuous development of the Internet, e-commerce, video, cloud computing and other Internet vertical industries have been rapidly springing up, and the global data center market has come into multiple periods of rapid growth. Driven by 5G, big data and edge computing technologies, the ICT industry puts forward higher requirements for data transmission, hardware equipment shows a tendency towards gradual opening of interfaces and high integration of functions, and interconnect components show a tendency towards high speed, high density, high reliability and low loss. In the technology evolution from 4G to 5G, base stations tend to have more ports and more wave numbers. Small size and weather resistance put forward increasingly high requirements for precision manufacturing. Compared with manufacturers of traditional communication products, we will leverage our rich experience in precision manufacturing of consumer electronic products in the new communication business, and are expected to get more and better business opportunities. The communication interconnect market is witnessing rapid upgrading of products, and enters an era of tremendous data. Along with the sharp increase in data volume, the demands for interconnect products for data processing will grow sharply. The development of 5G communication technology, automotive wireless communication technology, AI and other new-generation information technologies and ever increasing demands of consumers for automotive safety and entertainment during ride, among others, will promote the continuous increase in the electrification level of vehicles, resulting in further extension of application scenarios for automotive electronics, and increase in penetration rate, which will be beneficial for the continuous and rapid development of the industry of automotive electronics. As the future development direction of vehicles, new energy vehicles enjoy the support of national policies, their market size grows steadily and the penetration of electric vehicles increases continuously. China has the largest automotive market with the highest level of openness and inclusion and most consumers in the world, utilizes the most advanced smart vehicle technologies and attracts all major carmakers in the world. China ranks among the first in the world in terms of number of smart vehicle brands and models. The existence of a variety of players on the automotive market will promote the industry to make innovations, and bring more opportunities and challenges to component manufacturers. We have built a complete development framework covering components, modules, sub-systems and whole systems, and made complete deployments for core products. 2. Future growth strategy On the basis of our core management’s forward-looking plans in respect of market, products and customers, and through our employees’ unremitting efforts to work conscientiously, fulfill all tasks and make innovations, we have made diversified, integrated and coordinated strategic deployments in the fields of consumer electronics, communication and automotive. In light of the new market situations, we clearly know that opportunities coexist with challenges, and will keep investing in the future, and give full play to our strong core competencies and advantages in various areas, to provide more core value for the industry and our customers. In the next few years, the consumer electronics business will continue to occupy an important position in the Company. We will continue to implement and deepen the concept of vertical integration from components, modules to system, and strive to change the traditional supply ideas and approaches, restructure the supply chain and maximize the synergistic effect, to continue to improve our capability to create value for our customers and seek sustainable development. Meanwhile, with respect to certain core modules and processes, we will follow the strategic principle of “old products, new customers and new market”, strive to extend and deepen the application of products, and increase their shares on different markets and among different customers, to further improve our ability to prevent operating risks. In light of the general economic development trend of enhancing internal and external circulations, and the general background that huge demands for consumer electronic products will be stimulated, the smart consumer electronic products that change life with technology will grow vigorously. Our products include smart wearable, smart home, smart display, etc. We have strong comprehensive capabilities in respect of core components and system assembly for complete units, and have made full preparations for new products/businesses. In the field of AR/VR/MR, we will make complete and in-depth product deployment, leverage our remarkable advantages in production process, lean production, automation and other areas, and strive to make good achievements in the new area. In the field of communication interconnect, by focusing on technology development and combining the efforts of enterprises, universities and research institutes, we are leading the way in certain market segments in the world. In the context of the “Eastern Data, Western Computing” project, we will actively exploit all-round and multi-level development opportunities. In the future, we will adhere to the strategic principle of integrating “application, development and early research”, closely follow the market trends and frontier technologies, and strive to make all-round breakthroughs on more market segments. With respect to the radio frequency communication business, we will focus on the strategic plan of “core components + modules + system”, make continuous investments in design and R&D, improve the capability to produce core components on our own, and improve our internal operation efficiency in lean production, supply chain management and other areas through transformation and upgrading towards digitalization. Facing the business opportunities brought by “electrification”, “intelligentization” and “interconnection” of vehicles to Chinese automotive companies, we have established clear strategic objectives, that is, to focus on the tier-1 core component market. In the waves of electrification of automotive consumption, the stable supply pattern in the past will be broken, and comprehensive manufacturers that have rich experience in both the fields of consumer electronics and automotive will get more business opportunities. In the next few years, we will continue to apply our experience of precision manufacturing in the field of consumer electronics and communication and our capability to develop communication-level high speed transmission solutions to the automotive business, and give full play to our advantages. Meanwhile, we will continuously improve our tier-1 47

内容: capabilities on the basis of our joint venture vehicle ODM platform, and embrace the new challenges and new opportunities brought by the flourishing era of smart EV. 3. Business plan for the next year In 2021, though we faced all sorts of challenges from the internal and external environment, we always stood in awe of market opportunities. We worked hard to fulfill all tasks and overcome all kinds of difficulties, while accomplishing the objectives established at the beginning of the year, and developed the business plan for the next year, In 2022, we will continue to exploit our main business, and firmly implement the established business plans. While seeking new opportunities in respect of component, module and system solutions on the consumer electronics, smart mobile, smart wearable and other IoT markets, such as display modules for smart mobile terminals, rear cover modules for smart mobile terminals, voice coil motors, RF front modules, AR/VR/MR, we will focus on the development of automotive, communication, industrial, energy, healthcare and other new markets, new materials, new processes, new applications and new technologies. With respect to entities and businesses newly acquired or incubated, we will fully leverage our strengths and give support in customer resources, supply chain resources, lean production, automation, digitalization, intelligentization, etc., in order to achieve the strategic objectives of rapid cultivation and benefit amplification. With respect to the automotive business, we will continue to cooperate with our domestic and foreign brand customers in the development of components, and on the basis of automotive “nervous” system, further expand the lines of connectors (high-voltage, low-voltage and high-speed connectors, Busbar, etc.), new energy (PDUs, BDUs, inverters, energy storage, etc.), smart cabin (domain controllers, infotainment system, multi-media instrument panels, etc.), smart interconnect (RSUs, TCUs, etc.), and other products. Meanwhile, in reliance on the vehicle ODM platform jointly established with Chery that provides our core automotive component business with a frontier R&D, design and mass production platform and access to the overseas market, we will vigorously develop our tier-1 business. Our superior products will have an opportunity to grow from 0 to 1 through the incremental business provided by other brand customers of this ODM platform and Chery, and we will leverage our advantages to take part in the competition, to have our tier-1 products pass validation by the brand customers. Our medium-to-long term goal is to grow into a tier-1 manufacturer in the global automotive component industry in the next three to five years. With respect to the communication business, we always regard the technical capabilities as the foundation for our business development. We will drive the growth of electric connection, optical connection, RF communication, thermal management and other existing core component products by leveraging our technologies and strong precision manufacturing capability, and through vertical integration, make further deployments in the server and other whole unit assembly business, center on the “complete unit + core components” double development strategy, and strive to grow into a comprehensive solution provider offering all kinds of products in the field of data and communication. In 2022, while seeking business development, we will work harder to improve our operation and management capabilities, further enhance our platforms to ensure that they meet the development requirements of the relevant business segments, and incorporate digital management in all links in operation. With respect to organization management, cadre management and performance incentives, we will continue to explore the ways to upgrade and optimize the current management modes, through continuous improvement of mechanisms, effectively arouse the initiative of cadres, and pool the wisdom and efforts of everyone, to give full play to the organizational effectiveness. 4. Capital required for future development strategy and capital utilization plan As of December 31, 2021, our equity-debt ratio was 62.03%. In 2022, our business is expected to maintain rapid growth, and the exploitation of new markets and entry of production of new projects require enormous capital. Therefore, we published the financing plan by private offering of shares in February 2022, in order to support our sustainable development in the diversified field of consumer electronics and automotive in the next few years. Along with the improvement of our position in the industry and stabilization of our relationship with customers, we have obtained certain competitive advantages. We will continue to strictly control capital expenditures in each project, regularly analyze and review the return on investment in each capital expenditure project, and continue to improve our management of accounts receivable, inventories and other areas, to maximize the efficiency of capital utilization. We will consider all available sources of financing at different periods according to the requirements of our development strategy, to create more value for our shareholders. 5. Future risks (1) Risk of fluctuation of macro economy The numerous uncertainties existing in the domestic and foreign macro environment at present, such as the spread of the epidemic situation throughout the world, the trade frictions between China and the United States, complicated and grave global political situation, worsening geopolitical situation and extensive geopolitical struggles, might result in slowdown of global economy, and affect people’s income, purchasing power and willingness to spend. If the uncertainties of the macro environment continue for a long time, the industry will be impacted and face certain challenges. (2) Risk of foreign exchange rate At present, our revenue from the overseas market constitutes a large proportion in our total operating revenue, and our overseas 48

内容: transactions are mainly settled in US Dollars. Our sales on the overseas market totaled RMB57?465?383?800, RMB85?046?280?900 and RMB143,452,850,200 in 2019, 2020 and 2021, representing 91.92%, 91.94% and 93.18% of our revenue from main business respectively. Because China implements the managed floating rate system, the foreign exchange rates fluctuate along with the changes in domestic and foreign political and economic environment. If the foreign exchange rates fluctuate greatly, the exchange gains or losses may affect our operating results. In order to reduce the uncertainties caused by fluctuations of foreign exchange rates on our operating results, we will strive to keep abreast of the movement of foreign exchange rates, strictly control the proportion of foreign currency denominated assets in our net assets, and through foreign exchange derivative transactions, reduce the effect of the fluctuation of foreign exchange rates. (3) Management risk We have been growing rapidly in recent years, and continuously expanded our business in consumer electronics, communication, automotive and other fields. We have a great number of operating entities which are relatively decentralized. Due to the impact of the trade frictions between China and the United States and spread of the epidemic situation throughout the world, our customers will put forward increasingly high requirements for the international deployment of our production capacity, which will in turn put forward higher requirements for our operation and management capabilities and pool of outstanding talents. If our management level cannot satisfy the requirements of the rapid growth of our scale of operation, we may face certain management risks. (4) Risk of relative concentration of customers We attach great importance to maintaining long-term and stable cooperation relationships with our major customers. At present, our customers are relatively concentrated, most of whom are engaged in consumer electronics. Though they are first-class customers in the industry, have strong and leading competencies on the market, and have maintained years of stable cooperation relationship with us, if any major customer falls into serious difficulties in its operation, we may face certain operating risk. In view of these risks, we will adopt sound risk management concept, establish effective risk management mechanisms, and continuously improve our risk management policies, to promote our sustainable healthy development.

内容: XII. Investigation, research, communication, interview and other activities

内容: √ Applicable □ N/A Method of communication Particulars of the investigation and research activity available at Refer to Luxshare-ICT (stock code: 002475) Explanation Information about about our Investigation and operating results Research Activity in 2020 (20210430) published on www.cninfo.com.cn on April 30, 2021 Introduction about our general situation and future development plans Introduction about our strategic deployments and related businesses Introduction about our Refer to the Record of Investor Relations Activity dated April 30, 2021 published on www.cninfo.com.cn on May 6, 2021 Refer to the Record of Investor Relations Activity dated May 18, 2021 published on www.cninfo.com.cn on May 19, 2021 Refer to the Record of Investor Relations 49 Main topic of discussion and information provided

内容: Company meeting room at No. 313 Beihuan Communication Road, Qingxi Institution by telephone Town, Dongguan, Guangdong

内容: Company meeting room at No. 313 Beihuan April 30, 2021 Road, Qingxi Town, Dongguan, Guangdong Company meeting room at No. 313 Beihuan May 18, 2020 Road, Qingxi Town, Dongguan, Guangdong Company August 25, 2020 meeting room at

内容: No. 313 Beihuan Road, Qingxi Town, Dongguan, Guangdong operating results in the first half of 2021 and general situation Activity dated August 25, 2021 published on www.cninfo.com.cn on August 26, 2021

内容: We have always been committed to promoting the establishment and improvement of a modern corporate system, regulating the operation of the listed company and improving the corporate governance structure. During the reporting period, we kept on improving our corporate governance structure, established and improved rules and regulations, regulated corporate operations, strengthened information disclosure, actively conducted investor relations management and improved corporate governance level in strict accordance with the requirements of the Company Law, the Securities Law, the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange, the Guidelines for Articles of Association of Listed Companies, the Code of Corporate Governance for Listed Companies, the Guide on Self-regulatory Supervision for Companies Listed on the Shenzhen Stock Exchange No. 1 – Code of Operations for Companies Listed on the Main Board and other applicable laws, regulations and normative documents. (I) Shareholders and shareholders’ meeting: We perform the procedures for convening, holding and voting at shareholders’ meetings in strict accordance with the Company Law, the AOA, the Rules of Procedure of the Shareholders’ Meeting and other relevant provisions and requirements, and treat all shareholders fairly. We permit shareholders to elect to vote in person or on line at our shareholders’ meetings, so as to enable minority shareholders to fully exercise their voting rights. When a shareholders’ meeting considers any related-party transaction, we require the interested shareholders to abstain from voting, and ensure that such related-party transaction is conducted on an arm’s length basis without prejudice to the interests of shareholders. When a shareholders’ meeting considers any material matter that affects the interests of minority shareholders, the votes cast by them are counted separately. All shareholders’ meetings are convened and held by our Board of Directors in the presence of lawyers. (II) Relationship with the controlling shareholder: We are independent of our controlling shareholder in operation, assets, personnel, organization and finance, and each of our Board of Directors, Board of Supervisors and other internal bodies operates independently. Our controlling shareholder is strict with itself and has not directly or indirectly interfered with our decision-making and business activities without the authorization of the shareholders’ meeting, or occupied our funds for non-operating purpose. (III) Directors and Board of Directors: We elect directors and engage independent directors in strict accordance with the relevant procedures set forth in the Company Law and the AOA. We now have seven directors, including three independent directors, who are experts in law, accounting and other areas. The number of members and composition of our Board of Directors comply with the requirements of the applicable laws and regulations and the AOA. Our Board of Directors has four committees, including Audit Committee, Strategy Committee, Nomination Committee and Compensation and Performance Appraisal Committee, each of which has a reasonable member structure, and provides scientific and professional opinions and references for the decision-making of the Board of Directors. Our Board of Directors has convened and held meetings, and implemented the resolutions of the shareholders’ meeting in strict accordance with the AOA and the Rules of Procedure of the Board of Directors. All directors have performed their duties diligently, and seriously attended the meetings of the Board of Directors and shareholders, and safeguarded the legitimate rights and interests of the Company and the shareholders. (IV) Supervisors and Board of Supervisors: Our Board of Supervisors has elected supervisors in strict accordance with the relevant procedures set forth in the Company Law and the AOA. We now have three supervisors, including one chairman. The number of members and composition of our Board of Supervisors comply with the requirements of the applicable laws and regulations and the AOA. Our Board of Supervisors has convened and held meetings in strict with the AOA and the Rules of Procedure of the Board of Supervisors. All supervisors have seriously performed their duties, effectively supervised and expressed independent opinions on our financial affairs and the legality and regulatory compliance of the performance of duties by our directors and executives in good faith and diligently, and safeguarded the legitimate rights and interests of the Company and the shareholders. (V) Performance appraisal and incentive and restraint mechanisms: In order to establish sound incentive mechanisms, and enhance the concept of joint sustainable development of the Company and the management and key employees, we have implemented the share incentive plans to enhance the benefit sharing and restrain mechanisms between shareholders and key business personnel, maintain the stability of the management team and key business personnel, ensure the achievement of our development strategy and business objectives, and seek long-term stable development. The appointment of our executives is open and transparent, and complies with the applicable laws and regulations. (VI) Stakeholders: We fully respect the legitimate rights and interests of stakeholders, and strive to coordinate and balance the interests of society, shareholders, the Company, employees and other stakeholders, and jointly promote our sustained and steady development. (VII) Information disclosure and transparency: We have performed our information disclosure obligations truthfully, accurately, timely and completely in strict accordance with the applicable laws and regulations and our Information Disclosure Management Measures, and designated the Securities Times and www.cninfo.com.cn as the media for us to disclose information. We have kept 51

内容: non-public information in strict confidence, seriously registered and reported the insiders pursuant to our Insider Management Policy, established the filing policy for insiders, and timely submitted the same to the competent regulatory authorities for the record in accordance with the relevant provisions. We also strictly regulate the reporting of our information to external information users. When receiving specific visitors, we receive them in strict accordance with the relevant requirements, require each of them to sign a Letter of Commitment, and timely disclose the relevant record of investigation and research activity on the e-interaction platform of the Shenzhen Stock Exchange. During the reporting period, we did not take advantage of any inside information to trade our shares. We have set up hotlines for investors and investor relations management section, and designated special persons responsible for timely communication with investors. In addition, we take the initiative to timely contact and communicate with, and report relevant matters to, the competent regulatory authorities, in order to accurately understand the relevant regulatory requirements for information disclosure and further improve the transparency and quality of our information disclosure. We have disclosed information in a true, accurate, complete and timely manner in strict accordance with the requirements for substance and form, to ensure that all shareholders have access to our information through different channels. Is there any significant difference between the actual circumstance of corporate governance of the Company and the requirements of the applicable laws, administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies? □ Yes √ No There isn’t any significant difference between the actual circumstance of our corporate governance and the requirements of the applicable laws, administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies.

内容: II. The Company’s independence of its controlling shareholder and actual controller in assets, personnel, finance, organization and operation

内容: During the reporting period, we operated in strict compliance with the Company Law and the AOA, gradually improved our corporate governance structure, were independent of our controlling shareholder in assets, personnel, finance, organization and operation, had our own independent and complete business, were independent in management, and had independent R&D, production and sales systems. During the reporting period, our production and operation were stable, and we had sound internal bodies and were able to operate independently in compliance with the applicable regulations. (I) Integrity of assets We are a company limited by shares established through an overall change in organization form according to law, and have our own independent and complete assets. We have performed the relevant procedures for changes in assets and shareholding according to law. We have not provided any guarantee for the obligations of shareholders on the security of our assets or credit, or lent any loan or credit line granted to us to any shareholder. We have full control over all of our assets, and none of our assets or funds is occupied by our controlling shareholder to the detriment of our interest. (II) Independence in personnel Our directors, supervisors and executives have been legally appointed in accordance with the Company Law, the AOA and other applicable laws, rules and regulations. All of our executives (except independent directors) exclusively work in and receive remunerations form the Company, and do not hold any post (other than director and supervisor) concurrently in any affiliate of shareholders or any entity engaging in any business same as or similar to our business. We are independent in employees, manage their remunerations, social security and other affairs independently, and have sound personnel management policies and system in place. (III) Independence in finance We have independent financial accounting department and internal audit department, and independent accounting system and financial management policies in place that comply with the applicable regulations, and make financial decisions independently. Since our establishment, we have opened separate bank accounts, filed tax returns and paid taxes independently according to law, and executed external contracts independently, and had not shared any bank account or paid any tax in combination with any shareholder. (IV) Independence in organization We have established a sound governance structure composed of the shareholders’ meeting, the Board of Directors and the Board of Supervisors, and independent and complete operation and management bodies that meet our development requirements and conform to our actual situations, each of which performs its powers and functions independently in accordance with the AOA and our internal management system. Since our establishment, our production, operation and offices have been totally independent of our shareholders.

内容: (V) Independence in operation We have complete corporate property rights and independent R&D, production and sales systems, carry out business independently, keep separate accounts, and make decisions and assume liabilities and risks independently, and do not rely on any shareholder or other affiliate in our production and operation activities.

内容: IV. Annual and extraordinary shareholders’ meetings held during the reporting period

内容: 1. Shareholders’ meetings held during the reporting period

内容: Session Type of meeting Parentage of investors attending the meeting Date of meeting Date of disclosure Resolution of the meeting 2020 Work Report of the Board of Directors and other 12 proposals were approved by vote, as disclosed in our Announcement No. 2021-056.

内容: First extraordinary shareholders’ meeting in 2021

内容: Proposal for Applying for Offering Super Short-term Commercial Papers and other 4 October 26, 2021 proposals were approved by vote, as disclosed in our Announcement No. 2021-090.

内容: 2. Extraordinary shareholders’ meetings convened on the requisition of holders of preferred shares whose voting rights have been restituted

内容: V. Directors, supervisors and executives

内容: Beginning date of the term of office End date of the term of office No. of additional shares acquired in the reporting period No. of shares disposed of in the reporting period Changes in the number of shares held due to other reasons Cause of increase or decrease in the number of shares held

内容: Chairman of the Board of Directors & General Manager

内容: May 18, 2024 Liquidation of shares to satisfy personal capital demands Additional shares acquired as a result of exercise of incentive share options

内容: LI Wei ZHANG Ying LIU Zhonghua SONG Yuhong XIA Yanrong

内容: Director and Deputy General Manager Independent director Independent director Independent director Chairman of the Board of

内容: Incumbent Incumbent Incumbent Incumbent Incumbent

内容: Supervisors MO Rongying YI Peizan HUANG Dawei Supervisor Supervisor Board Secretary & Deputy General Manager Incumbent Incumbent Incumbent Female Female Male 42 37 50 May 22, 2018 February 22, 2009 May 25, 2018 May 18, 2024 May 18, 2024 May 21, 2024 439,390 439,390 Additional shares acquired as a result of exercise of incentive share options Additional shares acquired as a result of exercise of incentive share options Additional shares acquired as a result of exercise of incentive share options

内容: Independent director Independent director --

内容: Whether any director or supervisor retired or any executive was removed during the reporting period? □ Yes √ No Changes in directors, supervisors and executives: √ Applicable □ N/A Name LI Bin YE Yiling XU Huaibin LIN Yifei LI Bin YE Yiling WANG Tao LI Wei LIU Zhonghua SONG Yuhong WANG Tao LI Wei Director Director Independent Director Independent Director Deputy General Manager Deputy General Manager Director Director Independent Director Independent Director Deputy General Manager Deputy General Manager Title Type Retired upon expiration of term of office Retired upon expiration of term of office Retired upon expiration of term of office Retired upon expiration of term of office Retired upon expiration of term of office Retired upon expiration of term of office Elected Elected Elected Elected Appointed appointed Date May 18, 2021 May 18, 2021 May 18, 2021 May 18, 2021 May 21, 2021 May 21, 2021 May 18, 2021 May 18, 2021 May 18, 2021 May 18, 2021 May 21, 2021 May 21, 2021 Reason Re-elected of the Board of Directors Re-elected of the Board of Directors Re-elected of the Board of Directors Re-elected of the Board of Directors Re-elected of the Board of Directors Re-elected of the Board of Directors Re-elected of the Board of Directors Re-elected of the Board of Directors Re-elected of the Board of Directors Re-elected of the Board of Directors Re-elected of the Board of Directors Re-elected of the Board of Directors

内容: Professional background and main work experience of our current directors, supervisors and executives and main positions held by them in the Company: (I) Directors Ms. WANG Laichun, 55 years old, resident of Hong Kong, China; EMBA, Shenzhen Graduate School of Tsinghua University; is now our Chairman of the Board of Directors and General Manager; former Director of the Shenzhen High-tech Industry Association and Vice Chairman of the Shenzhen Electronics Industry Association. Ms. WANG Laichun worked in the Wiring Business Unit of Foxconn, a subsidiary of Hon Hai Group, for nearly ten years since 1988, and left Foxconn in 1997 to start her own business. In 1999, Ms. WANG Laichun and Mr. WANG Laisheng jointly purchased the shares of Luxshare Limited. In 2004, she founded Luxshare Precision Industry (Shenzhen) Co., Ltd. through Luxshare Limited and acted as its Chairman of the Board of Directors. Ms. WANG Laichun is the Chairman of our 1st, 2nd, 3rd, 4th and 5th Board of Directors. Mr. WANG Laisheng, 58 years old, resident of Hong Kong, China; is now our Vice Chairman of the Board of Directors; former Executive Director of the Shenzhen Quality Association and Director of the Guangdong Laboratory Federation. Mr. WANG Laisheng was engaged in individual business since mid-1980s. Mr. WANG Laisheng and Ms. WANG Laichun jointly purchased the shares of Luxshare Limited in 1999 and founded Luxshare Precision Industry (Shenzhen) Co., Ltd. in 2004. Mr. WANG Laisheng is the Vice Chairman of our 1st, 2nd, 3rd, 4th and 5th Board of Directors. Mr. LI Wei, 42 years old, Chinese nationality, undergraduate; is now chief of our Precision Component Business Unit. Mr. LI Wei has nearly 20 years’ experience in precision manufacturing and has been engaged in product design, validation and quality management in many precision manufacturing companies. He joined Luxshare-ICT in July 2019, responsible for the operation and management of the Corporate Business Division. Mr. WANG Tao, 37 years old, Chinese nationality, undergraduate from the Southeast University; is now chief of our Acoustic Business Unit. Mr. WANG Tao has rich experience in precision manufacturing of components. He joined Luxshare-ICT in April 2009, responsible for product development and management. Ms. ZHANG Ying, 59 years old, Chinese nationality; Doctor of Laws, Wuhan University; postdoctoral fellowship in law, Chinese Academy of Social Sciences; associate professor of the Shenzhen University Law School. Ms. ZHANG Ying joined the China University of Geosciences in 1984 as a lecturer, and the Institute of Political Science and Law, Wuhan Academy of Social Sciences in 1994 as an assistant researcher, and has acted as the Executive Director of the China European Law Research Association 56

内容: since 2009. Ms. ZHANG Ying has obtained the qualification as an independent director from the Shenzhen Stock Exchange, and is an Independent Director of our 4th and 5th Board of Directors. Mr. LIU Zhonghua, 57 years old, Chinese nationality, without foreign permanent residence, master, professor of accounting; is now professor and tutor of postgraduates of the Guangdong University of Foreign Studies School of Accounting, Director of the Accounting Society of China, Vice Chairman of the Accounting Society for Foreign Economic Relations & Trade of China, Executive Vice Chairman of the Guangdong Association of Management Accountants, and Executive Director of the Accounting Society of Guangdong. Mr. LIU Zhonghua has obtained the qualification as an independent director from the Shenzhen Stock Exchange, and is an Independent Director of Guangdong Provincial Expressway Development Co., Ltd., GEM Co., Ltd. and SGIS Songshan Co., Ltd. Ms. SONG Yuhong, 51 years old, Chinese nationality; Master of Laws, Wuhan University; Bachelor of Laws, Southwest University of Political Science & Law; MBA, Grandes écoles de Commerce; is now partner of DeHeng Law Offices (Shenzhen), and mediator of the International Commercial Mediation Center for Belt and Road Initiative – Luohu Court of Shenzhen Mediation Center. Ms. SONG Yuhong has obtained the qualification as an independent director from the Shenzhen Stock Exchange, and is an Independent Director of our 5th Board of Directors. (II) Supervisors Ms. XIA Yanrong, 41 years old, Chinese nationality, undergraduate majoring in financial management, is now our supervisor. Ms. XIA Yanrong worked at the Finance Department of 3CEMS Group Prime Technology (Guangzhou) Co., Ltd. from January 2003 to April 2006, and the Finance Department of Dachang Electronic Technology (Suzhou) Co., Ltd., a subsidiary of P-TWO, from April 2006 to April 2009, and joined us since April 2009, and served as chief of the Finance Department at Kunshan Lanto, and chief of the Finance Department and chief of the Credit Management Department at Luxshare-ICT, and is now Director of our Central Finance Department and Credit Management Department. Ms. XIA Yanrong is a member of our 4th and 5th Board of Supervisors. Ms. MO Rongying, 42 years old, Chinese nationality, majoring in business administration, is now our supervisor. She was chief of the Planning Department at Thomson Multimedia (Dongguan) Co., Ltd., before joining us in June 2007 as chief of the Central Customs Affairs Department. Ms. MO Rongying is a member of our 4th and 5th Board of Supervisors. Ms. YI Peizan, 37 years old, Chinese nationality, joined our Finance Department in 2004, is now our supervisor. Ms. YI Peizan is a member of our 1st, 2nd, 3rd, 4th and 5th Board of Supervisors. (III) Executives Ms. WANG Laichun, whose resume is set out in “Directors” above. Mr. WANG Tao, whose resume is set out in “Directors” above. Mr. LI Wei, whose resume is set out in “Directors” above. Mr. HUANG Dawei, 50 years old, citizen of Chinese Taiwan, graduated from the National Tsing Hua University Institute of Industrial Engineering, Master of Industrial Engineering, is now our Deputy General Manager and Board Secretary. Mr. HUANG Dawei worked in a Fortune 500 company, responsible for market development and operation management, before joining Luxshare Electronic Kunshan as the legal representative, director and General Manager in June 2013. Mr. HUANG obtained a Qualification Certificate for Board Secretary from the Shenzhen Stock Exchange in October 2017, and meets the qualifications required in the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange and other applicable laws and regulations and the AOA. Mr. WU Tiansong, 52 years old, citizen of Chinese Taiwan, received a bachelor’s degree from the National Taiwan University of Science and Technology, is now chief of the Finance Department at Luxshare-ICT. Mr. WU Tiansong served as a senior auditor at the Audit Department of Deloitte Touche Tohmatsu Limited from August 1996 to August 1999, and worked in the Underwriting Department of Taiwan Yuanda Securities Corp., and served as the chief of the Accounting Director at Taiwan P-TWO Industries Inc. and Uniwill Computer Corp., and chief of the Finance Department at Zhongshan Ichia Electronics Co., Ltd. from September 1999 to March 2009. He joined us in 2011. Positions held in shareholders: □ Applicable √ N/A Positions held in other entities: √ Applicable □ N/A Name Entity Position Beginning date of the term of office End date of the term of office Whether or not receive remunerations and subsidies

内容: from such entity No No No No No No No No No

内容: WANG Laichun WANG Laichun WANG Laichun WANG Laichun WANG Laichun WANG Laichun WANG Laisheng WANG Laisheng WANG Laisheng WANG Laisheng WANG Laisheng

内容: Luxsan Precision Technology (Jiangsu) Co., Ltd. BCS Automotive Interface Solutions (Suzhou) Co., Ltd. Luxshare Electronic Technology (Kunshan) Co., Ltd. Rikai Precision Technology (Yancheng) Co., Ltd. Xiexun Electronic (Ji’an) Co., Ltd. Fujian JK Wiring Systems Co., Ltd. Luxsan Precision Technology (Jiangsu) Co., Ltd. Xunmu Information Technology (Shanghai) Co., Ltd. Lishan Smart Manufacturing Technology (Guangdong) Co., Ltd. Lishen Smart Manufacturing Technology (Shenzhen) Co., Ltd. BCS Automotive Interface Solutions (Xi’an) Co., Ltd.

内容: Director Chairman Chairman Chairman Vice Chairman Chairman Chairman General Manager Managing Director Manager Chairman Managing Director General Manager Chairman

内容: November 25, 2020 July 18, 2018 March 18, 2014 February 3, 2021 November 12, 2005 June 18, 2012 November 25, 2020 April 27, 2021 November 2020 February 2021 December 2018 18,

内容: WANG Laisheng WANG Laisheng WANG Laisheng WANG Laisheng WANG Laisheng WANG Laisheng WANG Laisheng WANG Laisheng WANG Laisheng WANG Laisheng WANG Laisheng WANG Laisheng LIU Zhonghua

内容: Xiexun Electronic (Ji’an) Co., Ltd. Lanto Electronic Limited Kunshan Luxshare Precision Industry Co., Ltd. Donguan Xuntao Electronic Co., Ltd. Dongguan Leader Precision Industry Co., Ltd. Kunshan Luxshare Precision Industry Co., Ltd. Suining Luxshare Precision Industry Co., Ltd. Xingning Luxshare Precision Industry Co., Ltd. Luxshare Precision Industry (Chuzhou), Ltd. Fengshun Luxshare Precision Industry Co., Ltd. Dongguan Luxshare Precision Industry Co., Ltd. Jiangxi Luxshare Intelligent Manufacture Co., Ltd. Guangdong Provincial Expressway Development Co., Ltd. GEM Co., Ltd. SGIS Songshan Co., Ltd.

内容: Vice Chairman Director Vice Chairman Chairman Vice Chairman Managing Director Managing Director Managing Director Managing Director Chairman Director Independent Director Independent Director Independent

内容: Director Independent Director Managing Director & General Manager Managing Director & General Manager Managing Director Chairman Managing Director General Manager Managing Director General Manager Supervisor Supervisor Supervisor Supervisor Supervisor Supervisor Director General Manager Supervisor &

内容: Jiangxi GETO New Materials Co. Ltd. Luxshare Intelligent Manufacture Technology (Changshu) Co., Ltd.

内容: Kunshan Luxshare Business Management Development Co., Ltd. Lanto Electronic Limited Luxshare Smart Manufacturing (Rugao) Co., Ltd.

内容: November 2020 November 2019 December 2020

内容: XIA Yanrong XIA Yanrong XIA Yanrong XIA Yanrong XIA Yanrong YI Peizan HUANG Dawei

内容: Luxshare Intelligent Manufacture (Zhejiang) Co., Ltd. Zhuhai Kinwong Flexible Circuit Co., Ltd. Luxshare Precision Industry (Suzhou) Co., Ltd. Luxshare Electrical (Shanghai) Co., Ltd. Luxshare Precision Industry (Enshi) Co., Ltd. Xiexun Electronic (Ji’an) Co., Ltd. Luxshare Electronic Technology (Kunshan) Co., Ltd.

内容: April 8, 2019 December 3, 2018 February 18, 2019 December 2, 2019 October 24, 2018 August 28, 2017 March 17, 2014

内容: Luxshare Electronic Technology March 17, 2014 No (Kunshan) Co., Ltd. WU Tiansong Huzhou Jiuding Electronic Co., Supervisor October 12, No Ltd. 2012 Punishments imposed by the securities regulatory authorities in the past three years on the directors, supervisors and executives of the Company currently in office or leaving office during the reporting period: □ Applicable √ N/A

内容: 3. Remunerations of directors, supervisors and executives

内容: Decision-making process, criteria for determination and actual amount in respect of remunerations of directors, supervisors and executives: During the reporting period, directors, supervisors and executives were subject to performance appraisal, and their annual income consisted of basic annual salaries and long-terms incentives, and was determined on the basis of our business situation and the result of year-end performance appraisal. Our independent directors receive an emolument of RMB80,000 per year each, plus reimbursement of travel, office and other expenses, from us. Remunerations of directors, supervisors and executives paid in the reporting period:

内容: In RMB0’000 Total remuneration received from the Company (inclusive of tax) 240 240 95.11 85.2 180.68 116.44 8 8 8 0 0 48.26 41.06 9.23 93.86 121.16 1,295 Whether or not receiving remunerations from any affiliate of the Company No No No No No No No No No No No No No No No No -

内容: WANG Laichun WANG Laisheng WANG Tao LI Wei LI Bin YE Yiling XU Huaibin LIN Yifei ZHANG Ying LIU Zhonghua SONG Yuhong XIA Yanrong MO Rongying YI Peizan HUANG Dawei WU Tiansong Total

内容: Chairman of the Board of Directors & General Manager Vice Chairman of the Board of Directors Director & Deputy General Manager Director and Deputy General Manager Director & Deputy General Manager Director & Deputy General Manager Independent director Independent director Independent director Independent director Independent director Chairman of the Board of Supervisors Supervisor Supervisor Board Secretary & Deputy General Manager CFO

内容: Female Male Male Male Male Female Male Male Female Male Female Female Female Female Male Male -

内容: Incumbent Incumbent Incumbent Incumbent Retired Retired Retired Retired Incumbent Incumbent Incumbent Incumbent Incumbent Incumbent Incumbent Incumbent

内容: VI. Performance of duties by the directors during the reporting period

内容: 1. Meetings of the Board of Directors held during the reporting period

内容: Session 29th meeting of the 4th Board of Directors Date of meeting January 22, 2021 Date of disclosure January 23, 2021 Resolution of the meeting Refer to the Announcement on Resolutions of the 29th meeting of the 4th Board of Directors disclosed on www.cninfo.com.cn and the Securities Times (Announcement No. 2021-007). Refer to the Announcement on Resolutions of the 30th meeting of the 4th Board of Directors disclosed on www.cninfo.com.cn and the Securities Times (Announcement No. 2021-015). Refer to the Announcement on Resolutions of the 31st meeting of the 4th Board of Directors disclosed on www.cninfo.com.cn and the Securities Times (Announcement No. 2021-028). Refer to the Announcement on Resolutions of the 32nd meeting of the 4th Board of Directors disclosed on www.cninfo.com.cn and the Securities Times 60

内容: 30th meeting of the 4th Board of Directors

内容: 31st meeting of the 4th Board of Directors 32nd meeting of the 4th Board of Directors

内容: (Announcement No. 2021-050). 1st meeting of the 5th Board of Directors May 21, 2021 May 22, 2021 Refer to the Announcement on Resolutions of the 1st meeting of the 5th Board of Directors disclosed on www.cninfo.com.cn and the Securities Times (Announcement No. 2021-057). Refer to the Announcement on Resolutions of the 2nd meeting of the 5th Board of Directors disclosed on www.cninfo.com.cn and the Securities Times (Announcement No. 2021-062). Refer to the Announcement on Resolutions of the 3rd meeting of the 5th Board of Directors disclosed on www.cninfo.com.cn and the Securities Times (Announcement No. 2021-071). Refer to the Announcement on Resolutions of the 4th meeting of the 5th Board of Directors disclosed on www.cninfo.com.cn and the Securities Times (Announcement No. 2021-077). Refer to the Announcement on Resolutions of the 5th meeting of the 5th Board of Directors disclosed on www.cninfo.com.cn and the Securities Times (Announcement No. 2021-092). Refer to the Announcement on Resolutions of the 6th meeting of the 5th Board of Directors disclosed on www.cninfo.com.cn and the Securities Times (Announcement No. 2021-096).

内容: 2nd meeting of the 5th Board of Directors

内容: 3rd meeting of the 5th Board of Directors

内容: 4th meeting of the 5th Board of Directors

内容: 5th meeting of the 5th Board of Directors

内容: 6th meeting of the 5th Board of Directors

内容: 2. Attendance of the directors at meetings of the Board of Directors and shareholders

内容: Attendance of the directors at meetings of the Board of Directors and shareholders No. of board meetings held during the reporting period 10 10 4 4 10 4 4 6 6 6 6 No. of board meetings present in person 7 7 2 1 7 2 2 4 4 4 4 No. of board meetings present by means of communication equipment 3 3 2 3 3 2 2 2 2 2 2 No. of board meetings present by proxy 0 0 0 0 0 0 0 0 0 0 0 No. of board meetings absent from 0 0 0 0 0 0 0 0 0 0 0 Whether or not having been absent from two consecutive board meetings No No No No No No No No No No No No. of shareholders’ meeting attended 2 2 1 1 2 1 1 2 2 2 2

内容: WANG Laichun WANG Laisheng LI Bin YE Yiling ZHANG Ying XU Huaibin LIN Yifei LI Wei WANG Tao LIU Zhonghua SONG Yuhong

内容: Explanation about absence from two consecutive meetings of the Board of Directors:

内容: 3. Objections raised by the directors regarding matters of the Company

内容: Whether any director has raised any objection regarding matters of the Company? □ Yes √ No No director has raised any objection regarding matters of the Company during the reporting period.

内容: 4. Other information regarding the performance of duties by the directors

内容: Whether the suggestions put forward by the directors have been adopted by the Company? √ Yes □ No Explanation about the adoption or non-adoption by the Company of the suggestions put forward by the directors: During the reporting period, all of our directors have performed their duties diligently in strict accordance with the Company Law, the Securities Law, the Code of Corporate Governance for Listed Companies, the AOA, the Rules of Procedure of the Board of Directors and other relevant provisions and requirements, actively attended meetings of the Board of Directors and shareholders; taken the initiative to ask for information about our operation, management, financial position and material events, had deep discussions about all resolutions submitted to the Board of Directors for consideration, expressed opinions on our material corporate governance issues and business decisions, and through sufficient communication and discussions, reached a consensus, to ensure the scientificness, timeliness and effectiveness of decisions, and supervised and urged the implementation of resolutions of the Board of Directors; actively implemented resolutions of the Board of Directors and the shareholders, and safeguarded the legitimate rights and interests of the Company and all shareholders. We will continue to improve our corporate governance structure, further enhance the scientific decision-making level of the Board of Directors and its committees, give full play to the role of independent directors in our corporate governance, and promote our operational compliance and continued healthy development.

内容: VII. Activities of the committees of the Board of Directors during the reporting period

内容: Committee Members No. of meetings held Date of meeting Topics Considered the Proposal for Re-appointment of the Accounting Firm April 2021 9, Important opinions and suggestions Pursuant to the Company Law, the Code of Corporate Governance for Listed Companies promulgated by the CSRC and the Work Rules of the Audit Committee of the Board of Directors, the Audit Committee performed its duties diligently, expressed opinions taking into account our actual situation, and through sufficient communication and discussions, unanimously approved the Proposal. Pursuant to the Company Law, the Code of Corporate Governance for Listed Companies promulgated by the CSRC and the Work Rules of the Audit Committee of the Board of Directors, the Audit Committee performed its duties diligently, supervised our internal audit policies and implementation thereof, reviewed our financial information, guided the work of the Internal Audit Department, supervised and urged the audit conducted by the accounting firm, and through sufficient communication and discussions, unanimously approved all reports considered. Pursuant to the Company Law, the Code of Corporate Governance for Listed Companies promulgated by the CSRC and the Work Rules of the Audit Committee of the Board of Directors, the Audit Committee performed its duties diligently, expressed opinions taking into account our actual situation, and through sufficient communication and 63 Performance of other duties Objections (if any)

内容: Considered the 2020 Financial Report, the Special Report on the Deposit and Use of Offering Proceeds in 2020, the 2020 Work Report of the Internal Audit Department and the Work Report of the Internal Audit Department for the First Quarter of 2021.

内容: Considered the Work Report of the Internal Audit Department for the First Half of 2021. Audit Committee LIU Zhonghua, ZHANG Ying and SONG Yuhong 2 July 2021 22,

内容: discussions, unanimously approved the Report. Pursuant to the Company Law, the Code of Corporate Governance for Listed Companies promulgated by the CSRC and the Work Rules of the Audit Committee of the Board of Directors, the Audit Committee performed its duties diligently, expressed opinions taking into account our actual situation, and through sufficient communication and discussions, unanimously approved the Report. Pursuant to the relevant provisions of the Company Law, the Code of Corporate Governance for Listed Companies promulgated by the CSRC and the Work Rules of the Compensation and Performance Appraisal Committee of the Board of Directors, the Compensation and Performance Appraisal Committee reviewed the compensation of the directors, supervisors and executives, and determined that we are developing and improving fair and effective performance appraisal criteria and incentive and restraint mechanisms for executives, and the compensation of our executives consists of basic monthly salaries and year-end performance-based pay. On the basis of such understanding and proposal, we properly adjusted the basic monthly salaries of certain directors and executives, in order to reflect and produce the effect of incentive and fairness. The compensation of our directors, supervisors and executives in the reporting period is true, and conforms to our performance metrics. 64

内容: Considered the Work Report of the Internal Audit Department for the Third Quarter of 2021. October 14, 2021

内容: Reviewed the implementation of the performance appraisal, compensation and incentive plan for the directors and executives in the preceding year, put forward a reward proposal for the directors and executives taking into account our actual business situation, and studied the compensation and performance appraisal plan for the next year. Compensation and Performance Appraisal Committee WANG Laichun, ZHANG Ying and XU Huabin

内容: Considered the Performance Appraisal Measures for the 2021 Stock Option Incentive Plan. Pursuant to the Company Law, the Code of Corporate Governance for Listed Companies promulgated by the CSRC and the Work Rules of the Compensation and Performance Appraisal Committee of the Board of Directors, the Compensation and Performance Appraisal Committee reviewed the Performance Appraisal Measures for the 2021 Stock Option Incentive Plan, determined that the Measures reflected and produced the effect of incentive and fairness, and unanimously approved the Proposal. Pursuant to the Company Law, the Code of Corporate Governance for Listed Companies promulgated by the CSRC and the Work Rules of the Nomination Committee of the Board of Directors, the Nomination Committee performed its duties diligently, examined the qualifications of the relevant personnel, expressed opinions and put forward suggestions, and through sufficient communication and discussions, unanimously approved all Proposals. Pursuant to the Company Law, the Code of Corporate Governance for Listed Companies promulgated by the CSRC, and the Work Rules of the Strategy Committee of the Board of Directors, the Strategy Committee thoroughly analyzed and studied the industry in which we operate, and put forward reasonable suggestions on the planning for and implementation of the development strategies in respect of business, R&D and new products, which produced significant effect. 65

内容: Compensation and Performance Appraisal Committee

内容: ZHANG Ying, LIU Zhonghua and SONG Yuhong

内容: Considered the Proposal for Examination of Qualifications of Candidates for Non-independent Directors of the 5th Board of Directors and the Proposal for Examination of Qualifications of Candidates for Independent Directors of the 5th Board of Directors.

内容: Pursuant to the Company Law, the Code of Corporate Governance for Listed Companies promulgated by the CSRC, the Work Rules of the Strategy Committee of the Board of Directors and other relevant provisions, the Strategy Committee reviewed the material events occurred in 2020, reported our 2021 strategic development plan, and studied the significant strategic issues in connection with our development.

内容: VIII. Activities of the Board of Supervisors

内容: Whether the Board of Supervisors has identified any risk involving the Company in its supervisory activities during the reporting period? □ Yes √ No The Board of Supervisors has not raised any objection to the supervisory matters during the reporting period.

内容: 1. Number, structure of profession and education of employees

内容: Number of current employees of the parent at the end of the reporting period Total number of current employees of the major subsidiaries at the end of the reporting period Total number of current employees at the end of the reporting period Total number of salaried employees during the reporting period Total number of retired employees to or for whom the parent and the major subsidiaries are obligated to make payments Structure of profession Type of profession Production staff Sales staff Technical staff Financial staff Administrative staff Total Education Degree of education Undergraduate College Secondary specialized school, senior middle school and below Total 520 227,632 228,152 228,152 0 Number of employees 192,873 2,574 16,103 354 16,248 228,152 Number of employees 13,982 21,432 192,738 228,152

内容: We have established the administrative measures for the salaries, performance-based pay, year-end bonus and other compensation of employees of the Group, provided employees with competitive and guaranteed compensation in a scientific an reasonable manner, developed sound compensation management policies, paid contributions to the social insurance packages and housing provident fund for and salaries to the employees on time in strict accordance with the applicable laws and regulations, and resolutely rejected any bonded labor. In order to help employees better understand the match between their job responsibilities and capabilities, we have developed a multi-dimensional performance appraisal system including self-assessment and supervisor’s assessment, in order to objectively and comprehensively reflect employees’ annual performance. We conduct annual employee performance communication activities, to ensure that each employee receives sufficient support and resources for his/her career development in Luxshare-ICT, and to enhance and optimize the work experience of each employee. The compensation packages provided by us to employees consist of year-end bonuses, project bonuses, share incentives for key officers, and bonuses for outstanding employees, among others. During the reporting period, we further optimized performance appraisal, fully appraised the performance of teams and individuals, and effectively improved the execution ability and awareness of responsibility of employees, which will help us retain and attract outstanding talents, and human resources required for our development.

内容: We attach great importance to the career development plans of employees, concentrate our efforts on the training of personnel, and have established a sound personnel training system, to attract and motivate more excellent talents and promote common growth of employees and the Group. We have built an integrated online and offline learning platform, providing multi-dimensional specialty training for different types of employees and new projects. The platform provides all employees with hierarchical targeted training of 66

内容: different categories that target different groups of people and satisfy different needs. For example, with respect to senior, middle and grassroots managers and key reserve talents with great potentialities, we conduct the “Star Cultivation Series” training, in order to build an efficient and dynamic team; and with respect to the personnel in manufacturing, R&D technology, marketing, supply chain and other critical fields, we conduct the “Juneng Series” training, in order to continuously improve the professional capabilities of employees on different posts. In addition, we carry out school-enterprise cooperation projects, and encourage the employees to obtain certification of professional qualifications from the Company and society, in order to enhance our production level and social recognition of us as a whole. We have also built the “Jushi Series”, “Luxshare Classroom”, “Senior Management Forum” and other learning and communication platforms, in order to provide excellent Luxshare employees with stages to demonstrate themselves, create a sound learning environment and promote the integration and communications among all employees. In addition, with a view to promoting the implementation of important strategies and changes, we have conducted the “Jubian Series” training according to business needs. In order to regulate the employee training, we have established and periodically updated the Administrative Measures for Education and training, the Operating Procedures for Education and training, and Administrative Measures for Internal Lecturers, which define the training system covering all stages from induction, orientation, on-the-job, transfer to promotion, and each factory has established the Operating Procedures for Education and training and relevant administrative measures by reference to the Group’s management standards, and annual training plans for the factory and its departments according to its annual development plan, to effectively enhance the core competencies of employees and the Company, improve the employees’ professional capabilities and promote the sustainable growth of the Company.

内容: X. Profit distribution and transfer of capital reserve to the share capital

内容: Adoption, implementation or adjustment of the profit distribution policy, in particular, cash dividend policy, during the reporting period √ Applicable □ N/A Pursuant to the resolutions adopted by the 31st meeting of the 4th Board of Directors and the 2020 annual shareholders’ meeting, we proposed to distribute to all shareholders a cash dividend of RMB1.10 (inclusive of tax) per 10 shares on the basis of the total share capital of 7,035,426,367 shares, or RMB773,896,900.37 (inclusive of tax) in total. In case of any change in our total share capital due to any share repurchase, exercise of share incentives, material asset restructuring, cancellation of repurchased share or otherwise prior to the record date for the relevant equity distribution, we would adjust the distribution payable per share accordingly on the principle that the total amount distributable should remain the same. During the period from the disclosure of such profit distribution proposal to the implementation thereof, our total share capital increased by 2,461 shares, from 7,035,426,367 shares at the time of disclosure of the proposal to 7?035?428?828 shares as a result of conversion of the convertible bonds to shares. On the principle that the total amount distributable should remain the same, our profit distribution proposal for 2020 was adjusted as follows: to distribute to all shareholders a cash dividend of RMB1.099999 (inclusive of tax) per 10 shares on the basis of the total share capital of 7?035?428?828 shares, or RMB773,891,489.58 (inclusive of tax) in total. Special explanation about the cash dividend policy Whether comply with the provisions of the articles of association or requirements of resolutions of the Yes shareholders’ meeting of the Company? Whether the standard and ratio of cash dividend distribution are clear and definite? Yes Whether the relevant decision-making process and mechanism are sound? Yes Whether the independent directors have performed their duties and exercised their functions? Yes Whether the minority shareholders have sufficient opportunities to express their opinions and requests and Yes their legitimate rights and interests are fully protected? Whether the conditions and procedures in respect of any adjustment or amendment of the cash dividend policy Yes comply with the applicable regulations and are transparent? Whether the Company has made a profit in the reporting period and the parent has profits available for distribution to the shareholders, but the Company does not propose to distribute cash dividends? □ Applicable √ N/A Particulars of profit distribution and transfer of capital reserve to the share capital for the reporting period: √ Applicable □ N/A 67

内容: Number of bonus shares per 10 shares 0 Amount of cash dividends per 10 shares (inclusive of tax) 1.10 Share capital based on which the distribution proposal was made 7,084,301,477 Amount of cash dividends (inclusive of tax) 779,273,162.47 Amount of cash dividends distributed in other ways (such as share repurchase) (RMB) 0.00 Total amount of cash dividends (RMB) 779,273,162.47 Distributable profit (RMB) 6,526,651,487.02 Proportion of total cash dividends to the distributable profit 100% Particulars of cash dividends distributed for the reporting period Others Particulars of the proposal of profit distribution or for transfer of capital reserve to share capital Our 2021 Profit Distribution Proposal is as follows: to distribute to all shareholders a cash dividend of RMB1.10 (inclusive of tax) per 10 shares on the basis of the total share capital of 7,084,301,477 shares, or RMB779,273,162.47 (inclusive of tax) in total, and to carry forward the retained profits for distribution in subsequent years. In case of any change in our total share capital due to any share repurchase, exercise of share incentives, material asset restructuring, cancellation of repurchased share or otherwise prior to the record date for the relevant equity distribution, we will adjust the distribution payable per share accordingly on the principle that the total amount distributable should remain the same. The 2021 Profit Distribution Proposal is subject to approval by the shareholders’ meeting.

内容: XI. Implementation of share incentive plans, employee stock ownership plans and other employee incentives granted by the Company

内容: (1) 2018 stock option incentive plan On December 2, 2020, the 27th meeting of the 4th Board of Directors and the 27th meeting of the 4th Board of Supervisors considered and approved the Proposal Regarding Satisfaction of the Vesting Conditions for the Second Vesting Period of the 2018 Stock Option Incentive Plan, pursuant to which, the grantees who have satisfied the vesting conditions may exercise the stock options vested in the second vesting period in their sole discretion from December 22, 2020 to September 24, 2021. Refer to the Cautionary Announcement on Adoption of the Discretionary Exercise Method for the Second Vesting Period of the 2018 Stock Option Incentive Plan (Announcement No.2020-108) for details. During the reporting period, the grantees exercised their options to purchase 13,854,690 shares in total within the second vesting period of the 2018 Stock Option Incentive Plan. On July 2, 2021, due to the equity distribution for 2020, the exercise price for the stock options granted but not yet exercised under the 2018 stock option incentive plan was adjusted from RMB10.28 per share to RMB10.17 per share. Refer to the Announcement on Adjustment of the Exercise Prices under the 2018 and 2019 Stock Option Incentive Plans and Cancellation of Certain Stock Options under the 2019 Stock Option Incentive Plan (Announcement No.2021-064) for details. On September 30, 2021, due to resignation of certain grantees for personal reasons, the number of grantees was adjusted from 1?719 to 1?695, and the number of stock options exercisable under the 2018 Stock Option Incentive Plan was adjusted by cancelling 920,766 stock options granted but not yet exercised, so the number of stock options granted but not yet exercised was adjusted from 93,843,466 to 92,964,441. Refer to the Announcement on Adjustment of the Number of Stock Options Exercisable and Cancellation of Certain Stock Options under the 2018 Stock Option Incentive Plan (Announcement No.2021-082) for details. On December 3, 2021, the 6th meeting of the 5th Board of Directors and the 6th meeting of the 5th Board of Supervisors considered and approved the Proposal for Adjustment of the Number of Stock Options Exercisable and Cancellation of Certain Stock Options under the 2018 Stock Option Incentive Plan and the Proposal Regarding the Satisfaction of the Vesting Conditions for the Third Vesting Period of the 2018 Stock Option Incentive Plan, pursuant to which, due to resignation, failure to meet the performance appraisal criteria or other reasons on the part of the grantees, the number of grantees was adjusted from 1?695 to 1?650, and the number of stock options exercisable under the 2018 Stock Option Incentive Plan was adjusted by cancelling 1,851,452 stock options granted but not yet exercised, so the number of stock options granted but not yet exercised was adjusted from 92,964,441 to 91,112,989; the grantees who have satisfied the vesting conditions may exercise the stock options vested in the third vesting period in their sole discretion from December 24, 2021 to September 23, 2022. Refer to the Announcement on Cancellation of Certain Stock Options under and Revision of the Number of Stock Options Exercisable in the Third Vesting Period of the 2018 Stock Option Incentive Plan (Announcement No.2021-104) and the Cautionary Announcement on Adoption of the Discretionary Exercise Method for the Third Vesting Period of the 2018 Stock Option Incentive Plan as Revised (Announcement No.2021-105) for details.

内容: During the reporting period, the grantees exercised their options to purchase 19,597,470 shares in total within the third vesting period of the 2018 Stock Option Incentive Plan. (2) 2019 stock option incentive plan On June 22, 2020, the 19th meeting of the 4th Board of Directors and the 19th meeting of the 4th Board of Supervisors considered and approved the Proposal Regarding Satisfaction of the Vesting Conditions for the First Vesting Period of the Stock Options Granted under the 2019 Stock Option Incentive Plan, pursuant to which, the grantees who have satisfied the vesting conditions may exercise the stock options vested in the first vesting period in their sole discretion from July 7, 2020 to April 21, 2021. Refer to the Cautionary Announcement on Adoption of the Discretionary Exercise Method for the First Vesting Period of the Stock Options Granted under the 2019 Stock Option Incentive Plan (Announcement No.2020-049) for details. During the reporting period, the grantees exercised their options to purchase 1,291,186 shares in total within the first vesting period of the stock options granted under the 2019 Stock Option Incentive Plan. On January 22, 2021, due to resignation, failure to meet the performance appraisal criteria or other reasons on the part of the grantees, the number of grantees was adjusted from 258 to 250, and the number of stock options available under the 2019 Stock Option Incentive Plan was adjusted by cancelling 456,286 stock options granted but not yet exercised, so the number of stock options granted but not yet exercised was adjusted from 21,113,740 to 20,657,454. Refer to the Announcement on Adjustment of the List of Grantees and Number of Stock Options Available and Cancellation of Certain Stock Options under the 2019 Stock Option Incentive Plan (Announcement No.2021-009) for details. On January 22, 2021, the 29th meeting of the 4th Board of Directors and the 29th meeting of the 4th Board of Supervisors considered and approved the Proposal Regarding Satisfaction of the Vesting Conditions for the First Vesting Period of the Stock Options Available under the 2019 Stock Option Incentive Plan, pursuant to which, the grantees who have satisfied the vesting conditions may exercise the stock options vested in the first vesting period in their sole discretion from February 8, 2021 to November 26, 2021. Refer to the Cautionary Announcement on Adoption of the Discretionary Exercise Method for the First Vesting Period of the Stock Options Available under the 2019 Stock Option Incentive Plan (Announcement No.2021-021) for details. During the reporting period, the grantees exercised their options to purchase 4,109,496 shares in total within the first vesting period of the stock options available under the 2019 Stock Option Incentive Plan. On July 2, 2021, due to the equity distribution for 2020, and resignation, failure to meet the performance appraisal criteria or other reasons on the part of the grantees, we adjusted the 2019 stock option incentive plan as follows: the number of grantees was adjusted from 340 to 332; 744,909 stock options granted but not yet exercised were cancelled, so the number of stock options granted but not yet exercised was adjusted from 65,977,698 to 65,232,789; and the exercise price of the stock options granted or available was changed from RMB13.70 per share to RMB13.59 per share. Refer to the Announcement on Adjustment of the Exercise Prices under the 2018 and 2019 Stock Option Incentive Plans and Cancellation of Certain Stock Options under the 2019 Stock Option Incentive Plan (Announcement No.2021-064) for details. On July 2, 2021, the 2nd meeting of the 5th Board of Directors and the 2nd meeting of the 5th Board of Supervisors considered and approved the Proposal Regarding Satisfaction of the Vesting Conditions for the Second Vesting Period of the Stock Options Granted under the 2019 Stock Option Incentive Plan, pursuant to which, the grantees who have satisfied the vesting conditions may exercise the stock options vested in the second vesting period in their sole discretion from July 15, 2021 to April 21, 2022. Refer to the Cautionary Announcement on Adoption of the Discretionary Exercise Method for the Second Vesting Period of the Stock Options Granted under the 2019 Stock Option Incentive Plan (Announcement No.2021-069) for details. During the reporting period, the grantees exercised their options to purchase 14,627,322 shares in total within the second vesting period of the stock options granted under the 2019 Stock Option Incentive Plan. (3) 2021 stock option incentive plan With the approval of the 4th meeting of the 5th Board of Directors, the 4th meeting of the 5th Board of Supervisors and the 1st extraordinary shareholders’ meeting in 2021, we introduced the 2021 stock option incentive plan. The first grant under the plan was completed on December 3, 2021 and registered on December 9, 2021. 52,092,000 stock options (short name: Luxshare JLC4; code: 037192) in total, representing 0.74% of our total share capital at the time of grant, were granted to 1,072 grantees at the exercise price of RMB35.87 per share. (4) Exercise of options during the reporting period During the reporting period, the grantees exercised their options to purchase 53,480,164 shares in total under the relevant stock option incentive plans.

内容: Share incentives granted to directors and executives √ Applicable □N/A Unit: shares No. of additional stock options granted during the reporting period 0 0 No. of shares exercisable during the reporting period 131,817 168,992 No. of shares exercised during the reporting period 131,817 168,992 Exercise price of shares exercised during the reporting period (RMB per share) 10.17 13.59 Market price at the end of the reporting period (RMB per share) 49.20 49.20 No. of shares vested during the reporting period No. of additional restricted shares granted during the reporting period Grant price of restricted shares (RMB per share)

内容: Beginning balance of restricted shares held

内容: Ending balance of restricted shares held

内容: CFO CFO Deputy General Manager & Board Secretary Director & Deputy General Manager Director & Deputy General Manager Director & Deputy General Manager Director & Deputy General Manager Director &

内容: Deputy General Manager YE Yiling Director & Deputy General Manager -

内容: Upon re-appointment of the Board of Directors in April 2021, LI Bin and YE Yiling resigned as directors, but continue to hold other posts in the Company.

内容: Performance appraisal and incentives in respect of executives All of our executives were appointed by the Board of Directors fairly and transparently, in compliance with the applicable laws and regulations. Our executives report to the Board of Directors and are responsible for achieving the operating targets set by the Board of Directors. We have established effective incentive and constraint mechanisms, in order to stimulate the executives to perform their duties diligently, and improve our level of operation and management and operating results. The performance of our executives is directly linked to their income, and assessed by comparing the goals set by us with their actual accomplishment of tasks. The Compensation and Performance Appraisal Committee of the Board of Directors is responsible for year-end assessment of the achievement of goals, working ability and performance of duties in respect of our directors, supervisors and executives, and developing the compensation and performance appraisal proposals and submitting the same to the Board of Directors for approval. During the reporting period, our compensation and performance appraisal policies for the executives have been implemented effectively.

内容: 2. Implementation of employee stock ownership plan

内容: XII. Establishment and implementation of internal controls during the reporting period

内容: 1. Establishment and implementation of internal controls

内容: We have established a relatively sound internal control system that has run effectively in strict accordance with the Company Law, the Securities Law, the Basic Internal Control Standards for Enterprises, the Application Guide for Internal Controls of Enterprises and other applicable laws, regulations and normative documents, taking into account the characteristics of our industry and our actual business situation. From the perspective of corporate management, technology R&D and business processes, we have established effective internal controls, and improved our corporate governance level and efficiency of decision-making, which guarantees the legal and regulatory compliance of our operation and management, security of our assets and the truthfulness and completeness of our financial reports and other information, and effectively promote the steady implementation of our strategies. Our internal control system has a reasonable structure, can satisfy the requirements of our management and development, and runs effectively. Our internal controls over financial reporting, non-financial reporting and other material matters are effective, achieve the objectives and protect the interests of the Company and all shareholders.

内容: 2. Material weakness in internal control identified during the reporting period

内容: XIII. Management and control of subsidiaries during the reporting period

内容: Company Rikai Precision Technology (Yancheng) Co., Ltd. Integration plan Control the subsidiary through its board of directors, and manage the assets, personnel, finance, organization, operation and other matters of the subsidiary in an all-round way through appointment of officers to the subsidiary Progress of integration Completed Problems encountered during integration No Solutions adopted N/A Progress of solution N/A Subsequent solution N/A

内容: XIV. Self-assessment report on internal controls or auditor’s report on internal controls

内容: 1. Self-assessment report on internal controls

内容: Date of disclose of the self-assessment report on internal controls in its entirety Disclosure reference Ratio of total assets of the entities covered by the assessment to total assets recorded in the consolidated financial statements of the Company Ratio of total operating revenue of the entities covered by the April 28, 2022 Self-assessment Report on Internal Controls 2021 of Luxshare Precision Industry Co., Ltd. published on www.cninfo.com.cn 75.60%

内容: assessment to total operating revenue recorded in the consolidated financial statements of the Company Criteria for determination of deficiencies Type Financial reporting Non-financial reporting Qualitative criteria 1. The material weaknesses in internal control over 1. The material weaknesses in internal control over financial reporting include: (A) fraud on the part of non-financial reporting include: (A) any serious directors, supervisors and executives; (B) failure to violation of the significant national laws and correct any material weakness in internal control regulations; (B) great outflow of management and within a reasonable time after the same was identified technical personnel on key posts; (C) absence of or and reported to the management; (C) ineffective ineffective control system for important business control environment; (D) any material misstatement relating to the production and operation of the in the financial report for the current period that is Company; (D) ineffective internal control over identified by external auditor but fails to be identified information disclosure, resulting in any public through internal control; (E) any serious violation of condemnation of the Company by any regulatory the laws and regulations; (F) the Company running at authority; and (E) failure to correct any problem, in a loss for consecutive years due to any reason other particular, any material weakness or significant than policy-related loss, which might threaten the deficiency, identified in any assessment of internal Company’s ability to continue as a going concern; controls. 2. The significant deficiencies in internal and (G) ineffective supervision by the management control over non-financial reporting include: (A) and related functional departments over the internal defects in important business policies or system, or control. 2. The significant deficiencies in internal unsound internal control system; and (B) failure to control over financial reporting include: (A) failure to review any information disclosed externally and select and apply accounting policies pursuant to the untruthfulness of any information disclosed. 3. generally accepted accounting principles; (B) failure General deficiencies in internal control over financial to establish anti-fraud procedures and controls; (C) reporting include deficiencies in control other than absence of or ineffective control system for important material weakness and significant deficiency. business; (D) lack of internal controls in and disorderly management of subsidiaries; and (E) great outflow of or frequent changes in senior officers (especially those in charge of internal control, financial and human resources departments), or great outflow of personnel on the relevant posts. 3. General deficiencies in internal control over financial reporting include deficiencies in control other than material weakness and significant deficiency. Quantitative criteria 1. Material weakness: (1) amount of misstated 1. Material weakness: resulting in a direct loss of operating revenue ≥ 0.5% of total operating revenue; more than RMB12 million and having a material (2) amount of misstated profit ≥ 0.5% of total profit; adverse effect on the Company. 2. Significant (3) amount of misstated assets ≥ 0.5% of total assets; deficiency: resulting in a direct loss of more than (4) amount of misstated owners’ equity ≥ 0.5% of RMB3 million and not more than RMB12 million, total owners’ equity. 2. Significant deficiency: (1) and any penalty imposed by any competent 0.2% of total operating revenue ≤ amount of government authority of the country, but not having misstated operating revenue < 0.5% of total operating an adverse effect on the Company. 3. General revenue; (2) 0.2% of total profit ≤ amount of deficiency: resulting in a direct loss of not more than misstated profit < 0.5% of total profit; (3) 0.2% of RMB3 million, and any penalty imposed by any total assets ≤ amount of misstated assets < 0.5% of competent government authority at the provincial total assets; (4) 0.2% of total owners’ equity ≤ level or below, but not having an adverse effect on amount of misstated owners’ equity < 0.5% of total the Company. owners’ equity. 3. General deficiency: (1) amount of misstated operating revenue < 0.2% of total operating revenue; (2) amount of misstated profit < 0.2% of total profit; (3) amount of misstated assets < 0.2% of total assets; (4) amount of misstated owners’ equity < 0.2% of total owners’ equity. Number of material weaknesses in financial reporting 0 Number of material weaknesses in non-financial reporting 0 Number of significant deficiencies in financial reporting 0

内容: Number of significant deficiencies in non-financial reporting 0

内容: 2. Auditor’s report on internal controls

内容: 3. Internal control certification report

内容: Opinion issued in the internal control certification report Pursuant to the Basic Internal Control Standards for Enterprises promulgated by the Ministry of Finance and other relevant provisions, the Company has maintained effective internal controls in all material respects as of December 31, 2021. Disclosure of the internal control certification report Disclosed Date of disclosure of the internal control certification report in its April 28, 2022 entirety Disclosure reference Internal Control Certification Report 2021 of Luxshare Precision Industry Co., Ltd. published on www.cninfo.com.cn Type of opinion issued in the internal control certification report Standard unqualified opinion Whether there’s any material weakness in non-financial No reporting Whether the accounting firm issued a modified internal control certification report? □ Yes √ No Whether the internal control certification report issued by the accounting firm conforms to the opinion issued by the self-assessment report of the Board of Directors? √Yes □ No

内容: XV. Rectification of non-compliance identified in the special self-examination of corporate governance of the listed company

内容: Pursuant to the requirements of the Announcement on Launching the Special Campaign for Corporate Governance of the Listed Companies issued by the CSRC, we carried out self-examination of our corporate governance in strict accordance with the Company Law, the Securities Law, the AOA, the Rules of Procedure of the Board of Directors, the Rules of Procedure of the Board of Supervisors and other applicable laws, regulations and normative documents, in an orderly manner on the principle of seeking truth from facts, and completed the Questionnaire for Self-Examination of Corporate Governance of the Listed Company, which includes 119 questions covering seven areas. Our self-examination showed that we operated in compliance with the applicable regulations and was governed well during the reporting period, and did not identify any material non-compliance in our corporate governance. We will continue to improve our level of corporate governance and further promote our high-quality development.

内容: Section V Environment and Social Responsibilities

内容: Whether the Company or any of its subsidiaries is identified as a major polluter by the environmental protection authority √ Yes □ No Name of main Name of the pollutants Company or and its subsidiaries characteris tic pollutants Number Distribution Emission Pollutant discharge Total of Total Excessive of discharge concentratio standards approved discharge emissions emissions outlets n implemented emissions outlets

内容: Rikai Precision Technology (Yancheng) Co., Ltd.

内容: Taken over by the wastewater treatment plant after the Ammonia treatment by the 1 nitrogen wastewater treatment station meets the standards Taken over by the wastewater treatment plant after the Total phosphoru treatment by the 1 wastewater s treatment station meets the standards Taken over by the wastewater treatment plant after the treatment by the 1 wastewater treatment station meets the standards

内容: Taken over by the wastewater treatment plant after the Anionic treatment by the 1 surfactant wastewater treatment station meets the standards Taken over by the wastewater treatment plant after the treatment by the 1 wastewater treatment station meets the standards

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Taken over by the wastewater treatment plant Chemical after the oxygen treatment by the 1 wastewater demand treatment station meets the standards Taken over by the wastewater treatment plant after the treatment by the 1 wastewater treatment station meets the standards

内容: Taken over by the wastewater treatment plant after the Suspended treatment by the 1 solids wastewater treatment station meets the standards Taken over by the wastewater treatment plant after the Petroleum treatment by the 1 wastewater treatment station meets the standards Environmental protection (secondary activated carbon 51 and oil mist washing tower) equipment Environmental protection (oil mist washing tower, low nitrogen combustion, alkali spray tower) equipment

内容: B4、 B6、 B5、 C4、 C6、 C5、 3.15 C7、 C3、 B7、 B3

内容: B4、 B6、 B5、 C4、 C6、 C5、 0.76 C7、 C3、 B7、 B3

内容: Rikai Precision Technology (Yancheng) Co., Ltd. Rikai Precision Technology (Yancheng)

内容: Environmental protection (wet dust removal, Particulate low nitrogen 51 matter combustion, direct discharge) equipment Environmental protection 51 (secondary activated carbon and oil mist

内容: B4、 B6、 B5、 C4、 C6、 C5、 5.53 C7、 C3、 B7、 B3 B4、 B6、 B5、 C4、 C6、 C5、 15.23 C7、 C3、 B7、 B3

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Co., Ltd. washing tower) equipment Level 3 provided in the Integrated Standards of 50.562 Wastewater Discharge (GB8979-1996) Restrictions on Indirect Discharge of Nitrogen and Phosphorus 4.014 Pollutants from Wastewater of Industrial Enterprises Discharge Standards of Electroplating Pollutants (GB21900-2008) Discharge Standards of Electroplating Pollutants (GB21900-2008)

内容: Rishan Computer Chemical Accessories oxygen Pipe discharge (Jiashan) Co., demand Ltd.

内容: Rishan Computer Ammonia Accessories Pipe discharge nitrogen (Jiashan) Co., Ltd. Rishan Computer Total Accessories nickel (Jiashan) Co., Ltd.

内容: Rishan Computer Total Accessories Pipe discharge chromium (Jiashan) Co., Ltd. Rishan Computer Accessories VOC (Jiashan) Co., Ltd.

内容: Collect in a centralized manner and then 26 emit after pretreatment

内容: Integrated Emission Standards 9.33 of Air Pollutants (GB16297-1996) Integrated Emission Standards 1.876 of Air Pollutants (GB16297-1996) Discharge Standards of Electroplating Pollutants (GB21900-2008)

内容: Rishan Collect in a Computer centralized Particulate Accessories manner and then 12 matter (Jiashan) Co., emit after Ltd. pretreatment Rishan Computer Nitrogen Accessories oxide (Jiashan) Co., Ltd. Riming Computer Accessories (Shanghai) Co., Ltd. Collect in a centralized manner and then 8 emit after pretreatment

内容: Level 3 provided in the Table 2 of the Integrated Standards of / Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 4.771 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 4.522 Wastewater Discharge (DB31 199-2018)

内容: Riming Computer Accessories (Shanghai) Co., Ltd.

内容: Wastewate r Pipe discharge (suspende d solids)

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Level 3 provided in the Table 2 of the Integrated Standards of 11.425 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 0.195 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 0.785 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 0.088 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 0.061 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 1.938 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 3.609 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of / Wastewater Discharge (DB31 199-2018) Integrated Emission Standards 1.3464 of Air Pollutants (DB31_933-2015) Integrated 0.554 Emission Standards

内容: Wastewate r (chemical Pipe discharge oxygen demand)

内容: Wastewate r Pipe discharge (ammonia nitrogen)

内容: Wastewate r (anionic Pipe discharge surfactant)

内容: Wastewate r (total Pipe discharge phosphoru s)

内容: Wastewate r (total Pipe discharge nitrogen)

内容: Wastewate r (five-day Pipe discharge BOD)

内容: Riming Computer Accessories (Shanghai) Co., Ltd. Riming Computer Accessories (Shanghai) Co., Ltd. Riming Computer

内容: Treated exhaust gas meets the standards and is 63 emitted at high altitude Treated exhaust 7 gas meets the

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Accessories (Shanghai) Co., Ltd. Riming Computer Accessories (Shanghai) Co., Ltd. Riming Computer Accessories (Shanghai) Co., Ltd. Sheng Rui Electronic Technology (Shanghai) Co., Ltd. (particulat standards and is e matter) emitted at high altitude Treated exhaust gas meets the Exhaust standards and is 1 gas (odor) emitted at high altitude Exhaust gas (non-meth ane hydrocarb on) Treated exhaust gas meets the standards and is 3 emitted at high altitude of Air Pollutants (DB31_933-2015)

内容: Emission Standards for Odor Pollutants 0 (DB311025-2016)

内容: Integrated Emission Standards 0 of Air Pollutants (DB31_933-2015)

内容: Wastewate r (total Pipe discharge nickel)

内容: South of the sewage ND station of the plant

内容: Level 3 provided in the Table 2 of the Integrated Standards of 0.000143 0.0054 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of / Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 0.164 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 0.84 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 0.192 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 47.867 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 2.283 Wastewater Discharge (DB31 199-2018)

内容: Sheng Rui Electronic Technology (Shanghai) Co., Ltd.

内容: South of the sewage 7.5 station of the plant

内容: South of the sewage 0.32 station of the plant

内容: South of the sewage 1.95 station of the plant

内容: South of the sewage 1.43 station of the plant

内容: South of the sewage 134 station of the plant

内容: South of the sewage 1 station of the plant

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Level 3 provided in the Table 2 of the Integrated Standards of 13.087 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 0.632 Wastewater Discharge (DB31 199-2018) Level 3 provided in the Table 2 of the Integrated Standards of 0.043 Wastewater Discharge (DB31 199-2018) Discharge Standards of Electroplating Pollutants (GB21900-2008) Discharge Standards of Electroplating Pollutants (GB21900-2008)

内容: South of the sewage 16 station of the plant

内容: Sheng Rui Electronic Technology (Shanghai) Co., Ltd. Sheng Rui Electronic Technology (Shanghai) Co., Ltd. Sheng Rui Electronic Technology (Shanghai) Co., Ltd. Sheng Rui Electronic Technology (Shanghai) Co., Ltd. Sheng Rui Electronic Technology (Shanghai) Co., Ltd. Sheng Rui Electronic Technology (Shanghai) Co., Ltd. Sheng Rui Electronic Technology (Shanghai) Co., Ltd.

内容: South of the sewage 2.66 station of the plant

内容: Treated exhaust Exhaust gas meets the gas standards and is 17 (Nitrogen emitted at high oxide) altitude Exhaust gas (sulfuric acid mist Treated exhaust gas meets the standards and is 15 emitted at high altitude

内容: Treated exhaust Exhaust gas meets the gas standards and is 6 (particulat emitted at high e matter) altitude Treated exhaust Exhaust gas meets the gas (alkali standards and is 15 emitted at high mist) altitude Treated exhaust gas meets the Exhaust standards and is 1 gas (odor) emitted at high altitude Exhaust gas (non-meth ane hydrocarb on) Treated exhaust gas meets the standards and is 1 emitted at high altitude

内容: Integrated Emission Standards 0.883 of Air Pollutants (DB31_933-2015) Integrated Emission Standards 0 of Air Pollutants (DB31_933-2015) Emission Standards for Odor Pollutants 0 (DB311025-2016) Emission Standards of Pollutants from Synthetic Resin 0.016 Industry (GB31572-2015)

内容: Construction and operation of pollution prevention facilities I. Rikai Precision Technology (Yancheng) Co., Ltd. 1. 7 sets of low nitrogen combustion systems: The denitration facilities operate for 8400 hours per year. 2. 17 sets of dust removal systems: The dust removal facilities operate for 8400 hours per year. 3. 15 sets of organic exhaust gas collection and treatment systems. 4. 13 sets of acid exhaust gas treatment systems. II. Rishan Computer Accessories (Jiashan) Co., Ltd. Wastewater: The plant implements the divergence of clean water and sewage and the divergence of rain and sewage, and separately pretreats the wastewater containing chromium, nickel, phosphorus and nitro and organic wastewater and after they meet the standards, then directly discharges them into the pipe. The pH, CODcr, SS and petroleum at the pipe inlet meet the Level 3 provided in Integrated Standards of Wastewater Discharge (GB8979-1996), and the ammonia nitrogen and total phosphorus are 80

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 lower than the relevant limits provided in the Restrictions on Indirect Discharge of Nitrogen and Phosphorus Pollutants from Wastewater of Industrial Enterprises (DB33/887-2013); the discharge of Class-A pollutants such as total chromium, CR VI and nickel are lower than the limits of indirect discharge to Taihu Lake Basin in the Table 1 of the Discharge Standards of Electroplating Water Pollutants (DB33/2260-2020); CODcr and petroleum at the discharge outlet of phosphorus-containing wastewater treatment facilities meet the Level 3 provided in the Integrated Standards of Wastewater Discharge (GB8978-1996); the total phosphorus is lower than the relevant limits provided in the Restrictions on Indirect Discharge of Nitrogen and Phosphorus Pollutants from Wastewater of Industrial Enterprises (DB33/887-2013); the pH and CODcr at the discharge outlet of nitro-containing wastewater treatment facilities meet the Level 3 provided in Integrated Standards of Wastewater Discharge (GB8978-1996), and ammonia nitrogen is lower than the relevant limits provided in the Restrictions on Indirect Discharge of Nitrogen and Phosphorus Pollutants from Wastewater of Industrial Enterprises (DB33/887-2013); the pH, CODcr, SS and petrolem at the discharge outlet of organic wastewater treatment facilities meet the Level 3 provided in Integrated Standards of Wastewater Discharge (GB8978-1996); in general, the washing wastewater is collected separately, and after pretreament, some is reused while some is discharged. The total reuse rate of production wastewater in two days is monitored at 31.0% and 32.4%, meeting the requirements. The online monitoring facility is installed at the wastewater pipe inlet to monitor pH, CODcr, ammonia nitrogen and other factors; the standardized rain outlets and signboards are set within the plant. The wastewater treatment facilities are built, including one accident emergency pool covering an area of 2,776 m3 and two initial rain collection pools covering a total area of 806 m3. Exhaust gas: The main production equipment are laid out in accordance with the environmental impact assessment: CNC equipment is installed respectively at F1, F2 and F3 workshops; the anode line is arranged in F5 workshop; the volatile oil mist generated by the workshops of CNC equipment (F1, F2 and F3) is treated by the supporting treatment facility (i.e., electrostatic oil removal facility), and then emitted through a 25m-high exhaust funnel after it meets the Level 2 of the Integrated Emission Standards of Air Pollutants (GB16297-1996); the particulate exhaust gas generated by the workshops of sandblast equipment (F1, F2 and F3) is treated by the supporting treatment facility (i.e., spray tower), and then emitted through a 25m-high exhaust funnel after it meets the Level 2 of the Integrated Emission Standards of Air Pollutants (GB16297-1996); the injection molding exhaust gas generated by the workshops of the injection molding equipment (F5 and F9) is treated by the activated carbon adsorption device, and then emitted through a 25m-high exhaust funnel after it meets the special emission limits of air pollutants provided in Table 5 of the Emission Standards of Pollutants from Synthetic Resin Industry (GB31572-2015); the exhaust gas such as sulfuric acid mist and nitric acid mist generated by the workshop of the anode line (F5) is treated by the supporting treatment facility (i.e., alkali liquor spray tower), and then emitted through a 25m-high exhaust funnel after it meets the emission limits provided in Table 5 of the Emission Standards of Electroplating Pollutants (GB21900-2008); the VOC exhaust gas generated by the assembly workshop is treated by the activated carbon adsorption device, and then emitted through a 25m-high exhaust funnel after it meets the Level 2 provided in the Integrated Emission Standards of Air Pollutants (GB16297-1996). The plant is 420 meters away from its nearest sensitive point in the northwest, i.e., Maojia Community, meeting the requirements. Noise: According to the monitoring results, the noise at the east and south boundaries of the plant meets Class 3 of the Standards on Noise Emissions at the Boundaries of Industrial Enterprises (GB12348-2008), and the noise at the west and north boundaries meets Class 4 of the Standards on Noise Emissions at the Boundaries of Industrial Enterprises (GB12348-2008). Solid waste: 1. A classified collection system is established for solid waste, which is classified into hazardous waste and general solid waste. Meanwhile, the domestic waste and industry solid waste shall be divided on connection. The sludge produced by waste water is separately pressed, filtered and collected through being classified into three types such as nickel containing sludge, chromium containing sludge and physical and chemical sludge. 2. The temporary storage place for general solid waste is set up in the production plant. General solid waste such as metal leftovers and injection molding waste is bagged and collected in the temporary storage place according to the requirements. 3. A special temporary storage place for hazardous waste, covering an area of 648 m2, is set up in the production plant to collect and temporarily store hazardous waste according to the relevant requirements. 4. The temporary storage place for used sulfuric acid, phosphoric acid and other raw material packaging barrels is set up according to the requirements of the temporary storage place for hazardous waste. 5. Metal leftovers, sandblast waste and collected dust, among others, are sold to recycling companies for comprehensive utilization. The biochemical sludge produced by wastewater treatment is collected and sent to the urban waste treatment system and domestic waste is uniformly transported and treated by the local environmental sanitation department. 6. Hazardous waste such as waste cutting fluid, grinding waste residue, waste packaging materials (sodium hydroxide, etc.), (sludge containing nickel and chromium, and physical and chemical sludge) is collected and entrusted to qualified units for disposal. III. Riming Computer Accessories (Shanghai) Co., Ltd. 1. Measures for noise pollution prevention: The outdoor equipment, the equipment close to the plant boundaries and the cooling tower are environmentally friendly. Most equipment is installed in the workshop and on the roof of the workshop, a reasonable layout. The basic shock absorption is made when the equipment is installed, the fan is equipped with silencer and the flexible connector is used for the connection of blast pipes. 2. Measures for hazardous waste pollution prevention: The plant is equipped with the special hazardous waste cans and warehouses, implements the “Three Prevention” system and carries out irregular self check and self correction; 3. Measures for exhaust gas pollution prevention: A regular check is carried out for the completeness of the waste gas tower body, liquid tank, spray system, filling materials, gas-liquid separator, etc., and the filling materials are replaced in time; after the air volume of the extraction equipment is adjusted and balanced, the full-automatic control is adopted so that each extraction point falls within a reasonable air volume range. 4. Measures for wastewater pollution prevention: The principle of divergence is implemented. Different kinds of wastewater enter the corresponding sewage pool through different pipes. The pipes are overhead and pasted with signs of flow direction. The completeness of the pipes is checked regularly, and any abnormality, if found, will be handled immediately. All pools and floors of the sewage station are paved and hardened for anti seepage and anti corrosion. IV. Sheng Rui Electronic Technology (Shanghai) Co., Ltd. 1. Measures for noise pollution prevention: The outdoor equipment, the equipment close to the plant boundaries and the cooling 81

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 tower are environmentally friendly. Most equipment is installed in the workshop and on the roof of the workshop, a reasonable layout. The basic shock absorption is made when the equipment is installed, the fan is equipped with silencer and the flexible connector is used for the connection of blast pipes. 2. Measures for hazardous waste pollution prevention: The plant is equipped with the special hazardous waste cans and warehouses, implements the “Three Prevention” system and carries out irregular self check and self correction; 3. Measures for exhaust gas pollution prevention: A regular check is carried out for the completeness of the waste gas tower body, liquid tank, spray system, filling materials, gas-liquid separator, etc., and the filling materials are replaced in time; after the air volume of the extraction equipment is adjusted and balanced, the full-automatic control is adopted so that each extraction point falls within a reasonable air volume range. 4. Measures for wastewater pollution prevention: The principle of divergence is implemented. Different kinds of wastewater enter the corresponding sewage pool through different pipes. The pipes are overhead and pasted with signs of flow direction. The completeness of the pipes is checked regularly, and any abnormality, if found, will be handled immediately. All pools and floors of the sewage station are paved and hardened for anti seepage and anti corrosion. Environmental impact assessment of construction projects and other environmental protection administrative permits I. Rikai Precision Technology (Yancheng) Co., Ltd. Area B: 1. Impact of wastewater discharge on main protection objectives. After this project is completed, the comprehensive wastewater produced by the whole plant will be 942,900t/a (2,694t/d), representing 22.5% of the comprehensive wastewater treatment capacity (i.e., 12,000 t/d); the heavy metal wastewater produced by the whole plant will be 168,700t/a (482t/d), but the wastewater treatment capacity (150t/d) of the heavy metal wastewater treatment center currently in progress cannot meet the requirements of heavy metal wastewater treatment capacity after completion of this project. Therefore, it is feasible to connect the pipes for the heavy metal wastewater of this project only if the heavy mental treatment center’s treatment capacity meets the heavy mental wastewater volume of this project. 2. Impact analysis of air environment. The maximum ground concentration of each pollutant is less than 10% of its corresponding standards, and the predicted maximum concentration value based on calculation plus the maximum value based on monitoring of regional pollutants also meet the standards. Therefore, the air quality of the surrounding environmental sensitive points can meet the requirements notwithstanding under most unfavorable conditions. As can be seen, the pollutants discharged by the project have little impact on the environment and will not change the functions of the surrounding air environment. 3. Impact of noise on the surrounding environment. The Company has implemented the corresponding sound insulation measures, and accordingly the predicted noise value at the boundaries of the whole plant during the day and at night meets Level 3 provided in the Standard on Noise Emissions at the Boundaries of Industrial Enterprises (GB12348-2008). 4. Environmental impact of solid waste. The solid waste produced by this project can realize zero discharge without secondary pollution after being properly treated and disposed. 5. Impact analysis of groundwater environment. According to the prediction results of groundwater, on the abnormal working conditions, namely, if the sewage state has continuous leakage, the maximum contribution value is 45.309mg/L when the concentration of Cr VI at 10m downstream is 1000d, and with reference to the standard (Level 3 of groundwater quality standard is 0.05mg/L), Cr VI of the groundwater (100d and 1000d) at 100m downstream meets the Level 3 standard; the maximum contribution value is 181.237 mg/L when the concentration of Ni at 10m downstream is 1000d, and with reference to the standard (Level 3 of groundwater quality standard is 0.05mg/L), the Ni of the groundwater (100d and 1000d) at 200m downstream meets the Level 3 standard. Area C: 1. Impact on air environment: According to the calculation results of air estimation model, the maximum ratio of each pollutant is less than 10% of the rating standards after completion of this project, and is determined as Level 2. After technology transformation, the unorganized exhaust gas emission in Area C does not exceed the standards outside the plant boundaries. The health protection distance is required to be set by extending 100m outside the C4-C7 production workshops, namely, by extending 33m outside the east boundary of the plant, 12m outside the west boundary of the plant and 80m outside the north boundary of the plant. There are no sensitive protection targets such as residents within the above-mentioned scope. 2. Impact on water environment: After the technology transformation project is completed, the heavy metal wastewater in area C is treated by the heavy metal zero discharge system and then reused in the anodic oxidation process; the wet polishing wastewater is treated by the wet polishing wastewater treatment facility and then reused in the wet polishing process; after the chemical polishing wastewater is treated by the phosphoric acid concentration system, the waste acid is entrusted to a qualified unit for treatment; the wastewater and cooling water produced by pure water preparation are discharged as clean water; the initial rain collected and comprehensive sewage after being treated by the comprehensive sewage station are sent to Yancheng City Tongqi Water Co., Ltd. for in-depth treatment, and the domestic sewage after being treated by septic pool is sent to Yancheng City Tongqi Water Co., Ltd. for in-depth treatment. The project has little impact on the regional surface water environment. 3. Impact on acoustic environment: After technology transformation, the high noise sources in Area C are rationally laid out and effectively governed, which has little impact on the plant boundaries and surrounding residents. 4. Impact of solid waste After technology transformation, the solid waste in Area C are effectively treated and treated, which has little impact on the environment. 5. Impact on groundwater environment: After technology transformation, the zoning prevention and control measures are taken towards potential impact on groundwater and soil, with the aim to effectively preventing the leachate or wastewater seeping into and polluting groundwater. Therefore, this project has little impact on groundwater environment. 6. Impact on risk environment: After the technology transformation, the reasonable risk prevention measures and emergency plans are taken and formulated in Area C to ensure that the risk level will fall within a controllable and bearable scope. To sum up, this project has little impact on regional environment quality and will not change its functions and categories. II. Rishan Computer Accessories (Jiashan) Co., Ltd. Shan Huan Han [2016] No. 91, Bao Gao Biao Bei [2017] No. 010, Bao Gao Biao Bei [2017] No. 013, Shan Huan Han [2018] No. 91 and Deng Ji Baio Bei [2020] No. 088. III. Riming Computer Accessories (Shanghai) Co., Ltd. Jin Huan Xu [2012] No. 34, Jin Huan Xu [2014] No. 479, Jin Huan Xu [2015] No. 195, Jin Huan Xu [2015] No. 323, Jin Huan 82

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Xu [2018] No. 170, Jin Huan Xu [2019] No. 254, and Jin Huan Xu [2020] No. 27. IV. Sheng Rui Electronic Technology (Shanghai) Co., Ltd. Jin Huan Xu [2012] No. 544, Jin Huan Yan [2012] No. 62, Jin Huan Yuan [2014] No. 126, Jin Huan Xu [2018] No. 187, Jin Huan Xu [2020] No. 245, and the Pollution Discharge Permit No.: 91310000575815657F001P. Emergency plan for abrupt environmental pollution accidents I. Rikai Precision Technology (Yancheng) Co., Ltd. Yancheng Luxcase has formulated the Emergency Plan for Abrupt Environmental Pollution Accidents. II. Rishan Computer Accessories (Jiashan) Co., Ltd. In September 2021, Rishan Computer has prepared the Emergency Plan for Abrupt Environmental Pollution Accidents (3rd Edition), and has completed the formalities for expert review and filing with the filing No.: 330421-2021-105-M. III. Riming Computer Accessories (Shanghai) Co., Ltd. Riming Computer has prepared the Emergency Plan within the valid term and suitable to the plant, and has filed with the ecological environment bureau with filing No.: 02-310116-2019-048-L. IV. Sheng Rui Electronic Technology (Shanghai) Co., Ltd. Sheng Rui Electronic has prepared the Emergency Plan within the valid term and suitable to the plant, and has filed with the ecological environment bureau with filing No.: 02-310116-2021-022-M. Environmental self-monitoring program I. Rikai Precision Technology (Yancheng) Co., Ltd. Rikai Yancheng has formulated the Monitoring Program in accordance with the environment impact assessment report. II. Rishan Computer Accessories (Jiashan) Co., Ltd. Rishan Computer has prepared the Self-monitoring program for 2022 in December 2021 to test the organized exhaust gas at the emission outlet once every half a year, the unorganized exhaust gas once a year, indicators of suspended solids and petroleum at the inlet of wastewater once a month, indicators of total chromium, Cr VI and total nickel once a day and noise once a quarter. III. Riming Computer Accessories (Shanghai) Co., Ltd. Riming Computer updates the Environmental Self-monitoring Program in accordance with the requirements of the pollutant discharge license and environment assessment, and entrusts a qualified third-party monitoring agency with sampling, testing and issuing a compliance report. IV. Sheng Rui Electronic Technology (Shanghai) Co., Ltd. Riming Computer updates the Environmental Self-monitoring Program in accordance with the requirements of the pollutant discharge license and environment assessment, and entrusts a qualified third-party monitoring agency with sampling, testing and issuing a compliance report.

内容: Administrative penalties imposed due to environmental issues during the reporting period Name of the Company or Reasons for penalty its subsidiaries On November 3, 2020, Jiaxing Ecological Environment Bureau checked Rishan’s plant located at No. 89 Changjiang Road, Huimin Street, Jiashan County, and Rishan discovered that the Computer Accessories total phosphorus concentration of the (Jiashan) wastewater at its Co., Ltd. main sewage discharge outlet is 9.66mg/L, exceeding Level 1 provided in Table 1 of the Restrictions on Indirect Discharge of Nitrogen and Phosphorus Violations Penalty results Effects on the listed company’s Rectification measures of the Company production and operation 1. An independent wastewater pipe will be added in the north within the plant, through which the pretreated production wastewater meeting the standard will be transmitted to the main discharge outlet. A parshall flume will be built at the main discharge outlet, and a set of automatic monitoring device meeting the standardization requirements will be newly installed to monitor the quality of production wastewater. The original wastewater pipe will be used for domestic sewage discharge, and the original online monitoring device is used for internal monitoring of domestic sewage quality. After transformation, the Company’s internal domestic sewage and the production wastewater are diverged. The independent online monitoring system monitors the water quality, facilitating future environmental protection monitoring and management work. Once abnormal data exceeding the standards are found, the response 83

内容: Rishan Computer is the subsidiary of Rikai Computer Violate the provisions On February 4, 2021, (now known as of Article 10 Jiaxing Ecological Rikai Yancheng) of the Law Environment Bureau when the of the imposed an Company People’s Administrative consummated Republic of Penalty (Jia Huan the closing on China on the (Shan) Fa Zi [2021] February 3, Prevention No. 3) amounting to 2021. This and Control RMB250,000 on administrative of Water penalty has no Rishan Computer. effects on the Pollution. Company’s production and operation.

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Pollutants from Wastewater of Industrial Enterprises (DB33/887-2013), namely, 8mg/L. measures can be taken immediately to stop the discharge of corresponding water sources until they meet the discharge requirements of environmental protection. 2. The emergency pool and sewage pipe are checked on a regular basis every year, and the manufacturer is arranged to flush the rain and sewage pipe network at least once a year. 3. The environmental protection risk assessment, the environmental protection measure acceptance, and process monitoring and management are strictly implemented towards the new, reconstructed, expanded projects/production processes.

内容: Other environment information to be disclosed N/A Measures taken to reduce carbon emissions during the reporting period and their effects √ Applicable □ N/A The Company’s 2021 Sustainable Development Report has been published at Cninfo (www.cninfo.com.cn), the information disclosure website designated by the Company, together with this report on the same day. Other environmental information The Company’s 2021 Sustainable Development Report has been published at Cninfo (www.cninfo.com.cn), the information disclosure website designated by the Company, together with this report on the same day.

内容: The Company’s 2021 Sustainable Development Report has been published at Cninfo (www.cninfo.com.cn), the information disclosure website designated by the Company, together with this report on the same day.

内容: III. Consolidation and expansion of poverty alleviation and rural revitalization

内容: The Company did not carry out the work on poverty alleviation and rural revitalization during the reporting period or have subsequent relevant plans.

内容: 1. Complete and incomplete commitments of the Company and its actual controller, shareholders, related parties, acquirers, and other related parties for the commitments by the end of the reporting period.

内容: √ Applicable □ N/A Giver of commitments Commitmen t type Date of s Term of nts Performa nce

内容: Details of commitments commitment commitme

内容: Commitments relating to the transformation into share holding system Commitments made in any acquisition report or report on changes in equity Commitments relating to any asset restructuring Pursuant to the applicable regulations of the China Securities Regulatory Commission, in order to ensure the implementation of the remedial measures HUANG for diluted earnings of the Dawei, LI Company, each of the directors and executives Bin, LIN of the Company hereby Yifei, WANG commitments as follows: Laichun, The 1. I will not transfer benefits to any other WANG commitm Other entity or individual Laisheng, WU ents have commitment without compensation or July 11,2019 Permanent Tiansong, been on unfair terms, or s XIONG fulfilled otherwise damage the interest of the Company. Tengfang, XU strictly 2. I will exercise Huaibin, XUE self-discipline in Haigao, YE consumption in performing my duties. Yiling, 3. I will not use the assets ZHANG Ying of the Company to engage in any investment or consumption activity not in connection with my duties. 4. I will, within my

内容: Commitments relating to any initial public offering or subsequent fund raising

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 powers, procure the linkage between the compensation system adopted by the Board of Directors or the Compensation and Performance Appraisal Committee and the implementation of the Company’s remedial measures for diluted earnings. 5. I will, within my powers, procure the linkage between the vesting conditions in respect of any share incentives granted by the Company and the implementation of the Company’s remedial measures for diluted earnings. 6. I undertake to strictly fulfill the commitments set forth above, to ensure the implementation of the remedial measures for diluted earnings of the Company. If I breach or refuse to fulfill any commitment set forth above, I will make explanations and apologies and perform other obligations required by the applicable regulations, and agree to accept any punishment or regulatory action that may be imposed on or taken against me by the China Securities Regulatory Commission, the Shenzhen Stock Exchange or any other competent securities regulatory authority pursuant to the applicable rules and regulations established or promulgated by such regulatory authorities, and indemnify the Company or its shareholders for the losses (if any) arising therefrom according to law.

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 In order to seriously protect the legitimate rights and interests of the Company and all of its shareholders, each of the controlling shareholder and actual controllers of the Company hereby commitments as follows: 1. We/I will not interfere with management and operation of the Company beyond our/my powers, or infringe on the interest of the Company. 2. We/I will procure the implementation of the remedial measures for diluted earnings of the Company, and fulfill our/my commitments in connection therewith. If We/I breach or refuse to fulfill any commitment set forth above, We/I agree to accept any punishment or regulatory action that may be imposed on or taken Other against us/me by the July 11, commitment China Securities 2019 s Regulatory Commission, the Shenzhen Stock Exchange or any other competent securities regulatory authority pursuant to the applicable rules and regulations established or promulgated by such regulatory authorities, and indemnify the Company or the investors for the losses (if any) arising therefrom according to law. 3. From the date of this commitment till the date of completion of this offering, if the China Securities Regulatory Commission or any other competent securities regulatory authority adopts any new regulation regarding the remedial measures for diluted earnings and commitments in

内容: Luxshare Limited, WANG Laichun, WANG Laisheng

内容: The commitm Permanent ents have been fulfilled strictly

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 connection therewith, and the commitments set forth above do not satisfy the requirements of such new regulation, We/I will make supplementary commitments pursuant to the new regulation. Luxshare Limited, as the controlling shareholder of the Company, and WANG Laichun and WANG Laisheng, as the actual controllers of the Company, hereby commitment as follows: 1. We, Luxshare Limited, as the controlling shareholder of the Company, undertake not to interfere with management and operation of the Company beyond our powers, or infringe on the interest of the Company. 2. I, WANG Laichun, as the actual controller, Chairman and General Manager of the Company, undertake to perform my duties in accordance with Other the applicable laws and March 11, commitment regulations and the 2016 s articles of association of the Company, and not to interfere with management and operation of the Company beyond my powers, or infringe on the interest of the Company. 3. I, WANG Laisheng, as the actual controller and Vice Chairman of the Company, undertake to perform my duties in accordance with the applicable laws and regulations and the articles of association of the Company, and not to interfere with management and operation of the Company beyond my powers, or infringe on the interest of the Company.

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Each of the directors and executives of the Company hereby commitments as follows: (1) I will not transfer benefits to any other entity or individual without compensation or on unfair terms, or otherwise damage the interest of the Company. (2) I will exercise self-discipline in consumption in performing my duties. (3) I will not use the assets of the Company to engage in any investment or consumption activity not in connection with my duties. (4) I will procure the linkage between the compensation system adopted by the Board of Directors or the Compensation and Performance Appraisal Committee and the implementation of the Company’s remedial measures for diluted earnings. (5) If the Company establishes any share incentive plan in the future, I will procure the linkage between the vesting conditions in respect of any share incentives granted by the Company and the implementation of the Company’s remedial measures for diluted earnings. The commitments relating to horizontal competition, related-party transactions and occupation of funds are as follows: 1. We and all other entities controlled by us at present or in the future will not, directly or indirectly, engage in any business or activity that competes or might compete or

内容: BAI Rujing, CHEN Chaofei, DONG Jianhai, LI Bin, LI Jing, LI Xiongwei, LIN Yifei, WANG Ji, WANG Laichun, WANG Laisheng, XU Huaibin, YE Yiling, ZHANG Lihua Other commitment s

内容: The commitm March 11, 2016 Permanent ents have been fulfilled strictly

内容: Commitmen ts relating to horizontal Luxshare Limited competition, related-party transactions and occupation of funds

内容: The commitm October 15, 2014 Permanent ents have been fulfilled strictly

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 potentially compete with the main business of the Company. 2. If any amendment of any applicable law or change in any applicable policy of the country results in any actual or potential horizontal competition between us or any other entity controlled by us and the Company in any business, the Company shall have the preemptive right on the same terms in respect of any entrusted management (or management under contract or lease) or acquisition in connection with such business. 3. So long as we remain the shareholder Company, commitments above unconditional set shall controlling of the the forth be and

内容: irrevocable. If we breach any commitment set forth above, we will, jointly and severally, fully, timely and adequately indemnify the losses of the Company arising therefrom. The commitments relating to horizontal competition, related-party transactions and occupation of funds are as follows: The 1. We and other entities controlled by us will commitm reduce related-party October 15, ents have Permanent transactions with the 2014 been Company to the maximum fulfilled extent practicable. 2. With respect to any strictly related-party transaction between us or any other entity controlled by us and the Company that is unavoidable or exists 90

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 reasonably, we will carry out such transaction on an arm’s length basis and customary commercial terms, ensure the fairness of the transaction price, perform the relevant decision-making process according to law, and guarantee that the legitimate rights and interests of the Company and its shareholders will not be damaged as a result of such transaction. 3. We or any other entity controlled by us will not request the Company to offer any terms more favorable than the terms that may be offered by any third party in an arm’s length transaction, or accept any such terms offered by the Company. 4. So long as we remain the shareholder Company, commitments above unconditional set shall controlling of the the forth be and

内容: irrevocable. If we breach any commitment set forth above, we will, jointly and severally, fully, timely and adequately indemnify the losses of the Company arising therefrom. The commitments relating Commitmen to horizontal competition, ts relating to related-party transactions WANG Laichun, WANG Laisheng horizontal and occupation of funds July 30, 2010 Permanent competition, are as follows: I and other related-party entities controlled by me transactions are not engaged in any and occupation of funds business that is the same as or similar to the business of the Issuer or any entity controlled by 91 The commitm ents have been fulfilled strictly

内容: the Issuer. So long as I retain control over the Issuer comply applicable directly with or the laws, indirectly, I will strictly

内容: regulations and codes of the country, and will not, directly or indirectly, engage in any business that is the same as, similar to or substantially with in the competition

内容: business of the Issuer or any entity controlled by the Issuer, or or have relative substantial

内容: control over any other company, organization or economic entity engaging in any business that is the same as, similar to or substantially competition with in the

内容: business of the Issuer or any entity controlled by the Issuer in or outside China. I will use my control over the other entities controlled by me to cause such entities to fulfill the commitments set forth above in the same manner. If I breach any commitment set forth above, I agree to assume the without relevant limitation, legal including to liabilities,

内容: indemnify the Issuer and its minority shareholders for all losses arising therefrom. Luxshare Commitmen The commitments relating July 30, Permanent The 92

内容: Limited, Shenzhen Zixin Investment Co., Ltd.

内容: ts relating to to horizontal competition, 2010 horizontal related-party transactions competition, and occupation of funds related-party are as follows: We are not transactions engaged in any business and occupation of funds that is the same as or similar to the business of the Issuer or any entity controlled by the Issuer. So long as we retain control over the Issuer directly or indirectly, we will strictly comply with the applicable laws, regulations and codes of the country, and will not, directly or indirectly, engage in any business that is the same as, similar to or substantially with in the competition

内容: commitm ents have been fulfilled strictly

内容: business of the Issuer or any entity controlled by the Issuer in or outside China. We will use our control over the other entities controlled by us to cause such entities to fulfill the commitments set forth above in the same manner. If we breach any commitment set forth above, we agree

内容: to assume the relevant legal liabilities, including without limitation, to indemnify the Issuer and its minority shareholders for all losses arising therefrom. The commitments relating to horizontal competition, related-party transactions and occupation of funds are as follows: We/I will not take advantage of our/my position as the controlling actual shareholder shareholder, or (as controller

内容: applicable) and our/my affiliation with the Issuer to engage in any act to the Luxshare Limited, Shenzhen Zixin Investment Co., Ltd., WANG Laichun, WANG Laisheng detriment of the interest of Commitmen the Issuer or its other ts relating to shareholders. With respect horizontal to any any related-party other entity July 30， 2010 Permanent competition, transaction between us/me related-party or and occupation of funds transactions controlled by us/me and the Issuer, we/I will carry out such transaction on an arm’s length basis and customary commercial terms, and will not request the Issuer to offer any terms more favorable than the terms that may be offered by any third party in an arm’s length transaction, or accept any such terms offered by the Issuer. We/I will strictly perform all related-party transaction agreements (if any) entered into with the Issuer in good faith, and 94 The commitm ents have been fulfilled strictly

内容: will not seek any interest or benefit in contravention of the commitments set forth above. If we/I breach any commitment set forth above, we/I agree to indemnify the Issuer and its minority shareholders for all losses arising therefrom. Luxshare Limited, as the controlling shareholder of the Luxshare Limited Other s Company, hereby February 3, February 2021 2, 2022 undertakes not to sell any through the stock trading system within 12 months after the completion of this disposal. After the completion of the contemplated Commitmen investment horizontal Luxshare Limited transactions by the and The commitm November 13, 2020 Permanent ents have been fulfilled strictly The commitm ents have been fulfilled strictly

内容: announcement on external ts relating to related-party transactions Commitments relating to share incentives disclosed by the Company competition, on November 13, 2020, related-party we and our affiliates will transactions not and occupation of funds as engage or in any in the business that is the same substantially with competition

内容: business of the Company or any entity controlled by the Company in any manner. Luxshare Limited, as the controlling shareholder of Luxshare Limited Other s the Company, hereby share of the Company through the stock trading system within 6 months commitment undertakes not to sell any July 22, 2020 February 2, 2022 Fulfilled

内容: after the completion of this disposal. Commitments made to the minority shareholders of the Company Whether the commitments have been fulfilled on time? If any commitment fails to be fulfilled on time, please state the specific reason and the relevant action plan N/A Yes

内容: 2. If the Company has made any profit forecast on its assets or project and the reporting period falls within the period of such profit forecast, explanation about whether the goal has been achieved and the relevant reasons

内容: II. Occupation of funds of the listed company by the controlling shareholder and other related parties for non-operating purposes

内容: □ Applicable √ N/A During the reporting period, no controlling shareholder or its related party used capital of the listed company for non-operating purposes.

内容: III. Illegal provision of guarantees for external parties

内容: □ Applicable √ N/A We have not provided any external guarantee in contravention of the applicable regulations during the reporting period.

内容: IV. Explanation made by the Board of Directors about the modified audit opinion for the latest period

内容: V. Explanation by the Board of Directors, the Board of Supervisors and the independent directors (if any) about the modified auditor’s report issued by the accounting firm for the reporting period

内容: VI. Explanation about changes in accounting policies and accounting estimates or correction of significant accounting errors when compared to the previous financial year

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 The Company has no changes in accounting policies and accounting estimates or correction of significant accounting errors during the reporting period.

内容: VII. Explanation about changes in consolidation scope when compared to the previous financial year

内容: √ Applicable □ N/A The consolidation scope for this period adds by new establishment Luxis Technology Limited, Luxshare Precision Industry (Yancheng) Co., Ltd., Hangzhou Xuntao Technology Co., Ltd., Rugao Lixun Enterprise Management Service Partnership (Limited Partnership), Lianxun Intelligent Equipment (Rugao) Co., Ltd., Luxshare Precision Technology (Xi’an) Co., Ltd., Luxshare Electronic Technology (Enshi) Co., Ltd., Lixin Technology (Kunshan) Co., Ltd., Luxshare Precision Investment Co., LTd., Yancheng Lixun Enterprise Management Service Partnership (Limited Partnership), Lixun Intelligent Equipment (Yancheng) Co., Ltd., Luxis Precision Intelligent Manufacturing (Kunshan) Co., Ltd., Lixun Intelligent Electronic Service (Kunshan) Co., Ltd., Liding Electronic Technology (Dongguan) Co., Ltd., Luxshare Precision Technology (Nanjing) Co., Ltd., Henan Lide Precision Industry Co., Ltd. and Changzhi Lixun Precision Industry Co., Ltd.; the consolidation scope adds by cash acquisition Rikai Precision Technology (Yancheng) Co., Ltd., Zhejiang Puxing Electronic Technology Co., Ltd.; the consolidation scope addes by agreement control Caldigit Holding (Cayman) and Tainhan Precision Co., Ltd.; the shares held in Wuxi Huihong Electronics Co., Ltd. are transferred during this period, so it is not included in the consolidation scope; Ji’an City Jihzou District Lixun Electronics Co., Ltd., Speedtech (LS-ICT) Co., Limited, Lixun International Cable Co., Ltd. and Luxshare-ICT International B.V. are cancelled by liquidation, so they are not included in the consolidation scope.

内容: VIII. Appointment and dismissal of accounting firms

内容: Accounting firm currently engaged: Name of domestic accounting firm Remuneration of domestic accounting firm (in RMB0’000) Consecutive years in which the domestic accounting firm has provided auditing service Certified public accountant of the domestic accounting firm Consecutive years in which the certified public accountant of the domestic accounting firm has provided auditing service Name of foreign accounting firm (if any) BDO China Shu Lun Pan Certified Public Accountants LLP 230 14 LI Jing, WEI Gang 5 None

内容: Remuneration of foreign accounting firm (in RMB0’000) (if any) 0 Consecutive years in which the foreign accounting firm has provided auditing service (if any) Certified public accountant of the foreign accounting firm (if any) None

内容: Consecutive years in which the certified public accountant of the None 97

内容: foreign accounting firm has provided auditing service (if any) Whether a new accounting firm was engaged during the reporting period? □ Yes √ No Engagement of accounting firm for auditing internal controls, financial advisor or sponsor: □ Applicable √ N/A

内容: IX. Possibility of listing suspension and termination after disclosure of the annual report

内容: X. Matters relating to bankruptcy and reorganization

内容: □ Applicable √ N/A We have not been involved in any bankruptcy or reorganization proceedings during the reporting period.

内容: XI. Material litigation and arbitration proceedings

内容: √ Applicable □ N/A Amount Background claimed (RMB0’000) Whether a provision is recognized The case has been Other litigation during the reporting period 89.57 No Closed settled/ closed by mediation or won, and does not have a material effect on us. The case is Other litigation during the reporting period 47,706.74 No Pending pending, and will not have a material effect on us. Pending N/A Closed by mediation or enforced N/A Status Result and effect Enforcement of judgment/ award Date of disclosure Information disclosure available at

内容: □ Applicable √ N/A We have not been subject to any punishment or required to make any rectification during the reporting period.

内容: XIII. Integrity of the Company, its controlling shareholder and actual controller

内容: √ Applicable □ N/A There wasn’t any outstanding court judgment or overdue debt of a large amount involving us or our controlling shareholder or actual controllers during the reporting period.

内容: XIV. Material related-party transactions

内容: 1. Related-party transactions relating to day-to-day operation

内容: √ Applicable □ N/A % of the total RelatedCounterp Relation arty ship Type party transacti ons Pricing Transact principl e ion price Amount amount (in RMB0’ 000) of the same type of transacti ons Approv ed limit of transacti on amount (in RMB0’ 000) Whethe exceed the approve d limit of settleme nt Market price e for the same type of transacti ons Announcement Purchas BCS Suzhou Related legal person e of goods from related party Purchasi Market- Fair ng goods set prices market price 370.89 0.00% 200 Yes Bank transfer Fair price April 2021 on Expected Daily Related Party Transactions for 2021 (Announcement No.: 2021-039) Announcement on Expected BCS Suzhou Related legal person Sales of goods to Sales of related persons goods Market- Fair set prices market price 21,871. 71 Bank transfer Fair price April 2021 Daily Related Party Transactions for 2021 (Announcement No.: 2021-039) Announcement Related legal person Sales of goods to Sales of related persons goods on Expected Market- Fair set prices market price 41,714. 73 0.27% 50,000 No Bank transfer Fair market price October 8, 2021 Added Daily Related Party Transactions for 2021 (Announcement Date of disclosu re Information disclosure available at r or not Method availabl

内容: No.: 2021-081) Total Particulars of huge-amount sales returns If the total amount of daily related-party transactions that are --63,957. 33 -77,700 ------

内容: N/A When expecting the annual daily related party transactions, the Company conducts the appraisal and calculation of possible related party transactions according to the market situation, but the actually

内容: expected to occur during the reporting accrued amount is determined based on market situation, the two parties’ business development, period is estimated by type, the actual actual demands and specific implementation progress, resulting in certain differences between transactions occurred during the reporting period (if any) Reason of any great difference between transaction price and reference market price (if applicable) N/A actually accrued amount and expected amount. The foregoing belongs to the acts of normal business and will not have a significant impact on daily operation and performance of the Company.

内容: 2 Related-party transactions involving acquisition or sales of assets or equities

内容: □ Applicable √ N/A We have not conducted any related-party transaction involving acquisition or sales of assets or equities during the reporting period.

内容: 3. Related-party transactions involving joint external investment

内容: □ Applicable √ N/A The Company had no related-party transactions on joint investments during the reporting period.

内容: 4. Accounts receivable from and payable to related parties

内容: □ Applicable √ N/A We did not have any accounts receivable from or payable to any related party during the reporting period.

内容: 5. Financial business with its related financial companies

内容: □ Applicable √ N/A There are no deposits, loans, credits or other financial transactions between the Company, its related financial companies and related parties.

内容: 6. Financial business between the financial companies controlled by the Company and related parties

内容: □ Applicable √ N/A There are no deposits, loans, credits or other financial transactions between the financial companies controlled by the Company and related parties.

内容: 7. Other significant related-party transactions

内容: □ Applicable √ N/A We have not conducted any other material related-party transaction during the reporting period.

内容: XV. Significant contracts and performance thereof

内容: 1. Trusteeship, contracting and leases (1) Trusteeship

内容: □ Applicable √ N/A No such case during the reporting period.

内容: External guarantees provided by the Company and its subsidiaries (excluding those provided for the subsidiaries) Disclosure date of announcem Maximum Obligor ent on the amount guaranteed Guarantees provided by the Company for its subsidiaries Disclosure date of Obligor announcem ent on the maximum amount Maximum amount guaranteed Effective date of guarantee Actual amount guaranteed Counter Type of guarantee Collateral guarant Term of (if any) ee (if any) guarantee Whether or not expired Whether or not provided for a related party 101 amount maximum guaranteed Effective date of guarantee Actual amount guaranteed Type of guarantee Counter Collateral guarant Term of (if any) ee (if any) guarantee Whether or not expired Whether or not provided for a related party

内容: guaranteed LUXSHAR E N LUXSHAR E N ICT-LANT O/LUXSH ARE PRECISIO N LUXSHAR E N Total amount of guarantee approved to be provided for subsidiaries during the reporting period (B1) Total amount of guarantee approved to be provided for subsidiaries as at the end of the reporting period (B3)

内容: April 20, April 20, 2021 April 20, April 20,

内容: Joint and 510,056 July 20, 2020 several guarantee

内容: Joint and several guarantee A year No Yes

内容: Joint and 277,342.95 several guarantee A year No Yes

内容: Joint and several guarantee Total amount of guarantee actually

内容: 350,025.93 provided for subsidiaries during the reporting period (B2) Total amount of guarantee actually 860,081.93 provided for subsidiaries as at the end of the reporting period (B4) Guarantees provided by subsidiaries for each other

内容: Disclosure date of announcem Maximum Obligor ent on the amount guaranteed Total amount of guarantee provided by the Company Total amount of guarantee approved during the reporting period (A1+B1+C1) Total amount of 350,025.93 guarantee actually provided during the amount maximum guaranteed Effective date of guarantee Actual amount guaranteed Type of guarantee Counter Collateral guarant Term of (if any) ee (if any) guarantee Whether or not expired

内容: Whether or not provided for a related party

内容: reporting period (A2+B2+C2) Total amount of Total amount of guarantee approved as at the end of the reporting period (A3+B3+C3) guarantee actually 860,081.93 provided as at the end of the reporting period (A4+B4+C4) Ratio of total amount of guarantee actually provided (A4+B4+C4) to the net assets of the Company Including: Outstanding guarantees provided for shareholders, actual controller and their affiliates (D) Explanation about warranty liability already incurred or possible several and joint liquidation liability shown by evidence during the reporting period for the undue guarantees (if any) Explanation about external guarantees provided in contravention of the established procedures (if any) Particulars of the guarantees provided using complex method: N/A None None 0 0.00%

内容: 3. Entrusted management of cash assets （1）Entrusted wealth management

内容: √ Applicable □ N/A Entrusted wealth management during the reporting period:

内容: Impairment amount made for overdue Type Source of funds Total amount Outstanding amount Overdue amount uncollected wealth management products Bank wealth management amount Total Self-owned funds 272,472.82 272,472.82 199,119.95 199,119.95 0 0 0 0

内容: Details of entrusted wealth management with individually significant amount or low safety, poor liquidity, high risk □ Applicable √ N/A Entrusted wealth management products the principal of which may be unrecoverable or which may otherwise be impaired: 103

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 □ Applicable √ N/A

内容: √ Applicable □ N/A Entrusted loans during the reporting period: In RMB0’000 Total amount Source of funds 863,350 Self-owned funds Outstanding amount 863,350 Overdue amount 0

内容: Details of entrusted loans with individually significant amount or low safety, poor liquidity, high risk □ Applicable √ N/A Entrusted loans the principal of which may be unrecoverable or which may otherwise be impaired: □ Applicable √ N/A

内容: □ Applicable √ N/A We have not entered into any other material contract during the reporting period.

内容: □ Applicable √ N/A The Company has no other significant matters to be explained during the reporting period.

内容: XVII. Significant events of subsidiaries of the Company

内容: Section VII Changes in shares and shareholders

内容: Unit: Share Before the change ＋,－ Shares Number Proportio n New shares issued Stock dividend converted from capital reserve I. Non-tradable shares 1. Shares held by the State 2. Shares held by State-owned corporations 3. Shares held by other domestic investors

内容: Incl.: Shares held by domestic non-State-owned corporations

内容: Shares held by domestic natural persons 4. Shares held by foreign investors

内容: Incl.: Shares held by foreign corporations

内容: Shares held by foreign natural persons II. Tradable shares 1. RMB-denominated ordinary shares 2. Foreign currency-denominated shares listed domestically

内容: 3. Foreign currency-denominated shares listed overseas 4. Others III. Total shares Reasons of changes in shares: √ Applicable □ N/A 1. On June 22, 2020, the Company held the 19th meeting of the fourth Board of Directors and the 19th meeting of the fourth Board of Supervisors, at which the Proposal on Satisfaction of Vesting Conditions for the First Vesting Period Initially Granted under 2019 Stock Option Incentive Plan was reviewed and passed. The grantees meeting these vesting conditions may exercise options in the first vesting period at their sole discretion, and the actual exercisable period is from July 7, 2020 to April 21, 2021. Refer to the Cautionary Announcement on Adoption of the Discretionary Exercise Method for the First Vesting Period of the 2019 Stock Option Incentive Plan (Announcement No.2020-049) for details. During the reporting period, the grantees exercised 1,291,186 shares in total in the first vesting period initially vested under 2019 stock option incentive plan. 2. On December 2, 2020, the Company held the 17th meeting of the fourth Board of Directors and the 27th meeting of the fourth Board of Supervisors, at which the Proposal on Satisfaction of Vesting Conditions for the Second Vesting Period under 2018 Stock Option Incentive Plan was reviewed and passed. The grantees meeting these vesting conditions may exercise options in the second vesting period at their sole discretion, and the actual exercisable period is from December 22, 2020 to September 24, 2021. Refer to the Cautionary Announcement on Adoption of the Discretionary Exercise Method for the Second Vesting Period of the 2018 Stock Option Incentive Plan (Announcement No.2020-108) for details. During the reporting period, the grantees exercised 13,854,690 shares in total in the second vesting period under 2018 stock option incentive plan. 3. On January 22, 2021, the Company held the 29th meeting of the fourth Board of Directors and the 29th meeting of the fourth Board of Supervisors, at which the Proposal on Satisfaction of Vesting Conditions for the First Vesting Period Reserved under 2019 Stock Option Incentive Plan was reviewed and passed. The grantees meeting these vesting conditions may exercise options in the first vesting period at their sole discretion, and the actual exercisable period is from February 8, 2021 to November 26, 2021. For details, please see the Suggestive Announcement on Exercise at Their Sole Discretion in the First Vesting Period Reserved under 2019 Stock Option Incentive Plan (Announcement No. 2021-021). During the reporting period, the grantees exercised 4,109,496 shares in total in the first vesting period reserved under 2019 stock option incentive plan. 4. On July 2, 2021, the Company held the 2nd meeting of the fifth Board of Directors and the 2nd meeting of the fifth Board of Supervisors, at which the Proposal on Satisfaction of Vesting Conditions for the Second Vesting Period Initially Granted under 2019 Stock Option Incentive Plan was reviewed and passed. The grantees meeting these vesting conditions may exercise options in the second vesting period at their sole discretion, and the actual exercisable period is from July 15, 2021 to April 21, 2022. For details, please see the Suggestive Announcement on Exercise at Their Sole Discretion in the Second Vesting Period Initially Granted under 2019 Stock Option Incentive Plan (Announcement No. 2021-069). During the reporting period, the grantees exercised 14,627,322 shares in total in the second vesting period initially vested under 2019 stock option incentive plan. 5. On December 3, 2021, the Company held the 6th meeting of the fifth Board of Directors and the 6th meeting of the fifth Board of Supervisors, at which the Proposal on Satisfaction of Vesting Conditions for the Third Vesting Period under 2018 Stock Option Incentive Plan was reviewed and passed. The grantees meeting these vesting conditions may exercise options in the third vesting period at their sole discretion, and the actual exercisable period is from December 10, 2021 to September 23, 2022. For details, please see the Suggestive Announcement on Exercise at Their Sole Discretion in the Third Vesting Period under 2018 Stock Option Incentive Plan (Announcement No. 2021-102). During the reporting period, the grantees exercised 19,597,470 shares in total in the third vesting period under 2018 stock option incentive plan. 106 7,017,833, 791 100% 53,488,97 53,488,97 7,071,322 3 3 ,764 100%

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 6. The Company publicly offered 30,000,000 convertible corporate bonds (abbreviation: Luxshare Convertible Bonds; bond code: 128136) on November 3, 2020, and the period for which the convertible corporate bonds can be converted into shares is from May 10, 2021 to November 2, 2026. During the reporting period, the number of shares converted into by bonds was 8,809. Approval of changes in shares: √ Applicable □ N/A 1. Review and approve by the 19th meeting of the fourth Board of Directors and the 19th meeting of the fourth Board of Supervisors of the Company; 2. Review and approve by the 27th meeting of the fourth Board of Directors and the 27th meeting of the fourth Board of Supervisors of the Company; 3. Review and approve by the 29th meeting of the fourth Board of Directors and the 29th meeting of the fourth Board of Supervisors of the Company; 4. Review and approve by the 2nd meeting of the fifth Board of Directors and the 2nd meeting of the fifth Board of Supervisors of the Company; 5. Review and approve by the 6th meeting of the fifth Board of Directors and the 6th meeting of the fifth Board of Supervisors of the Company. Transfer of share ownership: √ Applicable □ N/A 1. Period in which the stock options vested in the first vesting period initially granted under the 2019 stock option incentive plan may be exercised by the relevant grantees at their sole discretion: from July 7, 2020 to April 21, 2021; 2. Period in which the stock options vested in the second vesting period under the 2019 stock option incentive plan may be exercised by the relevant grantees at their sole discretion: from December 22, 2020 to September 24, 2021; 3. Period in which the stock options vested in the first vesting period reserved under the 2019 stock option incentive plan may be exercised by the relevant grantees at their sole discretion: from February 8, 2021 to November 26, 2021; 4. Period in which the stock options vested in the second vesting period initially granted under the 2019 stock option incentive plan may be exercised by the relevant grantees at their sole discretion: From July 15, 2021 to April 21, 2022; 5. Period in which the stock options vested in the third vesting period under the 2018 stock option incentive plan may be exercised by the relevant grantees at their sole discretion: from December 10, 2021 to September 23, 2022. Effect of changes in shares on the basic earnings per share, diluted earnings per share, net assets per share attributable to ordinary shareholders and other financial indicators of the Company in the preceding year and the most recent reporting period: □ Applicable √ N/A Other information disclosed as the Company deems necessary or required by the securities regulatory authorities: □ Applicable √ N/A

内容: √ Applicable □ N/A Unit: Share Balance of Shareholder non-tradable shares as at January 1, 2020 Number of non-tradable shares the reporting Number of non-tradable shares increased period Balance of non-tradable shares as at December 31, 2020 Reason for restriction Unlock date

内容: period Lock-up shares XUE Haigao 912,578 0 912,578 0 for senior officers November 25, 2021 (the day next to the sixth month following expiry of the original term of office) November 25, 2021 (the day next to the sixth month following expiry of the original term of office) November 25, 2021 (the day next to the sixth month following expiry of the original term of office) November 25, 2021 (the day next to the sixth month following expiry of the original term of office) The restricted conditions Lock-up shares are released according to WU Tiansong 273,775 225,607 0 499,382 for senior officers the requirements on the lock-up shares for senior officers The restricted conditions Lock-up shares are released according to WANG Laisheng 6,970,267 0 1,742,567 5,227,700 for senior officers the requirements on the lock-up shares for senior officers The restricted conditions Lock-up shares are released according to HUANG Dawei 329,542 0 0 329,542 for senior officers the requirements on the lock-up shares for senior officers The restricted conditions Lock-up shares are released according to WANG Tao 0 96,022 0 96,022 for senior officers the requirements on the lock-up shares for senior officers Total 11,007,921 321,629 5,176,904 6,152,646 ---

内容: Lock-up shares LI Bin 1,571,664 0 1,571,664 0 for senior officers

内容: Lock-up shares XIONG Tengfang 367,566 0 367,566 0 for senior officers

内容: Lock-up shares YE Yiling 582,529 0 582,529 0 for senior officers

内容: 1. Offering of securities (other than preferred shares) during the reporting period

内容: 2. Changes in total number of shares, shareholding structure, and structure of assets and liabilities of the Company

内容: √ Applicable □ N/A 1. Upon review and approval by the 19th meeting of the fourth Board of Directors, the 27th meeting of the fourth Board of Directors, the 29th meeting of the fourth Board of Directors, the 6th meeting of the fifth Board of Directors, and the 2nd meeting of the fifth Board of Directors of the Company, the vesting conditions for the first vesting period initially granted under 2019 stock option incentive plan, the second vesting period under 2018 stock option incentive plan, the first vesting period reserved under 2019 stock option incentive plan, the second vesting period initially granted under 2019 stock option incentive plan, and the third vesting period under 2018 stock option incentive plan were satisfied, and the Company agreed that the relevant stock option grantees of the Company exercise options at their sole discretion, and a total of additional 53,480,164 shares were issued to the grantees exercising options at their sole discretion during the reporting period. 2. The Company publicly offered 30,000,000 convertible corporate bonds (abbreviation: Luxshare Convertible Bonds; bond code: 128136) on November 3, 2020, and the period for which the convertible corporate bonds can be converted into shares is from May 10, 2021 to November 2, 2026. During the reporting period, the number of shares converted into by bonds was 8,809.

内容: III. Shareholders and actual controllers

内容: 1. Number of shareholders and shareholding structure of the Company

内容: Unit: Share Total number of Total number of Total number of ordinary shareholders at the end of the reporting period ordinary shareholders at the end of the 258,745 month immediately preceding the date of this annual report Total number of preferred shareholders whose voting 326,906 rights had been restituted at the end of the reporting period (if any) (Note 8) 0 preferred shareholders whose voting rights had been restituted at the end of the month immediately preceding the date of this annual report (if any) (Note 8) Shareholding of ordinary shareholders holding more than 5% of the shares or top 10 ordinary shareholders 109 0

内容: Changes in ing during the reporting period 0 2,731,537, 636 593,835,7 64 Pledge No. of le ordinary shares held sharehold non-tradab

内容: shares held shareholdin at the end g during the of the reporting period reporting period

内容: Luxshare Limited Hong Kong Securities Clearing Company Limited China Securities Finance Corporation Limited Central Huijin Asset Management Co., Ltd. China Merchants Bank Co., Ltd. Ruiyuan Growth Value Hybrid Securities Investment Fund Pegatron Technology

内容: Domestic non-stated owned corporation 1.19%

内容: Domestic non-stated owned corporation 0.75%

内容: (Shanghai) Co Ltd corporation E Fund Agricultural Bank of China - E Fund Zhongzheng Financial Asset Management Plan Industrial and Commercial Bank of China Limited – Domestic Zhong Ou Times Pioneer Stock Sponsored Securities non-stated owned corporation 0.55% Domestic non-stated owned corporation 0.55%

内容: Investment Fund China AMCAgricultural Bank of China - China AMC Zhongzheng Financial Asset Management Plan Zhong Ou Fund Agricultural Bank of China - Zhong Ou Zhongzheng Financial Asset Management Plan Strategic investors or general corporations becoming top 10 ordinary shareholders as a result of rights issues (if any) (Note 3) 1. Luxshare Limited is the controlling shareholder of the Company; Affiliates or concert parties among the 2. The Company is not aware of whether there are associates or persons acting in concert as shareholders listed above defined in the Administrative Measures for the Information Disclosure of Shareholding Changes of Shareholders of Listed Companies. Delegation or waiver of voting rights or ownership of voting rights as a proxy in respect of the shareholders listed above Shares held by top 10 holders of tradable shares Shareholder Number of tradable shares held at the end of the reporting period 2,731,537,636 Type RMB-denominat ed ordinary share RMB-denominat ed ordinary share RMB-denominat ed ordinary share RMB-denominat ed ordinary share RMB-denominat ed ordinary share Type Quantity 2,731,537,636 N/A N/A Domestic non-stated owned corporation 0.55% 38,557,18 4 38,557,18 4 Domestic non-stated owned corporation 0.55% 38,576,83 1 38,576,83 1

内容: Luxshare Limited Hong Kong Securities Clearing Company Limited China Securities Finance Corporation Limited Central Huijin Asset Management Co., Ltd. China Merchants Bank Co., Ltd. Ruiyuan Growth Value Hybrid Securities Investment Fund Pegatron Technology (Shanghai) Co

内容: Ltd E Fund - Agricultural Bank of China E Fund Zhongzheng Financial Asset Management Plan Industrial and Commercial Bank of China Limited – Zhong Ou Times Pioneer Stock Sponsored Securities Investment Fund China AMC- Agricultural Bank of China - China AMC Zhongzheng Financial Asset Management Plan Zhong Ou Fund - Agricultural Bank of China - Zhong Ou Zhongzheng Financial Asset Management Plan Affiliates or concert parties among top 10 holders of tradable ordinary shares, and among top 10 holders of tradable ordinary shares and top 10 ordinary shareholders Engagement by top 10 ordinary shareholders in margin trading (if any) N/A (Note 4) N/A 38,557,184 38,576,831 38,631,788 38,656,343

内容: ed ordinary share RMB-denominat ed ordinary share

内容: Did any top 10 ordinary shareholder or top 10 holder of tradable ordinary shares conduct any transaction under repurchase agreement during the reporting period? □ Yes √ No No top 10 ordinary shareholder or top 10 holder of tradable ordinary shares has conducted any transaction under repurchase agreement during the reporting period

内容: 2. Controlling shareholder of the Company

内容: Nature of controlling shareholder: Controlled by foreign investor Type of controlling shareholder: Corporation Name of controlling shareholder Luxshare Limited Shares held by the controlling shareholder in other companies listed on domestic None or foreign stock exchanges during the reporting period Legal representative/ principal WANG Laichun Date of establishment Change in organization code Main business Investment and share holding

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Change in the controlling shareholder during the reporting period: □ Applicable √ N/A Our controlling shareholder has remained unchanged during the reporting period.

内容: 3. Actual controllers of the Company and their concerted parties

内容: Nature of actual controllers: Natural person Type of actual controllers: Natural person Name of actual controller WANG Laichun WANG Laisheng Relationship with the actual controller Himself Himself Nationality Hong Kong Hong Kong Whether or not hold a residence permit in any other country or region No No

内容: Ms. WANG Laichun, Chairman and General Manager of our Company, former director of Shenzhen High-tech Industry Association and Vice Chairman of Shenzhen Electronics Industry Association, purchased shares of Luxshare Limited jointly with Mr. WANG Laisheng in 1999, and founded and served as Chairman of Luxshare Precision Industry Main occupations and titles (Shenzhen) Co., Ltd. in 2004 through Luxshare HK. Mr. WANG Laisheng serves as the vice chairman of the Company and previously worked as the managing director of Shenzhen Quality Association and the director of Guangdong Laboratories Federation. Mr. WANG Laisheng and Ms. WANG Laichun jointly purchased the shares of Luxshare Limited in 1999, and in 2004, Mr. WANG Laisheng and Ms. WANG Laisheng jointly founded Luxshare Precision Industry (Shenzhen) Co., Ltd.. Whether or not control any other company listed on a domestic or foreign stock exchange in the past ten years Change in the actual controllers during the reporting period: □ Applicable √ N/A Our actual controllers have remained unchanged during the reporting period. Diagram of ownership and control relationship between the Company and its actual controllers: None

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Whether the actual controllers control the Company through any trust or other ways of asset management? □ Applicable √ N/A

内容: 4. The Company’s controlling shareholder or top 1 shareholder and its persons acting in concert pledged account for 80% in total of the Company’s shares held by them

内容: 5. Other institutional shareholders owning over 10% of shares

内容: 6. Restrictions on shareholding reduction of the controlling shareholder, actual controller, restructuring parties, and other commitment subjects

内容: IV. Specific implementation of share repurchases during the reporting period

内容: Progress of share repurchase: □ Applicable √ N/A Progress of sales of repurchased shares through call auction: □ Applicable √ N/A

内容: □ Applicable √ N/A We did not have any preferred share during the reporting period.

内容: □ Applicable √ N/A The Company had no enterprise bonds during the reporting period.

内容: □ Applicable √ N/A The Company had no corporate bonds during the reporting period.

内容: III. Non-financial corporate debt financing instruments

内容: 1. Basic information of non-financial corporate debt financing instruments

内容: In RMB Principal Bond name Bond abbreviation Bond code Issue date Start date Maturity date Bond balance Interest rate and interest payment method Phase I ultra-short-t erm financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase II ultra-short-t erm financing bonds in 2021 of 21 Luxshare-I 012103051 CT SCP002 August 18, August 20, November 2021 2021 18, 2021 900,000,000 .00 A lump sum payment of Interbank 2.45% principal at maturity bond and interest market 21 Luxshare-I 012100153 CT SCP001 January 13, January 15, October 12, 800,000,000 2021 2021 2021 .00 A lump sum payment of Interbank 3.30% principal at maturity bond and interest market Trading venue

内容: Luxshare Precision Industry Co., Ltd. Phase III ultra-short-t erm financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase IV ultra-short-t erm financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase V ultra-short-t erm financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase VI ultra-short-t erm financing bonds in 2021 of Luxshare Precision Industry 21 Luxshare-I 012105157 CT SCP006 November 24, 2021 November 25, 2021 February 23, 2022 400,000,000 .00 2.53% A lump sum payment of Interbank principal at maturity bond and interest market 21 Luxshare-I 012105034 CT SCP005 November 16, 2021 November 11, 2021 February 15, 2022 400,000,000 .00 A lump sum payment of Interbank 2.53% principal at maturity bond and interest market 21 Luxshare-I 012103825 CT SCP004 October 20, October 22, July 19, 2021 2021 2022 800,000,000 .00 A lump sum payment of Interbank 3.00% principal at maturity bond and interest market 21 Luxshare-I 012103127 CT SCP003 August 24, August 25, November 2021 2021 23, 2021 500,000,000 .00 A lump sum payment of Interbank 2.45% principal at maturity bond and interest market

内容: Co., Ltd. Investors’ appropriate arrangements (if Institutional investors on the national interbank bond market (except for purchasers any) Applicable trading mechanism Whether there is the risk of termination of listing (if any) and countermeasures Bonds overdue but not yet repaid □ Applicable √ N/A No prohibited by laws and regulations of China) Public trading

内容: 2. Trigger and implementation of the issuer or investor option provisions or investor protection provisions

内容: Name of bond project Phase I ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase I ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase I ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase I ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Beijing Tian Yuan (Shenzhen) Law Firm 3401, Office Building of Shenzhen Stock Exchange Square, 2012 Shennan Avenue, Futian District, Shenzhen 10/F, Building 7, BDO China Shu Lun Courtyard 16, Pan Certified Public Middle Road of Accountants LLP West 4th Ring, Haidian District, 118 LI Jing and ZHEN Zhijie ZHU Jiandi 010-88210608 None TAN Qing 0755-82550700 Shanghai Pudong Development Bank Co., Ltd. No. 12, Zhongshan Dongyi Road, Shanghai None ZHENG Yang 021-61616388 China Merchants Bank Co., Ltd. China Merchants Bank Building, No. 7088 Houhai Avenue, Shenzhen None MIAO Jianmin 0755-88026159 Name of intermediary Name of accountants signing this report Contact person of Intermediary

内容: Co., Ltd. Phase I ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase I ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase I ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase II ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase II ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase II ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase II ultra-short-term financing bonds in 2021 of Luxshare Beijing Tian Yuan (Shenzhen) Law Firm China CITIC Bank Co., Ltd. Bank of Shanghai Co., Ltd. Beijing Financial Assets Exchange Co., Ltd. Interbank Market Ltd. Golden Credit Rating International Co., Ltd.

内容: Beijing 1101, 1102 and 1103 Units, 11/F, South Block, Building 1, Chaowai West Street, Chaoyang District, Beijing 33-34/F, Oriental International XIE Zhong 021-63326662 Zhongshan South Road, Shanghai Clearing House Co., Financial Plaza, 318 None None CUI Lei 010-62299850

内容: No. B17, Financial Street, Xicheng District, Beijing None GUO Bing 010-57896722

内容: 168 Yincheng Middle Road, Shanghai None JIN Yu 021-68476774

内容: Building 1, Courtyard 10, Guanghua Road, Chaoyang District, Beijing 3401, Office Building of Shenzhen Stock Exchange Square, 2012 Shennan Avenue, Futian District, Shenzhen BDO China Shu Lun Pan Certified Public Accountants LLP 10/F, Building 7, Courtyard 16, Middle Road of West 4th Ring, LI Jing and ZHEN Zhijie ZHU Jiandi 010-88210608 None TAN Qing 0755-82550700 None LI Qingping 010-66635909

内容: Precision Industry Co., Ltd. Phase II ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase II ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase II ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase III ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase III ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase III ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase III ultra-short-term financing bonds in Golden Credit Co., Ltd. BDO China Shu Lun Pan Certified Public Accountants LLP Beijing Tian Yuan (Shenzhen) Law Firm China Merchants Bank Co., Ltd. Beijing Financial Assets Exchange Co., Ltd. Interbank Market Ltd. Golden Credit Rating International Co., Ltd.

内容: Haidian District, Beijing 1101, 1102 and 1103 Units, 11/F, South Block, Building 1, Chaowai West Street, Chaoyang District, Beijing 33-34/F, Oriental International XIE Zhong 021-63326662 Zhongshan South Road, Shanghai Clearing House Co., Financial Plaza, 318 None None CUI Lei 010-62299850

内容: China Merchants Bank Building, No. 7088 Houhai Avenue, Shenzhen None MIAO Jianmin 0755-88026159

内容: 3401, Office Building of Shenzhen Stock Exchange Square, 2012 Shennan Avenue, Futian District, Shenzhen 10/F, Building 7, Courtyard 16, Middle Road of West 4th Ring, Haidian District, Beijing 1101, 1102 and 1103 None CUI Lei 010-62299850 Block, Building 1, LI Jing and ZHEN Zhijie ZHU Jiandi 010-88210608 None TAN Qing 0755-82550700

内容: 2021 of Luxshare Precision Industry Co., Ltd. Phase III ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase III ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase IV ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase IV ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase IV ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase IV ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase IV ultra-short-term Golden Credit BDO China Shu Lun Pan Certified Public Accountants LLP Beijing Tian Yuan (Shenzhen) Law Firm Bank of Shanghai Co., Ltd. Huaxia Bank Co., Ltd. Beijing Financial Assets Exchange Co., Ltd. Interbank Market Ltd.

内容: Chaowai West Street, Chaoyang District, Beijing 33-34/F, Oriental International XIE Zhong 021-63326662 Zhongshan South Road, Shanghai Clearing House Co., Financial Plaza, 318 None

内容: 22 Jianguomennei Street, Dongcheng District, Beijing None LI Minji 010-85237515

内容: 3401, Office Building of Shenzhen Stock Exchange Square, 2012 Shennan Avenue, Futian District, Shenzhen 10/F, Building 7, Courtyard 16, Middle Road of West 4th Ring, Haidian District, Beijing 1101, 1102 and 1103 None CUI Lei 010-62299850 LI Jing and ZHEN Zhijie ZHU Jiandi 010-88210608 None TAN Qing 0755-82550700

内容: financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase IV ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase IV ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase V ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase V ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase V ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase V ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase V

内容: Block, Building 1, Chaowai West Street, Chaoyang District, Beijing 33-34/F, Oriental

内容: International XIE Zhong 021-63326662 Zhongshan South Road, Shanghai

内容: Clearing House Co., Financial Plaza, 318 None

内容: Beijing Financial Assets Exchange Co., Ltd.

内容: No. B17, Financial Street, Xicheng District, Beijing None LI Minji 010-85237515

内容: 218 Haihe East China Bohai Bank Co., Ltd. Road, Hedong District, Tianjin, China None LI Fu’an 022-58563383

内容: 3401, Office Building of Beijing Tian Yuan (Shenzhen) Law Firm Shenzhen Stock Exchange Square, 2012 Shennan Avenue, Futian District, Shenzhen 10/F, Building 7, BDO China Shu Lun Pan Certified Public Accountants LLP Courtyard 16, Middle Road of West 4th Ring, Haidian District, Beijing 1101, 1102 and 1103 Golden Credit Rating International Co., Ltd. Units, 11/F, South Block, Building 1, Chaowai West Street, Chaoyang District, Beijing Interbank Market 33-34/F, Oriental None XIE Zhong 021-63326662 None CUI Lei 010-62299850 LI Jing and ZHEN Zhijie ZHU Jiandi 010-88210608 None TAN Qing 0755-82550700

内容: ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase V ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase VI ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase VI ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase VI ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase VI ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase VI ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd.

内容: Clearing House Co., International Ltd. Financial Plaza, 318 Zhongshan South Road, Shanghai

内容: 218 Haihe East China Bohai Bank Co., Ltd. Road, Hedong District, Tianjin, China None LI Fuan 022-58563383

内容: 3401, Office Building of Beijing Tian Yuan (Shenzhen) Law Firm Shenzhen Stock Exchange Square, 2012 Shennan Avenue, Futian District, Shenzhen 10/F, Building 7, BDO China Shu Lun Pan Certified Public Accountants LLP Courtyard 16, Middle Road of West 4th Ring, Haidian District, Beijing 1101, 1102 and 1103 Golden Credit Rating International Co., Ltd. Units, 11/F, South Block, Building 1, Chaowai West Street, Chaoyang District, Beijing 33-34/F, Oriental Interbank Market Ltd. International XIE Zhong 021-63326662 Zhongshan South Road, Shanghai Clearing House Co., Financial Plaza, 318 None None CUI Lei 010-62299850 LI Jing and ZHEN Zhijie ZHU Jiandi 010-88210608 None TAN Qing 0755-82550700

内容: Phase VI ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Did the above-mentioned intermediaries change during the reporting period? □ Yes √ No Beijing Financial Assets Exchange Co., Ltd. No. B17, Financial Street, Xicheng District, Beijing None LI Minji 010-85237515

内容: In RMB Rectifications of Comply with the Operation of Name of bond project Total proceeds Used amount Unused amount special account for proceeds (if any) use of the proceeds in violation of laws and regulations (if any) Phase I ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase II ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase III ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase IV ultra-short-term financing bonds 800,000,000.00 800,000,000.00 0.00 Normal N/A Yes 500,000,000.00 500,000,000.00 0.00 Normal N/A Yes 900,000,000.00 900,000,000.00 0.00 Normal N/A Yes 800,000,000.00 800,000,000.00 0.00 Normal N/A Yes usage, use plan and other agreements as promised in the prospectus?

内容: in 2021 of Luxshare Precision Industry Co., Ltd. Phase V ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Phase VI ultra-short-term financing bonds in 2021 of Luxshare Precision Industry Co., Ltd. Use of proceeds in the construction projects □ Applicable √ N/A Change by the Company of the usage of the above-mentioned proceeds during the reporting period □ Applicable √ N/A 400,000,000.00 400,000,000.00 0.00 Normal N/A Yes 400,000,000.00 400,000,000.00 0.00 Normal N/A Yes

内容: 5. Adjustment of credit rating results during the reporting period

内容: 6. Implementation and changes of guarantees, debt repayment plans and other debt repayment security measures during the reporting period and their effects on bond investors

内容: 1. Historic adjustment of conversion price

内容: 1. The original conversion price of convertible bonds of the Company was RMB58.48 per share. 2. The conversion price was adjusted from RMB58.48 per share to RMB58.44 per share, which became effective on January 13, 2021, because 4,304,604 shares were added arising from exercise by grantees under 2018 stock option incentive plan and 445,471 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan of the Company. 3. The conversion price was adjusted from RMB58.44 per share to RMB58.38 per share, which became effective on February

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 24, 2021, because 5,459,122 shares were added arising from exercise by grantees under 2018 stock option incentive plan and 3,767,011 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan of the Company. 4. The conversion price was adjusted from RMB58.38 per share to RMB58.36 per share, which became effective on March 11, 2021, because 2,649,238 shares were added arising from exercise by grantees under 2018 stock option incentive plan and 967,132 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan of the Company. 5. The conversion price was adjusted from RMB58.36 per share to RMB58.25 per share, which become effective on July 8, 2021 because the Company implemented the annual equity distribution in 2020, and distributed RMB1.099999 in cash per 10 shares to all shareholders based on the Company’s existing total share capital of 7,035,428,828 shares. 6. The conversion price was adjusted from RMB58.25 per share to RMB58.20 per share, which became effective on July 22, 2021, because 1,032,246 shares were added arising from exercise by grantees under 2018 stock option incentive plan and 7,360,758 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan of the Company. 7. The conversion price was adjusted from RMB58.20 per share to RMB58.18 per share, which became effective on September 6, 2021, because 374,655 shares were added arising from exercise by grantees under 2018 stock option incentive plan and 3,417,190 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan and 16,075 reserved shares were exercised by grantees under 2019 stock option incentive plan of the Company. 8. The conversion price was adjusted from RMB58.18 per share to RMB58.16 per share, which became effective on November 10, 2021, because 34,828 shares were added arising from exercise by grantees under 2018 stock option incentive plan and 2,501,419 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan and 32,328 reserved shares were exercised by grantees under 2019 stock option incentive plan of the Company. 9. The conversion price was adjusted from RMB58.16 per share to RMB58.05 per share, which became effective on December 29, 2021, because 14,413,326 shares were added arising from exercise by grantees under 2018 stock option incentive plan and 1,112,879 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan and 41,598 reserved shares were exercised by grantees under 2019 stock option incentive plan of the Company. 10. The conversion price was adjusted from RMB58.05 per share to RMB58.01 per share, which became effective on December 31, 2021, because 5,184,144 shares were added arising from exercise by grantees under 2018 stock option incentive plan and 365,642 shares were added arising from exercise by grantees in initial grant under 2019 stock option incentive plan of the Company. 11. As of the end of the reporting period, the conversion price of convertible bonds of the Company was RMB58.01 per share.

内容: 2. Accumulative conversion of convertible bonds into shares

内容: √ Applicable □ N/A Proportion of accumulative Amount of Convertible bond abbreviation Beginning and ending dates Total issued convertible bonds (piece) Total issue amount accumulative converted shares (RMB) Number of accumulative converted shares (share) converted share to the total shares Company before conversion Convertible bonds of Luxshare May 10, 2021 30,000,000 3,000,000,00 0.00 2,999,481,30 0.00 Amount of unconverted Proportion of amount of unconverted bonds to the total issued amount

内容: 3. Top 10 holders of convertible corporate bonds

内容: Unit: Share Number of Name of holder of convertible corporate bonds Nature of holder of convertible corporate bonds convertible corporate bonds held at the end of the reporting period China Construction Bank Corporation 1 Zhong Ou New Blue Chip Flexible Allocation Hybrid Securities Investment Fund ICBC Credit Suisse Tianfeng 2 Convertible Bond Fixed Income Pension Product - Bank of China Limited 3 Hua Chuang Securities Co., Ltd. Fuguo Fuyi Enterprising Fixed Income 4 Pension Product - Industrial and Commercial Bank of China Limited 5 UBS AG Foreign corporation Stated owned corporation Stated owned corporation 667,423 84,267,493.13 2.23% Other 745,035 94,066,629.03 2.48% Stated owned corporation 1,129,630 142,624,824.54 3.77% Other 1,374,891 173,590,987.88 4.58% Other 1,521,569 192,110,258.80 5.07% Amount of Percentage of

内容: convertible corporate convertible corporate bonds held at the end bonds held at the end of the reporting period (RMB) of the reporting period

内容: China Galaxy Securities Co., Ltd. China Everbright Bank Co., Ltd.－

内容: Bosera Enhanced Convertible Bonds-type Securities Investment Fund Dacheng Fund - Postal Saving Bank -

内容: Dacheng Fund - Postal Savings I Collective Asset Management Plan ICBC Credit Suisse Tianyi Hybrid

内容: Pension Product - Industrial and Commercial Bank of China Limited

内容: 4. Significant changes in the profitability, assets and credit status of the guarantors

内容: 5. The Company’s liabilities, changes in credit at the end of the reporting period and cash arrangements for debt repayment in future years

内容: According to the Credit Rating Report issued by China Lianhe Credit Rating Co., Ltd. on May 20, 2021, the long-term credit rating of the Company as the entity is AA+ and the credit rating of the convertible bonds of the Company is AA+. There is no significant change in the Company’s liabilities and credit. For main accounting data and financial indicators, please see the “VIII Main Accounting Date and Financial Indicators in the Past Two Years” under Section IX of this report.

内容: V. The loss in the scope of consolidated statements of the Company during the reporting period exceeded 10% of the net assets at the end of previous reporting period

内容: VI. Overdue interest-bearing debts other than bonds at the end of the reporting period

内容: VII. Was there violations of rules and regulations during the reporting period?

内容: VIII. Main accounting data and financial indicators of the Company for most recent two years as of the end of the reporting period

内容: In RMB0’000 Item Current ratio Equity-debt ratio Quick ratio 2021 Net profit, excluding non-recurring profit and loss EBITDA - total debt ratio Interest coverage ratio Cash interest coverage ratio EBITDA-to-interest coverage ratio Rate of loans due and repaid Rate of interest due and paid 601,559.72 59.02% 13.41 14.59 21.47 100% 100% December 31, 2021 1.1154 62.03% 0.793 2020 608,890.19 87.03% 21.62 22.12 27.74 100% 100% December 31, 2020 1.2918 55.86% 0.8986 Y/Y% Change -1.20% -28.01% -37.97% -34.04% -22.60% Y/Y% Change -13.66% 6.17% -11.75%

内容: Audit opinion Signing date of audit report Auditor Auditor report document number Name of certified public accountants Standard Unqualified Opinion April 27, 2022 BDO China Shu Lun Pan Certified Public Accountants LLP Xin Kuai Shi Bao Zi [2022] No. ZB10640 LI Jing and WEI Gang

内容: Auditor’s Report I. Audit opinion We have audited the financial statements of Luxshare Precision Industry Co., Ltd. (“Luxshare Precision”), which comprise the consolidated and parent company’s balance sheets as at December 31, 2021, and the consolidated and parent company’s income statements, the consolidated and parent company’s statements of cash flows and the consolidated and parent company’s statements of changes in owners’ equity for the year then ended, and the notes to the financial statements. In our opinion, the accompanying financial statements are prepared in all material respects in accordance with the Accounting Standards for Business Enterprises and fairly present the consolidated and parent company’s financial position as of December 31, 2021, and the consolidated and parent company’s operating results and cash flows for the year then ended. II. Basis for opinion We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. 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 Luxshare Precision with the Code of Ethics for Chinese Certified Public Accountants, and we 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 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. Key audit matters identified in our audit are summarized as below: Key audit matters How we addressed the matter in our audit (I) Revenue recognition 1. Understand, evaluate and test the design of the For details of the accounting policy for and analysis on revenue recognition, please see the key internal controls of the management related to accounting policies described in the Item (26) under the revenue recognition and the operational effectiveness Note “III. Significant accounting policies and of those controls; 2. Sample the product sales revenue to make test accounting estimates” and the Item (45) under the “V. Notes to consolidated financial statements” to the thereof according to different regions and customers; check supporting documents related to revenue financial statements. In 2021, Luxshare Precision’s operating income recognition; 3. Implement the analytical procedures on income presented in its consolidated financial statements amounted to RMB153,946,097,800. Luxshare Precision and gross profit and determine whether there are has a large number of customers at home and abroad. abnormal fluctuations in the amount of revenue for the Under different delivery methods, the Company current period;

内容: recognizes revenue upon the transfer of control of a related product to a customer. If a customer is also the supplier of some raw materials, the Company recognizes the purchase of raw materials and sales of products respectively based on the transfer of inventory risks and rewards, product liability, credit risk bearers and business nature, that is, the sales revenue is recognized based on the gross amount. The revenue is one of the Company’s key performance indicators and the main source of the Company’s profits, so we identify the revenue from product sales as the key audit matter based on the importance of the accounting policy for revenue recognition and the amount involved. (II) Provision for decline in value of inventories Please see the accounting policies described in the Item (11) under the Note “III. Significant accounting policies and accounting estimates” and the Item (7) under the Note “V. Notes to consolidated financial statements” to the financial statements. As at December 31, 2021, Luxshare Precision’s inventories and provision for decline in value of inventories presented in its consolidated financial statements amounted to RMB21,255,722,500.00 and RMB354,966,700.00 respectively. Inventories of the Company are stated at the lower of cost or net realizable value. For finished products, their net realizable value is determined at the estimated selling price of these inventories less the estimated costs necessary to make the sale and relevant taxes; for the inventories that need to be processed, in the ordinary production and operation process, their net realizable value is determined at the estimated selling price of finished products less the estimated costs of completion and the estimated costs necessary to make the sale and relevant taxes. The determination of the net realizable value of inventories involves the management’s use of significant accounting estimates and judgments, and the provision for decline in value of inventories is of significance to the consolidated financial statements, so we identify the provision for decline in value of inventories as the key audit matter.

内容: 4. Understand the modes of cooperation between the Company and customers and suppliers, and evaluate the product liability share and the transfer of control; 5. Evaluate the accuracy and completeness of revenue in conjunction with the confirmation procedures for receivables & payables and inventories; and 6. Analyze the post-period recovery of accounts receivable.

内容: 1. Understand, evaluate and test the design of the key internal controls of the management related to the provision for decline in value of inventories and the operational effectiveness of those controls; 2. Obtain the Company’s calculation sheet of the provision for decline in value of inventories, review the net realizable value of inventories and the provision for decline in value of inventories, and evaluate whether the judgment made by the management in determining the net realizable value of inventories is reasonable; 3. Check the quantity and conditions of inventories, focus on inspecting the long-term inventories, and analyze the adequacy of the provision for decline in value of inventories if any indication exists that such inventories may be impaired, in conjunction with roll-forward procedures; and 4. Check the current changes of the provision for decline in value of inventories made in previous years and analyze the rationality of the changes in the provision for decline in value of inventories.

内容: IV. Other information The management of Luxshare Precision (“management”) is responsible for other information. Other information comprises the information included in the 2021 Annual Report of Luxshare Precision, but does not include 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 management and those charged with governance for the financial statements The management is responsible for the preparation and fair presentation of the financial statements in accordance with Accounting Standards for Business Enterprises, and designing, implementing and maintaining internal control that is necessary to enable the financial statements that are free from material misstatement, whether due to fraud or error.

内容: In preparing the financial statements, the management is responsible for assessing Luxshare Precision’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 management either intends to liquidate Luxshare Precision or to cease operations, or have no realistic alternative but to do so. Those charged with governance of Luxshare Precision (hereinafter referred to as “those charged with governance”) are responsible for overseeing Luxshare Precision’s financial reporting process. VI. Auditor’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 China Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with China Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: (1) 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 that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; (2) 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 to express opinions on the effectiveness of internal control; (3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management; (4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting, and meanwhile, based on the audit evidence obtained, on whether a material uncertainty exists related to events or conditions that may cast significant doubt on Luxshare Precision’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. If such disclosures are inadequate, we are required to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause Luxshare Precision to cease to continue as a going concern; (5) Evaluate the overall presentation (including disclosure), 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; and (6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within Luxshare Precision to express an opinion on the consolidated 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 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.

内容: Statements in notes to the financial statements are dominated in RMB.

内容: Prepared by: Luxshare Precision Industry Co., Ltd. December 31, 2021 In RMB Item Current assets: Cash and bank balances Balances with clearing agencies Placements with banks and other financial institutions Held-for-trading financial assets Derivative financial assets Notes receivable Accounts receivable Receivable financing Prepayments Premiums receivable Amounts receivable under reinsurance contracts Reinsurer’s share of insurance contract reserves Other receivables Including: Interest receivable Dividends receivable Financial assets purchased under resale agreements Inventories Contract assets Held-for-sale assets Non-current assets due within one year Other current assets Total current assets Non-current assets: Loans and advances to customers 2,161,055,820.73 72,309,043,621.73 1,804,485,645.49 43,396,046,923.44 20,900,755,733.15 13,211,009,381.15 598,456,702.88 407,990,780.79 406,016,492.61 183,886,937.70 307,836,634.64 31,623,185,946.25 261,208,601.50 13,839,155,340.47 2,107,118,105.04 3,160,064,470.41 14,204,618,186.43 10,528,245,765.93 December 31, 2021 December 31, 2020

内容: Debt investments Other debt investments Long-term receivables Long-term equity investment Other investments in equity instruments Other non-current financial assets Investment properties Fixed assets Construction in progress Bearer biological assets Oil and gas assets Right-of-use assets Intangible assets Development expenditure Goodwill Long-term prepaid expenses Deferred tax assets Other non-current assets Total non-current assets Total assets Current liabilities: Short-term borrowings Loans from the central bank Taking from banks and other financial institutions Held-for-trading financial liabilities Derivative financial liabilities Notes payable Accounts payable Receipts in advance Contract liabilities Financial assets sold under repurchase agreements

内容: Customer deposits and deposits from banks and other financial institutions Funds from securities trading agency Funds from underwriting securities agency Employee benefits payable Taxes payable Other payables Including: Interest payable Dividends payable Fees and commissions payable Amounts payable under reinsurance contracts Held-for-sale liabilities Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: Insurance contract reserves Long-term borrowings Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities Long-term payables Long-term employee benefits payable Provisions Deferred income Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 923,738.96 538,556,944.18 1,272,092,467.86 1,207,763.79 9,958,755,591.47 74,789,454,618.31 1,360,598.63 425,345,982.64 966,092,212.95 150,019,923.33 5,513,441,205.94 39,106,153,689.68 315,093,483.55 5,025,096,193.09 2,805,785,000.04 1,495,199,238.41 2,475,423,249.98 270,079,590.16 3,623,423,072.87 64,830,699,026.84 278,527,714.63 623,257,555.89 33,592,712,483.74 2,099,916,381.79 616,039,596.28 382,391,106.17 1,397,632,139.23 237,421,491.63 146,162,097.14

内容: Owners’ equity: Share capital Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve Less: Treasury shares Other comprehensive income Special reserve Surplus reserve General risk reserve Unappropriated profit Total owners’ equity attributable to equity holders of the parent company Minority interests Total owners’ equity Total liabilities and owners’ equity 24,040,637,144.00 35,288,554,748.72 10,494,088,800.85 45,782,643,549.57 120,572,098,167.88 17,996,149,257.73 28,101,816,234.56 2,804,783,627.51 30,906,599,862.07 70,012,753,551.75 -35,801,471.29 1,018,784.75 985,161,506.61 733,067,797.73 -44,717,803.06 2,719,695,281.67 1,890,099,569.60 7,050,485,477.00 527,358,025.98 6,999,768,186.00 527,449,226.56

内容: Legal representative: WANG Laichun Chief financial officer: WU Tiansong

内容: Head of accounting department: CHEN Huiyong

内容: In RMB Item Current assets: Cash and bank balances Held-for-trading financial assets Derivative financial assets Notes receivable Accounts receivable Receivable financing Prepayments Other receivables Including: Interest receivable 475,784,600.82 635,052,127.84 295,993,095.73 554,707,729.13 162,983,735.09 2,901,625,168.21 147,912,632.85 6,923,152,599.31 999,340,773.61 597,571,722.08 1,890,655,455.45 2,238,600,282.87 December 31, 2021 December 31, 2020

内容: Dividends receivable Inventories Contract assets Held-for-sale assets Non-current assets due within one year Other current assets Total current assets Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investment Other investments in equity instruments Other non-current financial assets Investment properties Fixed assets Construction in progress Bearer biological assets Oil and gas assets Right-of-use assets Intangible assets Development expenditure Goodwill Long-term prepaid expenses Deferred tax assets Other non-current assets Total non-current assets Total assets Current liabilities: Short-term borrowings Held-for-trading financial liabilities Derivative financial liabilities

内容: Notes payable Accounts payable Receipts in advance Contract liabilities Employee benefits payable Taxes payable Other payables Including: Interest payable Dividends payable Held-for-sale liabilities Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: Long-term borrowings Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities Long-term payables Long-term employee benefits payable Provisions Deferred income Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Owners’ equity: Share capital Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve

内容: In RMB Item I. Total operating income Including: Operating income Interest income Premiums earned Fee and commission income II. Total operating costs Including: Operating costs Interest expenses Fee and commission expenses Surrenders Claims and policyholder benefits (net of mounts recoverable from reinsurers) Changes in insurance contract reserves (net of reinsurers’ share) Insurance policyholder dividends Expenses for reinsurance accepted Taxes and levies Selling expenses General expenses R&D expenses 193,812,057.14 789,908,163.80 3,741,908,783.50 6,642,300,402.74 250,775,738.81 477,047,875.58 2,463,953,208.63 5,744,805,136.33 138 146,970,931,574.11 135,048,336,292.88 85,611,417,151.82 75,770,007,049.58 2021 153,946,097,790.40 153,946,097,790.40 2020 92,501,259,211.54 92,501,259,211.54

内容: Financial expenses Including: Interest expenses Interest income Add: Other income Investment income (Loss is indicated by “-”) Including: Income from investments in associates and joint ventures Income from derecognition of financial assets measured at amortized cost Foreign exchange gains (Loss is indicated by “-”) Net exposure hedging income (Loss is indicated by “-”) Income from changes in fair value (Loss is indicated by “-”) Impairment losses of credit (Loss is indicated by “-”) Impairment losses of assets (Loss is indicated by “-”) Income from disposal of assets (Loss is indicated by “-”) III. Operating profit (Loss is indicated by “-”) Add: Non-operating income Less: Non-operating expenses IV. Total profit (Total losses are indicated by “-”) Less: Income tax expenses V. Net profit (Net loss is indicated by “-”) (I) Categorized by the nature of continuing operation 1. Net profit from continuing operations (Net loss is indicated by “-”)

内容: 2. Net profit from discontinued operations (Net loss is indicated by “-”) (II) Categorized by ownership 1. Net profit attributable to shareholders of the parent company 2. Net profit attributable to non-controlling interests VI. Other comprehensive income, net of tax Other comprehensive income attributable to owners of the parent company, net of tax (I) Other comprehensive income that cannot be subsequently reclassified to profit or loss 1. Changes from re-measurement of defined benefit plans 2. Other comprehensive income that cannot be reclassified to profit or loss under the equity method 3. Changes in fair value of other investments in equity instruments 4. Changes in fair value of enterprises’ own credit risks 5. Others (II) Other comprehensive income that will be reclassified to profit or loss 1. Other comprehensive income that will be reclassified to profit or loss under the equity method 2. Changes in fair value of other debt investments 3. Amounts of financial assets reclassified into other comprehensive income 4. Provision for credit impairment of other debt investments 5. Reserve for cash flow hedges 6. Translation differences of -72,789,586.03 -165,495,934.99 140 -72,789,586.03 -165,495,934.99 81,705,917.80 -44,824,020.81 81,705,917.80 -44,824,020.81 8,916,331.77 -210,319,955.80 7,070,520,386.57 7,225,462,752.58

内容: financial statements denominated in foreign currencies 7. Others Other comprehensive income attributable to minority interests, net of tax VII. Total comprehensive income Total comprehensive income attributable to owners of the parent company Total comprehensive income attributable to minority interests VIII. Earnings per share: (I) Basic earnings per share (II) Diluted earnings per share 1.01 0.99 1.03 1.01 717,487,927.34 261,505,363.18 7,079,436,718.34 7,015,142,796.78 7,796,924,645.68 7,276,648,159.96 -32,601,992.28 -4,046,619.66

内容: For any business combination involving enterprises under common control for the reporting period, the net profits of the absorbed party prior to the combination are RMB in the reporting period, and were RMB in prior period. Legal representative: WANG Laichun Chief financial officer: WU Tiansong Head of accounting department: CHEN Huiyong

内容: 4. Income statement of the parent company

内容: investments in associates and joint ventures Income from derecognition of financial assets measured at amortized cost (Loss is indicated by “-”) Net exposure hedging income (Loss is indicated by “-”) Income from changes in fair value (Loss is indicated by “-”) Impairment losses of credit (Loss is indicated by “-”) Impairment losses of assets (Loss is indicated by “-”) Income from disposal of assets (Loss is indicated by “-”) II. Operating profit (Loss is indicated by “-”) Add: Non-operating income Less: Non-operating expenses III. Total profit (Total losses are indicated by “-”) Less: Income tax expenses IV. Net profit (Net loss is indicated by “-”) (I) Net profit from continuing operation (Net loss is indicated by “-”) (II) Net profit from discontinued operations (Net loss is indicated by “-”) V. Other comprehensive income, net of tax (I) Other comprehensive income that cannot be subsequently reclassified to profit or loss 1. Changes from re-measurement of defined benefit plans 2. Other comprehensive income that cannot be reclassified to profit or loss under the equity method 82,216,629.66 -44,873,885.23 82,216,629.66 -44,873,885.23 2,187,784.65 35,468,629.87 -41,003,477.92

内容: 3. Changes in fair value of other investments in equity instruments 4. Changes in fair value of enterprises’ own credit risks 5. Others (II) Other comprehensive income that will be reclassified to profit or loss 1. Other comprehensive income that will be reclassified to profit or loss under the equity method 2. Changes in fair value of other debt investments 3. Amounts of financial assets reclassified into other comprehensive income 4. Provision for credit impairment of other debt investments 5. Reserve for cash flow hedges 6. Translation differences of financial statements denominated in foreign currencies 7. Others VI. Total comprehensive income VII. Earnings per share: (I) Basic earnings per share (II) Diluted earnings per share

内容: In RMB Item I. Cash flows from operating activities: Cash receipts from the sales of goods and the rendering of services Net increase in customer deposits and deposits from banks and other financial institutions Net increase in loans from the 143,070,164,356.03 97,065,870,437.67 2021 2020

内容: central bank Net increase in taking from other financial institutions Cash payments for claims and policyholders’ benefits under direct insurance contracts Net cash receipts from reinsurance business Net cash receipts from policyholders’ deposits and investment contract liabilities Cash receipts from interest, fees and commissions Net increase in taking from banks and other financial institutions Net increase in financial assets sold under repurchase arrangements Net cash received from securities trading agency Receipts of tax refunds Other cash receipts relating to operating activities Sub-total of cash inflows from operating activities Cash payments for goods purchased and services received Net increase in loans and advances to customers Net increase in balance with the central bank and due from banks and other financial institutions Cash payments for claims and policyholders’ benefits under direct insurance contracts Net increase in placements with banks and other financial institutions Cash payments for interest, fees and commissions Cash payments for insurance 144 7,258,087,295.46 2,646,521,521.99 3,100,093,905.89 1,178,580,038.87

内容: policyholder dividends Cash payments to and on behalf of employees Payments of various types of taxes Other cash payments relating to operating activities Sub-total of cash outflows from operating activities Net cash flow from operating activities II. Cash flows from investing activities: Cash receipts from disposals and recovery of investments Cash receipts from investment income Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets Net cash receipts from disposals of subsidiaries and other business entities Other cash receipts relating to investing activities Sub-total of cash inflows from investing activities Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets Cash payments to acquire investments Net increase in pledged loans receivables Net cash payments for acquisitions of subsidiaries and other business entities Other cash payments relating to investing activities Sub-total of cash outflows from investing activities Net cash flow from investing activities 403,138,825.89 17,100,080.22 83,897,533.75 54,495,943,096.22 57,696,197,909.00 12,567,222,230.86 7,502,140,356.20 16,418,213.71 62,681,623.24 343,357,620.39 105,209,975.47 53,300,796,496.89 55,479,505,473.33 16,468,591,642.75 1,635,898,950.98 2,391,005,655.40 11,976,189,826.48 1,462,211,616.65 2,124,441,374.01

内容: III. Cash flows from financing activities: Cash receipts from capital contributions Including: Cash receipts from capital contributions from minority owners of subsidiaries Cash receipts from borrowings Other cash receipts relating to financing activities Sub-total of cash inflows from financing activities Cash repayments of borrowings Cash payments for distribution of dividends or profits or settlement of interest expenses Including: Payments for distribution of dividends or profits to minority owners of subsidiaries Other cash payments relating to financing activities Sub-total of cash outflows from financing activities Net cash flow from financing activities IV. Effect of foreign exchange rate changes on cash and cash equivalents V. Net increase in cash and cash equivalents Add: Opening balance of cash and cash equivalents VI. Closing balance of cash and cash equivalents 3,461,522,325.75 14,511,270.50 12,150,000.00 1,399,755,112.12 1,065,757,282.54 35,452,570,746.25 4,705,930,595.98 25,747,304,566.98 4,485,600,000.00 1,800,900,000.00 1,091,126,000.00 2,387,352,799.19 1,610,278,326.76

内容: 6. Statement of cash flows of the parent company

内容: In RMB Item I. Cash flows from operating activities: Cash receipts from the sales of 14,258,035,135.82 7,317,370,785.47 146 2021 2020

内容: goods and the rendering of services Receipts of tax refunds Other cash receipts relating to operating activities Sub-total of cash inflows from operating activities Cash payments for goods purchased and services received Cash payments to and on behalf of employees Payments of various types of taxes Other cash payments relating to operating activities Sub-total of cash outflows from operating activities Net cash flow from operating activities II. Cash flows from investing activities: Cash receipts from disposals and recovery of investments Cash receipts from investment income Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets Net cash receipts from disposals of subsidiaries and other business entities Other cash receipts relating to investing activities Sub-total of cash inflows from investing activities Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets Cash payments to acquire investments Net cash payments for acquisitions of subsidiaries and other business entities 18,393,225,472.38 19,459,676,016.32 146,496,738.96 125,735,695.16 13,890,575,214.83 17,436,728,799.26 63,942,000.00 7,640,613.84 27,330,856.05 11,776,296,929.96 13,929,048,580.41 295,360,510.43 10,782,694,066.14 138,658,293.85 1,643,814,995.33

内容: Other cash payments relating to investing activities Sub-total of cash outflows from investing activities Net cash flow from investing activities III. Cash flows from financing activities: Cash receipts from capital contributions Cash receipts from borrowings Other cash receipts relating to financing activities Sub-total of cash inflows from financing activities Cash repayments of borrowings Cash payments for distribution of dividends or profits or settlement of interest expenses Other cash payments relating to financing activities Sub-total of cash outflows from financing activities Net cash flow from financing activities IV. Effect of foreign exchange rate changes on cash and cash equivalents V. Net increase in cash and cash equivalents Add: Opening balance of cash and cash equivalents VI. Closing balance of cash and cash equivalents 3,384,213,580.92 11,364,675.69 958,024,940.64 662,016,221.81 586,452,799.19 4,416,265,430.62 4,471,016,039.08 527,162,579.34 1,543,324,080.00 4,485,600,000.00 18,539,722,211.34 -4,649,146,996.51 19,585,411,711.48 -2,148,682,912.22

内容: 7. Consolidated statement of changes in owners’ equity

内容: Current period In RMB 2021 Item Equity attributable to owners of the parent company Minori Total

内容: Other equity instruments Share capita l Prefe Perpe rred s I. Closing balance of the preceding year Add: Changes in accounting policies Correcti ons of prior period errors Business combination involving enterprises under common control Others II. Opening balance of the current year III. Changes for the year (Decrease is indicated by “-”) (I) Total comprehensive income (II) Owners’ contributions and reduction in capital 1. Ordinary 50,71 7,291 0.00 0.00 .00 50,70 829,59 5,712. 07 535,74 0.00 50,71 7,291 0.00 0.00 .00 -91,2 00.58 829,59 5,712. 07 0.00 6,999 ,768, 186.0 0 527,4 1,890, 0.00 0.00 49,22 099,56 6.56 9.60 6,999 ,768, 186.0 0 tual s 527,4 1,890, 0.00 0.00 49,22 099,56 6.56 9.60 share bond Other

内容: Other Less: compr Capital Treasu ehensi reserve ry ve e -44,71 0.00 7,803. 06 733,06 0.00 7,797. 73 17,996 0.00 ,149,2 57.73 shares incom Specia Surplu Genera l s l risk reserve reserve reserve Unapp ropriat ed profit Other Subtot al

内容: shares contributed by owners 2. Capital contribution from holders of other equity instruments 3. Share-based payment recognized in owners’ equity

内容: 1. Transfer to surplus reserve 2. Transfer to general risk reserve 3. Distributions to owners (or shareholders) 4. Others (IV) Transfers within owners’ equity 1. Capitalization of capital reserve (or share capital) 2. Capitalization of surplus reserve (or share capital) 3. Loss offset by 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

内容: surplus reserve 4. Retained earnings carried forward from changes in defined benefit plans 5. Retained earnings carried forward from other comprehensive income 6. Others (V) Special reserve 1. Transfer to special reserve in the current period 2. Amount utilized in the current period (VI) Others IV. Closing balance of the current period Prior period In RMB 2020 Equity attributable to owners of the parent company Other equity Item instruments Share capita l Prefe Perp rred etual share bond s I. Closing balance of the 5,349 ,001, s 2,654, 692,87 Other Other Less: compr Capital Treasu ehensi reserve ry ve e 165,60 2,152. 362,33 5,031. 11,764 ,987,1 20,296 1,453,0 21,749, ,618,9 84,326. 703,294 shares incom Specia Surplu Genera l s l risk reserve reserve reserve Unapp ropriat ed profit Other Subtot al Minorit y interest s 7,050 ,485, 477.0 0 527,3 2,719, 0.00 0.00 58,02 695,28 5.98 1.67 -35,80 0.00 1,471. 29 985,16 1,506. 61 24,040 0.00 ,637,1 44.00 0.00 0.00 0.00 0.00 1,018, 784.75 1,018, 784.75 1,018, 784.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,018, 784.75 0.00 0.00 0.00 0.00 1,018, 784.75 0.00 0.00 1,018, 784.75 0.00 0.00 0.00 0.00

内容: preceding year 738.0 0 Add: Changes in accounting policies Correcti ons of prior period errors Busines s combination involving enterprises under common control Others II. Opening balance of the current year III. Changes for the year (Decrease is indicated by “-”) (I) Total comprehensive income (II) Owners’ contributions and reduction in capital 1. Ordinary shares contributed by owners 2. Capital contribution from holders of other equity instruments 527,4 49,22 6.56 39,22 .00 5,349 ,001, 738.0 0 1,650 ,766, 448.0 0

内容: 3. Share-based payment recognized in owners’ equity

内容: 1. Transfer to surplus reserve 2. Transfer to general risk reserve 3. Distributions to owners (or shareholders) 4. Others 1,611 ,543, 127.0 0 1,611 ,543, 127.0 0

内容: (IV) Transfers within owners’ equity 1. Capitalization of capital reserve (or share capital) 2. Capitalization of surplus reserve (or share capital) 3. Loss offset by surplus reserve 4. Retained earnings carried forward from

内容: 8. Statement of changes in owners’ equity of the parent company

内容: Current period In RMB 2021 Other equity Item instruments Share capital Preferr Perpet ed ual Other shares bonds I. Closing balance of the preceding year Add: Changes in 6,999,7 68,186. 00 0.00 527,44 0.00 9,226.5 6 2,303,19 7,437.38 80,735,0 15.01 733,067, 797.73 5,031,6 99,596. 69 15,675,91 7,259.37 Capital reserve Less: Treasury shares Other compreh Special ensive income reserve Surplus reserve Unappr opriate d profit Other Total owners’ equity

内容: 2. Distributions to owners (or shareholders) 3. Others (IV) Transfers within owners’ equity 1. Capitalization of capital reserve (or share capital) 2. Capitalization of surplus reserve (or share capital) 3. Loss offset by surplus reserve 4. Retained earnings carried forward from changes in defined benefit plans 5. Retained earnings carried forward from other comprehensive income 6. Others (V) Special reserve 1. Transfer to special reserve in the current period 2. Amount utilized in the current period (VI) Others IV. Closing 7,050,4 0.00 0.00 527,35 3,080,14 0.00 162,951, 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

内容: balance of the current period Prior period

内容: In RMB 2020 Other equity Item instruments Share capital Preferr Perpet ed ual Other shares bonds I. Closing balance of the preceding year Add: Changes in accounting policies Correcti ons of prior period errors Others II. Opening balance of the current year III. Changes for the year (Decrease is indicated by “-”) (I) Total comprehensive income (II) Owners’ contributions and reduction in capital 1. Ordinary shares contributed by owners 39,223 ,321.0 0 0.00 527,44 0.00 9,226. 56 -22,303, 192.71 3,707,327 ,665.52 3,685,024,4 72.81 1,650, 766,44 8.00 0.00 527,44 -767,20 0.00 9,226. 0,287.9 56 3 0.00 -44,873, 885.23 0.00 370,732 2,713,195 ,766.55 ,407.88 4,450,069,6 75.83 5,349, 001,73 8.00 0.00 0.00 3,070,3 0.00 97,725. 31 0.00 125,608 ,900.24 362,335 2,318,504 ,031.18 ,188.81 0.00 11,225,847, 583.54 0.00 0.00 5,349, 001,73 8.00 3,070,3 97,725. 31 125,608 ,900.24 362,335 2,318,504 ,031.18 ,188.81 11,225,847, 583.54 Capital reserve Less: Treasur y shares Other compre hensive income Special reserve Surplus reserve Unapprop riated profit Other Total owners’ equity

内容: 2. Capital contribution from holders of other equity instruments 3. Share-based payment recognized in owners’ equity 4. Others (III) Profit distribution 1. Transfer to surplus reserve 2. Distributions to owners (or shareholders) 3. Others (IV) Transfers within owners’ equity 1. Capitalization of capital reserve (or share capital) 2. Capitalization of surplus reserve (or share capital) 3. Loss offset by surplus reserve 4. Retained earnings carried forward from changes in defined benefit plans 158 0.00 0.00 0.00 1,611,5 43,127 .00 -1,611,5 43,127. 00 0.00 1,611,5 43,127 .00 0.00 0.00 -1,611,5 0.00 43,127. 00 0.00 -22,570, 692.52 21,216,45 0.97 9,000,0 00.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 370,732 -1,015,34 ,766.55 8,708.61 370,732 -370,732, ,766.55 766.55 -644,615, 942.06 9,000,000.0 0 -644,615,94 2.06 0.00 347,403 ,580.73 347,403,58 0.73 527,44 9,226. 56 527,449,22 6.56

内容: 1. Company profile Luxshare Precision Industry Co., Ltd. (“Company” or “the Company”) is a company limited by shares established by Shenzhen Zixin Investment Co., Ltd. (“Zixin Investment”) and Luxshare Limited as founders after being approved by Shenzhen People’s Government and Shenzhen Bureau of Trade and Industry in February 2009. Company’s Uniform Social Credit Code: 91440300760482233Q. The Company was listed on Shenzhen Stock Exchange in September 2010. The Company pertains to the communication equipment industry. As of December 31, 2021, the Company issued 7,050,485,477.00 shares in total, with its registered capital amounting to RMB7,050,485,477.00. The Company’s registered office is located at 2/F, Block A, Sanyo New Industrial Zone, West Haoyi Community, Shajing Street, Bao’an District, Shenzhen, China, while its place of business is located at No.313 North Ring Road, Qingxi Town, Dongguan City, Guangdong, China. The main business activities of the Company include production and operation of connecting wires, connectors, computer peripherals, and plastic hardware products. The Company’s parent company is Luxshare Limited, and its de facto controllers are WANG Laichun and WANG Laisheng. The financial statements were approved by the Company’s board of directors on April 27, 2022 for issuance. The relevant information of subsidiaries of the Company is seen in the Note “VII. Interests in other entities”.

内容: The changes in scope of consolidation for this reporting period is seen in the Note “VI. Changes in scope of consolidation”.

内容: IV. Basis of preparation of financial statements

内容: 1. Basis of preparation The Company has prepared its financial statements in accordance with the requirements of the Accounting Standards for Business Enterprises - Basic Standard promulgated by the Ministry of Finance of the PRC, specific accounting standards, guidelines for application of accounting standards for enterprises, interpretation of accounting standards for enterprises and other relevant regulations successively promulgated (collectively, “Accounting Standards for Business Enterprises”) and the Preparation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 General Provisions on Financial Reports issued by China Securities Regulatory Commission. 2. Going concern The Company prepares its financial statements on a going concern basis. The Company has the ability to continue as a going concern within 12 months from the end of the reporting period, and detected no major events that may affect such ability.

内容: V. Important accounting policies and accounting estimates

内容: Reminders on specific accounting policies and accounting estimates: N/A

内容: 1. Statement of compliance with the Accounting Standards for Business Enterprises The financial statements prepared by the Company conform to the requirements of the Accounting Standards for Business Enterprises issued by the Ministry of Finance, and truly and completely reflect the consolidated and parent company’s financial positions as of December 31, 2020, and the consolidated and parent company’s operating results and cash flows for the year then ended. 2. Accounting period The Company’s accounting year is from January 1 to December 31 of each calendar year. 3. Operating cycle The Company’s operating cycle is 12 months. 4. Functional currency The Company uses RMB as its functional currency. The subsidiaries of the Company determine its functional currency based on the primary economic environment in which such subsidiaries operate.

内容: These financial statements are presented in RMB. 5. Accounting treatment of business combinations involving enterprises under common control and business combinations not involving enterprises under common control Business combination involving enterprises under common control: The assets and liabilities acquired by the absorbing party in a business combination (including goodwill formed through the acquisition by the ultimate controller of the absorbed party) are measured according to the carrying amount of the assets and liabilities of the absorbed party in the financial statements of ultimate controller on the combination date. The difference between the carrying amount of the net assets obtained in a business combination and the carrying amount of the consideration paid for the combination (or the aggregate face value of shares issued as consideration) is adjusted to the equity premium in the capital reserve. If the equity premium in the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. Business combination not involving enterprises under common control: The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for control of the acquiree. Where the cost of a business combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognized as goodwill; where the cost of a business combination is lower than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognized in profit or loss for the current period. The acquiree’s identifiable assets, liabilities and contingent liabilities that are acquired in the combination meeting the recognition criteria are measured at the fair value on the date of acquisition. The costs incurred directly attributable to the business combination are recognized in profit or loss for the current period when incurred; the transaction costs for issue of equity securities or debt securities are recognized in the amount initially recognized of equity securities or debt securities. 6. Method of preparation of consolidated financial statements 1. Scope of consolidation The scope of consolidated financial statements is determined on the basis of control, and includes those of the Company and all of its subsidiaries. “Control” means the power of the Company over the investee, through which the Company will enjoy variable returns by participating in the relevant activities and has the ability to use the power over the investee to affect the Company’s return amount. 2. Consolidation procedures The Company regards the entire enterprise group as an accounting entity and prepares the consolidated financial statements according to the uniformed accounting policies, reflecting the overall financial positions, operating results and cash flows of this enterprise group. The effects of other intragroup transactions (between the Company and its subsidiaries or between subsidiaries) are eliminated. Where the intragroup transactions show that relevant assets have suffered impairment losses, those losses are recognized fully. Where the accounting policies and periods adopted by all subsidiaries are not in line with those of the Company, the necessary adjustments are made to the financial statements of these subsidiaries based on the accounting policies and periods of the Company when preparing the

内容: consolidated financial statements. That portion of owner’s equities, net profits or losses and comprehensive income of subsidiaries for the period attributable to minority interests are separately presented in the consolidated balance sheet below the “owners’ equity” line item, in the consolidated income statement below the “net profit” and “total comprehensive income” as “minority interests”. When the amount of loss for the current period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders’ share of the opening balance of owners’ equity of the subsidiary, the excess is allocated against minority interests. (1) Increase in subsidiaries or businesses Where a subsidiary or business is acquired during the reporting period through a business combination involving enterprises under common control, operating results and cash flows of this subsidiary or business from the beginning of the period in which the combination takes place to the end of the reporting period are included in the consolidated financial statements. Meanwhile, the adjustments are made to the opening balances of the consolidated financial statements and the relevant items of the comparative statement, and the combined reporting entity is deemed to have existed since the time when the ultimate controller begins to exercise control. Where the Company becomes capable to exercise control over an investee under the common control due to additional investment or other reasons, for equity investments held before acquiring control of the absorbed party, the relevant gains or losses, other comprehensive income and other changes in net assets recognized during the period from the later of the date of acquisition of original equity or the date when the absorbing party and the absorbed party are under the common control until the combination date are respectively offset against opening balances of retained earnings during the comparative reporting period or profit or loss for the current period. Where a subsidiary or business is acquired during the reporting period through a business combination not involving enterprises under common control, it is included in the consolidated financial statements from the date of acquisition based on the fair value of identifiable assets, liabilities and contingent liabilities determined on the date of acquisition. Where the Company becomes capable to exercise control over an investee not under common control due to additional investment or other reasons, for the acquiree’s equity held prior to the date of acquisition, the Company remeasures the fair value of the equity on the date of acquisition, and the difference between the fair value of the equity and its carrying amount is recognized in profit or loss for the current period. Where the acquiree’s equity held prior to the date of acquisition involves other comprehensive income that can be reclassified to profit or loss and changes in other owners’ equity under equity method, such other comprehensive income and changes are transferred to the income of the period in which the date of acquisition falls. (2) Disposal of subsidiaries ① General disposal When the Company loses control over the investee due to disposal of partial equity investments or other reasons, for the remaining equity investments after disposal, the Company remeasures the remaining equity investments after disposal at the fair value on the date when the Company loses its control. The difference between the sum of the consideration from disposal of equity and the fair value of remaining equity less the sum of an original subsidiary’s share of net assets and goodwill continuously calculated from the date of acquisition or combination according to original shareholding ratio is recognized as the investment return for the period in which the control is lost. Other comprehensive income relating to the original subsidiary’s equity investments that will be reclassified to profit or loss and changes in other

内容: owners’ equity under the equity method is transferred into the investment income for the period when the control is lost. ② Disposal of subsidiaries by steps Where the subsidiary’s equity investments are disposed by steps through multiple transactions until the control is lost, and the terms and conditions of all transactions on disposal of the subsidiary’s equity investments and the economic impact thereof fall within one or more of the following circumstances, then it usually indicates that multiple transaction events belong a single package: i. these transactions are concluded simultaneously or after the influence on each other is considered; ii. these transactions as a whole can achieve a complete commercial result; iii. the occurrence of one transaction depends on that of at least one other transaction; iv. a transaction is not economical alone, but economical when considered together with other transactions. Where all transactions belong to a single package, the Company accounts for such transactions as one transaction to dispose of and lose its control over the subsidiary; however, the difference between the proceeds from each disposal before loss of control and the share owned by the Company in the net assets of the subsidiary in relation to the investment disposed of is recognized in other comprehensive income in the consolidated financial statements, which is wholly transferred to the profit or loss in the period in which the control is lost. Where all transactions do not belong to a single package, prior to the loss of control, the Company accounts for such transactions as partial disposal of a subsidiary’s equity investments in the event that the control is not lost; and when the control is lost, the Company accounts for such transactions in accordance with the general methods of disposal of subsidiaries. (3) Acquisition of a subsidiary’s minority equity The difference between the long-term equity investments newly obtained by the Company due to acquisition of minority equity and its share of the subsidiary’s net assets continuously calculated from the date of acquisition or combination according to new shareholding ratio is adjusted against the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. (4) Partial disposal of the subsidiary’s equity investments in the event that the control is not lost The difference between the proceeds from disposal and the share owned by the Company in the net assets of the subsidiary in relation to the long-term equity investment disposed of that is calculated continuously from the date of acquisition or combination is adjusted against the equity premium in the capital reserve in the consolidated balance sheet. In case the equity premium in the capital reserve is not sufficient to absorb the difference, the remaining balance is adjusted against the retained earnings. 7. Classification of joint arrangements and accounting treatment of joint operations Joint arrangements are classified into joint operations and joint ventures. Where a party to a joint arrangement enjoys relevant assets and assumes relevant liabilities of such an arrangement, this case belongs to a joint operation. The Company recognizes the following items relating to its interest in the joint operation: (1) the assets held individually by the Company, and the Company’s share of the assets held jointly; (2) the liabilities incurred individually by the Company, and the Company’s share of the liabilities incurred jointly;

内容: (3) the Company’s revenue from the sales of its share of output of the joint operation; (4) the Company’s share of revenue from the sales of assets by the joint operation; and (5) the expenses incurred individually by the Company, and the Company’s share of the expenses incurred jointly by the joint operation. The Company accounts for investments in joint ventures using the equity method and the details are seen in Note “III. (XIV) Long-term equity investments”. 8. Recognition of cash and cash equivalents Cash comprises cash on hand and deposits of the Company that can be readily withdrawn on demand. Cash equivalents comprise short-term, highly liquid investments held by the Company that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. 9. Foreign currency transactions and translation of foreign currency financial statements 1. Foreign currency transactions The foreign currency transactions are recorded by translating the amount of a foreign currency into RMB at the spot exchange rate prevailing on the 1st of each month. The balances of foreign currency monetary items are translated using the spot exchange rate at the balance sheet date. Exchange differences arising therefrom are recognized in profit or loss for the current period, except for exchange differences generated by specific-purpose borrowings in a foreign currency related to acquisition of qualifying assets, which should be accounted for according to the capitalization principles of borrowing costs. 2. Translation of financial statements denominated in foreign currencies The asset and liability items in the balance sheet are translated at the spot exchange rates at the balance sheet date. Items of owners’ equity except for “unappropriated profit” are translated at the spot exchange rates at the dates on which such items arose. Income and expenses in the income statement are translated at the exchange rates similar to the spot exchange rates at the dates of the transactions. When the Company disposes of a foreign operation, it transfers the translation differences relating to translation of the financial statements of that foreign operation from the owners’ equity to profit or loss for the current period. 10. Financial instruments When the Company becomes a party to a financial instrument contract, a financial asset, liability or equity instrument is recognized. 1. Classification of financial instruments Based on the Company’s business model for managing financial assets and the cash flow characteristics of financial assets, the financial assets are classified into on initial recognition: financial assets measured at its amortized cost, financial assets at fair value through other comprehensive income, and financial assets at fair value through profit or loss. The Company classifies financial assets that meet the following criteria at the same time and are not designated as at fair value through profit or loss as the financial assets measured at amortized cost:

内容: － the business model aims to collect contractual cash flows; and － the contractual cash flows are generated only from payment of principal and interest on the outstanding principal. The Company classifies financial assets that meet the following criteria at the same time and are not designated as at fair value through profit or loss as the financial assets (debt instruments) at fair value through other comprehensive income: － the business model aims to collect contractual cash flows and sell such financial assets; and － the contractual cash flows are generated only from payment of principal and interest on the outstanding principal. The Company irrevocably designates the non-trading equity instruments as financial assets (equity instruments) at fair value through other comprehensive income on initial recognition. Such designation is made on the basis of a single investment, and the relevant investments meet the definition of an equity instrument from the issuer’s perspective. Except for the financial assets measured at amortized cost and the financial assets at fair value through other comprehensive income, the Company classifies all of other remaining financial assets as the financial assets at fair value through profit or loss. If the accounting mismatch can be eliminated or significantly reduced on initial recognition, the Company may irrevocably designate the financial assets that should have been classified as those measured at amortized cost or those at fair value through other comprehensive income as the financial assets at fair value through profit or loss. On initial recognition, financial liabilities are classified into the following two categories: financial liabilities at fair value through profit or loss and financial liabilities measured at amortized cost. A financial liability may be designated as at fair value through profit or loss on initial measurement if one of the following conditions is met: 1 ) the designation eliminates or significantly reduces accounting mismatch. 2 ) a group of financial liabilities or a group of financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis, and information about the group is reported on that basis to the enterprise’s key management personnel according to such risk management or investment strategy set out in official written documents. 3 ) this financial liability contains embedded derivatives that need to be split separately. 2. Recognition and measurement of financial instruments (1) Financial assets measured at amortized cost The financial assets measured at amortized cost, including notes receivable, accounts receivable, other receivables, long-term receivables and debt investments, are initially measured at fair value, and the relevant transaction costs are charged to the initially recognized amount; the accounts receivable that do not contain any significant financing component or are recognized by the Company without taking into consideration the significant financing components under the contracts with a term of less than one year are initially measured at the contractual trading price. The interest calculated using the effective interest method during the holding period is recognized in the profit or loss for the current period. On recovery or disposal of a financial asset, the difference between the proceeds and the carrying amount

内容: of the financial asset is recognized in profit or loss for the current period. (2) Financial assets (debt instruments) at fair value through other comprehensive income Financial assets (debt instruments) at fair value through other comprehensive income, including receivable financing and other debt investments, are initially measured at fair value, and the relevant transaction costs are recognized in initially recognized amount. These financial assets are subsequently measured at fair value, changes in fair value other than the interest calculated using the effective interest method, impairment loss or gain and profit or loss on exchange are recognized in other comprehensive income. On derecognition, the cumulative gain or loss previously included in other comprehensive income is removed out from other comprehensive income and recognized in profit or loss for the current period. (3) Financial assets (equity instruments) at fair value through other comprehensive income Financial assets (equity instruments) at fair value through other comprehensive income, including other equity investments, are initially measured at fair value, and the relevant transaction costs are recognized in initially recognized amount. These financial assets are subsequently measured at fair value, and changes in fair value are recognized in other comprehensive income. The dividends received are recognized in profit or loss for the current period. On derecognition, the cumulative gain or loss previously included in other comprehensive income is removed out from other comprehensive income and included in retained earnings. (4) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss, including held-for-trading financial assets, derivative financial assets and other non-current financial assets, are initially measured at fair value, and the relevant transaction costs are included in profit or loss for the current period. These financial assets are subsequently measured at fair value, and changes in fair value are included in profit or loss for the current period. (5) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss, including held-for-trading financial liabilities and derivative financial liabilities, are initially measured at fair value, and the relevant transaction costs are recognized in profit or loss for the current period. These financial liabilities are subsequently measured at fair value, and changes in fair value are recognized in profit or loss for the current period. On derecognition, the difference between their carrying amount and the consideration paid is included in profit or loss for the current period. (6) Financial liabilities measured at the amortized cost The financial liabilities measured at the amortized cost, including short-term borrowings, notes payable, accounts payable, other payables, long-term borrowings, bonds payable, long-term payables, are initially measured at fair value, and the relevant transaction costs are charged to the initially recognized amount. The interest calculated using the effective interest method during the holding period is recognized in the profit or loss for the current period. On derecognition, the difference between the consideration paid and the carrying amount of these financial liabilities is recognized in profit or loss for the current period.

内容: 3. Derecognition and transfer of financial assets The Company derecognizes a financial asset when one of the following conditions is met: － the contractual right to receive cash flows from the financial assets has expired; － the financial asset has been transferred and all the risks and rewards of ownership of the financial asset are substantially transferred to the transferee; － the financial asset has been transferred, and the Company neither transferred nor retained a substantial portion of all risks and rewards incidental to the ownership of the financial asset, but did not retain control over the financial asset. When a financial asset is transferred, if the Company retains substantially all the risks and rewards of ownership of a financial asset, it does not derecognize the financial asset. When the Company determines whether a transfer of a financial asset satisfies the derecognizing criteria prescribed above, it gives weight to the substance rather than form. The Company divides a transfer of a financial asset into a transfer of the financial asset in its entirety or a transfer of part of the financial asset. For a transfer of a financial asset in its entirety that satisfies the derecognizing criteria, the difference between the following two amounts is recognized in profit or loss for the current period: (1) the carrying amount of the financial asset transferred; and (2) the sum of the consideration received from the transfer and (if the financial asset transferred is a financial asset (debt instrument) measured at fair value through other comprehensive income) any cumulative changes in fair value that was originally recognized in owners’ equity. If part of the transferred financial asset qualifies for derecognizing, the carrying amount of the transferred financial asset in its entirety is allocated between the part that continues to be recognized and the part that is derecognized, based on the relative fair values of those parts. The difference between the following two amounts is recognized in profit or loss for the current period: (1) the carrying amount allocated to the part derecognized; and (2) the sum of the consideration received for the part derecognized and (if the financial asset transferred is a financial asset (debt instrument) measured at fair value through other comprehensive income) the amount of the part derecognized corresponding to the cumulative changes in fair value that was originally recognized in owners’ equity. A financial asset that does not qualify for derecognition continues to be recognized, and the consideration received is recognized as a financial liability. 4. Derecognition of financial liabilities If the present obligations of a financial liability are discharged in part or whole, the financial liability or any part thereof is derecognized; an agreement between the Company and the creditor to replace the existing financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the existing financial liability and the recognition of a new financial liability. A substantial modification to the terms of an existing financial liability or any part thereof is accounted for as an extinguishment of the existing financial liability or any part thereof, and the financial liability with modified terms is recognized as a new financial liability at the same time.

内容: When the Company derecognizes a financial liability or any part thereof, it recognizes the difference between the carrying amount of the financial liability derecognized and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss for the current period. If the Company repurchases part of a financial liability, it allocates the carrying amount of the financial liability in its entirety between the part that continues to be recognized and the part that is derecognized based on the relative fair values of those parts on the date of the repurchase. The difference between the carrying amount of the financial liability derecognized and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) is recognized in profit or loss for the current period. 5. Method of determination of the fair value of financial assets and financial liabilities If there is an active market for a financial instrument, the quoted price in the active market is used to establish the fair value of the financial instrument. If there is no active market for a financial instrument, a valuation technique is used to establish the fair value of the financial instrument. On valuation, the Company adopts the valuation technique which applies to the current circumstances and is supported by sufficient data available and other information, selects the input value consistent with the characteristics of the asset or liability considered by the market participants in the transaction of the relevant asset or liability, and prioritizes using the relevant observable input value. The unobservable input value can be used only when the relevant observable input value cannot be obtained or it’s impracticable to obtain the relevant observable input value. 6. Test and accounting treatment of impairment of financial assets The Company estimates the expected credit losses of financial assets measured at amortized cost, financial assets (debt instruments) at fair value through other comprehensive income and financial guarantee contracts on a single or joint basis. The Company comprehensively considers reasonable and well-founded information about past events, current conditions, and predictions of future economic conditions as well as the possibility of default to calculate the probability-weighted amount of the present value of the difference between cash flows receivable from contracts and cash flows expected to be recovered and include it in the expected credit loss. The Company recognizes a loss allowance equal to the lifetime expected credit losses if the credit risk has increased significantly since initial recognition, or to the expected credit losses within the next 12 months if the credit risk has not increased significantly since initial recognition. The added or reversed loss reserves arising therefrom are recognized in profit or loss for the current period as impairment losses or gains. The Company compares the possibility of default at the balance sheet date with the possibility of default upon initial recognition, to determine the relative change in the default risks of financial instrument during the expected lifetime, and assess whether the credit risk of the financial instruments has increased significantly since initial recognition. If a financial instrument is past due for more than 30 days, the Company usually believes that credit risk of the financial instrument has increased significantly, unless there is clear evidence that credit risk of the financial instrument has not increased significantly since initial recognition.

内容: If a financial instrument has low credit risk on the balance sheet date, the Company believes that credit risk of the financial instrument has not increased significantly since initial recognition. If there is objective evidence indicating that a financial asset has been impaired for its credit, the Company makes a provision for impairment of the financial asset on an individual basis. With respect to accounts receivable and contract assets that arise from the transactions regulated under the Accounting Standards for Business Enterprises No.14 - Revenue (2017), whether to include significant financing components, the Company always measures its loss reserves based on an amount equal to the expected credit loss during the entire life of accounts receivable and contract assets. For lease receivables, the Company always measures its loss reserves based on an amount equal to the expected credit loss during the entire life of these receivables. If the Company no longer reasonably expects that the contractual cash flows of a financial asset can be recovered in whole or in part, it directly reduces the carrying amount of such financial asset. 11. Notes receivable Please refer to Note V, 10 “Financial instruments” for details of the Group’s accounting treatment of notes receivable and the method to determine the expected credit loss thereof. 12. Accounts receivable Please refer to Note V, 10 “Financial instruments” for details of the Group’s accounting treatment of accounts receivable and the method to determine the expected credit loss thereof.

内容: 13. Receivable financing Please refer to Note V, 10 “Financial instruments” for details of the Group’s accounting treatment of receivable financing and the method to determine the expected credit loss thereof.

内容: Determination and accounting treatment of expected credit losses of other receivables

内容: Please refer to Note V, 10 “Financial instruments” for details of the Group’s accounting treatment of other receivables and the method to determine the expected credit loss thereof.

内容: 15. Inventories 1. Classification and cost of inventories Inventories are classified into: materials in transit, raw materials, revolving materials, goods on hand, products in process, goods sold, work in process - outsourced, etc. Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion and other expenditures incurred in bringing the inventories to their present location and condition.

内容: 2. Pricing methods of inventories transferred out The Company delivers inventories at the price calculated using the weighted-average system monthly in arrears. 3. Determination basis of net realizable value of different types of inventories At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the cost of inventories is higher than the net realizable value, a provision for decline in value of inventories is made. Net realizable value is the estimated selling price in the ordinary course of business less costs expected to be incurred until completion and the estimated costs necessary to make the sale and relevant taxes. For finished products, goods on hand, materials available for sales and other merchandise inventories available for sales, in the ordinary production and operation process, their net realizable value is determined at the estimated selling price of these inventories less the estimated costs necessary to make the sale and relevant taxes; for the inventories that need to be processed, in the ordinary production and operation process, their net realizable value is determined at the estimated selling price of finished products less the costs to be incurred until completion and the estimated costs necessary to make the sale and relevant taxes. The net realizable value of the inventories held to satisfy sales or service contracts is based on the contract price. If the quantity of inventories held is more than the quantity ordered in the sales contracts, the net realizable value of the excess portion of inventories is based on general selling prices. After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be written down below cost no longer exist so that the net realizable value is higher than the carrying amount of inventories, the reversal is made to the extent of the amount originally provided for the decline in value of inventories. The amount of the reversal is recognized in profit or loss for the current period. 4. Inventory systems for inventories A perpetual inventory system is adopted. 5. Amortization of low-value consumables and packing materials The Company’s revolving materials include low-value consumables and packing materials. The revolving materials with significant amounts are amortized monthly in accordance with the estimated useful life upon applying for use; and the other low-value consumables and packing materials are amortized using immediate write-off method upon applying for use.

内容: 16. Contract assets 1. Recognition methods and standards of contract assets The Company presents the contract assets or liabilities in the balance sheet based on the relationship between performance obligations and customer payments. The Company presents the right to receive the consideration for the goods or services that have been transferred or offered to customers (that is,

内容: depending on factors other than the passage of time) as the contract assets. The Company lists the contract assets and liabilities under the same contract as net amount. The Company separately presents its owned right to unconditionally (that is, only depending on the passage of time) receive consideration from customers as the accounts receivable. 2. Determination and accounting treatment of expected credit losses of contract assets Determination and accounting treatment of expected credit losses of contract assets are seen in the Note “(X) VI. Test and accounting treatment of impairment of financial assets”. 17. Contract costs Contract costs include contract performance cost and contract acquisition costs. The cost incurred by the Company to perform a contract is not be governed by the standards on inventories, fixed assets or intangible assets, and if meeting the following criteria, is recognized as an asset as the contract performance cost: ? such cost is directly related to an existing or expected contract. ? such cost increases the Company’s future resources for fulfilling its performance obligations. ? such cost is expected to be recovered. If the incremental cost incurred by the Company to obtain a contract is expected to be recovered, it is recognized as an asset as the cost for contract acquisition. The Company amortizes the asset related to the contract cost on the same basis as the recognition of the revenue of the goods or services related to the asset; provided that if the cost for contract acquisition is amortized for not more than one year, the Company includes it into the profit or loss for the current period in which it is incurred. If the carrying amount of the asset related to the contract cost is higher than the difference between the following two amounts, then the Company makes a provision for impairment of the excess and recognizes it as an impairment loss for the asset: 1. the remaining consideration expected to be obtained due to the transfer of the goods or services related to the asset; and 2. the cost to be incurred due to the transfer of the relevant goods or services. If the impairment factors for prior periods have changed afterwards so that the above difference is higher than the carrying amount of the asset, then the Company reverses a provision for impairment originally made and includes it in the profit or loss for the current period, provided that the carrying amount after reverse should not exceed the carrying amount the asset would have reached on the date of reverse had the provision for impairment been not made. 18. Held-for-sale assets The assets of which carrying amount is recovered mainly through sales (including through exchange of non-monetary assets with commercial substance) rather than continuous use of non-current assets or disposal groups are classified as the held-for-sale assets. The Company classifies the non-current assets or disposal groups which meet all the following conditions as the held-for-sale assets: (1) they can be sold immediately under current conditions according to the practice of sales of such assets or disposal groups in similar transactions; and

内容: (2) the sale is very likely to happen, that is, the Company has made a resolution on a sale plan and obtained a confirmed purchase commitment, and such sale is expected to be completed within one year. The sale has been approved by the relevant authority or regulatory department of the Company if it is required to be so approved by the relevant provisions. For the non-current assets (excluding financial assets, deferred tax assets, and assets formed by the employee benefits) or disposal groups classified as the held-for-sale assets, if their carrying amount is higher than the fair value net of sale expenses, then the carrying amount is reduced to the fair value net of sale expenses. That reduction in amount is recognized as an impairment loss of the assets and charged to profit or loss for the current period. A provision for impairment of the held-for-sale assets is recognized accordingly. 19. Debt investments Please refer to Note V, 10 “Financial instruments” for details of the Group’s accounting treatment of debt investments and the method to determine the expected credit loss thereof.

内容: 22. Long-term equity investments 1. Judgment criteria of joint control and significant influence Joint control is the agreed sharing of control over an arrangement, and the relevant activities of such arrangement must be decided upon the unanimous consent of the parties sharing control. If the Company can exercise joint control over the investee along with other parties to joint ventures and enjoy rights over net assets of the investee, the investee is a joint venture of the Company. Significant influence is the power to participate in the financial and operating policy decisions of an investee, but is not control or joint control with other parties over the establishment of those policies. If the Company can have significant influence over the investee, the investee is an associate of the Company. 2. Determination of initial investment cost (1) Long-term equity investments formed by business combination In case of a long-term equity investment of a subsidiary acquired through a business combination involving entities under common control, the initial investment cost of the long-term equity investment is the Company’s share of the carrying amount of the owners’ equity of the absorbed party in the consolidated financial statements of the ultimate controller at the date of combination. The difference between the initial investment cost of the long-term equity investment and the carrying amount of the consideration paid for the combination is treated as an adjustment to the equity premium in the capital reserve. In case the equity premium in the capital reserve is not sufficient to absorb the difference, the

内容: remaining balance is adjusted against the retained earnings. Where the Company becomes capable to exercise control over an investee under the common control due to additional investment or other reasons, the difference between the initial investment cost of the long-term equity investment recognized in the light of above principles and the sum of the carrying amount of the long-term equity investment prior to combination plus the carrying amount of new consideration paid for further acquisition of shares on combination date is adjusted to the equity premium. If the equity premium is not sufficient to absorb the difference, any excess is adjusted against retained earnings. In case of a long equity investment acquired through a business combination not involving enterprises under common control, the Company regards the cost of combination determined on the date of acquisition as the initial investment cost of the long-term equity investment. If the Company becomes capable to exercise control over an investee not under common control due to additional investment or other reasons, the initial investment cost is the sum of the carrying amount of the equity investment originally held and the new investment cost. (2) Long-term equity investments obtained through forms other than business combination For a long-term equity investment acquired by paying cash, the initial investment cost is the actual purchase price. For a long-term equity investment acquired by the issue of equity securities, the initial investment cost is the fair value of equity securities issued. 3. Subsequent measurement and determination of profit or loss (1) Long-term equity investments accounted for using the cost method The Company accounts for the long-term equity investments of the subsidiaries using the cost method, unless these investments meet the held-for-sale conditions. Except for cash dividends or profit distributions declared but undistributed included in the price or consideration actually paid on acquisition of investments, the Company recognizes its cash dividends or profit distributions declared by the investee as investment income in the current period. (2) Long-term equity investments accounted for using the equity method The long-term equity investments of associates and joint ventures are accounted for using the equity method. Where the initial investment cost of a long-term equity investment exceeds the Company’s interest in the fair values of the investee’s identifiable net assets at the acquisition date, no adjustment is made to the initial investment cost of the long-term equity investment. Where the initial investment cost is less than the Company’s interest in the fair values of the investee’s identifiable net assets at the acquisition date, the difference is charged to profit or loss for the current period, and the cost of the long-term equity investment is adjusted accordingly. The Company respectively recognizes its share of the net profits or losses and other comprehensive income made by the investee as investment income or losses and other comprehensive income, and adjusts the carrying amount of the long-term equity investment accordingly. The carrying amount of the long-term equity investment is reduced by the portion of any profit distributions or cash dividends declared by the investee that is attributed to the Company. The Company adjusts the carrying amount of the long-term equity investment for other changes in owners’ equity of the investee other than net profits or losses, other comprehensive income and profit distributions (“changes in other owners’ equity”), and includes the corresponding adjustment in owners’ equity. For recognition of its share of the investee’s net profits or losses or other comprehensive income and

内容: changes in other owners’ equity, the Company recognizes its share of the investee’s net profits and other comprehensive income after making appropriate adjustments based on the fair value of the investee’s identifiable net assets at the date of acquisition in accordance with its accounting policies and period. For unrealized profits or losses resulting from intragroup transactions between the Company and associates or joint ventures, the portion attributable to the Company is eliminated, and based on this, the investment income is recognized, unless the invested or sold assets constitute the business. The impairment loss of assets in the unrealized losses resulting from intragroup transactions between the Company and the investee is fully recognized. The Company discontinues recognizing its share of net losses of the associate or joint venture after the carrying amount of the long-term equity investment together with any long-term interests that in substance form part of the Company’s net investment in the associate or joint venture are reduced to zero, except to the extent that the Company has incurred obligations to assume additional losses. Where the associate or joint venture makes net profits subsequently, the Company resumes recognizing its share of those profits only after its share of the profits equals the share of losses not recognized. (3) Disposal of long-term equity investments On disposal of a long term equity investment, the difference between the proceeds actually received and the carrying amount is recognized in profit or loss for the current period. If, on partial disposal of long-term equity investments accounted for using the equity method, the remaining equity is still accounted for using the equity method, the portion previously included in other comprehensive income is accounted for on a pro-rata basis, with the same basis as the relevant assets or liabilities directly disposed of by the investee, and changes in other owners’ equity are transferred to profit or loss for the current period on a pro-rata basis. When the Company loses joint control or significant influence on the investee due to disposal of equity investments or other reasons, the original equity investment included in other comprehensive income due to the use of equity method is accounted for on the same basis as the relevant assets or liabilities directly disposed of by the investee when the equity method discontinues, and the changes in other owners’ equity are fully transferred to profit or loss for the current period when the equity method discontinues. Where the Company loses control over the investee due to disposal of partial equity investments, if in preparing separate financial statements, the Company can exercise joint control or significant influence on the investee by virtue of its remaining equity, the remaining equity switches to the equity method for accounting, and is adjusted as if it is accounted for using the equity method since acquisition. Other comprehensive income recognized prior to acquisition of the control on the investee is carried forward proportionally on the same basis as the investee’s direct disposal of related assets or liabilities, and changes in other owners’ equity recognized using the equity method are transferred to profit or loss for the current period on a pro-rata basis; if the Company cannot exercise joint control or significant influence on the investee by virtue of its remaining equity, the remaining equity is recognized as financial assets, and the difference between the fair value and the carrying amount on the date when the Company loses control is recognized in profit or loss for the current period, and other comprehensive income and changes in other owners’ equity recognized prior to acquisition of the control on the investee are fully carried forward. Where all transactions from disposal of equity investments in a subsidiary through multiple transactions by steps until the loss of control belong to a single package, the Company accounts for each transaction as a disposal of equity investments in a subsidiary and the loss of control; however, the difference between the proceeds from each disposal before loss of control and the carrying amount of the long-term equity

内容: investments corresponding to the equity disposed of is first recognized in other comprehensive income in separate financial statements and then transferred to the profit or loss in the period in which the control is lost. Where all transactions do not belong to a single package, the Company accounts for each transaction respectively. 23. Investment properties

内容: Measurement of investment properties Measured at cost Depreciation or amortization methods

内容: The Company’s investment property is property held to earn rentals or for capital appreciation or both, including land use rights that have been leased out, land use rights that are held and ready to be transferred after appreciation, and buildings that have been leased out (including those that are available for rental after being built by the Company itself or completion of development activities, and are being built or in progress for rental in the future). The Company measures the existing investment properties using the cost model. Subsequent costs incurred for an investment property are included in the cost of the investment property when it is probable that the associated economic benefits will flow to the Company and the cost of the asset can be measured reliably. Subsequent costs that fail to meet the recognition criteria above are recognized in profit or loss in the period in which they are incurred. For investment properties measured using cost model for measurement - the buildings available for rental follow the same depreciation policies as those of the Company’s fixed assets, and land use rights available for rental follow the same amortization policies as those of intangible assets. 24. Fixed assets (1) Recognition of fixed assets Fixed assets are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and have useful lives more than one accounting year. A fixed asset is recognized only when both of the following conditions are met: (1) it is probable that economic benefits associated with the fixed asset will flow to the enterprise; and (2) the cost of fixed assets can be measured reliably. A fixed asset of the Company is initially measured at its cost, and in determining the cost of a fixed asset, the Company considers the effect of any expected costs of abandoning the asset at the end of its use. Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Company and the cost of the asset can be measured reliably; the carrying amount of the part to be replaced is derecognized; all of other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.

内容: Estimated useful life (years) 20 3-10 5-10 Annual depreciation rate (%) 4.50-5 9-33 9-18

内容: Category Buildings Machinery equipment Auxiliary production equipment Transportation equipment Mould equipment Office equipment Computer equipment Other equipment

内容: Method of depreciation Straight-line method Straight-line method Straight-line method

内容: Straight-line method Straight-line method Straight-line method Straight-line method Straight-line method

内容: The Company provides for depreciation of fixed assets by category using the straight-line method, and determines the depreciation rate on the category, estimated useful life and estimated net residual value of fixed assets. For fixed assets with the provision for impairment, the depreciation amount will be determined in the future based on the carrying amount after deduction of the provision for impairment and remaining useful life. If a fixed asset has various component parts which have different useful lives or provide benefits to the enterprise in different manners, these component parts are depreciated separately by selecting different depreciation rates or methods. The depreciation policy adopted for the fixed assets leased in under finance lease is consistent with that for the self-owned fixed assets. If there is reasonable certainty that the lessee will obtain ownership of the leased asset by the end of the lease term, the leased asset is depreciated over its useful life; if there is no reasonable certainty that the lessee will obtain ownership of the leased asset by the end of the lease term, the leased asset is depreciated over the shorter of the lease term and its useful life. (3) Identification basis, pricing and depreciation methods of fixed assets leased in under finance leases If the clauses of the lease agreement made and entered into by and between the Company and the lessor stipulate one of the following conditions, the relevant asset will be recognized as the asset leased in under finance lease: (1) the ownership of the leased asset belongs to the Company after the lease term expires; (2) the Company has the option to purchase the asset at the price much lower than the fair value of the asset at the time of exercise of option; (3) the lease term accounts for the majority of the useful life of the leased asset; (4) the present value of the minimum lease payment at the commencement date of the lease is not significantly different from the fair value of the asset; or (5) the leased asset is of a specialized nature such that only the lessee can use them without major modifications being made. At the inception of the lease, the Company records the leased asset at an amount equal to the lower of the fair value of the leased asset and the present value of the minimum lease payments, and recognizes a long-term

内容: payable at an amount equal to the minimum lease payments. The difference between the recorded amount of the leased asset and the recorded amount of the payable is accounted for as unrecognized finance charge. (4) Disposal of fixed assets A fixed asset is derecognized when it is disposed of or when no future economic benefits are expected to be generated from its use or disposal. When a fixed asset is sold, transferred, retired or damaged, the Company recognizes the amount of any proceeds on disposal net of the carrying amount and related taxes and fee in profit or loss for the current period. 25. Construction in progress A construction in progress is measured at the actual cost incurred. Actual cost includes construction and installation fees, qualifying borrowing costs and other necessary expenses necessarily incurred for bringing the asset to working condition for its intended use. The construction in progress is transferred to fixed assets when meeting working conditions for its intended use and the Company begins to make provision from next month. 26. Borrowing costs 1. Recognition of capitalization of borrowing costs Borrowing costs incurred by the company that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of the relevant asset. The amounts of other borrowing costs incurred are recognized as an expense in the period in which they are incurred, and recorded into profit or loss for the current period. Qualifying assets are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial period of time for acquisition, construction or production to get ready for their intended use or sale. 2. Capitalization period of borrowing costs Capitalization period is the period from the date of commencement of capitalization of borrowing costs to the date of cessation of capitalization, excluding any period over which capitalization is suspended. The capitalization of borrowing costs can commence only when all of the following conditions are satisfied: (1) expenditures for the asset are being incurred, and such expenditures include those expenditures incurred for the acquisition, construction or production of the qualifying asset that have resulted in payments of cash, transfer of non-cash assets, or the assumption of interest-bearing liabilities; (2) borrowing costs are being incurred; and (3) activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced. When the qualifying asset being acquired, constructed or produced has become ready for its intended use or sale, the capitalization ceases. 3. Period over which capitalization is suspended Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or

内容: production of a qualifying asset is interrupted abnormally, when the interruption is for a continuous period of more than 3 months. However, capitalization of borrowing costs continues when the interruption is a necessary part of the process of preparing that asset for its intended use or sale. The borrowing costs incurred during these periods of interruption are recognized as profit or loss for the current period, and the capitalization of borrowing costs continues until the acquisition, construction or production of that asset is resumed. 4. Calculation methods of rate and amount of capitalization of borrowing cost Where funds are borrowed under a specific-purpose borrowing for the acquisition, construction or production of a qualifying asset, the amount of borrowing costs to be capitalized is the actual borrowing costs incurred for the current period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed under general-purpose borrowings and are utilized for the acquisition, construction or production of a qualifying asset, the Company determines the amount of borrowing costs to be capitalized on such borrowings by multiplying a capitalization rate of the utilized general-purpose borrowings by the weighted average of the excess amounts of cumulative expenditures on the asset over and above the amounts of specific-purpose borrowings. The capitalization rate is the weighted average of the actual interest rates applicable to the general-purpose borrowings. During the capitalization period, exchange differences related to the principal and interest on a specific-purpose borrowing denominated in foreign currency are capitalized as part of the cost of the qualifying asset. The exchange differences arising from foreign currency borrowings and interest thereon other than specific-purpose borrowings denominated in foreign currency are recognized in profit or loss for the current period. 27. Biological assets

内容: 29. Right-of-use assets Please refer to Note V, 42 “Leases” for details of the determination and accounting treatment of right-of-use assets.

内容: 30. Intangible assets (1) Pricing methods, useful lives and impairment tests 1. Pricing methods of intangible assets (1) The Company initially measures an intangible asset at cost of acquisition; The cost of a separately acquired intangible asset comprises its purchase price, related taxes and any

内容: directly attributable expenditure for preparing the asset for its intended use. (2) Subsequent measurement The Company analyzes and assesses the useful life of an intangible asset on its acquisition. A finite-lived intangible asset is amortized during the period over which the asset generates economic benefits for the enterprise; an intangible asset is regarded as having an indefinite useful life when there is no foreseeable limit to the period over which the asset is expected to generate economic benefits for the enterprise, and is not be amortized. 2. Estimated useful lives of intangible assets with finite life Item Software Land use right Patent right Non-patent technology Estimated useful life 3-10 50 10 10 Amortization method Straight-line method Straight-line method Straight-line method Straight-line method Residual value rate None None None None Basis Estimated period of benefit Certificate of land use rights Right term Estimated period of benefit

内容: 3. Basis for judgement of an intangible asset with indefinite useful life and procedures for review of useful life The Company reviews the useful life of the indefinite intangible assets at the end of each period. Upon review, the useful life of intangible assets is still indefinite.

内容: (2) Accounting policies for internal research and development expenditure 1. Specific criteria for an internal research and development project that are classified into the research phase and the development phase Expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure on the development phase. Research phase: the stage of original and planned investigation and research activity undertaken with the prospect of gaining and understanding new scientific or technical knowledge. Development phase: the stage of the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices or products etc. before the start of commercial production or use. 2. Specific criteria of expenditure on the development phase qualifying for capitalization Expenditure on the research phase is recognized in profit or loss for the period in which it is incurred. Expenditure on the development phase is recognized as an intangible asset only when the Company demonstrates all of the following conditions are met; otherwise, it is recognized in profit or loss for the current period:

内容: (1) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (2) the intention to complete the intangible asset and use or sell it; (3) how the intangible asset will generate economic benefits. Among other things, the Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; (4) the availability of adequate technical, financial and other resources to complete the development of and the ability to use or sell the intangible asset; and (5) its ability to measure reliably the expenditure attributable to the intangible asset during its development phase. If the Company fails to discriminate between expenditure on the research phase and expenditure on the development phase, all expenditures on research and development are recognized in the profit or loss for the current period. 31. Impairment of long-term assets Where any indication exists that long-term equity investments, investment properties measured at the cost model, fixed assets, construction in progress, intangible assets with finite useful life and other long-term assets may be impaired at the balance sheet date, the Company performs an impairment test thereon. The result of the impairment test shows that the recoverable amount of an asset is lower than its carrying amount, the difference is made the provision for impairment and included in the impairment loss. The recoverable amount of an asset is the higher of its fair value less disposal costs and the present value of the future cash flows expected to be derived from the asset. The provision for impairment of assets is calculated and recognized for an individual asset, and if it is not possible to estimate the recoverable amount of the individual asset, the Company determines the recoverable amount of the asset group to which the asset belongs. An asset group is the smallest identifiable group of assets that generates cash inflows. Goodwill generated in a business combination, indefinite-lived intangible assets and intangible assets which do not meet the working conditions for its use are tested for impairment at least at the end of each year, irrespective of whether there is any indication that the asset may be impaired. For the purpose of impairment testing of the Company, the carrying amount of goodwill generated in a business combination is, from the acquisition date, allocated on a reasonable basis to each of the related asset groups. If it is not possible to allocate to the related asset groups, it is allocated to each of the related sets of asset groups. Each of the related asset groups or sets of asset groups shall be an asset group or set of asset groups that is able to benefit from the synergies of the business combination. In testing an asset group or a set of asset groups to which goodwill has been allocated for impairment, there may be an indication that a related asset group or set of asset groups may be impaired. In such circumstances, the Company firstly tests the asset group or set of asset groups excluding the amount of goodwill allocated for impairment, calculates its recoverable amount, compares the recoverable amount with the related carrying amount and recognizes any impairment loss. Then, the Company tests the asset group or set of asset groups to which goodwill has been allocated for impairment and compares its carrying amount and recoverable amount. When the recoverable amount is less than its carrying amount, the amount of impairment loss first reduces the carrying amount of any goodwill allocated to the asset group or set of asset groups, and then reduces the carrying amount of other assets (other than goodwill) within the asset group or set of asset groups, pro rata on the basis of the carrying amount of each asset.

内容: Once an impairment loss on the asset above is recognized, it will not be reversed in a subsequent period. 32. Long-term prepaid expenses Long-term prepaid expenses mean those that have been incurred but should be amortized in the current period and the subsequent periods of more than one year. The amortization period and method of expenses are shown as follows: Item Decoration fees Others Amortization method Straight-line method Straight-line method Amortization period Period of benefit Period of benefit

内容: 33. Contract liabilities The Company presents the contract assets or liabilities in the balance sheet based on the relationship between performance obligations and customer payments. The Company presents the obligations to transfer goods or offer services to customers as the consideration received or receivable from customers the contract liabilities. The Company lists the contract assets and liabilities under the same contract as net amount. 34. Employee benefits (1) Accounting treatment of short-term benefits The Company recognizes the short-term benefits actually incurred during the accounting period when the employees serve the Company as liabilities, and include the same as part of the cost of related assets or in profit or loss for the current period. The employee benefits corresponding to payments of social security contributions and housing funds for employees by the Company and the appropriation to labor union funds and employee education fees are determined on such provision basis and at such provision rate as stipulated during the period when the employees provide services for the Company. The staff welfare incurred by the Company is stated as the amount actually incurred and recorded into profit or loss for the current period or cost of related assets; non-monetary benefits are measured at fair value. (2) Accounting treatment of post-employment benefits (1) Defined contribution plans The Company pays basic endowment insurance and unemployment insurance for employees pursuant to the relevant regulations of the local government. The amounts payable therefor, during the accounting period when the employees serve the Company, are calculated according to the payment base and proportion stipulated by the local regulations, which are recognized in profit or loss for the current period or the cost of related assets as liabilities. The Company pays a certain proportion of the total wages of an employee to the annuity plan/local social insurance institution, and the corresponding expenses are

内容: recognized in profit or loss for the current period or the cost of related assets. (2) Defined benefit plans The Company, according to the formula determined by the expected cumulative benefit unit method, attributes the benefit obligations arising from the defined benefit plan to the service period of the employees, and recognizes them in the profit or loss for the current period or the cost of related assets. The deficit or surplus formed by the present value of obligations in the defined benefit plan minus the fair value of assets therein is recognized as the net liabilities or net assets of the defined benefit plan. If the defined benefit plan has surplus, the Company measures the net assets of the defined benefit plan according to the lower of the surplus and the upper limit of assets in the defined benefit plan. All obligations in the defined benefit plan, including obligations expected to be paid within 12 months after the end of the annual reporting period for employee services, are discounted based on the market yield of treasury bonds or high-quality corporate bonds in active markets that match the term and currency of the obligations in the defined benefit plan on the balance sheet date. The service cost generated by the defined benefit plan and the net interest of the net liabilities or net assets of the defined benefit plan are recognized in the profit or loss for the current period or the cost of related assets; changes arising from the re-measurement of net liabilities or net assets of the defined benefit plan are included in other comprehensive income, and are not be converted back to profit or loss in subsequent accounting periods. At the end of the original defined benefit plan, the part originally included in other comprehensive income is fully carried forward to unappropriated profit within the scope of equity. In the settlement of the defined benefit plan, the gain or loss of settlement is recognized according to the difference between the present value of the obligations in the defined benefit plan and the settlement price determined on the settlement date. (3) Accounting treatment of termination benefits The Company recognizes the employment compensation liabilities generated by termination benefits and records them into the profit or loss for the current period on the earlier of: when the Company cannot unilaterally withdraw the severance benefits provided as a result of the labor relationship termination plan or layoff proposal, or when it recognizes the costs or expenses related to the restructuring of the severance benefits payment. (4) Accounting treatment of other long-term employee benefits 35. Lease liabilities The Company has elected to recognize the cumulative effect from the initial application of the New Lease Standard as an adjustment to the opening balances of retained earnings and other related items in the financial statements in the initial year of such application, with comparative information not restated. For the operating leases existing before the date of initial application of the New Lease Standard, the lease liability is measured at the present value of the remaining lease payments at the date of initial application of the New Lease Standard that is discounted at the Company’s incremental borrowing rate at the date of initial application of the New Lease Standard, and for each lease, the right-of-use asset is measured at either of the followings: the carrying amount recognized by adopting the New Lease Standard from the commencement date of

内容: lease term, discounted by the Company’s incremental borrowing rate at the date of initial application of the New Lease Standard. * an amount equal to the lease liability, adjusted by the amount of any prepaid lease payments. For leases classified as operating leases before the date of initial application, the Company, at the same time of using aforementioned methods, adopts one or more of the following practical expedients to account for each lease: 1) accounted as short-term leases for the leases for which the lease term ends within 12 months of the date of initial application; 2) applied a single discount rate to leases with similar characteristics when measuring lease liabilities; 3) excluded initial direct costs from measuring the right-of-use assets; 4) determined the lease term according to the actual exercise or other updates of options before the date of initial application if the contract contains options to extend or terminate the lease; 5) adjusted the right-of-use assets by the amount of onerous contract provision recognized in the balance sheet before the date of initial application if the contract including leases is measured as an onerous contract before the date of initial application in accordance with Note “III. (24) Provisions” to the financial statements, as an alternative of testing the impairment of right-of-use assets; 6) accounted for lease modifications before the date of initial application according to the final arrangement of the lease modifications under the New Lease Standard without retrospective adjustments. In measuring the lease liabilities, the lease payments are discounted by the Company at the leasee’s incremental borrowing rate as at January 1, 2021. For leases classified as finance lease before the date of initial application, the right-of-use asset and the lease liabilities are measured at the original carrying amount of the asset leased in under finance lease and obligations under finance lease at the date of initial application. 36. Provisions The Company recognizes an obligation related to a contingency as a provision when all of the following conditions are satisfied: (1) the obligation is a present obligation of the Company; (2) it is probable that an outflow of economic benefits from the Company will be required to settle the obligation; and (3) the amount of the obligation can be measured reliably. Provisions are initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors pertaining to a contingency such as the risks, uncertainties and time value of money are taken into account as a whole when the Company reaches the best estimate. Where the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. Where there is a continuous range of the expenditure required, and each possible outcome in that range is as likely as any other, the best estimate is the mid-point of that range. Under any other circumstances, the best estimate is accounted for as follows: ? where the contingency involves a single item, the best estimate is the most likely amount. ? where the contingency involves a large population of items, the best estimate is determined by weighting all possible outcomes by their associated probabilities.

内容: Where all or some of the expenditure required to settle an estimated liability is expected to be reimbursed by a third party, the reimbursement is recognized as a separate asset when it is virtually certain that reimbursement will be received. The amount recognized for the reimbursement does not exceed the carrying amount of the estimated liability. The Company reviews the carrying amount of a provision at the balance sheet date. Where there is clear evidence that the carrying amount of a provision does not reflect the current best estimate, the carrying amount is adjusted to the current best estimate. 37. Share-based payment A share-based payment of the Company is a transaction in which the Company grants equity instruments, or incurs liabilities for amounts that are determined based on the price of equity instruments, in return for services rendered by employees or other parties. A share-based payment of the Company is classified as either an equity-settled share-based payment or a cash-settled share-based payment. 1. Equity-settled share-based payment and equity instruments An equity-settled share-based payment in exchange for services received from the employees is measured at the fair value of equity instruments granted to the employees. If the right under the share-based payment vests immediately following the grant, the Company, on grant date, recognizes related costs or expenses at an amount equal to the fair value of the equity instruments, with a corresponding increase in capital reserve. If the rights under a share-based payment do not vest until the completion of services for a vesting period, or until the achievement of a specified performance condition, at each balance sheet date during the vesting period, the Company makes the best estimate of the number of equity instruments expected to vest, and based on this, recognizes the services received in the current period in the related costs or expenses at an amount equal to the fair value on the grant date, with a corresponding increase in capital reserve. If the terms of equity-settled share-based payment are modified, the services received are recognized at least pursuant to the unmodified terms. In addition, any modifications that increase the fair value of the equity instruments, or changes that are beneficial to employees on the modification date are recognized as an increase in services. If the granted equity instrument is cancelled within the vesting period, the Company treats the cancellation of equity instrument granted as the accelerated exercise, and the amount to be recognized during the remaining vesting period is immediately charged to profit or loss for the current period, and the capital reserve is recognized at the same time. However, if a new equity instrument is granted, and on the grant date thereof, is deemed to replace the cancelled equity instrument, then the substitute equity instrument granted is accounted for pursuant to the terms and conditions for accounting for original equity instrument. 2. Cash-settled share-based payment and equity instruments A cash-settled share-based payment is measured at the fair value of the liability incurred, being a liability which is determined based on the price of the Company’s shares or other equity instruments. If the right under the share-based payment vests immediately following the grant, the Company, on grant date, recognizes related costs or expenses at an amount equal to the fair value of the liabilities assumed with a corresponding increase in liabilities. If the rights under a share-based payment do not vest until the

内容: completion of services for a vesting period, or until the achievement of a specified performance condition, at each balance sheet date during the vesting period, the Company makes the best estimate of the number of equity instruments expected to vest, and based on this, recognizes the services received in the current period in the related costs or expenses at an amount equal to the fair value of the liabilities assumed by the Company, and includes the same in the liabilities accordingly. Until the liability is settled, the Company remeasures the fair value of the liability at each balance sheet date and at the date of settlement, with changes recognized in profit or loss for the current period. 38. Preferred shares, perpetual bonds and other financial instruments 39. Revenue

内容: Accounting policies adopted for the recognition and measurement of revenue

内容: 1. Accounting policies adopted for the recognition and measurement of revenue The revenue is recognized at the time when the Company has discharged the performance obligations in the contract, that is, when the customer obtains the control of the related goods or services. Obtainment of the control of the related goods or services means the ability to direct the use of such goods and services and obtain substantially all of economic benefits from them. If the contract has two or multiple performance obligations, the Company allocates the transaction price to each individual performance obligation on the inception of the contract by reference to relative standalone selling prices of goods or services promised thereby. The Company measures revenue based on the transaction price allocated to each individual performance obligation. The transaction price is the amount of consideration to which the Company is entitled arising from the transfer of goods or services to the customer, excluding the amount collected on behalf of a third party and expected to be returned to the customer. The Company determines the transaction price with reference to the contract terms and in conjunction with past customary practices, and in doing so, considers variable consideration, significant financing components in the contract, non-cash consideration, consideration payable to customers and other factors. The Company determines the transaction price including variable consideration to the extent that it is highly probable that its inclusion will not result in a significant revenue reversal of accumulatively recognized revenue in the future when the uncertainty has been subsequently resolved. If there is a significant financing component in the contract, the Company determines the transaction price based on the presumed amount payable in cash when the customer obtains the control of goods or services, and amortizes the differences between the transaction price and the contract consideration using the actual interest method within the term of the contract. When meeting one of the following criteria, it belongs to the obligation performed over time, otherwise it constitutes the obligation performed at a point in time: ? the customer obtains and consumes the economic benefits generated by the Company’s performance when the Company performs the contract. ? the customer can control the products in progress in the performance of the contract by the Company. ? the products produced in the process of the Company’s performance have irreplaceable uses, and the Company has the right to collect payment for the cumulative performance that has been completed up to date throughout the term of the contract. For the obligation performed over time, the Company recognizes the revenue based on the performance progress over time, unless the performance progress cannot be reasonably determined. The Company

内容: determines the progress of performance obligation by taking the nature of goods or services and using the output/input method. When the performance progress cannot be reasonably determined, and the costs incurred are expected to be recoverable, the Company recognizes the revenue to the extent of costs incurred until the performance progress can be reasonably determined. For the obligation performed at a point in time, the Company recognizes the revenue at the point in time when the customer obtains the control of the related goods or services. When judging whether the customer has obtained the control of goods or services, the Company considers the followings signs: ? the Company has the current right to receive payment for such goods or services, that is, the customer has the current obligation to make payment for such goods or services; ? the Company has transferred the legal ownership of such goods to the customer, that is, the customer has the legal ownership of such goods; ? the Company has transferred such goods to the customer physically, that is, the customer has taken possession of such goods physically; ? the Company has transferred major risks and rewards of ownership of such goods to the customer, that is, the customer has obtained major risks and rewards of ownership of such goods; and ? the customer has accepted such goods or services. 2. Specific methods of revenue recognition The Company organizes the production according to the sales contracts signed with or the orders placed by customers, and identifies the following models based on different geographical locations of customers and inventory management methods: (1) General sales For domestic sales, the Company ships goods to the delivery location designated by a customer, and recognizes the revenue after the customer has signed the receipt of the products; and for foreign sales, the goods are delivered according to specific trade terms, and the revenue is recognized at a point in time when the control is transferred. (2) Supplier management inventory Under this model, the Company ships the goods to the designated warehouse, the customer picks up the goods from the warehouse, and the revenue is recognized at a point in time when the control is transferred.

内容: Difference in the accounting policy for revenue recognition arising from adoption of different modes of operation for the same kind of business

内容: None. 40. Government grants 1. Category Government grants are monetary assets or non-monetary assets from the government to the Company at no consideration. Government grants are classified into government grants related to assets and government grants related to income. Government grants related to assets are government grants whose primary condition is that the Company should purchase, construct or otherwise acquire long-term assets. Government grants related to income are government grants other than those related to assets.

内容: The specific standard based on which the Company classifies a grant as a government grant related to assets is that: the grant obtained by the Company is used to purchase, construct or otherwise acquire long-term assets. The specific standard based on which the Company classifies a grant as a government grant related to income is that: government grants related to income are government grants other than those related to assets. When classifying a grant whose subsidy object is not clearly specified in the government documents as a government grant related to assets or a government grant related to income, the Company judges whether the grant is used to purchase, construct or otherwise acquire long-term assets. 2. Recognition time point When the Company actually receives the government grant, a government grant related to assets of the Company is recognized, and since the long-term assets are available for use, the Company equally amortizes the deferred income based on the estimated useful life of long-term assets and then transfers the same to the profit or loss for the current period. When the Company actually receives the government grant, a government grant related to income of the Company is recognized, and the Company recognizes it in the non-operating income or other income over the periods in which the related costs are recognized if the grant is a compensation for related expenses or losses to be incurred by the Company in subsequent periods, and directly recognizes it in the non-operating income or other income for the current period on acquisition if the grant is a compensation for related expenses or losses incurred by the Company. The government grant is recognized when the Company meets the conditions attaching to the government grant and can receive the government grant. 3. Accounting treatment The government grants related to assets are offset against the carrying amount of the related assets or recognized as deferred income. If a grant is recognized as deferred income, it is charged to profit or loss for the current period in a reasonable and systematic manner within the useful life of related assets (the grant related to the daily activities of the Company is recognized in other income, otherwise it is recognized in non-operating income); The government grant related to income which is a compensation for related expenses or losses to be incurred by the Company in subsequent periods is recognized as the deferred income and charged to the profit or losses over the period when related costs or losses are recognized (the grant related to the daily activities of the Company is recognized in other income, otherwise it is recognized in non-operating income) or offset against related costs or losses; and the government grant related to income which is a compensation for related expenses or losses incurred by the Company is directly recognized in profit or loss for the current period (the grant related to the daily activities of the Company is recognized in other income, otherwise it is recognized in non-operating income) or offset against related costs or losses. The policy-related preferential loan interest discounts obtained by the Company are accounted for separately according to the following two circumstances: (1) If the finance department allocates the interest discount funds to the lending bank, and then the lending bank offers a loan to the Company at the policy-based preferential interest rate, the Company

内容: recognizes the loan amount actually received as the recorded amount of the loan, and calculates the borrowing costs according to the loan principal and such policy-based preferential interest rate. (2) If the finance department directly allocates the interest discount funds to the Company, the Company offsets the corresponding interest subsidy against the related borrowing costs. 41. Deferred tax assets/deferred tax liabilities Income tax includes current and deferred tax. Except for the income tax arising from business combinations and transactions or events recognized directly in owners’ equity (including other comprehensive income), the Company recognizes current tax and deferred tax in profit or loss for the current period. The deferred tax assets and deferred tax liabilities are calculated and recognized based on the difference (temporary difference) between the tax base of assets and liabilities and the carrying amount of assets and liabilities. A deferred tax asset is recognized for the deductible temporary difference to the extent that it is probable that future taxable income amounts will be available against which the deductible temporary difference can be utilized. A deferred tax asset is recognized for the carryforward of unused deductible losses and tax credits to the extent that it is probable that future taxable income amounts will be available against which the deductible losses and tax credits can be utilized.

内容: A deferred tax liability is recognized for taxable temporary difference, except for special circumstances. Special circumstances under which the deferred tax assets or deferred tax liabilities are not recognized for the taxable temporary difference include: ? the initial recognition of goodwill; ? the transaction or event that is not business combination, and at the time of the occurrence, does not affect accounting profit or taxable income amount (or deductible loss). A deferred tax liability is recognized for the taxable temporary difference related to investments in subsidiaries, associates and joint ventures, unless the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. A deferred tax asset is recognized for the deductible temporary difference related to investments in subsidiaries, associates and joint ventures when it is probable that the temporary difference will reverse in the foreseeable future and taxable income amounts will be available in the future against which the deductible temporary difference can be utilized. At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, according to the requirements of tax laws. The Company reviews the carrying amount of the deferred tax assets at the balance sheet date. The Company reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient taxable income amounts will be available in future periods to allow the benefit of the deferred tax asset to be utilized. Any such reduction in amount is reversed to the extent that it becomes probable that sufficient taxable income amounts will be available. The current tax assets and current tax liabilities are offset and presented on a net basis when the Company has the statutory right to settle on a net basis, and intends to settle on a net basis or to obtain assets and

内容: settle liabilities simultaneously. At the balance sheet date, deferred tax assets and deferred tax liabilities are offset and presented on a net basis when both of the following conditions are satisfied: ? the taxpayer has the statutory right to settle the current tax assets and current tax liabilities on a net basis; and ? the deferred tax assets and deferred tax liabilities are related to income taxes levied by the same tax authority on the same taxpayer or different taxpayers, provided that during the period in which each material deferred tax asset and liability will be reversed, the taxpayer involved intends to settle the current tax assets and liabilities on a net basis or obtain assets and settle liabilities simultaneously. 42. Leases (1) Accounting treatment of operating leases Please refer to paragraph (3) of this section for details of determination and accounting treatment of leases under the New Lease Standard. (2) Accounting treatment of finance leases Please refer to paragraph (3) of this section for details of determination and accounting treatment of leases under the New Lease Standard. (3) Determination and accounting treatment of leases under the New Lease Standard Accounting policies applicable since January 1, 2021 The term “lease” refers to an agreement whereby the lessor conveys to the lessee the right to use an asset for consideration in an agreed period of time. The Company shall assess whether a contract is a lease contract or contains a lease at the commencement date of the contract, which can be identified if one party to the contract conveys the right to use one or more identified assets for exchange of consideration in an agreed period of time. If a contract contains several individual leases, the Company will split the contract and account for each individual lease separately. If a contract contains both lease and non-lease components, the lessee and the lessor will separate the lease and non-lease components. 1. The Company as a lessee (1) Right-of-use assets At the commencement date of the lease, the Company recognizes right-of-use assets for leases excluding short-term leases and leases of low-value assets. The right-of-use assets are initially measured at cost comprising the following: the amount of the initial measurement of lease liability; any lease payments made at or before the commencement date less any lease incentives received (if any); any initial direct costs incurred to the Company; and costs expected to be incurred to the Company for disassembly and removal of leased assets, restoration of the site where the leased asset is located, or recovery of the leased asset to the condition agreed upon under the terms of the lease, excluding costs incurred to produce inventories. The right-of-use assets are depreciated by using a straight-line method subsequently. A leased asset is

内容: depreciated over its remaining useful life if the ownership of this leased asset can be reasonably obtained at the maturity date of the lease term, otherwise, the leased asset is depreciated over the shorter of its remaining useful life and the lease term. The Company determines whether the right-of-use assets are impaired and accounts for the identified impairment losses in accordance with the principles stated in Note “III. (20) Impairment of long-term assets”. (2) Lease liabilities At the commencement date of the lease, the Company recognizes lease liabilities for leases excluding short-term leases and leases of low-value assets. The lease liabilities are initially measured at the present value of the outstanding lease payments including: fixed payments (including in-substance fixed payments), less any lease incentives receivable (if any); variable lease payments that are based on an index or a rate; amounts expected to be payable by the Company for the guaranteed residual value; the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the Company’s incremental borrowing rate is applied. Interest expenses incurred to the lease liabilities over the term of the relevant lease are calculated by the Company based on fixed periodic interest rate, and recognized in the current profit or loss or the cost of the related assets. Variable lease payments excluded from the measurement of lease liabilities are charged to profit or loss in the period when they are incurred or included in cost of related assets. After the commencement date of the lease term, the Company will re-measure the lease liabilities and adjust relevant right-of-use assets in one of the following cases, and charge the difference to the current profit or loss if the carrying amount of the right-of-use assets is decreased to zero but that of the lease liabilities needs to be deducted further: When there is a change in the assessment of a purchase option, lease renewal option or termination option, or the actual exercise of the aforementioned options is not consistent with the original assessment, the Company will re-measure the lease liabilities at the present value of the modified lease payments discounted by using the revised discount rate. When there is a change in the in-substance fixed payments, the expected payable for the guaranteed residual value, or the index or rate used to determine the lease payments, the Company will re-measure the lease liabilities at the present value of the modified lease payments discounted by using the original discount rate. However, if the change in the lease payments is caused by the fluctuation of the floating interest, the present value shall be discounted by using the revised discount rate. (3) Short-term leases and leases of low-value assets The Company chooses not to recognize the right-of-use assets and lease liabilities for short-term leases and leases of low-value assets, and recognize in the current profit or loss or the cost of the related assets payments associated with short-term leases and leases of low-value assets on a straight-line basis over the term of the relevant lease. Short-term leases are leases with a lease term of 12 months or less without a purchase option at the commencement date of leases. Leases of low-value assets are leases for which the

内容: single leased asset is of low value when it is brand new. Lease of an asset that is sub-leased or that is expected to be sub-leased by the Company is not included in the lease of low-value assets. (4) Lease modification The Company accounts for a lease modification as a separate lease if both of the following conditions exist: The modification has increased the scope of the lease by adding the right to use one or more leased assets; and The consideration for the lease increases equivalents to the standalone price for the increase in scope of lease and any appropriate adjustments to that standalone price to reflect the circumstances of the particular contract. For a modification that is not accounted for as a separate lease, at the effective date of the modification, the Company will allocate the consideration in the modified contract, determine the lease term of the modified lease and re-measure the lease liabilities at the present value of the modified lease payments discounted by using the revised discount rate. For modifications that decrease the scope of the lease or shorten the lease term, the Company decreases the carrying amount of the right-of-use asset accordingly, and recognizes a gain or loss arising from the partial or full termination of the lease into the current profit or loss. For other modifications resulting to a re-measurement of lease liabilities, the Company makes a corresponding adjustment to the carrying amount of right-of-use assets. The Company leases plants from the governments or platform companies held by the governments with conditional rent-free agreements executed with local governments and government platforms, in which conditions such as tax targets, employment targets and output targets are stipulated, thus variable lease payments are formed. These variable lease payments are not included in the measurement of lease liabilities and recognized in profit or loss when they are actually incurred. 2. The Company as a lessor At the commencement date of the lease, the Company classifies leases as finance leases and operating leases. Finance leases refer to the leases to which the Company has transferred substantially all the risks and rewards of ownership of the leased assets regardless whether the ownership has transferred or not. All other leases are classified as operating leases. The Company, when acting as a sub-lease lessor, classifies the sub-leases based on the right-of-use assets arising from the original leases.

内容: (1) Accounting treatment for operating lease Rent receipts from operating lease are recognized as rental income on a straight-line basis over the term of the relevant lease. Initial direct costs related to operating lease are capitalized when incurred, and are allocated to profit or loss on the same basis as rental income over the lease term. Variable lease payments not included in the rent receipts are recognized in profit or loss when incurred actually. An operating lease, if modified, is accounted for as a new lease from the effective date of the modification, with receipts in advance or rent receivables related to the lease before the modification recognized as the rent receipts of the new lease. (2) Accounting treatment for finance lease

内容: At the commencement date of the lease, the Company recognizes finance lease receivables and derecognizes assets held under finance leases. Lease receivables are presented at an amount equal to the net investment in the lease for the initial measurement. The net investment in the lease is the sum of any unguaranteed residual value and the present value of the rent receipts not received yet as of the commencement date of the lease discounted at the interest rate implicit in the lease. Interest incomes over the term of the relevant lease are calculated by the Company based on fixed periodic interest rate. The Company accounts for derecognition and impairment of finance lease receivables in accordance with Note “III. (10) Financial instruments”. Variable lease payments that are not included in the measurement of the net investment in the lease are recognized in profit or loss when incurred actually. The Company accounts for a finance lease modification as a separate lease if both of the following conditions exist: The modification has increased the scope of the lease by adding the right to use one or more leased assets; The consideration for the lease increases equivalents to the standalone price for the increase in scope of lease and any appropriate adjustments to that standalone price to reflect the circumstances of the particular contract. For a modification to a finance lease that is not accounted for as a separate lease, the Company accounts for the modification as follows: if the lease would have been classified as an operating lease had the modification been in effect at the commencement date of the lease, the Company accounts for the lease modification as a new lease from the effective date of the modification, and measures the carrying amount of the leased asset as the net investment in the lease immediately before the effective date of the lease modification; or if the lease would have been classified as a finance lease had the modification been in effect at the commencement date of the lease, the Company accounts for the lease modification in accordance with the requirements in Note “III. (10) Financial instruments - Policies on the contract modifications or re-negotiation”. 3. Sale and leaseback transactions The Company assesses and determines whether the transfer of an asset in the sale and leaseback transactions is accounted for as a sale of that asset pursuant to the principles stated in Note “III. (26) Revenue”. (1) The Company as a lessee If the transfer of an asset in the sale and leaseback transactions satisfies the requirements to be accounted for as a sale of the asset, the Company, as a lessee, measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right of use retained, and recognizes only the amount of any gain or loss that relates to the rights transferred to the lessor accordingly; and if the transfer of an asset in the sale and leaseback transactions does not satisfy the requirements to be accounted for as a sale of the asset, the Company, as a lessee, continues to recognize the transferred asset and a financial liability equal to the transfer proceeds. Please refer to Note “III. (10) Financial instruments” for accounting treatment of the financial liability. (2) The Company as a lessor If the transfer of an asset in the sale and leaseback transactions satisfies the requirements to be accounted for as a sale of the asset, the Company, as a lessor, accounts for the purchase of the asset and for the lease subject to the above policies stated in “2. The Company as a lessor”; and if the transfer of an asset in the sale and leaseback transactions does not satisfy the requirements to be accounted for as a sale of the asset,

内容: the Company, as a lessor, does not recognize the transferred asset and instead, recognizes a financial asset equal to the transfer proceeds. Please refer to Note “III. (10) Financial instruments” for accounting treatment of the financial asset. Accounting policies applicable prior to January 1, 2021 Leases are classified as finance leases and operating leases. Finance leases refer to the lease to which substantially all the risks and rewards of the asset ownership have transferred substantially. All other leases are classified as operating lease. 1. Accounting treatment for operating lease (1) Lease expenses paid by the Company for leasing in the asset are amortized using a straight-line method throughout the lease term including the rent-free period, and recognized in expenses for the current period. The initial direct expenses paid by the Company in connection with the lease transaction are recognized in expenses for the current period. When the asset lessor bears the lease-related expenses to be assumed by the Company, the Company deducts these expenses from total rent and then amortizes such deducted rent during the lease term, and recognizes the same in expenses for the current period. (2) Lease expenses received by the Company for leasing out the asset are allocated using a straight-line method throughout the lease term including the rent-free period, and recognized as the lease-related income. The initial direct expenses paid by the Company in connection with the lease transaction are recognized in expenses for the current period; if such initial direct expenses are of a large amount, the initial direct costs are capitalized and recognized in profit or loss by installments on the same basis as the recognition of the lease-related income throughout the lease term. When the Company bears the lease-related expenses to be assumed by the lessee, the Company deducts these expenses from total rent and then allocates such deducted rent during the lease term. 2. Accounting treatment for finance lease (1) Assets leased in under finance leases: At the inception of the lease, the Company records the leased asset at an amount equal to the lower of the fair value of the leased asset and the present value of the minimum lease payments, and recognizes a long-term payable at an amount equal to the minimum lease payments. The difference between the recorded amount of the leased asset and the recorded amount of the payable is accounted for as unrecognized finance charge. The Company amortizes unrecognized finance charge during the lease term using the effective interest method, and recognizes the same in financial expenses. The initial direct expenses incurred by the Company are recognized in the value of leased-in asset. (2) Assets leased out under finance leases: At the inception of the lease, the Company recognizes the difference between the sum of finance lease receivables and unguaranteed residual value and their present value as unearned finance income, and recognizes the same as lease revenue in each period over which the rent will be received. The initial direct expenses incurred by the Company in connection with the lease transactions are recognized in the finance lease receivable initially measured and reduces the amount of income recognized during the lease term. 43. Other significant accounting policies and accounting estimates

内容: 44. Changes in significant accounting policies and accounting estimates (1) Changes in significant accounting policies

内容: √ Applicable □ N/A Changes in accounting policies and Approval procedure Remarks

内容: associated reasons (1) Applying the Accounting Standards for Business Enterprises No.21 - Leases (revised in 2018)

内容: Examination and approval by the board of directors

内容: The Ministry of Finance of the People’s Republic of China (hereinafter referred to as the “Ministry of Finance”) revised and issued the Accounting Standards for Business Enterprises No.21 - Leases (hereinafter referred to as the “New Lease Standard”) in 2018, and the Company has implemented the New Lease Standard since January 1, 2021, according to which the Company chooses to not assess whether a contract is a lease contract or contains a lease at the date of initial application for contracts that have been concluded before the date of initial application. * The Company as a lessee The Company has elected to recognize the cumulative effect from the initial application of the New Lease Standard as an adjustment to the opening balances of retained earnings and other related items in the financial statements in the initial year of such application, with comparative information not restated. For the operating leases existing before the date of initial application of the New Lease Standard, the lease liability is measured at the present value of the remaining lease payments at the date of initial application of the New Lease Standard that is discounted at the Company’s incremental borrowing rate at the date of initial application of the New Lease Standard, and for each lease, the right-of-use asset is measured at either of the followings: * the carrying amount recognized by adopting the New Lease Standard from the commencement date of lease term, discounted by the Company’s incremental borrowing rate at the date of initial application of the New Lease Standard. * an amount equal to the lease liability, adjusted by the amount of any prepaid lease payments. For leases classified as operating leases before the date of initial application, the Company, at the same time of using aforementioned methods, adopts one or more of the following practical expedients to account for each lease: 1) accounted as short-term leases for the leases for which the lease term ends within 12 months of the date of initial application; 2) applied a single discount rate to leases with similar characteristics when measuring lease liabilities; 3) excluded initial direct costs from measuring the right-of-use assets; 4) determined the lease term according to the actual exercise or other updates of options before the date of initial application if the contract contains options to extend or terminate the lease; 5) adjusted the right-of-use assets by the amount of onerous contract provision recognized in the balance sheet before the date of initial application if the contract including leases is measured as an onerous contract before the date of initial application in accordance with Note “III. (24) Provisions” to the financial statements, as an alternative of testing the impairment of right-of-use assets; 6) accounted for lease modifications before the date of initial application according to the final

内容: arrangement of the lease modifications under the New Lease Standard without retrospective adjustments. In measuring the lease liabilities, the lease payments are discounted by the Company at the leasee’s incremental borrowing rate as at January 1, 2021. Unpaid minimum lease payment of operating lease with significant amount disclosed in the consolidated financial statements as at December 31, 2020 Present value discounted by the Company’s incremental borrowing rate as at January 1, 2021 Lease liabilities under the New Lease Standard as at January 1, 2021 Difference between the discounted present value and the lease liabilities 157,440,735.91

内容: For leases classified as finance lease before the date of initial application, the right-of-use asset and the lease liabilities are measured at the original carrying amount of the asset leased in under finance lease and obligations under finance lease respectively at the date of initial application. * The Company as a lessor For sub-lease classified as an operating lease before the date of initial application and still existing as at or after the date of initial application, the Company re-assesses the sub-lease by applying the remaining contract valid term and contract terms and conditions of the original lease and the sub-lease, and classifies the sub-lease subject to the New Lease Standard. For sub-lease classified as a financial lease, the Company accounts for it as new finance lease. Except sub-lease, the Company is not required to make any adjustments to leases with the Company as a lessor subject to the New Lease Standard. The Company accounts for leases by applying the New Lease Standard from the date of initial application. Main effects of the Company’s application of the New Lease Standard on the financial statements are stated as follows: Changes in accounting Approval Affected items of policies and associated procedure the financial reasons statements (1) Adjustments made by the Company, as a lessee, to operating leases existing before the date of initial application Prepayments Right-of-use assets Lease liabilities Amount affected on balance as at January 1, 2021 Combination -4,726,316.41 149,189,002.32 144,462,685.91 1,693,632.15 1,693,632.15 Parent company

内容: (2) Application of Interpretation No.14 of Accounting Standards for Business Enterprises On February 2, 2021, the Ministry of Finance released Interpretation No.14 of Accounting Standards for Business Enterprises (Cai Kuai [2021] No.1) (hereinafter referred to as the “Interpretation No.14”), which

内容: should come into force from the date of releasement. Relevant businesses transacted from the January 1, 2021 to the date of application shall be adjusted subject to the Interpretation No.14. Interpretation ① Public-private-partnership (“PPP”) project contracts Interpretation No.14 is applicable to PPP project contracts satisfying the requirements of “dual features” and “dual controls” as stated in the Interpretation No.14. Relevant PPP project contracts that were fulfilled before December 31, 2020 and have not been completed as of the effective date of Interpretation No.14 should be adjusted retrospectively, and in case of retrospective adjustment impracticable, the opening balance of retained earnings and that of other relevant line items in the financial statements for the current year of the application date should be adjusted based on the cumulative effect of applying of Interpretation No.14 from the earliest period when the retrospective adjustment is practicable, with no information in the comparable period restated. The Company’s application of such requirements has brought no material impact on the financial position and results of operation of the Company. ② Benchmark interest rate reform Interpretation No.14 introduces practical expedients for modifications of recognition basis of cash flows related to financial instrument contract and lease contract resulting from the benchmark interest rate reform. According to requirements of Interpretation No.14, transactions related to benchmark interest rate reform that occurred before December 31, 2020 should be adjusted retrospectively unless the retrospective adjustment is impracticable, with no comparative information in the financial statements of the prior period restated. On the effective date of Interpretation No.14, the difference between the original carrying amount and new carrying amount for financial assets and liabilities is recognized in the opening balance of retained earnings or other comprehensive income for the reporting period of the year when applying Interpretation No.14. The Company’s application of such requirements has brought no material impact on the financial position and results of operation of the Company. (3) Application of the Notice on Adjusting the Application Scope of Accounting Regulations on Rental Concessions Related to COVID-19 Epidemic On June 19, 2020, the Ministry of Finance released the Accounting Regulations on Rental Concessions Related to COVID-19 Epidemic (Cai Kuai [2020] No.10), which regulated that a company can choose to adopt practicable expedients to any reduction in lease payments directly resulting from COVID-19 epidemic, such as rental concession and delayed payment of rents, provided that such reduction satisfied relevant conditions. On May 26, 2021, the Ministry of Finance released the Notice on Adjusting the Application Scope of Accounting Regulations on Rental Concessions Related to COVID-19 Epidemic (Cai Kuai [2021] No.9), which should come into force from the date of releasement. According to this notice, the application scope of rental concessions related to COVID-19 epidemic is adjusted, hence the practical expedients only applicable to any reduction in lease payments due before June 30, 2021 can also be applied to any reduction in lease payments due before June 30, 2022, but other applicable conditions remain unchanged. The Company has chosen practical expedients to account for all lease contracts satisfying the conditions before the adjustment of the application scope and all similar lease contracts satisfying the conditions on and after the adjustment of the application scope. Meanwhile, the Company also retrospectively adjusts relevant lease contracts that have been accounted for by adopting lease modification requirements before the releasement of this notice, but makes no adjustments on comparative information in the financial

内容: statements of the prior period. For any rental concession incurred from January 1, 2021 to the effective date of this notice which has not accounted for subject to requirements of this notice, the Company will make adjustments retrospectively subject to requirements of this notice. (4) Application of presentation related to the centralized management of funds stipulated in Interpretation No.15 of Accounting Standards for Business Enterprises On December 30, 2021, the Ministry of Finance released Interpretation No.15 of Accounting Standards for Business Enterprises (Cai Kuai [2021] No.35) (hereinafter referred to as the “Interpretation No.15”), according to which the “presentation related to the centralized management of funds” should come into force from the date of releasement and financial statement information in comparative period shall be adjusted retrospectively. Interpretation No.15 makes clear regulations on the presentation and disclosure in the balance sheet of the balances related to the centralized management of funds of the parent company and its members through internal clearing houses, finance companies, etc. The implementation of these provisions has not had material impact on the Company’s financial position and operating results. (2) Changes in significant accounting estimates

内容: (3) Description of adjustments in opening balances of line items in financial statements of the year due to initial application of New Lease Standard since 2021

内容: √ Applicable □ N/A Did the line items of the opening assets and liabilities require adjustment? √ Yes □ No Consolidated balance sheet In RMB Item Current assets: Cash and bank balances Balances with clearing agencies Placements with banks and other financial institutions Held-for-trading financial assets Derivative financial assets Notes receivable 261,208,601.50 261,208,601.50 3,160,064,470.41 3,160,064,470.41 10,528,245,765.93 10,528,245,765.93 December 31, 2020 January 1, 2021 Adjusted amount

内容: Accounts receivable Receivable financing Prepayments Premiums receivable Amounts receivable under reinsurance contracts Reinsurer’s share of insurance contract reserves Other receivables Including: Interest receivable Dividends receivable Financial assets purchased under resale agreements Inventories Contract assets Held-for-sale assets Non-current assets due within one year Other current assets Total current assets Non-current assets: Loans and advances to customers Debt investments Other debt investments Long-term receivables Long-term equity investment Other investments in equity instruments Other non-current financial assets Investment properties Fixed assets

内容: Construction in progress Bearer biological assets Oil and gas assets Right-of-use assets Intangible assets Development expenditure Goodwill Long-term prepaid expenses Deferred tax assets Other non-current assets Total non-current assets Total assets Current liabilities: Short-term borrowings Loans from the central bank Taking from banks and other financial institutions Held-for-trading financial liabilities Derivative financial liabilities Notes payable Accounts payable Receipts in advance Contract liabilities Financial assets sold under repurchase agreements Customer deposits and deposits from banks and other financial institutions Funds from securities trading agency Funds from underwriting securities

内容: agency Employee benefits payable Taxes payable Other payables Including: Interest payable Dividends payable Fees and commissions payable Amounts payable under reinsurance contracts Held-for-sale liabilities Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: Insurance contract reserves Long-term borrowings Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities Long-term payables Long-term employee benefits payable Provisions Deferred income Deferred tax liabilities Other non-current liabilities Total non-current liabilities 1,360,598.63 425,345,982.64 966,092,212.95 150,019,923.33 5,513,441,205.94 1,360,598.63 425,345,982.64 966,092,212.95 150,019,923.33 5,657,903,891.85 144,462,685.91 144,462,685.91 144,462,685.91 1,495,199,238.41 2,475,423,249.98 1,495,199,238.41 2,475,423,249.98 278,527,714.63 623,257,555.89 33,592,712,483.74 278,527,714.63 623,257,555.89 33,592,712,483.74 1,397,632,139.23 237,421,491.63 146,162,097.14 1,397,632,139.23 237,421,491.63 146,162,097.14

内容: Total liabilities Owners’ equity: Share capital Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve Less: Treasury shares Other comprehensive income Special reserve Surplus reserve General risk reserve Unappropriated profit Total owners’ equity attributable to equity holders of the parent company Minority interests Total owners’ equity Total liabilities and owners’ equity Description of adjustment

内容: The Company has implemented the New Lease Standard since January 1, 2021. Balance sheet of the parent company In RMB Item Current assets: Cash and bank balances Held-for-trading financial assets Derivative financial assets Notes receivable Accounts receivable 147,912,632.85 6,923,152,599.31 147,912,632.85 6,923,152,599.31 1,890,655,455.45 2,238,600,282.87 1,890,655,455.45 2,238,600,282.87 December 31, 2020 January 1, 2021 Adjusted amount

内容: Receivable financing Prepayments Other receivables Including: Interest receivable Dividends receivable Inventories Contract assets Held-for-sale assets Non-current assets due within one year Other current assets Total current assets Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investment Other investments in equity instruments Other non-current financial assets Investment properties Fixed assets Construction in progress Bearer biological assets Oil and gas assets Right-of-use assets Intangible assets Development expenditure Goodwill Long-term prepaid expenses 53,174,339.31 727,403.48 53,174,339.31 727,403.48 52,410,346.09 1,693,632.15 52,410,346.09 1,693,632.15 142,429,101.80 5,938,197.42 142,429,101.80 5,938,197.42 13,603,581,726.93 13,603,581,726.93 143,001,991.83 12,345,985,142.54 143,001,991.83 12,345,985,142.54 11,543,626.19 151,961,355.37 11,543,626.19 151,961,355.37 295,993,095.73 554,707,729.13 295,993,095.73 554,707,729.13

内容: Deferred tax assets Other non-current assets Total non-current assets Total assets Current liabilities: Short-term borrowings Held-for-trading financial liabilities Derivative financial liabilities Notes payable Accounts payable Receipts in advance Contract liabilities Employee benefits payable Taxes payable Other payables Including: Interest payable Dividends payable Held-for-sale liabilities Non-current liabilities due within one year Other current liabilities Total current liabilities Non-current liabilities: Long-term borrowings Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities Long-term payables

内容: Long-term employee benefits payable Provisions Deferred income Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Owners’ equity: Share capital Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve Less: Treasury shares Other comprehensive income Special reserve Surplus reserve Unappropriated profit Total owners’ equity Total liabilities and owners’ equity Description of adjustment 733,067,797.73 5,031,699,596.69 15,675,917,259.37 26,916,476,412.30 733,067,797.73 5,031,699,596.69 15,675,917,259.37 26,918,170,044.45 1,693,632.15 80,735,015.01 80,735,015.01 2,303,197,437.38 2,303,197,437.38 6,999,768,186.00 527,449,226.56 6,999,768,186.00 527,449,226.56 2,683,803,852.17 11,240,559,152.93 2,685,497,484.32 11,242,252,785.08 1,693,632.15 1,693,632.15 8,397,770.66 19,714,831.53 8,397,770.66 19,714,831.53

内容: The Company has implemented the New Lease Standard since January 1, 2021. (4) Description of retrospective adjustments in comparative data in prior periods due to initial application of New Lease Standard in 2021

内容: 1. Major categories of taxes and tax rates

内容: Tax category Taxation basis VAT payable is the output tax based on the sales of goods and taxable labor income Value added tax calculated pursuant to the tax law, net of the input tax that is allowed to be deducted in the current period Urban maintenance and construction tax Enterprise income tax Subject to the actual payment of VAT and consumption tax Subject to the taxable income amount 7 %, 5% 25%, 20%, 19%, 17%, 16.5%, 15%, 0% 13%, 9%, 6%, 5%, 3%, 0% Tax rate

内容: Disclosure of taxpayers (if any) with different rates of enterprise income tax: Taxpayer Luxshare Precision Industry Co., Ltd. Xiexun Electronic (Ji’an) Co., Ltd. ASAP TECHNOLOGY (JIANGXI) CO., LTD. Lanto Electronic Limited. Bozhou Lanto Electronic Limited. HUZHOU JIUDING ELECTRONIC CO., LTD. Luxshare Automation (Jiangsu) Ltd. MERRY ELECTRONICS (SUZHOU) CO., LTD. Luxshare Electronic Technology (Kunshan) Co., Ltd. Yongxin County Boshuo Electronics Co., Ltd. Chuzhou Luxshare Precision Industry Co., Ltd. M&A MERRY ELECTRONICS (HUIZHOU) CO., LTD. FUJIAN JK WIRING SYSTEMS CO., LTD. Jiangxi Luxshare Intelligent Manufacture Co., Ltd. Jiangxi ASAP Electronic Co., Ltd. Kunshan-Luxshare RF Technology Co., Ltd. Suining Luxshare Precision Industry Co., Ltd. Baoding Luxshare Precision Industry Co., Ltd. Luxshare Precision Industry (Shanxi) Co., Ltd. Dongguan Xuntao Electronic Co., Ltd. Kunshan Luxshare Precision Industry Co., Ltd. 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 Rate of enterprise income tax

内容: Luxshare iTech (Zhejiang) Co., Ltd. Shenzhen Luxshare Acoustics Technology Ltd. Enshi Luxshare Precision Industry Co., Ltd. Luxshare Precision Limited Luxshare Precision Technology Co., Ltd. Taiwan Luxshare Precision Limited ICT-LANTO LIMITED(HK) Luxshare Standard Limited (HK) Luxshare Technologies Limited Luxshare-ICT (Japan) Yunding Technology Co., Ltd. Luxis Technology Limited Luxshare Precision Investment Co., Ltd. SPEED TECH CORP. Luxshare-ICT (India) Luxshare Liantao (India) Co., Ltd. Luxshare ICT, Inc. Luxshare-ICT Europe Limited Suk kunststofftechnik GmbH Korea LuxshareICT Co., Ltd Xuancheng Luxshare Precision Industry Co., Ltd. LUXSHARE-ICT (VIETNAM) LIMITED. LUXSHARE-ICT (VAN TRUNG) COMPANY LIMITED. LUXSHARE-ICT (NGHE AN) LIMITED. Caseteck Singapore PTE. LTD. Other subsidiaries

内容: 2. Tax incentives 1. The Company was identified as a high-tech enterprise by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Committee, and Shenzhen Tax Service, State Taxation Administration on December 23, 2021, with the High-tech Enterprise Certificate No.GR202144203830 valid for three years. As provided for in the Notice by the Ministry of Finance and the State Administration of Taxation on Preferential Policies for Enterprise Income Taxes Related to Enterprises’ Technological Innovation and the Notice by the State Administration of Taxation on Issues Concerning the Implementation of Preferential Enterprise Income Taxes for High-tech Enterprises, the Company enjoys an enterprise income tax of 15% for 2021.

内容: 2. The subsidiary, Xiexun Electronic (Ji’an) Co., Ltd. (“Ji’an Xiexun”), was identified as a high-tech enterprise by Science and Technology Department of Jiangxi Province, Jiangxi Provincial Finance Bureau, and Jiangxi Provincial Tax Service, State Taxation Administration on September 14, 2020, with the High-tech Enterprise Certificate No.GR202036001325 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 3. The subsidiary, ASAP TECHNOLOGY (JIANGXI) CO., LTD. (“ASAP JIANGXI”), was identified as a high-tech enterprise by Science and Technology Department of Jiangxi Province, Jiangxi Provincial Finance Bureau, and Jiangxi Provincial Tax Service, State Taxation Administration on September 16, 2019, with the High-tech Enterprise Certificate No.GR201936000710 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 4. The subsidiary, Lanto Electronic Limited. (“Lanto Kunshan”), was identified as a high-tech enterprise by the Jiangsu Provincial Department of Science and Technology, Jiangsu Provincial Department of Finance, and Jiangsu Provincial Tax Service, State Taxation Administration on December 2, 2020, with the High-tech Enterprise Certificate No.GF202032003737 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 5. The sub-subsidiary, Bozhou Lanto Electronic Limited. (“Bozhou Lanto”), was identified as a high-tech enterprise by Anhui Provincial Department of Science and Technology, Anhui Provincial Department of Finance, and Anhui Provincial Tax Service, State Taxation Administration on September 18, 2021, with the High-tech Enterprise Certificate No.GR202134001185 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 6. The sub-subsidiary, HUZHOU JIUDING ELECTRONIC CO., LTD. (“HUZHOU JIUDING”), was identified as a high-tech enterprise by the Zhejiang Provincial Department of Science and Technology, Zhejiang Provincial Department of Finance, Zhejiang Provincial Tax Service, State Taxation Administration and Local Taxation Bureau of Zhejiang Province on December 1, 2020, with the High-tech Enterprise Certificate No.GR202033002604 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 7. The subsidiary, Luxshare Automation (Jiangsu) Ltd. (“Jiangsu Automation”), was identified as a high-tech enterprise by Jiangsu Provincial Department of Science and Technology, Jiangsu Provincial Department of Finance, and Jiangsu Provincial Tax Service, State Taxation Administration on November 30, 2021, with the High-tech Enterprise Certificate No.GR202132006272 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 8. The sub-subsidiary, MERRY ELECTRONICS (SUZHOU) CO., LTD. (“MERRY SUZHOU”), was identified as a high-tech enterprise by Jiangsu Provincial Department of Science and Technology, Jiangsu Provincial Department of Finance, and Jiangsu Provincial Tax Service, State Taxation Administration on December 2, 2020, with the High-tech Enterprise Certificate No.GR202032005557 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 9. The subsidiary, Luxshare Electronic Technology (Kunshan) Co., Ltd. (“Luxshare Electronic Kunshan”),

内容: was identified as a high-tech enterprise by Jiangsu Provincial Department of Science and Technology, Jiangsu Provincial Department of Finance, and Jiangsu Provincial Tax Service, State Taxation Administration on November 30, 2021, with the High-tech Enterprise Certificate No.GR202132006555 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 10. The sub-subsidiary, Yongxin County Boshuo Electronics Co., Ltd. (“Yongxin Boshuo”), was identified as a high-tech enterprise by Jiangxi Provincial Department of Science and Technology, Jiangxi Provincial Department of Finance, and Jiangxi Provincial Tax Service, State Taxation Administration on December 2, 2020, with the High-tech Enterprise Certificate No.GR202036001897 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 11. The subsidiary, Chuzhou Luxshare Precision Industry Co., Ltd. (“Luxshare Chuzhou”), was identified as a high-tech enterprise by Anhui Provincial Department of Science and Technology, Anhui Provincial Department of Finance, and Anhui Provincial Tax Service, State Taxation Administration on September 9, 2019, with the High-tech Enterprise Certificate No.GR201934001733 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 12. The sub-subsidiary, M&A MERRY ELECTRONICS (HUIZHOU) CO., LTD. (“M&A MERRY HUIZHOU”), was identified as a high-tech enterprise by Guangdong Province Department of Science and Technology, Guangdong Provincial Department of Finance, and Guangdong Provincial Tax Service, State Taxation Administration on December 20, 2021, with the High-tech Enterprise Certificate No.GR202144005561 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 13. The subsidiary, FUJIAN JK WIRING SYSTEMS CO., LTD. (“FUJIAN JK”), was identified as a high-tech enterprise by Fujian Provincial Department of Science and Technology, Fujian Provincial Department of Finance, and Fujian Provincial Tax Service, State Taxation Administration on December 1, 2020, with the High-tech Enterprise Certificate No.GR202035000014 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 14. The subsidiary, Jiangxi Luxshare Intelligent Manufacture Co., Ltd. (“Intelligent Manufacture Jiangxi”), was identified as a high-tech enterprise by Jiangxi Provincial Department of Science and Technology, Jiangxi Provincial Department of Finance, and Jiangxi Provincial Tax Service, State Taxation Administration on November 3, 2021, with the High-tech Enterprise Certificate No.GR202136000345 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 15. The sub-subsidiary, Jiangxi ASAP Electronic Co., Ltd. (“Boshuo Electronics”), was identified as a high-tech enterprise by Jiangxi Provincial Department of Science and Technology, Jiangxi Provincial Department of Finance, and Jiangxi Provincial Tax Service, State Taxation Administration on November 3, 2021, with the High-tech Enterprise Certificate No.GR202136000645 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 16. The sub-subsidiary, Kunshan-Luxshare RF Technology Co., Ltd. (“Kunshan RF”), was identified as a high-tech enterprise by Jiangsu Provincial Department of Science and Technology, Jiangsu Provincial Department of Finance, and Jiangsu Provincial Tax Service, State Taxation Administration on November

内容: 30, 2021, with the High-tech Enterprise Certificate No.GR202132006790 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 17. The sub-subsidiary, Suining Luxshare Precision Industry Co., Ltd. (“Suining Luxshare”), was identified as a high-tech enterprise by Sichuan Provincial Department of Science and Technology, Sichuan Provincial Department of Finance, and Sichuan Provincial Tax Service, State Taxation Administration on December 15, 2021, with the High-tech Enterprise Certificate No.GR202151003570 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 18. The sub-subsidiary, Baoding Luxshare Precision Industry Co., Ltd. (“Baoding Luxshare”), was identified as a high-tech enterprise by Hebei Provincial Department of Science and Technology, Hebei Provincial Finance Bureau, and Hebei Provincial Tax Service, State Taxation Administration on September 10, 2019, with the High-tech Enterprise Certificate No.GR201913000851 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 19. The sub-subsidiary, Luxshare Precision Industry (Shanxi) Co., Ltd. (“Shanxi Luxshare”), was identified as a high-tech enterprise by Shanxi Science and Technology Department, Shanxi Provincial Department of Finance, and Shanxi Provincial Tax Service, State Taxation Administration on September 16, 2019, with the High-tech Enterprise Certificate No.GR201914000049 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 20. The sub-subsidiary, Dongguan Xuntao Electronic Co., Ltd. (“Dongguan Xuntao”), was identified as a high-tech enterprise by the Department of Science and Technology of Guangdong Province, Department of Finance of Guangdong Province, and Guangdong Provincial Tax Service, State Taxation Administration on December 2, 2019, with the High-tech Enterprise Certificate No.GR201944005411 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 21. The subsidiary, Kunshan Luxshare Precision Industry Co., Ltd. (“Kunshan Luxshare”), was identified as a high-tech enterprise by Jiangsu Provincial Department of Science and Technology, Jiangsu Provincial Department of Finance, and Jiangsu Provincial Tax Service, State Taxation Administration on December 2, 2020, with the High-tech Enterprise Certificate No.GR202032002892 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 22. The subsidiary, Luxshare iTech (Zhejiang) Co., Ltd. (“iTech Zhejiang”), was identified as a high-tech enterprise by Zhejiang Provincial Department of Science and Technology, Zhejiang Provincial Department of Finance, and Zhejiang Provincial Tax Service, State Taxation Administration on December 1, 2020, with the High-tech Enterprise Certificate No.GR202033001987 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 23. The subsidiary, Shenzhen Luxshare Acoustics Technology Ltd. (“Luxshare Acoustics”), was identified as a high-tech enterprise by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Committee, and Shenzhen Tax Service, State Taxation Administration on December 11, 2020, with the High-tech Enterprise Certificate No.GR202044204060 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an

内容: enterprise income tax rate of 15% for 2021. 24. The subsidiary, Enshi Luxshare Precision Industry Co., Ltd. (“Luxshare Enshi”), was qualified for tax reduction in accordance with the Announcement on the Continuation of Preferential Enterprise Income Tax Policies in the Western Region of China issued by the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission which provided that enterprise income tax should be levied at a reduced rate of 15% on enterprises engaged in the encouraged industries in the western region for the period from January 1, 2021 to December 31, 2030. Since it is located at Enshi Tujia and Miao Autonomous Prefecture, Hubei Province where enterprises can apply the preferential enterprise income tax policies in the Western Region of China, it enjoys an enterprise income tax rate of 15% for 2021. 25. The sub-subsidiary, Xuancheng Luxshare Precision Industry Co., Ltd. (“Luxshare Xuancheng”), was identified as a high-tech enterprise by Anhui Provincial Department of Science and Technology, Anhui Provincial Department of Finance, and Anhui Provincial Tax Service, State Taxation Administration on September 18, 2021, with the High-tech Enterprise Certificate No.GR202134004975 valid for three years. According to relevant provisions of the national high-tech enterprise income tax preferential policies in China, it enjoys an enterprise income tax rate of 15% for 2021. 3. Others

内容: Note 1. As per the tax law in Hong Kong, Hong Kong adopts a territorial source principle of taxation, under which only profits which have a source in Hong Kong are taxable there, while profits sourced elsewhere are not subject to Hong Kong gain tax. Luxshare Technologies Limited, Luxshare Standard Limited (HK), ICT-LANTO LIMITED(HK), Luxshare Precision Limited, Yunding Technology Co., Ltd., Luxis Technology Limited, and Luxshare Precision Investment Co., Ltd. are not required to pay income tax in Hong Kong. Note 2. Luxshare-ICT (Japan) is entitled to the graded tax rate for the capital amounting to not more than JPY100 million. Corporate income tax (national tax): at 15% for the portion of taxable income within JPY8 million (inclusive), and at 23.2% for the portion in excess thereof. Local corporate income tax (national tax): at 10.3% of total corporate taxable income (national tax). Note 3. The applicable tax rate of Luxshare ICT, Inc is shown as follows:

内容: Applicable tax rate Income tax (federal) Local tax (state) 21% 8.84%

内容: Note 4. The applicable tax rate of Korea LuxshareICT Co., Ltd is shown as follows:

内容: Total profits Less than KRW200 million KWR200 million~KWR20 billion KWR20 billion~KWR300 billion Above KWR300 billion

内容: Local tax 10% of corporate taxable income

内容: VII. Notes to items in consolidated financial statements

内容: Bank deposits include interest incurred from fixed-term deposits amounting to RMB9,647,499.97; The breakdown of cash and bank balances which are restricted in use by mortgage, pledge or freezing, etc., and which are deposited abroad with restricted repatriation is as follows:

内容: Item Security deposit of bank acceptance bills Credit deposits Performance deposit Term deposit or call deposit used for guarantee Total

内容: In RMB Item Financial assets at fair value through profit or loss Including: Derivative financial assets Bank wealth management Including: Total Other descriptions: 2,107,118,105.04 3,160,064,470.41 115,918,643.05 1,991,199,461.99 305,388,419.95 2,854,676,050.46 Closing balance 2,107,118,105.04 Opening balance 3,160,064,470.41

内容: In RMB Item Other descriptions: Closing balance Opening balance

内容: 4. Notes receivable (1) Categorized presentation of notes receivable

内容: In RMB Item Bank acceptance bill Commercial acceptance bill Total Closing balance 137,325,482.78 170,511,151.86 307,836,634.64 Opening balance 251,899,317.40 9,309,284.10 261,208,601.50 In RMB Closing balance Book balance Category Amount Proportio n Bad-debt provision Provision Amount proportio n Book value Amount Proportio n Amount Book balance Opening balance Bad-debt provision Provision proportio n Book value

内容: Provision for bad debts made individually: In RMB Closing balance Description Book balance Provision for bad debts made by group: In RMB 212 Bad-debt provision Provision proportion Reason for provision

内容: Closing balance Description Book balance Descriptions on basis for determining the group: If the bad-debt provision of notes receivable is made according to the general model of expected credit loss, please disclose the relevant information of bad-debt provision with reference to the disclosure method of other receivables: □ Applicable √ N/A Bad-debt provision Provision proportion

内容: (2) Bad-debt provision made, recovered or reversed in the current period

内容: Bad-debt provision in the current period: In RMB Amount of change in the current period Category Opening balance Provision Recovery or reversal Closing balance Write-off Others

内容: Including significant amounts recovered or reversed from the current provision for bad debts: □ Applicable √ N/A

内容: (3) Notes receivable pledged by the Company at the end of the period

内容: In RMB Item Bank acceptance bill Total Pledged amount at the end of the period 51,933,961.58 51,933,961.58

内容: (4) Notes receivable that have been endorsed or discounted by the Company at the end of the period and have not yet matured on the balance sheet date

内容: In RMB Item Bank acceptance bill Total Derecognized amount at the end of the period 478,321,177.81 478,321,177.81 Amount not derecognized at the end of the period

内容: (5) Notes which the Company transfers into accounts receivable at the end of the period because of drawers’ non-performance

内容: In RMB Item Other descriptions 213 Amount transferred to accounts receivable at the end of the period

内容: (6) Notes receivable actually written off in the current period

内容: In RMB Item Including the write-off of significant notes receivable: In RMB Whether the funds Entity name Nature of notes receivable Write-off amount Reasons for write-off Procedures for write-off are generated by related-party transactions Instructions on the write-off of notes receivable: Write-off amount

内容: 5. Accounts receivable (1) Categorized disclosure of accounts receivable

内容: In RMB Closing balance Book balance Category Amount Proportio n Bad-debt provision Provision Amount proportio n Book value Amount Proportio n Book balance Opening balance Bad-debt provision Provision Amount proportio n Book value

内容: Closing balance Description Book balance Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Total 30,988,680.56 3,884,072.10 4,290,486.28 241,403.36 145,149.65 39,549,791.95 Bad-debt provision 30,988,680.56 3,884,072.10 4,290,486.28 241,403.36 145,149.65 39,549,791.95 -Provision proportion Reason for provision 100.00% Unrecoverable 100.00% Unrecoverable 100.00% Unrecoverable 100.00% Unrecoverable 100.00% Unrecoverable --

内容: Provision for bad debts made individually: In RMB Closing balance Description Book balance Provision for bad debts made by group: In RMB Closing balance Description Book balance Undue 1 to 60 days overdue 61 to 120 days overdue 121 to180 days overdue 181 to 365 days overdue 1 to 2 years (excluding 1 year) Over 2 years Total 31,337,853,591.16 274,521,348.60 34,491,417.46 22,644,836.94 5,783,173.47 1,192,149.88 926,992.27 31,677,413,509.78 Bad-debt provision 16,204,622.15 13,726,067.48 10,347,425.22 9,057,934.76 2,891,586.76 1,072,934.89 926,992.27 54,227,563.53 -Provision proportion 0.05% 5.00% 30.00% 40.00% 50.00% 90.00% 100.00% Bad-debt provision Provision proportion Reason for provision

内容: Descriptions on basis for determining the group:

内容: Please refer to Note V, 10 Test and accounting treatment of impairment of financial assets.

内容: Provision for bad debts made by group: In RMB Closing balance Description Book balance Descriptions on basis for determining the group: If the bad-debt provision for accounts receivable is made according to the general model of expected credit loss, please refer to the disclosure method of other receivables to disclose the relevant information of bad debt provision: □ Applicable √ N/A Disclosure by aging In RMB 215 Bad-debt provision Provision proportion

内容: Aging Within 1 year (including 1 year) 1 to 2 years 2 to 3 years Over 3 years 3 to 4 years 4 to 5 years Total

内容: Bad-debt provision in the current period: In RMB Amount of change in the current period Category Opening balance Provision Accounts receivable Total Recovery or reversal Closing balance Write-off Others

内容: Including significant amounts recovered or reversed from the current provision for bad debts: In RMB Entity name Amount recovered or reversed Recovery method

内容: (3) Accounts receivable actually written off in the current period

内容: In RMB Item Including the write-off of significant accounts receivable: In RMB Whether the funds Entity name Nature of accounts receivable Write-off amount Reasons for write-off Procedures for write-off are generated by related-party transactions Descriptions on the write-off of accounts receivable: Write-off amount

内容: (4) Accounts receivable with top five closing balance - by debtor

内容: Entity name Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Total

内容: Proportion in total closing balance of accounts receivable 56.35% 5.71% 5.31% 3.31% 2.64% 73.32%

内容: (5) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement

内容: (6) Accounts receivable derecognized due to transfer of financial assets

内容: Amount of derecognition 14,077,187,202.39

内容: Gains or losses related to derecognition -30,110,522.87 -30,110,522.87

内容: In 2021, the Company sold the accounts receivable of specific customers to banks and financial institutions. As of December 31, 2021, the accounts receivable derecognized for the specific customer’s amount to RMB14,077,187,202.39. 6. Receivables financing

内容: In RMB Item Closing balance Opening balance

内容: Increase and decrease as well as fair value changes of receivables financing in the current period □ Applicable √ N/A If the provision for impairment of receivables financing is made according to the general model of expected credit loss, please refer to the disclosure method of other receivables to disclose the relevant information of impairment provision: □ Applicable √ N/A Other descriptions:

内容: 7. Prepayments (1) Presentation of prepayments by aging

内容: Opening balance Proportion 99.05% 0.70% 0.10% 0.15% --

内容: Reasons for untimely settlement of prepayments in significant amount with aging over 1 year:

内容: (2) Prepayments with top five closing balance - by prepayment beneficiary Prepayment receiver Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Total

内容: Proportion in total closing balance of prepayments (%) 14.49 10.52 7.11 6.67 6.61 45.40

内容: In RMB Item Other receivables Total Closing balance 598,456,702.88 598,456,702.88 Opening balance 407,990,780.79 407,990,780.79

内容: (1) Interest receivable 1) Classification of interest receivable

内容: Whether there is Borrower Closing balance Overdue time Reasons for delay impairment and its judgment basis Other descriptions:

内容: (2) Dividends receivable 1 ) Classification of dividends receivable

内容: In RMB Item (or Investee) Closing balance Opening balance

内容: 2) Significant dividends receivable with aging over 1 year

内容: In RMB Reasons for non-recovery Whether there is impairment and its judgment basis

内容: (3) Other receivables 1) Classification of other receivables by nature

内容: In RMB Nature of receivables Reserve fund Security deposit Export tax rebate receivable Disbursement Transfer funds of fixed assets Insurance indemnity Others Closing book balance 731,313.00 137,059,171.76 187,123,564.48 56,222,486.93 1,727,939.28 59,200,000.00 160,733,783.92 195,784,468.71 219 Opening book balance 2,150,958.86 82,843,142.41 52,519,780.76 61,811,236.98 15,068,375.17

内容: In RMB Stage I Bad-debt provision 12-month ECL Balance as at January 1, 2021 Balance as at January 1, 2021 in the current period Provision in the current period Reversal in the current period Other changes Balance as at December 31, 2021 2,250,179.37 2,250,179.37 —— —— —— —— Stage II Lifetime ECL (without credit impaired) Stage III Lifetime ECL (with credit impaired) 2,187,182.10 Total

内容: Changes in book balance of provision for loss with significant changes in the current period □ Applicable √ N/A Disclosure by aging In RMB Aging Within 1 year (including 1 year) 1 to 2 years 2 to 3 years Over 3 years Over 5 years Total Book balance 602,154,849.94 23,540.43 467,449.00 152,420.00 152,420.00 602,798,259.37

内容: 3) Bad-debt provision made, recovered or reversed in the current period

内容: Bad-debt provision in the current period: In RMB Category Opening balance Provision Amount of change in the current period Closing balance Recovery or Write-off Others

内容: Including significant amounts reversed or recovered from the current provision for bad debts: In RMB Entity name Amount reserved or recovered Recovery method

内容: 4) Other receivables actually written off in the current period

内容: In RMB Item Including the write-off of significant other receivables: In RMB Whether the funds Entity name Nature of other receivables Write-off amount Reasons for write-off Procedures for write-off are generated by related-party transactions Descriptions on the write-off of other receivables: Write-off amount

内容: 5) Other receivables with top five closing balance - by debtor

内容: In RMB Nature of receivables Export tax rebate Equity transfer funds Insurance indemnity Security deposit Borrowings -Proportion in total Closing balance Aging closing balance of other receivables 187,123,564.48 Undue 142,500,000.00 Undue 59,200,000.00 Undue 32,716,869.40 Undue 30,157,083.33 Undue 451,697,517.21 -31.04% 23.64% 9.82% 5.43% 5.00% 74.93% Closing balance of bad-debt provision 935,617.82 712,500.00 296,000.00 163,584.35 150,785.42 2,258,487.59

内容: Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Total

内容: 6) Receivables involving government grants

内容: In RMB Entity name Name of government grant Closing balance Aging at the end of the period Estimated time, amount and basis of collection

内容: 7) Other receivables derecognized due to transfer of financial assets

内容: 8) Amount of assets and liabilities formed by transferring other receivables and continuing involvement

内容: Whether the Company need to comply with the disclosure requirements for the real estate industry No

内容: In RMB Closing Balance Provision for decline in value Item Book balance of inventories or provision for impairment of contract performance cost Raw material Products in process Goods on hand Revolving materials Goods sold Materials in transit Work in process outsourced Total 6,531,836,331.00 3,386,085,829.05 10,741,507,248.2 3 215,566,686.58 78,396,684.90 241,533,661.04 161,394,242.96 6,370,442,088.04 3,139,313,968.65 50,039,777.32 3,336,046,051.73 2,047,580,192.49 10,602,096,163.4 3 215,449,952.58 78,153,226.00 241,533,661.04 Book value Book balance Opening Balance Provision for decline in value of inventories or provision for impairment of contract performance cost 30,816,233.39 3,108,497,735.26 31,348,190.65 2,016,232,001.84 Book value

内容: (2) Provision for decline in value of inventories and provision for impairment of contract performance cost

内容: Other items with amount increased in current period are included due to changes in the scope of consolidation.

内容: (3) Descriptions on closing balance of inventories containing capitalized amount of borrowing costs (4) Descriptions on current amortization amount of contract performance costs 10. Contract assets

内容: In RMB Closing Balance Item Book balance Provision for impairment Book value Book balance Opening Balance Provision for impairment Book value

内容: The amount of and reasons for significant changes in the book value of contract assets in the current period: In RMB Item Change amount Reason for change

内容: If the bad-debt provision of contract assets is made according to the general model of expected credit loss, please refer to the disclosure method of other receivables to disclose the relevant information of bad debt provision: □ Applicable √ N/A Provision for impairment of contract assets in the current period In RMB Item Provision in the current Reversal Write off/cancellation Reason

内容: In RMB Item Other descriptions: Closing book balance Provision for impairment Closing book value Fair value Estimated disposal costs Estimated disposal time

内容: 12. Current portion of non-current assets

内容: In RMB Item Significant debt investments/other debt investments In RMB Closing Balance Debt item Face value Coupon rate Other descriptions: Effective interest rate Maturity date Opening Balance Face value Coupon rate Effective interest rate Maturity date Closing Balance Opening Balance

内容: In RMB Closing Balance Item Book balance Principal Interest 1,403,057,083.33 61,222,123.30 Provision for impairment Book value 1,403,057,083.33 61,222,123.30 Book balance Opening Balance Provision for impairment Book value

内容: Significant debt investments In RMB Closing Balance Debt item Face value Coupon rate Provision for impairment In RMB Stage I Bad-debt provision 12 -month ECL Balance as at January 1, 2021 in the current period Changes in book balance of provision for loss with significant changes in the current period □ Applicable √ N/A Other descriptions: —— —— —— —— Stage II Lifetime ECL (without credit impaired) Stage III Lifetime ECL (with credit unimpaired) Total Effective interest rate Maturity date Opening Balance Face value Coupon rate Effective interest rate Maturity date

内容: In RMB Cumulative Changes in Item Opening Balance Accrued interest fair value in the current period Closing Balance Cost provision for Cumulative fair value loss Remarks other comprehensi ve income Other significant debt investments In RMB Closing Balance Other debt item Face value Coupon rate Provision for impairment In RMB Stage I Bad-debt provision 12 -month ECL Balance as at January 1, —— Stage II Lifetime ECL (without credit impaired) —— Stage III Lifetime ECL (with credit unimpaired) —— —— 225 Total Effective interest rate Maturity date Opening Balance Face value Coupon rate Effective interest rate Maturity date changes in recognized in

内容: 2021 in the current period Changes in book balance of provision for loss with significant changes in the current period □ Applicable √ N/A Other descriptions:

内容: 16. Long-term receivables (1) Long-term receivables

内容: In RMB Closing Balance Item Book balance Impairment of bad-debt provision In RMB Stage I Bad-debt provision 12 -month ECL Balance as at January 1, 2021 in the current period Changes in book balance of provision for loss with significant changes in the current period □ Applicable √ N/A —— —— —— —— Stage II Lifetime ECL (without credit impaired) Stage III Lifetime ECL (with credit unimpaired) Total Bad-debt provision Book value Book balance Opening Balance Bad-debt provision Book value Discount rate range

内容: (2) Long-term receivables derecognized due to transfer of financial assets (3) Amount of assets and liabilities formed by transferring long-term receivables and continuing involvement

内容: In RMB Increase and decrease in the current period Opening Investee balance (book value) Additiona l investmen t Reduced investmen t Investme or loss recognize Other Other changes in equity nsive income Closing Declared Provision cash or profits for nt dividends impairme Other balance (book value) Closing balance of provision for impairme

内容: equity method I. Joint ventures Riyimao Industrial Co., Ltd. Xuande Energy Co., Ltd. Subtotal 86,236,93 9.01 86,236,93 9.01

内容: 18. Other investments in equity instruments

内容: In RMB Item Beijing Xloong Technologies Co., Ltd. Beijing Wiparking Technology Co., Ltd. Jingtuo Liyin Technology (Beijing) Co., Ltd. Zhejiang Tony Electronic Co., Ltd Xuande Energy Co., Ltd. Asia Pacific Emerging Industry Investment Co., Ltd. Total Closing Balance 10,979,152.89 9,817,127.78 3,214,196.57 210,278,829.12 749,467.66 937,374.40 235,976,148.42 138,074,571.56 Opening Balance 10,977,900.79 9,150,443.30 3,724,908.43 114,221,319.04

内容: Itemized disclosure of non-trading equity instrument investments in the current period In RMB Reasons for being Amount of other Item Recognized dividend income Cumulative gains Cumulative losses comprehensive income carried over to retained earnings designated as equity instruments at fair value through other comprehensive income Beijing Xloong Technologies Co., 979,152.89 Not for short-term trading 228 Reasons for carry-over of other comprehensive income to retained earnings

内容: Ltd. Beijing Wiparking Technology Co., Ltd. Jingtuo Liyin Technology (Beijing) Co., Ltd. Zhejiang Tony Electronic Co., Ltd Xuande Energy Co., Ltd. Asia Pacific Emerging Industry Investment Co., Ltd. Other descriptions: 205,568.60 190,911,536.60 214,196.57 182,872.22

内容: purposes Not for short-term trading purposes

内容: Not for short-term trading purposes Not for short-term trading purposes Not for -280,153.40 short-term trading purposes

内容: In RMB Item Financial assets at fair value through profit or loss Total Other descriptions: Closing Balance 5,700,000.00 5,700,000.00 Opening Balance

内容: 20. Investment properties (1) Investment properties measured at cost

内容: √ Applicable □ N/A In RMB Item I. Original carrying amount Buildings Land use right Construction in progress Total

内容: 1. Opening Balance 2. Increase in the current period (1) Purchase (2) Transfer from inventories\fixed assets\construction in progress (3) Increase in business combination

内容: 3. Decrease in the current period (1) Disposal (2) Other transfer out

内容: 4. Closing Balance II. Accumulated depreciation and amortization 1. Opening Balance 2. Increase in the current period (1) Provision or amortization

内容: 4. Closing Balance III. Provision for impairment 1. Opening Balance 2. Increase in the current period

内容: (2) Investment properties measured at fair value

内容: (3) Investment properties without title certificate

内容: In RMB Item Other descriptions Book value Reasons for not obtaining the title certificate

内容: In RMB Office equipment Machinery equipment Computer equipment Auxiliary Transportati production equipment on equipment Other equipment Mould equipment

内容: 1. Opening Balance 2. Increase in the current period (1) Purchase (2) Transfer in from construction in progress (3) Increase in business combination

内容: (1) Provision (2) Increase in business combination

内容: (1) Disposal or scrap (2) Decrease in business combination

内容: 4. Closing Balance IV. Book value 1. Closing balance 2. Opening balance

内容: In RMB Item Original carrying amount Accumulated depreciation Provision for impairment Book value Remarks

内容: (3) Fixed assets leased out through operating lease

内容: (4) Fixed assets without title certificate

内容: In RMB Item Workshop, office and dormitory buildings of Fujian JK Changshu Luxshare Factory and Auxiliary Building Project New Dormitory of Zhejiang Intelligent Manufacture Cadre Training Center of Meite Technology (Suzhou) Co., Ltd. Book value Reasons for not obtaining the title certificate 9,150,637.64 Note 1

内容: 404,639,526.31 Newly built;the certificate is in process

内容: 129,832,130.87 Newly built;the certificate is in process

内容: 1,265,419.65 Newly built;the certificate is in process

内容: Plant and Dormitory for Jiangxi Intelligent Manufacture Luxshare Dongguan factory Phase II plant of Ri Shan Zhejiang New plant of Rikai Yancheng Other descriptions

内容: 592,830,470.14 Newly built;the certificate is in process 65,691,767.40 Newly built;the certificate is in process 743,471,969.86 Newly built;the certificate is in process 44,378,742.39 Newly built;the certificate is in process

内容: Note 1: The land occupied by the staff dormitory is in nature an allotted land, the use right of which was acquired by the Company by means of transfer through agreement in line with relevant regulations at that time.The property title formed based on the allotted land use right is not allowed to be transferred unless the allocated land use right is converted to paid land use right.However, the existing land use right cannot be transferred by agreement, as a result of which the property title to the staff dormitory building has not been transferred to Fujian JK. (5) Disposal of fixed assets

内容: In RMB Item Other descriptions Closing Balance Opening Balance

内容: In RMB Item Construction in progress Total Closing Balance 3,685,336,499.02 3,685,336,499.02 Opening Balance 1,596,064,894.58 1,596,064,894.58

内容: In RMB Closing Balance Item Book balance Workshop construction Equipment installation engineering Mould improvement Other 97,260,914.54 129,721,849.43 97,260,914.54 129,721,849.43 4,759,515.63 133,906,623.49 4,759,515.63 133,906,623.49 235 1,326,553,134.57 1,326,553,134.57 145,475,258.95 145,475,258.95 Provision for impairment Book value Book balance Opening Balance Provision for impairment Book value

内容: (2) Changes in significant constructions in progress for the current period

内容: In RMB Amount transferr Increase Item Budget Opening Balance in the period ed to fixed the current period Changsh u Luxshare worksho p construct ion Donggua n Luxshare worksho p construct ion Worksho 1,200,00 279,843, 673,780, 496,213, p Project 0,000.00 Intellige nt Manufac ture Jiangxi worksho p construct ion Yunzhon g phase I 1,700,00 28,170,0 27,810,0 and phase II 0,000.00 00.00 00.00 55,980,0 00.00 98.21% 98.21% Other 1,082,66 89,543,7 5,773.12 91.53 89,543,7 91.53 100.00% 100.00% Other 970.61 606.06 912.86 457,410, 663.81 51.21% 51.21% Other 1,000,00 72,701,2 0,000.00 77.85 72,701,2 77.85 100.00% 100.00% Other 1,471,78 364,175, 971,284, 7,728.51 573.69 528.00 1,335,46 0,101.69 90.74% 95.00% Other Other decrease in the current period Closing Balance Proporti on of accumul ated project investme nt in budget Project progress Amount of accumul ated capitaliz ed interest Includin g: Amount Current of interest Source current capitaliz of funds capitaliz ation rate ed interest

内容: (3) Provision for impairment of construction in progress for the current period

内容: In RMB Item Other descriptions Current provision amount Reasons for provision

内容: In RMB Closing Balance Item Book balance Other descriptions: Provision for impairment Book value Book balance Opening Balance Provision for impairment Book value

内容: 23. Bearer biological assets (1) Bearer biological assets measured at cost

内容: (2) Bearer biological assets measured at fair value

内容: In RMB Item I. Original carrying amount 1. Opening Balance 147,495,370.17 1,693,632.15 149,189,002.32 238 Buildings Machinery equipment Transportation equipment Total

内容: 2. Increase in the current period (1) New leases (2) Increase in business combination (3) Adjustment due to remeasurement (4) Other 3. Decrease in the current period (1) Transferred to fixed assets (2) Decrease in business combination (3) Disposal 4. Closing Balance II. Accumulated depreciation 1. Opening Balance 2. Increase in the current period (1) Provision (2) Increase in business combination (3) Other 3. Decrease in the current period (1) Disposal (2) Decrease in business combination (3) Other 4. Closing Balance III. Provision for impairment 1. Opening Balance 2. Increase in the current period

内容: 3. Decrease in the current period (1) Disposal

内容: 26. Intangible assets (1) Intangible assets

内容: 4. Closing Balance II. Accumulated amortization 1. Opening Balance 2. Increase in the current period (1) Provision (2) Increase in business combination (3) Other 3. Decrease in the current period (1) Disposal (2) Decrease in business combination (3) Other 4. Closing Balance III. Provision for impairment 1. Opening Balance 2. Increase in the current period (1) Provision

内容: The proportion of intangible assets formed through internal R&D in the balance of intangible assets at the end of this period.

内容: (2) Land use right without title certificate

内容: In RMB Item Other descriptions: Book value Reasons for not obtaining the title certificate

内容: In RMB Increase in the current period Item Opening Balance Internal development expenditure Other Decrease in the current period Recognized Converted to as intangible current profit assets or loss Closing Balance

内容: 28. Goodwill (1) Original carrying amount of goodwill

内容: In RMB Increase Investee name or event forming goodwill ASAP Technology (Jiangxi) Co., Ltd. Lanto Electronic Limited Bozhou Lanto Electronic 376,682,429.24 376,682,429.24 42,325,745.85 42,325,745.85 Opening Balance Formed by business combination Other Disposal Other Closing Balance Decrease

内容: Zhejiang Puxing Electronic Technology Co., Ltd. Caldigit Holding(Cayman) Taihan Precision Co., Ltd. Total 569,434,529.20 41,765,582.41 41,765,582.41 804,455.51 804,455.51

内容: (2) Provision for impairment of goodwill

内容: In RMB Investee name or event forming goodwill Meite Technology (Suzhou) Co., Ltd. Suk kunststofftechnik GmbH Meilv Electronics (Shanghai) Co., Ltd. Fujian JK Wiring Systems Co., Ltd.. Total 36,294,996.95 36,294,996.95 17,717,209.29 17,717,209.29 454,304.97 454,304.97 9,552,894.63 9,552,894.63 8,570,588.06 8,570,588.06 Opening Balance Provision Other Disposal Other Increase Decrease Closing Balance

内容: Relevant information on asset group or set of asset groups to which the goodwill belongs Descriptions on the goodwill impairment test process, key parameters (such as the growth rate in the forecast period, the growth rate in the stable period, the profit rate, the discount rate, the forecast period, etc., when forecasting the present value of future cash flow) and the recognition method of goodwill impairment loss

内容: The goodwill of the Company is formed by business combinations not involving enterprises under common control in previous years and this year. On the balance sheet date, the Company conducted impairment tests on goodwill. The recoverable amount of the asset group involved in goodwill is determined according to the present value of the future cash flow of the asset group and the net realizable value. The management determines the growth rate and gross margin based on the macro market environment, historical experience and the development stage forecast of product segments involved in different asset groups. Depending on the different asset groups involved, the growth rate used in the forecast for the current year is 1.00% - 35.00%, the gross margin is 7.50% - 26.00%, and the discount rate is 10.68% - 11.51%.The parameters used in

内容: goodwill impairment test of major asset groups are as follows:

内容: Asset group name Lanto Electronic Limited Shenzhen Kertong Industrial Co., Ltd. Luxcase Precision Technology (Yancheng) Co., Ltd. Gross margin 20.00 % - 21.65% 22.00 % - 23.00% 7.50 % - 9.73% Growth rate 2.00 % - 4.09% 26.00 % - 27.10% 10.00 % - 35.00% Discount rate 10.82 % 11.17 % 11.02 %

内容: Influence of goodwill impairment test Other descriptions

内容: In RMB Increase in the current period Amortization amount in the current period 173,723,767.93 72,340,590.23 246,064,358.16 Other reduced amount

内容: House decoration fees Other Total Other descriptions

内容: 30. Deferred income tax assets / deferred income tax liabilities (1) Deferred income tax assets that are not offset

内容: In RMB Closing Balance Item Deductible temporary differences Provision for impairment of assets Unrealized profit of internal transaction Deductible losses Exchange differences of foreign operations Non-leave bonus Government grants 334,568,858.40 Deferred tax assets Opening Balance Deductible temporary differences 178,973,738.82 Deferred tax assets

内容: (2) Deferred income tax liabilities that are not offset

内容: In RMB Closing Balance Item Taxable temporary difference Assets valuation appreciation of business combination not involving enterprises under common control Changes in fair value of other investments in equity instruments Accelerated depreciation of fixed assets Support funds allocated by the government Accumulative recognition of overseas investment interests by equity method Prepaid pension Allowance for bad debt overrun Valuation of derivative financial instruments Other Total 5,447,475.80 677,356.60 1,089,495.16 135,471.32 4,849,056.41 682,946.59 969,811.28 136,589.23 646,292,642.90 129,258,528.58 342,518,297.34 68,503,659.35 6,009,902,532.36 905,906,182.00 5,363,997,971.61 806,120,054.47 191,890,689.53 28,783,603.43 95,831,927.34 14,374,789.10 909,128,653.76 171,173,301.23 93,903,990.20 16,054,921.33 Deferred tax liabilities Opening Balance Taxable temporary difference Deferred tax liabilities

内容: (3) Deferred income tax assets or liabilities presented in net amount after offsetting

内容: In RMB Offset amount between Item deferred tax assets and liabilities at the end of Closing balance of deferred tax assets or Offset amount between deferred tax assets and liabilities at the Opening balance of deferred tax assets or

内容: the period Deferred tax assets Deferred tax liabilities

内容: (4) Details of unrecognized deferred income tax assets

内容: In RMB Item Closing Balance Opening Balance

内容: (5) The deductible losses of unrecognized deferred income tax assets will be due in the following years

内容: In RMB Particular year Other descriptions: Closing amount Opening amount Remarks

内容: In RMB Closing Balance Item Book balance Prepayments for equipment, project and land Prepaid pension Other Total Other descriptions: 1,893,831,96 2.00 5,447,475.82 5,025,743.67 1,904,305,18 1.49 Provision for impairment Opening Balance Book value Book balance 1,893,831,96 1,212,186,29 2.00 0.84 Provision for impairment Book value 1,212,186,29 0.84 4,849,056.41 6,164,295.36 1,223,199,64 2.61

内容: 32. Short-term borrowings (1) Classification of Short-term borrowings

内容: Total Descriptions on classification of short-term borrowings:

内容: As at December 31, 2021, the Company discounted bank acceptance bills issued mutually among companies within the Group in the amount of RMB7,582,473,758.45, and presented them as short-term borrowings

内容: (2) Overdue but unpaid short-term borrowings

内容: The total amount of overdue but unpaid short-term borrowings at the end of the period is RMB, of which the significant overdue and outstanding short-term borrowings are as follows: In RMB Borrower Other descriptions: Closing Balance Loan interest rate Overdue time Overdue interest rate

内容: 33. Held-for-trading financial liabilities

内容: In RMB Item Held-for-trading financial liabilities Including: Held-for-trading bonds issued Including: Total Other descriptions: 41,436.00 41,436.00 Closing Balance 41,436.00 Opening Balance

内容: In RMB Item Other descriptions: Closing Balance Opening Balance

内容: In RMB Category Commercial acceptance bill Bank acceptance bill Total 234,500,590.93 Closing Balance 234,500,590.93 Opening Balance 128,292,099.33 280,012.21 128,572,111.54

内容: The total amount of notes payable due but unpaid at the end of this period is RMB.

内容: 36. Accounts payable (1) Presentation of accounts payable

内容: (2) Significant accounts payable with aging over 1 year

内容: In RMB Item Closing Balance Reasons for non-payment or carrying forward Warranty bonds for workshop construction progress

内容: Project payment Project payment Project payment Equipment payment Material payment Project payment

内容: 28,895,641.37 Acceptance pending for project 6,890,000.00 Unexpired warranty bonds 4,931,603.95 Dispute arising from equipment quality 4,646,017.70 Incomplete information 5,356,808.96 Unsettlement due to incompletion of construction Unsettlement due to incompletion of construction Unsettlement due to incompletion of construction --

内容: Project payment Total Other descriptions:

内容: 37. Receipts in advance (1) Presentation of receipts in advance

内容: (2) Significant receipts in advance with aging over 1 year

内容: In RMB Item Closing Balance Reasons for non-payment or carrying forward

内容: In RMB Item Goods payments received in advance Total Closing Balance 268,506,246.98 268,506,246.98 Opening Balance 152,512,971.36 152,512,971.36

内容: Amount of and reason for significant changes in book value during the reporting period In RMB Item Change amount Reason for change

内容: 39. Employee benefits payable (1) Presentation of employee benefits payable

内容: (2) Presentation of short-term compensation

内容: Including: Medical insurance premium Employment injury insurance premium Maternity insurance premium 4. Housing provident fund 5. Trade union funds and staff education funds 6. Other short-term compensation Total

内容: (3) Presentation of defined contribution plan

内容: In RMB Item 1. Basic endowment insurance premium 2. Unemployment insurance premium Total Other descriptions: Opening Balance 34,443,692.48 Increase 906,923,458.42 Decrease 900,272,413.80 Closing Balance 41,094,737.10

内容: Disability insurance Other Total Other descriptions:

内容: In RMB Item Significant overdue but unpaid interest: In RMB Borrower Other descriptions: Overdue amount Reasons for delay Closing Balance Opening Balance

内容: Other descriptions: it is required to disclose the reasons if there are key dividends payable that have not been paid for more than 1 year.

内容: (3) Other payable 1 ) Presentation of other payable by nature

内容: 2 ) Other significant accounts payable aged over 1 year

内容: In RMB Item Other descriptions Closing Balance Reasons for non-payment or carrying forward

内容: 43. Non-current liabilities due within one year

内容: In RMB Item Long-term borrowings due within one year Lease liabilities due within one year Total Other descriptions: Closing Balance 157,786,550.24 112,293,039.92 270,079,590.16 278,527,714.63 Opening Balance 278,527,714.63

内容: In RMB Item Short-term bonds payable Government-backed fund Entrusted loans Output VAT to be levied Payable for purchase returns Other Total Increase and decrease in short-term bonds payable: In RMB Interest accrued at face value Amortizat ion of premium and Current repaymen t Other 1,971,219,540.97 18,605,890.19 21,715,597.38 4,843,599.88 3,623,423,072.87 39,869,128.36 623,257,555.89 17,673,149.75 Closing Balance 1,607,038,444.45 Opening Balance 508,715,277.78 57,000,000.00

内容: discount Short-ter m bonds payable Short-ter m bonds payable Short-ter m bonds payable Short-ter m bonds payable Total -100.00 100.00 100.00 100.00 April 24,2020 500,000,0 508,715,2 00.00 77.78 508,715,2 77.78

内容: 45. Long-term borrowings (1) Classification of long-term borrowings

内容: In RMB Item Pledge loans Mortgage loans Guaranteed loans Credit loans Total Descriptions on classification of long-term borrowings: Other descriptions, including interest rate range: Closing Balance 1,665,503,349.06 2,252,543,585.32 72,759,492.87 1,034,289,765.84 5,025,096,193.09 192,286,175.07 1,495,199,238.41 Opening Balance 1,878,341.29 1,301,034,722.05

内容: (2) Increase and decrease in bonds payable (excluding preferred shares, perpetual bonds and other financial instruments classified as financial liabilities)

内容: (3) Descriptions on conditions and time for conversion of convertible bonds The conversion period of the convertible bonds issued this time commences on the first trading day six months after the end of the issue of the convertible bonds (November 9, 2020, i.e.the date when the proceeds are transferred to the issuer’s account), and ends on the maturity date of the convertible bonds (i.e.from May 10, 2021 (as the date of May 09, 2021 is a non-trading day, it defers to May 10, 2021) to November 2, 2026 (it defers to the first trading day thereafter in case of legal holidays or rest days;no additional interest will be charged to the payment during the deferred period)).

内容: (4) Descriptions on other financial instruments classified as financial liabilities

内容: Basic information on preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period. Changes in preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period. In RMB Outstanding financial instruments Quantity Book value Quantity Book value Quantity Book value Quantity Book value Opening Increase Decrease Closing

内容: Descriptions on the basis for classifying other financial instruments into financial liabilities Other descriptions

内容: In RMB Item Lease payment Unrecognized financing costs Total Other descriptions Closing Balance 336,593,292.75 -21,499,809.20 315,093,483.55 Opening Balance 157,440,735.91 -12,978,050.00 144,462,685.91

内容: (1) Presentation of long-term payable by nature

内容: In RMB Item Other descriptions: Opening Balance Increase Decrease Closing Balance Reason

内容: 49. Long-term employee benefits payable (1) Breakdown of Long-term employee benefits payable

内容: Present value of obligations in defined benefit plans: In RMB Item Plan assets: In RMB Amount recognized in the current period Amount recognized in the prior period

内容: Net liabilities (net assets) of defined benefit plans In RMB Item Amount recognized in the current period Amount recognized in the prior period

内容: Descriptions on the content of the defined benefit plans, the related risks, and the impact on the Company’s future cash flow, time and uncertainty: Descriptions on the major actuarial assumptions and sensitivity analysis results concerning the defined benefit plans: Other descriptions:

内容: In RMB Item Product quality warranty Total Closing Balance 923,738.96 923,738.96 Opening Balance 1,360,598.63 1,360,598.63 -Reason

内容: Other descriptions, including major assumptions and estimation descriptions related to significant provisions

内容: Projects involving government grants: In RMB Amount New subsidy included in Liabilities Opening Balance amount in the current period non-operatin g income in the current period Special funds for technologica l transformati on and industrial upgrading Land-related 11,511,657.90 543,594.60 10,968,063.30 Related to 257 413,834,324.74 199,402,659. 37 85,648,103.2 3 527,588,880.88 Related to asset Amount included in other incomes in the current period Amount of cost offset in the current period Other changes Closing Balance Related to asset/ income

内容: In RMB Item Deposit for lease of plant buildings Government-backed fund Other Total Other descriptions: 1,207,763.79 1,207,763.79 150,019,923.33 Closing Balance Opening Balance 19,923.33 150,000,000.00

内容: In RMB Increase and decrease (+, -) Opening Balance New shares issued 6,999,768,186. 00 Shares Stock dividend converted from capital reserve 8,809.00 50,717,291.00 7,050,485,477. 00 Other Subtotal Closing Balance

内容: The Company’s share capital increased by RMB50,717,291.00 shares in the current period, including 50,708,482 shares exercised by the stock option incentive recipients independently, and 8,809 shares converted from convertible bonds. After the said exercise and conversion, the Company’s share capital increased to 7,050,485,477 shares. 54. Other equity instruments (1) Basic information on preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period

内容: (2) Changes in preferred shares, perpetual bonds and other financial instruments outstanding at the end of the period

内容: Outstanding financial instruments Convertible bonds Total

内容: Descriptions on the increase and decrease in other equity instruments in the current period, the reasons for the changes, and the basis for relevant accounting treatment:

内容: According to the Proposal on the Specific Plan for the Public Issue of Convertible Bond deliberated and approved at the tenth conference of the fourth session of the Board of Directors of the Company, and the Reply for Approval of Public Issue of Convertible Bonds by Luxshare Precision Industry Co., Ltd. (Zheng Jian Xu Ke [2020] No.247) received by the Company from China Securities Regulatory Commission on February 19, 2020, the Company was approved to publicly issue convertible bonds with a total face value of RMB3 billion and a term of 6 years.The Company’s convertible bonds of RMB3 billion were listed for trading on Shenzhen Stock Exchange on November 3, 2020, with an abbreviation name of “Luxshare Convertible Bonds” and the bond code of “128136”. Decrease in other equity instrument in the current period is represented as the decrease in convertible bonds caused by conversing bonds to shares.

内容: Other descriptions, including those on the increase and decrease for the current period and the reasons for the change:

内容: Capital reserve - equity premium increased by RMB974,641,174.47 in the current period, including an increase of RMB535,744,317.19 from stock option exercise, a transfer of RMB385,746,171.17 from other capital reserve through stock option exercise, a conversion of RMB507,253.01 from convertible bonds, and an increase of RMB52,643,433.10 by other ways. Capital reserve - the increase in other capital reserve in the current period is due to the cost of share-based payment increased by RMB240,700,708.77, and the decrease therein is due to the transfer of other capital reserve to equity premium. 56. Treasury stock

内容: In RMB Amount recognized in the current period Less: Less: amount previously included in Amount of Item Opening Balance income before tax in the current period other comprehensi ve income and transferred to profit or loss for the current period amount previously included in other comprehe nsive income and transferred to retained earnings for the current period I. Other comprehensive income that cannot be reclassified into profit or loss Changes in fair value of other investments in equity instruments II. Other comprehensive income to be reclassified into profit or loss Translation difference of foreign currency financial statements Total other comprehensive income 81,459,923. 96,214,73 45 4.80 14,508,81 81,705,91 7.00 7.80 163,165, 841.25 163,165, 841.25 Less: income tax expenses Attributabl Attributabl e to the parent e to minority Closing Balance

内容: company shareholde after tax rs after tax

内容: Other descriptions, including those on the adjustment for conversion of the effective part of profit or loss of cash flow hedging into the initial recognition amount of the hedged item:

内容: In RMB Item Opening Balance Increase Decrease Closing Balance

内容: Description of surplus reserve, including those on increase and decrease for the current period and the reasons for the change:

内容: In RMB Item Undistributed profits at the end of last year before adjustment Undistributed profits at the beginning of the period after adjustment Add: Net profits attributable to the owners of the parent company in the current period Less: Apportion to statutory surplus reserve Common stock dividends payable Other Undistributed profits at the end of the period Current Period 17,996,149,257.73 Prior Period 11,764,987,172.39

内容: Details of adjustment of undistributed profits at the beginning of the period: 1 ) The undistributed profits at the beginning of the period affected by the retroactive adjustment as stipulated in the Accounting Standards for Business Enterprises and new regulations newly promulgated relating thereto amounted to RMB0.00. 2 ) The undistributed profits at the beginning of the period affected by the changes in accounting policies amounted to RMB0.00. 3 ) The undistributed profits at the beginning of the period affected by the correction of major accounting errors amounted to RMB0.00. 4 ) The undistributed profits at the beginning of the period affected by changes in the scope of consolidation due to business combination involving enterprises under control amounted to RMB0.00. 5 ) The undistributed profits at the beginning of the period affected by other adjustments amounted to RMB0.00.

内容: 61. Operating income and operating costs

内容: If the lower of audited nets profits including and excluding non-recurring profit or loss is negative □ Yes √ No Income related to information: In RMB Contract classification By product Including: Computer connectivity products and precision components Automotive connectivity products and precision components Communication connectivity products and precision components Consumer electronics Other connectors and other business By geographical areas of operations Including: Domestic market Overseas market By markets or customers Including: 10,493,247,599.10 143,452,850,191.30 10,493,247,599.10 143,452,850,191.30 134,637,995,600.46 4,039,354,643.37 134,637,995,600.46 4,039,354,643.37 3,269,476,642.60 3,269,476,642.60 4,142,675,174.19 4,142,675,174.19 7,856,595,729.78 7,856,595,729.78 Segment 1 Segment 2 Total

内容: By the period of transferring products Including:

内容: Information related to performance obligations: None Information relating to the transaction price allocated to the remaining performance obligations: At the end of the reporting period, the incomes corresponding to the contracts signed whose performance has not been commenced or completed amount to RMB0.00, of which RMB is expected to be recognized in, RMB is expected to be recognized in, and RMB is expected to be recognized in. Other descriptions

内容: In RMB Item Urban maintenance and construction tax Education surcharges Property tax Land use tax Vehicle and vessel use tax Stamp duty Local education surcharges Other Total Other descriptions: Amount recognized in the current period 30,064,853.10 14,616,280.44 63,618,880.04 11,000,959.65 80,571.50 56,059,570.68 8,788,619.58 9,582,322.15 193,812,057.14 Amount recognized in the prior period 81,906,708.52 45,589,613.48 39,872,407.36 6,222,537.93 1,594,540.33 38,224,811.62 30,367,962.03 6,997,157.54 250,775,738.81

内容: In RMB Item Employee benefits Storage and lease expenses Travel expenses Business entertainment expenses Material expenditure Transportation expenses Consumables and miscellaneous purchases Depreciation and amortization Consulting fees Office expenses Other Total Other descriptions: Amount recognized in the current period 477,502,208.55 51,915,157.63 7,698,136.97 23,190,907.73 7,816,183.12 5,702,963.14 47,560,953.11 8,650,043.25 16,189,368.41 1,720,255.18 141,961,986.71 789,908,163.80 Amount recognized in the prior period 299,604,855.35 25,954,501.83 10,523,347.33 20,355,079.41 1,095,021.52 3,366,341.74 5,583,719.60 5,752,130.91 2,383,695.21 322,246.46 102,106,936.22 477,047,875.58

内容: Item Personnel benefits Mould and material cost Consumables and miscellaneous Depreciation and amortization Repair and inspection Service fees Water and electricity Transportation and travel expenses Commercial insurance Lease fee Other expenses Total Other descriptions:

内容: In RMB Item Interest expenses Including: interest cost of lease liabilities Less: Interest income Foreign exchange gains or losses Other Total Other descriptions: Amount recognized in the current period 656,411,767.86 30,548,145.32 361,773,700.27 225,950,789.85 34,077,016.61 554,665,874.05 144,116,091.77 614,733,760.74 39,620,655.76 904,828,142.89 Amount recognized in the prior period 394,589,818.16

内容: In RMB Sources of other incomes Government grants Total Amount recognized in the current period 853,542,165.37 853,542,165.37 Amount recognized in the prior period 450,748,795.89 450,748,795.89

内容: Item Long-term equity investment income accounted for using the equity method Investment income from disposal of long-term equity investment Investment income from held-for-trading financial assets during holding period Gains from remeasurement of remaining equities at fair value after loss of control Difference between the original carrying amount and the fair value of long-term equity investment under cost method changed from equity method Gains from derecognition of financial assets measured at amortized cost. Income from wealth management Total Other descriptions:

内容: Amount recognized in the current period 29,737,321.95

内容: Amount recognized in the prior period 24,799,841.42

内容: In RMB Item Other descriptions: Amount recognized in the current period Amount recognized in the prior period

内容: In RMB Sources of income from changes in fair value Held-for-trading financial assets Including: Income from changes in fair value of derivative financial instruments Total Other descriptions: Amount recognized in the current period -115,737,751.66 -115,737,751.66 -115,737,751.66 Amount recognized in the prior period 329,044,852.43 329,044,852.43 329,044,852.43

内容: Item Bad debt loss of other receivables Bad debt loss of notes receivable Bad debt loss of accounts receivable Total Other descriptions:

内容: Amount recognized in the prior period -852,545.23

内容: In RMB Item II. Loss of inventory depreciation and impairment loss of contract performance cost V. Impairment loss of fixed assets Total Other descriptions: -3,897,744.01 -162,790,335.12 -78,925,059.30 -139,288,911.05 -158,892,591.11 -60,363,851.75 Amount recognized in the current period Amount recognized in the prior period

内容: In RMB Sources of income from asset disposal Loss on disposal of fixed assets Loss on disposal of intangible assets Total Amount recognized in the current period -45,249,998.44 -16,594.21 -45,266,592.65 -2,309,694.02 Amount recognized in the prior period -2,309,694.02

内容: In RMB Amount recognized in the current period Amount recognized in the prior period Amount included in non-recurring profit or loss for the period 1,860,909.33 1,339,094.50 622,245.83 10,649,503.20 17,274,286.94

内容: Income from compensation for breach of contract Income from asset retirement Income from insurance indemnity Other

内容: Government grants included in current profit or loss: In RMB Whether the Grant item Granter Reasons for grant Nature and type subsidy affect Whether it is the profit or loss of the current year Other descriptions: a special grant Amount in the current period Amount in the prior period Related to asset/ income

内容: External donation Asset retirement loss Compensation, liquidated damages and fines Other Total Other descriptions:

内容: 76. Income tax expenses (1) Income tax expenses

内容: In RMB Item Current income tax expense Deferred income tax expense Total Amount recognized in the current period 607,416,066.01 -285,177,422.37 322,238,643.64 Amount recognized in the prior period 486,267,875.03 158,497,053.67 644,764,928.70

内容: (2) Reconciliation of income tax expenses to the accounting profit

内容: In RMB Item Total profits Amount recognized in the current period 8,142,848,949.83

内容: Income tax expense calculated based on statutory/applicable tax rate Effect of different tax rates of subsidiaries operating in other jurisdictions Effect of adjustment on income tax for prior period Effect of non-deductible cost, expense and loss Effect of utilizing deductible loss not recognized for deferred tax assets for prior period Effect of deductible temporary difference or deductible loss not recognized for deferred tax assets for the current period Additional deduction of R&D expenses (presented in negative) Difference from exercise of stock option Additional deduction of expenses used for disable persons Other Income tax expenses Other descriptions

内容: 78. Items in the cash flow statement (1) Other cash received related to operating activities

内容: In RMB Item Special subsidies and grants Lease income Interest income Non-operating income Recovery of current accounts and disbursements Total Descriptions on other cash received related to operating activities: Amount recognized in the current period 941,612,664.44 83,010,927.51 361,773,700.27 19,499,157.07 1,240,625,072.70 2,646,521,521.99 Amount recognized in the prior period 620,035,223.62 58,450,087.37 144,116,091.77 14,757,798.01 341,220,838.10 1,178,580,038.87

内容: (2) Other cash paid related to operating activities

内容: Item Selling expenses General expenses R&D expenses Non-operating expenses Inter-company transactions Handling charges Other Total

内容: Descriptions on other cash paid related to operating activities:

内容: (3) Other cash received related to investing activities

内容: In RMB Item Obtain net cash received by subsidiaries Total Descriptions on other cash received related to investing activities: Amount recognized in the current period 4,665,590,364.12 4,665,590,364.12 Amount recognized in the prior period

内容: (4) Other cash paid related to investing activities

内容: In RMB Item Income tax levied on equity transactions Supplier borrowings Other Total Descriptions on other cash paid relating to investing activities: Amount recognized in the current period 371,929,911.39 30,000,000.00 1,208,914.50 403,138,825.89 Amount recognized in the prior period

内容: (5) Other cash received related to financing activities

内容: In RMB Item Short-term financing bonds Convertible bonds Taxes withheld from shareholder for reduction of shares Amount recognized in the current period 3,799,202,739.72 228,949,500.00 671,813,299.36 Amount recognized in the prior period 1,500,000,000.00 2,985,600,000.00

内容: Other Total Descriptions on other cash received related to financing activities:

内容: (6) Other cash paid related to financing activities

内容: In RMB Item Short-term financing bonds Taxes prepaid for shareholder for reduction of shares Lease fee Financing charges Total Descriptions on other cash paid related to financing activities: Amount recognized in the current period 2,700,000,000.00 671,813,299.36 82,320,708.73 7,388,317.66 3,461,522,325.75 14,511,270.50 14,511,270.50 Amount recognized in the prior period

内容: 79. Supplementary information to cash flow statement (1) Supplementary information to cash flow statement

内容: In RMB Supplementary information 1 . Reconciliation of net profit to cash flow from operating activities: Net profits Add: Provision for impairment losses of assets Depreciation of fixed assets, depletion of oil and gas assets, depreciation of bearer biological assets Depreciation of right of use assets Amortization of intangible assets Amortization of long-term prepaid expenses Loss from disposal of fixed assets, intangible assets and other long-term assets (“-” means income) Loss from fixed assets retirement (“-” means income) 18,165,814.18 34,858,852.91 45,266,592.65 2,309,694.02 105,949,651.47 119,810,187.02 246,064,358.16 66,781,202.42 137,587,798.08 4,822,202,794.73 2,212,448,100.25 Current period -7,820,610,306.19 189,665,839.81 Prior period -7,491,014,735.42 147,878,911.72

内容: Loss from changes in fair value (“-” means income) Financial expenses (“-” means income) Investment loss (“-” means income) Decrease in deferred income tax assets (“-” means increase) Increase in deferred income tax liabilities (“-” means decrease) Decrease in inventories (“-” means increase) Decrease in operating receivables (“-” means increase) Increase in operating accounts payable (“-” means decrease) Other Net cash flow from operating activities 2 . Significant investing and financing activities that do not involve cash receipts and payments: Conversion of debt into capital Convertible bonds due within one year Fixed assets acquired under finance leases 3 . Net changes in cash and cash equivalents: Closing balance of cash Less: Opening balance of cash Add: Closing balance of cash equivalents Less: Opening balance of cash equivalents Net increase in cash and cash equivalents ---

内容: (2) Net cash paid to acquire subsidiaries for the period

内容: In RMB Amount Cash or cash equivalents paid in current period for business combination incurred in current period Including: Luxcase Precision Technology (Yancheng) Co., Ltd. Zhejiang Puxing Electronic Technology Co., Ltd. -6,000,000,000.00 20,000,000.00 6,020,000,000.00

内容: Less: Cash and cash equivalents held by subsidiaries at the date of purchase Including: Luxcase Precision Technology (Yancheng) Co., Ltd. Zhejiang Puxing Electronic Technology Co., Ltd. Including: Net cash paid to acquire subsidiaries Other descriptions: ---

内容: As Luxcase Precision Technology (Yancheng) Co., Ltd.was acquired in the form of contributing additional capital to increase shares, the cash and cash equivalents held by this subsidiary on the acquisition date are presented in other cash received related to investing activities. (3) Net cash received from disposal of subsidiaries in the current period

内容: In RMB Amount Cash or cash equivalents received from disposal of subsidiaries in the current period Including: Wuxi Huihong Electronic Co., Ltd. Less: Cash and cash equivalents held by subsidiaries on the date of loss of control Including: Wuxi Huihong Electronic Co., Ltd. Including: Luxshare Precision Industry (Xi’an) Co., Ltd. Other descriptions: -16,418,213.71 -1,081,786.29 -17,500,000.00 1,081,786.29 17,500,000.00

内容: (4) Composition of cash and cash equivalents

内容: In RMB Item I. Cash Including: Cash on hand Bank deposits available for payment at any time III. Closing balance of cash and cash equivalents Closing Balance 8,921,536,728.08 323,716.04 8,921,213,012.04 Opening Balance 10,464,804,451.34 9,919,560.76 10,454,884,890.58

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Other descriptions:

内容: 80. Notes to items in statement of changes in owners’ equity

内容: Descriptions on the name of “other” items and the amount of adjustment for closing balance in the previous year None

内容: 81. Assets with restricted ownership or right of use

内容: In RMB Item Cash and bank balances Notes receivable Fixed assets Intangible assets Held-for-trading financial assets Closing book value Reasons for restriction

内容: 5 ,283,081,458.35 Issue of notes and letter of credit 51 ,933,961.58 Financing from pledge of notes receivable 1 ,176,330,347.47 Financing from mortgage of fixed assets 777 ,621,389.62 Financing from mortgage of land 663 ,680,000.00 Financing from pledge of held-for-trading financial assets Financing from pledge of accounts receivable

内容: Accounts receivable Equity investment Total Other descriptions:

内容: 82. Foreign currency monetary items (1) Foreign currency monetary items

内容: GBP RUB Accounts receivable Including: USD EUR HKD JPY TWD VND KRW Long-term borrowings Including: USD EUR HKD TWD Other receivables Including: USD EUR JPY TWD VND KRW GBP RUB Short-term borrowings Including: USD TWD Accounts payable Including: USD EUR HKD JPY TWD VND

内容: KRW GBP RUB Other payables Including: USD JPY TWD VND KRW GBP RUB Other descriptions:

内容: (2) Descriptions on overseas business entities, including, with respect to significant overseas business entities, disclosure of their overseas main business place, functional currency and selection basis, and the reasons for changes in functional currency (if any).

内容: Disclosure of the qualitative and quantitative information of the hedged items, relevant hedging instruments and hedged risks according to the hedging categories:

内容: 84. Government grants (1) Basic information of government grants

内容: In RMB Category Related to asset Related to income Amount Presentation item Amount included in current profit or loss 86 ,191,697.83 767 ,350,467.54

内容: 1. Business combination not involving enterprises under common control (1) Business combination not involving enterprises under common control in the current period

内容: In RMB Income of the Net profit of Time point of equity acquisition Cost of equity acquisition Equity acquisition ratio Method of equity acquisition Basis for Acquisition determination date of acquisition date acquiree from the acquiree the acquisition date to the end of the period Luxcase Precision Technology (Yancheng) Co., Ltd. Caldigit Holding(Cay Jan.1, 2021 man) Taihan Precision Co., Ltd. Zhejiang Puxing Electronic Technology Co., Ltd. Other descriptions: Aug.1, 2021 20 ,000,000.0 0 70.00 % Cash acquisition Aug.1, 2021 Obtainment of control 19 ,726,196.3 3 -1,018,429.21 Aug.1, 2021 59 ,570,545.9 7 Control under agreement Obtainment of control 211 ,936,482. 17 ,429,974.9 41 0 Feb.1, 2021 6 ,000,000,00 0.00 51.83 % Cash acquisition Feb.1, 2021 Obtainment of control 49 ,727,123,0 1 ,092,231,63 10.93 8.01 from the acquisition date to the end of the period

内容: In RMB Luxcase Combination costs Co., Ltd. --Cash -- Fair value of non-cash 277 6 ,000,000,000.00 Precision Caldigit Holding(Cayman) Taihan Precision Co., Ltd. Zhejiang Puxing Electronic Technology Co., Ltd. 20 ,000,000.00

内容: assets -- Fair value of issued or assumed debts -- Fair value of issued equity securities -- Fair value of contingent consideration -- Fair value of equity shares held before the acquisition date at the acquisition date -- Other Total of combination cost Less: share of fair value of identifiable net assets acquired Amount of goodwill/combination cost less than the share of fair value of identifiable net assets acquired Descriptions on methods for determining the fair value of combination costs, contingent considerations and changes therein: Main reasons for the formation of large goodwill: Other descriptions: 814 ,784,800.96 41 ,765,582.41 9 ,972,872.88 804 ,455.51 5 ,185,215,199.04 17 ,804,963.56 121 ,150,477.35 19 ,195,544.49 6 ,000,000,000.00 59 ,570,545.97 131 ,123,350.23 20 ,000,000.00 59 ,570,545.97 131 ,123,350.23

内容: (3) Identifiable assets and liabilities of the acquiree on the acquisition date

内容: In RMB Luxcase Ltd. Precision Taihan Precision Co., Ltd. Zhejiang Puxing Electronic Technology Co., Ltd.

内容: Technology (Yancheng) Co., Caldigit Holding(Cayman)

内容: Fair value at Book value at Fair value at Book value at Fair value at Book value at Fair value at Book value at acquisition date Assets: Cash and bank balances Accounts acquisition date acquisition date acquisition date acquisition date acquisition date acquisition date acquisition date

内容: Fixed assets Intangible assets Prepayments

内容: Deferred tax 176 ,202,846. liabilities Other payables Other liabilities Net assets Less: minority interest Net assets acquired 05 602 ,710,283. 602 ,710,283. 41 41

内容: Methods for determining the fair value of identifiable assets and liabilities: Contingent liabilities of the acquiree in business combination: Other descriptions:

内容: (4) Gains or losses arising from the re-measurement of equity held before the acquisition date at fair value

内容: Where there is any transaction that realizes business combination step by step through multiple transactions and obtains control right in the reporting period □ Yes √ No

内容: (5) Relevant descriptions on the combination consideration or the fair value of the identifiable assets and liabilities of the acquiree that cannot be reasonably determined on the acquisition date or at the end of the current period (6) Other descriptions 2. Business combination involving enterprises under common control (1) Business combination involving enterprises under common control in the current period

内容: In RMB Basis for business Name of combined party Equity ratio obtained in business combination combination involving enterprises under common control Other descriptions: Combination date Basis for determining the combination date Income of the Net profit of combined party from the combined Income of the Net profit of party from combined the comparison period the combined the comparison period

内容: the beginning the beginning party during party during of the current of the current period to the period to the combination combination date date

内容: In RMB Combination costs --Cash -- Book value of non-cash assets -- Book value of issued and assumed liabilities -- Par value of issued equity securities -- Contingent consideration Descriptions on contingent considerations and changes therein: Other descriptions:

内容: (3) Book value of assets and liabilities of the acquiree at the combination date

内容: Combination date Assets: Cash and bank balances

内容: Accounts receivable Inventories Fixed assets Intangible assets

内容: Liabilities: Borrowings Accounts payable

内容: Net assets Less: minority interest Net assets acquired Contingent liabilities assumed by acquiree in business combinations: Other descriptions:

内容: Basic information of transactions, basis for forming a reverse purchase, if assets and liabilities retained by listed company constitute a business and its basis, determination of combination cost, adjustments on and calculation of equity treated as equity transactions:

内容: Single disposal of investments in subsidiaries, i.e.the loss of control √ Yes □ No In RMB Differen ce between the Basis for disposal Proporti Name of y Equity price Equity ratio Equity method Time point of losing control determin price and time losing of net the y at the consolid ated financial on of equity on of losing ing the the share residual point of assets of the date control subsidiar control Book value of the residual equity on the date of losing control Gain or Fair residual equity on ation method Amount Determin of other compreh ensive

内容: loss from and main income rement of on for fair equity investme

内容: the date residual value of nt of the of losing equity at residual subsidiar control fair value equity on y the date transferr of losing ed into control investme nt profit

内容: statemen t level correspo nding to the disposal of investme nt Wuxi Huihong Electroni c Co., Ltd. Other descriptions: 17 ,500,0 00.00 68.97 % Sold Feb.28, 2021 Change of equity shares 581 ,347. 34

内容: Whether there is any situation where the investment in subsidiaries is disposed step by step through multiple transactions and the control is lost in the current period □ Yes √ No

内容: 5.Changes in consolidation scope for other reasons

内容: Descriptions on changes in the scope of consolidation for other reasons (such as the establishment of new subsidiaries, liquidation of subsidiaries, etc.)and related situations:

内容: The Company’s changes in scope of consolidation caused by newly established subsidiaries in 2021 are stated as follows: Company Luxis Technology Limited Yancheng Luxshare Precision Industry Co., Ltd. Hangzhou Xuntao Technology Co., Ltd. Rugao Luxshare Corporate Management Services Partnership (Limited Partnership) Lianxun Intelligent Equipment (Rugao) Co., Ltd. Luxshare Precision Technology(Xi’an) Co., Ltd. Luxshare Electronic Technology (Enshi) Co., Ltd. Luxis Technology (Kunshan) Co., Ltd. Luxshare Precision Investment Co.,Ltd. Yancheng Luxshare Corporate Management Services Partnership (Limited Partnership) Luxshare Intelligent Equipment (Yancheng) Co., Ltd. Date of establishment April 23, 2021 May 27, 2021 June 28, 2021 February 8, 2021 June 8, 2021 June 7, 2021 May 25, 2021 May 26, 2021 August 27, 2021 September 18, 2021 October 20, 2021

内容: Luxis Precision Intelligent Manufacture (Kunshan) Co., Ltd. Luxshare Intelligent Manufacture Electornic Service (Kunshan) Co.,Ltd. Liding Electronic Technology (Dongguan) Co.,Ltd. Luxshare Precision Technology(Nanjing) Co.,Ltd. Henan Lide Precision Industry Co., Ltd. Changzhi Luxshare Precision Industry Co., Ltd.

内容: The Company’s changes in scope of consolidation caused by deregistration of subsidiaries in 2021 are stated as follows: Company Ji’an Jizhou District Luxshare Electronic Co., Ltd. Luxshare-ICT International Cable, Inc. Speedtech (LS-ICT) Co., Limited LUXSHARE-ICT INTERNATIONAL B.V. Date of deregistration

内容: 1. Equity in subsidiaries (1) Composition of the enterprise group

内容: Name of subsidiary Luxshare Precision Technology Co., Ltd. Taiwan Luxshare Precision Limited Luxshare ICT, Inc. Luxshare-ICT Europe Limited Taiwan Taiwan Marketing business Marketing business Marketing business 100.00 % Establishment Hong Kong Hong Kong Investment consulting 100 .00% Establishment Main place of business Place of registration Nature of business Shareholding ratio Direct Indirect Method of acquisition

内容: Luxshare Precision Limited Yunding Technology Co., Ltd.

内容: Business Huzhou Jiuding Electronic Co., Ltd. Huzhou Huzhou Processing and manufacturing combination not 100.00 % involving enterprises under common control LUXSHARE-ICT Japan Ltd. Korea LuxshareICT Co., Korea Ltd Luxshare India Private Limited Luxshare Precision Investment Co.,Ltd. Luxis Technology Limited Luxshare Liantao (India) Co., Ltd. Hong Kong Hong Kong Investment consulting Processing and manufacturing Processing and manufacturing 100.00 % Establishment Hong Kong Hong Kong Investment consulting 100.00 % Establishment India Chennai Korea Japan Japan Marketing business Marketing business Processing and manufacturing 80.00 % Establishment

内容: combination not Hong Kong Hong Kong Trade 100.00 % involving enterprises under common control Business

内容: combination not 31.47 % involving enterprises under common control Business

内容: combination not involving enterprises under 284

内容: common control Business Cyber Acoustics, LLC(USA) Taiwan Taiwan Processing and manufacturing combination not 22.03 % involving enterprises under common control Business Caldigit Holding Limited Taiwan Taiwan Processing and manufacturing combination not 12.59 % involving enterprises under common control Business Taiqiao Investment Co., Ltd. Taiwan Taiwan Investment consulting combination not 31.47 % involving enterprises under common control Business Taihan Precision Co., Ltd. Taiwan Taiwan Processing and manufacturing combination not 9.22 % involving enterprises under common control Henan Lide Precision Industry Henan province Co., Ltd. Luxshare-ICT (Vietnam) Limited Luxshare Precision (Yunzhong) Co., Ltd. Luxshare-ICT (NGHE AN) Limited Kunshan Luxshare Precision Industry Co., Ltd. Kunshan Luxshare Precision Mould Kunshan Kunshan Processing and manufacturing Kunshan Kunshan Processing and manufacturing 100.00 % Establishment Vietnam Vietnam Processing and manufacturing Vietnam Vietnam Processing and manufacturing 100.00 % Establishment Vietnam Vietnam Henan province Processing and manufacturing

内容: Co., Ltd. Luxshare Precision Industry (Baoding) Co., Ltd. Xuancheng Luxshare Precision Industry Co., Ltd. Luxsahre Electric (Shanghai) Co., Ltd. Luxshare Precision Industry (Jiangsu) Co., Ltd. Yancheng Luxshare Precision Industry Co., Ltd. Business Lanto Electronic Limited Kunshan Kunshan Processing and manufacturing combination not 100.00 % involving enterprises under common control Business Bozhou Lanto Electronic Limited Bozhou Bozhou Processing and manufacturing combination not 100.00 % involving enterprises under common control Bozhou Xuntao Electronic Limited Suining Luxshare Precision Industry Suining Co., Ltd. Suining Bozhou Bozhou Processing and manufacturing Yancheng Yancheng Processing and manufacturing 100.00 % Establishment Liyang Liyang Processing and manufacturing 100.00 % Establishment Shanghai Shanghai Processing and manufacturing Anhui Xuancheng Processing and manufacturing 100.00 % Establishment Baoding Baoding Processing and manufacturing 100.00 % Establishment

内容: Business Merry Electronics (Suzhou) Co., Ltd. Suzhou Suzhou Processing and manufacturing combination not 51.00 % involving enterprises under common control

内容: Beijing Luxshare Acoustic Technology Co., Ltd. Luxshare Precision Industry Changzhi (Shanxi) Co., Ltd. Changzhi Luxshare Precision Industry Co., Ltd. Suzhou Liantao Electronic Co., Ltd. Wan’an Xiexun Electronic Co., Ltd. Wan’an Wan’an Suzhou Suzhou Processing and manufacturing Changzhi Changzhi Processing and manufacturing 100.00 % Establishment Changzhi Processing and manufacturing Beijing Beijing Processing and manufacturing 100.00 % Establishment

内容: Business Xiexun Electronic (Ji'an) Co., Ltd. Ji’an Ji’an Processing and manufacturing combination 100.00 % involving enterprises under common control ASAP Technology (Jiangxi) Co., Ltd. Yongxin County Boshuo Electronic Co., Ltd. Xinyu Xiexun Electronic Co., Ltd. Jiangxi ASAP Electronic Co., Ltd. Fujian JK Wiring Systems Co., Ltd.. Fuzhou Fuzhou Ji’an Ji’an Xinyu Xinyu Yongxin County Yongxin County Processing and manufacturing Business combination not 100.00 % involving enterprises under common control Processing and manufacturing Ji’an Ji’an Processing and manufacturing 100.00 % Establishment

内容: Business Processing and manufacturing 55.00 % combination not involving enterprises under

内容: common control Jianou JK Wiring Systems Co., Ltd. Luxshare Electronic Technology (Kunshan) Co., Ltd. Shenzhen Luxshare Acoustics Technology Ltd. Fengshun Luxshare Precision Industry Co., Ltd. Luxshare Precision Industry Chuzhou (Chuzhou), Ltd. Chuzhou Processing and manufacturing Fengshun Fengshun Processing and manufacturing 100.00 % Establishment Shenzhen Shenzhen Processing and manufacturing 100.00 % Establishment Kunshan Kunshan Processing and manufacturing 100.00 % Jian’ou Jian’ou Processing and manufacturing 55.00 % Establishment Business combination not involving enterprises under common control

内容: Business SuK Kunststofftechnik Germany GmbH Germany Processing and manufacturing combination not 100.00 % involving enterprises under common control Business Luxshare Automation (Jiangsu) Ltd. Kunshan Kunshan Processing and manufacturing combination not 70.00 % involving enterprises under common control Dongguan Luxshare Precision Industry Co., Ltd. Guangdong Luxshare& Merry Electronics Co., Ltd. M&A Merry Electronics (Huizhou) Co., LTD. Huizhou Huizhou Processing and manufacturing 51.00 % Business combination not involving enterprises under Dongguan Dongguan Processing and manufacturing 51.00 % Establishment Dongguan Dongguan Processing and manufacturing 100.00 % Establishment

内容: common control M&A Merry Electronics (Shanghai) Co., Ltd. Xingning Luxshare Electronic Co., Ltd. Jiangxi Luxshare Intelligent Manufacture Co., Ltd. Shenzhen Luxshare Standard Co., Ltd. Luxshare Standard Limited Hong Kong (HK) Luxshare Precision Industry Enshi (Enshi) Co., Ltd. Luxshare Precision Industry (Suzhou) Co., Ltd. Luxshare iTech (Zhejiang) Co., LTD. Luxshare Intelligent Manufacture Technology (Changshu) Co., Ltd. Dongguan Luxshare Technology Co., Ltd. Dongguan Dongguan Processing and manufacturing 90.00 % Establishment Changshu Changshu Processing and manufacturing 100.00 % Establishment Jiashan Jiashan Processing and manufacturing Suzhou Suzhou Processing and manufacturing 100.00 % Establishment Enshi Hong Kong Processing and manufacturing Shenzhen Shenzhen Processing and manufacturing 70.00 % Establishment Ji’an Ji’an Processing and manufacturing 100.00 % Establishment Xingning Xingning Processing and manufacturing 100.00 % Establishment Shanghai Shanghai Trade Business combination not 51.00 % involving enterprises under common control

内容: Luxshare Technologies Limited Hong Kong Hong Kong

内容: Business Donguan Xuntao Electronic Co., Ltd. Dongguan Dongguan Processing and manufacturing combination not 90.00 % involving enterprises under common control Xingning Luxshare Technology Co., Ltd. Kunshan-Luxshar e RF Technology Kunshan Co., Ltd. Hangzhou Xuntao Hangzhou Technology Co., Ltd. Zhejiang Puxing Electronic Technology Co., Ltd. Guangdong Luxshare Smart-Link Electronic Technology Co., Ltd. Changshu Luxshare Industrial Investment Management Co., Ltd. Rugao Luxshare Corporate Management Services Partnership (Limited Partnership) 290 Rugao Rugao Investment consulting 9.09 % Establishment Changshu Changshu Investment consulting 100.00 % Establishment Dongguan Dongguan Processing and manufacturing 90.00 % Establishment Zhejiang province Zhejiang province Processing and manufacturing Hangzhou Kunshan Processing and manufacturing Xingning Xingning Processing and manufacturing 90.00 % Establishment

内容: Business combination not 63.00 % involving enterprises under common control

内容: Lianxun Intelligent Equipment (Rugao) Co., Ltd. Yancheng Luxshare Corporate Management Services Partnership (Limited Partnership) Luxshare Intelligent Equipment (Yancheng) Co., Ltd. Kunshan Luxshare Enterprise Management Development Co., Ltd. Kunshan Luxshare Corporate Management Services Partnership (Limited Partnership) Luxshare Intelligent Equipment (Kunshan) Co., Ltd. Luxshare Precision Technology(Xi’a n) Co., Ltd. Luxshare Electronic Enshi Enshi Processing and manufacturing 100.00 % Establishment Xi’an Xi’an Processing and manufacturing 100.00 % Establishment Kunshan Kunshan Processing and manufacturing 9.46 % Establishment Kunshan Kunshan Investment consulting 9.09 % Establishment Kunshan Kunshan Investment consulting 100.00 % Establishment Yancheng Yancheng Investment consulting 9.14 % Establishment Yancheng Yancheng Investment consulting 9.09 % Establishment Rugao Rugao Processing and manufacturing 9.09 % Establishment

内容: Technology (Enshi) Co., Ltd. Luxis Technology (Kunshan) Co., Ltd. Luxcase Precision Technology (Yancheng) Co., Ltd. Yancheng Yancheng Processing and manufacturing 51.83 % Kunshan Kunshan Processing and manufacturing

内容: Business combination not involving enterprises under common control Business Shanghai Shanghai Processing and manufacturing combination not 51.83 % involving enterprises under common control Business Jiashan Jiashan Processing and manufacturing combination not 51.83 % involving enterprises under common control Business Shanghai Shanghai Processing and manufacturing combination not 51.83 % involving enterprises under common control Business Shanghai Shanghai Processing and manufacturing combination not 51.83 % involving enterprises under common control Business Rugao Rugao Processing and manufacturing combination not 51.83 % involving enterprises under common control Business

内容: Ri Pei Computer Accessory (Shanghai) Co., Ltd. Ri Shan Computer Accessory (Jiashan) Co., Ltd. Ri Ming Computer Accessory (Shanghai) Co., Ltd. Sheng-Rui Electronic Technology (Shanghai) Limited Rida Intelligent Manufacture Technology (Rugao) Co.,LTD.

内容: Caseteck Singapore PTE.LTD., Singapore Singapore

内容: combination not 51.83 % involving enterprises under common control

内容: (Rugao) Co., Ltd. Luxis Precision Intelligent Manufacture (Kunshan) Co., Ltd. Luxshare Intelligent Manufacture Electornic Service (Kunshan) Co., Ltd. Liding Electronic Technology (Dongguan) Co., Ltd. Luxshare Precision Technology(Nanji ng) Co., Ltd. Nanjing Nanjing Dongguan Dongguan Kunshan Kunshan Kunshan Kunshan

内容: Descriptions on the difference between the shareholding ratio and the voting right ratio in the subsidiary: Basis for holding half or less voting rights but still controlling the investee, and holding more than half of the voting rights but not controlling the investee: Basis for the control of significant structured entities included in the consolidation scope: Basis for determining whether a company is an agent or a principal: Other descriptions:

内容: (2) Significant non-wholly-owned subsidiaries

内容: In RMB Profit or loss attributable to minority shareholders in the current period Dividends declared and distributed to minority shareholders in the current period Balance of minority interest at the end of the period

内容: Shareholding ratio of minority shareholders

内容: Fujian JK Wiring Systems Co., Ltd.. Luxshare Automation (Jiangsu) Ltd. M&A Merry Electronics (Huizhou) Co., LTD

内容: Merry Electronics (Suzhou) Co., Ltd. SpeedTech Corp. Luxcase Precision Technology (Yancheng) Co., Ltd.

内容: Descriptions on the difference between the shareholding ratio of minority shareholders and their voting right ratio in the subsidiary: Other descriptions:

内容: (3) Main financial information of significant non-wholly-owned subsidiaries

内容: Luxcase Precision Technolo 22 ,778,4 gy (Yanche ng) Co., Ltd. In RMB Amount recognized in the current period Name of subsidiary Operating income Net profits Total comprehensi ve incomes Cash flow from operating activities Operating income Net profits Amount recognized in the prior period Total comprehensi ve incomes Cash flow from operating activities 81,259.2 6 9 ,339,57 0,358.86 32 ,118,0 20 ,783,8 51,618.1 02,429.8 2 9 337 ,685, 747.10 21 ,121,4 88,176.9 9

内容: (4) Major restrictions on the use of enterprise group assets and repayment of enterprise group debts (5) Financial support or other support provided to structured entities included in the scope of consolidated financial statements

内容: 2. Transactions in which the share of owners’ equity in the subsidiary changes and still controls the subsidiary (1) Descriptions on changes in the shares of owners’ equity in subsidiaries (2) Impact of transactions on minority interest and owners’ equity attributable to the parent company

内容: Acquisition cost/ disposal consideration --Cash -- Fair value of non-cash assets

内容: Total acquisition cost/ disposal consideration Less: share of subsidiaries’ net assets calculated by the proportion of acquired/disposed equity shares Difference Including: Adjustment to capital reserve Adjustment to surplus reserve Adjustment to undistributed profits Other descriptions

内容: 3. Equity in joint ventures or associates (1) Significant joint ventures or associates

内容: Shareholding ratio Name of joint venture or associate Main place of business Place of registration Nature of business Direct Indirect Accounting treatment of investment in joint venture or associate Descriptions on the difference between the shareholding ratio and the voting right ratio in the joint venture or associate: Basis for holding less than 20% of the voting rights but having significant influence, or holding 20% or more of the voting rights but without significant influence: 296

内容: (2) Main financial information of significant joint ventures

内容: In RMB Closing balance/Amount recognized in the current period Opening balance/Amount recognized in the prior period

内容: Current assets Including: cash and cash equivalents Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Minority interests Equity attributable to shareholders of the parent company Share of net assets calculated by shareholding proportion Adjusted items: -- Goodwill -- Unrealized profit of internal transactions --Other Book value of equity investment in joint ventures Fair value of equity investment in joint ventures with published quoted price Operating income Financial expenses Income tax expenses Net profits Net profit from discontinued operation Other comprehensive income Total comprehensive incomes

内容: Dividends received from joint ventures in the current year

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Other descriptions

内容: (3) Main financial information of significant associates

内容: Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities

内容: Minority interests Equity attributable to shareholders of the parent company Share of net assets calculated by shareholding proportion Adjusted items: -- Goodwill -- Unrealized profit of internal transactions --Other Book value of equity investment in associates Fair value of equity investment in associates with published quoted price Operating income Net profits Net profit from discontinued operation Other comprehensive income Total comprehensive incomes

内容: Dividends received from associates in the current year Other descriptions 298

内容: (4) Summary financial information of insignificant joint ventures and associates

内容: In RMB Closing balance/Amount recognized in the current period Joint ventures: Total amount of the following items calculated according to shareholding ratio Associates: Total amount of the following items calculated according to shareholding ratio Other descriptions ----Opening balance/Amount recognized in the prior period -----

内容: (5) Descriptions on significant restrictions on the ability of joint ventures or associates to transfer funds to the Company (6) Excess loss of joint ventures or associates

内容: In RMB Name of joint venture or associate Other descriptions Cumulative unrecognized losses accumulated in previous period Unrecognized losses in the current period (or net profit shared in the current period) Cumulative unrecognized losses at the end of the period

内容: (7) Unconfirmed commitments related to investment in joint ventures (8) Contingent liabilities related to investment in joint ventures or associates 4. Significant joint operations

内容: Name of joint operation Main place of business Shareholding ratio / share Place of registration Nature of business Direct Indirect

内容: Descriptions on the difference between the shareholding ratio or share and the voting rights ratio in the joint operation: Basis for classifying a separate entity into joint operation: Other descriptions

内容: 5. Equity in structured entities not included in the consolidated financial statements

内容: Descriptions on structured entities not included in the consolidated financial statements:

内容: X. Risks associated with financial instruments

内容: 1. Credit risks Credit risks refer to the risks that one party to a financial instrument suffers financial losses due to the failure of the other party to perform its obligations.The customer credit risks mainly faced by the Company come from credit sale.Before signing a new contract, the Company will assess the credit risks generated by new customers from perspectives such as external credit rating and, in some cases, bank credit certification (when the same is available).The Company has a credit limit, which is the maximum amount without additional approval, for each customer. The Company ensures that its overall credit risk is within the controllable range through quarterly monitoring of credit rating of existing customers and monthly review of aging analysis of accounts receivable.Customers are grouped according to their credit characteristics when the credit risks from them are monitored.Customers rated as “high risk” will be placed on the restricted customer list, and only with additional approval can the Company sell them on credit in the future period, otherwise they must be required to pay the corresponding amount in advance. 2. Market risks Market risks of financial instruments refer to the risks that the fair value or future cash flow of financial instruments will fluctuate due to market price changes, including exchange rate risk, interest rate risk and other price risks. (1) Interest rate risk Interest rate risk refers to the risk that the fair value or future cash flow of financial instruments will fluctuate due to the change in market interest rate.The interest rate risk faced by the Company mainly comes from the long-term and short-term borrowings from banks.The Company, under its current policy, seeks to borrow in USD with a lower loan interest rate.In order to obtain loans, the Company has provided guarantee for its wholly-owned overseas subsidiaries ICT-Lanto Limited and Luxshare Precision Limited for overseas financing. (2) Exchange rate risk Exchange rate risk refers to the risk that the fair value of financial instruments or future cash flow will fluctuate due to the change in foreign exchange rate.The Company tries to match foreign currency income with foreign currency expenditure to reduce exchange rate risk.In addition, the Company has signed forward foreign exchange contracts to avoid exchange rate risk. (3) Other price risks The Company holds equity investments of other listed companies, and the management believes that the market price risks faced by these investment activities is acceptable. The equity investments of listed companies held by the Company are presented as follows: Item Other investments in equity instruments Closing balance 210 ,278,829.12 Balance at the end of last year 114 ,221,319.04

内容: Liquidity risks refer to, with respect to an enterprise, the risks of capital shortage to the enterprise when it fulfills its obligation of settlement by cash or other financial assets.It is the Company’s policy to ensure that there is sufficient cash to pay its debts as they fall due.The liquidity risks are controlled by the financial department of the Company in a unified manner.By monitoring the cash balance, marketable securities that can be realized at any time and rolling forecast of cash flow in the next 12 months, the financial department ensures that the Company has sufficient funds to repay debts under all reasonable forecasts.

内容: 1. Closing fair value of assets and liabilities measured at fair value

内容: In RMB Closing balance of fair value Item Level I I. Continuous fair value measurement (I) Held-for-trading financial assets 1. Financial assets at fair value through profit or loss (2) Equity instrument investment (3) Derivative financial assets (III) Other equity instrument investments (VI) Held-for-trading financial liabilities Including: held-for-trading bonds issued II. Non-continuous fair value measurement --210 ,278,829.12 115 ,918,643.05 5 ,700,000.00 5 ,700,000.00 115 ,918,643.05 1 ,991,199,461.99 2 ,107,118,105.04 -Level II -Level III -Total --

内容: 2. Basis for determining the market price of the items continuously and not continuously measured at fair value at level I Level I inputs are quoted market price (unadjusted) in an active market for an identical asset or liability available at the date of measurement. 3. Valuation technology and qualitative and quantitative information of important parameters used in the items continuously and not continuously measured at fair value at level II. Level II inputs are inputs other than quoted market price (Level I) that are directly or indirectly observable for the asset or liability.

内容: 4. Valuation technology and qualitative and quantitative information of important parameters used in the items continuously and not continuously measured at fair value at level III Level III inputs are unobservable inputs for the asset or liability.

内容: 5. Adjustment information between the opening book value and the closing book value, and the sensitivity analysis of unobservable parameters for items continuously measured at fair value at the third level

内容: 6. For items continuously measured at fair value, if there is conversion between different levels in the current period, the reasons for the conversion and the policy for determining the conversion time point

内容: 7. Changes in valuation technology in the current period and reasons for changes

内容: 8. Fair value of financial assets and financial liabilities not measured at fair value

内容: XII. Related parties and related-party transactions

内容: Shareholding ratio of Voting rights ratio of Place of registration Nature of business Registered capital the parent company the parent company in the Company Hong Kong Industry HKD10,000 38.63 % in the Company 38.63 %

内容: Descriptions on the parent company of the Company

内容: The ultimate controller of the Company is WANG Laichun and WANG Laisheng； As of December 31, 2021, Luxshare Limited has pledged 19.23% of shares it held. The ultimate controller of the enterprise is.

内容: Please refer to Note “IX.Equity in other entities” for details of the Company’s subsidiaries

内容: 3. Joint ventures and associates of the Company

内容: Please refer to Note “IX.Equity in other entities” for details of the Company’s significant joint ventures or associates. Other joint ventures or associates that have related-party transactions with the Company in the current period or formed a balance due to related-party transactions with the Company in the prior period are as follows: Name of joint venture or associate Riyimao Industrial Co., Ltd. Relationship with the Company Joint-stock company of a majority-owned sub-subsidiary of the Company Joint-stock company of a majority-owned sub-subsidiary of the Company Joint-stock company of a majority-owned sub-subsidiary of the Company Joint-stock company of a majority-owned sub-subsidiary of the Company Joint-stock company of a majority-owned sub-subsidiary of the Company Joint-stock company of a majority-owned sub-subsidiary of the Company Joint-stock company of the Company’s subsidiary Associates of the Company

内容: Caldigit American Inc. MERRY & LUXSHARE (VIET NAM) CO.,LTD Zhuhai Kinwong Flexible Circuit Co., Ltd. Other descriptions

内容: Name of other related parties Bisaisi Automotive Technology (Suzhou) Co., Ltd. BCS AUTOMOTIVE INTERFACE SOLUTIONS Luxsan Technology (Kunshan) Co., Ltd. Luxsan Precision Intelligent Manufacture LUXSAN TECHNOLOGY LIMITED Guangzhou Luxvisions Innovation Technology Limited Shangrao City Lijing Innovation Technology Co., Ltd. Luxvisions Innovation Limited Xunmu Information Technology (Shanghai) Co., Ltd. Other descriptions Relationship between other related parties and the Company An enterprise controlled by the Company’s parent company An enterprise controlled by the Company’s parent company An enterprise controlled by the Company’s parent company (Kunshan) Co., Ltd. An enterprise controlled by the Company’s parent company An enterprise controlled by the Company’s parent company Other related party of the Company Other related party of the Company Other related party of the Company Controlled by the de facto controller

内容: 5. Related-party transactions (1) Related-party transactions of purchasing and selling goods, rendering and accepting services

内容: Purchasing goods/accepting services In RMB Related-party transactions Amount recognized in the current period 14 ,579,642.24 Approved transaction limit Whether the transaction limit is exceeded No Amount recognized in the prior period

内容: Assem Technology Equipment and Co., Ltd. Assem Technology Co., Ltd. Zhuhai Kinwong Flexible Circuit Co., Purchasing goods Ltd. Bisaisi Automotive Technology (Suzhou) Co., Ltd. Guangzhou Luxvisions Innovation Technology Limited Purchasing goods Purchasing goods apparatus Other services

内容: Luxsan Technology (Kunshan) Co., Ltd. Luxsan Precision Intelligent Manufacture (Kunshan) Co., Ltd. LUXSAN TECHNOLOGY LIMITED MERRY &

内容: LUXSHARE (VIET Purchasing goods NAM) CO.,LTD Selling goods/rendering services

内容: In RMB Related party Riyimao Industrial Co., Ltd. Riyimao Industrial Co., Ltd. Ayala Design Co., Ltd.(Japan) Caldigit (UK) Limited Caldigit American Inc. Assem Technology Co., Ltd. Zhuhai Kinwong Flexible Circuit Co., Ltd. Shangrao City Lijing Innovation Technology Co., Ltd. Guangzhou Luxvisions Innovation Technology Limited Equipment and apparatus 2 ,542,359.91 18 ,034.55 218 ,717,133.08 106 ,918,653.51 43 ,045,170.20 Selling products 346 ,000.00 1 ,383,434.92 Related-party transactions Processing goods purchased Other services Selling products Selling products Selling products Other services Selling products 297 ,821.29 886.00 Amount recognized in the current period Amount recognized in the prior period 6 ,691.91 1 ,842.54 4 ,495,492.93 31 ,496,213.08 135 ,401,289.61 7 ,133.15 20 ,714.40

内容: Luxvisions Innovation Limited Selling products Bisaisi Automotive Technology (Suzhou) Co., Ltd. BCS AUTOMOTIVE INTERFACE SOLUTIONS Luxsan Technology (Kunshan) Co., Ltd. Luxsan Precision Intelligent Manufacture (Kunshan) Co., Selling products

内容: Ltd. Xunmu Information Technology (Shanghai) Co., Ltd. MERRY & LUXSHARE (VIET NAM) CO.,LTD Selling products 10 ,792,326.99

内容: Descriptions on related-party transactions of purchasing and selling goods, and providing and accepting services The approved related-party transactions amounted to RMB 777 million in total.

内容: (2) Related-party entrusted management/contracting and entrusted management/outsourcing

内容: Entrusted management/contracting of the Company: In RMB Commencement date of entrustment/contr act Pricing basis of trusteeship income/contract income Trusteeship income/contract income recognized in the current period

内容: Termination date of entrustment / contract

内容: Descriptions on related-party trusteeship/contract Statement of entrusted management/outsourcing of the Company: In RMB Commencement date of entrustment/contr act Pricing basis of trusteeship income/contract income Trusteeship income/contract income recognized in the current period

内容: Descriptions on related-party management/outsourcing

内容: The Company acts as the lessor: In RMB Name of lessee Riyimao Industrial Co., Ltd. Xuande Energy Co., Ltd. The Company acts as the lessee: In RMB Name of lessor Luxsan Precision Intelligent Types of leased assets Fixed assets and buildings Lease income recognized in the Lease income recognized in the current period 9 ,801,826.37 previous period 0.00 306 Types of leased assets Fixed assets Fixed assets Lease income recognized in the Lease income recognized in the current period 0.00 0.00 previous period 21 ,117.59 108 ,412.88

内容: Types of Current period Prior period leased assets Rental costs for short-term Rents Right-of-use Interest cost of Lease paid assets increased lease liabilities payments leases and low-value asset assumed recognized leases that are treated in a simplified manner and variable lease payments that are not included in the measurement of lease liabilities 85 ,406,789.07 1 ,536,653.21

内容: Fixed assets Luxsan and buildings Precision Intelligent Manufacture (Kunshan) Co., Ltd.

内容: The Company acts as the guarantor In RMB Guaranteed party Luxshare Precision Limited Amount of guarantee Commencement date of guarantee Maturity date of guarantee July 19, 2025 No Whether the guarantee has been fulfilled

内容: The Company acts as the guaranteed party In RMB Guarantor Amount of guarantee Commencement date of guarantee Maturity date of guarantee Whether the guarantee has been fulfilled

内容: In RMB Related party Borrow Lend Loan amount Commencement date Maturity date Remarks

内容: (6) Asset transfer and debt restructuring of related parties

内容: In RMB Related party Related-party transactions Amount recognized in the current period Amount recognized in the prior period

内容: In RMB Item Compensation of key managers Share-based payment of key managers Amount recognized in the current period 10 ,465,440.15 5 ,454,355.12 Amount recognized in the prior period 11 ,414,640.00 9 ,586,952.73

内容: (8) Other related-party transactions 6. Accounts receivable and payable of related parties (1) Receivables

内容: In RMB Closing balance Item Accounts receivable Shangrao City Lijing Innovation Technology Co., Ltd. Guangzhou Luxvisions Innovation Technology Limited Bisaisi Automotive Technology (Suzhou) Co., Ltd. Ayala Design Co.,Ltd.(Japan) Caldigit (UK) Limited Caldigit American Inc. BCS 95 ,631.05 47.82 890 ,628.97 445.31 158 ,076,590.05 79 ,038.30 59 ,654,508.75 29 ,827.25 1 ,617,967.38 808.98 14 ,398,489.55 7 ,199.24 324 ,853.80 162.43 Related party Book balance Bad-debt provision Book balance Bad-debt provision Opening balance

内容: AUTOMOTIVE INTERFACE SOLUTIONS Assem Technology Co., Ltd. Luxsan Technology (Kunshan) Co., Ltd. Xunmu Information Technology (Shanghai) Co., Ltd. Merry & Luxshare （Vietnam） Co., Ltd Other receivables Guangzhou Luxvisions Innovation Technology Limited Bisaisi Automotive Technology (Suzhou) Co., Ltd. Xuande Energy Co., Ltd. Luxsan Technology (Kunshan) Co., Ltd. BCS AUTOMOTIVE INTERFACE SOLUTIONS Merry & Luxshare （Vietnam） Co., Ltd 84 ,161.60 420.81 803 ,488.22 4 ,017.44 167 ,101.03 835.51 168 ,480.23 842.40 4 ,200.00 21.00 69 ,933.44 349.67 6 ,316,914.83 3 ,158.46 12 ,256,936.88 6 ,128.47 311 ,427.22 155.71

内容: In RMB Item Accounts payable Assem Technology Co., Ltd. Guangzhou Luxvisions 5 ,479,111.65 1 ,445,279.42 12 ,581.87 309 Related party Closing book balance Opening book balance

内容: Innovation Technology Limited Luxvisions Innovation Limited Bisaisi Automotive Technology (Suzhou) Co., Ltd. Luxsan Precision Intelligent Manufacture Ltd. Luxsan Technology (Kunshan) Co., Ltd. Riyimao Industrial Co., Ltd. Zhuhai Kinwong Flexible Circuit Co., Ltd. Merry & Luxshare （Vietnam） Co., Ltd LUXSAN TECHNOLOGY LIMITED Other payables Assem Technology Co., Ltd. 2 ,537.96 398 ,415.58 8 ,597,415.91 5 ,143.81 3 ,195,766.80 (Kunshan) Co., 37 ,710,113.75 80 ,169.45 2 ,980,261.04 447 ,157.67

内容: 7. Commitment of related parties 8. Others

内容: 1. General situation of share-based payment

内容: √ Applicable □ N/A In RMB Total amount of the Company’s equity instruments granted in the current period Total amount of the Company’s equity instruments exercised in the current period Total amount of the Company’s equity instruments invalid in the current period The range of exercise prices of Company’s outstanding stock options at the end of the period and the remaining term of the contract The range of exercise prices of other equity instruments issued by the Company at the end of the period and the remaining term of the contract Other descriptions 310 See the following 52 ,092,000.00

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 The range of exercise prices of Company’s outstanding stock options at the end of the period and the remaining term of the contract: (1) On September 25, 2018, the Proposal on Granting Stock Options to Grantees under the 2018 Stock Option Incentive Plan of Luxshare Precision Industry Co., Ltd.was approved upon deliberation at the Fifth Meeting of the Fourth Session of the Board of Directors of the Company. Accordingly, the Company granted 97.50 million of stock options to 1,899 eligible grantees at the exercise price of RMB17.58 per share.After 12 months from the date on which the registration of grants was completed, grantees meeting the exercise conditions would exercise the options in five periods, with a proportion of 20% for each period, in the following 60 months; According to the Proposal on Satisfying the Exercise Conditions for the Second Exercise Period under the 2018 Stock Option Incentive Plan approved upon deliberation at the Twenty-seventh Meeting of the Fourth Session of the Board of Directors of the Company held on December 2, 2020, given that the exercise condition for the second exercise period under the 2018 Stock Option Incentive Plan had been matured, it was agreed that 1,718 grantees of the 2018 Stock Option Incentive Plan would independently exercise their options at the exercise price of RMB10.28 per share, with the estimated stock options to be exercised numbering 31,212,577 (the actual number of stock options to be exercised shall be subject to registered number by Shenzhen Branch of China Securities Depository and Clearing Co., Ltd.) (2) On April 22, 2019, the Company held the Ninth Meeting of the Fourth Session of the Board of Directors, deliberating and approving the Proposal on Granting Stock Options to Initial Grantees under the 2019 Stock Option Incentive Plan of Luxshare Precision Industry Co., Ltd., whereby it was determined that 50,076,000 stock options would be granted to 348 eligible grantees and 12, 519,000 stock options would be reserved for future granting.The stock options initially granted under this incentive plan was RMB 23.36 per share.On November 27, 2019, the Company held the Thirteenth Meeting of the Fourth Session of the Board of Directors, deliberating and approving the Proposal on Granting Stock Options to Grantees Reserved under the 2019 Stock Option Incentive Plan, pursuant to which the Company granted 16,274,700 stock options to 263 eligible grantees at an exercise price of RMB17.93 per share, and after 12 months from the date on which the registration of grants was completed, grantees meeting the exercise conditions would exercise the stock options in five periods, with a proportion of 20% for each period, in the following 60 months. On June 22, 2020, the Company held the Nineteenth Meeting of the Fourth Session of the Board of Directors, deliberating and approving the Proposal on Satisfying the Exercise Conditions for the Initial Exercise Period under the 2019 Stock Option Incentive Plan, pursuant to which the exercise condition for the first exercise period under the 2019 Stock Option Incentive Plan was matured.Therefore, it was agreed that 339 initial grantees of the 2019 Stock Option Incentive Plan would independently exercise their options at the exercise price of RMB13.70 per share, with the estimated stock options to be exercised numbering 16,456,708 (the actual number of stock options to be exercised is subject to registered number by Shenzhen Branch of China Securities Depository and Clearing Co., Ltd.). On December 3,2021, the Company held the Sixth Meeting of the Fifth Session of the Board of Directors, deliberating and approving the Proposal on Granting Stock Options to Grantees under the 2021 Stock Option Incentive Plan of Luxshare Precision Industry Co., Ltd., whereby it was determined that 52,419,000 stock options would be granted to 1,097 eligible grantees on December 3, 2021 as the grant date of the incentive plan.The exercise price of stock options initially granted under this incentive plan was RMB 35.87 per share.Since 22 original grantees resigned from the Company and 3 original grantees gave up all stock options to be granted to them for personal reasons, the number of grantees subject to this stock option incentive was changed from 1,097 to 1,072 and the quantity of stock options granted was changed from 52,419,000 to 52,092,000.

内容: 2. Share-based payment settled in equity

内容: Method of determining the fair value of equity instruments on the grant date

内容: Black-Scholes model The determination is made by the Company according to the

内容: Basis for determining the number of exercisable equity instruments equity instruments corresponding to the on-the-job grantees and the Company’s performance forecast in the future. Reasons for significant differences between current and prior estimates Cumulative amount of share-based payment settled in equity included in the capital reserve Total amount of share-based payment settled in equity recognized in the current period Other descriptions (1) On September 25, 2018, the Company held the Fifth Meeting of the Fourth Session of the Board of Directors and the Fifth Meeting of the Fourth Session of the Board of Supervisors, deliberating and approving the Proposal on Granting Stock Options to Grantees under the 2018 Stock Option Incentive Plan of Luxshare Precision Industry Co., Ltd., whereby it was determined that 97,500,000 stock options would be granted to 1,899 eligible grantees on September 25, 2018 as the grant date of the incentive plan. On November 27, 2019, the Company held the Thirteenth Meeting of the Fourth Session of the Board of Directors and the Thirteenth Meeting of the Fourth Session of the Board of Supervisors, deliberating and approving the Proposal on Adjusting the Exercise Price and Quantity under the 2018 Stock Option Incentive Plan and Canceling Some Stock Options as well as the Proposal on Satisfying the Exercise Conditions for the Initial Exercise Period of the 2018 Stock Option Incentive Plan. According to relevant provisions of the Measures for Managing Equity Incentives of Listed Companies, the Company’s 2018 Stock Option Incentive Plan (Draft) and the Administrative Measures for the Implementation and Assessment of the 2018 Stock Option Incentive Plan, and as authorized by the Company’s second extraordinary general meeting of shareholders in 2018, the adjustment of the exercise price and quantity under the stock option incentive plan and the cancellation of some options was ratified in response to the implementation by the Company of the annual equity distribution plan in 2018 and the resignation of grantees, etc..After the adjustment, the number of grantees was changed from 1,870 to 1,762, the quantity of stock options granted was changed from 97,300,000 to 122,327,530, and the exercise price of stock options was changed from RMB17.58 per share to RMB13.48 per share. On June 22, 2020, the Company held the Nineteenth Meeting of the Fourth Session of the Board of Directors and the Nineteen Meeting of the Fourth Session of the Board of Supervisors, deliberating and approving the Proposal on Adjusting the Exercise Price and Quantity under the Stock Option Incentive Plans in 2018 and 2019, and Canceling Some Stock Options. After the adjustment, the quantity of stock options that was not exercised was changed from 99,001,310 to 128,698,841, and the exercise price of stock options that was not exercised was changed from RMB13.48 per share to RMB10.28 per share. On December 2, 2020, the Company held the Twenty-seventh Meeting of the Fourth Session of the Board of Directors and the Twenty-seventh Meeting of the Fourth Session of the Board of Supervisors, deliberating and approving the Proposal on Adjusting the Exercise Quantity under the 2018 Stock Option Incentive Plan and Canceling Some Stock Options as well as the Proposal on Satisfying the Exercise Conditions for the Second Exercise Period of the 2018 Stock Option Incentive Plan. After the adjustment, the number of grantees subject to the stock option incentive plan was changed from 1,762 to 1,719, and the quantity of stock options granted was changed from 127,217,803 to 125,056,043. On July 2, 2021, the Company held the Second Meeting of the Fifth Session of the Board of Directors and the Second Meeting of the Fifth Session of the Board of Supervisors, deliberating and approving the Proposal on Adjusting the Exercise 312 None

内容: Price under the Stock Option Incentive Plans in 2018 and 2019, and Canceling Some Stock Options of the Stock Option Incentive Plan in 2019. After the adjustment, the exercise price of stock options that was not exercised was changed from RMB 10.28 per share to RMB 10.17 per share. On September 30, 2021, the Company held the Fourth Meeting of the Fifth Session of the Board of Directors and the Fourth Meeting of the Fifth Session of the Board of Supervisors, deliberating and approving the Proposal on Adjusting the Exercise Quantity under the 2018 Stock Option Incentive Plan and Canceling Some Stock Options. After the adjustment, the number of grantees subject to the stock option incentive plan was changed from 1,719 to 1,695, and the quantity of stock options granted was changed from 93,843,466 to 92,964,441. On December 3, 2021, the Company held the Sixth Meeting of the Fifth Session of the Board of Directors and the Sixth Meeting of the Fifth Session of the Board of Supervisors, deliberating and approving the Proposal on Adjusting the Exercise Quantity under the 2018 Stock Option Incentive Plan and Canceling Some Stock Options as well as the Proposal on Satisfying the Exercise Conditions for the Third Exercise Period of the 2018 Stock Option Incentive Plan. After the adjustment, the number of grantees subject to the stock option incentive plan was changed from 1,695 to 1,653, and the quantity of stock options granted was changed from 92,964,441 to 90,887,187. (2) On April 22, 2019, the Company held the Ninth Meeting of the Fourth Session of the Board of Directors and the Ninth Meeting of the Fourth Session of the Board of Supervisors, at which it deliberated and approved the Proposal on Granting Stock Options to Subordinated Grantees under the 2019 Stock Option Incentive Plan of Luxshare Precision Industry Co. , Ltd., determining that 50,076,000 stock options would be granted to 348 eligible initial grantees on April 22, 2019 as the grant date of the incentive plan. On November 27, 2019, the Company held the Thirteenth Meeting of the Fourth Session of the Board of Directors and the Thirteenth Meeting of the Fourth Session of the Board of Supervisors, deliberating and approving the Proposal on Adjusting the Exercise Price and Quantity under the 2019 Stock Option Incentive Plan and the Proposal on Granting Stock Options to Grantees Reserved under the 2019 Stock Option Incentive Plan. Due to the implementation by the Company of the annual equity distribution plan in 2018, the exercise price and quantity under the 2019 stock option incentive plan were adjusted.After adjustment, the exercise price of the stock option initially granted was changed from RMB23.36 per share to RMB17.93 per share, the quantity of stock options initially granted was changed from 50,076,000 to 65,098,800, and the quantity of reserved stock options granted was changed from 12,519,000 to 16,274700. At the same time, the board of directors considered that the Company and the grantees had met the conditions for the grant of reserved stock options under the Company’s 2019 incentive plan, and consented to grant 16,274,700 stock options to 263 grantees on November 27, 2019 as the grant date of reserved stock options at the exercise price of RMB17.93 per share. On June 22, 2020, the Company held the Nineteenth Meeting of the Fourth Session of the Board of Directors and the Nineteenth Meeting of the Fourth Session of the Board of Supervisors, deliberating and approving the Proposal on Adjusting the Exercise Price and Quantity under the Stock Option Incentive Plans in 2018 and 2019, and Canceling Some Stock Options, and the Proposal on Satisfying the Exercise Conditions for the Initial Exercise Period of the 2019 Stock Option Incentive Plan. After this adjustment, the number of initial grantees under the 2019 stock option incentive plan was adjusted from 348 to 340, the quantity of stock options initially granted was adjusted from 65,098,800 to 84,626,558, and the exercise price of the stock options initially granted was adjusted from RMB17.93 per share to RMB13.70 per share;the quantity of reserved stock options granted was adjusted from 16,241,700 to 21,113,740, and the exercise price thereof was adjusted from RMB17.93 per share to RMB13.70 per share. On January 22, 2021, the Company held the Twenty-ninth Meeting of the Fourth Session of the Board of Directors and the Twenty-ninth Meeting of the Fourth Session of the Board of Supervisors, deliberating and approving the Proposal on Adjusting the Reserved Name List of grantees, Exercise Quantity under the 2019 Stock Option Incentive Plan and Canceling Some Stock Options as well as the Proposal on Satisfying the Exercise Conditions for the Initial Exercise Period of the 2019

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 Stock Option Incentive Plan. After the adjustment, the number of grantees subject to the stock option incentive plan was changed from 258 to 250, and the quantity of stock options granted was changed from 21,113,740 to 20,657,454. On July 2, 2021, the Company held the Second Meeting of the Fifth Session of the Board of Directors and the Second Meeting of the Fifth Session of the Board of Supervisors, deliberating and approving the Proposal on Adjusting the Exercise Price under the Stock Option Incentive Plans in 2018 and 2019, and Canceling Some Stock Options of the Stock Option Incentive Plan in 2019, as well as the Proposal on Satisfying the Exercise Conditions for the Second Exercise Period of the 2019 Stock Option Incentive Plan. After the adjustment, the number of initial grantees subject to the stock option incentive plan was changed from 340 to 332, the quantity of stock options initially granted was changed from 65,977,698 to 65,232,789, and the exercise price of stock options that was initially granted and reserved for grantees was changed from RMB 13.70 per share to RMB 13.59 per share. (3) On December 3,2021, the Company held the Sixth Meeting of the Fifth Session of the Board of Directors, deliberating and approving the Proposal on Granting Stock Options to Grantees under the 2021 Stock Option Incentive Plan of Luxshare Precision Industry Co., Ltd., whereby it was determined that 52,419,000 stock options would be granted to 1,097 eligible grantees on December 3, 2021 as the grant date of the incentive plan.The exercise price of stock options initially granted under this incentive plan was RMB 35.87 per share.Since 22 original grantees resigned from the Company and 3 original grantees gave up all stock options to be granted to them for personal reasons, the number of grantees subject to this stock option incentive was changed from 1,097 to 1,072 and the quantity of stock options granted was changed from 52,419,000 to 52,092,000.

内容: 4. Modification and termination of share-based payment

内容: Significant commitments on the balance sheet date

内容: The Company has no significant commitments to be disclosed.

内容: 2. Contingencies (1) Significant contingencies on the balance sheet date The Company has no significant contingencies to be disclosed.(2) Notes shall be made if the Company has no significant contingencies that need to be disclosed

内容: The Company has no significant contingencies to be disclosed.

内容: In RMB Item Content Effected quantum on financial position and operating results Reasons why the effected quantum cannot be estimated

内容: In RMB Profits or dividends planned to distribute Profits or dividends approved to distribute 779 ,273,162.47 779 ,273,162.47

内容: 3. Sales return 4. Description on events after the balance sheet date

内容: (I) Significant non-adjusting items 1. According to the resolution of the Seventh Meeting of the Fifth Session of the Board of Directors, the Company intends to raise funds totaled up to RMB13,500,000,000 through private offering of shares.The number of shares to be issued privately is determined as the amount obtained by dividing the total raise funds by the issue price this time, and shall not exceed 30% of the total share capital of the Company before this issue, i.e.not more than 2,123,110,448 shares (inclusive). 2. According to the resolution of the Eighth Meeting of the Fifth Session of the Board of Directors, the Company intends to apply for a comprehensive credit line amounting to RMB28.2 billion in aggregate from 16 banks. The above credit line will be subject to the actual approval of these banks and comprises RMB loans, bank acceptance bills, letters of credit, letters of guarantee, forward foreign exchange and other local and foreign currency credit varieties, with credit terms of one year for all. 3. On February 11, 2022, the Company made and entered into a Strategic Cooperation Framework Agreement ("Agreement") with Chery Holding Group Co., LTD.(“Chery Holding”), Chery Automobile Co., LTD.(“Chery Automobile”) and Chery New Energy Vehicle Co., LTD.(“Chery New Energy”) (Chery Holding, Chery Automobile, Chery New Energy and its related parties collectively referred to as "Chery Group"), pursuant to which a strategic partnership between the two parties have been established.On the basis of the Agreement, the Company and Chery New Energy intend to jointly establish a joint venture company which will specialize in developing and manufacturing new energy vehicles, and provide a cutting-edge R&D design, mass production platform and sale 315

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 channel for Luxshare Precision's core automotive parts business, committed to achieving the Company’s medium- and long-term goal of becoming the Tier 1 leader in the field of automotive parts. 4. In order to further improve its strategic layout, the Company intended to acquire 204,930,000 shares (representing approximately 11.09%, “Underlying Share 1”) of Time Interconnect Technology Limited (a company listed on the main board of the Hong Kong Stock Exchange with a stock code of 01729.HK, “Time Interconnect Technology” or “Underlying Company”) held by Datatech Investment Inc.("Seller 1") and 1,175,070,000 shares (representing approximately 63.58% , “Underlying Share 2”, and collectedly referred to as “Underlying Shares” together with “Underlying Share 1”) of the Underlying Company held by Time Interconnect Holdings Limited (“Seller 2”) at a price of HKD 0.8 per share (equivalent to approximately RMB 0.65 per share discounted by the mid-rate of HKD1:RMB 0.81656 as announced by the People's Bank of China on February 11, 2022, the same as below) through LUXSHARE PRECISION LIMITED (“LUXSHARE PRECISION”), a wholly-owned overseas subsidiary of the Company y(“Acquisition”).Shares of the Underlying Company involved in the Acquisition totaled in 1,380,000,000 shares, representing approximately 74.67%, with a total consideration amounting to HKD 1,104,000,000.00.In terms of the Acquisition, a Share Purchase Agreement was made and entered into by and among Seller 1, Seller 2, LUXSHARE PRECISION and Lo Chung Wai, Paul on February 11, 2022. On 17 March 2022, LUXSHARE PRECISION paid the purchase price of HKD 1,104,000,000 in full to Seller 1 and Seller 2 and completed the settlement of all Underlying Shares.Upon completion of the settlement, LUXSHARE PRECISION held 1,380,000,000 shares of Time Interconnect Technology in total, representing approximately 72.18% of the issued shares of Time Interconnect Technology as of the close time on March 16, 2022. On March 30, 2022, LUXSHARE PRECISION, as the offeror, gave a mandatory unconditional cash offer for acquisition of all issued shares of Time Interconnect Technology and cancellation of all purchase options not exercised yet (excluding those already held by LUXSHARE PRECISION and its parties acting in concert). This offer was terminated at 4:00 p.m.on April 19, 2022, as of which LUXSHARE PRECISION has received valid acceptances of an aggregate of 594,000 offer shares under this offer (the "Accepted Shares"), representing approximately 0.03% of the total issued shares of Time Interconnect Technology as of the close time on April 19, 2022; prior to the commencement of this offer, LUXSHARE PRECISION and its parties acting in concert had held 1,380,000,000 shares of Time Interconnect Technology in total, representing approximately 70.92% of the total issued shares of Time Interconnect Technology as of the close time on March 25, 2022. As of the close time on April 19, 2022, after calculating the sum of the Accepted Shares and the shares of Time Interconnect Technology held by LUXSHARE PRECISION and its parties acting in concert, LUXSHARE PRECISION and its parties acting in concert held 1,380,594,000 shares of Time Interconnect Technology in total, representing approximately 70.95% of the total issued shares of Time Interconnect Technology. 5. According to the resolution of the Eighth Meeting of the Fifth Session of the Board of Directors, the Company intends to take appropriate low-risk investment and wealth management activities to improve the efficiency of using the Company's funds and further increase the Company's proceeds. Therefore, the Company plans to purchase low-risk investment wealth management products with high security and good liquidity by using its independently-owned idle funds with an amount up to RMB 4 billion, with a valid term equal to or less than 12 months from the date of approval, provided that the Company ensures that such purchase will not affect the Company’s normal production and operations and risks of such purchase can be effectively controlled.

内容: 1. Correction of previous accounting errors (1) Retrospective restatement

内容: In RMB Accounting error corrected Processing procedure Name of the affected item in the Cumulative quantum affected

内容: Reasons for adopting method of prospective application

内容: 2. Debt restructuring 3. Asset replacement (1) Exchange of non-monetary assets (2) Replacement of other assets 4. Annuity plan 5. Termination of operation

内容: In RMB Profits from termination of Item Income Costs Total profits Income tax expenses Net profits operation attributable to the owners of the parent company Other descriptions

内容: 6. Segment information (1) Determination basis and accounting policy of reporting segment (2) Financial information of reporting segment

内容: (3) Descriptions on reasons why the Company has no reporting segment or cannot disclose the total assets and liabilities of each reporting segment, if any (4) Other descriptions 7. Other important transactions and events that have an impact on investors’ decision-making 8. Others

内容: XVII. Notes to key items in financial statements of the company

内容: 1. Accounts receivable (1) Categorized disclosure of accounts receivable

内容: Provision for bad debts made individually:

内容: Luxshare Precision Industry Co., Ltd. Annual Report 2021 In RMB Closing balance Description Book balance Entity 1 Total 241 ,403.36 241 ,403.36 Bad-debt provision 241 ,403.36 241 ,403.36 -Provision proportion Reason for provision 100 % It cannot be recovered --

内容: Provision for bad debts made individually: In RMB Closing balance Description Book balance Provision for bad debts made by group: In RMB Closing balance Description Book balance Undue 1 to 60 days overdue 61 to 120 days overdue 121 to180 days overdue 181 to 365 days overdue 1 to 2 years(excluding 1year) Over 2 years Total 926 ,992.27 1 ,358,822,492.40 926 ,992.27 6 ,424,422.80 -100.00 % 1 ,338,844,558.04 8 ,650,481.16 2 ,581,119.38 2 ,885,223.98 4 ,934,117.57 Bad-debt provision 669 ,422.28 432 ,524.06 774 ,335.81 1 ,154,089.59 2 ,467,058.79 Provision proportion 0.05 % 5.00 % 30.00 % 40.00 % 50.00 % Bad-debt provision Provision proportion Reason for provision

内容: Descriptions on basis for determining the group: Provision for bad debts made by group: In RMB Closing balance Description Book balance Descriptions on basis for determining the group: If the bad-debt provision for accounts receivable is made according to the general model of expected credit loss, please refer to the disclosure method of other receivables to disclose the relevant information of bad debt provision: □ Applicable √ N/A Disclosure by aging In RMB Aging Within 1 year (including1 year) Over 3 years 3-4 years Book balance 2 ,907,122,598.74 1 ,168,395.63 1 ,168,395.63 319 Bad-debt provision Provision proportion

内容: Bad-debt provision in the current period: In RMB Amount of change in the current period Category Opening balance Provision Provision on an individual basis Provision on a group basis Total Recover or reversal Closing balance Write off Other

内容: Including significant amounts reversed or recovered from the current provision for bad debts: In RMB Entity name Amount recovered or reversed Recovery method

内容: In RMB Item Including the write-off of significant accounts receivable: In RMB Whether the funds Entity name Nature of accounts receivable Write-off amount Reasons for write off Procedures for write off are generated by related-party transactions Descriptions on the write-off of other receivables: Write-off amount

内容: In RMB Entity name Entity 1 Entity 2 Entity 3 Entity 4 Closing balance of accounts receivable 1 ,370,318,350.67 521 ,621,195.14 142 ,965,001.18 91 ,442,885.66 Proportion in total closing balance of accounts receivable 47.12 % 17.94 % 4.92 % 3.14 % 320 260 ,810.60 71 ,482.50 Closing balance of bad-debt provision

内容: (1) Interest receivable 1 ) Classification of interest receivable

内容: In RMB Whether there is Borrower Closing balance Overdue time Reasons for delay impairment and its judgment basis Other descriptions:

内容: In RMB Item (or Investee) Wan’an Xiexun Electronic Co., Ltd. Lanto Electronic Limited Total Closing balance 11 ,543,626.19 200 ,000,000.00 211 ,543,626.19 11 ,543,626.19 Opening balance 11 ,543,626.19

内容: 2 ) Significant dividends receivable with aging over 1 year

内容: (3) Other receivables 1 ) Classification of other receivables by nature

内容: In RMB Nature of receivables Reserve fund Security deposit Import tax rebate receivable Other Current account Total 142 ,559,720.70 250 ,035,350.00 424 ,384,561.30 Closing book balance 33 ,273.76 31 ,756,216.84 20 ,052,713.03 191 ,697,001.27 332 ,444,406.04 544 ,243,784.10 Opening book balance 49 ,663.76

内容: In RMB Stage I Bad-debt provision 12 -month ECL Lifetime ECL (without Lifetime ECL (with credit 322 Stage II Stage III Total

内容: credit impaired) Balance as at January 1, 2021 Balance as at January 1, 2021 in the current period Reversal Balance as at December 31, 2021 203 ,621.51 876 ,059.65 —— —— 1 ,079,681.16

内容: Changes in book balance of provision for loss with significant changes in the current period □ Applicable √ N/A Disclosure by aging In RMB Aging Within 1 year (including1 year) Total Book balance 424 ,384,561.30 424 ,384,561.30

内容: 3 ) Bad-debt provision made, recovered or reversed in the current period

内容: Bad-debt provision in the current period: In RMB Amount of change in the current period Category Opening balance 1 ,079,681.16 1 ,079,681.16 Provision Recover or reversal 203 ,621.51 203 ,621.51 Write off Other 876 ,059.65 876 ,059.65 Closing balance

内容: 4 ) Other receivables actually written off in the current period

内容: In RMB Item Including the write-off of significant other receivables: In RMB Entity name Nature of other receivables Write-off amount Reasons for write off Procedures for write off Whether the funds are generated by Write-off amount

内容: related-party transactions Descriptions on the write-off of other receivables

内容: 5 ) Other receivables with top five closing balance - by debtor

内容: In RMB Nature of receivables Current account Equity transfer funds Security deposit Security deposit Security deposit -Proportion in total Closing balance Aging closing balance of other receivables 250 ,000,000.00 Undue 142 ,500,000.00 Undue 26 ,800,000.00 Undue 4 ,216,931.94 Undue 412 ,839.90 Undue 423 ,929,771.84 -58.91 % 33.58 % 6.32 % 0.99 % 0.10 % 99.90 % 712 ,500.00 134 ,000.00 21 ,084.66 2 ,064.20 869 ,648.86 Closing balance of bad-debt provision

内容: 6 ) Receivables involving government grants

内容: In RMB Entity name None Name of government grant Closing balance Aging at the end of the period Estimated time, amount and basis of collection

内容: 7 ) Other receivables derecognized due to transfer of financial assets

内容: 8 ) Amount of assets and liabilities formed by transferring other receivables and continuing involvement

内容: In RMB Closing balance Item Book balance Provision for impairment Book value Book balance Opening balance Provision for impairment Book value

内容: Investment in subsidiaries Investment in joint ventures and associates Total

内容: In RMB Opening Investee balance (book value) ASAP Technology (Jiangxi) Co., Ltd. Xiexun Electronic (Ji'an) Co., Ltd. Suining Luxshare Precision Industry Co., Ltd. Luxshare Precision Technology Co., Ltd. ICT-LANTO LIMITED Luxshare Precision Limited Lanto Electronic 3 ,288,818,885 Limited Dongguan Leader Precision 64 ,694,688.88 1 ,147,637.34 65 ,842,326.22 .56 24 ,089,698.93 3 ,312,908,584. 49 32 ,423,829.90 32 ,423,829.90 534 ,084,500.2 453 ,278,000.0 6 0 987 ,362,500.2 6 158 ,059,935.3 2 158 ,059,935.3 2 2 ,291,444.90 104 ,692.66 2 ,186,752.24 243 ,789,479.7 0 244 ,934,671.3 2 271 ,442,772.2 1 3 ,004,414.72 981 ,742.65 273 ,465,444.2 8 Increase and decrease in the current period Closing balance Additional investment Reduced investment Provision for impairment Other (book value) Closing balance of provision for impairment

内容: Luxshare& Merry Electronic Co., Ltd. Bozhou Lanto Electronic Limited Kunshan Luxshare Precision Mould Co., Ltd. Huzhou Jiuding Electronic Co., Ltd. Xinyu Xiexun Electronic Co., Ltd. Luxshare Precision Industry (Xi’an) Co., Ltd. Luxshare Precision Industry (Suzhou) Co., Ltd. Luxshare iTech (Zhejiang) Co., LTD. Bozhou Xuntao Electronic Limited Dongguan Luxshare Technology Co., Ltd. Xuancheng Luxshare Precision Industry Co., Ltd. 3 ,411,822.28 13 ,619,684.02 17 ,031,506.30 883 ,685,555.8 5 6 ,809,458.10 890 ,495,013.9 5 169 ,968.40 55 ,445.18 225 ,413.58 747 ,520,596.6 5 778 ,806,257.1 9 130 ,000,000.0 0 130 ,000,000.0 0 7 ,286,518.99 3 ,194,304.92 10 ,480,823.91 944 ,286.31 272 ,586.50 1 ,216,872.81 2 ,052,314.71 760 ,535.58 1 ,291,779.13 3 ,923,321.03 1 ,049,509.09 4 ,972,830.12

内容: Beijing Luxshare Acoustic Technology Co., Ltd. Luxshare Intelligent Manufacture Technology (Changshu) Co., Ltd. Xingning Luxshare Electronic Co., Ltd. SpeedTech Corp. Luxshare Technologies Limited Luxshare Smart Technology (Rugao) Co., Ltd. Changshu Luxshare Industrial Investment Management Co., Ltd. Kunshan Luxshare Enterprise Management Development Co., Ltd. Luxshare Precision Industry (Jiangsu) Co., Ltd. 95 ,071.11 95 ,071.11 200 ,000,000.0 0 200 ,000,000.0 0 30 ,000,000.00 80 ,210,000.00 110 ,210,000.0 0 12 ,000,000.00 88 ,000,000.00 100 ,000,000.0 0 1 ,872,619.53 -292,938.95 1 ,579,680.58 906 ,496.72 617 ,360.96 1 ,523,857.68 143 ,840.32 38 ,896.21 182 ,736.53 716 ,342,959.9 693 ,171,284.7 7 6 1 ,409,514,244. 73 3 ,563,643.54 1 ,662,117.89 5 ,225,761.43

内容: Rida Intelligent Manufacture Technology （Rugao ) Co.,LTD. Rikai Computer Accessories Co., Ltd. Luxis Technology (Kunshan) Co., Ltd. Luxshare Electronic Technology (Enshi) Co., Ltd. Liding Electronic Technology (Dongguan) Co., Ltd. Luxshare Precision Technology(Xi’ an) Co., Ltd. Luxis Precision Intelligent Manufacture (Kunshan) Co., Ltd. Luxshare Precision Technology(Nan jing) Co., Ltd. Luxsahre Electronic (Shanghai) Co., Ltd. Ri Ming Computer 663 ,622.71 663 ,622.71 340 ,902.08 340 ,902.08 400 ,000.00 400 ,000.00 161 ,382,181.3 0 161 ,382,181.3 0 1 ,000,000.00 1 ,000,000.00 55 ,590,269.64 55 ,590,269.64 15 ,000,000.00 15 ,000,000.00 151 ,471,194.5 2 151 ,471,194.5 2 5 ,760,562,165 .73 5 ,760,562,165. 73 4 ,564,728.72 4 ,564,728.72

内容: (2) Investment in joint ventures and associates

内容: In RMB Increase and decrease in the current period Investme Opening Investee balance (book value) Additiona l investmen t Reduced t nt profit or loss d under equity method I. Joint ventures II. Associates Siliconch 22 ,663,5 -394,382. 22 ,269,1 332 investmen recognize Other comprehe nsive income adjustmen t Other changes in equity Declared Provision cash or profits for nt dividends impairme Other Closing Closing balance (book value) balance of provision for impairme nt

内容: （3） Other descriptions 4. Operating income and operating costs

内容: In RMB Amount recognized in the current period Item Income Principal business Other business Total Income related to information: In RMB Contract classification By product types Including: Segment 1 Segment 2 Total 9 ,174,890,300.12 105 ,254,622.90 9 ,280,144,923.02 Cost 8 ,531,671,602.47 33 ,510,191.72 8 ,565,181,794.19 Income 11 ,464,276,490.11 100 ,827,039.16 11 ,565,103,529.27 Cost 10 ,754,493,607.05 26 ,703,475.62 10 ,781,197,082.67 Amount recognized in the prior period

内容: By geographical areas of operations Including:

内容: Total Information related to performance obligations: N/A Information relating to the transaction price allocated to the remaining performance obligations: At the end of the reporting period, the incomes corresponding to the contracts signed whose performance has not been commenced or completed amount to RMB0.00, of which RMB is expected to be recognized in , RMB is expected to be recognized in , and RMB is expected to be recognized in . Other descriptions:

内容: In RMB Item Long-term equity investment income accounted for using the cost method Long-term equity investment income accounted for using the equity method Investment income from disposal of long-term equity investment Investment income from held-for-trading financial assets during holding period Income from wealth management products Gains from derecognition of financial assets measured at amortized cost. Total 30 ,531,053.98 41 ,433,412.36 -41,003,477.92 2 ,268,732,708.25 3 ,409,929,279.99 Amount recognized in the current period 2 ,242,183,081.46 Amount recognized in the prior period 3 ,325,246,159.60

内容: Breakdown of non-recurring profit and loss for the current period

内容: √ Applicable □ N/A In RMB Item Profit or loss from disposal of non-current assets Government grants recognized in the current profit or loss (except for the government grants which are closely related to the company’s normal business operations and gained at a fixed amount or quantity according to national uniform standards) Gains from the excess of attributable fair value of identifiable net assets of the investee over the consideration paid for the acquisition of subsidiaries, associates and joint ventures Profit or loss on assets under entrusted investment or management Except for effective hedging business related to the company’s normal business operations, profit or loss from changes in fair value arising from the holding of held-for-trading financial assets and liabilities, and investment income from disposal of held-for-trading financial assets and liabilities, and available-for-sale financial assets Other non-operating income and expenses except the above items Other profit and loss items satisfying the definition of non-recurring profit and loss Less: Affected quantum of income tax Affected quantum of minority interest -12,600,634.71 Mainly refer to gains from derecognition -170,939,666.46 of financial assets measured at amortized cost. 211 ,043,425.20 61 ,644,659.76 602 ,993,325.33 16 ,559,223.33 The difference between the original book value and the fair value of long-term equity investment under cost method changed from equity method due to inclusion of subsidiaries into the scope of consolidation. 95 ,298,693.93 853 ,542,165.37 Amount -57,241,855.39 Remarks

内容: Details of other profit and loss satisfying the definition of non-recurring profit and loss □ Applicable √ N/A The Company has no other items of profit and loss satisfying the definition of non-recurring profit and loss. Description of classifying non-recurring profit and loss items enumerated in the Explanatory Announcement No.1 for Public Company Information Disclosures – Non-recurring Profits and Losses as recurring profit and loss items

内容: 2.Return on equity and earnings per share

内容: Earnings per share Profit in the reporting period Weighted average return on equity Basic earnings per share (RMB/share) Net profit attributable to ordinary shareholders of the Company Net profit after deduction of non-recurring profit and loss attributable to ordinary shareholders of the Company 19.34 % 0.86 0.84 22.35 % 1.01 Diluted earnings per (RMB/share) 0.99

内容: 3. Accounting data differences under domestic and foreign accounting standards (1) Differences of net profit and net assets in financial reports disclosed according to International Accounting Standards and Chinese Accounting Standards at the same time

内容: (2) Difference of net profit and net asset in financial reports disclosed according to overseas accounting standards and Chinese Accounting Standards at the same time

内容: (3) Descriptions on the reasons for the differences of accounting data under the accounting standards at home and abroad, and the name of the overseas institution if difference adjustment is made to the data audited by an overseas audit institution 4. Others

内容: Luxshare Precision Industry Co., Ltd. Chairman: WANG Laichun April 27, 2022