/Diankesiyi: Prospectus for initial public offering of shares and listing on GEM

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5d ago

Diankesiyi: Prospectus for initial public offering of shares and listing on GEM

Shenzhen Stock Exchange

2026/09/03

GEM investment risk warning: This issuance of stocks is planned to be listed on the GEM. GEM companies have the characteristics of large investment in innovation, uncertainty in the integration of new and old industries, still in the growth stage, high operating risks, unstable performance, and high delisting risks. Investors face greater market risks. Investors should fully understand the investment risks of GEM and the risk factors disclosed by the company, and make investment decisions prudently.

CEC Cosi Instrument Technology Co., Ltd.

Ceyear Technologies Co., Ltd.

(No. 98, Xiangjiang Road, Huangdao District, Qingdao City, Shandong Province)

Prospectus for initial public offering of shares and listing on GEM

Sponsor (lead underwriter)

(No. 618 Shangcheng Road, China (Shanghai) Pilot Free Trade Zone)

China Electronics Cosi Technology Co., Ltd. Prospectus

Statement to investors

1. The purpose of listing the company

Diankesi Instrument is a high-tech enterprise specializing in the R&D, manufacturing and sales of electronic measuring instruments. It is an enterprise with the most complete product categories and the widest spectrum coverage in the domestic electronic measuring instrument industry. Its main products include complete machines, test systems, complete components, etc. Relying on the profound technical foundation accumulated over decades, Diankesi Instruments has cultivated one of the largest scientific research talent teams in China, possessing top domestic R&D conditions and industrialization capabilities. It is the R&D and manufacturing enterprise of electronic measuring instruments with the strongest comprehensive strength and the largest revenue in China. At the same time, Diankesi Instruments is currently the only electronic measuring instrument company in China that can fully benchmark against leading international companies in the fields of microwave/millimeter wave, optoelectronics, communications and basic measuring instruments. The overall technical level is domestically leading, especially in the field of microwave/millimeter wave measuring instruments, it has reached the international advanced level, and has reached the international leading level in some subdivisions.

This issuance and listing will help the company rely on its capital market advantages to accelerate technological innovation and high-end product upgrades, further enhance its overall R&D strength and industrialization capabilities, and comprehensively enhance the company's comprehensive competitiveness. At the same time, this issuance and listing will help the company improve its modern enterprise management capabilities, expand its brand awareness and market influence, and help the company achieve its strategic goal of becoming a world-class enterprise in the field of testing and measurement.

The company will use this issuance and listing to introduce a diversified investor group, further optimize the ownership structure, and drive the corporate governance structure to be more standardized, transparent and efficient. In addition, the company is committed to actively giving back to shareholders by continuously improving operating performance and maintaining a reasonable dividend policy, so that investors can effectively share the results of the company's innovation-driven, high-quality development and achieve steady growth in shareholder value.

2. Establishment and improvement of the company’s modern enterprise system

The company has gradually established and improved internal governance structures such as the shareholders' meeting and the board of directors in accordance with relevant regulations such as the Company Law and the Securities Law; at the same time, it has established and improved a modern enterprise system in accordance with the governance standards of listed companies, formulated and implemented the "Articles of Association", "Rules of Procedure for Shareholders' Meetings", "Rules of Procedure for Board Meetings", "Working Rules of the General Manager" and other relevant rules and regulations, established an independent director system and formulated "Working Rules for Independent Directors", established an audit committee, a compensation and assessment committee, a nomination committee, a strategy committee and formulated relevant working rules. During the reporting period, the company's shareholders' meeting and board of directors operated in a standardized manner in accordance with system requirements. Each shareholder, director and senior management personnel performed their duties diligently, effectively exercised their rights and performed their obligations, forming a corporate governance mechanism with clear responsibilities, mutual checks and balances, and standardized and effective corporate governance.

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China Electronics Cosi Technology Co., Ltd. Prospectus

3. The necessity of the company’s financing and the plan for the use of raised funds

In order to serve the national strategic needs, enhance the resilience of the industrial chain, comply with the trend of market growth and structural upgrading, and improve industrial chain coordination and supply chain security, the company's funds raised this time are mainly invested in "high-end electronic measuring instrument production line transformation and expansion projects", "new generation mobile communication testing R&D and industrialization construction projects", "technological innovation center construction projects" and to supplement working capital. The company's investment projects with proceeds from this issuance are closely related to its main business. The successful implementation of the investment projects with proceeds will effectively enhance the company's technology research and development strength, intelligent manufacturing level and management and operation efficiency, and continue to create value for customers.

4. The company’s sustainable operating capabilities and future development plans

The company's technology and products have strong market competitiveness, its operations and management are standardized and efficient, and its financial status and profitability were good during the reporting period. The company's electronic measuring instrument industry has a huge market space. It has a first-class talent team and an excellent corporate culture. Its future business scale and profitability are sustainable.

The company will always be customer-oriented, continue to increase investment in research and development, promote iterative upgrades of technology, create a more competitive product system, provide better and more efficient services, and create value for customers. Through continuous product innovation and market development, the company will achieve new breakthroughs in industry competition and reward investors with excellent performance.

Chairman:

Zou Pengwen

year month day

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China Electronics Cosi Technology Co., Ltd. Prospectus

Statement

Any decisions or opinions made by the China Securities Regulatory Commission and the exchange on this issuance do not indicate that they guarantee the authenticity, accuracy, and completeness of the issuer's registration application documents and disclosed information, nor do they indicate that they have made a substantial judgment or guarantee on the issuer's profitability, investment value, or investors' income. Any statement to the contrary is false or untrue.

According to the Securities Law, after the stock is issued in accordance with the law, the issuer shall be solely responsible for changes in the issuer's operations and income; investors shall independently judge the issuer's investment value, make investment decisions independently, and bear the investment risks caused by changes in the issuer's operation and income or stock price changes after the stock is issued in accordance with the law.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Overview of this issuance

Type of shares issued: RMB ordinary shares (A shares)

102,069,432 shares were issued this time, accounting for 11.00% of the issuer’s total share capital after this issuance. All this issuance is a public issuance of new shares. The original shareholders of the issuer will

There will be no public offering of shares.

Par value per share RMB 1.00

Issuance price per share RMB 16.00

Release date August 28, 2026

The stock exchange to be listed on

Shenzhen Stock Exchange GEM

and plate

Total share capital after issuance: 927,903,932 shares

Sponsor (lead underwriter) Cathay Haitong Securities Co., Ltd. Prospectus signing date September 3, 2026

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China Electronics Cosi Technology Co., Ltd. Prospectus

Section 1 Definition

In this prospectus, unless otherwise stated, the following terms have the following meanings:

1. Basic terminology

Company, our company, issuer,

Refers to China Electronics COSI Technology Co., Ltd.

Siyi Technology, Dianke Siyi

China Electronics Instruments Co., Ltd. is a subsidiary of China Electronics Instruments Technology Co., Ltd. China Electronics Instruments Co., Ltd.

Legal entity before restructuring

China Electronics Cosi Instrument Technology (Anhui) Co., Ltd. is a subsidiary of China Electronics Cosi Instrument Technology Co., Ltd. Siyi Technology (Anhui), Anhui

Refers to the wholly-owned subsidiary of the company, formerly known as "China Electronics Instruments (Anhui) Yousi Instrument, Anhui Instrument

Ltd."

Deepsight Messtech GmbH, a subsidiary of China Electronics Co., Ltd. (Germany)

Wholly owned subsidiary of the company

Institute 41 refers to the 41st Research Institute of China Electronics Technology Group Corporation. Institute 40 refers to the 40th Research Institute of China Electronics Technology Group Corporation.

Twenty-nine refers to the 29th Research Institute of China Electronics Technology Group Corporation. Institute 54 refers to the 54th Research Institute of China Electronics Technology Group Corporation. China Electronics Technology, China Electronics Technology Group refers to China Electronics Technology Group Co., Ltd.

Qingdao Xingyi refers to Qingdao Xingyi Electronic Equipment Co., Ltd.

Qingdao Yiai refers to Qingdao Yiai Technology Co., Ltd.

Measurement and testing company refers to China Electronics Measurement Testing and Certification (Beijing) Co., Ltd. Yiai Fire Protection refers to Bengbu Yiai Fire Protection Electronics Co., Ltd.

Zhuyuan Electronics refers to Shenzhen Zhuyuan Electronics Co., Ltd.

Yiai Electronics refers to Bengbu Yiai Electronic Technology Co., Ltd.

Guoyuan Fund refers to Hefei CETC Guoyuan Industrial Investment Fund Partnership (Limited Partnership) CETC Fund refers to CETC Electronic Information Industry Investment Fund (Tianjin) Partnership (Limited Partnership) CETC Investment refers to CETC Investment Holdings Co., Ltd.

Siyi Development refers to Bengbu Siyi Development Enterprise Management Center (Limited Partnership) Siyi No. 1 refers to Bengbu Siyi No. 1 Enterprise Management Co., Ltd.

Siyi Co-creation refers to Bengbu Siyi Co-creation Enterprise Management Center (Limited Partnership) Siyi Co-win refers to Bengbu Siyi Co-win Enterprise Management Center (Limited Partnership) Siyi Sharing refers to Bengbu Siyi Shared Enterprise Management Center (Limited Partnership) Siyi Gongxing refers to Bengbu Siyi Gongxing Enterprise Management Center (Limited Partnership) Siyi Co-construction refers to Bengbu Siyi Gongsheng Enterprise Management Center (Limited Partnership) Siyi Gongsheng refers to Bengbu Siyi Gongsheng Enterprise Management Center (Limited Partnership)

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China Electronics Cosi Technology Co., Ltd. Prospectus

Siyi Gongli refers to Bengbu Siyi Gongli Enterprise Management Center (Limited Partnership) Siyi Gongfu refers to Bengbu Siyi Gongfu Enterprise Management Center (Limited Partnership) Siyi Gongyi refers to Bengbu Siyi Gongyi Enterprise Management Center (Limited Partnership) Siyi Gongyue refers to Bengbu Siyi Gongyue Enterprise Management Center (Limited Partnership) Siyi Gonghui refers to Bengbu Siyi Gonghui Enterprise Management Center (Limited Partnership) Siyi Gongzhu refers to Bengbu Siyi Gongzhu Enterprise Management Center (Limited Partnership) Siyi Innovation refers to Bengbu Siyi Innovation Enterprise Management Center (Limited Partnership) China Electronics Finance refers to China Electronics Technology Finance Co., Ltd.

Huawei Technologies refers to Huawei Technologies Co., Ltd.

Yuanzhi Xinghuo refers to Shenzhen Yuanzhi Xinghuo Private Equity Investment Fund Partnership (Limited Partnership) Hongtu Shanli refers to Shenzhen Hongtu Shanli Private Equity Investment Fund Partnership (Limited Partnership)

Aviation Industry Integrated Development (Qingdao) Equity Investment Fund Partnership (Co., Ltd. Aviation Industry Investment) refers to

Guy)

Smart Innovation refers to Beijing Smart Innovation Information Technology Industry Investment Fund Partnership (Limited Partnership) Honghua Qianyuan No. 3 refers to Qingdao Honghua Qianyuan No. 3 Private Equity Investment Fund Partnership (Limited Partnership) Honghua Qiyuan refers to Qingdao Honghua Qiyuan Investment Partnership (Limited Partnership) Keysight Technologies refers to Keysight Technologies, Inc.

Rohde & Schwarz refers to Rohde & Schwarz, Inc.

Anritsu refers to Anritsu Corporation

National Instruments

Tektronix Inc.

EXFO refers to EXFO Inc.

MVG stands for Microwave Vision Group

AGI stands for Analytical Graphics, Inc.

Kunhengshunwei refers to Chengdu Kunhengshunwei Technology Co., Ltd.

Dingyang Technology refers to Shenzhen Dingyang Technology Co., Ltd.

Puyuan Jingdian refers to Puyuan Jingdian Technology Co., Ltd.

Holevo refers to Shanghai Holevo Electronic System Technology Co., Ltd. Guorui Antaixin refers to Nanjing Guorui Antaixin Technology Co., Ltd.

Tianao Measurement and Control refers to Chengdu Tianao Measurement and Control Technology Co., Ltd.

The company applied for the domestic initial public offering of 102,069,432 shares in RMB. This issuance refers to

Behavior of Ordinary Shares (A Shares)

The company applied for the domestic initial public offering of 102,069,432 shares in RMB for this issuance and listing.

Prospectus/this prospectus for common shares (A shares) and listing on GEM. China Electronics Co., Ltd.'s initial public offering of shares and entrepreneurship

refer to

Book board listing prospectus

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China Electronics Cosi Technology Co., Ltd. Prospectus

Wind Information, Wind refers to Wind Information Technology Co., Ltd.

Issuance in China, listed on domestic stock exchanges and subscribed in RMB and A-share index

Common stock traded

Sponsor, sponsor institution, main sponsor

Refers to Cathay Haitong Securities Co., Ltd.

Distributor, Cathay Haitong

Issuer lawyer, reporting lawyer,

Refers to Shanghai AllBright Law Firm

AllBright Law Firm

Issuer Accountant, Reporting Accountant

Refers to Rongcheng Accounting Firm (Special General Partnership)

Master, Rong Cheng Accountant

Reporting period, the last three years refer to 2023, 2024 and 2025

The end of each reporting period refers to the end of 2023, the end of 2024 and the end of 2025

Shareholders’ meeting refers to the shareholders’ meeting of China Electronics Co., Ltd.

Board of Directors refers to the Board of Directors of China Electronics Co., Ltd.

The Supervisory Board of China Electronics Cosi Instruments Technology Co., Ltd. has based on the instructions of the Supervisory Board in May 2025

The resolution of the 2024 Annual General Meeting of Shareholders is cancelled.

The three meetings refer to the shareholders’ meeting, the board of directors and the board of supervisors (cancelled)

"Articles of Association" refers to "Articles of Association of China Electronics Co., Ltd. Co., Ltd." "Articles of Association (Draft)" refers to "Articles of Association (Draft) of China Electronics Co., Ltd." Securities Regulatory Commission refers to China Securities Regulatory Commission

Shenzhen Stock Exchange refers to Shenzhen Stock Exchange

"GEM Listing Rules" refers to "Shenzhen Stock Exchange GEM Stock Listing Rules" Ministry of Finance refers to the Ministry of Finance of the People's Republic of China

Ministry of Industry and Information Technology refers to the Ministry of Industry and Information Technology of the People's Republic of China

National Development and Reform Commission refers to the National Development and Reform Commission of the People's Republic of China and the State-owned Assets Supervision and Administration Commission of the State Council refers to the State-owned Assets Supervision and Administration Commission of the State Council.

"Company Law" means "Company Law of the People's Republic of China"

“Securities Law” refers to the “Securities Law of the People’s Republic of China”

Unless otherwise specified, refer to RMB, RMB 10,000, RMB 100 million, RMB 10,000, RMB 100 million.

Yuan

2. Professional terminology

my country's manned space project, one of the major strategic projects of China's space science experiments, manned space refers to

Planning began in the early 1990s

Lunar exploration is a landmark project in China's aerospace field. It uses spacecraft to explore the moon.

various detections

Beidou Navigation is a major strategic project in my country. The goal is to establish a self-developed and independently operated global satellite navigation system to provide users with high-precision, highly reliable positioning, navigation, and timing services, as well as unique short message communication capabilities. The Meridian Project is led by the Chinese Academy of Sciences and is a major national scientific and technological infrastructure constructed by the Ministry of Education, the Ministry of Information Industry and other departments. The project was established in June 1997. It is a foundation system for my country's chain network to monitor the earth's space environment.

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China Electronics Cosi Technology Co., Ltd. Prospectus

The frequency range of the output signal. The higher the maximum output frequency, the supported signal band output frequency refers to

The wider the width, the better the system performance in high frequency applications

The spectral purity of a signal can affect the performance of the modulated signal. The smaller the phase noise, the phase noise refers to

The better the output signal performance

Modulation bandwidth refers to the ability to generate modulated signals. The larger the modulation bandwidth, the higher the signal transmission rate.

Frequency range refers to the range from the lowest frequency to the highest frequency that a measuring instrument can measure

Analysis bandwidth refers to the ability to analyze signals. The larger the analysis bandwidth, the higher the signal analysis efficiency.

The minimum interval between the wavelengths of two peak optical signals that the test instrument can resolve, the smaller the spectral resolution bandwidth, the smaller the wavelength.

Table spectrum analysis is more detailed

The number of channels represents the number of channels that can be tested and analyzed at the same time. The greater the number of channels, the

The higher the testing efficiency

Indicates the number of waveform samples collected per second. The higher the sampling rate, the digital sampling rate processed refers to

The closer the signal is to a real analog signal, the insufficient sampling rate may cause distortion.

Field testing is mainly used to evaluate the performance of mobile phones. It simulates user behavior by testing mobile phones to dial voice or data services, and at the same time, the receiver is tested in the field.

As an independent test equipment, conduct signal strength and internal and external interference tests in wireless environments.

Distortion refers to the deviation of a signal from the original signal or standard during transmission.

Spurious refers to the interference of new frequency signals generated by the receiver demodulation process to other systems.

A globally coordinated network of specific devices used to upload data centers to the internet network infrastructure.

Deliver, accelerate, display, calculate, and store data information

Electromagnetic Magnetic Compatibility, or electromagnetic compatibility, refers to EMC. It refers to the ability of a device or system to work normally in its electromagnetic environment without causing intolerable electromagnetic interference to anything in the environment.

Integrated Circuit, that is, integrated circuit, uses a certain process to interconnect the transistors, resistors, capacitors, inductors and other components and wiring required in a circuit. IC refers to

Together, they are made on a small or several small semiconductor wafers or dielectric substrates, and then packaged in a tube to become a microstructure with the required circuit functions. Integrated Product Development (Integrated Product Development) is a set of product IPD indicators.

Development models, concepts and methods

Lead To Cash is a set of end-to-end business processes and management LTC guidelines

System

Develop Strategy to Execution is a set of DSTE guidelines for ensuring strategic

An integrated process and management system from planning to implementation of closed-loop management

Integrated Supply Chain is a set of ISC guidelines for the supply chain.

Collaborative and optimized management models and methods

Hertz, megahertz, gigahertz, terahertz, frequency unit, 1THz=1,000GHz, Hz, MHz, GHz, THz refers to

1GHz=1,000MHz, 1MHz=1,000,000Hz

Sa/s is the abbreviation of sample/second, which is the number of samples per second. It is also called sampling Sa/s and GSa/s.

rate. 1GSa/s=1,000,000,000Sa/s

dBm refers to the output power unit

Phase noise, usually defined as the dBc/Hz value at a given offset frequency, dBc/Hz refers to

Among them, dBc is the ratio of the power at the frequency to the total power in dB. Customer Relationship Management, that is, "customer relationship management". The CRM platform is a management platform for enterprises to select and manage valuable customers and their relationships.

Taiwan requires a customer-centric business philosophy and corporate culture to support effective marketing, sales and service processes

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China Electronics Cosi Technology Co., Ltd. Prospectus

MMIC chip refers to microwave and millimeter wave monolithic integrated circuits

5G and 6G refer to fifth generation mobile communication technology and sixth generation mobile communication technology.

5G NR refers to the global 5G standard based on a new air interface design based on orthogonal frequency division multiplexing technology.

Long-term evolution 4G mobile communication technology based on time division duplex; TD-LTE and LTE-FDD based on frequency division duplex

The long-term evolution of 4G mobile communications technology

3G mobile communication technology with wideband code division multiple access, 3G WCDMA based on code division multiple access, CDMA2000 index

mobile communication technology

GSM refers to Global System for Mobile Communications, or 2G mobile communications technology for short.

Note: If there is any discrepancy between the total in the table and the actual sum of the values listed in this prospectus, it is due to rounding.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Section 2 Overview

This overview only serves as a brief reminder of the full prospectus. Investors should carefully read the full text of the prospectus before making investment decisions.

1. Reminders on important matters

The Company particularly reminds investors that before making investment decisions, they must carefully read the text of this prospectus and pay special attention to the following important matters:

(1) Major risk warning

The Company reminds investors to carefully read the "Section 3 Risk Factors" section of this prospectus and pay special attention to the following matters:

Risks of technological innovation and product upgrades

The company belongs to a technology-intensive industry, with rapid technological development and rapid iteration. The independent intellectual property rights of the company's existing and under-development products and technologies are an important reflection of the company's core competitiveness. If the company does not invest enough in R&D or accurately grasps market development trends in the future, resulting in slow technological innovation and product upgrades being blocked, and thus being unable to meet customer needs, it may have an adverse impact on the company's business development.

The risk of large amounts of related-party transactions

During the reporting period, the amount and proportion of related-party transactions related to the issuer's daily business were relatively high. During the reporting period, the company's transaction scale of selling goods and providing services to related parties was 509.648 million yuan, 688.0633 million yuan, and 725.0519 million yuan respectively, accounting for 23.67%, 33.53%, and 30.23% of the current operating income respectively; the company's related party transaction scale of purchasing goods and receiving services from related parties was 140.850 million yuan, 137.7757 million yuan and 186.2303 million yuan, accounting for 10.91%, 13.27% and 14.78% of the current operating costs respectively.

During the reporting period, the average unit price of some product series sold by the issuer to related parties was slightly higher than that of non-related parties, mainly due to different sales channels and differences in order configuration. After excluding the aforementioned differences, there is no significant overall difference in unit sales price of products from related parties and non-related parties under the same configuration and similar channels. If the subsequent internal control measures of the company cannot be effectively implemented, there will be the potential risk that related parties will use related transactions to transfer interests and harm the interests of the company and small and medium-sized shareholders.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Risks from raw material price fluctuations and supply chain stability

In each reporting period, the company's direct material costs accounted for 71.59%, 77.84% and 77.78% of the main business costs respectively. The main raw materials include modules for system integration, integrated circuits and components. Affected by the complex and ever-changing global trade policies and geopolitical environment, the company faces the following potential risks in the future: First, the potential transmission risk of geopolitical conflicts to the upstream supply chain may lead to an extension of the supply cycle of some raw materials or an increase in procurement costs in the future; according to statistics from the General Administration of Customs, the import price index of integrated circuits and microelectronic components has mainly fluctuated between 90% and 120% since 2023, which in turn has a negative impact on the company's cost control and delivery efficiency. Second, there is uncertainty in the supply of integrated circuits caused by changes in international trade policies. Currently, the company still purchases some of its integrated circuits from overseas manufacturers. If there are further adverse changes in relevant trade policies in the future, it may make it more difficult to obtain overseas high-end chips or limit technical support, bringing uncertainty to the company's production and operations.

Risks of market competition

After years of development, leading foreign companies in the electronic measuring instrument industry have formed relatively solid technological, user and brand advantages. However, domestic enterprises started late and have a short time of technology accumulation. There is still a large gap between them and leading foreign enterprises in terms of brand awareness, product richness, overall solution capabilities and business scale. At present, the issuer's business scale, brand recognition and technical reserves still have much room for improvement compared with leading foreign companies, and it faces greater market competition pressure.

Risks of high customer concentration

In each period of the reporting period, the company's sales revenue to the top five customers accounted for 43.83%, 41.63% and 45.99% of the current main business revenue respectively, indicating a relatively high degree of customer concentration. If some major customers reduce their purchasing volume due to their own operating reasons, it may have a direct adverse impact on the company's sales revenue and operating performance. In addition, if the company's product technology iteration speed cannot continue to meet customer needs, or even major changes occur in the cooperative relationship with major customers, it may also have an adverse impact on the company's production and operations.

Risks of high inventory amounts

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China Electronics Cosi Technology Co., Ltd. Prospectus

The book balances of inventories were 154.799 million yuan, 211.1326 million yuan and 211.758 million yuan respectively, accounting for 11.90%, 17.11% and 17.21% of the current inventory book balance respectively. The company has made corresponding provision for depreciation of long-term inventory based on the actual situation of relevant inventory, market environment and other factors. However, if the market environment undergoes major adverse changes in the future, the company will also face the risk of further decline in the net realizable value of relevant inventory.

Risk of collection of receivables

At the end of each reporting period, the book values of the company's accounts receivable were 476.5911 million yuan, 727.1874 million yuan, and 689.0387 million yuan respectively, accounting for 22.14%, 35.44%, and 28.73% of operating income respectively, of which the book balance of overdue accounts receivable was 31,148.74 yuan respectively. million, 395.7697 million yuan and 437.8697 million yuan, accounting for 60.73%, 50.71% and 58.49% of the balance of accounts receivable respectively. If there are major adverse changes in the customer's operating conditions, there is a risk that accounts receivable cannot be collected, which may have an adverse impact on the company's future operating results.

Risk of fluctuations in government subsidies

The electronic measuring instrument industry in which the issuer operates is a basic and strategic industry in the country. The issuer has undertaken national, provincial and ministerial level scientific research projects and obtained relevant scientific research funds. In each period of the reporting period, the government subsidies included in other income by the company were 41.9862 million yuan, 26.4612 million yuan, and 136.9965 million yuan, accounting for 23.03%, 9.89%, and 30.56% of the total profit for the period respectively. The government subsidies enjoyed by the company have a greater impact on operating performance. If there are adverse changes in government subsidy policies in the future, or the company no longer meets the conditions for government subsidies, resulting in the company being unable to enjoy relevant government subsidies, it will result in a reduction in the company's net profit and have an adverse impact on the company's future operating performance.

Risk of core technology leakage

The company has a number of patents and technologies covering multiple series of electronic measuring instrument products, which are an important part of the company's core competitiveness. As the company's business scale continues to expand, the complexity of personnel and technology management will also increase. Once the company's core technology is leaked, it may have an adverse impact on the company's business development.

(2) Important commitments made by relevant entities in this issuance

The Company reminds investors to carefully read the commitments related to this issuance made by the company, shareholders, actual controllers, directors, senior managers, sponsors and securities service agencies of this issuance. For details, please refer to "IV. Commitments related to investor protection" in "Section 12 Attachment" of this prospectus.

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China Electronics Cosi Technology Co., Ltd. Prospectus

(3) Distribution arrangements for accumulated profits before issuance and dividend distribution policy after listing

The company's second extraordinary shareholders meeting in 2025 reviewed and approved the "Proposal on the Company's Initial Public Offering of RMB Ordinary Shares (A Shares) and the Rollover of Profits Before Listing on the GEM to be Shared by New and Old Shareholders". The company's rolled over undistributed profits before the company's initial public offering of shares and listing will be shared by the new and old shareholders in proportion to their shareholdings after the company's public issuance of shares. The company reminds investors to carefully read the company's profit distribution policy, cash dividend ratio, profit distribution plan within three years after listing and long-term return plan after listing. For details, please refer to "II. Issuer's Dividend Distribution Policy" in "Section 9 Investor Protection" of this prospectus.

2. Basic information on the issuer and intermediaries for this issuance

(1) Basic information of the issuer

Date of establishment of the company: May 8, 2015 Name of the issuer China Electronics Co., Ltd.

Date of establishment of the joint-stock company December 31, 2020 Registered capital 825.8345 million yuan Legal representative Zou Pengwen

Residence, Huangdao District, Qingdao City, Shandong Province No. 98, Xiangjiang Road, Huangdao District, Qingdao City, Shandong Province Main production and business address

No. 98 Xiangjiang Road

China Electronics Technology Group has the controlling shareholder China Electronics Technology Group Co., Ltd. and the actual controller

Ltd.

on other trading venues

Industry Classification C40 Instrument Manufacturing (Application) Listing or Listing None

city situation

(2) Relevant intermediaries for this issuance

Cathay Haitong Securities Co., Ltd. has a sponsor, Cathay Haitong Securities Co., Ltd., and is the lead underwriter.

Ltd.

Distributor: Lawyer for the issuer of CITIC Securities, Shanghai AllBright Law Firm, other underwriting institutions

Co., Ltd.

Beijing Guoyou Dazheng Asset Appraisal and Auditing Agency Rongcheng Accounting Firm (Special General Partnership) Appraisal Agency

Appraisal Co., Ltd.

The issuer’s sponsors, underwriting agencies and securities related to this issuance

Service organizations and their responsible persons, senior managers, and handling personnel None

direct or indirect equity relationships or other interest relationships between

(3) Other relevant institutions for this issuance

China Securities Depository and Clearing Co., Ltd. China Construction Bank Shanghai Stock Registration Agency Recipient Bank

Ren Company Shenzhen Branch Branch Sales Department

Sponsor (lead underwriter) lawyer: Guoco Lawyers (Shanghai)

office

Other institutions related to this issuance

Capital verification agency: Rongcheng Accounting Firm (Special General Partnership)

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China Electronics Cosi Technology Co., Ltd. Prospectus

3. Overview of this issuance

(1) Basic information of this issuance

Stock type: RMB ordinary shares (A shares)

Par value per share RMB 1.00

% of total post-issuance

Number of shares issued: 102,069,432 shares 11.00%

Equity ratio

% of total post-issuance

Including: Number of new shares issued 102,069,432 shares 11.00%

Equity ratio

Public offering of shares by shareholders accounted for total post-issuance

Not applicable Not applicable

Quantity Share capital ratio

Total share capital after issuance: 927,903,932 shares

Issuance price per share 16.00 yuan/share

44.81 times (the issue price is divided by earnings per share, and earnings per share are calculated based on the audited net profit attributable to the owners of the parent company after deducting the non-issuance price-to-earnings ratio, whichever is lower before and after recurring profits and losses in 2025, divided by the total share capital after this issuance)

0.40 yuan (based on 2025

The audited deduction is RMB 3.12 (according to December 2025

Recurring profit and loss attributable to the parent company according to the Nikkei audit before and after 31 days

Net assets per share before issuance, earnings per share before issuance, lower net assets attributable to shareholders of the parent company divided by this issuance

Shareholders’ net profit is calculated by dividing the previous total share capital)

Calculation of total share capital before this issuance)

0.36 yuan (based on 4.44 yuan in 2025 (calculated based on the December 2025 audited net assets per share after deducting the non-31st audited recurring profits and losses attributable to the parent company before and after the issuance).

This calculation)

Issuance price-to-book ratio 3.60 times (calculated by dividing the issuance price per share by the post-issuance net assets per share)

Adopt the methods of targeted placement to investors participating in strategic placement, offline placement and issuance to inquiry targets, and online issuance.

A combination of pricing and issuance to qualified public investors

Qualified investors participating in the strategic placement, qualified inquiry objects, and natural persons, legal persons, and securities investment fund issuance objects who have opened securities accounts at the Shenzhen Stock Exchange and opened GEM trading authority

and other investors in compliance with Chinese laws, except for participants prohibited by laws, regulations, normative documents, Shenzhen Stock Exchange business rules, etc.

Underwriting method Balance underwriting

Total funds raised 1,633.1109 million yuan

Net amount of funds raised 1,544,115,500 yuan

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China Electronics Cosi Technology Co., Ltd. Prospectus

High-end electronic measuring instrument production line renovation and expansion project

New generation mobile communication testing R&D and industrialization construction project

Raising funds for investment projects

Technology Innovation Center Construction Project

Replenish working capital

The issuance fee details are as follows:

Sponsorship and underwriting fees:

(1) Sponsorship fee: 1.8868 million yuan;

(2) Underwriting expenses: RMB 66.2488 million;

The sponsorship and underwriting fees are collected in stages, with reference to the average market sponsorship and underwriting rates and the total amount of funds the company intends to raise, and are determined by bidding and paid at points according to the progress of the project;

Audit and capital verification fees: 10.3774 million yuan;

Audit and capital verification fees refer to the average market accountant rate, take into account service requirements, workload and other factors, and are determined by bidding and paid in stages according to the project progress; issuance fee estimate 3. Lawyer fees: 4.5283 million yuan;

Lawyer fees refer to the average market lawyer fee rate, taking into account service requirements, workload and other factors, and are determined through bidding and paid in stages according to the project progress;

Information disclosure fee for this issuance: 4.7906 million yuan;
Issuance fees and other expenses: 1.1635 million yuan.

Note:

The above issuance fees do not include value-added tax;
The issuance handling fee and other fees include the stamp tax for this issuance;
Compared with the issuance fees of the prospectus, the issuance fees and other expenses in the issuance fees disclosed this time have changed, mainly due to the issuer reducing the printing fee of 47,200 yuan originally reserved. Senior management, employees

Intended participation in strategic placement None

condition (if any)

The issuance price does not exceed the median and weighted average of the bids from offline investors after excluding the highest bid.

Figures and the situation of public funds, social security funds, pension funds, annuity funds, and insurance funds planning to participate in the strategic placement after excluding the highest bid price

The lower of the median and the weighted average of the capital and qualified foreign investor fund quotations, so the sponsor’s relevant conditions

The subsidiary Cathay Haitong Zhengyu Investment Co., Ltd. does not need to participate in the strategic placement of this issuance. Proposed public offering of shares

Name of owner, number of shares held and

Number of shares proposed for public offering Not applicable

Volume and allocation of issuance costs

Principles (if any)

(2) Important dates for this issuance and listing

Publish preliminary inquiry announcement

August 20, 2026

Date

Preliminary inquiry date August 25, 2026

Date of publication of issuance announcement: August 27, 2026

Subscription date August 28, 2026

Payment date September 1, 2026

Stock Listing Date: We will apply for listing on the Shenzhen Stock Exchange as soon as possible after the completion of this stock issuance.

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China Electronics Cosi Technology Co., Ltd. Prospectus

(2) The situation of this strategic placement

The overall arrangement of this strategic placement

(1) The strategic placement of this issuance consists of other investors participating in the strategic placement. The price of this issuance does not exceed the lower of the median and weighted average of offline investor quotations after excluding the highest quotation, and the median and weighted average of quotations from public funds, social security funds, pensions, annuity funds, insurance funds and qualified foreign investor funds after excluding the highest quotation. Therefore, Cathay Haitong Zhengyu Investment Co., Ltd., a subsidiary of the sponsor, does not need to participate in the strategic placement of this issuance.

(2) The initial strategic placement of this issuance is 40,827,772 shares, accounting for 40.00% of the issuance. According to the final issuance price, the final strategic allotment quantity of this issuance is 40,827,772 shares, accounting for 40.00% of the number of this issuance. The initial number of strategic allotment shares in this issuance is consistent with the final number of strategic allotment shares. There is no need to dial back the strategic allotment in this issuance to offline issuance.

Investors confirmed to participate in this strategic placement have signed a strategic placement agreement with the issuer. Investors participating in this strategic placement will subscribe for the number of issuer shares they have committed to subscribe for at the final issuance price and will not participate in this online or offline issuance.

The final strategic placement results of this issuance are as follows:

Investments participating in strategic allotment Restricted period serial number Type Number of allotted shares (shares) Allotment amount (yuan)

Author name (month)

China Star Network application has

1 3,093,013 49,488,208.00 12 Co., Ltd.

China Mobile Investment Holdings Co., Ltd.

2 3,093,013 49,488,208.00 12 companies

Aerospace Investment Holdings Co., Ltd.

3 3,093,013 49,488,208.00 12 Division

Zhongbing Investment Management Co., Ltd.

4 1,546,507 24,744,112.00 12 companies

Do business with the issuer

Southern Industrial Asset Management has

business has strategy

5 1,546,507 24,744,112.00 12 Limited liability company

The cooperative relationship may be long-term

Qingdao Chengjin’s emerging industry investment and cooperation vision

6 Capital fund partnerships (including large enterprises or other 3,093,013 49,488,208.00 12

Limited partnership) Subsidiary enterprises

7 Guoxin Investment Co., Ltd. 12,372,052 197,952,832.00 12

China Electronics Technology Investment Holdings Co., Ltd.

8 5,567,423 89,078,768.00 36 Company

China Chengtong Holding Group has

9 3,093,013 49,488,208.00 12 Co., Ltd.

State-owned assets in Haidian District, Beijing

10 3,093,013 49,488,208.00 12 Industrial Investment Group Co., Ltd.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Investments participating in strategic allotment Restricted period serial number Type Number of allotted shares (shares) Allotment amount (yuan)

Name of the investor (month) China National Nuclear Corporation Capital

11 1,237,205 19,795,280.00 12 Holdings Co., Ltd.

Other investors participating in strategic placement

In this issuance, the selection of other investors participating in the strategic placement is comprehensively determined after considering investor qualifications and market conditions. The issuer plans to introduce "large enterprises or their subsidiaries that have a strategic cooperative relationship or long-term cooperation vision with the issuer's business operations", as listed below:

Serial number Subscription subject Type of strategic investment

1 China StarNet Network Application Co., Ltd.

2 China Mobile Investment Holdings Co., Ltd.

3 Aerospace Investment Holdings Co., Ltd.

4 Zhongbing Investment Management Co., Ltd.

5 Southern Industrial Asset Management Co., Ltd. has a strategic cooperative relationship or long-term business relationship with the issuer 6 Qingdao Chengjin Emerging Industry Investment Fund Partnership (Limited Partnership)

Large enterprises with a vision of cooperation or 7 Guoxin Investment Co., Ltd. or its subsidiaries

8 CETC Investment Holdings Co., Ltd.

9 China Chengtong Holding Group Co., Ltd.

10 Beijing Haidian District State-owned Assets Investment Group Co., Ltd.

11 China National Nuclear Corporation Capital Holdings Co., Ltd.

Sales restriction period

Dianke Investment, which participated in this strategic placement, has a restricted selling period of 36 months for its allocated shares. months; China StarNet Network Application Co., Ltd., China Mobile Investment Holdings Co., Ltd., Aerospace Investment Holdings Co., Ltd., Zhongbing Investment Management Co., Ltd., Southern Industrial Asset Management Co., Ltd., Qingdao Chengjin Emerging Industry Investment Fund Partnership (Limited Partnership), Guoxin Investment Co., Ltd., China Chengtong Holding Group Co., Ltd., Beijing Haidian District State-owned Assets Investment Group Co., Ltd., and China National Nuclear Corporation Capital Holdings Co., Ltd., which participated in this strategic placement, have a 12-month sales restriction period for their allotted shares. The lock-up period starts from the date when the publicly issued shares are listed on the Shenzhen Stock Exchange. After the expiration of the sales restriction period, investors participating in the strategic placement shall apply the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange on share reductions to the reduction of the allocated shares.

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China Electronics Cosi Technology Co., Ltd. Prospectus

4. Overview of main business

(1) Main business and products

Main business situation

Diankesiyi always regards innovation as the core driving force of development. Through continuous R&D investment and technical team building, it has created a R&D platform with continuous innovation capabilities and achieved continuous independent innovation of technology and products. As of December 31, 2025, the issuer and its subsidiaries had obtained a total of 584 authorized patents, including 541 invention patents. It is the electronic measuring instrument company with the largest number of authorized invention patents in China. The company actively participates in the formulation of many international, national and industry standards in the field of electronic measurement, continuously improving the industry's voice and competitiveness. As of December 31, 2025, the company has presided over the preparation of 1 international standard, 3 national standards, and 3 group standards, and participated in the preparation of 12 national standards and 1 group standard. The company is also the chairman unit of the China Electronic Instrument Industry Association, a national industrial design center, and a high-end electronic measuring instrument discipline and technology center.

Diankesi has undertaken more than 300 major national, provincial and ministerial-level projects, including more than 20 "Ministry of Science and Technology's Basic Scientific Research Conditions and Major Scientific Instruments and Equipment Development Key Projects". Relevant results are widely used in communications, industrial electronics, aerospace and other fields, and have provided key testing support for major national projects such as "Manned Spaceflight", "Lunar Exploration Project", "Beidou Navigation" and "Meridian Project", which has effectively promoted the rapid development of my country's electronic information industry. At the same time, the company has won a number of national and provincial and ministerial-level honors, among which national-level awards include "First Prize and Second Prize of the National Science and Technology Progress Award", "National Manufacturing Single Champion Enterprise", "China Patent Award Excellence Award" and "State-owned Enterprise Corporate Governance Demonstration Enterprise of the State-owned Assets Supervision and Administration Commission of the State Council", etc.; provincial and ministerial-level award winners

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China Electronics Cosi Technology Co., Ltd. Prospectus

There must be "Special Prize and First Prize of Shandong Province Science and Technology Progress Award" and "First Prize of Shandong Province Technological Invention Award". As of December 31, 2025, the company has 1 national-level leading talent, 1 100-million-level talent, 2 Chinese outstanding engineers, 12 experts with special allowances from the State Council, 2 chief scientists and 3 chief experts of China Electronics Group, and more than 30 provincial and ministerial-level talents.

Main products and their uses

The company's main products include complete machines, test systems and complete components, etc. Their classification and corresponding uses are as follows: Products

Main products and uses

Category

Microwave/millimeter wave measurement realizes functions such as generation, measurement and analysis of electromagnetic signals, and is widely used in industrial electronics, measuring instruments, communications, aerospace, university science and education and other fields.

It realizes the functions of optical signal generation, measurement, analysis, optical fiber connection and protection, etc., and is widely used in photoelectric measuring instruments.

Used in communications, industrial electronics, university science and education, aerospace and other fields

The whole machine

Realizes functions such as generation, measurement and analysis of communication-related signals, and is widely used in communication and communication test instruments

Industrial electronics, aerospace, university science and education and other fields

Achieve functions such as observing, analyzing and recording changes in various electrical signals, and are widely used in industrial basic measuring instruments

Electronics, communications, aerospace, university science and education and other fields

Realize parameter measurement and analysis related to radio frequency and microwave components and components, and provide them with microwave components and sets

Automatic test solutions are widely used in industrial electronics, aerospace, communications, and university testing of integrated circuit systems.

Science and education and other fields

system

Microwave/millimeter wave antenna realizes the measurement of various electromagnetic characteristics such as radiation, reception and response of electronic information equipment. The wide-line test system is widely used in industrial electronics, communications, aerospace, university science and education and other fields.

Realizes the functions of excitation amplification, oscillation, current control, etc. of electrical signals, and provides a perfect solution for the complete machine and test system.

active device

part of the whole system

It realizes the functions of voltage dividing, shunting, filtering, current stabilization, connection, etc. It is a passive component of the complete machine and test system.

into parts

During the reporting period, the composition of the company’s main business income is as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Percentage Amount Percentage Amount Percentage of complete machine business 133,712.28 56.23% 123,502.64 60.51% 142,031.45 66.58% of which: products

120,667.05 50.74% 121,127.93 59.35% 107,682.39 50.48% Sales

entrusted

13,045.23 5.49% 2,374.71 1.16% 34,349.06 16.10% Research and Development

Test system industry

88,059.34 37.03% 62,758.34 30.75% 52,814.87 24.76%

Complete parts business 14,454.99 6.08% 16,673.13 8.17% 17,082.84 8.01% Other business 1,588.59 0.67% 1,164.73 0.57% 1,404.55 0.66%

Total 237,815.20 100.00% 204,098.84 100.00% 213,333.70 100.00%

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China Electronics Cosi Technology Co., Ltd. Prospectus

(2) Main raw materials and important suppliers

The raw materials required for the company's main business mainly include components, integrated circuits, modules for system integration, metal and non-metal materials, mechanical structural parts, etc. During the reporting period, the company's supply of raw materials was stable and sufficient.

For the company’s important suppliers, please refer to “IV. Issuer’s Procurement Situation and Major Suppliers” in “Section 5 Business and Technology” of this prospectus.

(3) Main production modes

The company has a complete production system and adopts a model that combines "appropriate stocking, pre-production and sales-based production", focusing on independent production with a small amount of outsourcing for non-core links. The production department is responsible for product assembly, debugging and testing. For mainstream models, the company maintains reasonable inventory through stock production and pre-production assembly and adjustment, and responds quickly to delivery needs; for products with unstable orders or customization requirements, it adopts order production and quickly organizes production and delivery after receiving the order.

For the company's specific production model, please refer to "1. The issuer's main business and main products/(4) Main business model" in "Section 5 Business and Technology" of this prospectus.

(4) Sales methods and important customers

The company adopts a sales model of "direct sales as the mainstay and distribution as the supplement": in terms of direct sales, the company directly faces end customers, providing direct product sales and entrusted research and development services, focusing on serving customers such as state-owned enterprise groups, communication manufacturers, telecom operators, universities and colleges in the electronic information industry, and developing and maintaining them through its own team; in terms of distribution, the company uses the regional and channel advantages of dealers to improve response speed, service capabilities and market coverage.

For the company's specific sales model, please refer to "1. The issuer's main business and main products/(4) Main business model" in "Section 5 Business and Technology" of this prospectus.

(5) Industry competition and the issuer’s competitive position

The company is an electronic measuring instrument R&D and manufacturing enterprise with the strongest comprehensive strength and the largest revenue in China. It is also an enterprise with the most comprehensive product categories and the widest spectrum coverage in the domestic electronic measuring instrument industry. Its main products include complete machines, test systems, complete components, etc.

The company’s market and technical strength position are detailed as follows:

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China Electronics Cosi Technology Co., Ltd. Prospectus

Project Status

Leading companies in the international electronic measuring instrument industry mainly include Keysight Technologies, Rohde & Schwarz, Anritsu, etc. Their electronic measuring instrument product categories are relatively complete and product performance is relatively outstanding.

In addition to the above-mentioned leading foreign companies participating in the competition in the domestic electronic measuring instrument market, Diankesi Instrument is the domestic electronic measuring instrument R&D and manufacturing enterprise with the strongest comprehensive strength, the largest revenue scale, the most complete product categories, and the widest spectrum coverage; other major domestic companies include Puyuan Precision Technology, Dingyang Technology, Kunheng Shunwei, etc.

market

In 2024, the global market size of electronic measuring instrument products and test and measurement systems will be 139.12 billion yuan. Is Deco status

Technology ranked first with an operating income of 35.475 billion yuan.

In 2024, the market size of China's electronic measuring instrument products and test and measurement systems will be 49.50 billion yuan. Among domestic companies, Diankesi Instrument ranked first in domestic corporate market share with revenue of 2.052 billion yuan. Among them, my country's microwave/millimeter wave measuring instrument product market size will be 7.28 billion yuan in 2024, and Diankesi's microwave/millimeter wave related complete machines rank first among domestic companies with operating income of 1.017 billion yuan.

Diankesiyi has the largest scientific research talent team in China and has top domestic R&D conditions and industrialization capabilities. At the same time, Diankesi Instruments is currently the only electronic measuring instrument company in China that can fully benchmark against leading international companies in the fields of microwave/millimeter wave, optoelectronics, communications and basic measuring instruments. The overall technical level is domestically leading, especially in the field of microwave/millimeter wave measuring instruments. It has reached the international advanced level, and has reached the international leading level in some subdivisions.

Diankesi Instruments has long been committed to the research and development of electronic test and measurement technology. As of December 31, 2025, the issuer and its subsidiaries had obtained a total of 584 authorized patents, including 541 invention patents. It is the electronic measuring instrument company with the largest number of authorized invention patents in China. As of December 31, 2025, the company has presided over the preparation of 1 international standard, 3 national standards, and 3 group standards, and participated in the preparation of 12 national standards and 1 group standard. Company technology

At the same time, it is also the chairman unit of the China Electronic Instrument Industry Association and the strength of the high-end electronic measuring instrument discipline and technology center.

Wait.

status

Diankesi has undertaken more than 300 major and key projects at the national, provincial and ministerial levels, including more than 20 "Key Special Projects for the Development of Basic Scientific Research Conditions and Major Scientific Instruments and Equipment of the Ministry of Science and Technology", and has provided key test support for major national projects such as "Manned Spaceflight", "Lunar Exploration Project", "Beidou Navigation" and "Meridian Project". At the same time, the company has won a number of national and provincial and ministerial-level honors, among which the national-level awards include the "First Prize and Second Prize of the National Science and Technology Progress Award", "National Manufacturing Individual Champion Enterprise", "China Patent Award Excellence Award", etc.; provincial and ministerial-level awards mainly include "Special Prize and First Prize of the Shandong Province Science and Technology Progress Award" and "First Prize of the Shandong Province Technology Invention Award". As of December 31, 2025, the company has 1 national-level leading talent, 1 million-level talent, 2 Chinese outstanding engineers, 12 experts with special allowances from the State Council, 2 chief scientists and 3 chief experts of China Electronics Group, and more than 30 provincial and ministerial-level talents.

Note: Keysight's operating income was originally in US dollars and converted into RMB based on historical exchange rates.

5. Positioning of issuer sector

(1) The issuer meets the relevant indicators for GEM positioning

During the reporting period, the issuer’s cumulative R&D investment amounted to RMB 1,285,872,500, exceeding RMB 50 million.

In each reporting period, the issuer’s operating income was RMB 2,152,921,900, RMB 2,051,882,800 and

2,398,371,700 yuan, and the operating income in the most recent year reached more than 300 million yuan, in compliance with the Shenzhen Securities Exchange

Article 4 (2) of the Interim Provisions on Application and Recommendation for Issuance and Listing of GEM Enterprises (Revised in 2024)

set of standards.

(2) The industry to which the issuer belongs conforms to the GEM positioning

According to the "Industry Statistical Classification and Code of Listed Companies" (JR/T0020-2024), the industry to which the company belongs

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China Electronics Cosi Technology Co., Ltd. Prospectus

It is "CI40 Instrument Manufacturing"; according to the "National Economic Industry Classification (GB/T4754-2017)", the company's industry is "C4028 Electronic Measuring Instrument Manufacturing" under "C40 Instrument Manufacturing". According to the "Classification of Strategic Emerging Industries (2018)" issued by the National Bureau of Statistics, the company's business specifically belongs to "1.2.2 Electronic Special Equipment Instrument Manufacturing" of "I New Generation Information Technology" of strategic emerging industries, and is a strategic emerging industry supported by the state.

The issuer's main business does not belong to the twelve negative list industries stipulated in Article 5 of the "Interim Regulations on the Application and Recommendation of Issuance and Listing of Enterprises on the Shenzhen Stock Exchange's Growth Enterprise Market (Revised in 2024)". It does not belong to overcapacity industries or eliminated industries in the "Industrial Structural Adjustment Guidance Catalog (2024 Edition)", nor does it belong to preschool education, subject-based training, or financial business enterprises.

In summary, the issuer meets the GEM positioning.

(3) Specific explanation of the issuer’s compliance with GEM positioning

The company can promote the development of new productive forces through innovation, creation and creativity

The company meets item (1) of the conditions stipulated in Article 3 of the "Shenzhen Stock Exchange GEM Enterprise Issuance and Listing Interim Regulations and Recommendation", that is, "a growth-oriented innovative entrepreneurial enterprise that can rely on innovation, creation, and creativity to promote enterprises to get rid of the traditional economic growth mode and productivity development path, promote high-level application of scientific and technological achievements, innovative allocation of production factors, in-depth transformation and upgrading of industries, and the development and expansion of new driving forces."

The company has strong technological R&D and innovation capabilities, and also has the ability to transform scientific research results into actual products to achieve commercial value, which is in line with the characteristics of "promoting high-level application of scientific and technological achievements" in the above regulations. At the same time, the company actively develops new productivity that is led by innovation and has the characteristics of high technology, high efficiency and high quality. Through technological breakthroughs and innovative allocation of factors, it continuously improves product technical barriers and added value, achieving a fundamental transformation from relying on scale expansion to relying on total factor productivity improvement, and gradually forming an advanced productivity quality that meets the requirements of high-quality development.

The company’s technological innovation and its characterization

(1) The company has innovative core technologies

Since its establishment, Diankesiyi has adhered to technological innovation, focused on core technology research, continuously strengthened its high-tech barrier advantages, and continued to enhance the company's core technological competitiveness in the industry. As of the date of signing of this prospectus, the company has accumulated "low-noise wide-band microwave frequency synthesis technology" and "microwave and millimeter wave" technologies.

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China Electronics Cosi Technology Co., Ltd. Prospectus

There are a total of 22 core technologies including "transmission channel signal conditioning technology" and "wide-band microwave and millimeter wave signal reception technology". Based on these core technologies, the company's overall technical level is domestically advanced and internationally advanced, and has reached international leading levels in some segments. For specific information on the company's core technology, please refer to "Section 5 Business and Technology/6. Issuer's Core Technology and R&D Situation/(1) Core Technology Situation" in this prospectus.

(2) The company has outstanding R&D and innovation capabilities

In order to promote technology iteration and high-end product upgrades, and to meet the needs of industrial development for high-precision measuring instruments, the issuer has always attached great importance to R&D innovation and maintained high-intensity R&D investment since its establishment. During the reporting period, the issuer's R&D expenses were RMB 374.5019 million, RMB 458.5683 million and RMB 452.8023 million respectively. The scale of R&D investment during the reporting period was relatively large.

①Independent research and development

In terms of independent research and development, the company has always focused on the core technology system of electronic measuring instruments, continued to promote technological breakthroughs and innovation capability building, and achieved a number of important research and development results, further consolidating its technological advantages and product competitiveness.

The company continues to promote technology iteration and performance improvement, achieving breakthroughs in many core technology indicators, and the overall product performance continues to move closer to the international leading level. For example, in terms of low-noise wide-band microwave frequency synthesis technology, the phase noise is optimized to <-132dBc/Hz; the maximum frequency of wide-band microwave and millimeter wave signal receiving technology is increased to 120GHz; the real-time analysis bandwidth of broadband signal acquisition and analysis technology is expanded to 2GHz; the spectral resolution of high-precision optical-mechanical unit assembly technology is increased to 0.01nm. These technological breakthroughs have significantly enhanced the company's position in the field of high-end measuring instruments.

At the same time, the company actively lays out cutting-edge technology directions and gradually builds a core technology group including broadband arbitrary waveform synthesis and processing technology, highly integrated multi-functional transceiver integrated testing technology, and terahertz material electromagnetic property testing technology. Among them, the wideband arbitrary waveform synthesis sampling rate has exceeded 25.6GSa/s, and the highly integrated multi-functional transceiver comprehensive test technology has a signal transmission and reception bandwidth of 1GHz, further expanding the company's technical coverage capabilities in complex test scenarios and laying a solid foundation for the improvement of the product matrix and the expansion of application fields.

In terms of intellectual property layout, the company attaches great importance to the protection and systematic accumulation of research and development results, and actively promotes the rightsization of technological achievements. As of December 31, 2025, the issuer and its subsidiaries had obtained a total of 584 authorized patents, including 541 invention patents, highlighting its solid R&D accumulation and continuous innovation capabilities; at the same time,

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China Electronics Cosi Technology Co., Ltd. Prospectus

The company has obtained 267 software copyrights, providing important support for product intelligence and systematization capabilities. ②Honorary Awards

With its outstanding R&D capabilities and rich R&D achievements, the issuer and its R&D team have won a number of national and provincial and ministerial honors. Among them, national awards include the "First Prize and Second Prize of the National Science and Technology Progress Award", "National Manufacturing Single Champion Enterprise" and "China Patent Award Excellence Award"; provincial and ministerial awards mainly include "Special Prize and First Prize of the Shandong Province Science and Technology Progress Award" and "First Prize of the Shandong Province Technological Invention Award". As of December 31, 2025, the company has 1 national-level leading talent, 1 100-million-level talent, 2 Chinese outstanding engineers, 12 experts with special allowances from the State Council, 2 chief scientists and 3 chief experts of China Electronics Technology Group, and more than 30 provincial and ministerial-level talents.

To sum up, the company has innovative core technologies, outstanding R&D innovation capabilities, and strong technological innovation.

The company belongs to the modern industrial system and its symptoms

The electronic measuring instrument industry is an important industrial foundation for the development of the national economy and an important part of the information society. Electronic measuring instruments are technology-intensive, knowledge-intensive, and capital-intensive products. They are necessary conditions and important means for scientific research, production, testing, and maintenance in the modern information industry. They play an irreplaceable role and have a strategic and basic position in the construction of modern economy. According to the "Classification of Strategic Emerging Industries (2018 Edition)", electronic measuring instruments belong to "4028 Electronic Measuring Instrument Manufacturing" in "1.2.2 Electronic Special Equipment and Instrument Manufacturing" in "1.2 Electronic Core Industries" in "1 New Generation Information Technology Industry". In recent years, my country has continued to strengthen policy support for the electronic measuring instrument industry, injecting strong impetus into industrial development. For relevant policy information, please refer to "II. Basic information about the industry in which the issuer operates (/II) The industry authorities, regulatory systems and main laws, regulations and policies to which the issuer belongs/II. Main industry laws, regulations and policies" in "Section 5 Business and Technology" of this prospectus.

Therefore, the electronic measuring instrument industry to which the company belongs is an industry encouraged and supported by the state and is an important part of the modern industrial system. The launch of a series of national industrial policies and guiding documents has provided a good policy environment for the healthy development of the company's business.

At the same time, the company attaches great importance to technology research and development and product innovation, focusing on the deep integration of market demand and products, and focusing on the deep integration of technological achievements and industry. The company's product performance continues to improve and its product categories continue to enrich, which promotes the development of China's electronic measuring instrument industry and enhances the international competition of China's electronic measuring instruments.

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China Electronics Cosi Technology Co., Ltd. Prospectus

force.

The details of the deep integration of the company’s specific scientific research results with industry are as follows:

Product Core R&D Achievements Application Significance

Low-noise wide-band microwave frequency extends the highest coaxial output synthesis technology and microwave millimeter wave frequency of signal generator products to 110GHz. At the same time, it improves the spectral purity, output power dynamic range technology, high-performance microwave hybrid set and modulation bandwidth of the signal generator transmit channel signal conditioning technology, and realizes mid-to-high-end signal generation circuit assembly technology. The market breakthrough of the generator, sales increased significantly. The spectrum analysis and signal analysis measurement frequency band has been expanded to coaxial 110GHz, and the maximum analysis bandwidth has reached 4GHz for wide-band microwave and millimeter wave signals. It has developed a series of broadband signal/frequency receiving technology and broadband signal acquisition and spectrum analyzer products. It is a major scientific and technological innovation achievement based on my country's electronic measuring instrument signal/spectrum collection and analysis technology and handheld industry. It leads the development of the industry. The wideband real-time frequency of the analyzer handheld platform has led the development of the industry. The comprehensive performance of the product reaches the domestic spectrum digital intermediate frequency signal processing technology. Leading and internationally advanced levels, and achieved industrialized production, realized applications in aviation, aerospace, communications and other fields, breaking the monopoly of foreign products

Extending the frequency band of vector network parameter testing technology to coaxial 110GHz, a single instrument can provide meter-wave measurement, vector network analysis, multi-port mixing reception technology, multi-domain analysis of frequency domain, time domain and data domain, high-precision microstrip thin film power, achieving breakthroughs in markets such as 1mm coaxial devices, broadband photoelectric switching processing and manufacturing technology, and high-speed data communications.

Extend the operating frequency of the power amplifier to 110GHz, and increase the broadband output power to kilowatts. Broadband power synthesis technology, high

The above solid-state power amplifier forms a frequency range coverage precision microstrip thin film circuit processing

Amplifier 4kHz-110GHz solid-state power amplifier manufacturing process

Serialization products are widely used in high-power testing industries, breaking the monopoly of foreign products and constantly improving the frequency of terahertz testing instruments. For the first time in China, it has achieved frequency coverage of broadband and high-efficiency frequency doubling technology, wide

50GHz~1100GHz frequency band, terahertz vector band low-loss mixing technology, high

Terahertz test network analyzer, signal generator, spectrum precision microstrip thin film circuit processing

Instruments, analyzers and other series of test instruments, the results have been applied to manufacturing technology, high-performance microwave

Used in semiconductor testing, aerospace, and communications hybrid integrated circuit assembly technology

In other fields, it solves the urgent need for testing by key users such as universities, scientific research institutes and enterprises.

The key high-precision optical-mechanical unit installation and adjustment technical indicators of the spectrum analyzer have been greatly improved, and the minimum spectral resolution bandwidth has been increased by more than one times to 0.02nm. This has supported the launch of commercial products of spectrum control technology analyzers, and has been applied in batches on user production photoelectric measurement lines.

The instrument realizes low-loss splicing of optical fibers and improves high-precision automatic optical fiber alignment technology.

Optical fiber fusion splicer: stability of loss index, customer recognition enhancement, automatic fiber splicing technology

Strong, it also promoted a significant increase in product sales. The wide-band external cavity type is continuously tunable. A fast mode-hopping-free tunable light source of more than 100 nanometers is achieved.

Harmonic laser cavity design and adjustment technology with long scan greatly compresses the output laser linewidth.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Product Core R&D Achievements Application Significance

technology, picometer-level wavelength calibration sub-wavelength absolute accuracy reaches ±3pm, which improves the detection accuracy and efficiency of optoelectronic devices in the field of application analysis and detection feedback technology, meets the current urgent market demand, greatly improves the key technical indicators of light wave component analyzers, and combines relative frequency response measurement accuracy with ultra-wideband electro-optical modulation technology,

The optical wave component index has been improved to ±2.7dB, supporting the introduction of twelve optical and electrical hybrid domain errors.

Analyzers are commercially available wave element analyzers for multiple analysis and calibration technologies.

Widely used in R&D and production lines of key customers

High-speed laser pulse generation and driving achieves a lower event blind zone capability of 0.8m, optical time domain reflection

With dynamic technology and complex event identification, it has achieved better PON testing capabilities and gained

and processing technology recognized by users to increase product sales.

Increase the data transmission rate of mobile communication test series products to 80Gbps, and take the lead in providing integrated products of mobile communication test and base station testers, significantly improving high-speed communication technology

The test instrument improves baseband data transmission capabilities, improves test efficiency, and conforms to the development trend of large bandwidth and high speed instruments.

Expand the test rate coverage of the data network tester to the range of 1Gbps~400Gbps. The data network test meets the communication test of mainstream high-end switches and routers. High-speed Ethernet test technology

Test instrument The demand for multi-rate testing has broadened the scope of data communication instruments.

market of instrumentation while reducing user testing costs

Continuously improve the core performance of the wireless channel simulator such as channel number, bandwidth, and delay accuracy to achieve 64-node massive MIMO

Combined path loss simulation, multipath fading simulation, wireless channel module network topology technology, high performance

Doppler frequency shift generation, dynamic delay expansion controller, microwave hybrid integrated circuit assembly

control and other functions to simulate signal technology in the real environment

Propagation characteristics, providing a verification platform for the research and development of large-scale MIMO systems, communication systems, etc.

Continuously improve the core indicators such as bandwidth, sampling rate and waveform capture rate of the oscilloscope, expanding the scope of broadband high-speed data acquisition and practical applications.

The product's application scenarios provide a comprehensive set of oscilloscopes, time processing technologies, and high-performance microcontrollers.

Digital oscilloscope, logic analyzer, function generator, bus demultiplexer, hybrid integrated circuit assembly technology

Integration technology that integrates the functions of multiple instruments such as analyzers

products, reduce customer procurement costs, improve test efficiency, and save test bench space

The sampling rate of the arbitrary waveform generator product has been increased to 25.6GSa/s for basic measurement, and the instantaneous bandwidth has exceeded the 10GHz of the instrument. It has arbitrary waveform and standard function arbitrary waveform generation, wideband arbitrary waveform synthesis and processing.

Waveforms, multiple modulation waveforms, digital upconversion generator processing technology

Waveform and other waveform output methods solve the urgent market needs in many fields such as high-speed transmission testing and broadband communication testing.

Improve the rapid simulation of solar array power and power supply transient simulation capabilities of the satellite sailboard power array simulator product to voltage power supply

Output technology rise time is less than 8ms, current establishment time is less than 12.5us

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China Electronics Cosi Technology Co., Ltd. Prospectus

Product Core R&D Results Application Significance

Microwave integrated circuits and components

Efficient and high-precision testing technology, greatly improving microwave component and antenna testing systems

Antenna and RCS high-precision test system, material electromagnetic properties and other product testing efficiency test system technology, high integration multi-function and test accuracy, greatly improve the system integration transceiver integrated test technology and flexibility, enhance the market competitiveness of microwave components, antenna technology, terahertz material electromagnetic properties and other test system products

sex testing technology

Note: As the technical foundation and carrier of the complete machine and test system, the entire component's core technology and application value have been fully integrated into and reflected in the higher-level technical system of the complete machine and test system, so it will not be elaborated separately.

In the future, the company will continue to adhere to the development path of highly integrating R&D with the market and industry, and continuously improve the technical level and market value of its products.

The company’s growth and its symptoms

(1) The company’s own product market space

According to Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets", the global market size of electronic measuring instrument products and test and measurement systems will grow from 101.72 billion yuan in 2020 to 139.12 billion yuan in 2024, and is expected to further grow to 207.42 billion yuan in 2029.

Global market size of electronic measuring instrument products and test and measurement systems

Unit: 100 million yuan

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets"

The market size of China's electronic measuring instrument products and test and measurement systems will grow from 31.20 billion yuan in 2020 to 49.50 billion yuan in 2024, and is expected to further grow to 82.64 billion yuan in 2029.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Market size of China's electronic measuring instrument products and test and measurement systems

Unit: 100 million yuan

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets"

From the perspective of regional development, the electronic measuring instrument industry in developed countries and regions such as Europe and the United States started earlier, has a better foundation for the upstream and downstream industrial chains, and has a large market size. Market demand is mainly based on product upgrading, and the market will maintain steady growth; while the Asia-Pacific region, represented by China and India, is in the stage of industrial transformation and upgrading and the rapid development of emerging markets. The demand for electronic testing instruments has huge potential, and the market size will grow at a relatively high rate.

Therefore, driven by the strong support of national policies, the rapid development of downstream markets, and the changing international environment, the market size of my country's electronic measuring instruments will continue to grow.

(2) Changes in the company’s revenue and profits during the reporting period

During the reporting period, the changes in the company’s operating income, net profit attributable to shareholders of the parent company, and net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses are as follows:

Unit: 10,000 yuan

Item 2025 2024 2023 Operating income 239,837.17 205,188.28 215,292.19 Net profit attributable to owners of the parent company 43,821.16 27,458.88 18,987.06 Net profit attributable to owners of the parent company after deducting non-recurring gains and losses 33,133.01 25,231.36 15,534.18

During the reporting period, benefiting from the good development trend of the downstream industry and the company's leading technical capabilities and product performance, the company's operating income and profitability overall increased steadily.

(3) The company’s growth characteristics come from its core technologies and products

The company's growth characteristics come from core technologies and products. During the reporting period, the company’s main business income was mainly

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China Electronics Cosi Technology Co., Ltd. Prospectus

It must be contributed by the industrialization of core technologies, and related income accounts for more than 99% of the main business income in each period. Through the application of core technologies, the company's product technology levels are generally domestically advanced and internationally advanced, and some areas have reached international leading levels.

(4) The company expands customer capabilities and performance growth

With long-term technological accumulation, reliable product quality and high-quality customer service levels, the company has formed industry-leading business development capabilities and has accumulated good brand recognition and high-quality customer resources at home and abroad. The company's high-quality industrial customers mainly include central enterprise groups in the electronic information industry, communications manufacturers, telecom operators, universities and institutions, etc. Rich and high-quality customer resources and good brand image have established the company's leading market position.

(5) The company’s innovation capabilities can support its own growth

As a high-tech enterprise specializing in the R&D, manufacturing and sales of electronic measuring instruments, Diankesi Instruments is the industry leader with the strongest comprehensive strength and the largest revenue in the field of electronic measuring instruments in China. The company's product categories are complete and the spectrum coverage is the widest, mainly covering complete machines, test systems and complete components. It is the only company in China that can fully benchmark against leading international peers in the fields of microwave/millimeter wave, optoelectronics, communications and basic measuring instruments. The overall technical level is domestically leading. Among them, microwave/millimeter wave measuring instruments have reached the international advanced level and have achieved international leadership in some subdivisions. Relying on the profound technical foundation accumulated over decades, the company has built the largest and most complete scientific research talent team in China, with top R&D conditions and industrialization capabilities. Diankesiyi regards innovation as its core driving force, and through continuous high-intensity R&D investment, it has created a R&D platform with continuous innovation capabilities. As of December 31, 2025, the company and its subsidiaries had obtained a total of 584 authorized patents, including 541 invention patents. The number of invention patents held ranked first in the domestic industry. At the same time, the company actively participates in the formulation of international, national and industry standards, and presides over or participates in the preparation of a number of important standards.

Diankesi Instrument has always been committed to independent research and development and breakthroughs in cutting-edge electronic testing and measurement technology, helping my country achieve leapfrog development from "following", "running parallel" to "partially leading" in this field. The company has cumulatively undertaken more than 300 major projects at the national, provincial and ministerial levels, and its results have been widely used in major national projects such as "Manned Spaceflight", "Lunar Exploration Project", "Beidou Navigation" and "Meridian Project", and provided key testing support for key fields such as communications and aerospace.

With its outstanding technological contribution and industrial support, the company has won a number of national-level awards, including the "First and Second Prizes of the National Science and Technology Progress Award" and "National Manufacturing Individual Champion Enterprise".

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China Electronics Cosi Technology Co., Ltd. Prospectus

It has gathered many high-end talents including national leading talents, millions of talents, outstanding engineers in China, experts with special allowances from the State Council, chief scientists of China Electronics Technology Group, chief experts of China Electronics Technology Group, and provincial and ministerial level talents.

To sum up, the company can promote the development of new productivity through innovation, creation and creativity, and has core competitive advantages in technology layout and product innovation. Therefore, the issuer is a growth-oriented innovative entrepreneurial enterprise and is in line with the positioning of the GEM.

6. Main financial data and financial indicators during the reporting period

The issuer's financial reports for the past three years have been audited by accountants. The following data are taken from the audited financial reports or calculated based on the financial reports.

End of 2025 End of 2024 End of 2023 Project

/2025 /2024 /2023 Total assets (10,000 yuan) 418,926.95 376,085.37 358,206.68 Owners’ equity attributable to the parent company (10,000 yuan) 257,533.59 212,746.13 195,683.97 Asset-liability ratio (parent company) 37.16% 42.00% 43.77% Asset-liability ratio (consolidated) 38.53% 43.43% 45.37% Operating income (10,000 yuan) 239,837.17 205,188.28 215,292.19 Net profit (10,000 yuan) 43,821.16 27,458.88 18,987.06 Net profit attributable to the owners of the parent company (10,000 yuan) 43,821.16 27,458.88 18,987.06 Net profit attributable to the owners of the parent company after deducting non-recurring gains and losses

33,133.01 25,231.36 15,534.18 Net profit (10,000 yuan)

Basic earnings per share (yuan) 0.53 0.33 0.23 Diluted earnings per share (yuan) 0.53 0.33 0.23 Weighted average return on equity 18.64% 13.20% 9.82% Net cash flow generated from operating activities (10,000 yuan) 50,499.83 23,175.29 11,369.79 Cash dividends (10,000 yuan) - - 11,227.72R&D investment as a proportion of operating income 18.88% 22.35% 17.40%

7. Main financial information and operating conditions after the deadline for auditing the financial report

(1) Main business operations after the audit deadline

The audit base date of the issuer's financial report is December 31, 2025. From the audit base date of the financial report to the signing date of this prospectus, the company's overall operating conditions are normal. The company's business model, main raw materials and their purchase prices, main products and their sales prices, the composition of major customers and suppliers, tax policies and

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China Electronics Cosi Technology Co., Ltd. Prospectus

There have been no major adverse changes in other major matters that may affect investors' judgment.

(2) Review of main financial information from January to June 2026

Rongcheng Accounting Firm (Special General Partnership) compiled the company's consolidated and parent company balance sheets on June 30, 2026, January-June 2026 and January-June 2025 The consolidated and parent company's income statement, consolidated and parent company's cash flow statement and notes to the financial statements were reviewed and a "Review Report" was issued. The review opinion is as follows: "Based on our review, we did not notice anything that led us to believe that the financial statements were not prepared in accordance with the provisions of the Accounting Standards for Business Enterprises and failed to fairly reflect in all material respects the consolidated and parent company's financial position of Siyi Technology as of June 30, 2026 and January-June 2026 and 2025. Consolidated and parent company operating results and cash flows from January to June.”

After review, the company's main financial data for June 30, 2026 and January to June 2026 are as follows:

Main financial data of the consolidated balance sheet

Unit: 10,000 yuan

Item June 30, 2026 December 31, 2025 Change rate Total assets 428,422.09 418,926.95 2.27% Total liabilities 153,598.67 161,393.36 -4.83% Owner’s equity 274,823.42 257,533.59 6.71% belongs to the owners of the parent company

274,823.42 257,533.59 6.71% owner’s equity

The increase in the company's total assets at the end of June 2026 compared with the previous year was mainly due to the increase in the company's orders, and the increase in the balances of accounts receivable, receivable financing, prepayments, inventory and other accounts; the decrease in total liabilities compared with the previous year was mainly due to the company paying part of supplier payments and related taxes, and the decrease in the balances of notes payable, accounts payable, taxes payable and other accounts; affected by the increase in net profit achieved in the current period, the total owner's equity increased compared with the end of the previous year.

Main financial data of the consolidated income statement

Unit: 10,000 yuan

Project January-June 2026 January-June 2025 Change rate

Operating income 96,570.88 99,336.21 -2.78% Operating profit 16,536.60 15,875.46 4.16% Total profit 16,556.40 15,911.43 4.05% Net profit 16,675.96 16,034.28 4.00%

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China Electronics Cosi Technology Co., Ltd. Prospectus

Project January-June 2026 January-June 2025 Change rate

Net attributable to owners of parent company

16,675.96 16,034.28 4.00% profit

vested after deducting non-recurring gains and losses

15,781.47 14,395.42 9.63% of the net profit of the owners of the parent company

From January to June 2026, the company's operating income was 965.7088 million yuan, and the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses was 157.8147 million yuan. The main data of the consolidated income statement were slightly different from the same period last year.

Main data of non-recurring profit and loss statement

From January to June 2026 and from January to June 2025, the details of the company’s non-recurring profits and losses are as follows:

Unit: 10,000 yuan

Item January-June 2026 Profit and loss from disposal of non-current assets from January to June 2025, including the write-off department that has made provision for asset impairment

-3.16 27.37 points

Government subsidies included in the current profit and loss, but closely related to the company's normal business operations

Except for government subsidies that are relevant, comply with national policies and regulations, are enjoyed in accordance with determined standards, and have a lasting impact on the company's profit and loss 1,029.78 1,865.43

Other non-operating income and expenses other than the above items 25.72 35.97 Total non-recurring gains and losses 1,052.34 1,928.78 Less: Income tax impact of non-recurring gains and losses 157.85 289.92 Net non-recurring gains and losses 894.49 1,638.86

According to the updated financial data in the "Review Report" from January to June 2026 issued by Rongcheng Accounting Firm (Special General Partnership), there are no major matters affecting the issuance and listing in this update.

(3) Estimated performance from January to September 2026

From January to September 2026, the company is expected to achieve operating income of 1.520 to 1.680 billion yuan, a change of approximately -5.00% to 5.00% from the same period last year; it is expected to achieve a net profit of 245 to 265 million yuan, a change of approximately -2.05% to 5.95% from the same period last year; it is expected to achieve a net profit after deducting non-recurring gains and losses of 2.25 to 2.45 billion, a change of approximately -2.77% to 5.87% from the same period last year. From January to September 2026, the company's overall operating conditions were stable, and there were no major changes in main performance data compared with the same period last year.

8. Specific listing criteria selected by the issuer

According to the listing conditions stipulated in the "Shenzhen Stock Exchange GEM Stock Listing Rules (Revised in 2025)" issued by the Shenzhen Stock Exchange, the listing standards that the issuer meets are "2.1.2 (1) The net profits in the past two years have been positive,

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China Electronics Cosi Technology Co., Ltd. Prospectus

The cumulative net profit is not less than 100 million yuan, and the net profit in the most recent year is not less than 60 million yuan." The details are as follows:

According to the "Audit Report" issued by Rongcheng Accountants (Rongcheng Shenzi [2026] No. 230Z1088), the issuer's net profits attributable to shareholders of the parent company in 2024 and 2025, whichever is lower before and after deducting non-recurring gains and losses, are 252.3136 million yuan and 33,133.01 yuan respectively. Ten thousand yuan, a total of 583.6437 million yuan, not less than 100 million yuan; the lower net profit attributable to shareholders of the parent company before and after deducting non-recurring gains and losses in 2025 is not less than 60 million yuan.

9. Special arrangements for corporate governance of the issuer

As of the signing date of this prospectus, the issuer has no important matters related to special arrangements for corporate governance.

10. Purpose of raised funds and future development plan

(1) Purpose of raised funds

As reviewed and approved by the ninth meeting of the company's second board of directors and the second extraordinary shareholders' meeting in 2025, the company plans to invest in the following projects in an orderly manner after deducting issuance expenses from the funds raised in this issuance:

Unit: 10,000 yuan Serial number Project name Total project investment amount Amount of raised funds to be invested Implementation of the main body of high-end electronic measuring instruments production

1 54,550.85 54,550.85 Diankesi Instrument Line Renovation and Production Expansion Project

New Generation Mobile Communication Test Research Siyi Technology 2 4,803.70 4,803.70

Development and industrialization construction project (Anhui) 3 Technology innovation center construction project 36,465.29 36,465.29 Diankesiyi 4 Supplementary working capital 54,180.16 54,180.16 Diankesiyi

Total 150,000.00 150,000.00 -

Before the funds raised this time are in place, the issuer can use its own funds or bank loans to make preliminary investments based on the actual progress of the project. After the funds raised are in place, they will be used to replace the funds invested in advance and pay the remaining funds for project construction. If the actual net funds raised this time (after deducting issuance fees) cannot meet the funding needs of the above investment projects, the shortfall will be solved by the issuer through bank loans or its own funds. If there is any surplus after the actual net raised funds meet the needs of the above projects, the remaining funds will be used for working capital related to the issuer's main business or in accordance with the relevant regulations of the regulatory agency.

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China Electronics Cosi Technology Co., Ltd. Prospectus

(2) Future development plan

Main business development plan

The company will focus on the main business of electronic measuring instruments, be customer-centric, adhere to the business leadership strategy, strengthen connotative growth and extension expansion, aggregate domestic and foreign superior resources, strengthen joint innovation and cross-domain integrated development with external parties, accelerate high-end product development, expand new domain and new quality testing, comprehensively enhance the company's comprehensive competitiveness, and more effectively support the implementation of my country's major engineering projects and the development of the electronic information industry.

The first is to strengthen, improve and expand the core business of electronic measuring instruments. Continue to develop microwave/millimetre-wave measuring instruments, photoelectric measuring instruments, communication measuring instruments, and basic measuring instruments, consolidate the core technology base, and launch next-generation signal generators/signal analyzers/vector network analyzers with excellent performance, large-bandwidth optical wave component analyzers, and high-performance spectral analysis high-end instruments, high-speed data network testers, high-bandwidth arbitrary waveform generators, high-speed and high-precision oscilloscopes, comprehensively improve product performance indicators, consolidate microwave/millimeter wave leading advantages, accelerate the construction of optoelectronics, communications, and basic leading advantages, and serve the needs of the majority of users with high-value products.

The second is to accelerate the creation of overall scenario-oriented testing solutions. Facing high-growth, high-threshold strategic emerging fields such as low-altitude economy, satellite Internet, artificial intelligence, 6G communications, semiconductors, and automotive electronics, based on the technological leadership and complete product categories established in the core business of electronic measuring instruments, we will strengthen cutting-edge technology research, core key technology research and development, and multi-technology integration, innovate testing service models, increase strategic cooperation and joint innovation with industry leading customers, and gradually launch industry-leading overall testing solutions that cover the entire industry chain application scenarios in strategic emerging fields.

Market layout and development plan

The company has always adhered to the core development concept of "customer-centered", taking the two-wheel drive of consolidating its domestic foundation and expanding the global market, actively building a new development pattern in which domestic and international dual cycles promote each other, promotes digital empowerment, reshapes the growth power mechanism, and strives to build "Siyi" into a world-class brand.

(1) Deepen domestic foundation and build industrial ecological advantages

Network construction: Establish Qingdao as the global strategic headquarters, and continue to improve the national integrated marketing and technical service network covering core cities such as Beijing, Shanghai, Shenzhen, Chengdu, Xi'an, and Nanjing to ensure rapid response and deep penetration of key market areas.

Customer deep cultivation: focusing on aerospace, high-end equipment, artificial intelligence, semiconductors, next-generation communications and other strategies

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China Electronics Cosi Technology Co., Ltd. Prospectus

Strategic emerging industries, establish in-depth strategic partnerships with industry leaders, promote the construction of key customer teams to achieve resource optimization and professional division of labor, deeply participate in key customer demand analysis, long-term relationship maintenance and customized plan formulation, concentrate resources to focus on high-value customers, and improve efficiency.

Industry construction: Provide corresponding solutions for emerging industries, deeply develop industry customer resources by formulating precise sales strategies, achieve sustained growth in sales performance in market segments, enhance the company's market share and brand influence in target industries, build solid industry competition barriers, and provide core support for the company's overall business development.

Ecological co-construction: Actively lead and integrate into the construction of the domestic electronic measuring instrument industry chain, strengthen the resilience and security of the industrial chain through technology sharing, standard co-construction and market collaboration, and build an industrial ecosystem of symbiosis and mutual prosperity. (2) Accelerate global expansion and create a new engine for international competition

Localized operations: With Siyi Technology (Germany) as the fulcrum of globalization strategy, we will deepen the "local +" operating model. By establishing localized sales and service teams in overseas markets, we can achieve forward decision-making and precise services, and comprehensively enhance customer experience and brand recognition in the European market.

Market Radiation: Adopt the strategy of "breakthrough in key areas and radiate to surrounding areas", and use the successful practices in the European market as a model to gradually expand to key global markets such as the Asia-Pacific and realize the strategic transformation from "Chinese brands going global" to "global localized enterprises".

Brand enhancement: Systematically enhance the international visibility and high-end image of the Siyi brand through a combination of strategies such as participating in the formulation of international standards, appearing at top industry exhibitions, and carrying out global brand communication.

Technology R&D development plan

The company will persist in facing the world's technological frontiers, facing the main economic battlefield, and facing major national needs, strengthening independent innovation, enhancing core competitiveness, and enhancing core functions.

First, facing the testing needs of customers and industry markets, focusing on electronic measuring instrument technology research and product development, we will continue to optimize and improve the "1+5+N" technology R&D system layout, build a leading core technology covering microwave/millimeter wave testing, optoelectronic testing, communication testing, basic testing and automatic testing, support excellent products, and integrate future technology development trends. This will enhance the core competitiveness and sustainable development capabilities of domestic high-end electronic measuring instruments, and provide technical support for industrialization development.

The second is to focus on the main responsibilities and main businesses, and strengthen the relationship with the technology development direction and product development needs of each business field.

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The prospectus of CEC Cosi Instruments Technology Co., Ltd. focuses on the identification of core technologies and focuses on laying out root technologies such as ultra-wideband high-performance microwave/millimetre-wave testing technology, wide-spectrum high-precision optical parameter testing technology, ultra-high-speed large-bandwidth time-domain signal testing technology, and big data vertical large model intelligent testing technology to promote the company's technology iteration and industrial upgrading to form sustainable competitiveness.

Third, as a "national team" enterprise in China's electronic measuring instrument industry, it is deeply aligned with national strategic needs, actively undertakes high-end instrument R&D and industrialization projects such as national key R&D plans and high-quality development projects, accelerates breakthroughs in a number of key technologies and strategic products, continues to improve the high-end instrument spectrum system, and continuously enhances the resilience and competitiveness of the industrial chain.

11. Other matters that have a significant impact on the issuer

As of the signing date of this prospectus, there are no other matters that have a significant impact on the issuer.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Section 3 Risk Factors

When evaluating the company's shares issued this time, investors should particularly carefully consider the following risks in addition to other information provided in this prospectus. The following risks are ranked according to the principle of importance or the extent to which they may affect investment decisions, but do not indicate that the risks occur in an order of occurrence.

1. Risks related to the issuer

(1) Risks of technological innovation and product upgrades

(2) Risks of large amounts of related-party transactions

During the reporting period, the average unit price of some product series sold by the issuer to related parties was slightly higher than that of non-related parties. If the subsequent internal control measures of the company cannot be effectively implemented, there will be the potential risk that related parties will use related transactions to transfer interests and harm the interests of the company and small and medium-sized shareholders.

(3) Risks from raw material price fluctuations and supply chain stability

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China Electronics Cosi Technology Co., Ltd. Prospectus

rates have a negative impact. Second, there is uncertainty in the supply of integrated circuits caused by changes in international trade policies. Currently, the company still purchases some of its integrated circuits from overseas manufacturers. If there are further adverse changes in relevant trade policies in the future, it may make it more difficult to obtain overseas high-end chips or limit technical support, bringing uncertainty to the company's production and operations.

(4) Risks of high customer concentration

(5) Risks of higher inventory amounts

At the end of each reporting period, the book values of the company's inventories were RMB 1,170,168,300, RMB 1,084,729,100, and RMB 1,068,116,100 respectively, accounting for 32.67%, 28.84%, and 25.50% of the total assets of the current period respectively. The company's inventory balance is high in scale and proportion, higher than that of comparable companies in the same industry. The higher inventory balance takes up the company's working capital, and the company has a certain scale of long-age inventory. At the end of each reporting period, the book balances of inventory with an age of more than 2 years were 154.799 million yuan, 211.1326 million yuan, and 211.758 million yuan respectively. Ten thousand yuan, accounting for 11.90%, 17.11% and 17.21% of the current inventory book balance respectively. The company has made corresponding provision for depreciation of long-term inventory based on the actual situation of relevant inventory, market environment and other factors. However, if the market environment undergoes major adverse changes in the future, the company will also face the risk of further decline in the net realizable value of relevant inventory.

(6) Risk of collection of receivables

(7) Risk of fluctuations in government subsidies

The electronic measuring instrument industry in which the issuer operates is a basic and strategic industry in the country. The issuer undertakes the national

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China Electronics Cosi Technology Co., Ltd. Prospectus

level, provincial and ministerial level scientific research projects and obtained relevant scientific research funds. In each period of the reporting period, the government subsidies included in other income by the company were 41.9862 million yuan, 26.4612 million yuan, and 136.9965 million yuan, accounting for 23.03%, 9.89%, and 30.56% of the total profit for the period respectively. The government subsidies enjoyed by the company have a greater impact on operating performance. If there are adverse changes in government subsidy policies in the future, or the company no longer meets the conditions for government subsidies, resulting in the company being unable to enjoy relevant government subsidies, it will result in a reduction in the company's net profit and have an adverse impact on the company's future operating performance.

(8) Risk of core technology leakage

(9) Risks of fluctuations in operating performance

During the reporting period, the company's operating income was RMB 2,152.9219 million, RMB 2,051.8828 million and RMB 2,398.3717 million respectively. The net profits attributable to shareholders of the parent company after deducting non-recurring gains and losses were RMB 155.3418 million, RMB 252.3136 million and RMB 331.3301 million respectively. If the supply and demand of the company's main products fluctuates in the future, it may have an adverse impact on the company's business development and lead to a decline in the company's operating performance.

(10) Risk of gross profit margin fluctuations

In each reporting period, the company's main business gross profit margins were 40.04%, 49.50% and 47.64% respectively. The company's product gross profit margins are comprehensively affected by various factors such as supply and demand in the downstream application market, market competition, raw material price fluctuations, customers and product structure. If there are major adverse changes in relevant factors in the future, the company's gross profit margin may be at risk of fluctuations.

(11) Risk of core talent loss

Electronic measuring instruments are a technology-intensive industry with high technical barriers and high overall quality requirements for technology developers and key process production personnel. At present, the competition for talents in the industry is fierce, and the problem of insufficient high-end talents will continue to exist in the short term. On the one hand, if the company's core talents are lost, it may weaken the company's competitiveness or technological advantages; on the other hand, if the company cannot continue to effectively introduce high-end talents, it will be detrimental to the company's long-term development.

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China Electronics Cosi Technology Co., Ltd. Prospectus

(12) Risks of changes in preferential tax policies

During the reporting period, the company enjoyed the preferential corporate income tax policy of 15% for high-tech enterprises, the super deduction policy for R&D expenses, and the super deduction policy for value-added tax for advanced manufacturing enterprises in accordance with relevant regulations. In the future, if the tax preferential policies enjoyed by the company change or the company no longer meets the relevant conditions due to company reasons and is unable to continue to enjoy such preferential policies, it will have an adverse impact on the company's operating results.

(13) Risks that the implementation results of fundraising projects do not meet expectations

The company has fully conducted research and demonstration on the necessity and feasibility of this fundraising project, but such research and demonstration are mainly based on the current industry, technology, market and other factors. If there are major changes in national policies, customer needs, industry environment, technology trends, etc. in the future, the final benefits generated by the investment projects raised by the company's funds may not meet the company's expectations and have an adverse impact on the company's operating performance.

2. Risks related to the industry

(1) Risks of market competition

(2) Risks of changes in industrial policies

In recent years, driven by the booming development of emerging industries and the transformation and upgrading of traditional industries, the market demand for electronic measuring instruments in my country has continued to increase. At the same time, it has also put forward higher requirements for the technical level, product quality and comprehensive services of electronic measuring instrument companies. The country has promulgated a series of policies such as the "Outline of the Fifteenth Five-Year Plan for National Economic and Social Development of the People's Republic of China" and "Implementation Opinions on Promoting Future Industrial Innovation and Development", which have given strong support to the development of my country's electronic measuring instrument industry and also put forward higher standards for industry enterprises. If there are major changes in national industrial policies in the future, it may lead to a slowdown in demand growth in downstream industries, which will have an adverse impact on the company's business development.

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China Electronics Cosi Technology Co., Ltd. Prospectus

3. Other risks

(1) Trade policy risks

In each reporting period, the company's overseas business income amounted to RMB 29.5562 million, RMB 48.0842 million and RMB 62.0695 million respectively, accounting for 1.39%, 2.36% and 2.61% of the main business income respectively. The proportion of overseas income is low, and the company is less dependent on overseas markets. In recent years, frequent international trade frictions and changing overseas tariff policies have brought greater uncertainty to the global economy and international trade. The company's operations have been affected to a certain extent, mainly reflected in the restrictions on the purchase of some imported components or rising costs, and the restrictions on the export of some products. If there are major adverse changes in international trade policies and environment in the future, such as if major exporting countries or regions impose additional tariffs, anti-dumping and other restrictive measures on the company's products, or if the import of key components is subject to stricter controls, it will affect the company's overseas market expansion and put further pressure on the company's supply chain stability and production costs, thereby adversely affecting the company's business development.

(2) Risk of issuance failure

The company plans to issue shares for the first time and list them on the GEM. After the China Securities Regulatory Commission agrees to register, the issuance will be carried out in accordance with the relevant issuance rules of the GEM. The results of this issuance will also be jointly affected by various internal and external factors such as the overall situation of the securities market and investors' recognition of this issuance plan. There may be risks of issuance suspension or even failure due to insufficient subscription.

(3) Risk of spot returns being diluted

After the funds raised this time are in place, the company's total share capital and net assets will be significantly increased; at the same time, the commissioning of the raised-invested projects will generate a large amount of depreciation and amortization, and there is a certain cycle from the commissioning of the raised-invested projects to the generation of income, and it is difficult to generate economic benefits in the short term. Therefore, after the funds raised this time are in place, earnings per share and return on equity are expected to decline in the short term, causing the company to face the risk of immediate returns being diluted.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Section 4 Basic Information of the Issuer

1. Basic information of the issuer

Company Chinese name Ceyear Technologies Co., Ltd. Company English name Ceyear Technologies Co., Ltd. Registered capital 825,834,500 yuan

Legal representative Zou Pengwen

Date of establishment of the limited company: May 8, 2015

Date of establishment of the joint-stock company: December 31, 2020

Residence: No. 98, Xiangjiang Road, Huangdao District, Qingdao City, Shandong Province Postcode 266555

Phone number 0532-68971575

Fax number 0532-86897258

Internet address http://www.ceyear.com

Email [email protected]

Department Responsible for Information Disclosure and Investor Relations Office of the Board of Directors

Department head Xu Jun

Contact number 0532-68971575

2. Establishment of the issuer and changes in share capital and shareholders during the reporting period

(1) Establishment of the issuer

The predecessor of the issuer is China Electronics Instrument Co., Ltd., which was established on May 8, 2015. The issuer is a joint-stock company established by China Electronics Instrument Co., Ltd. through an overall change.

Establishment of limited company

On April 20, 2015, China Electronics Technology Co., Ltd. made a shareholder decision to establish China Electronics Instruments Co., Ltd. with a registered capital of 500 million yuan, which is wholly owned by China Electronics Technology Corporation, and formulated the "Articles of Association of China Electronics Instruments Co., Ltd." China Electronics Technology Corporation will make an initial monetary investment of 100 million yuan, and the remaining registered capital will be subscribed in the form of assets and cash. On November 30, 2022, Rongcheng Accountants issued the "Capital Contribution Review Report" (Rongcheng Zhuanzi [2022] No. 230Z3109), which reviewed the capital contribution.

On May 8, 2015, China Electronics Instrument Co., Ltd. completed the industrial and commercial registration procedures for the establishment of the company and obtained the "Business License" issued by the Qingdao Huangdao District Market and Quality Supervision Administration Bureau.

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China Electronics Cosi Technology Co., Ltd. Prospectus

The equity structure of China Electronics Instruments Co., Ltd. when it was established was as follows:

Unit: RMB 10,000 Serial number Name of shareholder Amount of subscribed capital Amount of paid-in capital Contribution ratio 1 China Electronics Technology 50,000.00 10,000.00 100%

Total 50,000.00 10,000.00 100%

On July 8, 2019, China Electronics Technology Co., Ltd. made a shareholder decision, agreeing to pay a registered capital of 400 million yuan in the form of asset contribution and amend the relevant provisions of the company's articles of association. For relevant information, please refer to “(3) Major events since the issuer’s establishment” in this chapter.

On July 16, 2019, Shandong Qilu Accounting Firm issued a "Capital Verification Report" (Qilu Huiyan Zi [2019] No. 6053). The verification confirmed that as of July 16, 2019, China Electronics Technology Co., Ltd., a shareholder of China Electronics Instrument Co., Ltd., had contributed a total of RMB 400 million in the second phase of investment, and the investment method was to transfer capital reserves to increase paid-in capital. China Electronics Technology's cumulative paid-in registered capital is RMB 500 million, and the company's paid-in capital is RMB 500 million, accounting for 100% of the total registered capital. On November 30, 2022, Rongcheng Accountants issued the "Capital Verification Review Report" (Rongcheng Zhuanzi [2022] No. 230Z3111) to review the capital verification.

On September 29, 2019, China Electronics Instrument Co., Ltd. processed the industrial and commercial change registration. After this change in paid-in capital, the investment structure of China Electronics Instrument Co., Ltd. is as follows:

Unit: RMB 10,000 Serial number Name of shareholder Amount of subscribed capital Amount of paid-in capital Contribution ratio 1 China Electronics Technology 50,000.00 50,000.00 100%

Total 50,000.00 50,000.00 100%

Establishment of joint-stock companies

On September 17, 2020, Rongcheng Accountants issued the "Audit Report" (Rongcheng Shenzi [2020] 230Z3849). As of April 30, 2020, the audited net assets of China Electronics Instrument Co., Ltd. were RMB 1,480,805,100.

On November 1, 2020, Beijing Guoyou Dazheng Asset Appraisal Co., Ltd. issued the "Asset Assessment Report on the Value of All Equity Interests of China Electronics Instruments Co., Ltd.'s Shareholders Involved in China Electronics Instruments Co., Ltd.'s Plan to Restructure and Establish a Joint Stock Company" (Dazheng Pingbao Zi (2020) No. 249A). As of April 30, 2020, the assessed value of the owners' equity (net assets) of China Electronics Instruments Co., Ltd. was 165,572.29 10,000 yuan. This evaluation was filed with China Electronics Technology Corporation’s “6958ZGDK2020109” filing form.

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On July 16, 2020, China Electronics Instrument Co., Ltd. held the second meeting of the second board of directors in 2020, and reviewed and approved the "Proposal on the Shareholding Restructuring Plan of China Electronics Instruments Co., Ltd."; on November 19, 2020, China Electronics Instrument Co., Ltd. held the second meeting of the second board of directors in 2020. At the fourth meeting of the year, the "Proposal on Confirming the Audit Report and Evaluation Report on the Share Reform of China Electronics Instruments" and the "Proposal on Adjusting the Shareholding Reform Plan of China Electronics Instruments Co., Ltd." were reviewed and approved.

On December 2, 2020, China Electronics Instrument Co., Ltd. held the fifth employee representative conference, which reviewed and approved the "China Electronics Instruments Co., Ltd. Joint Stock Restructuring Plan".

On December 4, 2020, China Electronics Instrument Co., Ltd. held its third extraordinary shareholders' meeting in 2020, and the resolution approved the overall change of China Electronics Instruments Co., Ltd. from a limited liability company to a joint-stock company. All existing shareholders of China Electronics Instruments Co., Ltd. will act as sponsors and convert the audited book net assets of 1,480,805,113.19 yuan as of April 30, 2020 into a joint-stock company based on a stock conversion ratio of 1:0.5577. 825,834,500 shares (face value RMB 1 per share) are regarded as the share capital of the joint-stock company, and the remaining net assets are included in the capital reserve of the joint-stock company.

On December 24, 2020, all shareholders of China Electronics Instrument Co., Ltd. signed the "Sponsor Agreement of China Electronics Instrument Co., Ltd." and agreed to the overall change of China Electronics Instrument Co., Ltd. to establish "China Electronics Instrument Technology Co., Ltd."

On December 25, 2020, China Electronics Technology Corporation issued the "China Electronics Technology Corporation's Reply on the Joint-Stock Restructuring of China Electronics Technology Instruments Co., Ltd." (China Electronics Technology Corporation [2020] No. 530), agreeing to the restructuring plan of China Electronics Instruments Co., Ltd. as a whole into a joint-stock company.

On December 28, 2020, Rongcheng Accountants issued a "Capital Verification Report" (Rongcheng Yanzi [2020] No. 230Z0303) to verify the above investment.

On December 30, 2020, all the sponsors held the founding meeting of China Electronics Co., Ltd. Co., Ltd. and the first extraordinary shareholders meeting in 2020, and reviewed and approved the "Proposal on the Establishment of China Electronics Co., Ltd. Co., Ltd." and the "Proposal on the Review of the Articles of Association (Draft) of China Electronics Co., Ltd."

On December 31, 2020, the issuer obtained the "Business License" issued by the Qingdao Municipal Administrative Approval Service Bureau (unified social credit code is 913702113341616485).

On February 9, 2021, China Electronics Technology issued the "Enterprise Property Rights Registration Form" to complete the state-owned property registration related to this overall change of establishment.

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China Electronics Cosi Technology Co., Ltd. Prospectus

After the issuer's overall change and establishment, the equity structure is as follows:

No. Name of shareholder Number of shares held (shares) Shareholding ratio 1 China Electronics Technology 417,416,550 50.54% 2 No. 41 Institute 82,583,450 10.00% 3 China Electronics Technology Investment 72,046,513 8.72% 4 Huawei Technologies 66,066,743 8.00% 5 Guoyuan Fund 66,066,743 8.00% 6 Siyi Development 65,617,864 7.95% 7 Industrial Investment Fund 20,275,750 2.46% 8 China Electronics Fund 20,275,750 2.46% 9 Siyi Innovation 15,485,137 1.88%

Total 825,834,500 100.00%

(2) Changes in share capital and shareholders during the reporting period

At the beginning of the reporting period, the company’s equity structure was as follows:

Total 825,834,500 100.00%

Huawei Technologies withdraws

On December 26, 2024, Huawei Technology and Yuanzhi Spark signed a "Share Transfer Agreement", stipulating that Yuanzhi Spark would transfer 37,162,543 shares of Dianke Siyi held by Huawei Technology for 228.8249 million yuan.

On December 26, 2024, Huawei Technology and Hongtu Shanli signed a "Share Transfer Agreement", agreeing that Hongtu Shanli would transfer 28.9042 million shares of Dianke Siyi held by Huawei Technology for 177.975 million yuan.

On March 17, 2025, Dianke Siyi completed the change in the shareholder list for the above-mentioned equity transfer.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Guoyuan Fund exits

On August 20, 2024, Guoyuan Fund and Mingzhi Changxin signed a "Share Transfer Agreement", stipulating that Mingzhi Changxin would transfer 29,338,857 shares of Dianke Siyi held by Guoyuan Fund for 270 million yuan.

On December 27, 2024, Guoyuan Fund and Aviation Industry Investment signed a "Share Transfer Agreement", stipulating that Aviation Industry Investment would transfer 31,294,767 shares of Dianke Siyi held by Guoyuan Fund for 288.00 million yuan.

On December 27, 2024, Guoyuan Fund and Honghua Qiyuan signed a "Share Transfer Agreement", stipulating that Honghua Qiyuan would transfer 2.173248 shares of Dianke Siyi held by Guoyuan Fund for 20 million yuan.

On March 6, 2025, Guoyuan Fund and Honghua Qianyuan No. 3 signed a "Share Transfer Agreement", stipulating that Honghua Qianyuan No. 3 would transfer 3.259871 shares of Dianke Siyi held by Guoyuan Fund for 30 million yuan.

On November 6, 2024, Diankesiyi completed the change in the shareholder list regarding the share transfer between Guoyuan Fund and Mingzhi Changxin; on March 17, 2025, Diankesiyi completed the change in the shareholder list regarding the equity transfer between Guoyuan Fund and Aviation Industry Investment, Honghua Qiyuan, and Honghua Qianyuan No. 3.

After the above-mentioned share transfer is completed, the equity structure of Diankesiyi is as follows:

Serial number Shareholder name Number of shares held (shares) Shareholding ratio

1 China Electronics Technology 417,416,550 50.54% 2 Forty-one Institute 82,583,450 10.00% 3 China Electronics Technology Investment 72,046,513 8.72% 4 Siyi Development 65,617,864 7.95% 5 Yuanzhi Spark 37,162,543 4.50% 6 Aviation Industry Investment 31,294,767 3.79% 7 Wisely Promote Innovation 29,338,857 3.55% 8 Hongtu Shanli 28,904,200 3.50% 9 Industrial Investment Fund 20,275,750 2.46% 10 China Electronics Fund 20,275,750 2.46% 11 Siyi Innovation 15,485,137 1.88% 12 Honghua Qianyuan No. 3 3,259,871 0.39% 13 Honghua Qiyuan 2,173,248 0.26%

Total 825,834,500 100.00%

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China Electronics Cosi Technology Co., Ltd. Prospectus

(3) Major events since the issuer’s establishment

Since its establishment, the company has implemented an asset transfer under common control. In 2019, No. 41 Institute transferred assets related to the instrumentation business to China Electronics Instrument Co., Ltd. and its wholly-owned subsidiary Anhui Siyi for free. The details are as follows:

The specific content of asset transfer and the legal procedures to be performed

The specific implementation of this free transfer is as follows:

On June 19, 2018, China Electronics Technology Technology Co., Ltd. issued the "Reply on the Adjustment and Resource Integration of Business Assets Related to the Mixed Ownership Reform of China Electronics Technology Instrument Co., Ltd." (China Electronics Technology Zihan [2018] No. 128), agreeing that China Electronics Technology Instruments Co., Ltd. Carry out mixed ownership reform and implement relevant asset adjustment and integration plans, agree that China Electronics Instrument Co., Ltd. will establish a wholly-owned subsidiary Anhui Instrument in Bengbu City, Anhui Province, and transfer relevant instrumentation business assets of No. 41 Headquarters to China Electronics Instrument Co., Ltd. and Anhui Instrument free of charge.

On January 3, 2019, the Ministry of Finance issued an approval document (Cai Fang [2019] No. 1), agreeing that China Electronics Technology Co., Ltd. would use December 31, 2017 as the base date to transfer the assets related to the instrument business of No. 41 Institute (original asset value of 897.348 million yuan, net value of 652.4202 million yuan) to China Electronics Instrument Co., Ltd. and its wholly-owned subsidiary Anhui Instrument, and adjust the relevant accounts accordingly.

On February 1, 2019, the former Huapu Tianjian Accounting Firm (Special General Partnership) (now "Rongcheng Accountants") audited the balance sheets related to the transferred assets of forty-one institutions as of January 31, 2019 and issued an "Audit Report" (Huibaozi [2019] No. 5603). After audit, as of December 2017 On the 31st, the net asset value transferred was 652,420,196.92 yuan; as of January 31, 2019, the net asset value transferred was 620,038,754.67 yuan.

On April 15, 2019, No. 41 Institute signed the "Free Transfer Agreement of State-owned Property Rights" with China Electronics Instrument Co., Ltd. and Anhui Instrument, clearly agreeing on matters related to the transfer of assets related to the instrument business of No. 41 Institute to China Electronics Instrument Co., Ltd. and Anhui Instrument.

From February to May 2019, No. 41 transferred relevant assets to China Electronics Instrument Co., Ltd. and Anhui Instrument for free. The assets actually transferred to China Electronics Instrument Co., Ltd. include: monetary funds of 173.2922 million yuan, inventory of 53.8917 million yuan, and net fixed assets of 234.1504 million yuan, totaling 461.3343 million yuan; the assets transferred to Anhui Instrument include: monetary funds of 23.5195 million yuan, inventories of 55.9924 million yuan, and net fixed assets 39.6717 million yuan, construction in progress 34.9020 million yuan, net intangible assets 4.6189 million yuan, a total of 158.7045 million yuan;

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The total assets transferred in the prospectus of China Electronics Cosi Instrument Technology Co., Ltd. are 620.0388 million yuan (the values of the above-mentioned transferred assets are based on the book value of No. 41 as of January 31, 2019). In addition, a total of 537 patents and software copyrights were transferred to China Electronics Instrument Co., Ltd. This transfer only involves the above-mentioned assets, and the operating claims and debts related to the original electronic measuring instrument business of No. 41 Institute are not included in the scope of the transfer.

As of the end of May 2019, the delivery of the above-mentioned transfer-related assets has been completed.

Details of this asset transfer

(1) The background and reasons for this asset transfer, the specific decision-making process, and the approval status of the competent authorities

Background and reasons for this asset transfer

①Background of this asset transfer

China Electronics Instrument Co., Ltd. was established in 2015 and is positioned as a professional company platform for China Electronics Technology to develop the industrialization and marketization of electronic measuring instruments. In November 2017, China Electronics Instrument Co., Ltd. was approved by the National Development and Reform Commission to be included in the third batch of national mixed ownership reform pilot units.

②The reason for this asset transfer

In the early days of the establishment of China Electronics Instrument Co., Ltd., instrumentation-related business, assets, personnel, etc. were mainly concentrated in No. 41. In order to further consolidate the foundation for the mixed-ownership reform of China Electronics Instrument Co., Ltd., effectively implement the mixed ownership reform, and accelerate the industrialization and marketization process of electronic measuring instruments, taking the mixed-ownership reform pilot as an opportunity, all parties plan to transfer the relevant assets of the instrument business of No. 41 Institute as of December 31, 2017 to China Electronics Instrument Co., Ltd. and its subsidiary Anhui Instrument for free.

The specific decision-making process of this asset transfer and the approval status of the competent authorities

①The specific decision-making process of this asset transfer

The specific process of implementation of the decision-making process by the transferor and transferee of this asset transfer is as follows:

time specific process

March 12, 2018 The first party committee meeting of Forty/Forty-one Institute in 2018 reviewed and approved the free transfer of assets

The first meeting of the director’s office meeting of the 41st Institute in 2018 made a resolution and agreed to change the date of the 41st Institute on March 17, 2018

Assets related to the instrumentation business were transferred to China Electronics Instrument Co., Ltd. free of charge

China Electronics Instruments Co., Ltd. The eighth party committee in 2018 reviewed and approved the China Electronics Instruments Co., Ltd. Mixing Institute on March 27, 2018

Plans for ownership reform involving matters related to instrumentation business resource integration

The third meeting of the first board of directors of CLP Instrument Co., Ltd. in 2018 reviewed and approved CLP Instrument on April 15, 2018

Plans for limited mixed ownership reform involving matters related to instrumentation business resource integration

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China Electronics Cosi Technology Co., Ltd. Prospectus

Forty-One Institute’s 2018 Staff Congress reviewed and approved the free transfer of assets of Forty-One Institute on June 8, 2018

case

②Approval status of competent authorities

According to the "Interim Measures for the Management of State-owned Assets Disposal of Central-Level Public Institutions" and other laws and regulations in effect at the time, the one-time disposal of state-owned assets by central-level public institutions with a unit value or batch value (original book value, the same below) of more than 8 million yuan (including 8 million yuan) shall be submitted to the Ministry of Finance for approval after review by the competent department.

On June 19, 2018, China Electronics Technology Co., Ltd. issued the "Reply on Matters Concerning the Adjustment and Resource Integration of Business Assets Related to the Mixed Ownership Reform of China Electronics Instruments Co., Ltd." (Electronic Science and Technology Zihan [2018] No. 128), agreeing that the company will first implement the overall plan to adjust relevant assets and integrate resources to promote the mixed ownership reform. The company will organize 41 institutes to formulate a specific plan for the free transfer of assets of relevant public institutions, and submit it to the group company for review and approval, and then submit it to the Ministry of Finance and other competent authorities for approval.

On June 27, 2018, the asset transfer matters of Forty-One were reported to China Electronics Technology Corporation, which were reviewed by China Electronics Technology Corporation and submitted to the Ministry of Finance for approval.

On January 3, 2019, the Ministry of Finance issued the relevant approval (Caifang [2019] No. 1), agreeing that China Electronics Technology Co., Ltd. would use December 31, 2017 as the base date to transfer the assets related to the instrument business of No. 41 Institute (original asset value of 897.348 million yuan, net value of 652.4202 million yuan) to China Electronics Instrument Co., Ltd. and its subsidiary Anhui Instrument, and adjust the relevant accounts accordingly.

(2) Assessment procedures for related asset performance, reasons and rationality for differences between the book value of assets on the actual delivery date and the book value of assets delivered in the approval documents

Evaluation procedures for performance of relevant assets

According to Article 7 of the "Interim Measures for the Assessment and Management of State-owned Assets of Enterprises": "If an enterprise commits any of the following acts, it may not assess the relevant state-owned assets: (1) Free transfer of all or part of the enterprise's assets with the approval of the people's government at all levels or its state-owned assets supervision and administration agency; (2) Merger, asset (property rights) replacement and free transfer between a wholly state-owned enterprise and its subordinate wholly-owned enterprises (public institutions) or between its subordinate wholly-owned enterprises (public institutions)."

Before this asset transfer, China Electronics Instrument Co., Ltd., Anhui Instruments and Forty-One Institute, as wholly-owned enterprises or public institutions of China Electronics Technology Co., Ltd., transferred assets free of charge between the parties. The transfer has already been carried out by Forty-one Institution.

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China Electronics Cosi Technology Co., Ltd. Prospectus

With the approval of the Ministry of Finance, the unit in charge of unit assets, the relevant state-owned assets may not be evaluated.

The reason for the difference between the book value of assets on the actual delivery date and the book value of assets delivered in the approval document

Reasonableness

According to "Huipaozi [2019] No. 5603" issued by Huapu Tianjian Accounting Firm (Special General Partnership)

"Audit Report", the actual transfer and delivery base date (i.e. January 31, 2019) and the transfer in the approval document

The details of the differences in transferred assets on the base date (i.e. December 31, 2017) are as follows:

December 31, 2017 (10,000 yuan) January 31, 2019 (10,000 yuan) Difference (10,000 yuan)

Preface

assets

No. CLP Instruments CLP Instruments CLP Instruments

Total Amount Anhui Instrument Total Amount Anhui Instrument Total Amount Anhui Instrument

limited limited limited

1 Monetary funds 20,000.00 16,000.00 4,000.00 19,681.17 17,329.22 2,351.95 318.83 -1,329.22 1,648.05 2 Inventory 11,310.42 5,580.42 5,730.00 10,988.41 5,389.17 5,599.24 322.01 191.25 130.76

fixed assets

3 56,225.95 50,279.68 5,946.27 55,090.52 49,141.70 5,948.81 1,135.43 1,137.97 -2.54

original value

4 Accumulated depreciation 24,479.86 22,607.67 1,872.19 27,708.32 25,726.67 1,981.65 -3,228.46 -3,118.99 -109.46

fixed assets

5 31,746.09 27,672.00 4,074.09 27,382.20 23,415.04 3,967.17 4,363.89 4,256.96 106.92

net worth

6 Construction in progress 1,713.93 - 1,713.93 3,490.20 - 3,490.20 -1,776.27 - -1,776.27 7 Intangible assets 484.50 - 484.50 484.50 - 484.50 - - - 8 Accumulated amortization 12.92 - 12.92 22.61 - 22.61 -9.69 - -9.69

intangible assets

9 471.58 - 471.58 461.89 - 461.89 9.69 - 9.69 Net worth

Original value of assets 89,734.80 71,860.10 17,874.71 89,734.80 71,860.10 17,874.71 - - -

combine

plan

Net asset value 65,242.02 49,252.42 15,989.60 62,003.88 46,133.43 15,870.45 3,238.14 3,118.99 119.15

Note: 1. Inventory is the sum of raw materials and goods in stock; 2. Difference amount = amount on the transfer base date (December 31, 2017) - actual transfer delivery

Amount on base date (January 31, 2019).

According to the table above, the actual scope of assets transferred on the base date of transfer and delivery is different from the base date of transfer in the approval document.

There are differences in the scope of transferred assets. The specific reasons are from the transfer base date of the approval document to the actual transfer and delivery base date.

Period: (1) Due to some inventory and fixed assets have been disposed of or damaged or scrapped, etc., the transfer to

The fixed assets of China Electronics Instruments Co., Ltd. decreased by 11.3797 million yuan, and the inventory transferred to China Electronics Instruments Co., Ltd. decreased by 1.9125 million yuan.

million, the inventory of instruments transferred to Anhui decreased by 1.3076 million yuan; (2) Due to the construction in progress,

Continued investment in the transferred equipment resulted in an increase of RMB 17.7627 million in projects under construction transferred to Anhui Instruments.

The fixed assets of Anhui Instruments increased by RMB 25,400. The above-mentioned differences in the scope of transferred assets have been accounted for through the transfer of monetary funds.

The number of revolutions was adjusted. China Electronics Instrument Co., Ltd. and Anhui Instrument transferred a total of 318.83 less from No. 41.

Ten thousand yuan of monetary funds, the original value of the transferred assets on the final actual transfer and delivery base date shall be the same as the transfer base specified in the approval document.

The original value of the assets transferred on the quasi-date remains the same.

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In addition, because the gap between the actual transfer and delivery base date and the transfer base date in the approval document exceeds one fiscal year, the assets to be transferred continue to accrue depreciation and amortization in the accounts of No. 41, resulting in the net asset value transferred on the actual transfer and delivery base date being lower than the net asset value transferred on the transfer base date in the approval document. According to the provisions of Article 6 of the original "Interim Measures for the Disposal and Management of State-owned Assets of Central-Level Public Institutions", the accounting treatment of central-level public institutions shall be carried out in accordance with the relevant provisions of the current financial and accounting system of public institutions. Since the above-mentioned difference in the net book value of the transferred assets complies with accounting policies, and the approvals from the Ministry of Finance and China Electronics Technology did not authorize China Electronics Instrument Co., Ltd. and No. 41 Institute to make up for the difference in net asset value, this part of the difference has not been made up in other forms.

(3) This asset transfer and final asset delivery are in compliance with relevant regulations of the competent authorities

Article 11 of the "Interim Measures for the Administration of the Free Transfer of State-owned Property Rights of Enterprises" stipulates that both parties to the transfer shall make accounting adjustments based on relevant approval documents and transfer agreements, and handle property rights registration and other procedures in accordance with regulations.

According to the aforementioned relevant regulations, China Electronics Instrument Co., Ltd., Anhui Instrument Co., Ltd. and No. 41 Institute have signed the "Agreement on Free Transfer of State-owned Property Rights", which clearly stipulates matters such as asset transfer differences and asset delivery. The original value of the transferred assets on the final actual transfer and delivery base date is consistent with the original value of the transferred assets on the transfer base date stipulated in the Ministry of Finance's approval document. The asset transfer and final delivery conditions comply with the Ministry of Finance's approval requirements and the specific provisions of the "Agreement on Free Transfer of State-owned Property Rights" and comply with relevant regulations of the competent authorities.

In addition, No. 41 has reported to the Ministry of Finance regarding the free transfer of assets and the original value of the final delivery of inventories, fixed assets, projects under construction and intangible assets.

To sum up, the issuer’s asset transfer and final asset delivery are in compliance with the approval requirements of the Ministry of Finance, the content of the Agreement on Free Transfer of State-owned Property Rights, and the relevant regulations of the competent authorities.

Impact on the company’s business

After the completion of this free transfer, the company's main business has not undergone major changes. As of December 31, 2018, the consolidated net assets of China Electronics Instrument Co., Ltd. were 151.8125 million yuan; as of January 31, 2019, the transferred net assets of the instrument business of No. 41 Institute were 620.0388 million yuan. After the relevant assets of No. 41 were transferred to the company, the overall strength of the company's electronic measuring instrument business was further improved.

As of the end of May 2019, the delivery of the above-mentioned transfer-related assets has been completed.

Impact on company management

There were no major changes in the company's management before and after this free transfer.

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Impact on the actual controller of the company

The company's equity structure has not changed before and after this asset transfer, and the company's actual controller is China Electronics Technology, which has not changed.

Impact on the company’s operating performance

After the completion of this transfer, the issuer's resources required to conduct business have been enriched, and it has a complete ability to carry out business activities in the market, further enhancing the company's comprehensive strength and core competitiveness in the field of electronic measuring instruments.

Specific impact on the issuer’s production and operations

Before the free transfer, the positioning, main business, research and development direction, personnel, assets and other aspects of the issuer and No. 41 are as shown in the following table:

Project China Electronics Instrument Co., Ltd. No. 41

An important business unit under China Electronics Technology Group

Position, is the research and development, production and sales of electronic measuring instruments developed by China Electronics Group Electronics Group, electronic measuring instruments

Exhibition platform The main entity of basic quantitative theories and cutting-edge technologies, metrological technology research and services, testing equipment and other businesses

R&D, production of electronic measuring instrument products and R&D and sales of electronic measuring instrument products, non-sales, main business of basic theory and cutting-edge technology of electronic measurement

Have independent production capabilities for complete machine products, technology, measurement technology research and services, testing equipment, etc.

Electronic measuring instrument products, electronic measuring instruments based on electronic measurement oriented towards industrialization and marketization

Main products Theory and cutting-edge technology, measurement technology research and products

Services, test equipment products

Electronic measuring instrument product research and development, electronic measurement Electronic measuring instrument business marketization and industrialization application basic theory and cutting-edge technology, measurement technology research and development direction

Research on the application of technology, and the application of the aforementioned technology in testing equipment products

Field application research and development

Personnel: 646 employees: 997 employees

Total assets are 536.1583 million yuan, including inventory. Total assets are 2.6018521 million yuan, including inventory assets are 192.4439 million yuan, fixed assets are 26.2519 yuan, 461.8428 million yuan, and fixed assets are 520.8182 million yuan.

Note: The personnel and assets in the above table are based on the end of the fiscal year before the free transfer, that is, the end of 2018.

After the free transfer, the positioning, main business, research and development direction, personnel, assets and other aspects of the issuer and No. 41 are as shown in the following table:

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Project China Electronics Instrument Co., Ltd. No. 41

China Electronics Technology Group, an important business unit under China Electronics Technology Group Co., Ltd., has the industrial development position in the instrumentation sector. It is the basic positioning of China Electronics Technology Group Co., Ltd. to carry out electronic measurement.

The company's main business has not changed after the transfer of the main platform for theoretical and cutting-edge technology, measurement technology research and services, testing equipment and other businesses.

The basic theory and cutting-edge technology of electronic measurement and the main business of planning have been improved.

Further strengthen quantitative technology research and services, testing equipment and other electronic measuring instruments for industrialization and marketization, basic theories and cutting-edge technologies of electronic measurement, and main products

Product quality technology research and services, basic theory and cutting-edge technology of electronic measurement of test equipment products, marketization and industrial application of electronic measurement instrument business

R&D direction: quantitative technology research, as well as the research on testing technology of the aforementioned technologies

Application research and development in the field of equipment products

Possessed to carry out the industrialization and marketing of electronic measuring instruments

Personnel A complete personnel team required for market-based business, with 225 employees

1,509 employees

Possessed to carry out the industrialization and marketing of electronic measuring instruments

The complete asset allocation required for field-based business has total assets of RMB 2,327,632,400, including inventory assets of RMB 1,477,354,100, including inventory of RMB 378,463,500, fixed assets of RMB 255,618,678,223,300, and fixed assets of RMB 242,927,800.

Ten thousand yuan

Note: The personnel and assets in the above table are based on the end of the year when the free transfer was implemented, that is, the end of 2019.

Based on the above situation, the specific impact of this transfer on the company's key elements of production and operation such as business, technology, personnel, and assets are as follows:

(1) Business

After the asset transfer was completed, Forty-One Institute no longer produced electronic measuring instruments and began to gradually stop selling electronic measuring instrument products; the issuer formed a complete production capacity of electronic measuring instruments, and relevant business contracts began to be signed by the issuer; however, due to factors such as the execution of some historical contracts and changes in the supplier list, from June 2019 to 2020, Forty-one Institute still sold some electronic measuring instrument products; since Starting from January 1, 2021, except for a small amount of consignment sales, No. 41 will no longer sell electronic measuring instrument products. The agency sales situation refers to a small number of special customers for whom the company cannot directly sign contracts. The company temporarily sells products through 41 agency sales. The relevant orders are actually executed by the company and the expenses are also borne by the company. No. 41 does not charge any fees in this process, and the income and profits generated from the sales of electronic measuring instrument products are enjoyed by the company.

(2) Technology

After the 537 patents and software copyrights of the 41 institutes were transferred to the company, the technology related to electronic measuring instruments was also inherited by the company.

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China Electronics Cosi Technology Co., Ltd. Prospectus

After the asset transfer is completed, the research and development directions of the company and No. 41 Institute will be independent of each other. The research and development content of No. 41 Institute in the field of electronic measurement is to carry out cutting-edge exploration in the fields of basic theories, principles, laws and other fields, and to promote leap-forward progress in new technologies in related disciplines; the research and development of industrialization of electronic measuring instruments is conducted independently by the company. After the asset transfer was completed, the company independently applied for some patents and software copyrights to improve, upgrade and iterate the technology inherited from No. 41 Institute.

(3) Personnel

On June 1, 2019, No. 41 Institute transferred key personnel related to the electronic measuring instrument business to the company, including 606 people transferred to China Electronics Instrument Co., Ltd. and 152 people transferred to Anhui Instrument Co., Ltd. The transfer of personnel from the 41st Institute has further strengthened the company's original electronic measuring instrument management system.

(4) Assets

No. 41 Institute transferred business assets related to electronic measuring instruments to China Electronics Instrument Co., Ltd. and Anhui Instruments for free. The transferred assets include buildings, land use rights and production machinery and equipment, which are important components of the company's electronic measuring instrument production system. After the asset transfer is completed, the company will integrate the transferred assets with the original electronic measuring instrument business system, forming a system capability covering the entire business process of electronic measuring instruments.

To sum up, after the asset transfer, the issuer has the complete ability to independently organize the business operations of electronic measuring instruments, and is independent from Forty-One Institute in terms of research and development, production, sales, personnel, and management.

(4) The issuer’s listing/listing status in other securities markets

As of the signing date of this prospectus, the company has not been listed or listed on other securities markets.

3. Issuer’s equity structure

As of the signing date of this prospectus, the company’s equity structure is as follows:

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China Electronics Cosi Technology Co., Ltd. Prospectus

As of the signing date of this prospectus, the number and proportion of shares held by each shareholder of the company are as follows:

No. Name of shareholder Number of shares held (shares) Shareholding ratio 1 China Electronics Technology 417,416,550 50.54% 2 No. 41 Institute 82,583,450 10.00% 3 Electronics Technology Investment 72,046,513 8.72% 4 Siyi Development 65,617,864 7.95% 5 Yuanzhi Spark 37,162,543 4.50% 6 Aviation Industry Investment 31,294,767 3.79% 7 Wisely Promote Innovation 29,338,857 3.55% 8 Hongtu Shanli 28,904,200 3.50% 9 Industrial Investment Fund 20,275,750 2.46% 10 China Electronics Fund 20,275,750 2.46% 11 Siyi Innovation 15,485,137 1.88% 12 Honghua Qianyuan No. 3 3,259,871 0.39% 13 Honghua Qiyuan 2,173,248 0.26%

Total 825,834,500 100.00%

4. Information on the issuer’s holding subsidiaries, joint-stock companies and branches

As of the signing date of this prospectus, Diankesiyi has 2 wholly-owned subsidiaries, 2 branches, and no shareholding companies.

(1) Subsidiaries

As of the signing date of this prospectus, Dianke Siyi has two wholly-owned subsidiaries, including Siyi Technology (Ansi)

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China Electronics Cosi Technology Co., Ltd. Prospectus

Emblem) and Siyi Technology (Germany).

Siyi Technology (Anhui)

As of the signing date of this prospectus, the basic information of Siyi Technology (Anhui) is as follows:

Company Name China Electronics Cosi Instrument Technology (Anhui) Co., Ltd.

Date of establishment: June 19, 2018

Legal representative Shi Xianfeng

Registered capital 100 million yuan

Paid-in capital 100 million yuan

No. 1515, Lushan Avenue, Bengbu City, Bengbu Area, China (Anhui) Free Trade Demonstration Zone

Building A9 in the courtyard

Shareholder composition and control relationship The issuer’s wholly-owned subsidiary

Technology development, production, sales, maintenance, and consulting services for mechanical and electronic products, instruments, electronic components, and automatic control equipment; wireless communication equipment, transmission

The business scope includes the development, production, sales and system integration engineering of transmission and access network equipment and broadband multimedia equipment; system integration and software development; measurement and testing services; import and export of goods and technologies (except for goods and technologies that are prohibited or restricted by the state). (Projects that require approval according to law can only be carried out with approval from relevant departments)

The main business is the research and development, production and sales of electronic measuring instruments; and the issuer’s positioning in the issuer’s business sector

The business areas are the same, but the specific product structures are different.

In June 2018, China Electronics Instrument Co., Ltd. made a shareholder decision to establish Anhui Instruments with a registered capital of 100 million yuan, which will be wholly owned by China Electronics Instruments Co., Ltd., and formulated the "Articles of Association of China Electronics Instruments (Anhui) Co., Ltd." On June 19, 2018, Anhui Instruments completed the industrial and commercial registration procedures for the company's establishment and obtained the "Business License" issued by the Bengbu Municipal Administration for Industry and Commerce and Quality and Technical Supervision Administration.

On January 21, 2021, Anhui Instruments completed the company name change, which was changed to "China Electronics Cosi Instrument Technology (Anhui) Co., Ltd."

The main financial data of Siyi Technology (Anhui) are as follows:

Unit: 10,000 yuan

Project December 31, 2025/Year 2025 December 31, 2024/Year 2024 Total assets 28,660.94 36,209.97 Net assets 24,240.85 22,931.48 Operating income 17,027.63 15,505.21 Net profit 1,297.22 959.50 Note: The above data has been audited by Rongcheng Accountants.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Siyi Technology (Germany)

As of the signing date of this prospectus, the basic information of Siyi Technology (Germany) is as follows:

Company name Deepsight Messtech GmbH

Date of establishment: September 30, 2024

Manager Jiang Huanbin, Dong Jiantao

Registered capital 400,000 euros

Residence Lurgiallee 10-12, 60439 Frankfurt am Main

Shareholder composition and control relationship The issuer’s wholly-owned subsidiary

Business scope: technology development, production, sales, maintenance and consultation of communication equipment, measuring instruments, electronic components, mechanical equipment, and automatic control equipment; measurement and testing services;

System integration and software development; import and export of goods and technology

Positioning in the issuer’s business segment The issuer’s sales, calibration, repair and technical service platform in Europe

2023 1 In September, the National Development and Reform Commission issued the "Notice of Registration of Overseas Investment Projects" to register the company's investment in setting up Siyi Technology (Germany) in Germany; in September 2024, the company submitted registration information; in December 2024, the Ministry of Commerce issued the "Enterprise Overseas Investment Certificate", agreeing to the company's establishment of Siyi Technology (Germany) in Germany; the company has obtained the "Business Registration Certificate" issued by the Qingdao Branch of China Construction Bank Co., Ltd. for the above-mentioned overseas investment.

The main financial data of Siyi Technology (Germany) are as follows:

Unit: 10,000 yuan

Item December 31, 2025/Year 2025 December 31, 2024/Year 2024 Total assets 258.24 97.75 Net assets 136.00 97.69 Operating income 167.68 - Net profit 27.85 -0.20 Note: The above data has been audited by Rongcheng Accountants.

(2) Branch office

As of the signing date of this prospectus, the issuer has 2 branches, namely the Beijing Branch of China Electronics Cosili Technology Co., Ltd. and the Chengdu Branch of China Electronics Cosili Technology Co., Ltd. Their basic information is as follows:

Beijing Branch:

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China Electronics Cosi Technology Co., Ltd. Prospectus

Name China Electronics Cosi Technology Co., Ltd. Beijing Branch

Unified social credit code 91110107MA01RREE2Q

Business location: No. 501, Floor 5, Building 1, No. 131, Xisihuan North Road, Haidian District, Beijing

Person in charge Xue Peixiang

Software development; computer system integration; import and export of goods; import and export of technology; sales of electronic components, instruments and meters; maintenance of electronic components, instruments and meters; economic information consultation (excluding investment consultation and education consultation). (The scope of independent business operations of market entities in accordance with the law

Select business projects and carry out business activities; for projects that require approval according to law, business activities must be carried out in accordance with the approved content after approval by relevant departments; business activities that are prohibited or restricted by national and municipal industrial policies are not allowed. )

Date of establishment June 8, 2020

Business period: June 8, 2020 to no fixed period

Chengdu Branch:

Name China Electronics Cosi Technology Co., Ltd. Chengdu Branch

Unified social credit code 91510106MAK5J0MH0Y

Business location: No. 2, Floor 2, Building 37, No. 300 Yipintianxia Street, Jinniu District, Chengdu City, Sichuan Province

Person in charge Tai Xin

General projects: software development; sales of electronic measuring instruments; information system integration services; import and export of goods; import and export of technology; technical services, technology development, technical consulting, business scope

Technology exchange, technology transfer, and technology promotion. (Except for projects that require approval according to law, business activities can be carried out independently with a business license and in accordance with the law)

Date of establishment January 7, 2026

Business period: January 7, 2026 to no fixed period

5. Basic information on major shareholders and actual controllers holding more than 5% of the issuer’s shares

(1) Basic information on controlling shareholders and actual controllers

As of the signing date of this prospectus, China Electronics Technology directly held 417.4166 million shares of the company, accounting for 50.54% of the company's total share capital. In addition, No. 41 and Dianke Investment are related parties controlled or managed by China Electronics Technology. China Electronics Technology controls a total of 572.0465 million shares of the company, accounting for 69.27% of the company's total share capital, and is the company's controlling shareholder and actual controller.

Basic situation

Company Name China Electronics Technology Group Co., Ltd.

Legal representative Wang Haibo

Residence: No. 27, Wanshou Road, Haidian District, Beijing

Enterprise type limited liability company (solely state-owned)

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China Electronics Cosi Technology Co., Ltd. Prospectus

Registered capital RMB 21,530 million

Unified social credit code 91110000710929498G

Date of establishment: February 25, 2002

Responsible for the research and production of basic electronic products; responsible for the construction of major national electronic information system projects; scientific research, development, production, and sales of electronic information software, materials, components, complete machines and system integration, and related common technologies; self-operated and agent import and export business of various commodities and technologies (except for commodities and technologies that are restricted by national companies or prohibited from import and export); engage in processing of imported materials and "three to one supplement" business; engage in counter trade and transfer business scope

Export trade; industrial investment; asset management; engaging in e-commerce information services; organizing overseas (overseas) participation and exhibitions for enterprises in the industry. (Market entities are free to choose business projects and carry out business activities in accordance with the law; projects that require approval in accordance with the law must be approved by relevant departments and carry out business activities in accordance with the approved content; they are not allowed to engage in business activities that are prohibited or restricted by national and city industrial policies)

China Electronics Technology is mainly engaged in the engineering construction of electronic information systems, communications and electronic equipment, main business and cooperation with issuers.

The development and production of software and key components; Dian Kesi Instrument is one of the business partners of electronic measuring instruments.

Development platform, its main business is the research and development, production and sales of electronic measuring instruments.

Shareholder composition

As of the signing date of this prospectus, CETC is a wholly state-owned enterprise. The specific shareholder composition is as follows:

Serial number Shareholder name Subscribed capital contribution (10,000 yuan) Capital contribution ratio

1 State-owned Assets Supervision and Administration Commission of the State Council 2,153,000 100%

Total 2,153,000 100%

Main financial data

In the most recent issue of the year, China Electronics Technology’s main financial data are as follows:

Unit: Ten thousand yuan project June 30, 2025/January to June 2025 December 31, 2024/2024 Total assets 62,242,479.52 64,715,957.07 Net assets 35,675,183.54 34,862,744.15 Operating income 20,065,969.95 42,660,512.37 Net profit 1,310,251.61 2,468,001.54 Note: The financial data on December 31, 2024/2024 were audited by Daxin Accounting Firm (Special General Partnership). Unaudited on June 30, 2025/January-June 2025.

Situation of main subsidiaries

As of December 31, 2025, in addition to the company, there are a total of 86 second-level member units (including scientific research institutions and enterprises) included in the consolidation scope of China Electronics Technology, as shown in the following table:

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China Electronics Cosi Technology Co., Ltd. Prospectus

Year of establishment Registered capital/start-up

Serial number Company name Main business

Unit (year) Capital (10,000 yuan)

Mainly engaged in flat panel display production, semiconductor production equipment, and component production China Electronics Technology Group Corporation

1 1962 8,266.09 Production equipment, cleaning and cleaning products, vacuum equipment, surface treatment equipment, Second Research Institute of the Division

R&D and production of solar cell production equipment, LED production equipment, etc.

Mainly engaged in technical research and product development in TV electroacoustic and related fields, China Electronics Technology Group Corporation

2 1960 4,504.66 Production trial production, product sales, engineering integration, quality inspection and certification, Third Research Institute of Standards Department

Formulation and consulting services

China Electronics Technology Group Corporation is mainly responsible for researching mobile communication technology, new systems and new equipment, and providing new 3 1958 10,466.92

Technical system and technical standards of type mobile communication equipment of the Seventh Research Institute of the Division

A professional R&D institution mainly engaged in optical fiber and cable technology, with a professional field of China Electronics Technology Group Corporation

4 1970 2,947.11 is: Optical Fiber Cable and Connector Technology, Fiber Optic Sensing Technology, Eighth Research Institute of Fiber Optic Cable Division

Special process equipment and optical fiber communication system engineering technology, etc.

China Electronics Technology Group Corporation

5 2002 6,542.63 Mainly engaged in the application research and development of magnetic materials, magneto-optical materials and devices, the Ninth Research Institute

China Electronics Technology Group Corporation

6 1955 15,814.21 Specializing in system integration and equipment production

Division 10 Research Institute

China Electronics Technology Group Corporation Mainly engaged in comprehensive research on optoelectronic technology, integrating laser and infrared technology7 1956 18,056.57

The key scientific research unit of the 11th Research Institute of the Division

Mainly engaged in the research of various new vacuum microwave devices and gas laser devices. China Electronics Technology Group Co., Ltd. has microwave, laser, vacuum surface analysis, precision machining, optomechanical and electrical-8 1957 11,082.01

The 12th Research Institute of the Division provides technical foundations for integration, sensing technology, ceramics, cathodes, magnetic material manufacturing, and computers.

Mainly engaged in semiconductor research, microwave and millimeter wave power devices and monolithic electronics China Electronics Technology Group Corporation

9 1956 18,642.00 channels, microwave and millimeter wave hybrid integrated circuits, microwave components and small complete machines, the Thirteenth Research Institute of Optical Division

R&D and production of electrical devices, MEMS devices, etc.

Mainly engaged in electronic system engineering products in the information technology industry, communications and China Electronics Technology Group Corporation

10 1949 46,716.85 The 14th Research Institute of the Department of Research, Production, Sales and Service of Electronic Equipment, Software and Key Components

service

Mainly engaged in basic research, national science and technology research and automation, aerospace measurement and control China Electronics Technology Group Corporation

11 1958 10,641.00 Research and development of other major application projects, providing information construction for the 15th Research Institute of the Department of Computer Science

system equipment

China Electronics Technology Group Co., Ltd. Mainly engaged in application research and development of low temperature, electronics, superconductivity, and automotive air conditioning 12 1966 1,849.84

Developed by the 16th Research Institute of the Division

China Electronics Technology Group Co., Ltd. Mainly researches technology and electronics that convert chemical energy, light energy, and thermal energy into electrical energy 13 1958 2,119.00

Division 18 Research Institute Energy System Technology

China Electronics Technology Group Corporation is mainly engaged in large-scale system engineering technology such as radio navigation, communications, and computers 14 1961 13,244.03

Division 20 Research Institute is engaged in technology application research, design and production.

China Electronics Technology Group Co., Ltd. is mainly engaged in micro motors and special equipment, motor integration products, switches 15 1963 18,702.71

Division 21 Research Institute Research and Development of Power Electronic Products

China Electronics Technology Group Corporation

16 1963 6,459.39 Specializing in the observation, research and application of radio wave environmental characteristics

Division 22 Research Institute

China Electronics Technology Group Corporation

17 1963 6,368.82 Application Research Institute specializing in optical and telecommunications transmission line technology

Division 23 Research Institute

China Electronics Technology Research Institute No. 24 Mainly engaged in semiconductor analog integrated circuits, hybrid integrated circuits, and microcircuits 18 1968 10,006.12

Research Institute Development and production of modules and electronic components

China Electronics Technology Group Co., Ltd. is mainly engaged in acoustic surface wave technology, vibration inertia technology, acousto-optic technology, 19 1970 15,933.21

Division 26 Research Institute Research and Development of Piezoelectric and Acousto-Optic Crystal Materials and Bulk Acoustic Wave Microwave Delay Lines

Mainly engaged in measurement and control and satellite applications, optoelectronic machines and systems, and drone research China Electronics Technology Group Corporation

20 1967 5,518.02 The 27th Research Institute of the main division of R&D, Internet of Things, electric vehicles, unmanned aerial vehicles, and information services

body business

China Electronics Technology Group Corporation Information system top-level design and overall demonstration, system development and production, software design 21 1964 57,167

Division 28 Research Institute Design development, information system equipment joint testing and integration verification services

China Electronics Technology Group Corporation Mainly engaged in system technology research, specializing in system integration and design, super 22 1965 41,224.99

Division 29 Research Institute Broadband microwave, high-density signal processing, software system engineering

China Electronics Technology Group Corporation

23 1965 43,425.93 Mainly engaged in R&D and production in the fields of information security and communication confidentiality

Division 30 Research Institute

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China Electronics Cosi Technology Co., Ltd. Prospectus

Year of establishment Registered capital/start-up

Serial number Company name Main business

Unit (year) Capital (10,000 yuan)

Mainly engaged in research on embedded computers, their operating systems, and software environments. China Electronics Technology Group Corporation

24 1958 10,219.86 Development and application, aerospace computer research and development, chip design and development, Software Division 32nd Research Institute

Software engineering evaluation, etc.

China Electronics Technology Group Co., Ltd. is mainly engaged in the development and production of high-performance, various specifications of NdFeB magnets25 1958 8,251.38

Division 33 Research Institute: Research and development of magnetic devices and production of magnetic equipment

Engaged in optical communication machine and system technology research and equipment development and production, with China Electronics Technology Group Corporation

26 1971 4,316.60 Optical fiber communication network and system, optical network equipment, optical terminal, Fiber Optic Communications Division 34th Research Institute

Taking engineering design and implementation as the main professional direction

China Electronics Technology Group Corporation

27 1978 10,131.69 Mainly engaged in communication technology research, equipment development and production

Division 36 Research Institute

Mainly engaged in electronic system engineering, radio and television equipment, industrial automation control China Electronics Technology Group Corporation

28 1965 37,117.92 Manufacturing equipment, various electronic instruments (medical electronics, environmentally friendly electronics, the 38th Research Institute of the Automotive Electronics Department

Sub-special test instruments, etc.) production of components

China Electronics Technology Group Corporation is mainly engaged in the research, development and construction of reflective antennas and antenna control systems 29 1968 14,699.78

Division 39 Research Institute Accounting and Production

China Electronics Technology Group Corporation

30 1984 1,620.60 The 40th Research Institute of the Department is mainly engaged in the R&D and manufacturing of new micro and small connectors and relays.

China Electronics Technology Group Co., Ltd. Mainly engaged in basic theories and cutting-edge technologies of electronic measurement, and measurement and testing technology 31 1968 10,555.00

The 41st Research Institute of the Company conducts research, develops and services test equipment, test equipment and components. China Electronics Technology Group Corporation is mainly engaged in the research and related products of hybrid integrated circuits and multi-chip components. 32 1968 3,757.48

The 43rd Research Institute of the company develops and produces products

Mainly engaged in semiconductor light emitting devices, semiconductor light detection devices, integrated China Electronics Technology Group Corporation

33 1969 9,037.84 Optical devices, optical fiber transmission components, cameras, infrared thermal imaging cameras, etc. The 44th Research Institute of the Department of Optoelectronics

Product research and production

China Electronics Technology Group Corporation Mainly engaged in research on electronic special equipment technology, complete machine systems and application processes 34 1958 14,102.79

Division 45 Research Institute Development and Manufacturing

Mainly engaged in semiconductor silicon materials, semiconductor gallium arsenide materials, semiconductor carbon China Electronics Technology Group Corporation

35 1958 15,599.01 The 46th Research Institute of the Quality Inspection Branch of Silicon Materials, Special Optical Fibers and Optical Fiber Components, and Electronic Materials

Analysis and production of industrial instruments

Mainly engaged in the research and development of microelectronics technology, with microcontrollers/microprocessors and China Electronics Technology Group Corporation

36 1958 6,872.00 The 47th Research Institute of the Department of Interface Circuits, Application Specific Integrated Circuits, Memory Circuits, and Thick Film Hybrid Integration

Circuits and computers and their applications are the development direction

China Electronics Technology Group Corporation is mainly engaged in microelectronics, solar cells, optoelectronic materials, power electronics, 37 1964 59,917.36

Division 48 Research Institute R&D and production of special equipment for magnetic materials

Mainly produces gas sensors, transducers, measurement and control systems, pressure switches, China Electronics Technology Group Corporation Farad-level ultra-large capacity capacitor temperature clocks, flammable gas alarms, 38 1976 16,726.67

Division 49 Research Institute Pressure sensor, temperature sensor, humidity sensor, noise sensor, flow sensor, smoke ultraviolet

The communications field mainly includes research and production of communication systems and equipment; microwave, China Electronics Technology Group Co., Ltd. The detection field mainly includes the development and production of test instruments and detection equipment; Civil 39 1977 5,013.49

The application fields of the 50th Institute of the Division mainly include power electronics, urban public vision monitoring and management, civil detection, sensor control, etc.

The special-shaped waveguide factory mainly processes copper and aluminum, and its products involve copper and copper China Electronics Technology Group Co., Ltd.

40 1978 726.01 Alloy decorative tubes, radio frequency cables, rectangular and flat rectangular waveguides, No. 51 Research Institute of Ridge Wave Division

catheter

Mainly engaged in digital audio and video, digital storage and recording, peripheral reinforcement, taxation China Electronics Technology Group Corporation

41 1984 27,240.61 Electronics, intelligent monitoring and other technologies and various electronic products, the 52nd Research Institute of the Energy-saving Lighting Industry Department

Product R&D and production

China Electronics Technology Group Corporation Mainly engaged in cable TV, satellite terrestrial reception, TV monitoring, and anti-theft alarm 42 1980 7,359.03

Division 53 Research Institute Police, computer, special light source and other engineering projects

Mainly engaged in satellite communications, scatter communications, microwave relay communications, comprehensive industry China Electronics Technology Group official digital network and program-controlled switching, radio and television, office management automation, server 43 1952 27,788.19

Division 54 Research Institute Service, tracking, measurement, remote control, telemetry, remote sensing, network management and monitoring,

Research and development in professional fields such as highway traffic management and power distribution network automation China Electronics Technology Group Co., Ltd. Mainly engaged in research and development of solid-state devices and microsystems, photoelectric display and detection devices 44 1958 54,437.35

The 55th Research Institute of the Division develops, produces and sells

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China Electronics Cosi Technology Co., Ltd. Prospectus

Year of establishment Registered capital/start-up

Serial number Company name Main business

Unit (year) Capital (10,000 yuan)

Mainly engaged in microelectronics basic theory and development exploration research, commissioned integrated circuit and electronic product design and development, integrated circuit process manufacturing, integrated circuit China Electronics Technology Group Corporation

45 1985 28,506.30 Mask processing, integrated circuits and electronic product applications, commissioned by the 58th Research Institute of the Circuit Module Department

Design and development, anatomical analysis of integrated circuits, high-reliability packaging and detection and measurement

China Electronics Technology Group Corporation Electronic information system design, system research and development, system integration and organization 46 1984 23,008.00

Research on the Implementation of Science and Technology Projects of the Institute of Electronic Science and Technology

China Electronics Technology Group Co., Ltd. Mainly engaged in information development strategy research and large-scale information system research and development, application 47 1995 13,226.88

Department of Information Science Research Institute Use and Services

Import and export business; sales of automobiles; international bidding for mechanical and electrical products; warehousing services; economic, information, technology and foreign economic and trade consulting services; investment and management business in the cultural, educational and sports industries; real estate development; commodity China Far East International Trade Corporation

48 1985 11,427.02 Exhibitions and sales; metal materials, non-metal materials, metal ores, construction companies

Sales of construction materials, coke, coal, asphalt, fuel oil, and plastic products; leasing of instruments and equipment; technology development, technology promotion, and technology exchange; project equipment management, and engineering contracting

China Electronics Taiji (Group) has technology development and technology promotion; computer system services; sales of electronic products, 49 2001 100,000.00

Co., Ltd. Computers, software and auxiliary equipment, mechanical equipment, communication equipment

External dispatch of labor personnel required for overseas projects commensurate with its strength, scale and performance; sales of third-class medical devices; import and export business; bidding business; contracting projects; research and development, production and sales of electronic products, communication equipment and equipment; automobiles (including cars), motorcycles and spare parts, mechanical equipment, computers and auxiliary equipment, textiles, clothing and daily necessities, China Electronics Technology International Trade

50 2002 70,000.00 Stationery, household appliances, Wujijiaodian, metal products, sporting goods and equipment Co., Ltd.

Sales of materials, building materials and chemical products (excluding hazardous chemicals), first and second class medical equipment, furniture and interior decoration materials; trade brokerage and agency; foreign trade consulting; warehousing services; technical consulting services for agriculture, forestry, animal husbandry and fish; technology development, technology transfer, technology promotion, technology consultation and technical services; conference services; hosting of exhibitions and display activities

Industrial investment, environmental protection products, network products, intelligent products, electronic products China Electronics Hikvision Group Co., Ltd.

51 2002 94,500.00 Product research and development, technology transfer, technical services, production and sales, commercial company

Business consulting services, self-owned house leasing, import and export business

Research and development of electronic products, communication equipment, instruments and meters, research and development of special railway equipment and accessories, computer software and hardware research and development, technical services, self-operated and agent import and export business of various commodities and technologies, domestic trade, Jianzhong Electric Power Group Co., Ltd.

52 2007 100,000.00 Intelligent system engineering, electronic system engineering, highway communications, monitoring, division

Design and construction of toll comprehensive system engineering, aviation system consulting services, agricultural machinery and accessories product development and technical services, agricultural production information system construction and maintenance

Licensed items: Import and export of goods and technology (items that require approval according to law can only be carried out with the approval of relevant departments. Specific business items are subject to the approval documents or licenses of relevant departments). General items: Magnetic Function China Electronics Chip Technology (Collection)

53 2007 82,000.00 Energy Materials and Devices, Microelectronics, Optoelectronics, Components, Sensors and Group) Co., Ltd.

Research, development, production, sales and service of electronic equipment and systems, semiconductor manufacturing and packaging, overall solutions for smart information systems, smart information system integration and services, property management

Design, manufacturing, sales and technical services of integrated circuits, semiconductor discrete devices, electronic components and assemblies, light-emitting diodes (LED tubes) for lighting, electronic products, general equipment, special equipment, monitoring system equipment, communications and radio and television equipment (excluding national restricted and prohibited items), anti-theft and fire alarms and similar devices; computer manufacturing; information system integration service Zhongkexin Integrated Circuit Co., Ltd.

54 2008 50,000.00 Services; technology development, technology transfer, technology consulting and companies of computer software and hardware

Sales; electronic and intelligent engineering construction; manufacturing of general instruments and industrial automatic control system devices; self-operated and agency import and export business of various commodities and technologies (except for commodities and technologies that are restricted by the state or prohibited from import and export); house leasing; property management services; conference services. For-profit private training that engages in language proficiency, art, sports, technology, etc. training

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Year of establishment Registered capital/start-up

Serial number Company name Main business

Unit (year) Capital (10,000 yuan)

Institutions (except subject and language cultural education training for primary and secondary school students)

It operates the following domestic and foreign currency businesses: providing financial and financing consulting, credit authentication and related consulting and agency services to member units; assisting member units in the collection and payment of transaction funds; providing guarantees to member units; handling entrusted loans and entrusted investments between member units; handling bills for member units China Electronics Technology Finance

55 2012 580,000.00 Acceptance and discounting; handling internal transfer settlements between member units and corresponding limited companies

Design settlement and liquidation plans; absorb deposits from member units; handle loans and financial leases for member units; engage in inter-bank lending; underwrite corporate bonds of member units; equity investments in financial institutions; investment in securities; consumer credit, buyer's credit and financial leasing business for member unit products. Research and development and sales of computer hardware, computer software, computer embedded software, network communication products, automotive electronics, electronic equipment and instruments, computer system integration services, electronic engineering design and construction, Anzhong Electronics Digital Technology (Collection)

56 2012 150,000.00 Full protection engineering design and construction, lightning protection engineering design and construction, Construction Group) Co., Ltd.

Decoration engineering design and construction, mechanical and electrical installation engineering design and construction, as well as technology development, technical consultation, technology transfer and technical services in the above professional fields, engaged in the import and export business of goods and technology

Information service business in the second type of value-added telecommunications business in Shaanxi Province (excluding fixed network telephone information services and Internet information services); research and development, production and sales of navigation products, communication products (excluding satellite TV broadcast ground receiving facilities), vehicle positioning communication terminals, avionics equipment and instruments; construction and construction of electronic information engineering and comprehensive system engineering; security supervision China Electronics Northwest Group Co., Ltd.

57 2013 100,000.00 Control engineering design and construction; computer software, hardware, communication systems and bit companies

Integration and development of equipment application systems, time and frequency systems, air traffic control systems, and intelligent transportation systems; electronic information technology development, technology transfer, technical consulting, and technical services; maintenance and testing of electronic products and food instruments; wholesale, retail, and installation of mechanical and electrical equipment; import and export operations of goods and technologies (except for imports and exports of goods and technologies restricted and prohibited by the state)

Electronic special equipment technology research, semiconductor special equipment, semiconductor micro-processing equipment, semiconductor thermal equipment, electronic component equipment, optoelectronic device equipment, semiconductor kiln research and development; special welding and thermal engineering, micro-assembly and semiconductor materials, computer-aided design and manufacturing integration, special chassis 58 2013 245,000.00

Co., Ltd. Cabinet integrated manufacturing, surface protection engineering, sensor technology research; electronic special equipment, automatic three-dimensional container development and related technical consulting; research and development, production, and sales of photovoltaic products, solar silicon wafers, solar cells, and solar modules; photovoltaic power generation system design technology research; import and export business China Electronics Investment Holdings Co., Ltd.

59 2014 800,000.00 Investment management, equity investment, investment consulting; property brokerage

company

The design, development, integration, production, sales, and maintenance of civil airborne avionics systems, subsystems, equipment, and related ground systems and equipment software and hardware, and China Electronics Avionics Co., Ltd.

60 2009 249,500.00 Import and export trade of services, goods and technology; house leasing and services (company by law

For projects that require approval, business activities can only be carried out after approval by relevant departments)

Computer network information systems, information security, electromagnetic and spectrum security research, development and technical services; computer software and hardware, electromagnetic protection, basic materials China Electronics Technology Network Information

61 2015 350,000.00 and component technology development, production, sales, evaluation technical services, Technology Information Security Co., Ltd.

Transfer and information technology consulting services; system integration and engineering construction; foreign business operations engaged in import and export of goods or technology import and export

General projects: research and development of emerging energy technologies; engineering and technology research and experimental development; research and development of new material technology; measurement technology services; software development; battery manufacturing; photovoltaic equipment and component manufacturing; electronic components and electromechanical components equipment manufacturing; electronic components and electromechanical component equipment sales; software sales 62 1992 156,322.38

Co., Ltd. sales; technology import and export; goods import and export; machinery and equipment leasing; photovoltaic power generation equipment leasing; property management; non-residential real estate leasing. (Except for projects that require approval according to law, business activities can be carried out independently with a business license in accordance with the law) Licensed projects: inspection and testing services; construction engineering construction; catering services

1-1-68

China Electronics Cosi Technology Co., Ltd. Prospectus

Year of establishment Registered capital/start-up

Serial number Company name Main business

Unit (year) Capital (10,000 yuan)

services; accommodation services. (Projects that require approval according to law can only be carried out with the approval of relevant departments. Specific business projects shall be subject to the approval documents or licenses of relevant departments)

Asset management; investment management; leasing commercial buildings; leasing special equipment; China Electronics Asset Management Co., Ltd.

63 2016 290,000.00 Economic information consulting (except investment consulting); hotel management; property management; company

real estate development

Tiandi Information Network Co., Ltd.

64 2016 200,000.00 Computer system services; Internet information services

Division

Software technology development, technical consulting, technical services, and technical training; sales of self-produced software products and wholesale software products to government agencies and state-owned enterprise customers operating critical infrastructure; provision of after-sales services for the above software products China Netcom Technology Co., Ltd.; 65 2016 5,500 (USD) for government agencies and state-owned enterprise customers operating critical infrastructure

The company is responsible for retailing and wholesale sales of computers and auxiliary equipment, providing design, integration, installation and debugging of computer systems related to the above software products, and providing maintenance, consulting and after-sales services for computers and systems related to the above software products.

R&D, production (branch branches only), sales and technical services of communication networks and electronic information systems and related equipment, software and hardware products; information system integration of Xinzhongdian Network Communications Group; communication system engineering construction and general contracting; communication and navigation operations 66 2017 300,000.00

Co., Ltd. business services; inspection, certification (operation with license), maintenance of electronic products; measurement services; self-operated and agent import and export business of various commodities and technologies (except for national restrictions and prohibitions)

Real estate development; real estate consulting; engaging in real estate brokerage business; construction of China Electronics Technology (Beijing) Real Estate

67 2018 2,000.00 Engineering project management; leasing office space; property management; sales self-development development company

Commercial housing developed; engineering survey; engineering design

Licensed projects: engaging in construction-related business, import and export of goods and technology (projects that are subject to approval according to law can only be carried out with the approval of relevant departments, and specific business projects are subject to the approval documents or licenses of relevant departments) General projects: microelectronic process technology development and services, Electronic Materials United Microelectronics Center Co., Ltd. and electronic products (chips, devices, components, modules, microsystems, complete machines, 68 2018 100,000.00

Responsible company (packaging, testing) design, manufacturing, sales and technical services, process technology training, technology transfer and incubation, application software design and development, data services, system integration, research and development, production, sales and technical services of various equipment, instruments, instrument parts and complete machines, trade agency, exhibition display services, self-owned equipment and house leasing, property management

Microwave imaging, communication and data fusion and related electronic equipment development and services; aerostat system development and services; integrated circuit design, manufacturing, packaging, testing and services; artificial intelligence and big data design and development; microsystems and hybrid microelectronics and related electronic packaging, metal casings, ceramic casings, electronic materials, cryogenic refrigeration and vacuum, low-temperature superconducting electronics, intelligent environmental control, microwaves and millimeter waves, fiber optic cables, fiber optic sensing, photoelectric conversion, China Electronics Microelectronics Technology Co., Ltd.

69 2018 100,000.00 Technology development, production, sales, testing and inspection of power supply and component products; Co., Ltd.

Industrial electric kilns, surface treatment equipment, environmental protection engineering equipment, optical cable special equipment, unmanned driving equipment, robots, terahertz and millimeter wave technology products, intelligent equipment product technology development, production, sales, testing and inspection; system security integration services; technical research, technical consulting, technical services, technology transfer in the field of public safety; self-owned house leasing; import and export of goods or technology

The research and development of semiconductor materials, chips, components, integrated circuits, sensors, components and modules, electronic packaging products, complete machines, equipment, and systems is opened by China Power Guoji North Co., Ltd.

70 2018 100,000.00 Development, production, sales, technical consulting services; Electronic Products and Instruments Division

Measurement, testing, testing, and inspection; software design, development, and application; self-operated and agency import and export business of various commodities and technologies

Research on electronic information system technology; public safety information system, intelligent transportation CLP Information System, smart city management information system and electronic information system design 71 2018 100,000.00

Co., Ltd. planning, research and development, sales and related technical consulting and technical services; application software development; information system equipment development and production; shelter development and sales; software

1-1-69

China Electronics Cosi Technology Co., Ltd. Prospectus

Year of establishment Registered capital/start-up

Serial number Company name Main business

Unit (year) Capital (10,000 yuan)

Software testing and evaluation; self-owned house leasing, self-operated and agent import and export business of various commodities and technologies. (Projects that require approval according to law can only be carried out with the approval of relevant departments) General projects: information system operation and maintenance services; special equipment repair (except for projects that require approval according to law, business activities can be carried out independently with a business license in accordance with the law)

R&D, design, production, sales and technical services of semiconductor materials, integrated circuits, chips, electronic devices, modules and components, systems, and electronic products; China Electronics Guoji Southern Group has

72 2018 50,000.00 Semiconductor manufacturing and packaging; software system integration and services; Building Intelligence Co., Ltd.

Design and construction of projects; testing of electronic products and instruments; self-operated and agency import and export business of various commodities and technologies

CETC Semiconductor Materials includes electronic materials, semiconductor manufacturing and sales; electronic material technology development and technology 73 2019 100,000.00

Co., Ltd. Technical consulting, technology transfer, technical services

Technology development, technology transfer, technical consulting, technical services, and technology promotion; prototype manufacturing of vacuum electronic device products (including pilot testing, R&D, and design); CETC Vacuum Electronic Technology Sales of electronic products and electromechanical equipment; import and export of goods; import and export of technology; 74 2019 50,000.00

Co., Ltd. Import and export agency; commercial building rental; information system integration services; software development; environmental protection monitoring; water resources management; water environment protection consulting services

Undertake the installation (undertake repair and test) of electric power facilities; technical development of optoelectronic devices, electronic devices, related machines and systems; sales of electronic components, mechanical equipment, computers, software and auxiliary equipment; manufacturing of optoelectronic materials, infrared materials, laser materials, optical fiber materials, nonlinear optics and other optoelectronic materials and related devices (except for high pollution and high environmental risk production and manufacturing links); manufacturing of electronic components and electromechanical component equipment (high pollution, high environment) China Electronics Optoelectronics Technology Co., Ltd. Except for production and manufacturing links with environmental risks); manufacturing optical instruments (high pollution, 75 2019 50,000.00

Company (excluding production and manufacturing links with high environmental risks); manufacturing of smart vehicle equipment; manufacturing of sensitive components and sensors (except for manufacturing links with high pollution and high environmental risks); software development; computer information system integration services; engineering and technology research and experimental development; testing services; installation of safety technology prevention products, electronic products, mechanical equipment; construction general contracting, professional contracting, labor subcontracting; import and export of goods, technology import and export, import and export agency; design, production, agency, and advertising

Research and development, sales, service, production and processing of robots, system integration and core components, micro motors and components, gear reducers, controllers, switching power supplies and special equipment, electronic products (production and processing are limited to branches), China Electronics Robot Co., Ltd. exhibition display services, robots and core components, micro motors and components 76 2019 30,000.00

The company is engaged in measurement, testing, inspection and detection, and is engaged in technology development, technology consulting, technology transfer, technology training, technology services, technology contracting, technology intermediary, technology equity investment, self-owned equipment leasing, real estate leasing operations, publication management, electronic information system integration and services in the professional fields of robots and core components, micro motors and components; integrated electronic information systems, communication systems and equipment, navigation systems and equipment, measurement and control systems and equipment; calculation 77 China Electronics Tianao Co., Ltd. 2019 100,000.00 Computer software development; software testing and evaluation; manufacturing and sales of electronic components and assemblies; sales of electronic machinery products; foreign trade operations engaged in the import and export of goods and technology; house leasing

Technology development, technology promotion, technology transfer, technical consulting, technical services; software development; sales of electronic products, electronic components, instrumentation, electronic special equipment, transportation equipment, communication equipment, radio and television equipment, computers, software and auxiliary equipment; computer system services, data processing China Electronics Technology Co., Ltd.

78 2020 50,000.00 Services; professional design services; engineering management services, engineering survey, planning companies

Management services; project supervision services; engineering design; seismic services; marine services; environmental monitoring services; certification services; rental of stage equipment; conference services; organization of exhibitions and display activities; import and export of goods, import and export of technology, import and export agency

Defense system technology development, technology transfer, technical consulting, and technical services; China Electronics Technology New Defense Technology Co., Ltd.

79 2020 50,000.00 Electronic information system integration and services, testing and evaluation; Electronic Information Engineering Co., Ltd.

Construction and general contracting (operating with valid qualifications); integrated electronic information system

1-1-70

China Electronics Cosi Technology Co., Ltd. Prospectus

Year of establishment Registered capital/start-up

Serial number Company name Main business

Unit (year) Capital (10,000 yuan)

R&D, production, sales, and technical consulting and technical services of systems, electromagnetic systems and equipment, laser equipment, microwave equipment, software, supporting equipment and components; engaged in R&D, production, sales, and operation services of systems and equipment in the fields of artificial intelligence, big data, communications, navigation, and remote sensing; R&D, production, sales, maintenance, and services of unmanned systems and new energy vehicles; mechanical product design, production, manufacturing, and repair; inspection and testing services; certification services; measurement services; import and export of goods; technology import and export; import and export agents; property management; car rental; house rental

Research and development, wholesale, retail, purchasing, consignment, exhibition and sales of communication equipment, special postal equipment, communication line equipment and maintenance spare parts, special electronic components for communication equipment, special motorcycles and parts for postal communication and other products produced by this system; import and export business; contracting of overseas mechanical and electrical industry projects and overseas China Putian Information Industry Group

80 1982 390,000.00 Domestic international bidding projects; surveying, consulting and design companies contracting the above overseas projects

Planning and supervision projects; contracting communication system projects; business-related equipment maintenance, technical consulting, technical services, and information services; car sales. Organize enterprises in the industry to go abroad to participate in and hold economic and trade exhibitions

Technology development and technical services; sales of communication equipment, electronic products, knitted textiles, clothing, building materials (not engaged in physical store operations), stationery, sporting goods, medical equipment Class II, mechanical equipment, software, household electrical appliances (except electronic products, clothing and other physical store sales); communication equipment 81 1992 55,000.00

Co., Ltd. Equipment maintenance; computer repair; software development; loading and unloading services, transportation agency services; warehousing services; conference services; hosting exhibitions and display activities; design, production, agency, and advertising; leasing office space; Internet information services

General items: communication equipment manufacturing; computer software, hardware and peripheral equipment manufacturing; electronic component manufacturing; technical services, technology development, technical consultation, technology exchange, technology transfer, technology promotion; software development; rail transit operation management system development; communication equipment sales; wholesale of computer software, hardware and auxiliary equipment; retail of computer software, hardware and auxiliary equipment; software sales; wholesale of electronic components; retail of electronic components; sales of metal materials; sales of railway transportation engineering machinery and components; rail transit special equipment, key 82 1996 98,000.00

Co., Ltd. System and component sales; information consulting services (excluding licensing information consulting services); parking lot services; non-residential real estate leasing; housing leasing; property management (except for projects that require approval in accordance with the law, independently carry out business activities with a business license in accordance with the law). Licensed projects: Category II value-added telecommunications business; various engineering construction activities; import and export of goods (projects that require approval according to law can only be carried out with the approval of relevant departments, and specific business projects are subject to the approval results)

General projects: tax services; market research (excluding foreign-related investigations); information consulting services (excluding licensing information consulting services); bankruptcy liquidation services China Electronics Technology Audit Services Co., Ltd.

83 2022 5,000.00; enterprise management consulting; financial fund project budget performance evaluation services. company

(Except for projects that require approval according to law, business activities can be carried out independently with a business license in accordance with the law) Licensed projects: Certified Public Accountant business

General projects: technical services, technology development, technical consulting, technical exchanges, CETC third-generation semiconductor technology transfer, and technology promotion. (Except for projects that require approval according to law, with 84 2022 10,000.00

Technology Co., Ltd. has a business license to independently carry out business activities in accordance with the law) (not allowed to engage in business activities that are prohibited or restricted by national and city industrial policies)

General projects: engineering and technology research and experimental development; information consulting services (excluding licensing information consulting services); information technology consulting services; technical services, technology development, technical consulting, technology exchange, technology transfer, technology promotion; information system integration services; information system operation and maintenance services; CETC development planning research

85 2022 5,000.00 Software development; market research (excluding foreign-related investigations); data processing services; Institute Co., Ltd.

Data processing and storage support services; educational consulting services (excluding education and training activities involving licensing approval); outsourcing of archival services; conference and exhibition services; graphic design and production; photography and video production services; retail of arts and crafts and collectibles (except ivory and its products); mechanical and electrical equipment

1-1-71

China Electronics Cosi Technology Co., Ltd. Prospectus

Year of establishment Registered capital/start-up

Serial number Company name Main business

Unit (year) Capital (10,000 yuan)

Ready for sale. (Except for projects that require approval according to law, business activities can be carried out independently with a business license and in accordance with the law) (You are not allowed to engage in business activities that are prohibited or restricted by national and municipal industrial policies)

China Hualu Group Co., Ltd. operates advertising business; property management; house rental; mechanical and electronic product development 86 2000 183,600.83

Development, production and sales; import and export of goods and technology; data processing and storage services; information system integration and Internet of Things technical services; Internet information services (except for projects that require approval according to law, business activities can be carried out independently with a business license and in accordance with the law)

Whether the shares of the issuer directly or indirectly held by the controlling shareholders and actual controllers have been pledged, frozen, or involved in litigation disputes, and the reasons for the above situations and their possible impact on the issuer.

As of the signing date of this prospectus, the company's shares held directly and indirectly by the company's controlling shareholders and actual controllers have not been pledged, frozen, or have any litigation disputes.

Whether the controlling shareholder or actual controller committed any criminal offenses of corruption, bribery, misappropriation of property, or undermining the order of the socialist market economy during the reporting period; whether there was any fraudulent issuance, illegal disclosure of major information, or other major illegal acts involving national security, public safety, ecological security, production safety, public health and safety, etc.

During the reporting period, the issuer’s controlling shareholders and actual controllers did not engage in corruption, bribery, misappropriation of property, misappropriation of property, or criminal offenses that undermined the socialist market economic order. There were no fraudulent issuances, illegal disclosure of major information, or other major illegal acts involving national security, public security, ecological security, production safety, public health and safety, etc.

(2) Pledge, freezing or litigation disputes over the issuer’s shares held by the controlling shareholder or actual controller

As of the signing date of this prospectus, the company's controlling shareholders and actual controllers directly or indirectly hold no pledge, freeze or litigation disputes in the issuer's shares.

(3) Basic information on other major shareholders holding more than 5% of the issuer’s shares

In addition to the company's controlling shareholder and actual controller China Electronics Technology, No. 41 Institute, Electronics Technology Investment, and Siyi Development hold more than 5% of the company's shares.

1-1-72

China Electronics Cosi Technology Co., Ltd. Prospectus

Forty-one

As of the signing date of this prospectus, Forty-One holds 10.00% of the company's shares. The basic situation of the forty-one institutions is as follows:

Unit Name China Electronics Technology Group Corporation No. 41 Research Institute

Legal representative Xu Jianhua

Residence: No. 726, Changzheng Road, Bengbu, Anhui Province

Unit type Public institution legal person

Start-up capital 105.55 million yuan

Unified social credit code 121000004852223643

Date of establishment: March 6, 1968

Research and development of electronic measuring instruments, testing equipment and electronic application products, electronic technology development and business scope applications, electronic measurement and testing services, related import and export business undertaking, related professional training and technical consulting

The 41st Institute is mainly engaged in research on basic and cutting-edge technologies of electronic measurement, main business of measurement and detection technology, and cooperation with issuers.

Technical research and services, etc. For its relationship with the issuer’s main business, please refer to the business relationship in this prospectus.

"Section 8 Corporate Governance and Independence" "6. Horizontal Competition"

As of the signing date of this prospectus, the shareholding structure of Forty-One is as follows:

Serial number Shareholder name Start-up capital (10,000 yuan) Capital contribution ratio

1 China Electronics Technology 10,555.00 100.00%

Total 10,555.00 100.00%

Electronic Technology Investment

As of the signing date of this prospectus, Dianke Investment holds 8.72% of the company's equity. The basic situation of Dianke Investment is as follows:

Company name CETC Investment Holdings Co., Ltd.

Legal representative Jin Yanbin

Residence: 7th Floor, Building 2, No. 30 Jinfu Road, Shijingshan District, Beijing

Enterprise type limited liability company (sole proprietorship of legal person)

Registered capital 8 million yuan

Unified social credit code 9111000071783888XG

Date of establishment April 18, 2014

Investment management, equity investment, investment consulting; property brokerage. (Market entities independently select business projects and carry out business activities in accordance with the law; projects that require approval in accordance with the law shall be subject to the business scope of the relevant departments.

After approval, business activities shall be carried out in accordance with the approved contents; business activities prohibited or restricted by national and municipal industrial policies shall not be allowed)

1-1-73

China Electronics Cosi Technology Co., Ltd. Prospectus

Main business and issuer

Dianke Investment is mainly engaged in investment management business and has no direct relationship with the main business of Dianke Siyi.

As of the signing date of this prospectus, the equity structure of Dianke Investment is as follows:

No. Name of shareholder Capital contribution (10,000 yuan) Capital contribution ratio 1 China Electronics Technology 800,000.00 100.00%

Total 800,000.00 100.00%

Development of Siyi

As of the signing date of this prospectus, Siyi Development holds 7.95% of the company's equity. The basic situation of Siyi’s development is as follows:

Company name Bengbu Siyi Development Enterprise Management Center (Limited Partnership)

Executive Partner Bengbu Siyi No. 1 Enterprise Management Co., Ltd.

Main business location: Research Building, No. 726 Huaguang Avenue, Bengbu City (Room 305, 3rd Floor)

Business Type Limited Partnership

Amount of investment RMB 161,813,653

Unified social credit code 91340300MA2UGQ0F9H

Date of establishment January 22, 2020

Enterprise management services (excluding asset management). (Projects that require approval according to law shall be subject to the relevant business scope.

Business activities can only be carried out after approval from relevant departments)

Main business and relationship with the issuer. Siyi has developed into an employee shareholding platform of Dianke Siyi. Apart from equity investment in the issuer, it has no business relationship and operates other businesses.

As of the signing date of this prospectus, the partners and capital contributions of Siyi Development are as follows:

Serial number Partner name Amount of capital subscribed (10,000 yuan) Capital contribution ratio Partner type 1 Siyi No. 1 0.1000 0.0006% General partner 2 Siyi Co-creation 1,751.2526 10.8227% Limited partner 3 Siyi win-win 1,711.6009 10.5776% Limited partner 4 Siyi Sharing 1,766.5596 10.9172% Limited partner 5 Siyi Gongxing 1,791.4043 11.0708% Limited partner 6 Siyi Gongjian 1,736.7451 10.7330% Limited partner 7 Siyi Gongsheng 1,771.5272 10.9479% Limited partner 8 Siyi Gongyi 1,774.0126 10.9633% Limited partner 9 Siyi Gongfu 1,913.1445 11.8231% Limited partner 10 Siyi Gongyi 1,965.0185 12.1437% Limited partner

Total 16,181.3653 100.0000% -

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China Electronics Cosi Technology Co., Ltd. Prospectus

Siyi Development's upper-level platforms Siyi Co-Creation, Siyi Win-win, Siyi Sharing, Siyi Gongxing, Siyi Co-construction, Siyi Gongsheng, Siyi Gongli, Siyi Gongwei, Siyi Gongyi, Siyi Gongyue, Siyi Gongjiu and Siyi Gonghui are the company's indirect employee shareholding platforms, and the issuer's shares are indirectly held through Siyi Development. Siyi No. 1 is the management company of the employee stock ownership platform.

As of the signing date of this prospectus, the situation of each indirect employee shareholding platform is as follows:

(1) Siyi No.1

As of the signing date of this prospectus, Siyi No. 1 is the general partner and executive partner of Siyi No. 1. Xu Jun is a shareholder of Siyi No. 1 with a capital contribution of RMB 9,999. Zou Pengwen is the director and legal representative of Siyi No. 1.

(2) Siyi co-creation

As of the signing date of this prospectus, the partners and capital contributions of Siyi Co-Creation are as follows:

Unit: RMB 10,000 Serial number Partner name Type of partner Amount of capital contribution Capital contribution ratio Position 1 Siyi No. 1 General partner 0.1000 0.0057% - 2 Siyi Gonghui Limited partner 161.0909 9.1986% - 3 Wang Feng Limited partner 59.6268 3.4048% Scientific researcher 4 Du Huiwen Limited partner 59.6268 3.4048% Scientific researcher 5 Li Shubiao Limited partner 59.6268 3.4048% Scientific researcher 6 Liang Shengli Limited partner 39.7517 2.2699% Scientific researcher 7 Liu Liang Limited partner 59.6268 3.4048% Scientific researcher 8 Du Nianwen Limited partners 59.6268 3.4048% Scientific researchers 9 Leng Peng Limited partners 59.6268 3.4048% Scientific researchers 10 Liu Qingsong Limited partner 39.7517 2.2699% Scientific researchers 11 Wei Liancheng Limited partners 39.7517 2.2699% Scientific researchers 12 Wang Zunfeng Limited partners 39.7517 2.2699% Scientific researchers 13 Yang Baoguo Limited partners 39.7517 2.2699% Scientific researchers 14 Tai Xin Limited partners 39.7517 2.2699% Scientific researchers 15 Yuan Guoping Limited partner 39.7517 2.2699% Scientific researchers 16 Wang Peng Limited partner 39.7517 2.2699% Scientific researchers 17 Zhou Qinshan Limited partner 39.7517 2.2699% Scientific researchers 18 Li Jinshan Limited partner 39.7517 2.2699% Scientific researchers

1-1-75

China Electronics Cosi Technology Co., Ltd. Prospectus

No. Name of partner Partner type Amount of capital contribution Capital contribution ratio 19 Zhang Qinglong Limited partner 39.7517 2.2699% Scientific researcher 20 Yang Dongying Limited partner 39.7517 2.2699% Scientific researcher 21 Zhu Wei Limited partner 39.7517 2.2699% Scientific researcher 22 Lu Xuexin Limited partners 24.8447 1.4187% Manufacturing personnel 23 Zhan Yongwei Limited partner 39.7517 2.2699% Scientific researchers 24 Mao Liming Limited partner 39.7517 2.2699% Scientific researchers 25 Li Xiaojun Limited partner 39.7517 2.2699% Scientific researchers 26 Chen Anjun Limited Partner 39.7517 2.2699% Scientific Research Staff 27 Xue Long Limited Partner 39.7517 2.2699% Scientific Research Staff 28 Zhang Shifeng Limited Partner 39.7517 2.2699% Sales and Sales Support Staff 29 Zhao Yongzhi Limited Partner 39.7517 2.2699% Scientific researchers 30 Bai Yirong Limited partner 39.7517 2.2699% Scientific researchers 31 Qi Guoqing Limited partner 24.8447 1.4187% Management staff 32 Xu Mingzhe Limited partner 24.8447 1.4187% Scientific researchers 33 Huang Chunlei Limited partner 24.8447 1.4187% Manufacturing personnel 34 Fan Jiwei Limited partner 24.8447 1.4187% Scientific researchers 35 Xu Chunqing Limited partner 24.8447 1.4187% Scientific researchers 36 Li Zenghong Limited partner 24.8447 1.4187% Scientific researchers 37 Xue Xiaonan Limited partner 24.8447 1.4187% Sales and sales support staff 38 Duan Fei Limited partner 24.8447 1.4187% Scientific researcher 39 Peng Huaren Limited partner 24.8447 1.4187% Scientific researcher 40 Zhou Shuai Limited partner 24.8447 1.4187% Scientific researcher 41 Zhuang Zhiyuan Limited partners 24.8447 1.4187% Scientific researchers 42 Guo Yanan Limited partners 24.8447 1.4187% Scientific researchers 43 Zhang Feng Limited partner 24.8447 1.4187% Scientific researchers 44 Li Qiang Limited partners 24.8447 1.4187% Scientific researchers 45 Li Wei Limited partners 24.8447 1.4187% Scientific researchers

Total 1,751.2526 100.0000% -

(3) Thinking and win-win

As of the signing date of this prospectus, Siyi Win-win’s partners and their capital contributions are as follows:

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China Electronics Cosi Technology Co., Ltd. Prospectus

Unit: RMB 10,000 Serial number Partner name Type of partner Amount of capital contribution Capital contribution ratio Position 1 Siyi No. 1 General partner 0.1000 0.0058% - 2 Siyi Gongzhu Limited partner 161.1909 9.4176% - 3 Zhu Weifeng Limited partner 59.6268 3.4837% Scientific researcher 4 Deng Jianqin Limited partner 59.6268 3.4837% Research staff 5 Zhang Shu Limited partner 59.6268 3.4837% Research staff 6 Wen Chunhua Limited partner 39.7517 2.3225% Management staff 7 Ning Yuemin Limited partner 59.6268 3.4837% Research staff 8 Wu Qiang Limited partner 39.7517 2.3225% Scientific researchers 9 Duan Xidong Limited partner 39.7517 2.3225% Scientific researchers 10 Fan Guoqing Limited partner 59.6268 3.4837% Scientific researchers 11 Xiong Weihua Limited partner 39.7517 2.3225% Management personnel 12 Siyi Gongyue Limited partner 39.7517 2.3225% - 13 Song Qing'e Limited partner 59.6268 3.4837% Scientific researcher 14 Li Qiliang Limited partner 39.7517 2.3225% Scientific researcher 15 Sun Jiawen Limited partner 39.7517 2.3225% Scientific researcher 16 Fu Yongjian Limited Partner 39.7517 2.3225% Security and other personnel 17 Zheng Wenfeng Limited Partner 24.8447 1.4515% Scientific Research Staff 18 Liang Anhui Limited Partner 39.7517 2.3225% Scientific Research Staff 19 Sun Guoquan Limited Partner 39.7517 2.3225% Scientific researchers 20 Cheng Shoumei, limited partner 39.7517 2.3225% Scientific researchers 21 Li Zhongpu, limited partner 39.7517 2.3225% Scientific researchers 22 Yin Jun Limited partner 39.7517 2.3225% Scientific researchers 23 Bu Xiangrui Limited partner 24.8447 1.4515% Scientific researchers 24 Zhang Zhigang Limited partner 39.7517 2.3225% Scientific researchers 25 Zhou Lidong Limited partner 39.7517 2.3225% Scientific researchers 26 Liu Baodong Limited partner 39.7517 2.3225% Scientific researchers 27 Li Dengbao Limited partner 39.7517 2.3225% Scientific researchers 28 Guo Yongrui Limited partner 39.7517 2.3225% Scientific researchers 29 Chen Xuebin Limited partner 24.8447 1.4515% Manufacturing personnel 30 Dai Xiu Limited partner 39.7517 2.3225% Scientific researchers 31 Shi Guosheng Limited partner 39.7517 2.3225% Security and other personnel 32 Zhang Shengzhou Limited Partner 24.8447 1.4515% Scientific research personnel

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China Electronics Cosi Technology Co., Ltd. Prospectus

Serial number Partner name Partner type Capital contribution amount Capital contribution ratio Position 33 Zheng Rusong Limited partner 24.8447 1.4515% Manufacturing staff 34 Wang Guoqing Limited partner 24.8447 1.4515% Manufacturing staff 35 He Tongyun Limited partner 24.8447 1.4515% Manufacturing staff 36 Jia Dinghong Limited Partner 24.8447 1.4515% Scientific Research Staff 37 Wang Jialu Limited Partner 24.8447 1.4515% Scientific Research Staff 38 Yuan Zhenguo Limited Partner 24.8447 1.4515% Manufacturing Staff 39 Chen Gang Limited Partner 24.8447 1.4515% Manufacturing personnel 40 Chen Zhuo Limited partner 24.8447 1.4515% Sales and sales support personnel 41 Wang Jinlong Limited partner 24.8447 1.4515% Scientific researchers 42 Xu Xiaolong Limited partner 24.8447 1.4515% Scientific researchers 43 Shi Xianbao Limited partner 24.8447 1.4515% Scientific Research Personnel 44 Yang Biao Limited Partner 24.8447 1.4515% Scientific Research Personnel

Total 1,711.6009 100.0000% -

(4) Siyi Sharing

As of the signing date of this prospectus, the partners and capital contributions of Siyi Sharing are as follows:

Unit: RMB 10,000 Serial number Partner name Partner type Amount of capital contribution Capital contribution ratio Position 1 Siyi No. 1 General partner 0.1000 0.0057% -

2 Siyi Gonghui Limited Partner 201.2426 11.3917% -

3 Han Jingwei Limited Partner 59.6268 3.3753% Management 4 Siyi Gongyue Limited Partner 59.6268 3.3753% -

5 Jiao Yongwei Limited partner 39.7517 2.2502% Manufacturing personnel 6 Wang Bin Limited partner 59.6268 3.3753% Scientific researchers 7 Cao Zhiying Limited partner 59.6268 3.3753% Scientific researchers 8 Zuo Yongfeng Limited partner 59.6268 3.3753% Scientific Research Personnel 9 Sun Guiqing Limited Partner 39.7517 2.2502% Scientific Research Personnel 10 Siyi Gongzhu Limited Partner 39.7517 2.2502% -

11 Tang Zongkui Limited Partner 39.7517 2.2502% Production and Manufacturing Personnel 12 Zhang Zhi Limited Partner 59.6268 3.3753% Scientific Research Personnel 13 Sun Yangping Limited Partner 39.7517 2.2502% Production and Manufacturing Personnel 14 Zhang Jiangyue Limited Partner 39.7517 2.2502% Procurement logistics personnel 15 Dang Jisheng Limited partner 39.7517 2.2502% Security and other personnel

1-1-78

China Electronics Cosi Technology Co., Ltd. Prospectus

Serial number Partner name Partner type Amount of capital contribution Capital contribution ratio Position 16 Liu Hui Limited partner 39.7517 2.2502% Security and other personnel 17 Xue Yong Limited partner 39.7517 2.2502% Management personnel 18 Zhao Xizhi Limited partner 39.7517 2.2502% Manufacturing personnel 19 Dou Xueru Limited Partner 39.7517 2.2502% Production and Manufacturing Personnel 20 Zhang Wei Limited Partner 39.7517 2.2502% Scientific Research Personnel 21 Cao Gantao Limited Partner 39.7517 2.2502% Production and Manufacturing Personnel 22 Lu Pengyao Limited Partner 39.7517 2.2502% Manufacturing personnel 23 Guan Hong Limited partner 39.7517 2.2502% Management personnel 24 Ji Baoping Limited partner 39.7517 2.2502% Scientific research personnel 25 Huang Changshe Limited partner 39.7517 2.2502% Procurement and logistics personnel 26 Chen Zhenlin Limited partner 39.7517 2.2502% Scientific researchers 27 Zhang Yonghu Limited partner 39.7517 2.2502% Scientific researchers 28 Li Mingtai Limited partner 39.7517 2.2502% Scientific researchers 29 Yu Bin Limited partner 24.8447 1.4064% Scientific researchers 30 Zeng Qingjun Limited partner 24.8447 1.4064% Scientific researchers 31 Zhan Yun Limited partner 39.7517 2.2502% Scientific researchers 32 Cheng Hua Limited partner 24.8447 1.4064% Scientific researchers 33 Sun Yanping Limited partner 24.8447 1.4064% Scientific researchers 34 Sun Li Limited partner 24.8447 1.4064% Manufacturing personnel 35 Shi Yating, limited partner 24.8447 1.4064% Manufacturing personnel 36 Zhu Changsheng, limited partner 24.8447 1.4064% Manufacturing personnel 37 Li Wenbo Limited partner 24.8447 1.4064% Management personnel 38 Hu Peijun Limited partners 24.8447 1.4064% Scientific researchers 39 Wang Guojie Limited partner 24.8447 1.4064% Scientific researchers 40 Zhao Bingyu Limited partner 24.8447 1.4064% Scientific researchers 41 Ma Ziteng Limited partner 24.8447 1.4064% Manufacturing personnel 42 Song Zhiming Limited Partner 24.8447 1.4064% Scientific Research Staff 43 An Shuaiwei Limited Partner 24.8447 1.4064% Scientific Research Staff 44 Song Lusha Limited Partner 24.8447 1.4064% Financial Staff

Total 1,766.5596 100.0000% -

(5) Thoughts and morals flourish together

As of the signing date of this prospectus, the partners and capital contributions of Siyi Gongxing are as follows:

1-1-79

China Electronics Cosi Technology Co., Ltd. Prospectus

Unit: RMB 10,000 Serial number Partner name Type of partner Amount of capital contribution Capital contribution ratio Position 1 Siyi No. 1 General partner 0.1000 0.0056% - 2 Siyi Gonghui Limited partner 161.4909 9.0148% - 3 Guo Rongbin Limited partner 59.6268 3.3285% Sales and sales support staff 4 Wang Yahai Limited Partner 59.6268 3.3285% Scientific Research Personnel 5 Song Bin Limited Partner 59.6268 3.3285% Scientific Research Personnel 6 Xia Lei Limited Partner 59.6268 3.3285% Scientific Research Personnel 7 Zhao Xiucai Limited Partner 59.6268 3.3285% Scientific Research Personnel 8 Guo Min Limited Partner 59.6268 3.3285% Scientific Research Staff 9 Wu Jie Limited Partner 39.7517 2.2190% Scientific Research Staff 10 Zhang Guangshan Limited Partner 39.7517 2.2190% Management Staff 11 Chang Qinggong Limited Partner 39.7517 2.2190% Scientific Research Staff 12 Zhou Hui Limited partners 39.7517 2.2190% Scientific researchers 13 Ding Zhizhao Limited partner 39.7517 2.2190% Scientific researchers 14 Li Long Limited partner 39.7517 2.2190% Scientific researchers 15 Song Zhigang Limited partner 39.7517 2.2190% Scientific researchers 16 Zhao Rui Limited Partner 39.7517 2.2190% Scientific Research Personnel 17 Zhang Haiqing Limited Partner 39.7517 2.2190% Scientific Research Personnel 18 Wang Zhongfeng Limited Partner 39.7517 2.2190% Scientific Research Personnel 19 Tang Jingshuang Limited Partner 39.7517 2.2190% Scientific Research Personnel 20 Li Zhongqun Limited Partner 39.7517 2.2190% Scientific Research Personnel 21 Liu Yi Limited Partner 39.7517 2.2190% Scientific Research Personnel 22 Li Zhi Limited Partner 24.8447 1.3869% Scientific Research Personnel 23 Yang Huaxiang Limited Partner 39.7517 2.2190% Scientific Research Personnel 24 Siyi Gongyue Limited Partner 79.5034 4.4380% - 25 Yang Yisheng Limited Partner 39.7517 2.2190% Sales and Sales Support Staff 26 Liu Mingjun Limited Partner 39.7517 2.2190% Scientific Research Staff 27 Chen Pengfei Limited Partner 39.7517 2.2190% Scientific researchers 28 Liu Wei Limited partner 39.7517 2.2190% Management staff 29 Hu Baogang Limited partner 39.7517 2.2190% Scientific researchers 30 Ji Hanguo Limited partner 39.7517 2.2190% Management staff 31 Yan Tao Limited partner 24.8447 1.3869% Scientific researchers 32 Wang Jianzhong Limited Partner 24.8447 1.3869% Scientific researchers

1-1-80

China Electronics Cosi Technology Co., Ltd. Prospectus

Serial number Partner name Partner type Amount of capital contribution Capital contribution ratio Position 33 Zhang Jibin Limited partner 24.8447 1.3869% Scientific researcher 34 Qiu Tianhua Limited partner 24.8447 1.3869% Scientific researcher 35 Liu Lei Limited partner 24.8447 1.3869% Scientific researchers 36 Fu Cunwen Limited partner 24.8447 1.3869% Scientific researchers 37 Chen Qinglei Limited partner 24.8447 1.3869% Scientific researchers 38 Hu Dahai Limited partner 24.8447 1.3869% Scientific researchers 39 Fang Kaiqing Limited partner 24.8447 1.3869% Production and Purchasing Personnel 40 Li Weiliang Limited Partner 24.8447 1.3869% Scientific Research Personnel 41 Zhao Jinpeng Limited Partner 24.8447 1.3869% Scientific Research Personnel 42 Tan Xu Limited Partner 24.8447 1.3869% Production and Purchasing Personnel 43 Bai Liang Limited Partner 24.8447 1.3869% Scientific researchers 44 Zhou Yang Limited partner 24.8447 1.3869% Scientific researchers 45 Xue Peixiang Limited partner 24.8447 1.3869% Scientific researchers

Total 1,791.4043 100.0000% -

(6) Siyi co-construction

As of the signing date of this prospectus, the partners and capital contributions of Siyi Co-construction are as follows:

Unit: RMB 10,000 Serial number Partner name Type of partner Amount of capital contribution Capital contribution ratio Position 1 Siyi No. 1 General partner 0.1000 0.0058% - 2 Guo Liqiang Limited partner 111.8013 6.4374% Management staff 3 Fan Xiaoteng Limited partner 59.6268 3.4332% Scientific research staff 4 Siyi Gonghui Limited Partner 59.6268 3.4332% - 5 Xiang Changbo Limited Partner 59.6268 3.4332% - 6 Dong Jiantao Limited Partner 39.7517 2.2889% Sales and Sales Support Staff 7 Zhang Chao Limited Partner 59.6268 3.4332% Scientific Researcher 8 Hu Yaping Limited partners 59.6268 3.4332% Scientific researchers 9 Xu Dawang Limited partners 59.6268 3.4332% Scientific researchers 10 Niu Dasheng Limited partner 39.7517 2.2889% Scientific researchers 11 Gu Jun Limited partner 59.6268 3.4332% Scientific researchers 12 Hu Xiaolan Limited partners 39.7517 2.2889% Scientific researchers 13 Su Yonghui Limited partner 39.7517 2.2889% Scientific researchers 14 Li Bolin Limited partner 39.7517 2.2889% Scientific researchers

1-1-81

China Electronics Cosi Technology Co., Ltd. Prospectus

Serial number Partner name Type of partner Amount of capital contribution Capital contribution ratio Position held

15 Zhu Wei Limited Partner 39.7517 2.2889% Scientific Research Staff

16 Jiang Shangjun Limited Partner 39.7517 2.2889% Sales and sales support staff 17 Jiang Weining Limited Partner 39.7517 2.2889% Management staff

18 Liu Jingkun Limited Partner 39.7517 2.2889% Scientific Research Personnel

19 Sun Pengde Limited Partner 39.7517 2.2889% Scientific Research Staff

20 Sheng Zhenqi Limited Partner 39.7517 2.2889% Management

21 Zhao Hao Limited Partner 39.7517 2.2889% Sales and sales support staff 22 Zhang Peiye Limited Partner 39.7517 2.2889% Management staff

23 Zhu Linlin Limited Partner 24.8447 1.4305% Scientific Research Staff

24 Sui Wei Limited Partner 39.7517 2.2889% Management

25 Sun Hongjun Limited Partner 39.7517 2.2889% Scientific Research Staff

26 Zhang Quanjin Limited Partner 39.7517 2.2889% Management

27 Qi Yanjun Limited Partner 24.8447 1.4305% Scientific Researcher

28 Zhou Zhaoyun Limited Partner 24.8447 1.4305% Sales and Sales Support Staff 29 Chen Long Limited Partner 24.8447 1.4305% Sales and Sales Support Staff 30 Zhang Bin Limited Partner 24.8447 1.4305% Sales and Sales Support Staff 31 Huang Lei Limited Partner 24.8447 1.4305% Sales and sales support staff 32 Xiao Jiangtao Limited Partner 39.7517 2.2889% Scientific researchers

33 Jiang Huanbin Limited Partner 24.8447 1.4305% Sales and Sales Support Staff 34 Fang Peng Limited Partner 39.7517 2.2889% Scientific Research Staff

35 Liu Junzhi Limited Partner 39.7517 2.2889% Scientific Research Staff

36 Wei Liwei Limited Partner 24.8447 1.4305% Sales and Sales Support Staff 37 Wang Yan Limited Partner 24.8447 1.4305% Sales and Sales Support Staff 38 Sun Kai Limited Partner 24.8447 1.4305% Scientific Research Staff

39 Xiao Tangliang Limited Partner 24.8447 1.4305% Scientific Researcher

40 Wang Xing Limited Partner 24.8447 1.4305% Scientific Research Staff

41 Ma Chunxi Limited Partner 24.8447 1.4305% Scientific Research Staff

42 Pei Guangchao Limited Partner 24.8447 1.4305% Scientific Researcher

43 Zheng Huikang Limited Partner 24.8447 1.4305% Scientific Researcher

44 Siyi Gongyue Limited Partner 39.7517 2.2889% -

45 Siyi Gongzhu Limited Partner 39.7517 2.2889% -

Total 1,736.7451 100.0000% -

1-1-82

China Electronics Cosi Technology Co., Ltd. Prospectus

(7) Thoughts and rituals flourish together

As of the signing date of this prospectus, the partners and capital contributions of Siyi Gongsheng are as follows:

Unit: RMB 10,000 Serial number Partner name Type of partner Amount of capital contribution Capital contribution ratio Position 1 Siyi No. 1 General partner 0.1000 0.0056% - 2 Chen Kunfeng Limited partner 111.8013 6.3110% Management staff 3 Jiang Yan Limited partner 59.6268 3.3658% Procurement and logistics personnel 4 Zhan Jian Limited partners 59.6268 3.3658% Management staff 5 Yan Jisong Limited partner 59.6268 3.3658% Scientific researchers 6 Han Shunli Limited partner 59.6268 3.3658% Management staff 7 Liu Yu Limited partner 59.6268 3.3658% Procurement and logistics staff 8 Sun Hong Limited partner 59.6268 3.3658% Scientific researchers 9 Zhang Zhihui Limited partner 59.6268 3.3658% Scientific researchers 10 Chen Yingbing Limited partner 39.7517 2.2439% Scientific researchers 11 Liu Hongqing Limited partner 39.7517 2.2439% Scientific researchers 12 Yang Jiangtao Limited partner 39.7517 2.2439% Scientific researchers 13 Zhu Weiguo Limited partner 39.7517 2.2439% Scientific researchers 14 Liu Zhiming Limited partner 39.7517 2.2439% Scientific researchers 15 Li Xiaohui Limited partner 39.7517 2.2439% Scientific researchers 16 Xu Yuhua Limited partners 39.7517 2.2439% Scientific researchers 17 Jiang Fubin Limited partners 39.7517 2.2439% Scientific researchers 18 Zhang Ning Limited partner 39.7517 2.2439% Scientific researchers 19 Zhu Xuebo Limited partner 39.7517 2.2439% Scientific researchers 20 Liu Jiaqing Limited partners 39.7517 2.2439% Scientific researchers 21 Qiao Hongzhi Limited partner 39.7517 2.2439% Scientific researchers 22 Shao Chenghua Limited partner 39.7517 2.2439% Scientific researchers 23 Wu Bo Limited partner 39.7517 2.2439% Scientific researchers 24 Zheng Hongyi Limited Partner 39.7517 2.2439% Scientific Research Staff 25 Li Zhuoming Limited Partner 39.7517 2.2439% Scientific Research Staff 26 Zhang Wendong Limited Partner 39.7517 2.2439% Scientific Research Staff 27 Wang Panwei Limited Partner 39.7517 2.2439% Scientific researchers 28 Zou Fangning Limited partner 39.7517 2.2439% Scientific researchers 29 He Wen’an Limited partner 39.7517 2.2439% Scientific researchers

1-1-83

China Electronics Cosi Technology Co., Ltd. Prospectus

Serial number Partner name Partner type Amount of capital subscribed Capital contribution ratio Position 30 Nie Jianhua Limited partner 24.8447 1.4024% Management staff 31 Cheng Huaqiang Limited partner 24.8447 1.4024% Sales and sales support staff 32 Siyi Gongzhu Limited partner 24.8447 1.4024% - 33 Liu Lei Limited Partner 24.8447 1.4024% Scientific Research Staff 34 Song Ping Limited Partner 24.8447 1.4024% Sales and Sales Support Staff 35 Bai Haiying Limited Partner 24.8447 1.4024% Sales and Sales Support Staff 36 Guo Tonghua Limited Partner 24.8447 1.4024% Scientific researchers 37 Lu Qiang, limited partner 24.8447 1.4024% Scientific researchers 38 Han Qiang, limited partner 24.8447 1.4024% Scientific researchers 39 Li Zhizeng Limited partner 24.8447 1.4024% Scientific researchers 40 Chu Yanfei Limited partner 24.8447 1.4024% Scientific researchers 41 Luo Yang Limited partner 24.8447 1.4024% Sales and sales support personnel 42 Duan Zhiqiang Limited partner 24.8447 1.4024% Scientific researchers 43 Siyi Gongyue Limited partner 124.2232 7.0122% -

Total 1,771.5272 100.0000% -

(8) Thoughts and common interests

As of the signing date of this prospectus, Siyi Gongli’s partners and their capital contributions are as follows:

Unit: RMB 10,000 Serial number Partner name Type of partner Capital contribution amount Capital contribution ratio Position 1 Siyi No. 1 General partner 0.1000 0.0056% - 2 Jiang Wanshun Limited partner 111.8013 6.3022% Scientific researcher 3 Liu Jinxian Limited partner 59.6268 3.3611% Management staff 4 Xu Yanfeng Limited partners 59.6268 3.3611% Research staff 5 Liu Junhong Limited partner 59.6268 3.3611% Management staff 6 Wang Gang Limited partner 59.6268 3.3611% Management staff 7 Dong Jigang Limited partner 39.7517 2.2408% Research staff 8 Qian Shixiang Limited partner 59.6268 3.3611% Management staff 9 Tong Lin Limited partner 39.7517 2.2408% Management staff 10 Zhao Suyu Limited partner 39.7517 2.2408% Sales and sales support staff 11 Wang Qi Limited partner 39.7517 2.2408% Scientific research staff 12 Han Xiaodong Limited partners 39.7517 2.2408% Management personnel13 Liu Hongchun Limited partners 39.7517 2.2408% Management personnel

1-1-84

China Electronics Cosi Technology Co., Ltd. Prospectus

Serial number Partner name Partner type Amount of capital contribution Capital contribution ratio Position 14 Li Jizhong Limited partner 39.7517 2.2408% Security and other personnel 15 Huang Zhoujun Limited partner 39.7517 2.2408% Management staff 16 Jing Tao Limited partner 39.7517 2.2408% Management staff 17 Zhao Lixin Limited partners 39.7517 2.2408% Procurement and logistics personnel 18 Jin Chunling Limited partners 39.7517 2.2408% Management personnel 19 Zhao Chengling Limited partners 39.7517 2.2408% Production and manufacturing personnel 20 Yu Yongshuang Limited partners 39.7517 2.2408% Sales and sales support personnel 21 Wang Xufei Limited partner 39.7517 2.2408% Management staff 22 Xu Zhongqi Limited partner 39.7517 2.2408% Manufacturing staff 23 Quan Zhike Limited partner 39.7517 2.2408% Management staff 24 Li Jianrui Limited partner 39.7517 2.2408% Sales and sales support staff 25 Yan Yali Limited partner 39.7517 2.2408% Scientific research staff 26 Ren Shuisheng Limited partner 39.7517 2.2408% Management staff 27 Fang Binghong Limited partner 24.8447 1.4005% Management staff 28 Wei Yan Limited partner 39.7517 2.2408% Manufacturing staff 29 Zhong Dengxin Limited partner 24.8447 1.4005% Manufacturing staff 30 Ma Xiumin Limited partner 24.8447 1.4005% Sales and sales support staff 31 Cheng Genfa Limited partner 59.6268 3.3611% Management staff 32 Gong Huijie Limited partner 24.8447 1.4005% Management staff 33 Zhang Xijun Limited partner 24.8447 1.4005% Management staff 34 Ning Zehong Limited partner 24.8447 1.4005% Management staff 35 Wang Ni Limited partner 24.8447 1.4005% Procurement and logistics staff 36 Dai Xiuli Limited partner 24.8447 1.4005% Financial staff 37 Wang Dong Limited partner 24.8447 1.4005% Management staff 38 Fu Tao Limited partner 24.8447 1.4005% Sales and sales support staff 39 Siyi Gongyue Limited partner 161.4907 9.1031% -

40 Siyi Gongzhu Limited Partner 99.3788 5.6019% -

Total 1,774.0126 100.0000% -

(9) Thinking and getting rich together

As of the signing date of this prospectus, the partners and capital contributions of Siyi Gongfu are as follows:

1-1-85

China Electronics Cosi Technology Co., Ltd. Prospectus

Unit: RMB 10,000 Serial number Partner name Type of partner Amount of capital contribution Capital contribution ratio Position 1 Siyi No. 1 General partner 0.1000 0.0052% - 2 Shi Xianfeng Limited partner 111.8013 5.8439% Management staff 3 Siyi Gonghui Limited partner 59.6268 3.1167% - 4 Wang Ruoxu Limited partners 59.6268 3.1167% Management personnel 5 Ling Yunzhi Limited partner 59.6268 3.1167% Scientific researchers 6 Huang Wu Limited partner 59.6268 3.1167% Scientific researchers 7 He Yongliang Limited partner 39.7517 2.0778% Scientific researchers 8 Yang Xiaoguang Limited partner 39.7517 2.0778% Scientific researchers 9 Zhang Yu Limited partner 59.6268 3.1167% Scientific researchers 10 Zhu Wenxing Limited partner 39.7517 2.0778% Scientific researchers 11 Zhu Ju Limited partner 39.7517 2.0778% Scientific researchers 12 Tie Kui Limited partner 39.7517 2.0778% Scientific researchers 13 Zhao Runnian Limited partner 39.7517 2.0778% Scientific researchers 14 Li Bin Limited partner 39.7517 2.0778% Scientific researchers 15 Wang Wenting Limited partner 39.7517 2.0778% Scientific researchers 16 Chen Lingui Limited partners 39.7517 2.0778% Sales and sales support staff 17 Sun Hao Limited partner 39.7517 2.0778% Sales and sales support staff 18 Qi Ruimin Limited partner 39.7517 2.0778% Scientific researchers 19 Zhang Jiliang Limited partner 39.7517 2.0778% Sales and sales support staff 20 Yu Zhiyong Limited partner 39.7517 2.0778% Scientific researchers 21 Mao Yichun Limited partner 39.7517 2.0778% Scientific researchers 22 Zhang Liming Limited partner 39.7517 2.0778% Scientific researchers 23 Cao Yu Limited partner 24.8447 1.2986% Manufacturing personnel 24 Chen Gang Limited partner 24.8447 1.2986% Sales and sales support personnel 25 Wang Jiajia Limited partner 39.7517 2.0778% Scientific researchers 26 Tao Changya Limited partner 39.7517 2.0778% Scientific researchers 27 Tang Hongjun Limited partner 24.8447 1.2986% Sales and sales support staff 28 Wang Song Limited partner 24.8447 1.2986% Sales and sales support staff 29 Zhou Jianye Limited partner 39.7517 2.0778% Scientific researchers 30 Li Lei Limited partner 39.7517 2.0778% Scientific researchers 31 Zhang Wei Limited partners 39.7517 2.0778% Scientific researchers 32 Bunaihong Limited partners 24.8447 1.2986% Management personnel

1-1-86

China Electronics Cosi Technology Co., Ltd. Prospectus

Serial number Partner name Partner type Amount of capital subscribed Capital contribution ratio Position 33 Tian Yuansuo Limited partner 39.7517 2.0778% Sales and sales support staff 34 Wang Jun Limited partner 39.7517 2.0778% Production and manufacturing staff 35 Jiang Naibo Limited partner 39.7517 2.0778% Scientific researchers 36 Zhang Xiqi Limited partner 39.7517 2.0778% Sales and sales support personnel 37 Xu Lantian Limited partner 24.8447 1.2986% Scientific researchers 38 Shao Yucheng Limited partner 24.8447 1.2986% Scientific researchers 39 Liu Siwei Limited partner 24.8447 1.2986% Sales and sales support staff 40 Xu Hu Limited partner 24.8447 1.2986% Scientific researchers 41 Peng Haijun Limited partner 24.8447 1.2986% Scientific researchers 42 Li Bing Limited partner 24.8447 1.2986% Management personnel 43 Yang Chuanwei Limited partner 24.8447 1.2986% Scientific research personnel 44 Yan Weiwei Limited partner 24.8447 1.2986% Manufacturing personnel 45 Siyi Gongyue Limited partner 201.2426 10.5189% - 46 Siyi Gongzhu Limited partner 24.8447 1.2986% -

Total 1,913.1445 100.0000% -

(10) Thinking and sharing benefits

As of the signing date of this prospectus, the partners and capital contributions of Siyi Gongyi are as follows:

Unit: RMB 10,000 Serial number Partner name Type of partner Amount of capital contribution Capital contribution ratio Position 1 Siyi No. 1 General partner 0.1000 0.0051% - 2 Siyi Gonghui Limited partner 151.5530 7.7125% - 3 Siyi Gongyue Limited partner 255.9011 13.0228% - 4 Shengxiang Limited partner 59.6268 3.0344% Management 5 Ding Yuhong Limited partner 59.6268 3.0344% Management 6 Xu Bo Limited partner 39.7517 2.0230% Management 7 Xu Jun Limited partner 39.4517 2.0077% Management 8 Li Huiling Limited partner 39.7517 2.0230% Financial staff 9 Guo Maolong Limited partner 39.7517 2.0230% Management staff 10 Zhong Yueming Limited partner 39.7517 2.0230% Manufacturing staff 11 Wang Qinan Limited partner 39.7517 2.0230% Management staff 12 Zhou Shengjing Limited partner 39.7517 2.0230% Sales and sales support personnel13 Cai Wenhai Limited Partner 39.7517 2.0230% Management personnel

1-1-87

China Electronics Cosi Technology Co., Ltd. Prospectus

Serial number Partner name Partner type Amount of capital subscribed Capital contribution ratio Position 14 Wang Junning Limited partner 39.7517 2.0230% Manufacturing staff 15 Yang Zheng Limited partner 39.7517 2.0230% Management staff 16 Zhu Jian Limited partner 39.7517 2.0230% Sales and sales support staff 17 Wu Zhong Limited partner 39.7517 2.0230% Management staff 18 He Liangfei Limited partner 39.7517 2.0230% Manufacturing staff 19 Qian Bin Limited partner 39.7517 2.0230% Management staff 20 Wang Dinghua Limited partner 39.7517 2.0230% Procurement and logistics staff 21 Sun Bengui Limited partners 39.7517 2.0230% Manufacturing staff 22 Liu Xiaoxin Limited partner 39.7517 2.0230% Management staff 23 Pei Quanxi Limited partner 24.8447 1.2643% Management staff 24 Yu Hui Limited partner 39.7517 2.0230% Management staff 25 Li Shaodong Limited Partner 39.7517 2.0230% Manufacturing Staff 26 Yang Deli Limited Partner 24.8447 1.2643% Management Staff 27 Xu Jiachang Limited Partner 24.8447 1.2643% Management Staff 28 Mei Jianchao Limited Partner 24.8447 1.2643% Sales and sales support staff 29 Xu Guifu Limited partner 39.7517 2.0230% Management staff 30 Wang Yun Limited partner 24.8447 1.2643% Scientific research staff 31 Fan Xinmin Limited partner 24.8447 1.2643% Manufacturing staff 32 Gao Yonggang Limited partner 24.8447 1.2643% Management staff 33 Lu Chenglong Limited partner 24.8447 1.2643% Sales and sales support staff 34 Ye Minglang Limited partner 24.8447 1.2643% Management staff 35 Zhen Changyan Limited partner 24.8447 1.2643% Management staff 36 Mei Dong Limited partner 24.8447 1.2643% Management 37 Siyi Gongzhu Limited Partner 370.1851 18.8388% -

Total 1,965.0185 100.0000% -

(11) Thinking and dancing together

As of the signing date of this prospectus, Siyi Gongyue’s partners and their capital contributions are as follows:

Unit: RMB 10,000 Serial number Partner name Partner type Amount of capital contribution Capital contribution ratio Position 1 Siyi No. 1 General partner 0.0100 0.0009% -

2 Wang Jianjun Limited Partner 67.7023 6.2014% Management Staff 3 Zhang Kunzhe Limited Partner 24.0719 2.2049% Scientific Research Staff

1-1-88

China Electronics Cosi Technology Co., Ltd. Prospectus

Serial number Partner name Partner type Amount of capital contribution Capital contribution ratio Position 4 Zhu Zhongren Limited partner 24.0719 2.2049% Management staff 5 Yin Bingqi Limited partner 24.0719 2.2049% Scientific researchers 6 Sun Jisheng Limited partner 36.1080 3.3074% Manufacturing staff 7 Liu Hui Limited partners 24.0719 2.2049% Management personnel 8 Zhang Taotao Limited partners 24.0719 2.2049% Scientific researchers 9 Tang Rui Limited partner 24.0719 2.2049% Scientific researchers 10 Li Kundang Limited partner 36.1080 3.3074% Management personnel 11 Fei Yuanhua Limited partner 24.0719 2.2049% Management personnel12 Wang Jin, limited partner 24.0719 2.2049% Scientific researchers13 Liang Xiaolin, limited partner 24.0719 2.2049% Scientific researchers14 Yang Mingyang, limited partner 15.0450 1.3781% Scientific researchers15 Peng Jie, limited partner 15.0450 1.3781% Scientific researchers 16 Zhang Aiguo Limited partner 15.0450 1.3781% Scientific researchers 17 Liu Enxiao Limited partner 24.0719 2.2049% Scientific researchers 18 Song Zhiqiang Limited partner 24.0719 2.2049% Scientific researchers 19 Teng Youwei Limited partners 24.0719 2.2049% Scientific researchers 20 Zhao Jie Limited partner 24.0719 2.2049% Scientific researchers 21 Sun Fali Limited partner 24.0719 2.2049% Scientific researchers 22 Chen Qi Limited partner 24.0719 2.2049% Sales and sales support personnel 23 Zhang Wenqiang Limited Partner 24.0719 2.2049% Scientific Research Personnel 24 Wang Tao Limited Partner 24.0719 2.2049% Scientific Research Personnel 25 Zhang Yazhou Limited Partner 24.0719 2.2049% Scientific Research Personnel 26 Xu Guicheng Limited Partner 24.0719 2.2049% Scientific Research Personnel 27 Ju Military Commission Limited Partner 24.0719 2.2049% Scientific Research Staff 28 Zhou Baokui Limited Partner 24.0719 2.2049% Scientific Research Staff 29 Lu Tianzhi Limited Partner 24.0719 2.2049% Scientific Research Staff 30 Wang Yong Limited Partner 15.0450 1.3781% Sales and sales support personnel 31 Lin Yongchao Limited partner 24.0719 2.2049% Security and other personnel 32 Han Xiang Limited partner 24.0719 2.2049% Scientific researchers 33 Zhang Genmiao Limited partner 24.0719 2.2049% Scientific researchers 34 Han Liang Limited partner 24.0719 2.2049% Guarantee and other personnel 35 He Chun Limited Partner 24.0719 2.2049% Scientific Research Personnel 36 Yu Lubo Limited Partner 24.0719 2.2049% Scientific Research Personnel

1-1-89

China Electronics Cosi Technology Co., Ltd. Prospectus

Serial number Partner name Partner type Amount of capital contribution Capital contribution ratio Position 37 Qiu Chengqiang Limited partner 7.3514 0.6734% Scientific researcher 38 Miao Guofeng Limited partner 24.0719 2.2049% Scientific researcher 39 Wu Wei Limited partner 17.8427 1.6344% Scientific researcher 40 Wu Jingfei Limited partners 24.0719 2.2049% Scientific researchers 41 Xu Congyu Limited partners 24.0719 2.2049% Scientific researchers 42 Zhao Jing Limited partners 24.0719 2.2049% Financial personnel 43 Jiang Jingwei Limited partner 24.0719 2.2049% Financial personnel 44 Yu Guobiao Limited Partner 4.3509 0.3985% Sales and Sales Support Staff 45 Tang Jingchao Limited Partner 16.0936 1.4741% Scientific Research Staff 46 Liu Qi Limited Partner 24.0719 2.2049% Scientific Research Staff 47 Ma Jianzhuang Limited Partner 24.0719 2.2049% Scientific researchers 48 Cheng Xiaolin Limited Partner 3.4650 0.3174% Scientific researchers

Total 1,091.7275 100.0000% -

(12) Thinking and building together

As of the signing date of this prospectus, the partners and capital contributions of Siyi Gongzhu are as follows:

Unit: RMB 10,000 Serial number Partner name Type of partner Amount of capital contribution Capital contribution ratio Position 1 Siyi No. 1 General partner 0.0100 0.0011% - 2 Qiu Chengqiang Limited partner 17.9148 1.9377% Scientific researcher 3 Zhang Peng Limited partner 25.7913 2.7897% Scientific researcher 4 Sun Shengkai Limited partners 25.7913 2.7897% Manufacturing personnel 5 Yan Jingjing Limited partner 25.7913 2.7897% Manufacturing personnel 6 Liu Jun Limited partner 25.7913 2.7897% Manufacturing personnel 7 Zhou Hualing Limited partner 25.7913 2.7897% Scientific researchers 8 Wang Jinbang Limited partners 25.7913 2.7897% Scientific researchers 9 Sheng Liwen Limited partners 25.7913 2.7897% Scientific researchers 10 Zhang Meng Limited partners 25.7913 2.7897% Management personnel 11 Wang Wei Limited partners 16.1196 1.7436% Sales and sales support personnel 12 Zhang Ming Limited partners 25.7913 2.7897% Scientific researchers 13 Liu Qiang Limited partner 25.7913 2.7897% Scientific researchers 14 Gu Zongjing Limited partner 25.7913 2.7897% Scientific researchers 15 Yuan Haijun Limited partner 25.7913 2.7897% Scientific researchers

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China Electronics Cosi Technology Co., Ltd. Prospectus

No. Name of partner Partner type Amount of capital subscribed Capital contribution ratio Term held 16 Zhang Mingyue Limited partner 25.7913 2.7897% Sales and sales support staff 17 Zhang Wentao Limited partner 25.7913 2.7897% Scientific researcher 18 Jiang Xincheng Limited partner 25.7913 2.7897% Scientific researcher 19 Han Junyuan Limited Partner 25.7913 2.7897% Scientific Research Staff 20 Wu Wei Limited Partner 6.6741 0.7219% Scientific Research Staff 21 Yu Guobiao Limited Partner 11.4579 1.2393% Sales and Sales Support Staff 22 Liu Qing Limited Partner 16.1196 1.7436% Scientific researchers 23 Pu Zhiqi Limited partner 25.7913 2.7897% Scientific researchers 24 Wang Haijiao Limited partner 25.7913 2.7897% Guarantee and other personnel 25 Zhou Yuyong Limited partner 25.7913 2.7897% Scientific researchers 26 Zhang Wenxing Limited partner 25.7913 2.7897% Scientific researchers 27 Zhang Lei Limited partner 25.7913 2.7897% Scientific researchers 28 Liu Changchun Limited partner 25.7913 2.7897% Scientific researchers 29 Lu Kai Limited partner 25.7913 2.7897% Scientific researchers 30 Wang Xianpeng Limited partner 25.7913 2.7897% Scientific researchers 31 Sun Fudou Limited partner 16.1196 1.7436% Scientific researchers 32 Bai Yunpeng Limited partner 25.7913 2.7897% Scientific researchers 33 Ma Guorui Limited partner 16.1196 1.7436% Scientific researchers 34 Sun Bo Limited partner 16.1196 1.7436% Sales and sales support staff 35 Ma Fengjun Limited partner 25.7913 2.7897% Scientific researchers 36 Zhang Bing Limited partner 25.7913 2.7897% Scientific researchers 37 Huang Lin Limited partner 25.7913 2.7897% Scientific researchers 38 Liu Yong Limited partner 25.7913 2.7897% Scientific researchers 39 Liu Yuanshang Limited partner 25.7913 2.7897% Scientific researchers 40 Jiang Yufeng Limited partner 25.7913 2.7897% Scientific researchers 41 Chen Fenglin Limited partner 8.3352 0.9016% Scientific researchers

Total 924.5203 100.0000% -

(13) Siyi and Co-painting

As of the signing date of this prospectus, Siyi Gonghui’s partners and their capital contributions are as follows:

Unit: RMB 10,000 Serial number Partner name Partner type Amount of capital contribution Capital contribution ratio Position 1 Siyi No. 1 General partner 0.0100 0.0008% -

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Serial number Partner name Partner type Amount of capital contribution Capital contribution ratio Position 2 Song Miao Limited partner 33.5287 2.6679% Scientific researcher 3 Li Xishun Limited partner 50.2932 4.0019% Management staff 4 Nan Bing Limited partner 33.5287 2.6679% Management staff 5 Ning Xin Limited partner 33.5287 2.6679% Sales and sales support staff 6 Yang Yubin Limited partner 33.5287 2.6679% Scientific researchers 7 Yang Mingfei Limited partner 33.5287 2.6679% Scientific researchers 8 Yang Yang Limited partner 33.5287 2.6679% Scientific researchers 9 Wang Mo Limited partner 33.5287 2.6679% Scientific researchers 10 Yuan Xingmeng Limited partner 33.5287 2.6679% Scientific researchers 11 Zhu Zhanfa Limited partner 33.5287 2.6679% Scientific researchers 12 Guo Honglong Limited partner 33.5287 2.6679% Scientific researchers 13 Shao Jianbo Limited Partner 33.5287 2.6679% Scientific Research Staff 14 He Zenghao Limited Partner 33.5287 2.6679% Scientific Research Staff 15 Gao Junbing Limited Partner 33.5287 2.6679% Scientific Research Staff 16 Xu Jian Limited Partner 33.5287 2.6679% Research staff 17 Zhang Yihan Limited partner 33.5287 2.6679% Research staff 18 Ding Peng Limited partner 33.5287 2.6679% Research staff 19 Wang Yunfeng Limited partner 20.9555 1.6675% Sales and sales support staff 20 Zhang Shibin Limited partner 33.5287 2.6679% Scientific researchers 21 He Qing Limited partner 33.5287 2.6679% Scientific researchers 22 Tang Jingchao Limited partner 11.1127 0.8843% Scientific researchers 23 Chen Fenglin Limited partner 22.6929 1.8057% Scientific researchers 24 Cheng Xiaolin Limited partner 28.7024 2.2839% Scientific researchers 25 Wang Tiangang Limited partner 33.5287 2.6679% Scientific researchers 26 Chen Peng Limited partner 33.5287 2.6679% Management staff 27 Ji Kuo Limited partner 33.5287 2.6679% Management staff 28 Cai Hongkun Limited partners 33.5287 2.6679% Research staff 29 Liu Xiaogang Limited partner 33.5287 2.6679% Research staff 30 Wang Ling Limited partner 33.5287 2.6679% Research staff 31 Liu Gongzheng Limited partner 33.5287 2.6679% Management staff 32 Wei Ziyin Limited partners 33.5287 2.6679% Scientific researchers 33 Wang Jinjun Limited partners 20.9555 1.6675% Scientific researchers 34 Cui Qi Limited partners 20.9555 1.6675% Sales and sales support personnel

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Serial number Partner name Type of partner Amount of capital contribution Capital contribution ratio Position held

35 Wang Zhengming Limited Partner 20.9555 1.6675% Sales and Sales Support Staff 36 Yu Miao Limited Partner 33.5287 2.6679% Scientific Research Staff

37 Peng Zijian Limited Partner 33.5287 2.6679% Scientific Researcher

38 Dou Yunfu Limited Partner 33.5287 2.6679% Scientific Research Staff

39 Zhu Yongfeng Limited Partner 33.5287 2.6679% Scientific Research Staff

40 Pang Jinhao Limited Partner 33.5287 2.6679% Scientific Research Staff

41 Gong Xia Limited Partner 20.7035 1.6474% Scientific Researcher

Total 1,256.7264 100.0000% -

The issuer's employee shareholding capital contributions are all employees' own funds or self-raised funds, and there are no entrusted holdings or other interest arrangements.

(4) The issuer’s special voting shares or similar arrangements and agreement control structure

As of the signing date of this prospectus, the Company does not have special voting rights shares or similar arrangements, and there is no agreement control structure.

(5) Legal compliance status of controlling shareholders and actual controllers during the reporting period

During the reporting period, the company's controlling shareholders and actual controllers did not commit any criminal offenses of corruption, bribery, misappropriation of property, misappropriation of property or undermining the order of the socialist market economy. There were no fraudulent issuances, illegal disclosure of major information or other major illegal acts involving national security, public safety, ecological safety, production safety, public health and safety and other fields.

6. Issuer’s share capital

(1) The company’s share capital before and after this issuance

Before this issuance, the company's total share capital was 825,834,500 shares. The number of shares issued this time was 102,069,432 shares. After the issuance, the total share capital was 927,903,932 shares.

Before and after this issuance, the company’s share capital structure is as follows:

Before release After release

Preface

shareholders

shareholding ratio

No.

Number of shares held (shares) Number of shares held (shares) Shareholding ratio

Example

1 China Electronics Technology Co., Ltd. 417,416,550 50.54% 417,416,550 44.98% 2 No. 41 Institute 82,583,450 10.00% 82,583,450 8.90%

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Before release After release

Preface

shareholders

shareholding ratio

No.

Number of shares held (shares) Number of shares held (shares) Shareholding ratio

Example

3 Dianke Investment 72,046,513 8.72% 72,046,513 7.76% 4 Siyi Development 65,617,864 7.95% 65,617,864 7.07% 5 Yuanzhi Spark 37,162,543 4.50% 37,162,543 4.00% 6 Aviation Industry Investment 31,294,767 3.79% 31,294,767 3.37% 7 Promoting Innovation Wisely 29,338,857 3.55% 29,338,857 3.16% 8 Hongtu Shanli 28,904,200 3.50% 28,904,200 3.11% 9 Industrial Investment Fund 20,275,750 2.46% 20,275,750 2.19% 10 China Electronics Fund 20,275,750 2.46% 20,275,750 2.19% 11 Siyi Innovation 15,485,137 1.88% 15,485,137 1.67% 12 Honghua Qianyuan No. 3 3,259,871 0.39% 3,259,871 0.35% 13 Honghua Qiyuan 2,173,248 0.26% 2,173,248 0.23%

New shares after issuance

14 - - 102,069,432 11.00%

Total 825,834,500 100.00% 927,903,932 100.00%

(2) The top ten shareholders before this issuance

Before this issuance, the company’s top ten shareholders and their shareholding status were as follows:

Serial number Shareholder name Number of shares held (shares) Shareholding ratio

Total 804,916,244 97.47%

(3) The top ten natural person shareholders before this issuance and their positions with the issuer

Before this issuance, the company had no natural person shareholders.

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(4) Situations involving state-owned shares or foreign-invested shares in the issuer’s equity

As of the signing date of this prospectus, four shareholders, China Electronics Technology, No. 41 Institute, Electronic Technology Investment and Industrial Investment Fund, are holders of state-owned shares. The details are as follows:

Name of shareholder Number of shares held (shares) Shareholding ratio Nature of shareholder

China Electronics Technology Co., Ltd. 417,416,550 50.54% SS

Forty-one School 82,583,450 10.00% SS

Dianke Investment 72,046,513 8.72% SS

Industrial Investment Fund 20,275,750 2.46% SS

Total 592,322,263 71.72% -

Note: According to the "Measures for the Supervision and Administration of State-owned Equity of Listed Companies", the term "state-owned shareholders" as mentioned in the Measures refers to enterprises and units that meet one of the following circumstances, and their securities accounts are marked "SS": (1) Government departments, institutions, institutions, domestic solely state-owned or wholly-owned enterprises; (2) Domestic enterprises in which the units or enterprises mentioned in paragraph 1 have an exclusive shareholding ratio of more than 50%, or a total shareholding ratio of more than 50%, and one of them is the largest shareholder.

As of the signing date of this prospectus, the company has no foreign shares.

(5) The issuer’s new shareholders in the twelve months prior to the declaration

The issuer has no new shareholders within 6 months before the issuance and listing application. There are new shareholders within 12 months before the issuance and listing application. They are Yuanzhi Xinghuo, Hongtu Shanli, Aviation Industry Investment, Honghua Qianyuan No. 3, and Honghua Qiyuan. They have all promised that the new shares they hold shall not be transferred within 36 months from the date of acquisition.

Basic information on new shareholders in the twelve months before declaration

(1) Far-reaching Spark

As of the signing date of this prospectus, the basic situation of Yuanzhi Spark is as follows:

Company name Shenzhen Yuanzhi Xinghuo Private Equity Investment Fund Partnership (Limited Partnership)

Unified social credit code 91440300MA5GX4PU68

Main place of business: Floor 3301, Duty Free Business Building, No. 6 Fuhua 1st Road, Fu'an Community, Futian Street, Futian District, Shenzhen Executive Affairs Partner Shenzhen Yuanzhi Venture Capital Co., Ltd.

Amount of investment -

Business Type Limited Partnership

Use private equity funds to engage in equity investment, investment management, asset management and other activities (must be within the business scope of China Securities Regulatory Commission)

You can only engage in business activities after completing the registration and filing with the Securities Investment Fund Industry Association)

Date of establishment: July 29, 2021

Open until: No fixed period

As of the signing date of this prospectus, Yuanzhi Spark Executive Partner Shenzhen Yuanzhi Venture Capital Co., Ltd.

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The basic situation of the company is as follows:

Company name Shenzhen Yuanzhi Venture Capital Co., Ltd.

Unified social credit code 91440300342787085F

Residence: 14C1, Investment Building, No. 4009, Shennan Avenue, Fu'an Community, Futian Street, Futian District, Shenzhen Legal Representative Shi Lan

Registered capital 300 million yuan

Enterprise type limited liability company (sole proprietorship of legal person)

General business projects are: private equity investment fund management, venture capital fund management services (must complete registration with the Asset Management Association of China before engaging in business activities); entrepreneurial business investment (limited to investment in unlisted companies); engaging in investment activities with own funds; information consulting services (excluding licensed information consulting services). (Except for projects that require approval according to law, business activities can be carried out independently with a business license and in accordance with the law)

Date of establishment June 12, 2015

Open until: No fixed period

As of the signing date of this prospectus, the equity structure of Shenzhen Yuanzhi Venture Capital Co., Ltd. is as follows:

Serial number Shareholder name Subscribed capital (10,000 yuan) Capital contribution ratio (%) 1 Shenzhen Capital Operation Group Co., Ltd. 30,000.00 100.00

Total 30,000.00 100.00

(2) Red soil is beneficial

As of the signing date of this prospectus, the basic situation of Hongtu Shanli is as follows:

Company name Shenzhen Hongtu Shanli Private Equity Investment Fund Partnership (Limited Partnership)

Unified social credit code 91440300MA5GBFUU89

Main business location: Room 2113, Main Tower, Maritime Center, No. 59 Linhai Avenue, Nanshan Street, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen Executive Affairs Partner Shenzhen Luohu Hongtu Venture Investment Management Co., Ltd.

Capital contribution: RMB 1,000,000,000

Business Type Limited Partnership

General business projects are: equity investment; venture capital. (Except for projects that require approval according to law, the business scope

Carry out business activities independently with a business license in accordance with the law), the permitted business items are: None

Date of establishment August 12, 2020

Business period until August 12, 2028

As of the signing date of this prospectus, Hongtu Shanli’s capital contribution is as follows:

Amount of capital subscribed Capital contribution ratio

Serial number Partner name Nature of partner

(10,000 yuan) (%)

1 Shenzhen Luohu Hongtu Venture Capital Management Co., Ltd. 1,000.00 1.00 General partner

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Amount of capital subscribed Capital contribution ratio

Serial number Partner name Nature of partner

(10,000 yuan) (%)

2 Shenzhen Guiding Fund Investment Co., Ltd. 49,000.00 49.00 Limited partner 3 Huawei Technologies Co., Ltd. 19,000.00 19.00 Limited partner 4 Wuhu Jianxin Dingxin Investment Management Center (limited partnership) 15,000.00 15.00 Limited partner

Beijing Jianxin Origin Emerging Equity Investment Management Center (with

5 10,000.00 10.00 Limited Partner

limited partnership)

6 Shenzhen Hongshi Venture Capital Co., Ltd. 5,000.00 5.00 Limited partner 7 Hubble Technology Venture Capital Co., Ltd. 1,000.00 1.00 Limited partner

Total 100,000.00 100.00 -

As of the signing date of this prospectus, the basic situation of Shenzhen Luohu Hongtu Venture Capital Management Co., Ltd., the executive partner of Hongtu Shanli, is as follows:

Company name Shenzhen Luohu Hongtu Venture Capital Management Co., Ltd.

Unified social credit code 91440300319686729Q

Address: 309-3E, 3rd Floor, Podium Building, Xufei Huada Park, No. 2058 Cuizhu Road, Cuizhu Street, Luohu District, Shenzhen Legal Representative Zhang Jian

Registered capital 100 million yuan

Enterprise type limited liability company (sole proprietorship of legal person)

The general business items are: investment management (except for laws, administrative regulations, and decisions of the State Council that require approval before registering the business scope). (If the business operation involves pre-administrative license, it must obtain

Business can only be operated after obtaining pre-existing administrative licensing documents)

Date of establishment December 12, 2014

Business period until December 12, 2034

As of the signing date of this prospectus, the equity structure of Shenzhen Luohu Hongtu Venture Investment Management Co., Ltd. is as follows:

Serial number Shareholder name Subscribed capital (10,000 yuan) Capital contribution ratio (%)

Shenzhen Venture Capital Red Earth Private Equity Investment Fund Management (Shenzhen)

1 10,000.00 100.00 Co., Ltd.

Total 10,000.00 100.00

(3) Aviation industry investment

As of the signing date of this prospectus, the basic situation of Aviation Industry Investment is as follows:

Company Name Aviation Industry Integrated Development (Qingdao) Equity Investment Fund Partnership (Limited Partnership) Unified Social Credit Code 91370211MA3UXUB60G

The main business premises of Qingdao West Coast International Financial Center, Building T1, No. 877 Lijiang West Road, Huangdao District, Qingdao City, Shandong Province

Room 1512

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Executive Partner Qingdao Honghua Private Equity Fund Management Co., Ltd.

Capital contribution 10.101 million yuan

Business Type Limited Partnership

General projects: engage in equity investment, investment management, asset management and other activities with private equity funds (the business scope must be registered with the Asset Management Association of China before engaging in business activities). (Except

Except for projects that require approval according to law, business activities can be carried out independently with a business license and in accordance with the law)

Date of establishment January 27, 2021

Business period until January 26, 2028

As of the signing date of this prospectus, the investment status of Aviation Industry Investment is as follows:

Amount of capital subscribed Capital contribution ratio

Serial number Partner name Nature of partner

(10,000 yuan) (%)

1 Qingdao Honghua Private Equity Fund Management Co., Ltd. 10,000.00 0.99 General partner 2 AVIC Industrial Investment Co., Ltd. 300,000.00 29.70 Limited partner 3 Qingdao Chengtou Venture Capital Co., Ltd. 160,000.00 15.84 Limited partner 4 Qingdao Guidance Fund Investment Co., Ltd. 100,000.00 9.90 Limited partner 5 Chengfa Group (Qingdao) Industrial Capital Management Co., Ltd. 100,000.00 9.90 Limited partner

Luoyang Industrial Development Fund Partnership (Limited Partnership)

6 100,000.00 9.90 Limited partners)

Qingdao Haikong United Industrial Investment Fund Partnership (with

7 100,000.00 9.90 Limited partners

limited partnership)

8 Wuxi Xishan Industrial Investment Partnership (Limited Partnership) 80,000.00 7.92 Limited Partner 9 Qingdao Chengsheng Investment Management Co., Ltd. 40,000.00 3.96 Limited Partner 10 Wuxi Xishan State-owned Capital Investment Group Co., Ltd. 20,000.00 1.98 Limited Partner 11 Hainan Honghua Qihang Management Consulting Co., Ltd. 100.00 0.01 limited partners

Total 1,010,100.00 100.00 -

As of the signing date of this prospectus, the basic situation of Qingdao Honghua Private Equity Fund Management Co., Ltd., the executive partner of aviation industry investment, is as follows:

Company name Qingdao Honghua Private Equity Fund Management Co., Ltd.

Unified social credit code 91370211MA3QRE1Q0M

Dual residence in the Sino-German Ecological Park, No. 172, Taibaishan Road, Qingdao Area, China (Shandong) Pilot Free Trade Zone

Room 3019, Innovation Center

Legal representative Wang Shouwen

Registered capital 100 million yuan

Business Type Other Limited Liability Company

Private equity fund management (requires registration with the Asset Management Association of China); asset management, investment and business scope asset management, equity investment, equity investment management, venture capital management, venture capital, investment consulting (non-securities business), corporate management consulting, financial information consulting (the above scope is not included in the above scope)

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With the approval of the financial regulatory authorities, it is not allowed to engage in financial services such as deposit taking, financing guarantees, and financial management on behalf of customers); it also operates other general business projects that can be operated without administrative approval. (According to law

For projects that require approval, business activities can only be carried out after approval by relevant departments)

Date of establishment October 18, 2019

Open until: No fixed period

As of the signing date of this prospectus, the equity structure of Qingdao Honghua Private Equity Fund Management Co., Ltd. is as follows:

Serial number Shareholder name Subscribed capital (10,000 yuan) Capital contribution ratio (%) 1 Qingdao Mingquan Haichuang Information Technology Co., Ltd. 3,500.00 35.00 2 AVIC Asset Management Co., Ltd. 3,500.00 35.00 3 Qingdao Longtai Lize Investment Consulting Co., Ltd. 3,000.00 30.00

Total 10,000.00 100.00

(4) Honghua Qianyuan No. 3

As of the signing date of this prospectus, the basic situation of Honghua Qianyuan No. 3 is as follows:

Company name Qingdao Honghua Qianyuan No. 3 Private Equity Investment Fund Partnership (Limited Partnership)

Unified social credit code 91370211MAEC5L5776

Main business location: Room 3101, No. 217, Dujiang Road, Changjiang Road Street, Huangdao District, Qingdao City, Shandong Province Executive Affairs Partner Cinda Capital Management Co., Ltd., Qingdao Honghua Private Equity Fund Management Co., Ltd.

Investment amount 152 million yuan

Business Type Limited Partnership

General projects: Use private equity funds to engage in equity investment, investment management, asset management and other activities (the business scope must be registered with the Asset Management Association of China before engaging in business activities). (Except

Except for projects that require approval according to law, business activities can be carried out independently with a business license and in accordance with the law)

Date of establishment: February 21, 2025

Business period until February 20, 2035

As of the signing date of this prospectus, the capital contribution status of Honghua Qianyuan No. 3 is as follows:

Amount of capital subscribed

Serial number Name of partner Capital contribution ratio (%) Nature of partner (10,000 yuan)

1 Cinda Capital Management Co., Ltd. 100.00 0.66 General partner Qingdao Honghua Private Equity Fund Management Co., Ltd.

2 100.00 0.66 General Partnership Limited

China Cinda Asset Management Co., Ltd.

3 15,000.00 98.68 Limited Partnership

Total 15,200.00 100.00 -

As of the signing date of this prospectus, the basic situation of the executive partners of Honghua Qianyuan No. 3 is as follows:

①Cinda Capital Management Co., Ltd.

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Company name Cinda Capital Management Co., Ltd.

Unified social credit code 91120116681880305U

Room 202, second floor, Building D, Office Building, Nangang Industrial Zone, Tianjin Development Zone (development zone residence

Financial Services Center Custody No. 55)

Legal representative Guo Jinchun

Registered capital 200 million yuan

Business Type Limited Liability Company

Entrusted to manage private equity investment funds and engage in investment and financing management and related consulting services. Business scope

If the state has exclusive or special regulations, it shall be handled in accordance with the special regulations.

Date of establishment: December 16, 2008

Business period until December 15, 2058

As of the signing date of this prospectus, the equity structure of Cinda Capital Management Co., Ltd. is as follows:

Serial number Shareholder name Subscribed capital (10,000 yuan) Capital contribution ratio (%) 1 Cinda Investment Co., Ltd. 12,000.00 60.00 2 Shenzhen Qianhai Huajian Equity Investment Co., Ltd. 8,000.00 40.00

Total 20,000.00 100.00

②Qingdao Honghua Private Equity Fund Management Co., Ltd.

Company name Qingdao Honghua Private Equity Fund Management Co., Ltd.

Unified social credit code 91370211MA3QRE1Q0M

Dual residence in the Sino-German Ecological Park, No. 172, Taibaishan Road, Qingdao Area, China (Shandong) Pilot Free Trade Zone

Room 3019, Innovation Center

Legal representative Wang Shouwen

Registered capital 100 million yuan

Business Type Other Limited Liability Company

Private equity fund management (requires registration with the Asset Management Association of China); asset management, investment management, equity investment, equity investment management, venture capital management, venture capital, investment consulting (non-securities business), corporate management consulting, financial information consulting (business scope above)

Without the approval of the financial regulatory authorities, it is not allowed to engage in financial services such as deposit-taking, financing guarantees, and financial management on behalf of customers); and other general business projects that can be operated without administrative approval. (Projects that require approval according to law can only be carried out with approval from relevant departments)

Date of establishment October 18, 2019

Open until: No fixed period

As of the signing date of this prospectus, the equity structure of Qingdao Honghua Private Equity Fund Management Co., Ltd. is as follows:

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Serial number Shareholder name Subscribed capital (10,000 yuan) Capital contribution ratio (%) 3 Qingdao Longtai Lize Investment Consulting Co., Ltd. 3,000.00 30.00

Total 10,000.00 100.00

(5) Honghua Qiyuan

As of the signing date of this prospectus, the basic situation of Honghua Qiyuan is as follows:

Company name Qingdao Honghua Qiyuan Investment Partnership (Limited Partnership)

Unified social credit code 91370211MADT5P7L9Q

Main business location: Room 102, No. 132, Qibaoshan 1st Road, Baoshan Town, Huangdao District, Qingdao City, Shandong Province

Executive Partner Hainan Honghua Qihang Management Consulting Co., Ltd.

Investment amount 20.01 million yuan

Business Type Limited Partnership

General projects: Engage in investment activities with own funds. (Except for projects that require approval according to law, the business scope

Carry out business activities independently in accordance with the law with a business license)

Date of establishment: July 25, 2024

Business period until July 24, 2029

As of the signing date of this prospectus, Honghua Qiyuan’s capital contribution is as follows:

Amount of capital subscribed

Serial number Name of partner Capital contribution ratio (%) Nature of partner

(10,000 yuan)

1 Hainan Honghua Qihang Management Consulting Co., Ltd. 1.00 0.05 General partner 2 Qingdao Weicai Investment Co., Ltd. 2,000.00 99.95 Limited partner

Total 2,001.00 100.00 -

As of the signing date of this prospectus, the basic situation of Hainan Honghua Qihang Management Consulting Co., Ltd., the executive partner of Honghua Qiyuan, is as follows:

Company name Hainan Honghua Qihang Management Consulting Co., Ltd.

Unified social credit code 91460000MAEFC11K4H

Residence of Phase II Project of Plot C of Hainan Ecological Software Park on the south side of Nanhuan 1st Road, Old Town, Chengmai County, Hainan Province

Room 3A09-3, Building C39

Legal representative Wang Shouwen

Registered capital 10 million yuan

Enterprise type: Limited liability company (a sole proprietorship of a legal person that is not invested or controlled by a natural person)

General business projects: business management consulting; socioeconomic consulting services; business management (general business projects within the business scope independently carry out business activities in accordance with the law and are disclosed to the public through the National Enterprise Credit Information Business Scope Information Disclosure System (Hainan)) (General business projects are operated independently, and permitted business projects are operated with relevant licenses or approval documents) (Projects that are subject to approval according to law can only be carried out with the approval of relevant departments.)

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Date of establishment: April 7, 2025

Open until: No fixed period

As of the signing date of this prospectus, the equity structure of Hainan Honghua Qihang Management Consulting Co., Ltd. is as follows: Serial number Shareholder name Subscribed capital (10,000 yuan) Capital contribution ratio (%) 1 Qingdao Honghua Private Equity Fund Management Co., Ltd. 1,000.00 100.00

Total 1,000.00 100.00

The relationship between the new shareholders and other shareholders, directors, supervisors, and senior managers of the issuer in the twelve months before the application, as well as the intermediaries of this issuance and their responsible persons, senior managers, and handling personnel

Qingdao Honghua Private Equity Fund Management Co., Ltd. is the general partner and executive partner of Aviation Industry Investment and Honghua Qianyuan No. 3. Hainan Honghua Qihang Management Consulting Co., Ltd., a wholly-owned subsidiary of Qingdao Honghua Private Equity Fund Management Co., Ltd., is the general partner and executive partner of Honghua Qiyuan and the general partner of Aviation Industry Investment. Zeng Yufeng, the issuer’s director, was recommended by Yuanzhi Spark.

Except for the above, the above-mentioned new shareholders have no related relationship with other shareholders, directors, senior managers of the issuer, the issuance intermediary and its responsible persons, senior managers, and handling personnel; the above-mentioned new shareholders do not hold shares on behalf of others.

Reasons for new shareholders to join, price and pricing basis

Some of the company's original shareholders have exit needs, and at the same time new shareholders are optimistic about the company's development. Therefore, the old and new shareholders conduct share transfer transactions, and the new shareholders obtain the company's shares. The relevant transaction pricing is as follows:

Amount Number of shares Unit price transaction date Transferor Transferee

(10,000 yuan) (10,000 shares) (yuan/share) December 26, 2024 Huawei Technologies Yuanzhi Spark 22,882.49 3,716.25 6.1574 December 26, 2024 Huawei Technologies Hongtu Shanli 17,797.50 2,890.42 6.1574 December 27, 2024 Guoyuan Fund Aviation Industry Investment 28,800.00 3,129.48 9.2028 December 27, 2024 Guoyuan Fund Honghua Qiyuan 2,000.00 217.32 9.2028 March 6, 2025 Guoyuan Fund Honghua Qianyuan No. 3 3,000.00 325.99 9.2028 The share transfer price is determined by each new and old shareholder through market-based negotiations after comprehensively referring to the issuer's operating conditions, financial status, development expectations and other factors.

In summary, the reason for the issuer's introduction of new shareholders is reasonable, and the price at which the issuer's shares are obtained is not abnormal.

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The relevant equity changes are the true expressions of intention of the relevant parties, and there is no dispute or potential dispute.

(6) Related relationships and concerted actions among shareholders before this issuance and the respective shareholding ratios of related shareholders

As of the signing date of this prospectus, the related relationships, concerted action relationships and respective shareholding ratios between shareholders before this issuance are as follows:

Serial number Shareholder name Shareholding ratio (%) Related relationship

China Electronics Technology Corporation 50.5448

1 Forty-one Institute 10.0000 Forty-one Institute and Electronic Technology Investment are both controlled by China Electronics Technology

Dianke Investment 8.7241

2 Dianke Investment holds 9.80% of the equity of the Industrial Investment Fund Industrial Investment Fund 2.4552

Executive partner of Honghua Qianyuan No. 3 and Aviation Industry Investment Qing Aviation Industry Investment 3.7895

Dao Honghua Private Equity Fund Management Co., Ltd. holds 100% equity of Honghua Qiyuan Executive 3 Honghua Qianyuan No. 3 0.3947 Bank Affairs Partner Hainan Honghua Qihang Management Consulting Co., Ltd. Hainan Honghua Qihang Management Consulting Co., Ltd. is Honghua Qiyuan 0.2632

General partner of Aviation Industry Investment

Except for the above circumstances, there were no other related relationships among the shareholders before this issuance.

In order to facilitate the issuer’s implementation of confidentiality work system, January 2026 and 2026 In March, CLP Fund, Qianyuan No. 3, and Hongtu Shanli respectively signed the "Voting Rights Entrustment Agreement" with No. 41 (the entrusting parties are CLP Fund, Qianyuan No. 3, and Hongtu Shanli, and the trustee is No. 41). The main contents of these agreements are: (1) The entrusting party shall be responsible for the companies it holds The voting rights for the company's military industry matters corresponding to the shares are entrusted to the entrusted party. For matters other than military industry matters, the voting rights are exercised by the entrusting party itself; (2) The signing of this agreement does not mean that the two parties have reached any concerted action relationship, and the entrusting party and the entrusted party are not persons acting in concert. The entrustment period lasts until the date of listing of the issuer or the earlier of any direct or indirect shareholder of the entrusting partner that does not include foreign investors or March 31, 2031 (only for Hongtu Shanli).

Except for the above circumstances, there was no other entrustment of voting rights among shareholders before this issuance.

(7) Public offering of shares by the issuer’s shareholders

This issuance is all public issuance of new shares and does not involve the public sale of shares by original shareholders.

(8) Private investment funds holding shares of the issuer and their filing status

The company's shareholders include Yuanzhi Spark, Aviation Industrial Investment, Wise Innovation, Hongtu Shanli, Industrial Investment Fund, China Electronics

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The fund and Honghua Qianyuan No. 3 belong to the "Interim Measures for the Supervision and Administration of Private Investment Funds" and "Private Investment Fund Registration"

For private investment funds stipulated in the Record Filing Measures and other relevant laws and regulations, the filing status is as follows:

Serial number Shareholder name Fund registration number Fund manager Manager registration number 1 Yuanzhi Spark SQZ967 Shenzhen Yuanzhi Venture Capital Co., Ltd. P1071984 2 Aviation Industry Investment SQK017 Qingdao Honghua Private Equity Fund Management Co., Ltd. P1072365 3 Wise Initiative SNK572 Beijing Wise Dafang Investment Management Co., Ltd. P1071266 4 Hongtu Shanli SLT199 Luohu Hongtu Venture Capital Management Co., Ltd. P1018490 5 Industrial Investment Fund SGC907 Huihua Fund Management Co., Ltd. P1069217 6 China Electronics Fund SEN382 China Electronics Industrial and Financial Private Equity Fund Management Co., Ltd. P1070141 7 Honghua Qianyuan No. 3 SAXL41 Qingdao Honghua Private Equity Fund Management Co., Ltd. P1072365

7. Directors, senior managers and other core personnel

In accordance with the provisions of the "Company Law", "Transitional Arrangements Related to the Implementation of Supporting System Rules of the New Company Law", "Guidelines on the Articles of Association of Listed Companies" and other relevant laws and regulations, and based on the company's actual situation and needs, the company held the 2024 Annual General Meeting of Shareholders on May 22, 2025 to review and approve the "Proposal on the Dissolution of the Company's Supervisory Board". The company will no longer have a supervisory board, and the powers of the supervisory board stipulated in the "Company Law" will be exercised by the Audit Committee of the Board of Directors.

(1) Brief information of directors, senior managers and other core personnel

Introduction to board members

As of the signing date of this prospectus, the company's board of directors has 7 directors, including 3 independent directors.

The physical condition is as follows:

Serial number Name Position Nominator Election/appointment procedure Term of office

The first extraordinary shareholders’ meeting election in 2025

1 Zou Pengwen Chairman China Electronics Technology Co., Ltd. is elected as a director and the tenth member of the second board of directors until the expiration of the current term.

Elected as chairman at three meetings

2 Sun Jianying Director China Electronics Corporation 2024 Annual General Meeting of Shareholders Until the expiration of the current term3 Zeng Yufeng Director Yuanzhi Xinghuo 2024 Annual General Meeting Until the expiration of the current term4 Kang Jianling Independent Director No.41 Institute 2023 Annual General Meeting of Shareholders Until the expiration of the current term5 Qin Yong Independent Director No.41 Institute 2023 Annual General Meeting Until the expiration of the current term6 Wang Hongjun Independent Director No. 41 Annual General Meeting of Shareholders in 2023 until the expiration of the current term

Company Employees Eleventh Session of the First Workers’ Congress

7 Dong Jigang Employee Representative Director Until the expiration of the current term of office, the congress meeting

The main service experience of each director is as follows:

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Zou Pengwen, male, born in November 1971, Chinese nationality, no permanent residence abroad, graduated from Guilin Institute of Electronics Industry, bachelor's degree, senior engineer. From July 1994 to May 2016, he served as an employee of the 20th Research Institute of China Electronics Technology, director of the Comprehensive Planning Department, director of the Comprehensive Development Department, director of the Human Resources Department, etc.; from May 2016 to May 2023, he served as deputy general manager of China Electronics Technology Avionics Co., Ltd.; from May 2023 to June 2025, he served as director of the China Electronics Technology Collaboration Office; from June 2025 to May 2026 In May 2026, he served as the vice chairman and general manager of Diancosiyi; from May 2026 to the present, he served as the chairman and general manager of Diancosiyi.

Sun Jianying, male, born in May 1979, Chinese nationality, no permanent residence abroad, graduated from Shenyang University of Technology with a bachelor's degree and is an engineer. From July 2003 to June 2006, he served as an assistant engineer of the 12th Research Institute of China Electronics Technology; from June 2006 to November 2009, he served as deputy director and director of the Discipline Inspection, Supervision and Audit Department of China Electronics Technology; from November 2009 to July 2016, he served as director of the Collaboration Office of China Electronics Technology; from July 2016 to December 2021 From December 2021 to January 2025, he served as the director and general manager of China Electronics Semiconductor Materials Co., Ltd.; from January 2025 to the present, he served as the director of China Electronics Technology Asset Management Co., Ltd. and the director of China Electronics Technology Electronic Equipment Group Co., Ltd.; from April 2025 to the present, he served as the director of China Electronics Technology.

Zeng Yufeng, male, born in September 1990, Chinese nationality, no permanent residence abroad, graduated from Fudan University with a doctoral degree. From October 2020 to January 2023, he served as the senior manager of the Investment and Development Department II of Shenzhen Capital Operation Group Co., Ltd.; from February 2023 to the present, he served as the deputy director of investment and the director of the investment department of Shenzhen Yuanzhi Venture Capital Co., Ltd.; from April 2025 to the present, he served as a director of Dianke Siyi.

Kang Jianling, male, born in October 1959, Chinese nationality, no permanent residence abroad, graduated from Changsha Electric Power University with a bachelor's degree and is a senior accountant. From October 1980 to October 1989, he served as a staff member of the Maintenance Department and a member of the Finance Department of Shijingshan Power Plant; from October 1989 to June 1992, he served as a chief staff member of the Finance Department of the China Electricity Council; from July 1992 to January 2001, he successively served as a chief staff member, deputy director, and director of the Economic Adjustment Department of the Ministry of Electric Power Industry; in 2001 From January 2004 to April 2004, he served as the chief accountant of State Grid Anhui Electric Power Co., Ltd.; from May 2004 to October 2006, he served as deputy director of the Supervision Bureau of State Grid Corporation; from November 2006 to November 2007, he served as director of the State Grid Social Security Management Center; from December 2007 to October 2009, he served as chairman of Yingda International Trust Co., Ltd.; in 2009 From November 2011 to January 2011, he served as the vice president of State Grid Economic and Technology Research Institute Co., Ltd.; from February 2011 to December 2017, he served as chairman of State Grid International Financial Leasing Co., Ltd.; from December 2017 to November 2019, he served as deputy secretary and deputy director of the North China Branch of State Grid Co., Ltd.; from May 2024 to the present, he serves as an independent director of Diancosiyi.

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Qin Yong, male, born in February 1972, Chinese nationality, no permanent residence abroad, graduated from Southwest University of Political Science and Law with a doctoral degree and is a professor. From July 1996 to November 1998, he served as a clerk in the legal affairs department of Yantai Housing Savings Bank (now Hengfeng Bank); from November 1998 to present, he has served as a lecturer, associate professor, and professor at China University of Petroleum (East China); from March 2016 to June 2022, he served as an independent director of Dongying Rural Commercial Bank Co., Ltd.; from January 2019 to December 2021 In September, he served as an independent director of Qingyun Le'an Rural Bank Co., Ltd.; from December 2021 to present, he served as an independent director of Qingdao Wendatong Technology Co., Ltd.; from December 2020 to present, he served as an independent director of Dianke Siyi.

Wang Hongjun, male, born in December 1963, Chinese nationality, no permanent residence abroad, graduated from Tianjin University with a doctoral degree and is a professor. From July 1988 to July 2000, he taught at Shandong University of Technology (now Shandong University); from July 2000 to the present, he taught at Shandong University; from December 2020 to the present, he served as an independent director of Diankesiyi.

Dong Jigang, male, born in June 1984, Chinese nationality, no permanent residence abroad, graduated from Harbin Engineering University with a doctoral degree. From February 2016 to August 2018, he served as an R&D engineer at No. 41 Research Institute; from August 2018 to December 2020, he served as deputy director of the Science and Technology Development Department of China Electronics Instrument Co., Ltd.; from December 2020 to March 2022, he served as deputy director of the Science and Technology Development Department of CEC Instruments; from March 2022 From March 2023 to present, he serves as the general manager of the Automatic Testing Division of Diancosi Instruments; from March 2023 to present, he serves as the employee representative director of Diancosi Instruments.

Introduction to senior management personnel

As of the signing date of this prospectus, the company’s senior management personnel include the general manager, deputy general manager, general legal counsel, chief accountant, and board secretary. The basic information is as follows:

No. Name Position Election/Appointment Procedure Term of office1 Zou Pengwen General Manager The seventh meeting of the second board of directors Until the expiration of the current term2 Chen Kunfeng Deputy General Manager The first meeting of the second board of directors Until the expiration of the current term Deputy General Manager The first meeting of the second board of directors Until the expiration of the current term3 Shi Xianfeng

General Legal Counsel The ninth meeting of the second board of directors Until the expiration of the current term4 Wang Jianjun, Deputy General Manager The first meeting of the second board of directors Until the expiration of the current term Chief Accountant, Financial Manager

5 Han Fei, the 15th meeting of the second board of directors, the person in charge until the expiration of the current term

Secretary of the Board of Directors First meeting of the second board of directors Until the expiration of the current term 6 Xu Jun

Deputy General Manager The 15th Meeting of the Second Board of Directors Until the expiration of the current term, the resumes of the above-mentioned senior managers are as follows:

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Zou Pengwen, for his resume, please see "1. Introduction to Board Members" in this chapter.

Chen Kunfeng, male, born in November 1968, Chinese nationality, no permanent residence abroad, graduated from Harbin Institute of Technology with a bachelor's degree and is a researcher-level senior engineer. From July 1990 to December 2011, he served as the R&D researcher of the Instrument and Measurement Laboratory and Optoelectronic Measurement Station of the 41st Institute, the deputy director of the Optoelectronic Measurement Station of the 41st Institute, the person in charge of the Instrumentation and Measurement Office of the 41st Institute, and the deputy director of the Condition Assurance and Safety Production Department of the 41st Institute; from December 2011 to October 2013, he served as the deputy chief engineer, the deputy director of the Condition Assurance and Safety Production Department, and the deputy director of the Optoelectronic Measurement Station of the 41st Institute; in 2013 From October to August 2014, he served as the deputy chief engineer, director of the operation center, and deputy director of the Optoelectronic Measurement Station of the 40th Institute/Forty-one Institute; from August 2014 to December 2022, he served as the deputy director of the 40th Institute/Forty-one Institute; from October 2015 to December 2020, he served as the deputy general manager of China Electronics Instrument Co., Ltd.; from December 2020 to the present, he serves as the deputy general manager of Diancosi Instruments.

Shi Xianfeng, male, born in June 1968, Chinese nationality, no permanent residence abroad, graduated from the University of Electronic Science and Technology of China with a bachelor's degree and is a researcher-level senior engineer. From July 1991 to January 1998, he served as a technical research and development researcher of the 41st Institute; from January 1998 to August 2000, he served as the deputy director of the Quality Department of the 41st Institute; from August 2000 to May 2018, he served as the general manager of Bengbu Yiai Fire Electronics Co., Ltd.; from May 2018 to October 2022 From June 2019 to December 2020, he served as the deputy general manager of China Electronics Instrument Co., Ltd.; from December 2020 to the present, he served as the deputy general manager of Diankesiyi; from December 2025 to the present, he served as the general legal counsel of Diankesiyi.

Wang Jianjun, male, born in September 1976, Chinese nationality, no permanent residence abroad, graduated from Changchun University of Science and Technology, holds a master's degree, and is a researcher-level senior engineer. From July 1999 to December 2021, he successively served as an engineer, senior engineer, researcher-level senior engineer, and director of the Industrial Development Department of the 11th Research Institute of China Electronics Technology; from December 2021 to present, he serves as the deputy general manager of CETC Siyi.

Han Fei, male, born in January 1987, Chinese nationality, no permanent residence abroad, graduated from Nanjing University of Aeronautics and Astronautics with a master's degree and is a senior accountant. From April 2011 to April 2012, he served as an employee of Jiangsu Hongxin System Integration Co., Ltd.; from April 2012 to March 2018, he served as an employee of the Financial Department of the 28th Research Institute of China Electronics Technology; from March 2018 to October 2018, he served as the financial director of Liyang 28th Research Institute System Equipment Co., Ltd.; from October 2018 From December 2022 to November 2024, he successively served as deputy director of the Finance Department, deputy director of the Finance Department (in charge of work), and deputy director of the Operations and Management Department (in charge of work) of China Electronics Rice Information Systems Co., Ltd. and the 28th Research Institute; from December 2022 to November 2024, he successively served as deputy director of the Operations and Management Department (in charge of work), deputy director of the Finance Department (in charge of work), director of the Finance Department, and deputy director of the Operations Management Department of the 28th Research Institute

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Director of the Management Department; from November 2024 to May 2026, he served as the chief accountant of the Forty/Forty-one Institute; from July 2026 to the present, he served as the chief accountant and financial person in charge of Dianke Siyi.

Xu Jun, male, born in February 1986, Chinese nationality, no permanent residence abroad, graduated from the University of Science and Technology of China with a master's degree and is a senior political engineer. From July 2011 to August 2013, he served as the text secretary of the Comprehensive Office of the 41st Institute; from September 2013 to May 2017, he served as the assistant director of the Comprehensive Office of the 40th Institute/Forty-one Institute; from June 2017 to February 2019, he served as the deputy director of the Comprehensive Management Department of China Electronics Instrument Co., Ltd.; from March 2019 to August 2020, he served as the deputy director of the Comprehensive Management Department of China Electronics Instrument Co., Ltd.; 2020 From September 2020 to December 2020, he served as the director of the comprehensive management department and deputy director of the legal and risk management department of China Electronics Instruments Co., Ltd.; from December 2020 to June 2021, he served as secretary of the board of directors, director of the comprehensive management department, and deputy director of the legal and risk management department; from July 2021 to January 2022, he served as secretary of the board of directors and director of the comprehensive management department of Electronics Co., Ltd.; from February 2022 From July 2026 to the present, he has served as the secretary of the board of directors, director of the management center, and director of the comprehensive management department of Diancosiyi; from December 2025 to June 2026, he has served as the assistant to the general manager of Diancosiyi; from July 2026 to the present, he has served as the deputy general manager of Diancosiyi.

Introduction to other core personnel

The other core personnel of the company are core technical personnel. As of the signing date of this prospectus, the company's core technical personnel are Nian Fushun, Jiang Wanshun, Wang Feng, Deng Jianqin and Du Huiwen. The resumes of the company’s core technical personnel are as follows:

Nian Fushun, male, born in August 1962, Chinese nationality, no permanent residence abroad, graduated from Xi'an Jiaotong University, master's degree, researcher-level senior engineer, chief scientist of China Electronics Technology Corporation. From August 1983 to August 1986, he served as technician of Huainan Power Plant; from June 1989 to June 2019, he successively served as R&D staff of No. 41 Research Institute, deputy director of the research office, assistant director and director of the research office, deputy chief engineer, chief engineer, deputy director, and chief scientist of China Electronics Technology; from June 2019 to December 2020 In September, he served as the chief scientist of China Electronics Technology Co., Ltd./Deputy Chief Engineer of China Electronics Instrument Co., Ltd.; from December 2020 to present, he served as the chief scientist of China Electronics Technology Co., Ltd./Deputy Chief Engineer of China Electronics Instrument Co., Ltd.

Jiang Wanshun, male, born in December 1966, Chinese nationality, no permanent residence abroad, graduated from the University of Electronic Science and Technology of China with a master's degree, a researcher-level senior engineer, and the chief scientist of China Electronics Technology Corporation. From August 1989 to August 1991, he served as a teacher at Susong Jiugu Middle School; from April 1994 to June 2019, he served as a researcher at the 41st Institute, head of the Seventh Research Office, director of the Third R&D Department, deputy chief engineer, and chief expert of China Electronics Technology; from June 2019 to December 2020, he served as deputy chief engineer of China Electronics Instrument Co., Ltd.; 2020

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From December 2020 to present, he has served as deputy chief engineer of CETC; starting from January 2021, he has served as chief scientist of CETC.

Wang Feng, male, born in February 1974, Chinese nationality, no permanent residence abroad, graduated from Xi'an University of Electronic Science and Technology, master's degree, researcher-level senior engineer, chief expert of China Electronics Technology, and a young and middle-aged expert with outstanding contributions in Shandong Province. From August 1997 to June 2019, he worked successively in the Computing Center, Room 1, and R&D Department 4 of the Forty-one Institute, and served as assistant director and deputy director of the R&D Department 4; from June 2019 to December 2020, he served as deputy director of the R&D Department 4, deputy general manager, and general manager of the Microwave Instrument Division of China Electronics Instruments Co., Ltd.; from December 2020 to 2021 In January 2020, he was appointed as the general manager of the Microwave Instrument Division of Dianke Siyi; from January 2021 to present, he was appointed as the chief expert of China Electronics Technology.

Deng Jianqin, male, born in July 1980, Chinese nationality, no permanent residence abroad, graduated from Xi'an University of Electronic Science and Technology, doctoral degree, researcher-level senior engineer, chief expert of China Electronics Technology. From July 2007 to June 2019, he worked in Room 7 and R&D Department 3 of No. 41 Institute; from June 2019 to January 2021, he worked in R&D Department 3 and Component R&D Department of China Electronics Instrument Co., Ltd.; from January 2021 to present, he serves as the chief expert of China Electronics Technology.

Du Huiwen, male, born in November 1973, Chinese nationality, no permanent residence abroad, graduated from Xi'an University of Electronic Science and Technology, master's degree, researcher-level senior engineer, chief expert of China Electronics Technology. From July 1997 to June 2019, he worked in the Engineering Center, Room 1, and R&D Department 4 of the Forty-one Institute; from June 2019 to December 2020, he worked in the R&D Department 4 and Microwave Instrument Division of China Electronics Instrument Co., Ltd.; from December 2020 to January 2023, he served as a senior expert of China Electronics Co., Ltd., and from January 2023 to present, he serves as the chief expert of China Electronics Instruments.

(2) Part-time employment of directors, senior managers and other core personnel

As of the signing date of this prospectus, the company’s directors, senior managers and other core personnel hold part-time jobs in other units other than the company and its controlled subsidiaries as follows:

Name of the relationship between the part-time unit and the company Positions of companies with external positions Positions with external parties

relationship

The legal representative and director of the company serve as the legal acting chairman and president.

Siyi No.1

Zou Pengwen

Director, representative, director’s unit manager

Forty/Forty-one Institute Party Committee Secretary China Electronics Asset Management Co., Ltd., a unit controlled by the actual controller

Director Unit controlled by the actual controller

Division

Sun Jianying Director

CETC Electronic Equipment Group has

Director Unit controlled by the actual controller

Ltd.

Zeng Yufeng Director Director of Investment Department of Shenzhen Yuanzhi Venture Capital Company shareholder Yuanzhi Xinghuo

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Co., Ltd. Fund manager Jinan Jingzheng Electronic Technology Co., Ltd.

Director None

company

Chengdu Jiana Haiwei Technology Co., Ltd.

Director Corporate responsibility company controlled by actual controller

Henan Lily Special Optics Research

Supervisor None

Institute Co., Ltd.

Chongqing Xinjing Special Glass Co., Ltd.

Director None

company

Xiamen Youxun Chip Co., Ltd.

Director None

company

China University of Petroleum (East China) Professor None

Qin Yong Independent Director

Qingdao Wendatong Technology Co., Ltd.

Independent Director None

Ltd.

Wang Hongjun Independent Director Shandong University Professor None

Except for the above-mentioned part-time jobs, other directors, senior managers and other core personnel of the Company do not hold part-time jobs outside the company.

(3) Legal compliance of directors, senior managers and other core personnel

In the past three years, the company's directors, senior managers and other core personnel have not been subject to administrative penalties, supervisory and management measures, disciplinary sanctions or self-regulatory measures, or have been investigated by judicial authorities or investigated by the China Securities Regulatory Commission.

(4) Relative relationships of directors, senior managers and other core personnel

As of the signing date of this prospectus, there is no family relationship among the company's directors, senior managers and other core personnel.

(5) Agreements signed and important commitments made by directors, senior managers and other core personnel with the issuer and their implementation status

Agreements signed by directors, senior managers and other core personnel and their performance

As of the signing date of this prospectus, the company has signed labor contracts and other documents with internal directors, senior managers and core technical personnel; and has signed an independent director appointment contract with independent directors. In addition, the company also signed confidentiality commitments and non-competition agreements with core technical personnel.

As of the signing date of this prospectus, the agreements signed by the above-mentioned persons and the company have been performed normally and there is no breach of contract.

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Important commitments made by directors and senior managers

For important commitments made by the company’s directors and senior managers, please refer to “IV. Commitments related to investor protection” in “Section 12 Appendix” of this prospectus.

(6) Company shares held by directors, senior managers, other core personnel and their close relatives

As of the signing date of this prospectus, the company's directors, senior managers, other core personnel and their close relatives directly or indirectly hold the company's shares as follows:

No. Name Position Direct shareholding ratio Indirect shareholding ratio Total 1 Zou Pengwen Chairman, General Manager - 0.00% 0.00% 2 Dong Jigang Employee Representative Director - 0.02% 0.02% 3 Chen Kunfeng Deputy General Manager - 0.05% 0.05% 4 Shi Xianfeng Deputy General Manager, General Legal Counsel - 0.05% 0.05% 5 Wang Jianjun, deputy general manager - 0.03% 0.03% 6 Xu Jun, secretary of the board of directors, deputy general manager - 0.02% 0.02% 7 Jiang Wanshun, core technical staff - 0.05% 0.05% 8 Wang Feng, core technical staff - 0.03% 0.03% 9 Deng Jianqin, core technical staff - 0.03% 0.03% 10 Du Huiwen Core technical staff - 0.03% 0.03%

Total - 0.31% 0.31%

Except for the above circumstances, the company's directors, senior managers, other core personnel and their close relatives do not directly or indirectly hold shares of the company.

As of the signing date of this prospectus, the company's shares held directly or indirectly by the directors, senior managers, and other core personnel of the above-mentioned companies have not been pledged, frozen, or have any litigation disputes.

(7) Changes in directors, supervisors, senior managers and other core personnel in the past two years

In the past two years, the changes in the company’s directors, supervisors, senior managers and core technical personnel are as follows:

Changes in board members

As of January 1, 2024, the members of the company's board of directors are: Zhang Hongwei, Zhong Li, Fang Gefeng, Xu Bin, Liao Cheng, Xu Guojun, Qin Yong, Wang Hongjun, and Dong Jigang, of which Dong Jigang is an employee director.

(1) On May 7, 2024, due to the expiration of the term of the company’s first board of directors, the issuer’s 11th employee representative meeting elected Dong Jigang as an employee director.

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(2) On May 9, 2024, due to the expiration of the term of the company's first board of directors, the issuer convened the 2023 annual shareholders' meeting, reviewed and approved the "Proposal on the General Election of the Company's Board of Directors and Nomination of Directors of the Second Board of Directors", and elected Zhang Hongwei, Fang Gefeng, Zhong Li, Xu Bin, Liao Cheng, Kang Jianling, Qin Yong, and Wang Hongjun as non-employee directors.

(3) On May 22, 2025, the issuer held the 2024 Annual General Meeting of Shareholders, which reviewed and approved the "Proposal on the Proposed Change of Directors of the Company", removed Fang Gefeng, Xu Bin, and Liao Cheng from their positions as directors, and elected Sun Jianying and Zeng Yufeng as directors.

(4) On July 7, 2025, the issuer held the first extraordinary shareholders' meeting in 2025, reviewed and approved the "Proposal on the Election of Directors and Vice Chairman of the Company", and elected Zou Pengwen as a director.

(5) On May 20, 2026, Zhang Hongwei and Zhong Li resigned due to reaching the statutory retirement age. The 13th meeting of the issuer’s second board of directors made a resolution to elect Zou Pengwen as chairman.

The above-mentioned changes in directors have fulfilled necessary legal procedures and complied with relevant laws, regulations and the company's articles of association. The above-mentioned changes in the company's directors in the past two years have not had a significant adverse impact on the company's normal operations.

Changes in the members of the Supervisory Board

As of January 1, 2024, the members of the company's board of supervisors are: Lu Shaowu, Xue Yongjian, Sun Lei, Li Xishun, and Wang Jianghong, among whom Li Xishun and Wang Jianghong are employee supervisors.

(1) On May 7, 2024, due to the expiration of the term of the company’s first supervisor, the 11th Employee Representative Conference of China Electronics Co., Ltd. elected Li Xishun and Wang Jianghong as employee supervisors.

(2) On May 9, 2024, due to the expiration of the term of the company’s first supervisor, the issuer held the 2023 annual shareholders’ meeting, reviewed and approved the “Proposal on the Election of the Company’s Supervisory Board and Nomination of Supervisors for the Second Supervisory Board”, and elected Lu Shaowu, Li Hanchen, and Hao Yingwen as non-employee supervisors.

(3) In accordance with the provisions of the "Company Law", "Transitional Arrangements Related to the Implementation of Supporting Systems and Rules of the New Company Law", "Guidelines on the Articles of Association of Listed Companies" and other relevant laws and regulations, and in combination with the company's actual situation and needs, the company held a 2024 meeting on May 22, 2025. The Annual General Meeting of Shareholders reviewed and approved the "Proposal on the Cancellation of the Company's Board of Supervisors". The company no longer has a board of supervisors. The powers of the board of supervisors stipulated in the "Company Law" are exercised by the Audit Committee of the Board of Directors. Lu Shaowu, Li Hanchen, Hao Yingwen, Li Xishun and Wang Jianghong no longer serve as supervisors of the company. The above-mentioned changes in supervisors have fulfilled necessary legal procedures and complied with relevant laws, regulations and the company's articles of association.

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According to the prospectus of China Electronics Cosi Instrument Technology Co., Ltd. The above-mentioned changes in the company's supervisors in the past two years have not had any significant adverse impact on the company's normal operations.

Changes in senior management personnel

As of January 1, 2024, the company's senior management personnel are as follows: General Manager Fang Gefeng, Deputy General Managers Chen Kunfeng, Shi Xianfeng, Wang Jianjun, Xiang Changbo, Chief Accountant Yu Rufeng, and Secretary of the Company's Board of Directors Xu Jun.

(1) On May 9, 2024, the first meeting of the issuer’s second board of directors made a resolution to appoint Fang Gefeng as the company’s general manager, Chen Kunfeng, Shi Xianfeng, Wang Jianjun, and Xiang Changbo as the company’s deputy general managers, Yu Rufeng as the company’s chief accountant, and Xu Jun as the company’s board secretary.

(2) On January 20, 2025, the fifth meeting of the issuer’s second board of directors made a resolution to remove Fang Gefeng from the post of general manager of the company and remove Yu Rufeng from the post of chief accountant.

(3) On July 7, 2025, the seventh meeting of the issuer’s second board of directors made a resolution to appoint Zou Pengwen as the general manager of the company.

(4) On December 4, 2025, the ninth meeting of the issuer’s second board of directors made a resolution to appoint Shi Xianfeng as the company’s general legal counsel, Li Huiling as the company’s financial director, and Xu Jun as the company’s assistant to the general manager. (5) On July 6, 2026, the issuer’s 15th meeting of the second board of directors made a resolution to remove Xiang Changbo from the position of deputy general manager, remove Li Huiling from the positions of financial director and financial person in charge, appoint Han Fei as the company’s chief accountant and financial person in charge, remove Xu Jun from his position as assistant to general manager, and appoint Xu Jun as the company’s deputy general manager. The above-mentioned changes in senior management personnel have fulfilled necessary legal procedures and complied with relevant laws, regulations and the company's articles of association. The above-mentioned changes in the company's senior management personnel in the past two years have not had a significant adverse impact on the company's normal operations.

Changes in other core personnel

As of January 1, 2024, the company's core technical personnel are: Fang Gefeng, Nian Fushun, Liu Zushen, Jiang Wanshun, and Xiang Changbo.

(1) Fang Gefeng and Liu Zushen resigned due to reaching the statutory retirement age.

(2) On August 11, 2025, the issuer identified Wang Feng, Deng Jianqin, and Du Huiwen as core technical personnel after internal review.

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(3) On July 6, 2026, the 15th meeting of the issuer’s second board of directors made a resolution to no longer recognize Xiang Changbo as the company’s core technical personnel.

The changes in the company's directors, supervisors, and senior managers in the past two years were mainly due to optimization of the company's governance structure, personnel adjustments, or retirement of personnel upon reaching the legal age. There have been no major adverse changes in the company’s directors, supervisors and senior managers in the past two years.

(8) External investments of directors, senior managers and other core personnel related to the company and its business

Except for directly or indirectly holding shares of the issuer, as of the signing date of this prospectus, the company's current directors, senior managers and other core personnel have no other external investments.

As of the signing date of this prospectus, the above-mentioned external investments by the issuer's directors, senior managers and other core personnel are not related to the company's business, and there are no relevant commitments and agreements, nor any conflicts of interest with the company.

(9) Remuneration of directors, senior managers and other core personnel

Salary composition, basis for determination and procedures performed

The remuneration of directors, senior managers and core technical personnel serving in the company mainly consists of basic salary, job salary, performance salary, allowances and benefits, and medium and long-term incentives. Based on the relevant documents of Diankesi Instrument, combined with comprehensive factors such as the company's annual operating performance, individual annual work performance and assessment results, an annual remuneration plan is formulated and submitted to the company's board of directors for review and confirmation before implementation.

According to the "Rules of Procedure of the Remuneration and Appraisal Committee of the Board of Directors", the Remuneration and Appraisal Committee is a specialized working organization established by the Board of Directors. It is mainly responsible for the formulation, management and evaluation of the company's senior management remuneration system, reporting work to the Board of Directors and being accountable to the Board of Directors. In accordance with the provisions of relevant laws, regulations or the Articles of Association or the authorization of the board of directors, the remuneration committee may also formulate the remuneration system or remuneration plan for relevant directors.

The job responsibilities, performance appraisal system and performance appraisal indicators of senior managers formulated by the Remuneration and Appraisal Committee will be implemented after approval by the company's Board of Directors. The remuneration plan for directors formulated by the Remuneration and Assessment Committee shall be submitted to the shareholders' meeting for approval after being reviewed by the board of directors, and the remuneration plan for senior management personnel shall be directly submitted to the company's board of directors for approval.

Proportion of the total remuneration of directors, supervisors, senior managers and other core personnel to total profits. During the reporting period, the total remuneration of the company’s directors, supervisors, senior managers and other core personnel (including independent

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The proportion of allowances received by independent directors to total profits is as follows:

Unit: 10,000 yuan project 2025 2024 2023

Total salary 1,766.69 1,533.68 1,665.44 Total profit 44,831.44 26,762.92 18,230.90

Proportion 3.94% 5.73% 9.14%

Note 1: The total remuneration includes wages, bonuses and social insurance and provident funds borne by the company, and does not include equity incentive expenses; Note 2: The above table is based on the remuneration disclosure of directors, supervisors, senior managers and other core personnel during the period when they held relevant positions. Remuneration while working in the company but not holding relevant positions is not included in the statistics.

Income received from the issuer and its affiliates in the past year, as well as other benefits and pension plans

In 2025, the remuneration received by the company’s directors, senior managers and other core personnel from the company (including subsidiaries) is as follows:

Unit: 10,000 yuan

Received from the company in 2025

Serial number Name Position Salary status of affiliated companies in the last year

Salary (10,000 yuan)

1 Zou Pengwen Chairman and General Manager 75.14 -

2 Sun Jianying Director - CETC Semiconductor Materials Co., Ltd. 3 Zeng Yufeng Director - Shenzhen Yuanzhi Venture Capital Co., Ltd. 4 Kang Jianling Independent Director 7.14 -

5 Qin Yong Independent Director 7.14 -

6 Wang Hongjun Independent Director 7.14 -

7 Dong Jigang Employee Representative Director 94.95 -

8 Chen Kunfeng Deputy General Manager 136.71 -

9 Shi Xianfeng Deputy General Manager, General Counsel 133.20 -

10 Wang Jianjun Deputy General Manager 131.85 -

11 Xu Jun Secretary of the Board of Directors, Deputy General Manager 75.72 -

Fushun, 12 years old, core technical staff 148.21 -

13 Jiang Wanshun Core technical staff 136.64 -

14 Wang Feng Core technical staff 121.88

15 Deng Jianqin Core technical staff 116.80

16 Du Huiwen Core technical staff 121.56

Note 1: Total remuneration includes wages, bonuses and social security and provident funds borne by the company, excluding equity incentive expenses; Note 2: Mr. Zou Pengwen will serve in the company from June 2025, and the above table shows the remuneration during his tenure;

Note 3: Some of the personnel in the above table were not directors, senior managers and other core personnel of the company throughout 2025, but worked in the company throughout the year. The above table discloses their annual salary;

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Note 4: Mr. Han Fei will not be working in the company in 2025, so he is not listed in the above table.

8. Equity incentives or option incentives and related arrangements that the issuer has formulated or implemented

(1) Basic information on equity incentives implemented

As of the date of signing of this prospectus, the company's employee shareholding platform is Siyi Development. For its basic information, please refer to "5. Basic information on major shareholders and actual controllers holding more than 5% of the issuer's shares (/3) Basic information on other major shareholders holding more than 5% of the issuer's shares/3. Siyi Development" in this chapter.

In addition, as part of the company's overall plan for mixed ownership reform, the company simultaneously introduced the 41 employee stock ownership platform Siyi Innovation during the mixed ownership reform in March 2020. Siyi Innovation directly holds 1.88% of the issuer's shares. Its basic situation is as follows:

Company name Bengbu Siyi Innovation Enterprise Management Center (Limited Partnership)

Executive Partner Bengbu Siyi No. 2 Enterprise Management Co., Ltd.

Registration address: Research Building, No. 726 Huaguang Avenue, Bengbu City (Room 307, 3rd Floor)

Main business location: Scientific Research Building, No. 726 Huaguang Avenue, Bengbu City (Room 307, 3rd Floor)

Business Type Limited Partnership

Amount of capital contribution RMB 38,186,347

Unified social credit code 91340300MA2UGQ129R

Date of establishment January 22, 2020

Enterprise management services (excluding asset management). (Projects that require approval according to law are subject to relevant business scope

Business activities can only be carried out after approval from the department)

Main business and relationship with the issuer Siyi Innovation is an employee stock-holding platform of 41. In addition to equity investment in the issuer, it has not yet engaged in the main business relationship and other businesses.

As of the signing date of this prospectus, the partners and capital contributions of Siyi Innovation are as follows:

Serial number Partner name Amount of capital contribution (10,000 yuan) Capital contribution ratio Partner type 1 Bengbu Siyi No. 2 Enterprise Management Co., Ltd. 0.7000 0.0183% General partner

Bengbu Siyi Gongjin Enterprise Management Center (with

2 1,808.4935 47.3597% limited partner (limited partnership)

Bengbu Siyi Gongtuo Enterprise Management Center (with

3 1,005.9134 26.3422% limited partner (limited partnership)

Bengbu Siyi Co-Ju Enterprise Management Center (with

4 1,003.5278 26.2798% limited partner (limited partnership)

Total 3,818.6347 100.0000% -

As of the signing date of this prospectus, except for the equity incentive arrangements that have been implemented by the company as disclosed above, the company has no other ongoing equity incentives or other institutional arrangements for directors, senior managers, other core personnel, and employees.

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(2) Details of the two shareholding platforms

Background of the establishment of the two shareholding platforms

In order to fully implement the spirit of the 19th National Congress of the Communist Party of China, deepen the reform of state-owned enterprises, innovate the incentive distribution mechanism of state-controlled mixed-ownership enterprises, mobilize the enthusiasm and creativity of enterprise employees, and establish and improve a long-term incentive and restraint mechanism, the issuer is carrying out mixed-ownership reform to introduce external investors while carrying out the company's own employee stock ownership and thus establishing Siyi Development. In addition, considering that the Forty-one Institute has made a huge historical contribution to the industrialization and marketization capabilities of China Electronics Instrument Co., Ltd. by transferring assets, business, and personnel to China Electronics Instrument Co., Ltd., based on considerations such as balancing the development of the Forty-one Institute and promoting cutting-edge research on electronic measuring instruments, the company simultaneously introduced the employees of the Forty-one Institute to follow the investment and shareholding platform Siyi Innovation during the mixed ownership reform.

Basis for selecting partners

(1) Issuer employee stock ownership platform

According to the "Employee Stock Ownership Plan" and "Employee Stock Ownership Management Measures", first-time participants are scientific researchers, operating managers and business backbones who work in key technical positions, management positions and business positions and have a direct or significant impact on the issuer's operating performance and sustainable development. Subsequent implementation will be in accordance with the "Employee Stock Ownership Dynamic Adjustment Plan".

(2) Forty-One Employee Stock Ownership Platform

According to the "Employee Stock Ownership Plan" and "Employee Co-investment Management Measures", the participants are the core technology, management and market personnel of the No. 41 Headquarters, and the co-investment participants are determined based on factors such as position, professional title, seniority, annual assessment, academic degree and special contribution. The specific employee follow-up investment stock ownership plan formed by No. 41 shall be submitted to the party committee, employee congress, and executive meeting of the institute for review and approval before implementation.

Management decision-making process, whether the person acting in concert with the issuer’s controlling shareholder and actual controller (1) Issuer’s employee stock ownership platform

The management company Bengbu Siyi No. 1 Enterprise Management Co., Ltd. is the management entity of the employee stock ownership plan and is responsible for the daily supervision and management of employee stock ownership. The management company has set up an employee stock ownership management office, which relies on the personnel, investment, and board affairs management departments of Dianke Siyi to carry out specific employee stock ownership management work.

The Remuneration and Appraisal Committee under the Board of Directors of Dian Kesi Instrument serves as the dispute coordination body within employee shareholding and is responsible for internal communication, coordination, and arbitration of disputes in the employee shareholding management process.

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The management company Bengbu Siyi No. 2 Enterprise Management Co., Ltd. is the management entity of the employee follow-up investment and shareholding plan and is responsible for the daily supervision and management of employee follow-up investment and shareholding. The management company has set up an employee and investment shareholding management office, which relies on the 41 human resources, investment, and comprehensive management departments to carry out specific employee shareholding management work. Regarding the withdrawal and entry of co-invested employees, profit distribution of co-invested stock holding plans, disposal of co-invested shares and other matters that occur on the employee co-invested platform, the management company must report to the Party Committee of the 41 Institute before specific organization and implementation.

The Human Resources Department of No. 41 Institute is the main body for coordinating disputes within employees and investment and shareholding, and is responsible for internal communication, coordination and arbitration of disputes in the management process of employees and investment and shareholding.

According to the description and verification of the two shareholding platforms, combined with the management methods of the two shareholding platforms, there is no concerted action arrangement between the two shareholding platforms and the issuer's controlling shareholder and actual controller China Electronics Technology.

Capital contribution transfer and withdrawal mechanism, stock disposal and profit and loss distribution methods during the duration and after expiration

In order to realize the dynamic adjustment of equity incentives and avoid the solidification and rigidity of employee shareholding, the equity transfer, exit and profit and loss distribution of the two employee shareholding platforms are mainly set as follows:

(1) Issuer employee stock ownership platform

① Employees are not allowed to withdraw from shareholdings on their own unless the following circumstances occur:

A. Shareholding employees leave the company due to reasons such as resignation, transfer, retirement, death or dismissal;

B. Shareholding employees are demoted, downgraded, etc. that require adjustment of the number of shares held;

C. Shareholding employees have the following major violations of laws and regulations:

a Shareholding employees are held criminally responsible according to law due to illegal and criminal acts;

b. A shareholding employee is dismissed in accordance with the company's relevant management regulations due to serious violation of the company's rules and regulations; c. A shareholding employee causes significant economic losses to the company due to intentional or gross negligence during work; d. A shareholding employee causes major adverse effects to the company due to violations of laws, regulations, professional ethics, serious dereliction of duty, etc.;

e. Shareholding employees violate partnership regulations and refuse to implement partnership decisions;

Other major violations of laws and regulations determined by fDian Cosi Instrument.

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E. Other circumstances that require withdrawal of shares as determined by Diankesiyi.

② Confirmation of the shareholding qualifications of non-shareholding employees will be carried out after July every year. With June 30 of that year as the base date, Denkosiyi will establish a waiting list of new shareholding employees. The list will be valid until June 30 of the following year. When an internal capital share transfer occurs, employees who are listed on the waiting list of shareholdings will subscribe in order.

③ Without the approval of the management company, shareholding employees may not mortgage, pledge, guarantee, donate or create any third-party interests in their shares held in the limited partnership.

④ During the duration of the employee stock ownership plan, the company's board of directors is responsible for formulating the company's annual profit distribution plan and submitting it to the company's shareholders' meeting for review. The company does not promise annual dividend returns to employees who participate in the employee stock ownership plan. Employees have the same rights and interests as state-owned shareholders and other shareholders, and may not receive dividend income in priority over state-owned shareholders and other shareholders.

(2) Forty-One Employee Stock Ownership Platform

① Employees are not allowed to withdraw from their shareholdings unless the following circumstances occur:

A. Employees who hold shares with investors leave 41 due to reasons such as resignation, transfer, retirement, death or dismissal; B. Employees who hold shares with investors are demoted, downgraded, etc., which requires adjustment of the number of shares they hold;

C. The following major violations of laws and regulations occur among employees who follow investments and hold shares:

a. Being held criminally responsible in accordance with the law due to illegal and criminal acts;

b. Being expelled in accordance with relevant management regulations due to serious violation of the rules and regulations of No. 41 Institute and Dian Kesi; c. Caused significant economic losses to No. 41 Institute and Dian Kesi due to intentional or gross negligence during work; d. Caused major adverse effects to No. 41 Institute and Dian Kesi due to violations of laws and regulations, violation of professional ethics, serious dereliction of duty, etc.;

e Violates the regulations of the partnership and refuses to implement the decisions of the partnership;

f Other major violations of laws and regulations identified by No. 41 Institute and Dianke Siyi.

D. The listing lock-up period ends and the shareholding reduction is carried out in accordance with the management company's centralized financing;

E. Other circumstances that require withdrawal of shares as determined by No. 41.

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② Confirmation of the shareholding qualifications of non-shareholding employees will be carried out after July of each year. With June 30 of that year as the base date, No. 41 will establish a waiting list of new shareholding employees. The list will be valid until June 30 of the following year. When employees withdraw from the investment, they will be included in the waiting list of shareholding employees and subscribe in order.

③ Without the consent of the management company, the shares of the co-investment plan held by the co-investing employees shall not be used for mortgage, pledge, guarantee, debt repayment, donation or establishment of any third-party rights and interests.

④The management company can make corresponding profit distributions based on the profit distribution situation of Diankesiyi after deducting reasonable costs such as partnership operation and management expenses, taxes payable, etc. No. 41 does not promise annual dividend returns to employees who participate in the employee follow-up investment and stock ownership plan. The follow-up investment and shareholding platform enjoys the same rights and interests as the state-owned shareholders and other shareholders of Dian Kesiyi, and shall not receive dividend income in priority over state-owned shareholders and other shareholders.

Share lock-up period

(1) Issuer employee stock ownership platform

The lock-up period for the limited partnership investment shares directly held by stock-holding employees participating in the first employee stock ownership plan and the corresponding indirectly held company equity (including subsequent equity interests newly added due to dynamic adjustments, etc.) is set to 36 months. From the end of the aforementioned lock-up period to the company's listing (initial public offering of stocks and becoming a listed public company), employee stock ownership will continue to be locked.

(2) Forty-One Employee Stock Ownership Platform

The lock-up period for the limited partnership partnership shares directly held by the co-investors participating in the co-investment plan and the corresponding indirect equity holdings of Diankesiyi (including subsequent equity increases due to shareholding adjustments, etc.) is set to 36 months. From the end of the aforementioned lock-up period to the listing of Diankesiyi, employees’ shares held by investors will continue to be locked.

(3) Regarding this issuance and listing, Siyi Development and Siyi Innovation have issued a commitment on share locking, "Within 36 months from the date of listing of the company's shares, the company's pre-IPO shares held directly or indirectly by the company will not be transferred or entrusted to others to manage, nor will the company repurchase such shares."

(3) Impact on the issuer’s operating conditions, financial status, and changes in control rights

Impact on business conditions

The formulation and implementation of the company's equity incentives are conducive to attracting and retaining the company's outstanding talents, improving the stability of the company's management and business backbones, and further stimulating employees' work enthusiasm, thereby promoting the company's long-term development.

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Impact on financial status

(1) The amount of share-based payment expenses confirmed in each period of the reporting period

During the reporting period, the share-based payment amounts recognized by the company in 2023, 2024 and 2025 were 2.5336 million yuan, 5.2398 million yuan and 6.7056 million yuan respectively.

(2) The "Employee Stock Ownership Management Measures" arrange the lock-up period for incentive objects' shareholdings

The company's "Employee Stock Ownership Management Measures" arrange the lock-in period for incentive objects' shareholdings as follows:

“The capital contribution share of the limited partnership directly held by stock-holding employees participating in the first employee stock ownership plan in 2020 and the corresponding indirect holdings of the company’s equity (including subsequent equity newly added due to dynamic adjustments, etc.) are set to a lock-in period of 36 Months. In order to better exert the medium- and long-term incentive and restraint effect of key employee shareholdings, employee shareholdings will continue to be locked from the end of the aforementioned lock-up period until the company goes public (the initial public offering of shares becomes a listed public company); employees who already hold shares before the company’s public offering are not allowed to transfer their shares during the company’s initial public offering, and should commit to a lock-up period of no less than 36 months from the date of the company’s listing.”

At the same time, the "Employee Stock Ownership Management Measures" also stipulates that if a stock-holding employee leaves the company due to reasons such as resignation, transfer, retirement, death or dismissal, he should withdraw his shares within no more than 6 months in principle. When withdrawing shares, the exit price is as follows:

Exit time period Exit price

The capital contribution share of the holding platform can only be transferred to other partners or other qualified employees of the subsidiary limited partnership managed by the management company, i.e. Siyi No. 1 (i.e. internal transfer); the transaction price will be determined by negotiation between the two parties based on the reference price proposed by the management company.

If the negotiation fails, the exit price may refer to the transferor’s original acquisition price or the indirect holding of the company’s equity before listing.

It should be determined based on the company's audited net asset value per share in the previous year; the reference price proposed by the management company will be based on the medium and long-term incentive attributes of employee stock ownership, with appropriate reference to the original investment price of shareholding employees, the company's audited net asset value in the previous year, and the company's shareholders in the past year or the most recent

(Including employees) Equity transaction price and other factors are comprehensively determined

During the post-listing lock-up period, only internal transfers are possible, and the transfer price will be determined by the transferor and the transferee through negotiation.

The management company can collect the willingness of shareholding employees to reduce their shareholdings and coordinate the formulation of a shareholding platform through Siyifa. After the lock-up period expires

Plan to transfer company shares to a third party

According to the "Employee Stock Ownership Management Measures", if the incentive target leaves the company before 36 months after the company is listed, his or her indirect shareholdings will not be able to be freely cashed in at fair market value. In combination with the relevant provisions of the "Accounting Standards for Business Enterprises", the company determines that the waiting period for relevant equity incentives is from the date of grant to the date of 36 months after the company's listing. (3) Reasonability of the basis for determining the fair value of share-based payment

The company mainly uses the valuation of shares purchased/transacted by external investors during the same period as the determination of fair value in share-based payments.

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basis.

In March 2020, the company's employee stock ownership platform and other new external shareholders increased capital to the issuer at the same price of 2.466 yuan/share, and the capital increase price was determined based on the issuer's net asset assessment results filed by China Electronics Technology, which is fair. Therefore, when Siyi Development and Siyi Innovation invested in the company, the share price was equal to the fair market value, and no share payment processing was required.

From August 2024 to March 2025, the company's shareholder Guoyuan Fund transferred the company's equity to Mingzhi Changxin, Aviation Industry Investment, Honghua Qianyuan, and Honghua Qianyuan No. 3 in batches. The transfer price was 9.2028 yuan/share. Based on the principle of prudence, the company determines that the fair value of the company's shares in 2023, 2024 and 2025 is 9.2028 yuan/share. During this period, new incentive objects will recognize share-based payment expenses based on the number of shares they accept and withdraw based on the difference between the grant price and the fair value.

In summary, the company mainly uses the valuation of external investors' shareholdings/transactions in the same period as the basis for determining the fair value of share-based payments, and the relevant determinations are reasonable.

(4) Calculation and related accounting treatment of share-based payment

The company strictly follows the provisions of "Accounting Standards for Business Enterprises No. 11 - Share-based Payment" and "Guidelines for the Application of Regulatory Rules - Issuance Category No. 5". Equity-settled share-based payments that are exercisable immediately after grant in exchange for employee services should be included in relevant costs or expenses based on the fair value of the equity instruments on the date of grant, and the capital reserve should be increased accordingly; for share-based payments with a waiting period, the share-based payment expenses should be apportioned during the waiting period using appropriate methods and included in regular profits and losses.

The calculation and related accounting treatment of the company's share-based payment are as follows: Based on the number of shares withdrawn by new incentive objects, the share-based payment is calculated based on the difference between the grant price and the fair value. The waiting period is from the date of grant to the date of 36 months after the company's listing. The share-based payment expenses are allocated to relevant costs or expenses based on the department and job responsibilities of the awarding personnel, and the capital reserve is increased at the same time.

In summary, the aforementioned accounting treatment complies with the provisions of the Accounting Standards for Business Enterprises and the China Securities Regulatory Commission's "Guidelines on the Application of Supervisory Rules - Issuance Category No. 5".

Impact on changes in control rights

According to the number and proportion of shares directly and indirectly held by each shareholding platform and employees, the company's existing equity incentives do not have a significant impact on the company's equity structure and will not lead to changes in the company's actual controller.

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ation.

9. Issuer’s employees and their social security situation

(1) Basic information of employees

Number of employees and changes

At the end of each reporting period, the changes in the number of registered employees of the issuer and its subsidiaries are as follows:

Unit: person

Project end of 2025 end of 2024 end of 2023

Number of registered employees 1,871 1,787 1,787

Staff professional structure, academic composition and age distribution

As of December 31, 2025, the work nature, education level and age distribution of the issuer and its subsidiaries’ employees are as follows:

Classification by nature of work Number of people (person) Percentage

Finance 15 0.80% Procurement and logistics 33 1.76% Management 137 7.32% Manufacturing 373 19.94% Sales and sales support 246 13.15% Research 1,028 54.94% Security and others 39 2.08% Total employees 1,871 100.00%

Classification by education level Number of people (person) Proportion

Master's degree and above 871 46.55% Bachelor's degree 673 35.97% College degree 215 11.49% College degree or below 112 5.99% Total employees 1,871 100.00%

Classification by age Number of people (person) Proportion

Under 30 years old 580 31.00% 31-40 years old 764 40.83% 41-50 years old 404 21.59% Over 50 years old 123 6.57%

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Total employees 1,871 100.00%

(2) The issuer’s implementation of the social security system

The company implements a labor contract system in accordance with relevant national and local regulations. In accordance with relevant national regulations and provincial and municipal supporting documents on the establishment and improvement of the social security system, the company handles social insurance such as pension insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance for regular employees, and establishes a housing provident fund system.

Number of employees of the issuer who pay social insurance and housing provident fund

At the end of each reporting period, the issuer’s social security and housing provident fund payment status is as follows:

Item End of 2025 End of 2024 End of 2023 Number of employees at the end of the period (person) 1,871 1,787 1,787 Number of insured employees (person) 1,870 1,787 1,780 Number of uninsured employees (person) 1 0 7 Number of housing provident fund contributors (person) 1,870 1,787 1,779Number of people who have not paid provident fund (person) 1 0 8

At the end of each reporting period, except for retired and re-employed employees, the issuer's uninsured and provident fund-paying employees are all new employees in the month. In accordance with relevant laws and regulations, the company will make additional social insurance payments for new employees in the following month, and will uniformly pay housing provident funds for new employees starting from the next month. At the end of each reporting period, the issuer had no unpaid social insurance and housing provident funds.

Compliance certificate issued by the competent authority for the company’s payment of social insurance and housing provident fund

Dianke Siyi has obtained the "Public Credit Information Report of Business Entities in Shandong Province (Special Edition for Listing with No Violation and Violation Record Certification)", and its subsidiary Siyi Technology (Anhui) has obtained the "Public Credit Information Report for Legal Persons and Unincorporated Organizations (No Violation and Violation Certification Edition)", confirming that there were no administrative penalties in terms of human resources and social security during the reporting period.

(3) Labor dispatch and labor outsourcing

Labor dispatch

At the end of each reporting period, the number of employees of the company was 1,787, 1,787 and 1,871 respectively, and the number of labor dispatchers was 151, 150 and 153 respectively. During the reporting period, the issuer did not have the ratio of labor dispatch employment exceeding 10% of the total employment.

The company's labor dispatch personnel are not important positions in the company's production and operation, but mainly work in electrical installation, warehouse management and other types of positions.

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position, meeting the requirements of temporary, substitute and auxiliary services. At the end of each reporting period, the number of labor dispatch workers accounted for less than 10% of the total number of workers. There were no labor dispatch employment violations, and there were no disputes or lawsuits with labor dispatch companies or employees.

During the reporting period, all units that provided labor dispatch services to the company held a valid "Labor Dispatch Business License" and had relevant qualifications for labor dispatch. In accordance with national regulations and labor dispatch agreements, the labor dispatch unit shall pay social insurance premiums and housing provident funds for dispatched employees. The nature of labor dispatch positions complies with the provisions of the "Interim Provisions on Labor Dispatch" for the use of dispatched workers in temporary, auxiliary or alternative jobs.

Labor outsourcing

Depending on the position and nature of the business, the company will outsource part of the business or auxiliary work. During the reporting period, the business scope of the company's main labor service suppliers can cover their service content, and they are all independently operated legal entities. They do not serve exclusively or mainly for the issuer. Their business implementation and personnel management comply with relevant laws, regulations and industry practices. The issuer's business with them does not have the risk of causing a significant adverse impact on the issuer's production and operations.

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Section 5 Business and Technology

1. The issuer’s main business and main products

(1) Main business situation

Diankesiyi always regards innovation as the core driving force of development. Through continuous R&D investment and technical team building, it has created a R&D platform with continuous innovation capabilities and achieved continuous independent innovation of technology and products. As of December 31, 2025, the company and its subsidiaries had obtained a total of 584 authorized patents, including 541 invention patents. It is the electronic measuring instrument company with the largest number of authorized invention patents in China. The company actively participates in the formulation of many international, national and industry standards in the field of electronic measurement, continuously improving the industry's voice and competitiveness. As of December 31, 2025, the company has presided over the preparation of 1 international standard, 3 national standards, and 3 group standards, and participated in the preparation of 12 national standards and 1 group standard. The company is also the chairman unit of the China Electronic Instrument Industry Association, the source of original technology for high-end instruments and meters, and the subject and technology center for high-end electronic measuring instruments.

As a national strategic scientific and technological force in the field of electronic measurement in my country, Diankesi has undertaken more than 300 major and key projects at the national, provincial and ministerial levels, including the "Ministry of Science and Technology's Key Project on Basic Scientific Research Conditions and Major Scientific Instruments and Equipment Development" 20 Relevant results have been widely used in communications, industrial electronics, aerospace and other fields, and have provided key test guarantees for major national projects such as "Manned Spaceflight", "Lunar Exploration Project", "Beidou Navigation" and "Meridian Project", and have effectively promoted the rapid development of my country's electronic information industry. At the same time, the company has won a number of national, provincial and ministerial level honors, among which the national awards include the “First and Second Prizes of the National Science and Technology Progress Award”, “National Manufacturing Single Champion Enterprise”, “China Patent Award Excellence Award” and “State Council National Science and Technology Progress Award”.

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State-owned Assets Supervision and Administration Commission Corporate Governance Demonstration Enterprise", etc.; provincial and ministerial awards mainly include "Special Prize and First Prize of Shandong Province Science and Technology Progress Award" and "First Prize of Shandong Province Technology Invention Award". As of December 31, 2025, the company has 1 national-level leading talent, 1 Hundred-Thousand-level Talent, 2 Chinese Outstanding Engineers, 12 State Council Special Allowance Experts, 2 Chief Scientists and 3 Chief Experts of China Electronics Technology Group, and more than 30 provincial and ministerial-level talents.

(2) Main products

The company's main products include complete electronic measuring instruments, test systems and complete components. In each reporting period, the company's complete machines, test systems and complete components accounted for 99.34%, 99.43% and 99.33% of its main business revenue respectively.

Complete machine

The types of contracts signed by the company's complete machine product business are divided into product sales and entrusted development. The products delivered to customers through product sales and entrusted development are all complete machine products provided according to the needs of customers in different usage scenarios.

(1) Complete machine-product sales

The company's complete products can be subdivided into four categories, namely microwave/millimeter wave measuring instruments, photoelectric measuring instruments, communication test instruments and basic measuring instruments, as follows:

①Microwave/millimeter wave measuring instruments

Microwave/millimeter wave measurement instruments are the company's core product category, with frequency ranges ranging from microwaves, millimeter waves to terahertz frequency bands. Specific products include signal generators, signal/spectrum analyzers, vector network analyzers, terahertz test instruments, solid-state power amplifiers, etc., which are widely used in different test scenarios in industrial electronics, communications, aerospace, university science and education and other fields.

A. Signal generator

A signal generator is an electronic measuring instrument that can generate electromagnetic signals of specific frequency, amplitude, and modulation pattern. It provides electromagnetic signals that meet technical requirements for electronic measurement and metrology. It is one of the most widely used electronic measuring instruments. Its product forms include desktop, handheld, modular, etc., and are mainly used in different test scenarios in the fields of industrial electronics, communications, aerospace, university science and education, etc.

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B. Signal/spectrum analyzer

Signal/spectrum analyzers can measure the frequency, amplitude, modulation, distortion, spurious and noise of electromagnetic signals. Product forms include desktop, handheld, modular, etc., and are mainly used in different test scenarios in the fields of industrial electronics, communications, aerospace, university science and education, etc.

C. Vector network analyzer

Vector network analyzer is an instrument for measuring network characteristic parameters. It has the functions of multi-port excitation signal generation, multi-channel signal acquisition and analysis, and network parameter test and analysis. It is an essential electronic test instrument in the field of radio frequency and microwave. The product forms include desktop, handheld, modular, etc., and are mainly used in different test scenarios in industrial electronics, communications, university science and education, aerospace and other fields.

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D. Terahertz testing equipment

Terahertz testing instruments can provide higher frequency band testing solutions than traditional coaxial microwave instruments, and have complete testing capabilities such as S-parameter testing, signal generation, and spectrum analysis. They are high-end electronic measuring instruments in the field of terahertz technology and are mainly used in different testing scenarios in industrial electronics, university science and education, communications, aerospace and other fields.

E. Solid state power amplifier

Solid-state power amplifiers can provide high-power radio frequency signals for test and measurement. They have the characteristics of wide band, high power, and high reliability. They can be remotely controlled in a variety of ways, and have rich functions such as power display, power adjustment, and protection. They are the core instruments and equipment required for high-power test and measurement. They are widely used in different test scenarios in the fields of industrial electronics, communications, aerospace, and university science and education.

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②Photoelectric measuring instruments

Optoelectronic measurement instruments are the company's core products, specifically including spectrum analyzers, light wave component analyzers, light sources, fiber fusion splicers, optical time domain reflectometers and other instruments, which are widely used in different test scenarios in communications, industrial electronics, university science and education, aerospace and other fields.

A. Spectrum analyzer

Spectrum analyzer is an electronic measuring instrument used to measure and analyze performance indicators such as wavelength distribution, center wavelength, bandwidth and power of optical signals. It provides basic technical means for optoelectronic testing and measurement. It is one of the most widely used optical measuring instruments and is mainly used in different testing scenarios in the fields of communications, industrial electronics, university science and education, aerospace and other fields.

B. Lightwave component analyzer

The optical wave component analyzer is a measurement and analysis instrument for high-speed electro-optical (E/O) devices, optical-electrical (O/E) devices, optical-optical (O/O) chips or device frequency response parameters in optical fiber communication systems. It is an indispensable optoelectronic measurement instrument for the design, development and verification of high-speed optoelectronic integrated circuits. It has become the current industry standard for testing the bandwidth of optoelectronic chips.

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The mainstream technical means of measurement are mainly used in different test scenarios in industrial electronics, communications, university science and education, aerospace and other fields.

C. Light source

The tunable laser source is a measurement and analysis instrument for wavelength-related parameters of active/passive optical devices such as silicon-based optoelectronic integrated chips, high-Q microrings, and fiber amplifiers in data/intelligent computing centers and other fields. It is an indispensable optoelectronic measurement instrument for the design, development, and verification of chip wafer-level on-chip testing. It has become the mainstream technical method for testing IL/PDL of optoelectronic chips in the current industry. It is mainly used in different test scenarios in communications, university science and education, industrial electronics and other fields.

D. Optical fiber fusion splicer

Optical fiber fusion splicer is one of the most widely used instruments in optical fiber communication engineering. It is mainly used for splicing and protecting various optical fibers in communication lines. It is widely used in different test scenarios in the fields of communications, industrial electronics, aerospace, university science and education, etc.

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E. Optical time domain reflectometer

Optical time domain reflectometer is one of the most widely used instruments in optical fiber link performance testing. It is mainly used for attenuation characteristics and fault location testing of optical fiber links. It is widely used in different test scenarios in the fields of communications, industrial electronics, university science and education, etc.

③Communication test equipment

Communication test instruments are one of the company's core products, including three categories: mobile communication test instruments, data network testers and wireless channel simulators. Communication test instrument products are widely used in communications, industrial electronics, aerospace, university science and education and other fields.

A. Mobile communication test equipment

Mobile communication test instruments are oriented to 5G-A/6G iterative upgrades and satellite interconnection communication needs, providing full-scenario test solutions covering terminal R&D, production line testing, and base station field operation and maintenance. The product series includes terminal comprehensive testers, field communication testers and base station testers, etc., which are mainly used in communications, industrial electronics, high-tech

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China Electronics Cosi Instruments Technology Co., Ltd. prospectus describes different test scenarios in the fields of school science and education.

B. Data network tester

Data network tester is the core instrument for data network performance and protocol testing. It is mainly used for simulation of network communication protocols, simulation and detection of communication business data, statistics, etc. It is mainly used in different test scenarios in the fields of industrial electronics, communications, aerospace, university science and education, etc.

C. Wireless channel simulator

Wireless channel simulator is a specialized wireless channel simulation device that can accurately simulate complex wireless channel characteristics, including path loss, delay, multipath fading, noise, etc., reproduce real channel conditions, and is used for comparative testing and repeated testing to speed up the process of problem discovery and resolution. It is mainly used in different test scenarios in the fields of communications, industrial electronics, aerospace, university science and education, etc.

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④Basic measuring instruments

Basic measuring instruments are the company's main products, specifically including digital oscilloscopes, arbitrary waveform generators and power supplies, etc., to meet the testing and analysis needs in various basic fields. The company's basic measuring instruments are widely used in different testing scenarios in the fields of industrial electronics, communications, aerospace, university science and education, etc.

A. Digital oscilloscope

Digital oscilloscopes are used to observe, analyze and record changes in various electrical signals, and are widely used in different test scenarios in industrial electronics, communications, university science and education, aerospace and other fields.

B. Arbitrary waveform generator

An arbitrary waveform generator is a signal source that can generate any desired waveform and can generate

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Generates any waveform within the limits of frequency range, accuracy, and output level, typically used to provide signals for test stimulation of test measurement equipment. Arbitrary waveform generators are widely used in different test scenarios in industrial electronics, communications, university science and education, aerospace and other fields.

C. Power supply

The programmable DC power supply can measure voltage and current. It is a basic measuring instrument with high-precision output, programmable control, SAS analog output, overvoltage/overcurrent/overtemperature protection and remote communication functions. Compared with traditional analog-controlled DC power supplies, program-controlled DC power supplies have the advantages of higher precision, faster response, smaller temperature drift, and stronger anti-shake capabilities. At the same time, the program-controlled DC power supply can also perform online control and remote data exchange through automated testing systems and other equipment, thereby improving the testing efficiency of the entire system. Power supplies are widely used in different test scenarios in industrial electronics, communications, aerospace, university science and education and other fields.

(2) Complete machine-commissioned development

The company's entrusted R&D income is mainly income generated from providing customers with the development of specific products. The company extensively participates in the development and bidding of various types of electronic measuring instruments. After a successful bid, the customer signs a product development contract with the company and entrusts the company to develop specific products. The company delivers the research and development results according to the contract progress requirements. In addition to the physical results, the entrusted development results must also provide a full set of technical documents, drawings and other information.

Test system

The test system is one of the company's main products. The company relies on its strong electronic measuring instrument design and research and development capabilities, as well as its deep understanding of the electronic information industry, to formulate user-specific testing needs.

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It has developed a digital and intelligent test system product system and doubled its testing capabilities. The company's test system uses the independently developed Test Center software platform (including functions such as intelligent planning and scheduling, dynamic management of test resources, rapid development of test programs, test data fusion and in-depth analysis) as the core platform, organically integrating various complete products, and quickly delivering overall test solutions to customers.

The company's test systems can be mainly divided into microwave components and integrated circuit systems, microwave/millimeter wave antenna test systems, etc. according to the test purpose to meet the increasingly extensive personalized testing needs of users in the digital era. The test system pays more attention to the comprehensiveness of test functions, ease of use and improvement of test efficiency, and is widely used in scientific research, production and maintenance support in the fields of industrial electronics, aerospace, communications, university science and education, etc. (1)Microwave components and integrated circuit systems

Microwave components and integrated circuit systems are mainly used to test various electrical performance indicators such as power, spectrum, waveform and S-parameters on radio frequency microwave passive and active components, as well as radio frequency integrated circuits and modules. It is one of the most widely used test system categories in the development and production of communications and other radio equipment. According to the classification of test objects, microwave components and integrated circuit systems are mainly divided into microwave passive component testing systems, microwave active component testing systems and radio frequency integrated circuit testing systems. Typical products of microwave passive component testing systems are power dividers, switches and high-speed interconnection component testing systems. Typical products of microwave active component testing systems are power amplifiers and T/R component testing systems. Typical products of radio frequency integrated circuit testing systems are radio frequency SiP testing machines.

The company's microwave components and integrated circuit systems have the characteristics of high testing efficiency, high measurement accuracy, high testing safety and high degree of informatization. They have industry-leading technical advantages and strong market competitiveness, and are closely related to users.

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It is highly adaptable to usage scenarios, helps customers improve R&D and production efficiency, and will provide key testing means support for the digital transformation of the electronic information industry.

(2) Microwave/millimeter wave antenna test system

The microwave/millimeter wave antenna test system is the company's strong product, which can meet the performance parameter testing needs of various types of active and passive antennas, terminals, etc., provides a one-stop system solution, and can be agilely customized and developed on the basis of the platform according to user test needs, forming antenna automatic test system products or services that meet users' specific test needs. It solves the problems of accurate and efficient testing of various antennas in user R&D and production processes, and provides test guarantee for aerospace, high-end equipment, communications and scientific research institutions, etc.

The company's antenna test solution consists of a near-far field antenna test platform, a compact field antenna test platform and a multi-probe antenna test platform. It mainly measures the antenna's radiation power, beam direction, channel amplitude and phase consistency, pattern, side lobe level, gain, axial ratio, receiving sensitivity and other parameters. It can provide comprehensive test methods such as near field, far field, compact field, etc. The test frequency range covers 0.1GHz ~ 500GHz, and the test objects cover various microwave/millimeter wave antennas such as phased array antennas, DBF antennas, chip antennas, etc.

Whole parts

The main products of the company's complete components are microwave and millimeter wave component series, which can be used to support the construction of test solutions and test systems suitable for various scenarios, and are widely used in microwave/millimeter wave and other fields.

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Microwave and millimeter wave component products are the key core foundation and important components that support the sustained and high-quality development of instruments and equipment, test solutions and system integration in the microwave/millimeter wave field. Products are mainly divided into two categories: active components and passive components. Active components mainly include amplifiers, frequency converters, detectors, etc., and passive components mainly include adapters, distributors, couplers, etc. Relevant products feature wide bandwidth, high performance, complete series, and customizability. They can be used to build various microwave/millimeter wave instruments and equipment, test solutions, system integration and other application scenarios. They are widely used in many fields such as communications, industrial electronics, aerospace, university science and education, etc.

(3) Main components of main business income

During the reporting period, the composition of the company’s main business income is as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Percentage Amount Percentage Amount Percentage of complete machine business 133,712.28 56.23% 123,502.64 60.51% 142,031.45 66.58% Including: product sales 120,667.05 50.74% 121,127.93 59.35% 107,682.39 50.48%

Entrusted research and development 13,045.23 5.49% 2,374.71 1.16% 34,349.06 16.10% Test system business 88,059.34 37.03% 62,758.34 30.75% 52,814.87 24.76% Complete component business 14,454.99 6.08% 16,673.13 8.17% 17,082.84 8.01%Other business 1,588.59 0.67% 1,164.73 0.57% 1,404.55 0.66%

Total 237,815.20 100.00% 204,098.84 100.00% 213,333.70 100.00%

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China Electronics Cosi Technology Co., Ltd. Prospectus

(4) Main business model

The issuer’s main business model

(1) Sales model

The company has established 10 service centers across the country, has a professional sales team, and has segmented the market by region, industry and other dimensions to ensure multi-region, multi-product, and all-round timely follow-up services to customers. At the same time, the company has established an advanced digital platform, equipped with complete management systems and operating procedures, to achieve efficient and standardized operation of the entire process from customer development, demand mining, contract signing, production arrangement, delivery acceptance, payment collection, and after-sales service. The company adopts a sales model of "direct sales as the mainstay and distribution as the supplement", as follows:

①Direct sales model

The company mainly focuses on the direct sales model and has developed a complete direct sales management system and process. The company sells products directly to end customers and provides complete products and solutions according to the needs of customers in different usage scenarios. The company's products have strong core technical strength, and its downstream customers are mostly state-owned enterprise groups in the electronic information industry, communications manufacturers, telecom operators, university science and education, etc. The company controls core customer resources through its own sales team and combines with the support team to complete the development, support and maintenance of direct sales customers.

②Distribution model

The company is supplemented by the distribution model. Through the distribution model, the company can take advantage of the dealer's location service advantages and channel resource advantages to improve the response speed to end customers, enhance comprehensive service capabilities, shorten the development cycle of end customers, and is conducive to the rapid promotion of the company's brand and products and increasing market share.

Distinguished according to sales model, the company's main business income classification is as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

28,282.97 11.89% 16,251.58 7.96% 7,279.61 3.41% Distributor

non-contractual

31,481.17 13.24% 39,997.71 19.60% 47,317.74 22.18% Distributor

Total 237,815.20 100.00% 204,098.84 100.00% 213,333.70 100.00%

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Note: Distribution is divided into contracted dealer customers and non-contracted dealer customers based on whether a distribution agreement is signed.

(2) Production mode

The company has a complete production and processing system and a production organization method that adapts to business needs. The production-related departments are responsible for product production, testing and inspection according to the demand plan. The company adopts a production model that combines "appropriate stocking, pre-production assembly and adjustment, and production based on sales." At the same time, the company mainly produces independently. For some non-core manufacturing links, in order to complete the production plan and achieve sales in a timely manner, the company adopts a small amount of outsourced processing production mode as needed, and the production department is responsible for the assembly, debugging, testing and inspection of the final product.

The company adopts stock-in-stock production and pre-production assembly and adjustment models for mainstream model products with large sales volume to cope with customers' generally short supply period needs, and maintain reasonable inventory and turnover requirements for mainstream model products. Under the stocking production mode, the company formulates an ordering plan for some mainstream model products based on monthly sales and inventory conditions, so as to maintain reasonable inventory for products with larger sales volume. Under the pre-production assembly and adjustment mode, the company first predicts and produces semi-finished products based on past market sales for microwave/millimetre-wave measuring instruments and other model products that have subsequent demand for customized functions. After subsequent orders are placed, assembly and adjustment will be carried out according to end-user needs.

The company adopts an order-based production model for products where the monthly order quantity is not fixed or there are some customized needs, and production activities are organized immediately after receiving customer orders. The company's production-related departments and logistics management department cooperate with each other to produce and deliver various types of products required by customers in a timely manner.

(3) R&D model

The company's R&D model includes independent project R&D, user-customized project R&D and vertical scientific research project R&D. The company's project management department is mainly responsible for R&D management of all three R&D models.

R&D model of independent projects: Independent projects can be further subdivided into three categories, namely independent basic projects, CBB (Common Building Block) projects and standard product projects. Independent basic projects refer to technology research and development projects carried out to conquer key product technologies or formulate internal technical standards; CBB projects refer to research and development projects that research and develop components, modules, technologies, software and other related design results that can be shared between different products and systems; standard product projects refer to market product development activities based on shelf technology modules.

User-customized project research and development model: User-customized projects include three types of projects: customized testing systems, new product customization, and existing product modifications. According to the different types of delivered products, they can be divided into customized complete machines or components, customized systems, etc.

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Vertical scientific research project research and development model: the company undertakes special research tasks carried out by national government departments, local government departments, etc.

Examples of main R&D processes: Based on market information, research and relevant unit guidelines, the R&D department conducts market analysis, technical demonstration and project feasibility analysis for various R&D projects, and prepares corresponding reports to review key project elements for decision-making. Through the approved R&D project, the project team will carry out project R&D according to the corresponding process. The company's project management department (including the Science and Technology Development Department, Strategy and Marketing Department, Business Planning Department, etc.) will track the R&D process (specifically including: project establishment stage, plan stage, preliminary prototype stage, proof stage, acceptance stage, etc.) and organize relevant review activities. After the project is completed and developed, the company's project management department will organize the acceptance of the project.

(4) Procurement model

The raw materials purchased by the company mainly include components, integrated circuits, modules for system integration, metal and non-metal materials, mechanical structural parts, etc. For basic materials such as mechanical structural parts, metal and non-metallic materials, the safety stock procurement model is adopted to purchase from raw material suppliers; for raw materials with long supply cycles and high risks, such as integrated circuits and core components, through market demand forecasts, multi-department reviews, and after approval by the company according to the system, purchase plans are issued in advance to implement procurement and reserve reasonable inventories.

The company's procurement process consists of supplier qualification certification, procurement application, price inquiry/competitive negotiation/tendering/single source and order delivery, as follows:

①Supplier qualification certification

The company has developed a complete supplier access certification, elimination mechanism and supplier assessment management system. Every year, an assessment team is composed of personnel from the Quality and Safety Department, Common Basic Research Department, Manufacturing Department and Purchasing Department to comprehensively assess supplier levels from multiple aspects such as quality, delivery, price, service and other aspects, establish a list of qualified suppliers, and have different cooperation methods for suppliers of different levels.

②Purchase application

The demand department submits a purchase application. After the purchasing department receives the purchase requisition in the system, the purchased raw materials will be purchased through price inquiry, competitive negotiation, bidding or single source.

③Inquiry and comparison/competitive negotiation/tendering/single source

For types such as user-specified single source, single source of design requirements, single source of supply channel, etc., the company

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China Electronics Cosi Instrument Technology Co., Ltd. Prospectus Company conducts direct procurement, and for the remaining raw materials, the company conducts price inquiry, competitive negotiation, or bidding and procurement. The company consists of the procurement department, demand department, finance department, audit department and other departments to form a procurement review team to select suppliers for price inquiry and negotiation. Based on the price inquiry and negotiation results, the final supplier is determined from the aspects of product quality, delivery time, price, service, etc.; if the single contract amount reaches a certain standard, a bidding review is required to determine the final supplier and price.

④Order delivery

After performing the price inquiry/competitive negotiation/tendering/single source process, confirm the final supplier and complete the order delivery.

The company’s procurement flow chart is as follows:

Reasons for adopting the current business model, key factors affecting the business model, changes in the business model and influencing factors, and future trends

(1) Reasons for adopting the current business model and key influencing factors

The company's main business is the research and development, manufacturing and sales of electronic measuring instruments. The current business model is selected based on comprehensive consideration of the characteristics of the company's industry, the upstream and downstream industry structure, industry regulatory policy requirements, customer geographical distribution, customer needs and strength, its own comprehensive strength and other factors.

(2) Changes in business model and influencing factors during the reporting period

The business model adopted by the company and the key factors affecting the choice of business model did not undergo significant changes during the reporting period.

(3) Future changes in business models and influencing factors

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The company's current procurement, R&D, production, and sales models are selected based on comprehensive consideration of the characteristics of the industry in which the company operates, the upstream industry landscape, and industry regulatory policy requirements. The above influencing factors are not expected to change significantly in the foreseeable future and will not have a significant impact on the company's procurement, R&D, production, and sales models.

(5) The evolution of the issuer’s main business, main products or services, and main business model

The company was established on May 8, 2015. From its establishment to the signing date of this prospectus, the company has always been engaged in the research and development, production and sales of electronic measuring instruments. Its main products include complete machines, test systems, complete components, etc. The company's main products, main business and main business model have not undergone major changes.

According to the approval document issued by the Ministry of Finance on January 3, 2019 (Caifang [2019] No. 1), No. 41 Institute transferred assets related to the instrument business to China Electronics Instrument Co., Ltd. and its wholly-owned subsidiary Anhui Instrument. After the asset transfer was completed, business contracts related to electronic measuring instruments began to be signed by the company. However, due to factors such as historical orders and changes in supplier lists, Forty-One Institute still sold some electronic measuring instrument products in 2019 and 2020. Starting from January 1, 2021, Forty-one Institute will no longer sell electronic measuring instrument products. For a small number of special customers for whom the company cannot directly sign contracts, the company will temporarily sell products through Forty-one Institute's consignment method, that is, first sell to Forty-one Institute, which will be sold by Forty-one Institute to the final customer. Forty-one Institute will pay the company in full after receiving any money that actually belongs to the company. Forty-one Institute does not charge any fees in this process, and the profits generated from the sales of electronic measuring instrument products will be enjoyed by the company.

(6) Main business operations and industrialization of core technologies

Operating conditions of the company’s main business

The company is a high-tech enterprise specializing in the R&D, manufacturing and sales of electronic measuring instruments. It is the R&D and manufacturing enterprise of electronic measuring instruments with the strongest comprehensive strength and the largest revenue in China. It is also the enterprise with the most complete product categories and the widest spectrum coverage in the domestic electronic measuring instrument industry. Its main products include complete machines, test systems, complete components, etc. During the reporting period, the company's main business income was RMB 2,133.337 million, RMB 2,040.9884 million and RMB 2,378.152 million respectively. The net profits attributable to shareholders of the parent company after deducting non-recurring gains and losses were RMB 155.3418 million, RMB 252.3136 million and RMB 331.3301 million respectively. The main business operations were in good condition.

Industrialization of core technologies

The company attaches great importance to the research and development of core technologies. After long-term accumulation, the company has mastered a number of core technologies and

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A patent was applied for it. The company applies core technologies extensively to product development and production processes. The company's core technology is mainly independently developed, and its comprehensive technical level is domestically leading. Especially in the field of microwave/millimetre-wave measuring instruments, it has reached the internationally advanced level, and has reached the international leading level in some subdivisions, and has strong core competitiveness.

During the reporting period, the proportion of product revenue generated by the company's various core technologies to the main business revenue is as follows: Unit: 10,000 yuan

Project 2025 2024 2023 Core technology product revenue 236,226.60 202,934.11 211,929.15 Main business revenue 237,815.20 204,098.84 213,333.70 Core technology product revenue proportion 99.33% 99.43% 99.34%

(7) Main product and service flow chart

The production process flow chart of the company's main products is as follows (light green means self-produced, blue means outsourcing, and orange means outsourcing):

Complete product

Note: The process flow of all major complete products is similar, and microwave/millimeter wave measuring instruments are used as representatives.

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Test system

(8) Representative business indicators and their changes

The company is a high-tech enterprise specializing in the R&D, manufacturing and sales of electronic measuring instruments. As precision measuring and testing instruments, electronic measuring instruments integrate advanced technologies from multiple disciplines and fields. They are technology-intensive, have high added value, and have strong radiation driving characteristics. The evaluation of performance usually needs to rely on more than one aspect of indicators for measurement, and requires comprehensive consideration through multi-dimensional indicators.

For specific business indicators, please refer to "2. Basic situation of the industry in which the issuer operates/(5) Industry competition pattern and main competitors/3. Comparison of the issuer and comparable companies in the same industry in terms of operating conditions, market position, technical strength, key business data and indicators for measuring core competitiveness/(3) Technical strength, key business data and indicators for measuring core competitiveness, etc."

(9) In line with industrial policies and national economic development strategies

In recent years, my country has continued to strengthen policy support for the electronic measuring instrument industry, injecting strong impetus into industrial development. In October 2022, the 20th National Congress of the Communist Party of China proposed the implementation of industrial base reconstruction projects and major technical equipment research projects to strive to promote high-quality development of the manufacturing industry. Subsequently, in February 2023, when the Political Bureau of the CPC Central Committee conducted its third collective study on strengthening basic research, it emphasized the need to "fight the battle to localize scientific and technological instruments, operating systems and basic software", aiming to use independent platforms and equipment to solve major basic research problems as soon as possible.

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Investigate the problem. In July 2024, the "Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reforms and Promoting Chinese-style Modernization" passed by the Third Plenary Session of the 20th Central Committee of the Communist Party of China further clearly stated that "we will improve and strengthen the development systems and mechanisms of key industrial chains such as instrumentation, and promote technological research and application of results throughout the chain. Establish an industrial chain supply chain safety risk assessment and response mechanism." This highlights that the country regards instrumentation as a strategic focus and is committed to improving the resilience and safety level of the industrial chain and supply chain through full-chain technological research and application of results. In October 2025, the "Recommendations of the Central Committee of the Communist Party of China on Formulating the Fifteenth Five-Year Plan for National Economic and Social Development" reviewed and approved by the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China pointed out that it is necessary to "improve the new national system, take extraordinary measures, and promote the entire chain to achieve decisive breakthroughs in key core technologies in key areas such as high-end instruments." The "Fifteenth Five-Year Plan for National Economic and Social Development of the People's Republic of China" released in March 2026 further clarified that "strengthen the research and development of application instruments in key industries such as online efficient intelligent detection, extreme environment regulation and control, and high-performance flow measurement, and promote the research of new measurement and calibration instruments such as quantum metering and in-situ metering." It also emphasized once again that "focus on high-end instruments and other key areas to adopt unconventional measures, and promote the entire chain to achieve decisive breakthroughs in key core technologies." Driven by the coordinated promotion of multiple policies, the electronic measuring instrument industry has ushered in a golden opportunity period. These policies not only effectively promote technological innovation, but also create a broad market space and a good development environment for the industry along with the vigorous development and digital transformation of communications, semiconductors, automotive electronics and other industries.

2. Basic situation of the industry in which the issuer operates

(1) Industry to which the issuer belongs

According to the "Industry Statistical Classification and Code of Listed Companies" (JR/T0020-2024), the company's industry is "CI40 Instrument Manufacturing"; according to the "National Economic Industry Classification (GB/T4754-2017)", the company's industry is "C4028 Electronic Measuring Instrument Manufacturing" under "C40 Instrument Manufacturing", which does not belong to the "Interim Regulations on the Shenzhen Stock Exchange GEM Enterprise Issuance and Listing Application and Recommendation (Revised in 2024)"

Industries stipulated in Article 5: (1) Agriculture, forestry, animal husbandry and fishery; (2) Mining industry; (3) Wine, beverage and refined tea manufacturing industry; (4) Textile industry; (5) Ferrous metal smelting and rolling processing industry; (6) Electricity, heat, gas and water production and supply industry; (7) Construction industry; (8) Transportation, warehousing and postal industry;

(9) Accommodation and catering industry; (10) Financial industry; (11) Real estate industry; (12) Resident services, repairs and other service industries.

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(2) The issuer’s industry authorities, regulatory systems and major laws, regulations and policies

Industry authorities and regulatory systems

The competent department of the industry to which the company belongs is mainly the Ministry of Industry and Information Technology. The main responsibilities of this ministry are: to formulate and organize the implementation of instrumentation industry planning and industrial policies, put forward policies and suggestions for optimizing industrial layout and structure, draft relevant draft laws and regulations, formulate relevant regulations, formulate industry technical specifications and standards and organize their implementation, and guide industry quality management work.

The company's self-regulatory regulatory organization is mainly the China Electronic Instrument Industry Association. The China Electronic Instrument Industry Association was established in 1988. It is a national first-level industry association. The competent authority is the Ministry of Industry and Information Technology. It is mainly responsible for industry research, information consultation, recommendation and formulation of standards, technical exchanges, assisting enterprises to participate in exhibitions, exploring domestic and foreign markets, and conducting international exchanges and cooperation.

Main laws, regulations and policies of the industry

The electronic measuring instrument industry in which the company operates is a basic and strategic industry in the country. In recent years, the country has successively issued a series of policies to encourage and support the development of the electronic measuring instrument industry. The specific policies are as follows: Time Issuing Unit File Name Related Main Content

Strengthen the research and development of application instruments in key industries such as online efficient intelligent detection, extreme environment regulation and control, and high-performance flow measurement, and promote

14th session

In 2026, the National People's Congress of the People's Republic of China will promote new measurement and calibration instruments such as quantum metrology and in-situ metrology for the national economy and society.

In March, we will develop the 15th key research project and once again emphasize the focus on high-end instruments and other key areas through four meetings.

Five-Year Plan Outline" Extraordinary measures, the entire chain promotes decisive breakthroughs in key core technologies

"The Central Committee of the Communist Party of China on

Strengthen original innovation and key core technology research. Improve new practices

The 20th Party Congress formulated the national economic and

In 2025, we will adopt the national system and adopt extraordinary measures to promote integrated circuits and integrated circuits throughout the chain.

The Fourth National Central Committee and the Fifteenth Social Development

October: Seminar on key core technologies in key areas such as industrial machines and high-end instruments. Construction of a five-year plan.

A decisive breakthrough was achieved.

Discussion"

Build a 5G-A industry chain and continue to promote uplink and downlink ultra-broadband, communication

"5G large-scale application

In 2024, the Ministry of Industry and Information Technology, etc. will integrate sensing, passive IoT, high-precision and low-power positioning, and network intelligence.

"Sail" operation

In November, the twelve departments will conduct research and development tests on key technologies such as energy, and accelerate the advancement of base stations, core networks, and advanced plans.

The research and development and industrialization of terminals, chips, instruments and other equipment will improve the resilience and safety level of the industrial chain and supply chain. healthy

"The Central Committee of the Communist Party of China has further comprehensively strengthened integrated circuits, industrial motherboards, medical equipment, instrumentation and other key industries in 2024," said the Central Committee of the Communist Party of China.

In July, the reform promoted the Chinese-style chain development system and mechanism, and the entire chain promoted technological research and the results should be modernized. Establish an industrial chain supply chain security risk assessment and response mechanism.

"About promoting the future construction of a number of pilot and application verification platforms according to industry needs to enhance the 2024 Ministry of Industry and Information Technology, etc.

Industrial innovation and development of precision measuring instruments, high-end test equipment, design simulation software, etc. January Seven Departments

Implementation Opinions》 supply capabilities, provide a trial environment for key technology verification, and accelerate

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Time Issuing unit File name Related main content

Transform new technologies into real productivity

"About the promotion of measurement. By 2025, the measurement performance and technical indicators of some domestic instruments and meters will reach or be close to the international advanced level; by 2035, the measurement performance and technical indicators of some domestic instruments will reach the international advanced level, and some will reach the international leading level."

Support enterprises to strengthen capacity building in measurement, standards, certification and accreditation, test verification, inspection and testing, etc., and continue to adopt new technologies and new products. In 2023, the Ministry of Industry and Information Technology and others "Excellence in Quality in Manufacturing"

Provide opinions on the implementation of measurement projects for the three departments in December regarding the upgrading and transformation of measurement and testing instruments, test equipment and other facilities.

Improve the level of quality control, increase investment in intangible assets such as standard development and promotion, inspection, testing and certification, and raise the "high line" of quality. By 2025, intelligent inspection technology will basically meet users' requirements for manufacturing "Intelligent Inspection Equipment"

Process needs, core components, special software and complete machine equipment 2023 Ministry of Industry and Information Technology and other industrial development action plans

Supply capacity has been significantly improved, and the demonstration of intelligent testing equipment in key areas will be planned by seven departments in February (2023-2025

The results of driving and large-scale application are obvious, and the industrial ecology is initially formed, year)

Basically meet the development needs of intelligent manufacturing

Increase support for R&D and innovation in the basic electronics industry. Coordinate the relevant "About deepening the electronic

In 2022, the State Council will issue policy resources to increase the management system of the basic electronics industry (electronic materials and electrical appliances industry).

September Public Office Opinions on the Reform of the Manufacturing System of Sub-components, Electronic Special Equipment, Electronic Measuring Instruments, etc."

industry) upgrading and key technological breakthroughs

The scientific and technological innovation products and services of domestic natural persons, legal persons and unincorporated organizations must meet the requirements of the 13th session of the government procurement in terms of functions, quality and other indicators.

Under the conditions of purchasing demand, government procurement should be purchased; for the first time, the Standing Committee of the National People's Congress of the People's Republic of China

In the 2021 market, government procurement should be the first to purchase, and shall not use commercial industry committees to promote the scientific and technological progress of third countries.

December will be restricted based on performance reasons. The country will hold 12 meetings based on the needs of scientific and technological progress (Second Revision)

need to coordinate the purchase of large-scale scientific instruments and equipment, and conduct discussions on

Joint evaluation work on large-scale scientific instruments and equipment mainly purchased with fiscal funds

"The People's Republic of China"

national economy and social

The 13th National Conference will rely on leading enterprises in the industry to increase the development of important products and key core technologies in 2021. The 14th

The National People's Congress will strengthen technical research and accelerate breakthroughs in engineering and industrialization; strengthen the high-end five-year plan and the 2020

Four meetings R&D and manufacturing of scientific research instruments and equipment

Three- to five-year long-term goals

Outline

Rely on high-quality enterprises to form innovation consortiums or technological innovation strategic alliances, carry out collaborative innovation, and increase basic components, basic electronic components, basic software, basic materials, basic processes, and high-tech enterprises.

In 2021, the Ministry of Industry and Information Technology will develop high-quality manufacturing in key fields such as terminal instruments and equipment, integrated circuits, and network security.

In June, we will focus on research and demonstration applications of core technologies, products, and equipment. Guiding Opinions on Promoting National Enterprises"

Open major scientific research infrastructure and large-scale scientific research instruments to high-quality enterprises, and build production application demonstration platforms and industrial technology basic public service platforms

"About Expansion Strategy

Accelerate the improvement of shortcomings in the high-end equipment manufacturing industry. Focus on supporting industrial machinery development and reform commission, scientific emerging industry investment

In 2020, robots, construction, medical and other special robots, high-end instrumentation, technology departments, industry and information technology will cultivate and expand new growth

In September, the production of high-end equipment such as rail transit equipment was implemented with the guidance of intelligent manufacturing, the Ministry of Finance, and the Ministry of Finance.

Smart construction pilot demonstration

Opinions

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The impact of laws, regulations and industry policies on issuers

The electronic measuring instrument industry is a national basic and strategic emerging industry. In recent years, relevant departments have successively introduced a number of laws, regulations and industry policies to support its development, creating a good policy environment for the development of the industry and playing a positive role in promoting the development of the industry.

Diankesi Instruments is an enterprise with the most complete product categories and the widest spectrum coverage in the domestic electronic measuring instrument industry. It is also the only electronic measuring instrument company in China that can fully benchmark against leading international companies in the fields of microwave/millimetre-wave, optoelectronics, communications and basic measuring instruments. The overall technical level is domestically leading, especially in the field of microwave/millimetre-wave measuring instruments. It has reached the international advanced level as a whole, and has reached the international leading level in some subdivisions. As the Party Central Committee, the state, and local governments promulgate policies to strongly support the development of electronic measuring instruments, it will further help leading domestic enterprises to promote independent development and independent innovation strategies. Diankesi Instrument will continue to be committed to breakthroughs in key core technologies for electronic testing and measurement, continuously improve its core competitiveness, achieve the company's sustainable development, and contribute to the improvement of the technical level and comprehensive strength of my country's high-end scientific instruments.

(3) Industry overview and development trends

Overview of the electronic measuring instrument industry

(1) Overview of the electronic measuring instrument industry

The electronic measuring instrument industry is a national strategic and basic industry and an important part of the information society. Related products are widely used in communications, aerospace, education and scientific research, semiconductors, consumer electronics, automobiles, medical care, energy and other fields. They are key equipment and important means for scientific research, production, testing and maintenance of the modern information industry. They play an irreplaceable role in the construction of the modern economy and are one of the strategic emerging industries focused on the development of the country. Electronic measuring instruments integrate advanced technologies from multiple disciplines and fields. They are the basic equipment of the electronic information industry. They are technology-intensive, have high added value and have strong radiative driving characteristics. They also have the distinctive feature of synchronizing or leading the development of other technologies and industries, and have a strategic and basic position in economic development.

Electronic measurement is a method of measuring electromagnetic signals using electronic technology. Electronic measuring instruments are based on electronic technology and integrate electronic measurement technology, radio frequency microwave technology, digital signal processing technology, microelectronics technology, computer technology, software technology, communication technology, etc. to form a stand-alone or automatic test system, and use electromagnetic signals (including optical signals) as test objects to measure various parameters or control the operating status of the system under test. With the development of electronic science and technology, many non-electrical physical quantities can be converted into electrical signals through certain sensors, and then measured using electronic technology. Electronic measuring instruments can quantitatively measure target parameters

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value, and can qualitatively test the performance of the target under specific conditions.

(2) Classification of electronic measuring instruments

Electronic measuring instrument products are an important category of instrumentation. They use electronic technology to conduct qualitative or quantitative measurements of the electrical parameters of the measured object. According to different product and application scenario dimensions, it can be divided into electronic measuring instrument products and test system products.

According to different measurement functions and objects, electronic measuring instrument products can be divided into photoelectric measuring instruments, communication measuring instruments, microwave/millimeter wave measuring instruments, basic measuring instruments and other types of products.

According to different test purposes and objects, electronic test and measurement system products can be divided into microwave component and integrated circuit test systems, radio frequency antenna test systems, electromagnetic environment construction test systems, electromagnetic compatibility (EMC) test systems, and new energy and automotive electronics test and measurement systems.

The company's main products cover all the above categories.

Market size of the electronic measuring instrument industry

(1) Global market size

In the modern manufacturing industry chain, electronic measuring instruments are required to assist in all aspects of research, experimentation, analysis, design, processing, equipment, debugging, inspection and identification, from basic product components to complete machines. With the rapid development of technologies such as the Internet, Internet of Things, cloud computing, and big data, and the organic integration of traditional industries and new technology industries, the application fields of electronic measuring instruments have been greatly expanded, and the market scale has continued to expand. According to Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets", the global market size of electronic measuring instrument products and test and measurement systems will grow from 101.72 billion yuan in 2020 to 152.72 billion yuan in 2025, corresponding to an average annual compound growth rate of 8.47%; it is expected to grow from 2025 to 2025. It will further increase from 152.72 billion yuan in 2029 to 207.42 billion yuan in 2029, corresponding to an average annual compound growth rate of 7.95%. Global market size of electronic measuring instrument products and test and measurement systems

Unit: 100 million yuan

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Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets"

From the perspective of regional development, the electronic measuring instrument industry and testing systems in developed countries and regions such as Europe and the United States started earlier, with a good upstream and downstream industrial chain foundation, a large market size, and market demand is mainly based on product upgrades. The market will maintain steady growth; while the Asia-Pacific region, represented by China and India, is in the stage of industrial transformation and upgrading and the rapid development of emerging markets. The demand for electronic testing instruments has huge potential, and the market size will grow at a relatively high rate.

(2) China’s market size

In recent years, my country's electronic measuring instrument industry has made significant progress thanks to a series of policy support, the in-depth advancement of 5G commercial applications, the rapid penetration of the new energy vehicle market, and the simultaneous improvement of information and communication technology and industrial productivity. According to Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets", the market size of China's electronic measuring instrument products and test and measurement systems will grow from 31.20 billion yuan in 2020 to 55.81 billion yuan in 2025, corresponding to an average annual compound growth rate of 12.33%. In 2025, China's electronic measuring instrument market size will account for approximately 1% of the global market size. 36.54%; the market size of China's electronic measuring instrument products and test and measurement systems is expected to further increase from 55.81 billion yuan in 2025 to 82.64 billion yuan in 2029, corresponding to an average annual compound growth rate of 10.31%.

Market size of China's electronic measuring instrument products and test and measurement systems

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Unit: 100 million yuan

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets"

(3) Market size of main categories

①Measuring instrument products

A. Microwave/millimeter wave measuring instruments

Microwave/millimeter wave measurement instruments include signal generators, spectrum/signal analyzers, vector network analyzers, noise figure testers, power meters, frequency meters, modulation domain analyzers, phase noise testers, microwave/RF comprehensive testers and other products. Microwave/millimeter wave measuring instruments are indispensable test instruments for signal simulation, signal analysis and channel simulation testing in the fields of communications, navigation, intelligent driving and other fields. With the development of related fields, the demand for testing has become increasingly strong. Especially in recent years, with the rapid development of the field of wireless communications and the continuous increase in communication frequency, microwave/millimeter wave measuring instruments have been widely used in the field of wireless communication testing. From 5G base station testing, terminal testing to field testing, whether in the R&D or production stages, it is increasingly common to use signal generators and signal analyzers configured with relevant protocols for testing.

At the same time, with the technological development of related industries, in order to ensure the testing needs of higher accuracy, larger bandwidth, and more complex scenarios, higher requirements have been put forward for the performance indicators of microwave/millimetre-wave measuring instruments. The test frequency band has expanded from radio frequency to the THz frequency band, and the bandwidth has reached above GHz. Higher requirements have also been put forward for indicators such as phase noise and dynamic range. The testing needs of related industries not only bring huge market opportunities to microwave/millimeter wave measuring instruments, but also promote the progress and development of microwave/millimeter wave measuring instrument technology.

According to Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets", my country's microwave/millimeter wave measuring instrument market size will grow from 5.41 billion yuan in 2020 to 7.79 billion yuan in 2025, with an average annual compound growth rate of 7.56%; China's microwave/millimeter wave measuring instrument market size is expected to grow from 7.79 billion yuan in 2025 to 7.79 billion yuan in 2025. 10.40 billion yuan in 2029, corresponding to the average annual compound

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The growth rate is 7.49%.

China’s microwave/millimeter wave measuring instrument product market size

Unit: 100 million yuan

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets" B. Optoelectronic Measuring Instruments

Optoelectronic measuring instruments are mainly used to measure various data in optical fiber communication systems, including spectrum analyzers, optical fiber fusion splicers, optical wave component analyzers, optical fiber strain distribution testers, light sources, optical power meters, optical attenuators, etc. Optoelectronic measuring instruments are mainly used in testing technology research on optical chips, optical devices, optical modules and their engineering applications in optoelectronic communications, as well as in the construction and maintenance of optical fiber communication systems.

According to Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets", China's photoelectric measuring instrument market capacity is 2.39 billion yuan in 2020 and is expected to reach 4.22 billion yuan in 2025, with an average annual compound growth rate of approximately 12.04%; China's photoelectric measuring instrument market size is expected to grow from 4.22 billion yuan in 2025 to 67.3 billion yuan in 2029 billion, corresponding to an average annual compound growth rate of 12.38%.

China’s photoelectric measuring instrument product market size

Unit: 100 million yuan

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Market" C. Communication Test Instruments

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Communication test instruments are mainly divided into wireless communication test instruments and wired communication test instruments. The products included mainly include: base station test, terminal test, Internet of Things test, data communication and network test, wireless equipment and network test, wireless channel simulation and emulation, etc. Communication test instruments are mainly used for the research and development, production, maintenance and testing of communication base stations, terminals and network equipment.

With the rapid development of wireless communications and network communications, there is a strong demand for communications test instruments. According to Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets", China's communications test instrument market capacity was 3.16 billion yuan in 2020 and is expected to reach 4.69 billion yuan by 2025, with an average annual compound growth rate of 8.22%; China's communications measurement instrument market size is expected to increase from It will increase from 4.69 billion yuan in 2025 to 6.24 billion yuan in 2029, corresponding to an average annual compound growth rate of 7.40%.

China’s communication measuring instrument product market size

Unit: 100 million yuan

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets" D. Basic Measuring Instruments

Basic measuring instruments cover product categories such as digital oscilloscopes, arbitrary waveform generators, and programmable power supplies, meeting the testing and analysis needs of various basic fields. Among them, digital oscilloscopes, as a large-volume and wide-ranging application product, have a relatively high market share.

According to Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets", China's basic measuring instrument market space is 6.64 billion yuan in 2020. The Chinese market size is expected to grow to 10.14 billion yuan in 2025, with an average annual compound growth rate of 8.84%; China's basic measuring instrument market size is expected to grow from 10.14 billion yuan in 2025 to 138.7 billion yuan in 2029. billion, corresponding to an average annual compound growth rate of 8.15%.

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Market size of basic measuring instrument products in China

Unit: 100 million yuan

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Market" ②Test and Measurement Systems

The electronic test system is a comprehensive test platform based on the integration of multiple types of electronic measuring instruments, hardware platforms and special software. It can provide systematic and automated testing capabilities for devices, modules and complete machines in the R&D, production and verification processes. Compared with a single instrument, this system pays more attention to batch testing efficiency and complex working condition coverage capabilities, and is commonly used in communications, automotive electronics, aerospace, semiconductors, consumer electronics and other fields. Due to the need for in-depth customization based on specific scenarios and user needs, the products of this type of system are diverse and have a low degree of standardization. As a result, the market lacks unified product definition and classification standards, making it difficult to achieve large-scale statistics. However, with the introduction of favorable national policies, the development of the industry toward integration, and the continued expansion of the downstream industry in the future, the market size of test system products will continue to increase.

Market size of electronic test and measurement systems in China

Unit: 100 million yuan

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets"

According to Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets", China's electronic test and measurement system market size was 7.35 billion yuan in 2020. It is expected that the Chinese market size will grow to 16.30 billion yuan in 2025, with an average annual compound growth rate of 7.35 billion yuan. 17.27%; China’s electronic test and measurement system market size is expected to grow from 16.30 billion yuan in 2025 to 28.55 billion yuan in 2029.

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Corresponding to an average annual compound growth rate of 15.04%.

Development trends of electronic measuring instrument industry

Electronic measuring instruments are a technology-intensive industry, and their development is the result of joint progress in multiple disciplines and fields. With the continuous development of science and technology, electronic measuring instruments will also develop rapidly to meet the measurement needs of downstream application fields and promote social and economic development.

In the future, the electronic measuring instrument industry is expected to show the following development trends:

(1) High frequency, large bandwidth, high speed, multi-channel

In order to cope with increasingly complex testing challenges in the fields of 6G communications, satellite Internet, detection and sensing, and digital infrastructure construction, the electronic measuring instrument industry is evolving towards high-frequency, large-bandwidth, high-speed, and multi-channel collaborative measurement technologies. In terms of high frequency, the industry has formed frequency coverage capabilities from coaxial to 110GHz and waveguide to 1.5THz, and is pushing testing capabilities to higher millimeter wave and sub-terahertz frequency bands, directly serving the R&D and production of 6G and satellite communications; in the field of large bandwidth, broadband signal analyzers provide analysis bandwidths up to 8GHz, and high-speed digital oscilloscopes provide 110GHz Broadband test capabilities are used to cope with complex signal challenges and meet the test needs of high-resolution imaging and big data throughput systems. In response to high-speed and multi-channel requirements, the industry has responded by developing multi-port, multi-channel measurement and high-speed test solutions, such as signal sources and receivers that support multi-channel coherent measurement and data communication testers with port rates covering up to 800GE to meet the verification requirements of large-scale digital arrays and high-speed data exchange.

These performance upgrades jointly promoted by the industry are systematically solving core testing problems such as high performance and high efficiency, thus becoming a key infrastructure that supports the development of cutting-edge technologies to industrialization.

(2) Accelerated integration of emerging technologies such as artificial intelligence and testing technology

Digital transformation and intelligent manufacturing and other fields have further put forward digital, networked and intelligent requirements for testing, which will lead to a huge change in testing technology. The cloud-edge distributed architecture drives the transformation of testing from single-point serial to multi-point parallel, and artificial intelligence accelerates the transformation of testing from parametric testing to conclusive testing. Through the integration and application of these emerging technologies, testing efficiency and testing accuracy can be improved, and the digitization, networking, and intelligence level of electronic measuring instruments can be improved. Therefore, accelerating the integration of artificial intelligence, big data, cloud computing, Internet of Things technology and testing technology will be one of the future development trends of the electronic measuring instrument industry.

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(3) Platform, software, and multi-functional

In order to cope with the complex scenario-based testing needs in fields such as 5G/6G communications and intelligent connected vehicles, electronic measuring instruments will continue to evolve towards platform-based and software-based testing, with more abundant testing functions. Software-defined measurement (SDM) supports the flexible configuration and rapid switching of multi-function, multi-protocol, and hardware test resources by building a "hardware platform + software algorithm" collaborative model, significantly improving the adaptability to complex scenarios and testing efficiency. At the same time, instruments that integrate multiple functions such as signal generation and analysis, as well as the introduction of AI algorithms to achieve intelligent diagnosis and optimization, have become important trends to meet efficient and accurate testing. It is expected that the proportion of software value will continue to increase, driving further growth of the market.

(4) Chip, modular and miniaturized

Driven by scenarios such as industrial network testing and field testing in the fields of aerospace, information communications, and industrial electronics, which have high requirements for instrument reliability, portability, and multi-bus integration, testing instruments are evolving in the direction of chip, modular, and miniaturization. Advances in semiconductor technology provide the foundation for this. The development of multi-functional integrated integrated chips and the comprehensive application of radio frequency integration technology support the accelerated transformation of traditional field portable instruments to lightweight, handheld instruments, and the transformation of desktop instrument integration to modular architecture based on standard buses such as PXIe. On the one hand, this technological trend makes electronic measuring instruments more adaptable to on-site test environments; on the other hand, through the flexible combination of radio frequency, digital and other functional modules, on-demand configuration, easy expansion and upgrade are achieved, which significantly improves the integration and adaptability of the system, especially suitable for small batch and multi-variety testing needs.

The position and role of the industry in the industrial chain, and the correlation with upstream and downstream industries

The upstream of the electronic measuring instrument industry chain mainly includes manufacturing enterprises of electronic components, PCBs, electronic materials and parts, while the downstream of the industry chain involves communications, industrial electronics, education, national defense, consumer electronics, medical and other fields. The upstream and downstream relationship diagram of the industry is as follows:

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Electronic measuring instrument products and system industry chain

Data source: Frost & Sullivan "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Market" (1) Relationship between upstream industries and this industry

The upstream of the electronic measuring instrument industry mainly includes parts and equipment suppliers, providing basic materials, core components and other products as well as assembly services. Among them, electronic components can be divided into active components (such as IC chips, amplifiers, diodes), passive components (resistors, capacitors, inductors), optical components, precision mechanical structural parts and PCB circuit boards. These components directly determine the measurement accuracy, frequency range and reliability of the instrument, and are the key foundation for improving product performance. At present, upstream core chips and high-end electronic components are still dominated by international manufacturers. However, domestic companies have achieved breakthroughs in some subdivisions.

(2) Relationship between downstream industries and this industry

The electronic measuring instrument industry has a wide range of downstream applications, covering core areas of the national economy such as semiconductor and electronic manufacturing, new energy vehicles, industrial control, aerospace, scientific research and education. In the field of communications, this type of instruments supports the entire process from 5G standard formulation, product research and development to 6G pre-research, and assists in the construction of data communications infrastructure such as data centers. In the semiconductor field, from manufacturing, processing to packaging, electronic measuring instruments are required for parameter testing and defect screening to ensure product reliability. In the field of consumer electronics, the trend of precision and miniaturization such as wearable devices has promoted the demand for the development of high-end measuring instruments and technologies. In the automotive field, the rapid development of new energy vehicles, smart driving and Internet of Vehicles has expanded the application scenarios of electronic measurement in batteries, charging piles and other links. In the field of education and scientific research, as a multi-disciplinary basic tool, its demand continues to grow with investment in higher education.

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In summary, the rapid iteration of downstream industries has put forward higher requirements for measurement accuracy, frequency range and automation level, and continues to drive the technological upgrading of the electronic measuring instrument industry.

Technical level and characteristics of the industry

Electronic measuring instruments are a technology-intensive industry, and their development is the result of joint progress in multiple disciplines and fields. Electronic measuring instruments are based on electronic technology, integrating electronic measurement, radio frequency microwave design, digital signal processing, microelectronics, computers, communications and other fields of technology, and the products have high technical content. With the rapid development of emerging technologies such as artificial intelligence and precision manufacturing, related new technologies are rapidly integrated into measuring instrument products. The performance of various electronic measuring instruments continues to improve, and traditional instrument forms and measurement modes are also changing.

As early as 1946, the founder of Tektronix invented the world's first trigger oscilloscope, and China's electronic measuring instrument market had just entered the virtual instrument stage at the beginning of the 21st century. In recent years, the industrialization level of my country's electronic measuring instruments has made great progress. According to Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets", the market share of domestic brands in China's electronic measuring instruments market has increased from 8.4% in 2020 to 2024. 16.8%, but the overall level still lags behind leading foreign brands. Domestic companies generally have a short technology accumulation period, and there is a big gap with global leading brands such as Keysight Technologies, Rohde & Schwarz, etc. in terms of brand awareness, product line richness, overall solution capabilities, and business scale.

Main barriers to entry into the industry

(1) Technology and talent barriers

The electronic measuring instrument industry is a technology-intensive industry. Its development relies on modern measurement principles and integrates advanced technologies in many fields such as radio frequency microwaves, digital signal processing, microelectronics, computers, software and communications. The technological evolution of downstream industries continues to place higher demands on measuring instruments. Therefore, companies must cultivate professional talents and teams with interdisciplinary experience through long-term R&D investment and technology accumulation, and build a sustainable and innovative R&D system to cope with rapid technology iterations and changes in market demand. Maintaining technological advancement is the core of industry competition, forming a high threshold for technology and talent.

(2) Rich product lines and collaboration barriers

The complete product matrix can meet the one-stop testing needs of downstream customers in multiple professional fields and complex scenarios. It has significant advantages in serving major projects, large-scale digital infrastructure construction projects and high-end customers. Building such a product system relies on the long-term development of underlying technologies such as chips, algorithms, platforms, and machine integration.

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Collaborative R&D and continuous investment over a period of time have formed a technology accumulation that is difficult to replicate quickly. In addition, after customers adopt the same brand products in multiple links, they will become dependent on operating procedures, data standards, test specifications and service support, thereby increasing switching costs and strengthening customer lock-in and ecological stickiness.

(3) Overall solution capability barriers

Industry competition is evolving from selling single equipment to providing overall solutions. This capability requires companies to deeply integrate hardware, dedicated software, algorithms and services to systematically meet customers' complete measurement, analysis and process needs in specific application scenarios. Its barriers are mainly reflected in the integration capabilities across technical majors and the long-term accumulation of vertical industry knowledge. By serving key industries, leading companies have gradually developed highly platform-based, customized, stable and reliable solution delivery capabilities. However, new entrants often lack a deep understanding of industry technology, processes and standards, and find it difficult to make short-term breakthroughs in terms of software and hardware collaboration, scenario adaptability, system stability and continuous services. In addition, solutions are often deeply embedded in customers' core processes, resulting in high switching costs and long-term cooperation stickiness, further consolidating the market position of leading companies.

(4) Brand, customer and channel barriers

As basic tools in key downstream areas, electronic measuring instruments’ reliability, accuracy and stability directly affect customer R&D and production quality. Therefore, brand reputation established through long-term application and service has become an important competitive factor. Well-known brands rely on long-term technology accumulation and a large number of successful cases to more easily pass customers' rigorous certification and verification cycles and build deep market trust. On the customer side, once instruments are embedded into existing business processes, they are deeply bound to test standards, data systems and operating habits. Replacement costs are high and risks are high. Customers therefore tend to maintain long-term cooperation with existing suppliers. In terms of market channels, building a global marketing and service network requires huge capital investment and time accumulation. Leading companies have established mature channel systems and localized service capabilities, which poses a significant resource and time threshold for new entrants.

Opportunities and challenges faced by the industry

(1) Main opportunities facing the industry

①The state supports and encourages the innovative development of the electronic measuring instrument industry

Electronic measuring instruments are a basic and strategic emerging industry, and their development level has become one of the important symbols of a country's scientific and technological level, comprehensive national strength and international competitiveness. The independent research and development of electronic measuring instruments has always been highly valued in innovative countries. Developed countries such as Europe, the United States and Japan generally regard "developing first-class scientific instruments" as one of their national strategies and provide key support for the research and development and innovation of scientific instruments. In recent years, our country has also continued to

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Introduce favorable policies for high-end measuring instruments. Relevant favorable policies will promote the rapid and healthy development of the electronic measuring instrument industry.

For specific information on relevant policies, please refer to "2. Basic information on the industry in which the issuer operates/(2) The industry authorities, regulatory systems and main laws, regulations and policies to which the issuer belongs/2. Main laws, regulations and policies on the industry".

②The rising prosperity of the downstream application industry promotes sustained and steady growth of industry demand

Electronic measuring instruments are basic equipment and are widely used in various fields of the national economy. With the continued development of major downstream application fields such as communications, industrial electronics, education and other industries, the demand for electronic measuring instruments will also continue to grow steadily.

A. Communications market

(a) China Satellite Communications

As an important part of the country's strategic emerging industries, satellite communications play a fundamental supporting role in building an integrated information network between space and ground. Its applications have expanded to key areas such as emergency communications, ocean observation, remote sensing navigation, transportation, and the Internet of Things. In recent years, driven by the deepening implementation of the "new infrastructure" policy and continued breakthroughs in aerospace technology, my country's satellite communications market has maintained a steady growth trend: in 2020, the market size was approximately 72.30 billion yuan. By 2024, with the accelerated networking of low-orbit satellites and the gradual release of commercial application demands, the market size has grown to approximately 89.60 billion yuan. In the future, with the official inclusion of satellite Internet into the "14th Five-Year Plan" and the continuous improvement of the national communications infrastructure system, the industry will enter a stage of rapid development. The market size is expected to reach 103.0 billion yuan in 2025, and the average annual compound growth rate will remain at around 15.01% from 2025 to 2029, and is expected to increase to 180.20 billion yuan by 2029. Generally speaking, China's satellite communications industry is currently in a critical stage of accelerating its transformation from policy-driven to commercial operations. The rise of private aerospace forces and the large-scale deployment of low-orbit broadband communications systems will become the core driving force for continued market growth in the future.

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China’s satellite communications market size

Unit: 100 million yuan

Data source: Frost & Sullivan "Independent Industry Research on Global and China Electronic Measuring Instruments (Products and Systems) Market" (b) China Optoelectronics Communications

Driven by the large-scale construction of 5G networks, the continuous expansion of data centers and the widespread application of cloud computing technology, my country's optoelectronic communications industry has maintained steady growth. The industry market size in 2020 was 120.80 billion yuan, which has increased to approximately 175.0 billion yuan by 2024, with a compound annual growth rate of approximately 9.71% from 2020 to 2024. The market size is expected to further expand to 196.0 billion yuan in 2025. From 2025 to 2029, driven by multiple factors such as infrastructure upgrades, increasing computing power network demands, and new material technology breakthroughs, the market will continue to expand at an average annual compound growth rate of approximately 12.00%, and is expected to reach 308.40 billion yuan by 2029. Overall, the optoelectronic communications industry is in a critical period of evolution from 5G networks to intelligent and integrated communications systems, with significant market growth potential in the future.

China’s optoelectronic communications market size

Unit: 100 million yuan

Data source: Frost & Sullivan "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Market" (c) China Mobile Communications

With the steady advancement of my country's mobile communication network construction and the continuous improvement of residents' consumption capabilities, the scale of mobile communication users continues to expand and the penetration rate further increases. In 2024, the total number of mobile communication users in the country has reached 1.840 billion, an increase of 5.75% over the previous year. Looking to the future, increased investment in base station construction is closely related to communication technology

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Driven by iterative upgrades, it is expected that the number of users will increase from 1.91 billion households in 2025 to 2.170 billion households in 2029, corresponding to an average annual compound growth rate of 3.24%.

China mobile communications market size

Unit: 100 million households

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets" B. Industrial Electronics Market

(a) Semiconductor testing market

Semiconductors are the core foundation supporting consumer electronics, high-end manufacturing, network communications, automotive electronics and the Internet of Things, and have become an important symbol of a country's industrial competitiveness and comprehensive national strength. In recent years, driven by the demand from global downstream industries, emerging markets represented by China have continued to grow rapidly and have become an important growth pole for the global semiconductor industry. Affected by the phased adjustment of downstream application demand, my country's semiconductor market size will be 1,052.10 billion yuan in 2023, a year-on-year decrease of 13.38%. After entering 2024, driven by the popularization of artificial intelligence technology, the recovery of the consumer electronics market, breakthroughs in advanced processes, and the application of emerging technologies, the market will show a strong recovery, with a year-on-year growth of 18.38%, reaching 1,245.50 billion yuan. Looking to the future, as the intelligent upgrading of the manufacturing industry continues to advance, demand for high-end chips will be further released, driving the semiconductor industry to maintain rapid growth. It is expected that the market size will continue to expand at a compound annual growth rate of 8.30% from 2025 to 2029, and is expected to reach approximately 1,867.2 billion yuan by 2029.

China’s semiconductor testing market size

Unit: 100 million yuan

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Data source: Frost & Sullivan "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets" (b) Artificial Intelligence Market

As a key technology that drives global economic and social change, artificial intelligence continues to promote innovation and transformation in various industries. Driven by technological breakthroughs, capital investment, and cross-industry application expansion, China's artificial intelligence market has achieved rapid growth, expanding from 315.10 billion yuan in 2020 to 733.00 billion yuan in 2024, with an average annual compound growth rate of 23.50% during the period. Looking to the future, as emerging technologies such as multi-modal artificial intelligence and edge computing gradually mature, the market is expected to maintain rapid growth, with the scale expected to reach 3,359.9 billion yuan by 2029, and the average annual compound growth rate from 2025 to 2029 is expected to be approximately 37.20%.

China’s artificial intelligence market size

Unit: 100 million yuan

As data centers are included in the country's "14th Five-Year Plan" and the 2035 long-term goals, and it is clear that "accelerating the construction of a national integrated big data center system", my country's data center industry has entered a stage of rapid development. The market size will grow from 116.80 billion yuan in 2020 to 311.10 billion yuan in 2024, with an average annual compound growth rate of 27.75% during the period. Looking to the future, my country's data center market is expected to maintain sustained growth and show a trend of large-scale and intelligent development. The market size is expected to grow from 378.60 billion yuan in 2025 to 668.20 billion yuan in 2029, and the average annual compound growth rate from 2025 to 2029 is expected to be approximately 15.26%.

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China data center market size

Unit: 100 million yuan

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets" C. Higher Education Market

With the advancement of the "Outline of the Plan for Building a Powerful Nation in Education", the state continues to increase investment in education, and the allocation of funds is further tilted towards scientific research innovation and the construction of cutting-edge disciplines. Data show that the national general public budget education expenditure in 2020 was 3,631.0 billion yuan, increasing to 4,207.60 billion yuan in 2024, with an average annual compound growth rate of approximately 3.75% during the period. Against this background, the demand for hardware facilities in the fields of higher education and scientific research continues to increase. As key equipment for teaching experiments, subject construction, and scientific research innovation, electronic measuring instruments have an increasingly strong market demand and are constantly being upgraded in the direction of high precision and multi-function.

China’s general public budget arranges education expenditures

Unit: 100 million yuan

Data source: Ministry of Finance of China

(2) Main challenges faced by the industry

①Insufficient supporting components in China

Electronic components are a capital- and technology-intensive industry that requires high corporate talent and technology accumulation. The world's leading electronic component companies are mainly concentrated in the United States, Western Europe, Japan, South Korea, etc., and have experienced decades of development.

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development and a solid industrial foundation. my country's electronic components industry started late and has limited accumulation. Since entering the 21st century, my country's electronic information industry has developed rapidly, the electronic components industry has entered a stage of rapid development, and the country has continued to attach increasing importance to the industry. However, due to the fact that it started relatively late compared with leading foreign companies, and the components used in high-end instruments are of many varieties, small scale, and have high requirements, the R&D capabilities and production technology of domestic companies are still relatively backward, and some key components need to be supplied from abroad, which increases the difficulty of production.

②International trade friction risk

In recent years, the trend of globalization has been reversed, and changes in the political, economic and other macro-environments such as technological blockade and trade protection have brought unprecedented challenges to the global development of the electronic measuring instrument industry. In international trade frictions, foreign blockades and tariffs on my country's high-end instruments have had a greater impact on China's electronic measuring instrument industry. my country's continuous acceleration of the localization process of high-end instruments has also had a positive impact on the localization of instruments and even the development of globalization.

Cyclical, regional and seasonal characteristics of the industry

Electronic measuring instruments are mainly used in the production and R&D processes of electronic information and related industries, with many downstream application fields, such as communications, semiconductor testing, optoelectronic communications, satellite communications, artificial intelligence, higher education, etc. There is an obvious upgrade cycle in the electronic information industry, and the electronic measuring instrument industry cycle is related to the electronic industry development cycle.

The industry in which the company operates does not have obvious regional or seasonal characteristics.

(4) The issuer’s innovation, creation and creative characteristics and the promotion of deep integration of new technologies, new industries, new business formats, new models and traditional industries

For this part, please refer to “Section 2 Overview/V. Issuer’s sector positioning/(3) Specific instructions on the issuer’s compliance with GEM positioning” of this prospectus.

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(5) Industry competition landscape and main competitors

Industry competition pattern and market position

(1) China’s electronic measuring instrument product market

Competitive landscape of China’s electronic measuring instrument product market

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets"

In the overall competitive landscape of China's electronic measuring instrument market, the first echelon is dominated by leading overseas companies such as Keysight Technologies, Rohde & Schwarz, etc., which have significant advantages in product matrix, parameter performance and sales revenue. As the only domestic company in this field, Dianxi Instruments has demonstrated industry-leading competitiveness in core technology, product parameters and market share. The second echelon mainly includes overseas companies such as Anritsu, National Instruments, Tektronix, and EXFO. These companies have relatively complete product lines and maintain leadership in some market segments and product parameters. In the third echelon, domestic companies such as Puyuan Precision Technology, Dingyang Technology, and Kunheng Shunwei have focused on basic measuring instrument segments such as digital oscilloscopes, and have gradually accumulated certain market competitiveness.

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(2) China’s electronic test and measurement system market

Competitive landscape of China’s electronic test and measurement system market

Data source: Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets"

In terms of China's electronic test and measurement system market, it is also currently dominated by overseas companies. In the first echelon, Keysight Technologies and Rohde & Schwarz rely on advanced hardware technology, deep industry experience, and deep ties with downstream customers to take the lead in system integration and service capabilities. Second-tier players such as National Instruments and MVG provide technologically leading system solutions in specific testing fields and have obvious advantages in market segments. Relying on its long-term accumulation of technology and practical experience in the fields of microwave/millimeter wave instruments, modular instruments and related components, its electronic test and measurement systems have strong market competitiveness. The third echelon mainly includes overseas companies such as AGI and Hollevo, as well as domestic companies Kunheng Shunwei.

Main competitors

(1) Major foreign brands on the market

①Keysight Technology (Keysight NYSE: KEYS)

Founded in 2014, Keysight Technologies is a publicly traded company headquartered in California, USA. Its predecessor was Agilent Technologies, which consisted of the former measurement, components, chemical analysis and medical businesses of Hewlett-Packard in the United States. In 2013, Agilent announced that it would spin off the electronic measurement department and became the predecessor of Keysight Technologies. In 2014, Keysight Technologies was officially established and listed on the New York Stock Exchange for the first time. Keysight's main products include oscilloscopes, signal analysis instruments (signal analyzers, network analyzers, etc.), meters (multimeters, etc.), signal generation instruments (signal sources, etc.), power supplies, wireless communication test instruments, modular instruments, network communication test instruments, etc.

In fiscal year 2025, Keysight's operating revenue was US$5.375 billion and net profit was US$850 million.

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②Rohde & Schwarz

Founded in 1933, Rohde & Schwarz is a company headquartered in Munich, Germany. Its main products include a variety of desktop electronic measuring instruments and total solutions for specific applications, suitable for a variety of market areas such as aerospace and defense, automotive, electronic design, electromagnetic compatibility testing, mobile network testing, research and education, RF and microwave components, and wireless communications. Rohde & Schwarz has a global team in more than 70 countries and employs approximately 14,000 people worldwide.

In the 2024/2025 fiscal year, Rohde & Schwarz’s operating income was 3.16 billion euros.

③Anritsu TYO: 6754

Founded in 1895, Anritsu is a publicly traded company headquartered in Atsugi, Kanagawa Prefecture, Japan. Anritsu's main products include sampling oscilloscopes, optoelectronic communication measurement instruments, signal analyzers, wireless communication test instruments, radio frequency and microwave test instruments, signal generators, network generators, etc. Anritsu currently has more than 4,000 employees and has R&D centers and production bases in the United States, Japan, France, the United Kingdom, Denmark and other countries, with sales all over the world.

In fiscal year 2025, Anritsu's operating income was 117.462 billion yen and net profit was 11.677 billion yen. (2) Major Chinese brands on the market

①Puyuan Jingdian (688337.SH)

Puyuan Fine Technology was founded in 2009, with its headquarters in Suzhou, Jiangsu Province. It will be listed on the Shanghai Stock Exchange Science and Technology Innovation Board in 2022. Puyuan Precision's main products include digital oscilloscopes, spectrum analyzers, signal sources, programmable power supplies, modular instruments, etc., which are widely used in communications, new energy, semiconductors, education and scientific research and other fields. Puyuan Precision insists on independent research and development, and the number of patents in the field of oscilloscopes ranks among the top in the industry. In recent years, the revenue scale of products equipped with self-developed core technology platforms has continued to rise, playing an important supporting role in operating income growth.

In 2025, Puyuan Jingdian's operating income will be 900 million yuan, and its net profit will be 86 million yuan.

②Dingyang Technology (688112.SH)

Dingyang Technology was founded in 2007 and is headquartered in Shenzhen, Guangdong Province. It will be listed on the Shanghai Stock Exchange Science and Technology Innovation Board in 2021. Dingyang Technology's main products are digital oscilloscopes, spectrum analyzers, signal generators, vector network analyzers, etc. Among them, high-end oscilloscope products have achieved breakthroughs in core performance indicators such as bandwidth, sampling rate, and storage depth. Dingyang Technology has obvious advantages in balancing performance and price, especially in mid-to-high-end oscilloscopes.

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The field of instrument and spectrum analyzer continues to improve its competitiveness and has strong growth potential.

In 2025, Dingyang Technology's operating income will be 602 million yuan and net profit will be 143 million yuan.

③Kunheng Shunwei (688283.SH)

Kunheng Shunwei was founded in 2010 and is headquartered in Chengdu, Sichuan Province. It will be listed on the Shanghai Stock Exchange Science and Technology Innovation Board in 2022. Kunheng Shunwei's main products are wireless channel emulators, radio frequency microwave signal generators, customized development products and system solutions, and modular components. Kunheng Shunwei focuses on mobile communications, wireless networking, radar, electronic countermeasures, Internet of Vehicles, navigation and other fields, and has strong competitiveness in the domestic high-end radio test simulation instrumentation market.

In 2025, Kunheng Shunwei's operating income will be 243 million yuan and net profit will be 47 million yuan.

Comparison between the issuer and comparable companies in the same industry in terms of operating conditions, market position, technical strength, key business data and indicators for measuring core competitiveness, etc.

(1) Business conditions

①Foreign companies

Unit: RMB 10,000 Keysight Anritsu Rohde & Schwarz Project

Net Profit Operating Income Net Profit Operating Income Net Profit Operating Income

Profit in 2025/fiscal year 3,809,800.00 602,480.00 508,610.46 50,561.41 - - 2024/fiscal year 3,547,537.50 437,475.00 546,309.95 44,771.89 2,655,158.40 - 2023/fiscal year 3,922,004.56 758,704.03 518,401.69 36,181.38 2,249,859.10 -Note 1: The above comparable company data comes from corporate annual reports; Rohde & Schwarz is a non-listed company and only announces operating income but not net profit. The data comes from the company's official website and is converted into RMB based on the exchange rate in each financial year or adjacent dates; Note 2: Keysight's fiscal year is from November 1 of the previous year to October 31 of this year, and Anritsu's fiscal year is from April 1 of the previous year to March 31 of this year;

Note 3: The local currency of Keysight's financial report is US dollars, and the local currency of Anritsu's financial report is Japanese yen. The above table is converted into RMB using the exchange rate on the balance sheet date of each period or adjacent dates.

②Domestic enterprises

Unit: 10,000 Yuan Puyuan Jingdian Dingyang Technology

Project

Operating income Net profit Operating income Net profit 2025 90,023.40 8,608.38 60,201.70 14,259.03 2024 77,582.62 9,230.31 49,740.48 11,210.99

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Puyuan Jingdian Dingyang Technology

Project

Operating income Net profit Operating income Net profit 2023 67,053.77 10,795.31 48,322.80 15,526.08 Kunheng Shunwei Company

Project

Operating income Net profit Operating income Net profit 2025 24,269.35 4,678.00 239,837.17 43,821.16 2024 22,656.55 3,703.38 205,188.28 27,458.88

2023 25,359.26 8,709.90 215,292.19 18,987.06 Note: The above comparable company data comes from corporate annual reports.

(2) Market position

According to Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets", when analyzing the market competition landscape, the analysis is usually conducted in echelon order. Companies in the first tier generally have a high market position and have outstanding advantages in product matrix, parameter performance, sales revenue and other dimensions; companies in the second tier usually have a relatively complete product matrix and a certain market share, and have leading product parameters and technical advantages in segmented products and markets, and leading parameter performance; companies in the third tier often focus on specific market segments and have certain competitiveness in technology and product dimensions.

China's electronic measuring instrument products and test and measurement systems market is highly competitive and is mainly dominated by overseas companies. However, domestic companies are rising rapidly and show good growth potential and competitiveness in many fields. The comparison of the company's market position with its major domestic and foreign competitors is as follows:

Name Market Position

With leading technology research and development advantages, its self-developed chips and semiconductor processes have greatly reduced costs and improved product quality. It can provide leading performance and functions in a wide range of product portfolios and is recognized as a leader in the core measurement field.

Keysight Technologies

It has significant advantages in the microwave/millimeter wave measuring instruments, communication measuring instruments, photoelectric measuring instruments, basic measuring instruments and test and measurement system markets. It ranks first in the Chinese electronic measuring instrument product market and test and measurement system market.

The world's leading technology group, mainly involved in the fields of communications, information and security technologies, in wireless communications and radio frequency test and measurement, broadcasting and media, air traffic control and military radio communications, network

It has significant advantages in network technology and other aspects.

Rohde & Schwarz

It has great advantages in the microwave/millimeter wave measuring instruments, communication measuring instruments, basic measuring instruments and test and measurement system markets, and ranks first in the Chinese electronic measuring instrument product market and test and measurement system market.

The leader in the field of optical and digital transmission has been investing a lot of manpower, material and financial resources to closely track the development of the world's advanced transmission technology, and has rich technology and experience in wireless and wired technologies that support 5G innovation.

It has great advantages in the photoelectric testing instrument market and ranks in the second echelon in China's electronic measuring instrument product market.

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Name Market Position

It is a supplier of electronic measuring instrument products and system solutions with the most complete product categories, the widest spectrum coverage, the strongest comprehensive strength, and the largest revenue in China. It is currently the only electronics company and measuring instrument enterprise in China that can fully benchmark against leading international companies in the fields of microwave/millimeter wave, optoelectronics, communications and basic measuring instruments.

The overall technical level has reached China's leading level and the international advanced level, and some fields have reached the international leading level. It ranks in the first echelon in China's electronic measuring instrument product market and in the second echelon in China's electronic test and measurement system market.

It is a leading provider of general electronic measuring instrument products and solutions in China and one of the few Chinese companies that can enter the forefront of the global oscilloscope market. With self-research of core technologies as its core competitiveness, Puyuan Precision is one of the few domestic manufacturers that has realized the industrialization of high-end digital oscilloscopes and high-resolution digital oscilloscopes through independent research and development of chip technology. It is accelerating its transformation from an equipment supplier to a solution service provider.

Currently, it is the fifth electronic measuring instrument manufacturer in the world to realize high-end digital oscilloscopes and high-resolution digital oscilloscopes through self-developed technology. Digital oscilloscope products are in a leading position in the country in terms of sales volume and technical strength, and are ranked in the third echelon of China's electronic measuring instrument product market.

As a domestic leader in general electronic measuring instrument products, its high-end oscilloscope products have achieved breakthroughs in core performance indicators such as bandwidth, sampling rate, and storage depth, and can meet the testing needs of cutting-edge fields such as next-generation communications and automotive electronics. With obvious advantages in balancing performance and price, Youdingyang Technology

It continues to improve its competitiveness in the field of mid-to-high-end oscilloscopes and spectrum analyzers.

It has the R&D, production and sales capabilities of mid-to-high-end products, and ranks in the third echelon of China's electronic measuring instrument product market.

Focus on the R&D and production of radio frequency, microwave and high-speed digital test technology products. The mass-produced signal source (vector signal generator) and spectrum analyzer have key performances such as wide frequency band and real-time bandwidth, and can meet complex scenarios such as 5G, satellite communications and industrial Internet; the wireless channel simulator supports full-link simulation of satellite, air-to-air (NTN) and terrestrial mobile networks, and has been adopted by the operator China Mobile Kunhengshunwei

Use. The core components have a high rate of self-research, forming a complete technical closed loop from the front-end RF module to the digital signal processing platform, ensuring supply chain security.

There are a few domestic companies that specialize in the development of high-end radio test simulation instruments and meters, and they are in the third echelon in China's electronic measuring instrument product market and test and measurement system market.

Note: The above industry competition pattern comes from Frost & Sullivan's "Independent Industry Research on Global and Chinese Electronic Measuring Instruments (Products and Systems) Markets" and public information.

(3) Technical strength, key business data and indicators to measure core competitiveness, etc.

The comparison of key business indicators such as the company's technical strength and its major domestic and foreign competitors is as follows:

Comparison of company name, technical strength and other key business indicators

Keysight Technologies has not disclosed the number of its patents and the specific number of R&D personnel; in fiscal year 2023, fiscal year 2024 and Keysight Technologies

In fiscal year 2025, Keysight's R&D expense rates were 16.14%, 18.46% and 18.73% respectively.

Rohde & Schwarz is a non-listed company. It has not disclosed patents, number of R&D personnel and R&D expense rate. Rohde & Schwarz

etc.

According to Anritsu's 2025 annual report, it has a total of more than 1,700 patents; it has not disclosed the specific number of Anri researchers; in fiscal year 2023, fiscal year 2024 and fiscal year 2025, Anritsu's R&D expense rates are 9.04%, 8.74% and 8.67% respectively.

As of December 31, 2025, the issuer and its subsidiaries had a total of 584 patents, including 541 invention patents; in 2023, 2024 and 2025, the R&D expense rate was 17.40%, and the company

22.35% and 18.88%; in 2023, 2024 and 2025, the number of R&D personnel will be 655, 718 and 788 respectively, accounting for 36.65%, 40.18% and 42.12% of the company's total employees. As of December 31, 2025, Puyuan Precision has a total of 553 patents, including invention patent Puyuan Precision

453 items; in 2023, 2024 and 2025, the R&D expense rates are 21.30% and 26.64% respectively

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Comparison of company name, technical strength and other key business indicators

and 25.09%; in 2023, 2024 and 2025, the number of R&D personnel will be 214, 310 and 327 respectively, and the number of R&D personnel will account for 35.55%, 44.48% and 46.78% of the company's total personnel respectively.

As of December 31, 2025, Dingyang Technology has a total of 435 patents, including 272 invention patents; in 2023, 2024 and 2025, the R&D expense rates are 17.82%, 21.81% and 24.09% respectively; in 2023, 2024 and 2025, the number of R&D personnel is 213, 235 and 2025 respectively. There are 275 people, and the number of R&D personnel accounts for 46.10%, 45.72% and 47.66% of the company's total headcount respectively.

As of December 31, 2025, Kunheng Shunwei had a total of 29 patents, including 26 invention patents; in 2023, 2024 and 2025, the R&D expense rates were 22.38%, 31.09% and Kunheng Shunwei respectively.

29.26%; in 2023, 2024 and 2025, the number of R&D personnel will be 63, 71 and 81 respectively, and the proportion of R&D personnel to the company's total personnel will be 48.09%, 51.45% and 54.36% respectively.

The issuer’s competitive advantages and disadvantages

(1) Competitive advantage

①Technical and product advantages

As a national team in the field of electronic measuring instruments, the company has been deeply involved in the field of electronic measuring instruments for many years, has accumulated strong research and development capabilities, and has technical and product advantages.

The company is currently the only electronic measuring instrument company in China that can fully benchmark against leading international companies in the fields of microwave/millimeter wave, optoelectronics, communications and basic measuring instruments. The overall technical level is domestically leading, especially in the field of microwave/millimeter wave measuring instruments, it has reached the international advanced level, and has reached the international leading level in some subdivisions.

In terms of scientific researchers, as of December 31, 2025, the issuer and its subsidiaries had 1,028 scientific researchers, accounting for 54.94% of the total number of employees; in terms of patents, as of December 31, 2025, the issuer and its subsidiaries had a total of 584 patents, including 541 invention patents. It was the electronic measuring instrument company with the largest number of authorized invention patents in China; in terms of standards, as of December 2025 On March 31, the company presided over the preparation of 1 international standard, 3 national standards, and 3 group standards, and participated in the preparation of 12 national standards and 1 group standard. In terms of major projects, since its establishment, the company has undertaken more than 300 major national, provincial and ministerial-level projects, making outstanding contributions to the advancement of my country's electronic measurement technology.

Relying on its good technology accumulation, the company has created a variety of measuring instrument products with excellent performance, excellent technical indicators, and testing capabilities that have reached domestic leading and internationally advanced levels, breaking the long-term technical monopoly of foreign countries on China's high-end electronic measuring instruments. The company's products are widely used in communications, industrial electronics, aerospace and other fields, and have provided services for major national projects such as "Manned Spaceflight", "Lunar Exploration Project", "Beidou Navigation" and "Meridian Project".

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Provides critical testing guarantees. At the same time, the company has a strong ability to transform scientific and technological achievements, effectively promote the industrialization of research and development projects, promote the transformation of research and development results into economic benefits, and provide continuous power for subsequent product and technology research and development and corporate sustainable development.

The company has built a market-oriented product development system based on IPD thinking. It takes market demand as the traction and transmits it to the product research and development end in a timely and orderly manner. It conducts demand understanding, customer analysis, market potential and competition analysis, product portfolio strategy analysis, etc., and maps the demand with technical roadmaps and product roadmap planning. During the product development process, continuous verification ensures that market demand is correctly understood and responded to in a timely manner, so as to achieve the rapid launch of products that are customer demand-oriented, consistent with product development strategies, meet customer needs and have competitive advantages.

The company has long been committed to the continuous innovation of electronic testing and measurement technology, and has created a comprehensive product system in the fields of microwave, optoelectronics, communications, and basics. It has achieved product innovation in microwave/millimetre-wave measuring instruments, optoelectronic measuring instruments, communication measuring instruments, basic measuring instruments, and related fields. Many of its products have reached domestic leading and internationally advanced levels.

②Production and manufacturing advantages

The company has built the largest electronic measuring instrument production base in China. It has the manufacturing capacity and supply chain system with the most complete product categories and the widest spectrum range in the domestic electronic measuring instrument industry. The core process capabilities and digital production level are at the domestic advanced level.

In terms of production line layout, the company has manufacturing capabilities covering precision processing, thin film circuits, electronic assembly, micro-assembly, and assembly and adjustment of complete machine components. It has built modern production lines such as digital milling flexible automated production lines, pulsating assembly units, automatic component debugging units, circuit board automatic debugging platforms, and complete machine automatic test systems. In terms of core process capabilities, the company has process capabilities such as millimeter wave and terahertz precision parts processing technology, high-precision microstrip thin film circuit processing and manufacturing technology, and high-performance microwave hybrid integrated circuit assembly technology. It has domestically advanced independent process capabilities for microwave measuring instrument parts processing, component assembly, and complete machine assembly and adjustment. In terms of digital production, the company has formed a production operation system with MOM as the core, which realizes core functions such as equipment IoT, plan control, production execution, inventory management, and operational analysis. It combines with digital management systems such as CRM, PLM, and ERP to realize digital control of the entire process from order to production. In terms of supply chain management, the company has carried out plan-driven integrated supply chain construction and formed an integrated management and control system with process, organization and performance as the core, effectively improving order response and delivery efficiency.

③Channel and brand advantages

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As the core platform of China Electronics Group that focuses on the R&D and manufacturing of electronic measuring instruments, Diankesi Instruments has always shouldered the mission of promoting the revitalization of the national electronic testing and measurement industry. While continuing to consolidate its independent technological innovation capabilities, the company attaches great importance to the construction of the market system and has gradually built and improved a two-wheel-driven marketing model of "direct sales as the leader and channels as the support" to fully cover domestic and foreign high-end customers and a wide range of industry markets.

In terms of sales system, Dianke Siyi adopts a business structure that organically combines "direct sales + channels". The direct sales system focuses on in-depth services to high-value customers such as national key projects, key units, large central enterprises, core communication equipment suppliers and key scientific research institutes. The company has established a professional and complete direct sales team. Through the two-dimensional fine division of regions and industries, it can accurately identify and respond quickly to the complex needs of customers in multiple regions and product lines. It also provides full-process services from pre-sales consultation, customized solution design to after-sales professional support, effectively consolidating the company's dominant position in the high-end market.

The channel system serves as an important extension and supplement to the direct selling business, widely covering regional small and medium-sized enterprises and educational and scientific research institutions. We have established long-term and stable cooperative relationships with multiple dealer partners, with clear division of labor and rapid response, forming a channel network with wide coverage and strong penetration. Through the "channel linkage" mechanism, the company continues to expand its market reach.

In the process of international expansion, the company relies on overseas subsidiaries and combines local channel partner resources to steadily promote localized operations in key markets, build global marketing and service capabilities, and continue to deepen the international layout from market access to in-depth operations.

④Talent and management advantages

Diankesiyi has been deeply involved in the electronic measuring instrument industry for many years and has a good talent accumulation. It has the largest scientific research talent team in the electronic measuring instrument industry in China. As of December 31, 2025, the company has 1 national-level leading talent, 1 million-level talent, 2 Chinese outstanding engineers, 12 experts with special allowances from the State Council, 2 chief scientists and 3 chief experts of China Electronics Technology Group, and more than 30 provincial and ministerial-level talents. The company's R&D team, production team and sales team have rich experience in the electronic measuring instrument industry, solid professional capabilities and rich management experience. The company's core management team has a reasonable composition, covering various aspects such as business management, technology research and development, marketing, production operations, quality control, financial management, etc. It is highly complementary and ensures the scientificity and effectiveness of the company's decision-making.

Based on its own development reality, the company accelerates the construction of a modern enterprise system, establishes and improves corporate governance structures such as shareholders' meetings and boards of directors, formulates and improves the "Articles of Association", "Rules of Procedure for Shareholders' Meetings" and other governance systems, forming a

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It has established a corporate governance mechanism with statutory rights and responsibilities, transparent rights and responsibilities, coordinated operation, and effective checks and balances. The company continues to explore and optimize the modern enterprise management model, accelerates the construction of process organization, and coordinates the transformation and construction of the DSTE strategy to execution system, IPD integrated product development system, LTC marketing system, and ISC integrated supply chain system. The company's overall operating efficiency continues to improve, and gradually builds a complete, scientific and standardized, and efficient enterprise operation and management system. The company's market competitiveness and profitability have been improved, and it has won national honors such as "State-owned Enterprise Corporate Governance Demonstration Enterprise of the State-owned Assets Supervision and Administration Commission of the State Council".

(2) Competitive disadvantages

①Production scale and intelligence level need to be further improved

In recent years, with the continuous expansion of customer groups and the strong demand brought about by customer transformation and upgrading, the company's production capacity bottlenecks and intelligent transformation and upgrading needs have become more prominent. In order to seize the current favorable development opportunities, the company urgently needs to increase production capacity and production efficiency by purchasing new production lines and intelligently upgrading existing production lines to meet the needs of downstream customers and gain more market share.

②Financing channels are limited

The electronic measuring instrument industry is capital-intensive and talent-intensive, and the company's development and growth are inseparable from continued investment in R&D, production, and sales activities. At present, the company's financing channels are relatively limited, mainly profit accumulation and shareholder investment. The company's rapid development requires more abundant financing channels and a more considerable financing scale.

③ Some technologies, products and solutions still lag behind those of leading foreign companies.

Leading foreign companies started earlier, have strong technologies, comprehensively cover high, middle and low-end products, and have a complete industrial chain. Although the company has reached internationally advanced or even leading levels in individual product fields, there are still gaps compared with leading foreign companies in some technologies, product pedigrees, and industry solutions.

④ There is still a gap in business scale, market share and brand awareness compared with leading foreign companies.

In 2024, the company's operating revenue was 2.052 billion yuan, and its market size and brand awareness ranked among the top in the domestic industry; however, compared with the 35.475 billion yuan of international leading companies Keysight Technologies, 26.552 billion yuan of Rohde & Schwarz, and 5.463 billion yuan of Anritsu in the same period, the company still has a large gap in global market share and brand awareness.

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3. Issuer’s sales situation and major customers

(1) Production capacity, capacity utilization and production and sales volume of major products

Output, sales volume and production-to-sales ratio of main products

During the reporting period, the output, sales volume and production-to-sales ratio of the company's main products are as shown in the following table:

Unit: Taiwan/set

2025 2024 2023

Products

Production Sales Volume Production and Sales Ratio Production Sales Volume Production and Sales Ratio Production Sales Volume Production and Sales Ratio Complete Machine 21,986 21,038 95.69% 23,906 21,473 89.82% 27,139 24,256 89.38% Test System

364 364 100.00% 310 310 100.00% 365 365 100.00%

system

Complete parts 29,653 29,193 98.45% 38,169 49,826 130.54% 17,477 36,913 211.21%

Total 52,003 50,595 97.29% 62,385 71,609 114.79% 44,981 61,534 136.80%

Note: The production volume in the above table is based on the finished product warehousing statistics, and the sales volume is based on the confirmed revenue quantity.

The output of complete machines in each period is greater than the sales volume, mainly because after the complete machines are produced, in addition to direct sales, they will also be integrated into the test system for sale; the output of the test system in each period is equal to the sales volume, mainly because the test system is a project-based business and needs to be continuously adjusted according to customer needs. The project is completed when the customer accepts it, that is, the production completion time coincides with the sales time; the sales volume of the complete components in each period is overall greater than the output, mainly because some of the company's complete component products are outsourced and sold directly with the complete machine, and there are no production steps.

Capacity utilization

The company's system products are highly customized and are designed, produced, and assembled according to the specific needs of customers. The functions, component selection, application scenarios, and process complexity span a wide range, and the concept of design capacity does not apply.

The company has many categories of complete component products, and the corresponding process types, process times, and standard operating times for each type of component are also different. The concept of design capacity is also not applicable.

The company's complete machine products are relatively standard and can be applied to the production capacity concept. The company converts the output of all products according to the selected standards based on classification standards such as similar product characteristics, production processes, raw material composition, and production hours. The calculated production capacity, output, and production capacity utilization are as follows:

Unit: standard number of units

Year 2025 2024 2023 Microwave and millimeter wave measuring instruments Capacity 5,741 5,402 5,035

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device

Production 5,623 5,280 5,547Capacity utilization 97.95% 97.74% 110.16%

Production capacity 3,024 3,024 3,024Other instruments Production volume 3,105 3,083 3,252Capacity utilization rate 102.67% 101.95% 107.54%

During the reporting period, the company's production capacity level remained stable, the production capacity utilization rate was always maintained at a high level, and the production capacity was relatively saturated.

Matching of production capacity, output and capacity utilization with the company’s production and operation conditions

The issuer uses the objective equipment limitations of precision machining and debugging processes, which are common bottleneck processes for all types of complete machine products, as the basis for calculating total production capacity. The issuer counts the number of machines and equipment used in the bottleneck process on a monthly basis, and calculates the total working hours of the bottleneck process machinery and equipment in the month based on 21 working days per month and 7.5 hours per working day, and then divides it by the standard working hours determined by the approximate average number of working hours required for various types of complete equipment in the bottleneck process (120 hours for microwave and millimeter wave measuring instruments, 110 hours for other types of instruments), which is the standard production capacity for the month.

That is, the formula for calculating production capacity is: production capacity (months) = number of machines * number of outputs = number of machines * monthly working hours per machine / each required working hours. The total 12-month production capacity is the annual production capacity.

In order to accurately reflect the capacity utilization rate, the company also starts from the actual situation and specifically analyzes the three-level product classification (for example, the first-level classification - complete machine; the second-level classification - microwave and millimeter wave measuring instruments; the third-level classification - signal generator, signal analyzer, network analyzer, receiver, etc.), and selects mainstream models as representatives in each third-level product classification. According to the ratio of the working hours required for each type of complete machine equipment in the bottleneck process compared to the standard working hours, a discount factor is assigned to each type of complete machine equipment. All the complete equipment produced and put into storage during the month are multiplied by their respective discount coefficients and added together to obtain the total discounted output for the month.

That is, the output calculation formula is: Σ The discount coefficient of each three-level product category * the number of finished product warehousing units. The total output in 12 months is the annual output.

The company dynamically regulates the production plan based on market demand and production capacity, conducts capacity building in a timely manner according to production capacity needs, and supplements necessary instruments and equipment. The workload of production, processing, debugging, etc. is full and has a certain degree of flexibility. The production capacity utilization rate remains between about 97% and 110%. During the period, the production capacity utilization rate of some products exceeded 100%, mainly because the production tasks of the year were heavy and a lot of overtime production was performed.

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In summary, the calculation process of the issuer's production capacity, output and capacity utilization is reasonable, and the capacity utilization is consistent with the actual production and operation conditions.

(2) Sales revenue of main products

The company's main products and services include complete machines, test systems and complete components. The sales revenue of the company's main products and services are as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Percentage Amount Percentage Amount Percentage of complete machine business 133,712.28 56.23% 123,502.64 60.51% 142,031.45 66.58% of which: products

120,667.05 50.74% 121,127.93 59.35% 107,682.39 50.48% Sales

entrusted

13,045.23 5.49% 2,374.71 1.16% 34,349.06 16.10% Research and Development

Test system industry

88,059.34 37.03% 62,758.34 30.75% 52,814.87 24.76%

Complete parts business 14,454.99 6.08% 16,673.13 8.17% 17,082.84 8.01% Other business 1,588.59 0.67% 1,164.73 0.57% 1,404.55 0.66%

Total 237,815.20 100.00% 204,098.84 100.00% 213,333.70 100.00%

Distinguished according to the sales model, the company's sales model can be divided into direct sales and distribution. Distribution is divided into contracted dealer customers and non-contracted dealer customers according to whether a distribution agreement is signed. The revenue classification of the company's main products according to different sales models is as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

28,282.97 11.89% 16,251.58 7.96% 7,279.61 3.41%

Non-signing

31,481.17 13.24% 39,997.71 19.60% 47,317.74 22.18% Dealers

Total 237,815.20 100.00% 204,098.84 100.00% 213,333.70 100.00%

During the reporting period, the sales volume and average price of the company's main products are as follows:

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Unit: unit price (10,000 yuan/set (set)); sales volume (set, set)

2025 2024 2023

Products

Unit Price Sales Unit Price Sales Unit Price Sales

Complete machine 5.74 21,038 5.64 21,473 4.44 24,256 Test system 241.92 364 202.45 310 144.70 365 Complete components 0.50 29,193 0.33 49,826 0.46 36,913 Note: The entrusted research and development part has been deducted when calculating the sales volume and unit price of the complete product.

During the reporting period, the average sales price of the company's main products fluctuated to a certain extent. The main reason was that the company had a large number of subdivided products and changes in product structure. Among them, the unit price of complete products continued to increase, mainly because the company strengthened the research and development of new products for the market and launched new products with higher unit prices.

(3) Major customers

Sales situation of top five customers

During each reporting period, the company’s sales to its top five customers are as follows:

Sales revenue as a percentage of main business period Serial number Customer name Main sales content

(10,000 yuan) Income ratio

Complete machine and testing department under China Electronics Technology Group Co., Ltd.

1 59,284.74 24.93% belongs to the unit system, complete parts, etc.

Complete machine and testing department of China Aerospace Science and Technology Corporation

2 17,764.81 7.47%

Affiliated units: systems, whole parts, etc.

3 Unit B Overall - entrusted research and development 13,015.75 5.47% 2025

Complete machine and test system

4 A unit 11,373.01 4.78% System, whole parts, etc.

Complete machine and test system

5 Beijing University of Aeronautics and Astronautics 7,934.87 3.34% Systems, complete components, etc.

Total 109,373.18 45.99%

Complete machine and testing department under China Electronics Technology Group Co., Ltd.

1 54,642.05 26.77% belongs to the unit system, complete parts, etc.

Complete machine and test system

2 Unit A 13,372.29 6.55% System, whole parts, etc.

Complete machine and testing department of China Aerospace Science and Technology Corporation

3 7,191.31 3.52% 2024

Affiliated units: systems, whole parts, etc.

Sichuan Jiuzhou Investment Holding Group Co., Ltd. Complete machine and testing system

4 5,177.42 2.54% Subsidiary units of the company Systems, whole parts, etc.

Under Luxshare Precision Industry Co., Ltd.

5 Complete machines and components 4,582.34 2.25% belongs to the unit

Total 84,965.41 41.63%

Complete machine and testing department under China Electronics Technology Group Co., Ltd.

1 43,891.82 20.57% 2023

Affiliated units: systems, whole parts, etc.

2 C unit complete machine-entrusted development 23,165.09 10.86%

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Sales revenue as a percentage of main business period Serial number Customer name Main sales content

(RMB 10,000) Income ratio 3 Unit B Complete machine - entrusted development 11,183.96 5.24% Complete machine and testing system under China Aerospace Science and Technology Corporation

4 8,679.93 4.07% belongs to the unit system, complete parts, etc.

Complete machine and test system

5 A unit 6,587.15 3.09%

systems, whole parts, etc.

Total 93,507.96 43.83%

During the reporting period, the sales from the company's top five customers accounted for 43.83%, 41.63% and 45.99% of the main business revenue respectively.

During the reporting period, except for the subsidiary units of China Electronics Technology Group Co., Ltd. and Unit A, there was no relationship between the above-mentioned major customers and the directors, supervisors, senior managers and core technical personnel of Diankesiyi.

Changes in the top five customers in each reporting period

During the reporting period, the basic information of the company’s top five new customers in each period is as follows:

During the period, the name of the new customer was added and the reason why the new customer entered the top five

The company began to cooperate with university customers in 2018 and gradually strengthened cooperation. It mainly purchases complete machines, test systems and Beijing University of Aeronautics and Astronautics in 2025 from the company.

Whole components, the test system that will be completed and accepted in 2025 has a large amount, so it is among the top five customers.

The company began to cooperate with local state-owned enterprise customers in 2016 and gradually strengthened cooperation with Sichuan Jiuzhou Investment Holding Group. It mainly purchases complete machines, systems and complete components from units affiliated to the Test System Group Co., Ltd. The amount of test systems completed in 2024 is larger than that in 2024, so it has entered the top five customers.

Private enterprise customers, the company began to cooperate with them in 2020, and gradually Luxshare Precision Industry Co., Ltd.

To strengthen cooperation, it mainly purchases complete machines and components from the company, and is a subsidiary of 2024 Co., Ltd.

The annual purchase amount is large, so it ranks among the top five customers.

The company will undertake the entrusted research and development project of Unit C in 2020, mainly in 2023.

The acceptance will be completed in 2023, so it will enter the top five customers.

During the reporting period, the company's top five customers had relatively stable cooperation with the company.

4. The issuer’s procurement situation and major suppliers

(1) Procurement of main raw materials

Procurement of main raw materials

(1) Main composition of raw materials

During the reporting period, the main composition of the company’s raw materials is as shown in the following table:

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Material Type Main Composition

Components: Resistors, connectors, optical devices, microwave devices, power supply fans, crystal oscillators and other integrated circuits; Digital integrated circuits, microwave integrated circuits, analog integrated circuits, other integrated circuits and other system integration modules; Industrial computers, test system components, etc.

Metal and non-metal materials: ferrous metal materials, non-ferrous metal materials, non-metal materials, hardware spare parts, etc.

Mechanical structural parts, machined parts, molded parts, etc.

Outsourcing processing: surface treatment, assembly, processing, etc.

Others -

(2) Classified procurement of raw materials

During the reporting period, the company’s procurement of main raw materials was as follows:

Unit: 10,000 yuan 2025 2024 2023

Procurement content

Amount Percent Amount Percent Amount Percent System integration modules 44,112.75 36.87% 33,412.57 38.53% 42,978.99 43.86% Integrated circuits 30,007.04 25.08% 18,113.16 20.89% 19,222.64 19.62% Components 29,095.77 24.32% 22,355.71 25.78% 21,464.90 21.90% Mechanical structural parts 9,446.65 7.89% 6,631.92 7.65% 7,393.93 7.55% Metal and non-metal materials 4,187.29 3.50% 3,821.36 4.41% 3,743.30 3.82% Outsourced processing 2,085.24 1.74% 1,783.84 2.06% 1,730.29 1.77% Others 724.70 0.61% 589.17 0.68% 1,459.65 1.49%

Total 119,659.45 100.00% 86,707.72 100.00% 97,993.70 100.00%

During the reporting period, the company's raw material procurement amounts were RMB 979.937 million, RMB 867.0772 million and RMB 1,196.5945 million respectively. The company's raw material procurement structure was relatively stable. The main raw materials were modules for system integration, integrated circuits and components. During the reporting period, the total procurement proportions of the above materials were 85.38%, 85.21% and 86.26%. The company's purchase amount in 2024 will decrease compared with 2023. On the one hand, the company's new generation 1466 series signal generator, 4082 series signal/spectrum analyzer, and 3674 series vector network analyzer will be launched in 2022. A total of more than 2,000 sets will be put into production until 2024. The production plan was basically completed in 2016, and the procurement demand for related raw materials gradually decreased; on the other hand, the company carried out supply chain management reform and launched the integrated supply chain procurement planning module. It changed from the original preparation of procurement plans directly according to quotas to the advance release of long-lead materials based on the material lead time.

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Material procurement plan, which is issued based on market demand and procurement lead time for short- and medium-cycle materials. The company's purchase amount in 2025 will increase significantly compared with 2024. On the one hand, due to the impact of international trade frictions, the prices of some precious metal raw materials have increased significantly, resulting in an increase in the procurement cost of some raw materials; on the other hand, the number of newly put into production units of complete machines and components has increased that year, and the procurement demand for related raw materials has increased.

Purchase prices of main raw materials

The company's test system products are highly customized and need to select different categories of raw materials according to customer needs. Even if they are classified into the same procurement category, due to different materials, specifications, performance, and brands, the price differences are large and are not comparable. The company's complete machine and complete component products have many main raw material subcategories. Therefore, after merging according to the secondary categories, the unit price changes are listed as follows:

2025 2024 2023 Raw Material Name Unit

Year-on-year change Year-on-year change

unit price unit price unit price

rate rate

Integrated circuit yuan/unit 68.21 4.46% 65.30 20.49% 54.20

Among them: Analog integrated circuits Yuan/unit 35.22 4.99% 33.54 24.53% 26.94 Digital integrated circuits Yuan/unit 112.67 28.71% 87.53 4.92% 83.43

Microwave integrated circuit Yuan/unit 119.92 -9.74% 132.86 -0.81% 133.95

Components yuan/unit 4.86 -17.91% 5.92 -32.40% 8.75

Among them: power supply fan type yuan/piece 80.19 -31.17% 116.50 69.06% 68.91 optical device type yuan/piece 73.27 -9.55% 81.00 87.22% 43.27 crystal oscillator yuan/piece 205.54 25.00% 164.43 28.83% 127.64 Connector type Yuan/unit 19.15 -16.83% 23.02 26.13% 18.25 Yuan/unit,

Microwave devices 23.46 -8.25% 25.57 -43.16% 44.99 meters

Resistor, capacitor and sensor type Yuan/unit 0.98 15.61% 0.85 -33.00% 1.26

Mechanical structural parts Yuan/unit 10.07 -1.41% 10.22 -0.09% 10.23

Yuan/piece,

Metal and non-metal materials 0.19 3.54% 0.19 1.05% 0.18 kg

During the reporting period, the purchase price of the company's integrated circuits continued to rise, the purchase price of components continued to fall, and the prices of mechanical structural parts and metal and non-metal materials were relatively stable. Due to different process routes and demand scenarios for different products, the company purchases various specifications and models of materials under the same material category in different years, resulting in fluctuations in the average purchase unit price.

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(2) Main energy procurement situation

During the reporting period, the main energy consumed by the company in its production and operations was electricity and water. The energy supply was sufficient. The basic situation of main energy consumption is as follows:

Project 2025 2024 2023 Electricity fee (10,000 yuan) 647.77 599.79 568.12 Electricity consumption (10,000 kWh) 874.59 790.10 736.50Unit price (yuan/kWh) 0.74 0.76 0.77 Water fee (10,000 yuan) 37.32 37.70 34.14Water consumption (10,000 tons) 7.36 7.48 6.57Unit price (yuan/ton) 5.07 5.04 5.20

During the reporting period, the company's energy consumption remained basically stable. Since 2023, the company's electricity bill has been steadily declining, mainly due to the company's use of rooftops for photovoltaic power generation, and this part of the power supply enjoys preferential policy discounts. The company's water fee unit price will drop significantly in 2024. This is mainly due to the relocation of Anhui Siyi to a new industrial park in 2024. The overall office scale has expanded and water consumption has increased. The water fee in Bengbu is lower than that in Qingdao, which has lowered the company's overall water fee unit price.

(3) Main raw material suppliers

Procurement status of the top five raw material suppliers

During the reporting period, the company’s procurement status from the top five raw material suppliers is as follows:

Accounting for current raw materials

Purchase amount

Period Serial Number Supplier Name Main Procurement Content Total Material Procurement (RMB 10,000)

Proportion of China Electronics Technology Group and components, integrated circuits,

1 16,097.39 13.45% of its subsidiaries System integration modules, etc.

Shenzhen Feister Technology has components, integrated circuits,

2 5,269.54 4.40% Co., Ltd. System integration modules, etc.

Shenzhen Lianchuangjie Technology Co., Ltd.

3 Components, integrated circuits, etc. 4,060.10 3.39% 2025

Ltd.

Nanjing Yuheng Electronic Technology Co., Ltd.

4 Components, integrated circuits, etc. 3,030.92 2.53% Co., Ltd.

China State Shipbuilding Co., Ltd. For components and system integration

5 2,737.70 2.29% Subsidiary units of the company Modules, etc.

Total 31,195.64 26.07%

China Electronics Technology Group has components, integrated circuits,

1 11,883.04 13.70%

Co., Ltd.'s subsidiary units, system integration modules, etc.

2024

Shenzhen Feister Technology has components, integrated circuits,

2 2,949.36 3.40% Co., Ltd. System integration modules, etc.

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Accounting for current raw materials

Purchase amount

Period Serial Number Supplier Name Main Procurement Content Total Material Procurement (RMB 10,000)

Proportion of Qingdao Aerospace Electronic Information Technology

System integration modules, gold

3 Technology Research Institute Co., Ltd. and 2,004.29 2.31% metallic and non-metallic materials

its subsidiaries

China State Shipbuilding Co., Ltd. For components and system integration

4 1,680.02 1.94% Subsidiary units of the company Modules, etc.

Chengdu Hangke Intelligent Instrument Measurement and Control Technology

5 Modules for system integration 1,450.25 1.67% Technology Co., Ltd.

Total 19,966.96 23.03%

Under China Electronics Technology Group, components, integrated circuits,

1 11,138.08 11.37% belongs to the unit, system integration modules, etc.

Shenzhen Feister Technology has components, integrated circuits,

2 3,903.59 3.98% Co., Ltd. System integration modules, etc.

Chengdu Minshan Hengrong Electromagnetic Technology

3 Technology Research Co., Ltd. and its system integration modules 3,670.44 3.75% 2023

Related parties

China State Shipbuilding Co., Ltd. For components and system integration

4 2,595.23 2.65% Subsidiary units of the company Modules, etc.

Chengdu Huaxing Huiming Technology Co., Ltd.

5 Modules for system integration 2,418.96 2.47% Co., Ltd.

Total 23,726.29 24.21%

Note 1: The subsidiary of Qingdao Aerospace Electronic Information Technology Research Institute Co., Ltd. is Shandong Haikyong Engineering Technology Co., Ltd.;

Note 2: Related parties of Chengdu Minshan Hengrong Electromagnetic Technology Research Co., Ltd. include Changying Hengrong Electromagnetic Technology (Chengdu) Co., Ltd., Changying Hengrong Electromagnetic Technology (Shanghai) Co., Ltd. and Beijing Changying Hengrong Electromagnetic Technology Co., Ltd.

During the reporting period, the purchase amounts of the company's top five raw material suppliers were RMB 237.2629 million, RMB 199.6696 million and RMB 311.9564 million respectively, accounting for 24.21%, 23.03% and 26.07% of the raw material purchase amount respectively. The company's products are highly customized, requiring a large number of raw material categories and specifications to be purchased, and the procurement is relatively dispersed. There is no situation where the procurement ratio from a single raw material supplier exceeds 50% of the current total procurement or is heavily dependent on a few suppliers.

During the reporting period, except for the subsidiaries of China Electronics Technology Group Co., Ltd., there was no related relationship between the above-mentioned major suppliers and the directors, supervisors, senior managers and core technical personnel of China Electronics Technology Co., Ltd.

Changes in the top five raw material suppliers in each reporting period

During the reporting period, the basic information of the company's top five new raw material suppliers in each period is as shown in the following table:

During the period, the name of the new supplier was added and the reason why the new supplier entered the top five was added.

This supplier has obvious price and delivery advantages in some core device fields. Shenzhen Lianchuangjie Technology Co., Ltd.

We have always maintained a good cooperative relationship, and the current purchase amount is relatively large, so it will enter the top five in 2025.

Ltd.

supplier.

Nanjing Yuheng Electronic Technology has. This supplier has obvious price and delivery advantages in some core device fields. It is also issued

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During the period, the name of the new supplier was added and the reason why the new supplier entered the top five was added.

Co., Ltd. has always maintained a good cooperative relationship, and the current purchase amount is relatively large, so it ranks among the top five suppliers.

This supplier has rich experience in microwave anechoic chamber construction and has close cooperation. The company undertook Qingdao Aerospace Electronic Information Technology

There are various darkroom construction needs in the test system project. Cooperation will be carried out after comprehensive assessment. Dangshu Research Institute Co., Ltd.

The purchase amount in the current period is relatively large, so it ranks among the top five suppliers.

This supplier has rich experience in microwave anechoic chamber construction and has close cooperation. The Shandong sea and air engineering technology undertaken by the company has

There are various types of darkroom construction needs in the test system project. Cooperation will be carried out after comprehensive assessment. When 2024 Co., Ltd.

The purchase amount in the current period is relatively large, so it ranks among the top five suppliers.

This supplier has rich experience in the research and development of radio frequency adaptation equipment and various control software. During the test system development process, Chengdu Hangke Intelligent Instrument Measurement and Control Technology Co., Ltd. learned that users have configuration requirements, comprehensive evaluation, and considered many factors such as technology companies and user needs. The current purchase amount is large, so it ranks among the top five suppliers.

The company's customized contract project has procurement needs. After comprehensive evaluation, considering the end-user needs, Chengdu Minshan Hengrong Electromagnetic Technology

Looking for other factors, we started cooperation, and the current purchase amount was relatively large, so it entered the top five major research co., Ltd.

supplier.

The company's customized contract project has procurement needs. After comprehensive evaluation, considering the end-user needs, Changying Hengrong Electromagnetic Technology (Chengrong)

In order to meet other factors, we started cooperation, and the current purchase amount was relatively large, so it entered the top five major cities) Co., Ltd.

supplier.

The company's customized contract project has procurement needs. After comprehensive evaluation, considering the end-user needs, Changying Hengrong Electromagnetic Technology (Part 1)

In 2023, seeking other factors, cooperation was launched. The current purchase amount was relatively large, so it entered the top five ocean) Co., Ltd.

supplier.

Compared with similar products, the power modules produced by this supplier have lower prices and stable quality. Qingdao Jereh Industrial Control Technology Co., Ltd.

and other advantages. Some of its CPU modules have high cost performance among similar products. Current Purchasing Co., Ltd.

The amount is relatively large, so it ranks among the top five suppliers.

This supplier has obvious supply advantages in some test system components. The company customizes Chengdu Huaxing Huiming Technology

The contract project has related procurement needs and the current purchase amount is relatively large, so it ranks among the top five limited companies.

supplier.

5. The issuer’s main fixed assets, intangible assets and other operating factors

(1) Main fixed assets

The company's main fixed assets include houses and buildings, machinery and equipment, electronic equipment, etc. until 2025

As of December 31, the company’s fixed assets were as follows:

Unit: 10,000 yuan

Fixed assets Original value of assets Asset depreciation Impairment provision Net asset value

Houses and buildings 16,342.58 5,345.29 - 10,997.29

Machinery and equipment 18,553.93 12,166.13 625.85 5,761.94

Transportation equipment 103.38 96.88 - 6.50

Electronic equipment 41,126.26 19,233.92 3,558.35 18,333.99

Office and others 987.22 683.55 4.78 298.89

Total 77,113.37 37,525.78 4,188.98 35,398.61

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Houses and buildings

(1) Owned houses and buildings

As of December 31, 2025, the domestic buildings and buildings owned by the company and its subsidiaries are as follows:

All Obtain Other Item Serial Number Certificate Number Location Area (㎡) Purpose

rights holder method rights

Inherited 1 Finishing factory building at No. 98 Xiangjiang Road 8,405.82 Industrial Not acquired

Inherited 2 Scientific research building at No. 98 Xiangjiang Road 13,980.92 Industrial No acquisition

Lu (2021) Qing Successor 3 Neixingyi Electronics Factory Building, No. 98 Xiangjiang Road 7,211.82 Industry Huangdao District, Wudao City Not Obtained

Movable Property Rights No. 4 Inherited Training Center Building, No. 98 Xiangjiang Road 7,200.58 Industrial No. 0351754 Electrical Engineering Technology Acquired

Siyi inherited 5 Instrument factory building at No. 98 Xiangjiang Road 24,282.64 Industrial No acquisition

Comprehensive Service Succession 6 Comprehensive Service Building at No. 98 Xiangjiang Road 4,018.25 Wuwu Building Obtained Lu (2021) Qing

Huangdao District, Dao City does not inherit 7 Activity Center, No. 98 Xiangjiang Road, Huangdao District 1,655.50 Industrial Real Estate No. 0354571

Siyi

Anhui (2025) Clam

Technology Inherited 8 Bu City Real Estate Rights Building A9, No. 1515 Lushan Avenue 16,655.41 Industry None (Security No. 0018355

emblem)

The issuer's guardroom, mailroom, and reception room have not yet applied for a building ownership certificate, with a total construction area of 129 square meters. They were all transferred to Dianke Siyi for free by No. 41 in accordance with the approval of the Ministry of Finance. Due to the small construction area, according to the relevant provisions of the "Construction Project Construction Permit Management Measures", no construction permit was issued during the construction of the relevant buildings, so acceptance and certification were not carried out after completion.

According to the "Shandong Province Business Entity Public Credit Report" obtained by the issuer (report number: SDW2025080700293), during the reporting period, the issuer had no records of administrative penalties in the fields of natural resources and planning, housing and urban-rural construction, and urban management.

To sum up, the issuer’s existing unlicensed properties have a small construction area, are not key production buildings, and have little impact on the company’s production and operations. They are all classified by No. 41 according to the approval of the Ministry of Finance rather than built by the issuer. There is no illegal construction on the issuer’s part. The above matters do not constitute major violations of laws and regulations and do not constitute substantial obstacles to this issuance.

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China Electronics Cosi Technology Co., Ltd. Prospectus

(2) Rental property

As of December 31, 2025, the annual rent of the company and its subsidiaries exceeded RMB 150,000 or the area

The situation for rental properties exceeding 200.00 square meters is as follows:

Lease area

Serial number Lessee Lessor Property certificate number Location Lease starting period Rent (㎡)

Lu (2022) Qing

Room 921, No. 98, Xiangjiang Road, Huangdao District, Dao City

1 9,419.90

Movable property rights Part of the building

3,670,964.11 Forty-one Institute No. 0394862 2024.1.1-2028.12.31

(yuan/year)

Qingfang Land Rights City No. 98 Xiangjiang Road

2 No. 20072499 Key Laboratory Metrology 670.61

Part of the station building

Shanghai Tuhua Shanghai Real Estate Xu Zi Tianzhou Xuhui District Shanghai

321,346 (yuan/3 Industrial Co., Ltd. (2011) No. 99, Building 10, 318 248.00 2025.1.1-2027.6.30

Year) Company Room No. 005810

Jiangsu Xindong

Su (2023) Ning Yuhuatai District, Nanjing City

Carbon Neutral Science 300,621 (yuan/4 Yu Real Estate No. 12 Jinyang East Street 1 245.69 2024.1.1-2027.12.31

Technology Group (years)

Room 1802, Unit 1, Building No. 0001157

Ltd.

Sichuan (2020) Cheng

urban real estate

Flowers in Jinniu District, Chengdu

No. 0188845

Zhu Ying, Wu 399 Xishun Street, Zhaobi 450,344 (Yuan/No. 5, Sichuan (2020)) 296.10 2025.1.1-2025.12.31

Diankesiyi Unit 2, Building 1, Yi No. 27 years) Chengdu Real Estate

Floor No. 2707

Rights No. 0188846

No.

Shenzhen Hengying Guangdong (2017) Shenzhen Nanshan District, Shenzhen

361,000 (yuan/6 Industrial Management Shenzhen Real Estate Building 2, Mei Technology Plaza 9 186.00 2025.1.1-2025.12.31

Year) Co., Ltd. No. 0024768 Building 06

Chengdu City, Sichuan Province

China Electronics

Sichuan (2021) Chengniu District Yipin Tianxia Da

Technology Group 123.19 (10,000 yuan 7 Urban Real Estate Building 37, No. 300 Street 1 1,833.22 2025.12.1-2031.3.1

Company tenth/year)

No. 0137195 Floor 2, Room 01 and 2

Institute

Floor No. 2

West of Haidian District, Beijing

No. 131, Fourth Ring North Road

New Aote Investment Building No. 1, New Aote

Haiquanzi No. 316,728.75 8 Capital Group Owned Science and Technology Building North Building No. 333.75 2025.3.1-2028.5.31

No. 03622 (yuan/half year) Co., Ltd. Partial area on the 2nd floor, North

Partial area on the 5th floor of the building

domain

West of Haidian District, Beijing

New Auto Investment No. 131, Fourth Ring North Road

Haiquan No. 231,641.41 9 Zizi Group Owned No. 1 Building New Aote 244.09 2025.3.1-2028.5.31

No. 03622 (yuan/year) Siyi Technology Co., Ltd. North Building, Science and Technology Building

(Anhui) Part of the 2nd floor

Anhui (2023) Bengbu High School, Bengbu City, Anhui Province

9,679.125 10 Qingdao Xingyi Bu City Real Estate New District Yingbin Avenue 2,650.00 2024.6.1-2026.9.30

(yuan/month) No. 0117994 No. 969

West of Haidian District, Beijing

New Auto Investment No. 131, Fourth Ring North Road

Beijing Branch Gonghai Quanzi No. 1,036,440.86 11 Zizi Group Owned Building No. 1 New Auto 1,092.14 2025.3.11-2028.5.31

Division No. 03622 (yuan/year) Co., Ltd. North Building, Science and Technology Building

Part of the 5th floor

Note: In December 2025, the company signed a "Site Rental Contract" with the Tenth Research Institute of China Electronics Technology Group Corporation. cut

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As of the end of the reporting period, the leasing of the seventh property had not yet begun.

In addition to the above-mentioned house leasing, the issuer and the Northwest Branch of China Electronics Technology (Beijing) Property Management Co., Ltd. signed a "Hotel Long Private Room Cooperation Agreement", stipulating that the Northwest Branch of China Electronics Technology (Beijing) Property Management Co., Ltd. will provide 15 guest rooms and 2 parking spaces to the issuer. The cooperation period is from January 1, 2025 to December 31, 2025, and the fee is 450,000 yuan per year.

(2) Main intangible assets

As of December 31, 2025, the company’s intangible assets are as follows:

Unit: RMB 10,000 of intangible assets Original book value Accumulated amortization Book value

Land use rights 1,065.84 614.98 450.86Software 5,976.21 1,595.00 4,381.21Patent rights 429.20 175.26 253.94

Total 7,471.25 2,385.24 5,086.01

Land use rights

As of December 31, 2025, the domestic land use rights owned by the company and its subsidiaries are as follows: Use area Obtained use rights Other serial numbers Certificate number Location Purpose Termination date

Rights holder (㎡) Method Type Rights Training No. 98, Xiangjiang Road

Lu (2021) Qing Central Building, Development Zone Fragrance

Nei Xingyi, No. 98, Jiang Road, Huangdao District, Dao City

Real estate rights for electronic factories and comprehensive services acquired

No. 0351754 Service Building, Scientific Research Building, Fine

Processing plant, instrument factory

State-owned Jianlu (2021) Qing Electrical Technology Industry

1 61,586.04 2026.11.30 Construction land Siyi, Huangdao District, Wudao City 98 Xiangjiang Road, Huangdao District Land inheritance

Right to Use Real Property Rights No. Activity Center Obtained

No. 0354571

Lu (2021) Qing

South of Xiangjiang Road, Huangdao District, Huangdao District, Dao City

Real estate title Taihangshan Road West acquired

No. 0351614

Anhui (2025) Clam

State-owned Jianbu City Real Estate No. 1515 Lushan Avenue, Anhui Industrial Inheritance

2 18,429.04 2060.1.19 Construction land No rights acquired. Land for building A9 in Siyi courtyard

Right of use No. 0018355

Patent

As of December 31, 2025, the company and its subsidiaries had obtained a total of 584 authorized patents, of which

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China Electronics Cosi Technology Co., Ltd. Prospectus

It has 541 patents, please refer to "Appendix 1: List of registered patents owned by the issuer" of this prospectus for details.

Trademark

As of December 31, 2025, the issuer and its subsidiaries owned 26 domestic registered trademark certificates and 1 overseas registered trademark certificate. For details, please refer to "Attachment 3: List of registered trademarks owned by the issuer" in this prospectus.

Domain name

As of December 31, 2025, the issuer owned a total of 19 domain names. The details are as follows:

Serial number Right holder Registered domain name Registration date Validity until Domain name type Acquisition method 1 ceyear.com 2017.5.26 2028.5.26 Domestic domain name Original acquisition 2 ceyear.cn 2017.5.31 2028.5.31 Domestic domain name Original acquisition 3 cetcei.cn 2016.1.22 2027.1.22 Domestic domain name originally acquired 4 ceyear.net 2017.5.31 2027.5.31 Domestic domain name originally acquired 5 ceyear.co.id 2017.12.19 2027.12.18 International domain name originally acquired 6 ceyear.co.in 2017.11.7 2027.11.7 International domain name originally acquired 7 ceyear.co.uk 2017.12.12 2027.12.11 International domain name, originally acquired 8 ceyear.com.de 2017.11.7 2027.11.7 International domain name, originally acquired 9 ceyear.com.pk 2017.11.7 2027.11.6 International domain name, originally acquired 10 ceyear.com.ru 2017.11.7 2027.11.6 International domain name originally acquired 11 ceyear.eu 2017.12.12 2027.12.12 International domain name originally acquired 12 ceyear.id 2017.12.12 2027.12.11 International domain name originally acquired 13 ceyear.in 2017.11.7 2027.11.7 International domain name, originally acquired 14 ceyear.ir 2017.11.10 2027.11.9 International domain name, originally acquired 15 ceyear.jp 2017.11.8 2027.11.7 International domain name, originally acquired 16 ceyear.pk 2017.11.7 2027.11.6 International domain name Original acquisition of 17 ceyear.ru 2017.11.7 2027.11.6 International domain name Original acquisition of 18 ceyear.uk 2017.12.12 2027.12.11 International domain name Original acquisition of 19 ceyear.us 2017.11.7 2027.11.7 International domain name Original acquisition

Software copyright

As of December 31, 2025, the issuer and its subsidiaries owned 267 computer software copyrights. For details, please refer to "Appendix 2: List of computer software copyrights owned by the issuer" of this prospectus.

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(3) Qualifications

As of the signing date of this prospectus, the issuer and its subsidiaries have obtained the necessary business licenses for their production and operations.

The details of other business qualifications are as follows:

Serial number Certificate holder Certificate name Certificate number/Registration code Issuing authority Validity period Beijing Tairuite

Environmental Management System Certification 2024.11.24- 1 Diankesi Instrument 0482024E0486R2L Certification Co., Ltd.

Certificate 2027.11.23 Ren company

Information Technology Service Management Xingyuan Certification 2025.4.24-2 2 Diankesi 0352025ITSM193R0CMN

Management system certification certificate Xinxin Co., Ltd. 028.4.23

Information security management body Xingyuan certification in progress 2025.4.24-2 3 Diankesi 0350125IS30305R0M

Department Certification Certificate Heart Co., Ltd. 028.4.23 Beijing Tairuite

Occupational Health and Safety Management 2024.11.24- 4 Diankesi Instrument 0482024S0419R2L Certification Limited Liability

Management system certification certificate 2027.11.23 Ren company

Guangzhou Saibao recognition

Quality management system certification 2024.7.1-20 5 Diankesi Instrument 01224Q30508R2L Certification Center Service

Certificate 27.5.23 Co., Ltd.

Qingdao Ecology 2026.1.22-2 6 Diankesi Instrument Pollution Discharge Permit 913702113341616485001X

Environment Bureau 031.1.21

foreign trade operator

7 Dianke Siyi 03567872 - Long-term registration form

Sending and receiving import and export goods Qingdao Development Zone Hai

8 Dian Kesi Instrument 370226007Z Long-term consignor registration close

Qingdao Ecology 2022.8.9-20 9 Diankesi Instrument Radiation Safety License Luhuan Radiation Certificate[02930]

Environment Bureau 27.8.8 Huangdao, Qingdao City

Urban sewage discharge Qingxi Shenjianzi (2021) No. 1-F017 2021.10.8-2 10 Diankesiyi District Administrative Approval

Water pipe network license number 026.10.7 Service Bureau

Beijing Terratte

Siyi Technology Occupational Health and Safety Management 2024.11.24- 11 0482024S0419R2L-1 Certification Limited Liability

(Anhui) Management System Certification Certificate 2027.11.23 Ren Company

Beijing Terratte

Siyi Technology Environmental Management System Certification 2024.11.24- 12 0482024E0486R2L-1 Certification Limited Liability

(Anhui) Certificate 2027.11.23 Appointed company

Guangzhou Saibao recognition

Siyi Technology Quality Management System Certification 2026.8.3-20 13 01226Q00298R101 Certification Center Service

(Anhui) Certificate 29.8.2

Ltd.

Siyi Technology Stationary pollution source discharge 2025.11.7-2 14 91340300MA2RTHEY70001Z -

(Anhui) Registration receipt 030.11.6 Siyi Technology Sending and receiving import and export goods

15 34039604GY Bengbu Customs Long-term (Anhui) Consignor

(4) Franchise rights

As of the date of this prospectus, the Company does not own franchise rights.

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(5) The intrinsic relationship between fixed assets, intangible assets and other resource elements and the company’s products and their impact on the company’s ongoing operations

The fixed assets, intangible assets and other resource elements owned by the company are the necessary basis for the company to carry out business activities. As of the signing date of this prospectus, there are no disputes or potential disputes over the company's main fixed assets and intangible assets, nor are there any major adverse effects on the company's ongoing operations.

6. Issuer’s core technology and R&D status

(1) Core technology situation

Core technology, technology sources and technology specific content

The company continues to promote technology iteration and performance improvement, achieving breakthroughs in many core technology indicators, and the overall product performance continues to move closer to the international leading level. Specific details include: in terms of low-noise wide-band microwave frequency synthesis technology, phase noise is optimized to <-132dBc/Hz; the maximum frequency of wide-band microwave and millimeter wave signal receiving technology is increased to 120GHz; the real-time analysis bandwidth of wideband signal acquisition and analysis technology is expanded to 2GHz; the spectral resolution of high-precision optical-mechanical unit assembly and adjustment technology is increased to 0.01nm. These developments have significantly enhanced the company's technical strength in the field of high-end measuring instruments.

As of the end of the reporting period, the company had accumulated 22 key core technologies. Since China Electronics Technology No. 41 Institute transferred relevant assets and personnel to the company free of charge in 2019 in accordance with the approval of the Ministry of Finance and others, the original R&D team and related technical data have been completely integrated into the company system, and the company has fully inherited the existing technical foundation and research experience of No. 41 Institute. On this basis, the company continues to promote iterative upgrades and in-depth research and development of these technical systems, and achieves significant improvements in technical capabilities through continued investment in research and development. The R&D team also gradually completed the replacement of new and old personnel and talent relay in the process, forming a R&D team that continues to innovate.

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The details of the company’s core technologies in the prospectus of China Electronics Cossi Technology Co., Ltd. are as follows:

1-1-193 China Electronics Cosi Technology Co., Ltd. Prospectus

Preface Core Technology Technology

Core technology name Technical description Important R&D nodes Technology advancement and specific characterization Stage number Protection status Source: self-developed fractional frequency synthesis technology, wide frequency band and low

In December 2021, a technological breakthrough was completed, single sideband phase

Noise frequency multiplication technology, wide-band low-noise phase-locked frequency synthesis

Noise achieved -132dBc/Hz (10GHz@10kHz);

Technology, wide-band low-noise YIG oscillator design technology, 1. Maximum frequency: 110GHz;

Low-noise wide-band micro In May 2022, technical research and complete machine integration testing were completed. Authorized invention, independent research and mass production1, and developed a variety of low-noise wide-band signal sources. This technology 2. Frequency resolution: 0.001Hz;

Wave frequency synthesis technology test verification; 2 patents The development stage determines the core important performance of the signal generator, such as single-sided 3. Phase noise: <-132dBc/Hz

In December 2022, small batch trial production will be completed and mass production will be achieved.

With phase noise, spurious, frequency stability, frequency resolution

Status

rate etc.

In December 2021, 110GHz coaxial connection will be technically achieved

Based on self-developed MMIC chips and own process technology

Continuous frequency coverage; 1. Maximum frequency: 110GHz;

Microwave and millimeter wave transmission and design capabilities enable signal transmission in frequency bands up to 110GHz.

In December 2022, complete machine integration of 110GHz frequency band 2. Maximum output power: +30dBm; Authorized invention Independent research and mass production 2-channel signal conditioning technology amplification, filtering, attenuation, switching and combining, etc., through the system

Test and verification, while achieving mass production in the 67GHz frequency band; 3. Minimum output power: -120dBm; 4 patents. The technology-level design in the development stage realizes the wide range of coaxial signals in the 110GHz frequency band.

In December 2023, small batch trials in the 110GHz frequency band will be completed 4. Optimal power accuracy: ±0.5dB

Frequency band, high precision, large dynamic range signal generation

production, reaching mass production technology status

In December 2021, 110GHz coaxial connection will be technically achieved

Continuous frequency coverage, receiving bandwidth 8GHz;

In May 2022, complete machine integration and mass production trial production will be completed.

Reaching mass production status; 1. Frequency range: 2Hz ~ 120GHz;

Wide-band microwave millimeter wave signal can solve the high purity and high sensitivity of wide-band microwave millimeter wave signal. May 2023, achieve 120GHz coaxial continuous frequency 2. Display average noise level: Authorized invention Independent research and large-scale production of wave signal reception technology High-speed, large dynamic range reception problems Coverage; ≤-145dBm/Hz@110GHz; 3 patents Release stage December 2024, realize small batch trial of 120GHz frequency band 3. Phase noise: ≤-137dBc/Hz

system, reaching mass production status;

In December 2025, the 145GHz frequency band will be integrated into the whole machine.

Verify

In June 2022, 2GHz bandwidth acquisition and vector

Based on real-time acquisition of broadband signals and analysis of large bandwidth and high data volume, batch production verification is achieved;

Broadband signal acquisition and arbitrary rate conversion and real-time spectrum processing technologies will be implemented. In December 2023, 4GHz bandwidth acquisition and vector 1. Analysis bandwidth: 4GHz; Authorized invention. Independently developed mass production analysis technology. Data acquisition and processing with analysis bandwidth up to 4GHz, with analysis, and batch production verification; 2. Real-time analysis bandwidth: 2GHz. 2 patents. 2GHz real-time analysis bandwidth in development stage. In December 2024, 10GHz bandwidth acquisition will be technically achieved.

Set and vector analysis to complete machine integration verification

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Preface Core Technology Technology

Core technology name Technical description Important R&D nodes Technology advancement and specific characterization Stage number Protection status Source In May 2022, the 3674 series vector network analyzer was released

cloth, with 4-port excitation source signal generation capability, frequency

Through high-resolution fractional frequency division, low phase noise phase-locked loop, wide 1. Frequency range: 500Hz ~ 110GHz;

The frequency range covers 110GHz, and batch production verification is achieved;

Multi-port excitation signal with frequency multiplication amplification and other technologies to achieve four-port excitation signal 2. Phase noise: -85dBc/Hz@10GHz Authorized invention Independent research and mass production 5 In May 2024, multi-port excitation signal generation technology

Generating technology, the highest test frequency is 110GHz, the excitation source is in relative phase (10kHz frequency offset); 2 patents, the frequency coverage capability in the development stage reaches 120GHz;

Bit controllable 3. Number of excitation ports: 4

Multiport Excitation Signal Generation Technology Frequency in 2025

Coverage capability reaches 120GHz, and batch production verification is achieved

In May 2022, the 3674 series vector network analyzer was released

Through broadband directional coupling technology, the test signal is transmitted and distributed, and it has an 8-channel mixing interface with a frequency covering 110GHz.

Frequency range: 500Hz~110GHz;

Separation of reflected test signals, through multi-channel high isolation reception capabilities, and achieve batch production verification;

Multi-port mixing reception 2. Optimal dynamic range: ≥134dB; Authorized invention Independent research and mass production 6 Broadband mixing technology down-converts the test signal to an intermediate frequency signal In May 2024, the frequency of multi-port mixing reception technology covers

Technology 3. Maximum IF bandwidth: 30MHz; 2 patents issued, with high-speed ADC and FPGA-based digital filtering capability reaching 120GHz;

Number of receiving ports: 8

Algorithm realizes preprocessing of raw measurement data. In 2025, multi-port mixing reception technology frequency coverage can

Capacity reaches 120GHz and achieves batch production verification

In October 2021, the near-infrared band will be technically available

Through high-precision optical-mechanical unit assembly and adjustment technology, optical elements are realized

0.02nm spectral resolution;

Industrialization of parts inspection and assembly process to achieve spectroscopy

High-precision optical-mechanical unit In October 2022, it will realize near-infrared band 0.02nm light 1. Wavelength measurement range: 600~1700nm; Authorized invention Independent research and mass production 7 unit assembly and parameter debugging batch, completed

Assembly and adjustment technology Spectral resolution complete machine mass production; 2. Minimum spectral resolution: better than 0.01nm 2 patents Development stage 0.02nm-2nm spectral resolution optical-mechanical module indicators and processes

In April 2025, the visible light band 0.02nm spectrum will be completed

Curing and mass production

Resolution small batch trial production, reaching mass production technology status

In October 2021, 600nm~1700nm will be technically achieved

Light splitting is achieved through high-speed scanning grating precision control technology

Band coverage; 1. Fastest scanning speed: 100nm width;

The high-speed and precise control of the unit supports the speed of spectral testing.

High-speed scanning grating precision In October 2022, the 600nm~1700nm band will be realized. 2. Scanning time: less than 0.15s; Authorized invention. Independent research and mass production. 8-speed real-time scanning, supporting ±20pm wavelength measurement accuracy.

Mass production using precision control technology; 3. Maximum wavelength measurement accuracy: better than 2 patents achieved during the development stage, providing a basis for higher-precision spectrum testing and scanning.

In April 2025, the band adjustment of 350nm~1200nm will be completed ±10pm

provide technical foundation

Small batch trial production of the machine, reaching mass production technology status

By integrating gear transmission mechanism, thread transmission mechanism, micro-

The moving plate mechanism, combined with unique hardware and circuit design layout, will technically achieve sub-micron accurate alignment in March 2023.

Combined with the control unit and core alignment algorithm, a high-precision key breakthrough was developed;

High-precision optical fiber automatic authorized invention, independent research and mass production of 9-degree optical fiber alignment technology. This technology can achieve sub-optimal optical fiber. In June 2024, small batch test verification of the entire machine will be completed; 1. Alignment accuracy: 0.1um

Alignment technology 2 patents Micron-level precise alignment at the development stage, with an alignment accuracy of 0.1um; this technology can improve alignment accuracy to single-mode flatness by June 2025

It is fast enough to achieve automatic and precise alignment of optical fibers, and the average splicing loss during alignment time is 0.015dB, the highest level.

No more than 1s, the current mainstream technology in the industry is mainly 1.5s

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Preface Core Technology Technology

Core technology name Technical description Important R&D nodes Technology advancement and specific characterization Stage number Protection status The source integrates optical system, mechanical structure and electronic circuit into one.

Developed optical fiber automatic splicing technology to realize two-way optical fiber

Precision machinery related to image data collection, processing, and control. In May 2023, the technology was optimized on the 6481 optical fiber fusion splicer.

The optical fiber automatic splicing technology module completes gap adjustment and core alignment operations, upgrades the two photonics, and completes a key technological breakthrough in the motor drive strategy; authorized invention, independent research and development, mass production10 1. Welding time: 6s

The technology aligns the fibers in three-dimensional space and controls the high-voltage discharge system. In June 2024, the fastest 6s automatic splicing of optical fibers was achieved. 1 patent was issued. The high-voltage discharge was performed at the first stage, so that the two optical fibers were automatically and quickly spliced, and the small batch test verification of the whole machine was completed.

Calculate and display based on the physical properties of the optical fiber image after splicing

Indicates the current estimated splice loss

December 2019, technology on 5252D base station tester

Adaptation is completed and 5G test verification is completed;

In June 2024, the technology will be applied to the terminal comprehensive tester and

5G communication high-rate transmission 5G communication high-rate transmission technology design and high-performance local oscillator implementation Batch verification in customer production line, first completed large-scale production line Authorized invention Independent research and mass production 11 1. Transmission rate: 80Gbps

Transmission technology Feasibility of large-scale application of high-speed transmission channels that meet 5G communication requirements; 2 patents. In the development stage, the technology will be applied to the signaling comprehensive tester in December 2024 and completed.

Signaling test of Chengxing network terminals and batch delivery, concurrently

Capacitance and reliability verified

In April 2022, 400Gbps test speed will be technically achieved 1. Test speed:

Adopting modular shared circuit design to achieve multi-rate Ethernet

Rate coverage; 10M/00M/000M/10G/40G/50G/100

network test; using dual pattern generators to achieve high speed and high

High-speed Ethernet test In December 2022, complete the 400Gbps data network test Gbps/400Gbps; Authorized invention Independent research and mass production of 12-bit wide bit error test patterns; Adopt protocol-based layering

The technology instrument has been trial-produced in small batches and reached mass production technology status; 2. Protocol simulation: It is necessary to support access, routing, and test methods in the development stage of 3 patents to achieve network protocol simulation testing and performance testing.

In June 2025, Testar’s new generation data communication test multicast, data center protocol and multi-service overlay will be completed.

try

Software platform development plus scenarios

In December 2022, breakthrough in broadband high-speed data collection and implementation

Based on broadband signal conditioning, high-speed data acquisition and storage, and real-time processing technology, 4GHz bandwidth, 20GSa/s acquisition

Broadband high-speed data acquisition 1. Bandwidth: 13GHz;

Development of 4457 series digital oscilloscope prototype with intelligent digital triggering, fast waveform capture and digital fluorescence sampling rate; Authorized invention Independent research and mass production 13 sets and real-time processing technology 2. Sampling rate: 40GSa/s;

Display and other technologies can solve broadband, high-speed, and transient signals. In June 2023, 5 patents for 10GHz bandwidth and 40GSa/s were completed. 3. Waveform capture rate: 1.2 million waveforms/second

The problem of accurate capture and stable display is the development of a 4458 series digital oscilloscope prototype with a sampling rate;

Released 4457 series digital oscilloscopes and achieved mass production

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Preface Core Technology Technology

Core technology name Technical description Important R&D nodes Technology advancement and specific characterization Stage number Protection status Source: Technical realization of digital twin, machine-based technology in December 2022

Fully automatic adaptation of microwave connectors with machine vision and force sense,

Adopt multi-test task parallel scheduling management algorithm to realize micro

Dynamic scheduling execution based on message triggering to complete unmanned

Efficient testing of microwave integrated circuits and wave component products; using virtual pass-based 1. Frequency range: 10MHz ~ 67GHz;

Verification of intelligent microwave product testing system solutions; Authorized invention, independent research and development, small batch production of 14 components, efficient and high-precision RF signal calibration method to construct channel RF signals 2. T/R chip full parameter test speed: 9s/

In August 2023, we will further technically complete the development of 2 radio frequency SiP type patents, phased test technology error correction algorithm module, and complete the rapid compensation channel of test signals.

Test adaptation of dynamic products to form test solutions;

Compensation to achieve high-precision testing of components

The RF SiP test solution will be finalized in March 2024.

Reach the technical status of batch supply

Through self-developed radio frequency hardware time domain gate technology, based on the hardware method, in December 2022, a breakthrough was made in the spherical surface based on spectral domain compensation.

It can filter out the interference effects caused by channel multipath, signal refraction, etc. Near and far field transformation and other technologies can realize 500GHz planar and columnar

-20dB side lobe test accuracy: better than loudness, greatly improving measurement accuracy; through self-developed hardware triggering surface, spherical near-field antenna and RCS testing;

0.5dB;

technology to reduce the delay uncertainty caused by software triggering. In December 2023, multi-channel merging will be further technically completed.

Small RCS test capability: -40dBsm; high-precision antenna and RCS greatly improve sampling position accuracy; use switch control unit to conduct test capability verification, while achieving 110GHz frequency band test Authorized invention Independent research and small batch production 15 3. Narrow pulse gate control capability: ≤5ns; high-precision test technology realizes timing control of multi-channel pulse generators and receivers, and small batch supply of test solutions; 4 patents Development stage
Quiet zone phase change: better than ±5° (4GHz ~ realizes pulse-based continuous testing, greatly improving testing. In December 2024, the 500GHz band antenna and

40GHz), better than ±0.125°*f (4GHz~ efficiency. Through self-developed rolled edge reflector and feed antenna, small batch trial production based on RCS test system, reaching mass production technology

220GHz)

Based on the quiet zone amplitude and phase calibration technology, the quiet zone index is improved to ensure the status, and at the same time, it is further technically achieved -50℃~

High-precision 100℃ antenna environmental effect multi-parameter testing capabilities for antenna testing

Second half of 2019 to 2020: Breakthrough bandwidth signals

Seamless capture, real-time FFT processing, digital fluorescence and more

technology, realizing broadband implementation based on handheld platform for the first time

Time spectrum digital IF processing technology;

Realize broadband spectrogram, waterfall chart, and fluorescence based on handheld platform. Based on low resource and low power consumption FPGA on handheld platform, adopt and 2022 second half to 2023: Breakthrough in multi-domain triggering,

Graphic and frequency template trigger functions;

Broadband real-time spectrum FFT butterfly synthesis technology and in-band amplitude and phase digital compensation technology Broadband compensation, digital fluorescence retention and other sub-technologies, in the new Authorized invention Independent research and mass production 16 2. 120MHz bandwidth 100% POI: 2.919us; digital IF signal processing technology to achieve broadband high-performance real-time spectrum digital IF signal A generation of low-power digital platform to optimize real-time spectrum digital development stage 2 patents

400MHz bandwidth 100% POI: 1.08us; processing technology, processing power, frequency processing technology;

Flatness: 1dB

Second half of 2025 - present: Breakthrough based on low power consumption

FPGA parallel FFT butterfly synthesis 400MHz bandwidth real

Time spectrum digital IF signal processing technology to improve bandwidth

Real-time spectrum digital IF processing technology

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Preface Core Technology Technology

Core technology name Technical description Important R&D nodes Technology advancement and specific characterization Stage number Protection status Source January 2021, breakthrough in broadband signal based on zero intermediate frequency

Adopting a zero-IF architecture to implement radio frequency signal and composite base modulation and demodulation technology, we began to develop the 6GHz frequency band

Direct conversion between bands completely simplifies IF filter 200MHz bandwidth signal transceiver;

Transmitting and receiving signal bandwidth: 1GHz;

Highly integrated multi-function and intermediate frequency amplifier design; using distributed electromagnetic shielding cavity In April 2023, breakthrough 1GHz bandwidth vector signal collection

EVM: ≤-50dB (5.1GHz～ Authorized invention, independent research and mass production 17 integrated transceiver and integrated measuring body structure, partition layout, gradient impedance matching and other means to solve the technology, and began to develop the 26.5GHz frequency band 1GHz band

7.2GHz, WLAN802.11ax80MHz band, 2 patents, phase trial technology, which determines the channel isolation and spurious suppression of high-density integrated wide signal transceiver;

wide)

problems in terms of integration, power consumption and flexibility. In April 2025, breakthrough 2GHz bandwidth vector signal reception

Significant advantages Developed technology and began to develop 26.5GHz frequency band 2GHz band

wide signal transceiver

2022 to 2023: Breakthrough in broadband space power synthesis

technology to improve the output power of broadband power amplifiers

Based on transmission line widths such as coaxial lines, microstrip lines, and rectangular waveguides

Broadband power synthesis technology level; 1. Frequency range: 4kHz ~ 110GHz; Authorized invention, independent research, mass production level 18 band matching technology, transmission line broadband mode conversion technology, etc.

Technology 2023 to 2025: Breakthrough in high-power multi-channel digital air 2. Power capacity: 10W ~ 40kW 2 patents Breakthrough in broadband high-power and high-efficiency output problems

Inter-power synthesis technology has greatly improved the broadband power amplifier

amplifier output power level

Through broadband channel conditioning technology and large-capacity data storage, in December 2022, breakthrough bandwidth arbitrary wave signal synthesis technology 1. Bandwidth: 10GSa/s;

Wideband arbitrary waveform synthesis Multi-channel synchronization, high-speed arbitrary waveform synthesis, dithering and processing, the output signal frequency range reaches 5GHz. 2. Sampling rate: 25.6GSa/s; Authorized invention, independent research, small batch production and processing technology. In February 2025, the 8GHz bandwidth arbitrary waveform generation was completed. 3. Vertical resolution: 8 bits; 2 patents. 2 patents. 4. Storage depth 4GB/channel.

Frequency range: 18GHz ~ 1100GHz;

November 2022, material electromagnetic properties testing technology frequency

A series of high-precision test fixtures have been designed and optimized. 2. Relative dielectric constant test range: 1 to 30;

The upper limit has been raised to 1100GHz, and the overall technology has reached the national

The ultra-high frequency and large-bandwidth performance of terahertz material electromagnetism adopts de-embedding calibration and 3. Relative dielectric constant test accuracy: ±2%; authorized invention, independent research, small batch production, 20 internationally advanced levels;

Characteristic testing technology Precise dielectric inversion algorithm realizes the electromagnetic parameters of materials. 4. Measurable sample forms: solid, thin film, powder. 2 patents. Issuing stage in December 2025. The material temperature change performance testing capability will be advanced.

High-precision testing of powders and liquids;

One step to increase to -50℃～1600℃

Measurable sample thickness range: 50μm～5mm

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Preface Core Technology Technology

Core technology name Technical description Important R&D nodes Technology advancement and specific characterization Stage number Protection status Source In October 2016, the introduction of laser direct writing technology was completed and implemented.

Through self-research on substrate cleaning, vacuum coating, and plate making, we have achieved high-precision mask production;

Thinnest substrate thickness: ≤10μm Photolithography, etching, electroplating, laser processing, grinding wheel scribing. In May 2022, thin film based on ion beam etching will be realized.
The thinnest line width: ≤3μm

Resistance adjustment and other process technologies have enabled the batch application of quartz and alumina ceramic film circuit patterning technology in production.

High-precision microstrip film 3. Optimal line width accuracy: ≤0.5μm

Porcelain, aluminum nitride ceramics, sapphire, copper-clad laminate and other substrates. At the same time, this technology is applied to hard microstrip circuit soldering function. Authorized invention. Independent research and mass production. 21 circuit processing and manufacturing. 4. Single-sided alignment accuracy: ≤1.5μm.

Complete various types of high-precision microstrip thin film circuit processing on the material. In the film layer production process; 4 patents. 5. Double-sided alignment accuracy: ≤3μm, equipped with metallized through holes, thin film resistors, and thin film capacitors. In June 2025, the quartz microstrip circuit gold was successfully developed.

Optimum resistance accuracy: ≤1% thin film inductor, double-sided circuit, can be soldered, soldered resist and other integrated through-hole technology, special-shaped processing technology and soft copper coating
Optimum shape processing accuracy: ≤10μm capability, technology and processing accuracy reach the domestic advanced level. Board 5880 through-hole metallization process realizes microstrip circuit communication.

Full coverage of hole metallization process

In December 2018, the deep cavity near-wall microwave mode was initially verified.

The feasibility of automatic block placement;

In June 2021, through process parameter optimization, it was achieved

Batch application of high-precision automatic patching technology for microwave modules 1. Mounting accuracy: ±5μm@3σ

Based on automatic dispensing, automatic patching, automatic bonding, and gold mesh

High-performance microwave mixing; 2. Bonding accuracy: ±3μm@3σ

Process technologies such as interconnection and eutectic welding have realized high-performance micro-licensed inventions, independent research and mass production 22 integrated circuit assembly technology. In December 2022, automatic vapor phase cleaning and high frequency have been realized. 3. Minimum arc height for bonding: 80μm

Fully automatic assembly process of wave module, patch repeatability reaches 3 patents. Develop stage technology ion cleaning process, establish microwave module cleaning system; 4. The shortest bonding span: 200μm ±5μm@3σ, bonding repeatability reaches ±3μm@3σ

In October 2023, low void rate welding of large-size and high-power chips was achieved. 5. Welding void rate: ≤5%, with a void rate of less than 5%;

In March 2025, the full range of deep cavity near-wall microwave modules will be realized.

Automatic bonding process

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Proportion of revenue from core technology products to main business revenue

The company attaches great importance to and actively promotes the industrialization of technology research and development results. The core technology is widely used in complete machines,

Test systems, complete components and other major products. During the reporting period, the company’s core technology product revenue accounted for 10% of its main business revenue.

The income ratio is as follows:

Unit: 10,000 yuan project 2025 2024 2023

Core technology product revenue 236,226.60 202,934.11 211,929.15 Main business revenue 237,815.20 204,098.84 213,333.70 Core technology product revenue proportion 99.33% 99.43% 99.34%

(2) Scientific research strength and achievements

Main awards and honors

As of the signing date of this prospectus, the main awards and honors received by the company and its subsidiaries are as shown in the table below:

Serial number Award level Award name Project name Awarding department Award time 1 Individual champion Individual champion The ninth batch of manufacturing individual champion companies Ministry of Industry and Information Technology 2025

Large electronic equipment, multi-parameters and big dynamics

2 First Prize Science and Technology Progress Award Perception and global field reconstruction technology and national Chinese Instrument and Control Society 2025 production

High-precision joint measurement of complex modulated signals

3 Special Prize Science and Technology Progress Award Shandong Provincial People's Government 2024 Quantitative Technology and Application

The key to terahertz signal generation and detection

4 Second Prize Science and Technology Progress Award Shandong Provincial People's Government 2024 Technology and Application Development

110GHz multifunctional signal spectrum analysis

5 Second Prize Science and Technology Progress Award China Instrument and Control Society 2024 Analysis Technology and Instrument Development

High-speed multi-protocol integrated data network

6 Second Prize Science and Technology Progress Award China Instrument and Control Society 2024 Simulation Measurement Technology and Application

Broadband burst signal spectrum analyzer and

7 Excellence Award China Patent Award Broadband Burst Signal Analysis Method State Intellectual Property Office 2023 (ZL201911169851.8)

Modulation domain vector network parameter test

8 First Prize Technological Invention Award Shandong Provincial People’s Government 2023

Key technology and applications

9 Third Prize Science and Technology Progress Award Comprehensive Testing Platform for Electromagnetic Materials China Institute of Electronics 2023

The seventh batch of manufacturing industry single championships in Shandong Province

10 Individual Champion Individual Champion Shandong Provincial Department of Industry and Information Technology 2023 Military Enterprise

Modulation domain vector network parameter test

11 First Prize Science and Technology Progress Award Qingdao Municipal People’s Government Key Technologies and Applications in 2022

PXI bus vector signal generation and signaling

12 Second Prize Science and Technology Progress Award Qingdao Municipal People’s Government 2022 Regulation Routing Module Series

A dual-frequency nonlinear vector network parameter

13 Excellence Award China Patent Award Number Testing Devices and Methods State Intellectual Property Office 2022 (ZL201510577865.9)

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Serial number Award level Award name Project name Awarding department Awarding time

Ultra-low noise microwave photon signal generation

14 First Prize Science and Technology Progress Award Qingdao Municipal People’s Government 2022 Key Technologies and Instruments

5G communication optical module physical parameter measurement

15 Third Prize Science and Technology Progress Award China Electronics Society 2022 Test Key Technologies and Applications

Massive MIMO channel simulation test

16 Third Prize Science and Technology Progress Award China Institute of Electronics 2022

platform

17 Second Prize Science and Technology Progress Award Networked Testing Technology and Application China Electronics Society 2022

(3) Main R&D projects

On-going research projects

As of the end of the reporting period, the company’s main research projects were as follows:

Preface Name of progress project To be achieved and technical level

No. The situation is that the antenna has many environmental effects

Breakthroughs in broadband microwave and millimeter wave hybrid integration processes and broadband electrical interconnection processes, etc.

Parameter comprehensive tester positive sample 1 technology solves the problem of key process stability and controllability, and the test host reliability reaches

The engineering and industrialization stage reaches 3000h, forming a solidified and stable process flow and process technology specifications.

develop

Breakthrough in 6GHz low-noise signal conditioning, multi-channel based on application-specific integrated circuits

Multi-channel mixed signal, high-speed data synchronous acquisition and storage, real-time waveform processing and fluorescence display, etc.

Zhengyang 2 oscilloscope integrated technology solves multi-channel analog-digital mixed signal synchronous measurement and correlation analysis, abnormality

Phased development: rapid signal acquisition and intelligent diagnosis, etc., comprehensive performance reaches international advanced level

level.

Break through the multi-parameter automatic measurement and extraction, mixing of broadband complex vector optoelectronic networks

Ultra-wideband photoelectric vector

Integrate error model analysis and calibration of photoelectric network parameters and other technologies to solve the problem of core components of photoelectric network

Precise characterization of network transmission parameters, ultra-wideband network nonlinear response mismatch mechanism stage and complete machine integration

and other issues, and its comprehensive performance has reached the international advanced level.

Breakthrough in broadband distributed modular signal generation, multi-channel reception, and variable temperature environment

Technologies such as multi-environment construction and precise control of antenna environmental effects, wide-temperature low-loss test fixtures, etc., solve manufacturing problems.

Sample 4 Parameter Comprehensive Tester About antenna environmental effects, multi-parameter accurate testing and other issues, frequency coverage

Staged integrated development 2.6GHz～110GHz, variable temperature range -50℃～100℃, variable humidity range

20%RH～98%RH, the comprehensive performance index reaches the international advanced level.

Breakthrough simulation electromagnetic compatibility enhancement, high-speed hybrid integration process and broadband electrical

multi-channel mixed signal

Interconnection technology and other technologies solve the problem of engineering and closing of multi-channel mixed-signal oscilloscopes. Zhengyang 5 oscilloscope engineering

To solve the problems such as the stability and controllability of the bonding process, the MTBF reaches 5000h, creating a stable stage development and industrial promotion.

Reliable, durable and high-quality domestic instruments.

Breakthrough in broadband complex high-frequency signal generation technology and high-precision broadband orthogonal mixing

technology to solve the fusion of broadband orthogonal modulation signals and frequency amplitude agile signals

High-performance signal simulation, positive 6 occurrence, multi-standard and multi-type propagation environment integrated simulation and other issues, frequency

The complete machine development stage covers 10MHz~85GHz, modulation bandwidth is 2GHz, and comprehensive performance reaches international standards.

Advanced.

Breakthrough in high-sensitivity terahertz transceiver module integration, millimeter wave and terahertz quasi-light

Beam transmission and control, ultra-wideband test fixture design and material electromagnetic parameter accuracy

Millimeter waves and terahertz

Accurate extraction and inversion algorithms and other technologies, supporting solid, thin film, powder, liquid) Positive sample 7 material electromagnetic properties measurement

Parameter testing such as complex dielectric constant and complex magnetic permeability of materials, with the highest dynamic range reaching the integrated development of stage testers

120dB (18GHz～50GHz), the comprehensive performance index reaches the international advanced level

Flat.

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Preface Progress

Project name To be achieved and technical level

No. situation

Carry out low-noise complex signal testing, as well as high-speed digital-analog hybrid and microwave integration

Common technology R&D capabilities Initial sample 8 Circuit R&D capacity building, complete batch testing system, AI-assisted software development

power improvement stage

Wait.

Spectrum and signal analysis Completed full-band tracking pre-selection design, direct digital frequency synthesis PLL synthesis, etc. Prototype development and verification Technical research, completed spectrum and signal analysis development and verification Phase 110GHz signal transmission

Complete the technical research on key choke points for 110GHz high-purity signal generation, and complete the R&D and industrialization of positive 10 generators.

110GHz signal generator complete machine development phased project

Multi-functional integrated comprehensive Complete the research on key technologies such as vector modulation agility and multi-system signal styles, form the integrated performance testing technology into the multi-functional integrated comprehensive evaluation and acceptance system and other achievements. Phase multi-protocol network testing Complete the large-scale complex process generation and multi-protocol simulation technology research based on layered architecture design; complete the development of the data network tester. stage

Complete multi-parameter automatic measurement and extraction technology for complex vector optoelectronic networks, ultra-wide

Chip comprehensive parameter measurement preliminary sample 13 Research on key technologies such as charged optical signal generation technology; comprehensively improve spectral scanning

Measurement system stage measurement and other performance indicators, completed the development of the chip comprehensive parameter measurement system.

Based on domestic GaAs, GaN, InP, SiGe and other process lines, various instrument initial samples 14 instrument process lines have been completed

R&D and small batch verification of device chips. Stage RF conformance test: Complete large-bandwidth and highly integrated RF transceiver design, multi-bus, high-rate baseband design, and develop high-performance 5G-A system simulation hardware platform. In this stage, the mobile communication base station comprehensively completed the timing accuracy and control delay technology, frequency equalization-based channel equalization test technology and compensation technology; completed the development of the base station comprehensive tester. Comprehensive testing of communication terminals in the stage: Complete wide-band multi-standard integration testing, single-port vertical reflection non-uniform line loss positive sample test technology testing and other technical research, and complete the development of a comprehensive wireless communication terminal tester. At this stage, the high-precision multi-channel radio frequency technology has been completed, such as ultra-high purity control waveform generation, precise synchronization of multi-channel control signals, etc., and the development of a superconducting multi-channel bit control and measurement system has been completed. stage

Breakthrough in wafer-level RF chip multi-parameter integrated testing, programmable tools and graphics

Key technologies such as microwave chip testing and chemical programming support automatic preliminary sample analysis software testing of wafers of 6 inches, 8 inches and above, support integration with imported and independent test equipment, support RF high-power stage device testing and model extraction, and the expected technical level has reached the international advanced level and above.

Breakthroughs in wafer-level multi-scenario and multi-parameter error correction, calibration quality verification and inaccuracy

Qualitative evaluation, noise error correction and other technologies, we have developed multiple types of radio frequency chips,

Microwave chip wafer error. Preliminary sample of more than 20 scene calibration and de-embedding software to meet the needs of radio frequency components, chips and components.

Differential calibration software stage and the scattering parameters, power parameters, noise coefficient and other parameters of the integrated system

Accurate testing requirements, the expected technical level is internationally advanced and above.

Breakthrough in high-speed multi-bus driver library architecture, cross-platform bus driver adaptation, and visualization

Industrial software and testing use key technologies such as low-code development and low-intrusion monitoring to build a compatible national

Preliminary sample 21 Adaptation of instrument software and hardware. Software and hardware of mainstream operating systems at home and abroad are combined with bus driver libraries and components, and are developed at the same time.

Optimize technology in stages to develop ecological construction and build a comprehensive ecosystem covering key areas such as electronics, aviation, and shipbuilding.

Scenario verification system to realize the large-scale application of domestic VISA.

Break through the generation of high ultra-noise ratio terahertz noise signals and high sensitivity terahertz noise

Terahertz band noise

Signal detection, high-precision noise coefficient analysis algorithms and other key technologies were developed to develop Taichuyang 22 coefficient testing solutions.

Hertz frequency band noise figure test solution to meet the needs of phased project development in communications, remote sensing and other fields

Testing requirements for core components such as low-noise amplifiers and mixers.

Breakthroughs in technologies such as ultra-high frequency and high-precision clock generation and high-bit-width graphics synthesis support

The ultra-high-speed bit error rate supports core functions such as jitter injection and noise injection, and develops a bit error rate analyzer. The solution analyzer meets the performance testing requirements for bit error rate, eye design diagram, jitter tolerance and other performance testing requirements of the transmission interface in the chip in an environment with jitter and noise.

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Preface Progress

Project name To be achieved and technical level

No. breakthrough in large-bandwidth baseband signal generation and analysis, miniaturized low phase noise frequency synthesis,

Key technologies such as large bandwidth and low distortion up and down conversion microwave module design, with vector signal transceiver

It is a vector signal transceiver equipment with functions such as vector signal generation and vector signal analysis. It is designed to meet the testing needs in the fields of semiconductor chips and complex electromagnetic environment construction.

Breakthroughs in ultra-low noise reference source, cross-correlation noise suppression, additional phase noise testing, etc.

Key technologies that meet the needs of crystal oscillators, voltage controlled oscillators, frequency synthesizers and signal source analyzers.

and microwave sources and other phase noise performance testing requirements. It also supports high-speed serial bus stage and high-speed ADC/DAC clock jitter testing requirements and time-frequency measurement requirements.

Breakthroughs in high-precision timing synchronization control, multi-modal test program development, high-speed data

High-speed digital integrated circuit program 26 key technologies such as test vector generation and analysis, and the development of high-speed digital integrated circuit

Road solution research and development Design road solutions to meet the testing needs of large-scale, high-performance digital integrated circuits.

Breakthroughs in multi-station test flexible planning, system-level vector de-embedding, large bandwidth and low loss

Radio frequency integrated circuit test plan 27 Key technologies such as true microwave channel design and high-speed serial data real-time processing, research and development

Trial solution development and design

Manufacturing RF integrated circuit testing solutions.

5G-A synaesthesia fusion

Breakthroughs in realistic target generation, synaesthesia interference elimination, perception OTA scene construction, etc.

Technical test instruments and preliminary samples 28 key technologies to meet the communication requirements of the synaesthesia integrated base station in the sensing/non-awareness state.

Comprehensive testing and verification system stage

It meets the performance testing requirements of signal function and sensing accuracy, resolution, leakage rate, etc.

System research and development

Note: The R&D project is divided into five stages, namely: project establishment stage, planning stage, preliminary prototype stage, prototype stage, and acceptance stage.

Collaborative R&D projects

In addition to independent research and development, during the reporting period, the company carried out cooperative research and development projects with universities, scientific research institutions and other units.

During the reporting period, the company’s main cooperative R&D projects were as follows:

R&D results and serial number Project name Main content Cooperating units

Intellectual property ownership has achieved breakthroughs in software reconfigurable communication baseband design and multi-domain

Physical layer joint detection algorithm design, based on hardware processing

University of Science and Technology Beijing,

Quickly and intelligently schedule massive test cases to quickly analyze and count

High Performance Materials China Information and Communication Research Institute

High-precision calibration of digitized closed-loop and multi-dimensional amplitude and phase compensation. One party independently completed network comprehensive testing. Research Institute, Spreadtrum Communications

Accurate and other key technologies to support Internet of Things commercial terminals, the results belong to the party 1 Instrument Complete Machine Research (Shanghai) Co., Ltd.

R&D testing of modules and chips, as well as 5G, manufacturing and engineering jointly completed by Shenzhen Guanghe

WIFI, Bluetooth, NB-IoT, ETC, C-V2X, and the results are jointly owned. Industrialization Tong Wireless Co., Ltd.

TD-LTE, LTE-FDD, WCDMA, GSM

company

and other protocol standard testing requirements, and the comprehensive performance index reaches

to the international advanced level.

This project focuses on the research and development and testing of 5G mobile terminals.

High stability in scenarios such as and large-scale mass production

performance, high reliability, high consistency and high real-time

In response to the development requirements of 5G terminal comprehensive test instruments, the 5G terminal party independently completed the research and development of terminal comprehensive test instruments, forming a practical prototype for sub-6GHz and millimeter wave band 5G terminal testing (East China) including China University of Petroleum. Millimeter wave band EVM is better than 3%. Comprehensive testing to resolve constraints

technical bottlenecks in instrument engineering and industrialization, forming a final

Large-scale production capabilities of terminal comprehensive test instruments.

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(4) R&D expenses

During each reporting period, the company’s R&D expenses and their proportion to operating income are as follows:

Unit: 10,000 yuan

Project 2025 2024 2023 R&D expenses 45,280.23 45,856.83 37,450.19 Proportion of operating income 18.88% 22.35% 17.40%

(5) R&D personnel

Number of R&D personnel and distribution of academic qualifications

At the end of each reporting period, the number of R&D personnel of the company was 655, 718 and 788 respectively, accounting for 36.65%, 40.18% and 42.12% of the company's total employees. At the end of each reporting period, the academic distribution of the company’s R&D personnel is as shown in the following table:

December 31, 2025 December 31, 2024 December 31, 2023 Academic qualifications

Number of people Proportion of people Proportion of people Proportion of people Ph.D. 41 5.20% 48 6.69% 45 6.87% Master's degree 543 68.91% 457 63.65% 413 63.05% Bachelor's degree 198 25.13% 206 28.69% 190 29.01% College degree and below 6 0.76% 7 0.97% 7 1.07%

Total 788 100.00% 718 100.00% 655 100.00%

The company’s identification standards for R&D personnel are those who are engaged in R&D work and account for more than 50% of their working hours in R&D activities in the current period, including full-time R&D personnel who account for 100% of their R&D working hours in the current period and part-time R&D personnel who account for more than 50% but less than 100% of their R&D working hours in the current period.

As of December 31, 2025, the company's R&D team includes 1 national-level leading talent, 1 millionaire talent, 2 Chinese outstanding engineers, 2 chief scientists of China Electronics Group, and 3 chief experts of China Electronics Group.

Situation of core technical personnel

(1) Introduction to core technical personnel

The company's core technical personnel are Nian Fushun, Jiang Wanshun, Wang Feng, Deng Jianqin and Du Huiwen. For their resumes, please refer to "Section 4 Basic Information of the Issuer/7. Directors, Senior Management and Other Core Personnel" of this prospectus/(1) Brief Information of Directors, Senior Management and Other Core Personnel/3. Other Core Personnel

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"Introduction to the Prospectus of China Electronics COSHI Technology Co., Ltd.".

The company's basis and criteria for identifying core technical personnel mainly include: ① Possessing a profound qualification background that matches the company's business; ② Currently holding important positions in the company's R&D, design and other positions or having corresponding technical capabilities or experience; ③ Making important and outstanding contributions to the R&D and design of the company's main products.

The main research and development achievements and honors received by the company's core technical personnel are as follows:

①A prosperous year

Master candidate, researcher-level senior engineer, chief scientist of China Electronics Technology Corporation, and deputy chief engineer of China Electronics Technology Corporation. As the leader of the electronic measuring instrument discipline of Diancosi Instruments, he has won important awards such as the second prize of the National Science and Technology Progress Award; he has won honorary titles such as "National Model Worker" and "China's Outstanding Engineer".

②Jiang Wanshun

Master candidate, researcher-level senior engineer, chief scientist of China Electronics Technology Corporation, and deputy chief engineer of China Electronics Technology Corporation. As an academic and engineering leader in the field of microwave, millimeter wave and terahertz measurement instruments, he has won important awards such as the second prize of the National Science and Technology Progress Award; he has won honorary titles such as the "National May 1st Labor Medal" and "China's Outstanding Engineer".

③Wang Feng

Master candidate, researcher-level senior engineer, chief expert of China Electronics Technology Corporation, and deputy chief engineer of China Electronics Technology Corporation. Mainly engaged in microwave and millimeter wave, basic and communication test instrument technology research and product development, he has won the second prize of the National Science and Technology Progress Award and other important awards; he has been awarded the honorary titles of "Young Expert with Outstanding Contributions in Shandong Province" and "Shandong Province Model Worker".

④Deng Jianqin

Doctoral candidate, researcher-level senior engineer, chief expert of China Electronics Technology Co., Ltd., deputy chief engineer of China Electronics Technology Co., Ltd., and selected as a national high-level leading talent. Mainly engaged in millimeter wave and terahertz testing technology research and product development, and has won important awards such as the second prize of the National Science and Technology Progress Award.

⑤Du Huiwen

Master candidate, researcher-level senior engineer, chief expert of China Electronics Technology Corporation. Mainly engaged in the research and development of microwave and millimeter wave signal reception and analysis measuring instruments, and has won important awards such as the second prize of the National Science and Technology Progress Award.

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(2) Constraint and incentive measures implemented by the issuer for core technical personnel

In order to mobilize the enthusiasm of core technical personnel for technological innovation, the company has established a complete R&D incentive system and provides competitive salary benefits and equity incentives to the aforementioned core technical personnel to achieve a close integration of personal interests and the overall interests of the company.

The company has signed a "Confidentiality and Non-Competition Agreement" and "Intellectual Property Ownership and Confidentiality Agreement" with core technical personnel, which stipulates non-competition restrictions, confidentiality obligations, intellectual property ownership and other aspects to effectively protect the company's core technology.

(3) Major changes in core technical personnel during the reporting period and their impact on the issuer

At the end of each reporting period, the number of core technical personnel of the company was 5, 5 and 6 respectively. As of the signing date of this prospectus, the company has 5 core technical personnel. During and after the reporting period, the main changes in the company’s core technical personnel are as follows:

Annual changes

2023 -

2024 -

Fang Gefeng and Liu Zushen no longer provide services to the company because they have reached the statutory retirement age;

2025 On August 11, 2025, the company identified Wang Feng, Deng Jianqin, and Du Huiwen as core technical personnel after internal review.

On July 6, 2026, the 15th meeting of the issuer’s second board of directors made a resolution to no longer

Xiang Changbo was identified as the company’s core technical personnel.

During the reporting period, the company's core technical personnel changed to normal retirement and newly promoted core technical backbone personnel.

(6) Mechanism, technical reserves and technological innovation arrangements to maintain continuous technological innovation

R&D organizational structure with complete functions and comprehensive coverage

The company has established a Science and Technology Development Department to be responsible for the construction and optimization of the scientific and technological innovation system, a Strategy and Marketing Department to be responsible for the R&D management of product systems, and a R&D department based on product systems, technology research and other dimensions to provide a comprehensive technological innovation platform. Starting from the product system, the company has a microwave instrument division, an automatic testing division, an optoelectronic instrument R&D department, a communication instrument R&D department, a modular instrument R&D department, and a component R&D department, which are mainly responsible for the development of different product series and related applications. Starting from the technology research stage, the company has a common technology research department and a common basic research department, which are mainly responsible for common technology research, process research and development and other functions.

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Market-oriented R&D strategy

The company combines the input of market insights into opportunities to formulate R&D strategic guidelines, continue to build core and flagship products, continuously improve the product spectrum system, continue to strengthen the performance of core products, and accelerate layout software development. Facing the testing needs in emerging fields such as artificial intelligence and 6G communications, the company actively explores and tests new technologies and new forms, strengthens the tracking of new technology layout, strengthens the layout of new domain and new quality technologies, and enhances strategic pre-positioning capabilities.

Talent selection and training mechanism

A high-level R&D team is the core engine that drives technological innovation and continuous breakthroughs. The company attaches great importance to the selection and training of technical talents: externally, it recruits technical elites through dual channels of school recruitment and social recruitment; internally, through systematic training and scientific growth system, it continuously polishes the professional depth and comprehensive quality of employees, and continuously recharges technological innovation.

Efficient innovation incentive system

The company continuously optimizes the salary incentive system, improves the incentive performance distribution method, makes reasonable use of equity incentives, etc., promotes salary distribution to tilt toward strivers, key figures, key personnel, and key matters, constantly stimulates the vitality and joint efforts of all employees, and ensures the sustainability and efficiency of technological innovation.

In accordance with the "Measures for the Management of Scientific Research Project Leaders", "Basic System for Scientific Research Management", "Measures for the Management of Scientific Research Awards" and other regulations, "multi-level, multi-factor" incentives such as job allowances, project awards, product incentives, equity incentives, patent incentives, paper incentives, award-winning incentives, etc. will be continued to stimulate the enthusiasm of scientific researchers for scientific and technological innovation.

7. Issuer’s environmental protection situation

According to relevant normative documents such as the "National Economic Industry Classification (GB/T4754-2017)" and "Notice on Issuing the "Measures for Enterprise Environmental Credit Assessment (Trial)" (Huanfa [2013] No. 150), the industry in which the issuer operates does not belong to a heavily polluting industry.

According to the "Notice on Issuing the List of Key Environmental Supervision Units in Qingdao in 2025" and the "List of Key Environmental Supervision Units in Bengbu City in 2025", the issuer is a soil pollution supervision unit, and its subsidiary Siyi Technology (Anhui) is not a key environmental supervision unit.

The company has completed the necessary environmental assessment approval and acceptance procedures for its production and operation projects.

In the product production process, the company involves relatively few pollutants and has taken effective measures to deal with these pollutants. The details are as follows:

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pollutants

Serial number Main pollutant or source Main treatment facility Type of treatment capacity

Pollutants: total chromium, hexavalent chromium, total nickel, suspended solids, pH value,

Total phosphorus (calculated as P), total nitrogen (calculated as N), total cyanide,

Production wastewater treatment

Total zinc, ammonia nitrogen (NH3-N), petroleum, fluoride (with F- treatment standard, full 1 wastewater system, domestic sewage

(calculated), total copper, chemical oxygen demand, animal and vegetable oils, five-day biochemical treatment system that meets relevant requirements

Oxygen demand, total iron sources: electroplating, chemical oxidation production wastewater and

Domestic sewage

exhaust gas scrubber,

Pollutants: hydrogen chloride, sulfuric acid mist, chromic acid mist, fluoride, nitrogen

XY-02 duplex treatment meets the standard, full of 2 exhaust gas oxides, volatile organic compounds, ammonia (ammonia), lead smoke sources:

Smoke purifier meets relevant requirements for electroplating and SMT welding

discharge after purification

The equipment itself absorbs sound

The treatment meets the standard and reaches 3. Noise source: mechanical processing, power operation, etc., shock absorbing device, factory building

Meet relevant requirements for physical isolation

After collection, entrust the

Electroplating waste liquid, waste emulsion, waste engine oil, electroplating sludge, alcohol, etc. are treated to meet the standards and meet 4 pollutants. Three parties have qualified certificates

Cleaning fluid, waste filter elements, waste lead-acid batteries and other hazardous wastes must be disposed of in compliance with relevant requirements.

After collection, entrust the

General solid processing meets the standard, and reaches 5 metal scraps, etc. The third party has qualified orders

Waste is disposed of in compliance with relevant requirements

According to the relevant test reports issued by third-party professional organizations, the issuer's relevant environmental protection facilities are operating normally, and the pollutants generated during production and operations are in good condition after treatment, and have little impact on the surrounding environment.

During the reporting period, the company and its subsidiaries had no environmental defects that required rectification, no environmental accidents or major mass environmental incidents, and no administrative penalties were imposed by the environmental protection authorities for violating laws and regulations related to environmental protection.

8. The issuer’s production safety situation

The company has established a quality and safety department with full-time safety management personnel, and has formulated safety production management systems such as the "Safety Production Responsibility System, Performance Assessment, and Continuous Improvement Assessment Management Methods" and "Safety Production Target Management System" to standardize the work content of employees. The company holds regular production safety meetings to organize the investigation of potential safety hazards and implement rectification measures. During the reporting period, the safety production system was implemented well.

During the reporting period, the company and its subsidiary Siyi Technology (Anhui) had no major safety production accidents and no records of administrative penalties in the field of safety production.

In summary, the company's production and operations during the reporting period generally complied with national and local production safety regulations and requirements, and no major safety accidents occurred or administrative penalties were imposed due to safety production issues.

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China Electronics Cosi Technology Co., Ltd. Prospectus

9. Overseas operations of the issuer

The company has established a subsidiary company in Germany, Siyi Technology (Germany), which is positioned as the sales, calibration, maintenance and technical service platform of Denko Siyi in Europe. During the reporting period, Siyi Technology (Germany) sold a vector network analyzer equipment to a German customer, with revenue of 1.6768 million yuan.

Apart from this, the company and its subsidiaries do not have any overseas operations.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Section 6 Financial Accounting Information and Management Analysis

Rongcheng Accountants audited the company's consolidated balance sheet on December 31, 2023, December 31, 2024, and December 31, 2025, the consolidated income statement, and cash flow statement for 2023, 2024, and 2025, and issued an "Audit Report" with Rongcheng Shenzi [2026] No. 230Z1088 standard unqualified opinion.

Unless otherwise specified, the financial data listed in this section are quoted from the company's financial report audited by Rongcheng Accountants, or calculated based on relevant data therein; the company reminds investors to pay attention to and read the full text of the financial report and audit report attached to this prospectus to obtain all financial accounting information. Unless otherwise stated, the financial data listed in this section are on a consolidated basis.

1. Audited financial statements during the reporting period

(1) Consolidated balance sheet

Unit: Yuan

Item December 31, 2025 December 31, 2024 Current assets on December 31, 2023:

Monetary funds 1,652,623,139.66 1,230,101,409.46 1,189,671,857.01 Notes receivable 168,717,613.45 107,912,294.23 107,166,899.49 Accounts receivable 689,038,696.81 727,187,383.94 476,591,089.41 Receivables financing 15,416,893.76 9,966,824.50 7,263,882.08 Prepayments 8,741,552.74 12,663,055.62 10,626,868.53 Other receivables 13,384,332.42 33,968,440.55 31,997,987.84 Inventory 1,068,116,121.55 1,084,729,148.86 1,170,168,287.13 Contract assets 27,250,585.43 24,310,291.53 23,204,961.27 Other current assets 6,725,762.39 1,986,287.87 8,882,407.53

Total current assets 3,650,014,698.21 3,232,825,136.56 3,025,574,240.29

Non-current assets:

Investment real estate 2,929,808.33 4,090,802.32 4,280,131.32 Fixed assets 353,986,063.81 354,619,741.82 379,203,683.44 Construction in progress - - - Right-of-use assets 20,587,942.92 33,468,995.04 56,389,605.51 Intangible assets 50,860,104.34 45,598,720.19 38,238,721.50

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Item December 31, 2025 December 31, 2024 Deferred income tax assets on December 31, 2023 86,186,283.86 76,155,781.46 65,259,800.09 Other non-current assets 24,704,618.00 14,094,525.81 13,120,610.37

Total non-current assets 539,254,821.26 528,028,566.64 556,492,552.23 Total assets 4,189,269,519.47 3,760,853,703.20 3,582,066,792.52

Current liabilities:

Notes payable 272,189,374.98 309,020,552.78 222,546,572.04 Accounts payable 629,952,039.28 458,361,472.97 578,964,615.83 Contract liabilities 264,528,864.92 433,425,935.96 400,587,572.44 Employee benefits payable 61,297,238.56 44,667,559.84 42,535,909.93 Taxes payable 56,338,362.76 70,946,906.57 67,826,513.61 Other payables 34,791,442.85 23,213,455.97 39,574,032.82 Non-payables due within one year

8,306,544.35 18,656,004.55 27,335,432.54 Current liabilities

Other current liabilities 5,798,274.50 24,169,994.56 27,862,035.25

Total current liabilities 1,333,202,142.20 1,382,461,883.20 1,407,232,684.46

Non-current liabilities:

Lease liabilities 11,484,733.04 14,584,729.98 31,531,704.52 Deferred income 269,246,743.28 236,345,763.79 186,462,705.89

Total non-current liabilities 280,731,476.32 250,930,493.77 217,994,410.41 Total liabilities 1,613,933,618.52 1,633,392,376.97 1,625,227,094.87

Owner's Equity:

Share capital 825,834,500.00 825,834,500.00 825,834,500.00 Capital reserve 703,100,586.79 696,394,981.63 691,155,201.41 Other comprehensive income 107,198.12 -12,474.58 -Special reserves 17,466,296.02 14,628,619.81 11,545,826.58 Surplus reserve 137,843,577.77 94,846,474.26 68,553,368.44Undistributed profits 890,983,742.25 495,769,225.11 359,750,801.22 Attributable to the parent company

2,575,335,900.95 2,127,461,326.23 1,956,839,697.65 Total owners’ equity

Total owners’ equity 2,575,335,900.95 2,127,461,326.23 1,956,839,697.65

Liabilities and Ownership

4,189,269,519.47 3,760,853,703.20 3,582,066,792.52

total profit

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China Electronics Cosi Technology Co., Ltd. Prospectus

(2) Consolidated income statement

Unit: Yuan

Project 2025 2024 2023

1. Total operating income 2,398,371,735.62 2,051,882,841.45 2,152,921,926.44

Including: operating income 2,398,371,735.62 2,051,882,841.45 2,152,921,926.44

2. Total operating costs 2,023,234,950.81 1,774,953,227.39 1,946,536,287.97

Including: operating costs 1,260,125,621.19 1,038,587,173.65 1,291,458,076.49 taxes and surcharges 20,378,718.99 16,384,639.97 12,043,926.12 sales expenses 142,230,789.54 132,292,914.96 121,350,224.01Administrative expenses 159,848,151.88 141,089,478.42 165,220,905.97R&D expenses 452,802,296.12 458,568,271.77 374,501,939.29Financial expenses -12,150,626.91 -11,969,251.38 -18,038,783.91Including: Interest expenses 920,446.66 1,703,305.94 3,753,372.12Interest income 13,043,751.85 13,643,819.04 22,072,756.18 plus: other income 147,148,824.99 34,251,178.01 48,904,781.53 Credit impairment loss (loss calculated as

-12,817,687.45 -16,618,141.57 -16,981,223.36 (Fill in “-”)

Asset impairment losses (losses based on

-59,910,340.90 -29,975,939.74 -56,460,663.64 Fill in the column with "-")

Proceeds from asset disposal (loss calculated as

321,328.15 2,899,628.22 417,684.04 (please fill in the column with "-")

3. Operating profit (loss equal to

449,878,909.60 267,486,338.98 182,266,217.04

Fill in the column with "-" sign)

Add: Non-operating income 949,902.08 1,624,468.29 555,650.58 Less: Non-operating expenses 2,514,416.26 1,481,632.93 512,863.34

4. Total profit (total loss

448,314,395.42 267,629,174.34 182,309,004.28

The amount is filled in with "-")

Less: Income tax expenses 10,102,774.77 -6,959,585.24 -7,561,581.46

5. Net profit (net loss divided by

438,211,620.65 274,588,759.58 189,870,585.74

Fill in the column with "-" sign)

(1) According to business continuity

class

Net profit from continuing operations (net

438,211,620.65 274,588,759.58 189,870,585.74 Losses are listed with a “-” sign)

Net profit from discontinued operations (net

- - Losses are listed with a “-” sign)

(2) According to ownership ownership

class

1.Owned by the parent company

The net profit of the operator (the net loss is filled in with "-" sign)

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China Electronics Cosi Technology Co., Ltd. Prospectus

Project 2025 2024 2023

Profit and loss of minority shareholders (net loss

- -Fill in the column with "-" sign)

6. Taxes on other comprehensive income

107,198.12 -12,474.58 -

Net amount after

(1) Attributable to the parent company

Other comprehensive income of the owner 107,198.12 -12,474.58 - net of tax

Cannot be reclassified into profit and loss

- -Other comprehensive income

Reclassification into profit and loss

107,198.12 -12,474.58 -Other comprehensive income

(1) Convertible loss under equity method

- -Other comprehensive income

(2) Other debt investment companies

- -Changes in fair value

(3) Reclassification of financial assets

Amount included in other comprehensive income - -

(4) Other debt investment letters

- -Provision for impairment

(5) Cash flow hedging reserves

- -Prepare

(6) Foreign currency financial statements discount

107,198.12 -12,474.58 - Calculate the difference

(2) Attributable to minority shareholders

Other comprehensive income, net of tax - - -

Total comprehensive income 438,318,818.77 274,576,285.00 189,870,585.74

(1) Attributable to the parent company

438,318,818.77 274,576,285.00 189,870,585.74 Total comprehensive income of the owners

(2) Attributable to minority shareholders

- - total comprehensive income

8. Earnings per share

(1) Basic earnings per share

0.53 0.33 0.23 (yuan/share)

(2) Diluted earnings per share

0.53 0.33 0.23 (yuan/share)

(3) Consolidated cash flow statement

Unit: Yuan

Project 2025 2024 2023

1. Cash generated from business activities

cash flow

Selling goods and providing services

2,335,221,441.24 2,035,891,403.35 1,931,725,351.45 cash received

Other receipts and operating activities 219,863,537.33 98,743,352.18 90,310,496.31

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China Electronics Cosi Technology Co., Ltd. Prospectus

Items 2025 2024 Cash related to 2023

Small cash inflow from operating activities

2,555,084,978.57 2,134,634,755.53 2,022,035,847.76 total

Purchase goods, receive labor support

1,169,609,532.61 1,057,792,826.95 1,106,401,519.41 Cash paid

Payment to employees and services

605,924,531.91 570,850,359.68 561,548,004.26 Cash paid by employees

Various taxes and fees paid 179,172,907.17 125,020,446.03 107,706,429.50 Paid for other and operating activities

95,379,657.80 149,218,211.21 132,682,024.68 related cash

Small cash outflow from operating activities

2,050,086,629.49 1,902,881,843.87 1,908,337,977.85 total

Cash generated from operating activities

504,998,349.08 231,752,911.66 113,697,869.91

Net flow

2. Cash generated from investment activities

cash flow

Disposal of fixed assets and intangible assets

net cash received from property and other long-term assets 16,233.20 87,712.40 49,389.38

Receive other investment activities

- - Relevant cash

Small cash inflow from investing activities

16,233.20 87,712.40 49,389.38 total

Purchase and construction of fixed assets and intangible assets

Cash paid for assets and other long-term assets 63,062,627.45 58,352,538.67 175,988,176.00

Small cash outflow from investing activities

63,062,627.45 58,352,538.67 175,988,176.00

Cash generated from investing activities

-63,046,394.25 -58,264,826.27 -175,938,786.62

Net flow

3. Cash generated from financing activities

cash flow

Receive other related fundraising activities

5,018,681.86 - 40,066,841.72 related cash

Small cash inflow from financing activities

5,018,681.86 - 40,066,841.72 total

Distribution of dividends, profits or payments

112,277,229.87 115,591,549.38 Interest payment in cash

Payment and other financing activities

20,299,623.76 32,893,933.69 33,123,341.84 Relevant cash

Small cash outflow from financing activities

20,299,623.76 145,171,163.56 148,714,891.22 total

Cash generated from financing activities

-15,280,941.90 -145,171,163.56 -108,648,049.50

Net flow

4. The impact of exchange rate changes on cash and

869,399.13 176,043.34 145,255.60

Impact of cash equivalents

5. Cash and cash equivalents 427,540,412.06 28,492,965.17 -170,743,710.61

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Project 2025 2024 Net increase in 2023

Add: opening cash and cash, etc.

1,199,932,345.85 1,171,439,380.68 1,342,183,091.29 Balance of price

6. Closing cash and cash, etc.

1,627,472,757.91 1,199,932,345.85 1,171,439,380.68

Price balance

2. Audit opinions and key audit matters of the accounting firm

(1) Audit opinions

Rongcheng Accountants audited the company's financial statements, including the consolidated and parent company balance sheets as of December 31, 2025, December 31, 2024, and December 31, 2023, 2025, 2024, and 2023 The annual consolidated and parent company's income statement, consolidated and parent company's cash flow statement, consolidated and parent company's statement of changes in owner's equity, and notes to relevant financial statements, and issued a standard unqualified audit report (Rongcheng Shen Zi [2026] No. 230Z1088).

Rongcheng Accountants believes that the company's financial statements are prepared in accordance with the provisions of the Accounting Standards for Business Enterprises in all material aspects, and fairly reflect the company's consolidated and parent company's financial status as of December 31, 2025, December 31, 2024, and December 31, 2023, as well as the consolidated and parent company's operating results and cash flows in 2025, 2024, and 2023.

(2) Key audit matters

The key audit matters are matters that Rongcheng Accountants, based on their professional judgment, consider to be the most important matters in the audit of the financial statements for 2025, 2024 and 2023. The response to these matters is based on the overall audit of the financial statements and the formation of audit opinions. Rongcheng Accountants does not express independent opinions on these matters.

Revenue recognition

Relevant accounting periods: 2025, 2024, and 2023.

(1) Description of the matter

Diankesi Instrument's revenue mainly includes complete machine sales business, component sales business, test system business, etc. The operating income in 2025, 2024 and 2023 will be 2,398,371,700 yuan, 2,051,882,800 yuan and 2,152,921,900 yuan respectively. Since operating income is a key performance indicator and the recognition of operating income is directly related to the accuracy and rationality of financial statements, Rongcheng Accountants identified the recognition of operating income as a key audit matter.

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(2) Audit response

① Understand the key internal controls related to revenue recognition, evaluate whether the internal control design is effective, and test the effectiveness of relevant internal control operations;

② Check the main sales contracts, identify the terms related to the transfer of product control rights and the transfer of major risks and rewards related to revenue recognition, and evaluate whether the revenue recognition policy complies with the accounting standards for enterprises;

③ Implement substantive analysis procedures on operating income and gross profit margin to identify whether there are major or abnormal fluctuations and identify the causes of fluctuations;

④ Adopt a sampling method to check the sales contracts, sales invoices, acceptance orders, receipt forms, customs declarations and other materials related to the business income of Diancosi Instrument to evaluate whether the sales revenue recognition is true; for the sales revenue recognized before and after the balance sheet date of Diancosi Instrument, check the sales contract, sales invoice, acceptance form, receipt form, customs declaration form and other materials to evaluate the accuracy of the time point of sales revenue recognition;

⑤ Carry out correspondence and interview procedures to confirm important information such as customer sales to confirm whether the book income is correct.

Inventory impairment

Relevant accounting periods: 2025, 2024, and 2023.

(1) Description of the matter

As of the end of 2025, the end of 2024 and the end of 2023, the book balances of Dianke Siyi's inventory were 1,230,123,700 yuan, 1,234,099,200 yuan and 1,300,890,900 yuan respectively, and the amounts of price decline provisions that had been accrued were 162,007,600 yuan, 149,370,100 yuan and 149,370,100 yuan respectively. 130.7226 million yuan. Inventories are an important component of the consolidated balance sheet of Diankesiyi. The provision for inventory depreciation depends on management's estimate of the net realizable value of the inventory. The determination of the net realizable value of inventory requires management to estimate the selling price of the inventory, the costs to be incurred upon completion, sales expenses and related taxes. Given that the determination of the year-end book value of inventory requires management to identify items and objective evidence that have been impaired, evaluate the expected future cash flows and determine their present value, which involves the management's use of significant accounting estimates and judgments, Rongcheng Accountants identified inventory impairment as a key audit matter.

(2) Audit response

The relevant procedures implemented by Rongcheng Accountants for inventory impairment mainly include:

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① Understand, evaluate and test the design and operational effectiveness of key internal controls related to inventory management and provision for decline in value of Electric Cos Instrument;

② Implement inventory monitoring procedures, check the quantity and status of inventory, conduct an analytical review of inventory with a long storage age based on product market conditions and actual inventory turnover days, and evaluate whether the inventory depreciation provisions are reasonable; and pay attention to whether inventory that cannot be sold and used normally is identified;

③ Obtain the inventory depreciation reserve calculation sheet, review the inventory impairment test process, randomly check whether it is implemented in accordance with the relevant accounting policies and accounting estimates of Diankesi Instrument, check the changes in the inventory depreciation reserve made in previous years, etc. in the current period, and verify whether the inventory depreciation reserve is sufficient.

(3) Specific criteria for judging the level of importance

The company’s disclosure of major matters or importance levels related to financial accounting information refers to the following standards:

Project Materiality Criteria Determination Method and Selection Basis

The amount of individual provision for bad debts accounts for 10% of the total provision for bad debts of accounts receivable. Important individual provision for bad debts is receivable.

Above and the amount is greater than 1 million yuan

The bad debt provision for important accounts receivable is recovered or reversed. The individual recovery or reverse amount is greater than RMB 1 million. Important accounts receivable are written off. The individual write-off amount is greater than RMB 1 million.

Important construction projects under construction The total investment in a single project exceeds 0.5% of the total assets

Important accounts payable aged more than 1 year, the individual amount exceeds 0.5% of total assets

Important other payables aged more than 1 year. The individual amount exceeds 0.5% of total assets.

Cash received related to important investment activities. The individual amount exceeds 0.5% of total assets.

Cash payments related to important investment activities The individual amount exceeds 0.5% of total assets

3. Basis for preparation of financial statements

(1) Basis for preparation

The company is based on going concern, recognizes and measures actual transactions and events in accordance with the Accounting Standards for Business Enterprises and its application guidelines and explanations of the standards, and prepares financial statements on this basis. In addition, the company also discloses relevant financial information in accordance with the China Securities Regulatory Commission's "Information Disclosure and Preparation Rules for Companies that Offer Securities to the Public No. 15 - General Provisions on Financial Reports (2023 Revision)".

(2) Continued operations

The company evaluated its ability to continue operating for 12 months from the end of the reporting period and found no impact on the company’s ability to continue operating.

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China Electronics Cosi Instruments Technology Co., Ltd.’s prospectus concerns the ability to continue operating, and it is reasonable for the company to prepare financial statements on a going concern basis.

4. Scope and changes of consolidated statements

(1) Scope of consolidated statements

During the reporting period, the subsidiaries within the scope of the company's consolidated financial statements were Anhui Siyi and Siyi Technology (Germany). Anhui Siyi was established in June 2018, and Siyi Technology (Germany) was established in September 2024. Both are limited liability companies wholly owned by the company.

(2) Changes in the scope of consolidated statements during the reporting period

The new subsidiary Siyi Technology (Germany) will be added to the scope of consolidated statements in 2024 and 2025.

5. Important accounting policies and accounting estimates

The following important accounting policies and accounting estimates of the Company are formulated in accordance with the Accounting Standards for Business Enterprises. Businesses not mentioned are carried out in accordance with the relevant accounting policies in the Accounting Standards for Business Enterprises.

(1) Statement on compliance with accounting standards for enterprises

The financial statements prepared by the company comply with the requirements of accounting standards for enterprises and truly and completely reflect the company's financial status, operating results, changes in owner's equity, cash flow and other relevant information.

(2) Accounting period

The company's fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.

(3) Business cycle

The company's normal operating cycle is one year.

(4) Accounting standard currency

The company's accounting standard currency is RMB, and its overseas (branch) subsidiaries use the currency of the main economic environment in which they operate as the accounting standard currency.

(5) Accounting treatment methods for business combinations under the same control and those not under the same control

Merger of enterprises under common control

The assets and liabilities acquired by the company in a business merger are measured at the book value of the merged party in the consolidated financial statements of the ultimate controlling party on the merger date. Among them, for the business combination between the merged party and the company

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If the previously adopted accounting policies and accounting periods are different, the accounting policies and accounting periods shall be unified based on the principle of materiality, that is, the book value of the assets and liabilities of the merged party shall be adjusted in accordance with the company's accounting policies and accounting periods. If there is a difference between the book value of the net assets acquired by the company in the business combination and the book value of the consideration paid, the capital reserve (capital premium or equity premium) will be adjusted first. If the balance of the capital reserve (capital premium or equity premium) is insufficient to offset it, the surplus reserve and undistributed profits will be offset in sequence.

Business mergers not under common control

The identifiable assets and liabilities of the purchased party acquired by the Company in a business combination are measured at their fair value on the acquisition date. Among them, if the accounting policies and accounting periods adopted by the purchased party and the company before the business merger are different, the accounting policies and accounting periods shall be unified based on the principle of importance, that is, the book value of the assets and liabilities of the purchased party shall be adjusted in accordance with the accounting policies and accounting periods of the company. The difference between the company's merger cost on the acquisition date and the fair value of the acquiree's identifiable assets and liabilities acquired in the business merger is recognized as goodwill; if the merger cost is less than the difference between the fair values of the acquiree's identifiable assets and liabilities acquired in the business merger, the difference is recognized as goodwill. First, the merger cost and the fair value of the acquiree's identifiable assets and liabilities obtained in the business merger are reviewed. After the review, if the merger cost is still less than the fair value of the acquiree's identifiable assets and liabilities, the difference is recognized as the current profit and loss of the merger.

Handling of transaction costs in business mergers

Intermediary fees such as auditing, legal services, evaluation and consulting, and other related management fees incurred for business mergers are included in the current profit and loss when incurred. The transaction costs of equity securities or debt securities issued as consideration for the merger shall be included in the initial recognition amount of the equity securities or debt securities.

(6) Judgment standards for control and preparation methods of consolidated financial statements

Judgment criteria for control and determination of consolidation scope

Control means that the company has power over the investee, enjoys variable returns by participating in the investee's relevant activities, and has the ability to use its power over the investee to affect the amount of its returns. The definition of control includes three basic elements: first, the investor has power over the investee; second, it enjoys variable returns due to participation in the investee’s relevant activities; third, it has the ability to use its power over the investee to affect the amount of its returns. When the company's investment in the investee meets the above three elements, it indicates that the company can control the investee.

The consolidation scope of the consolidated financial statements is determined on the basis of control, including not only subsidiaries determined based on voting rights (or similar voting rights) themselves or in combination with other arrangements, but also including subsidiaries based on one or more contracts.

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China Electronics Cosi Instrument Technology Co., Ltd. is the structured entity determined by the prospectus arrangement.

Subsidiaries refer to entities controlled by the company (including divisible parts of enterprises, investee units, and structured entities controlled by enterprises, etc.). Structured entities refer to entities designed without voting rights or similar rights as a decisive factor when determining their controllers (note: sometimes also called special purpose entities).

Special regulations regarding the parent company as an investment entity

If the parent company is an investment entity, only those subsidiaries that provide relevant services for the investment activities of the investment entity will be included in the scope of consolidation, and other subsidiaries will not be consolidated. The equity investors of subsidiaries that are not included in the scope of consolidation will be recognized as financial assets measured at fair value with changes included in current profits and losses.

When a parent company meets the following conditions at the same time, it is an investment entity:

(1) The company obtains funds from one or more investors for the purpose of providing investment management services to investors.

(2) The company's sole business purpose is to provide returns to investors through capital appreciation, investment income, or both.

(3) The company considers and evaluates the performance of almost all investments based on fair value.

When a parent company transforms from a non-investment entity to an investment entity, in addition to including only the subsidiaries that provide related services for its investment activities into the scope of consolidated financial statements when preparing consolidated financial statements, the enterprise will no longer consolidate other subsidiaries from the date of transformation, and handle them with reference to the principle of partially disposing of subsidiary equity without losing control.

When the parent company transforms from an investment entity to a non-investment entity, the subsidiaries that were not originally included in the scope of the consolidated financial statements should be included in the scope of the consolidated financial statements on the date of transformation. The fair value of the subsidiaries that were not originally included in the scope of the consolidated financial statements on the date of transformation is regarded as the transaction consideration for the purchase, and is treated in accordance with the accounting treatment method for business combinations not under common control.

Preparation method of consolidated financial statements

The company prepares consolidated financial statements based on its own and its subsidiaries' financial statements and other relevant information.

The company prepares consolidated financial statements, treating the entire enterprise group as an accounting entity, and reflects the enterprise's performance in accordance with the recognition, measurement and presentation requirements of relevant accounting standards for enterprises and in accordance with unified accounting policies and accounting periods.

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China Electronics Cosi Instrument Technology Co., Ltd. Prospectus Industrial Group's overall financial status, operating results and cash flow.

(1) Consolidate the assets, liabilities, owners' equity, income, expenses, cash flow and other items of the parent company and subsidiaries.

(2) Offset the parent company’s long-term equity investment in the subsidiary with the parent company’s share of the subsidiary’s owner’s equity.

(3) Offset the impact of internal transactions between the parent company and its subsidiaries, and between subsidiaries. If internal transactions indicate that impairment losses have occurred on related assets, the losses shall be recognized in full.

(4) Adjust special transaction matters from the perspective of the enterprise group.

Dealing with the addition or deletion of subsidiaries during the reporting period

(1) Add subsidiaries or businesses

①Subsidiaries or businesses added by business combination under common control

A. When preparing the consolidated balance sheet, adjust the opening balance of the consolidated balance sheet and adjust the relevant items in the comparative statement at the same time. It is deemed that the merged reporting entity has existed since the time when the ultimate controlling party began to control.

B. When preparing the consolidated income statement, the income, expenses, and profits of the subsidiary and the business combination from the beginning of the current period to the end of the reporting period are included in the consolidated income statement. At the same time, relevant items in the comparative statement are adjusted, and the post-merger reporting entity is deemed to have existed since the time when the ultimate controlling party began to control.

C. When preparing the consolidated cash flow statement, include the cash flow of the subsidiary and the business combination from the beginning of the current period to the end of the reporting period into the consolidated cash flow statement, and adjust the relevant items in the comparative statement. It is deemed that the post-merger reporting entity has existed since the time when the ultimate controlling party began to control.

②Subsidiaries or businesses added by business combination not under common control

A. When preparing the consolidated balance sheet, the opening balance of the consolidated balance sheet will not be adjusted.

B. When preparing the consolidated income statement, include the income, expenses and profits of the subsidiary and business from the date of purchase to the end of the reporting period into the consolidated income statement.

C. When preparing the consolidated cash flow statement, include the cash flow from the acquisition date of the subsidiary to the end of the reporting period into the consolidated cash flow statement.

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(2) Disposal of subsidiaries or businesses

① When preparing the consolidated balance sheet, the opening balance of the consolidated balance sheet will not be adjusted.

② When preparing the consolidated income statement, include the income, expenses and profits of the subsidiary and its business from the beginning of the period to the date of disposal into the consolidated income statement.

③When preparing the consolidated cash flow statement, include the cash flow of the subsidiary and the business from the beginning of the period to the disposal date into the consolidated cash flow statement.

Special considerations in merger elimination

(1) The long-term equity investment held by a subsidiary of the company shall be regarded as the company's treasury shares, and shall be listed as "less: treasury shares" under the owner's equity item in the consolidated balance sheet as a deduction from the owner's equity.

For long-term equity investments held by subsidiaries among each other, the long-term equity investment and its corresponding share of the owner's equity of the subsidiary are offset against each other according to the offsetting method of the company's equity investment in the subsidiary.

(2) Since the "special reserves" and "general risk reserves" items are neither paid-in capital (or equity) nor capital reserves, nor are they different from retained earnings and undistributed profits, after the long-term equity investment and the subsidiary's owner's equity are offset, they will be restored according to the share attributable to the owners of the parent company.

(3) If there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and the tax basis of the taxable entity due to offsetting unrealized internal sales profits and losses, deferred income tax assets or deferred income tax liabilities will be recognized in the consolidated balance sheet, and the income tax expenses in the consolidated income statement will be adjusted at the same time, except for deferred income taxes related to transactions or events directly included in owner's equity and business mergers.

(4) Unrealized internal transaction gains and losses arising from the company's sale of assets to subsidiaries shall be fully offset against "net profits attributable to owners of the parent company". Unrealized internal transaction profits and losses arising from the sale of assets by a subsidiary to the company shall be allocated and offset between "net profits attributable to owners of the parent company" and "minority shareholders' profits and losses" in accordance with the company's distribution ratio to the subsidiary. Unrealized internal transaction profits and losses arising from the sale of assets between subsidiaries shall be allocated and offset between "net profits attributable to owners of the parent company" and "minority shareholders' profits and losses" in accordance with the company's distribution ratio to the selling subsidiary.

(5) If the current losses shared by the minority shareholders of a subsidiary exceed the minority shareholders' share of the subsidiary's opening owner's equity, the balance should still be offset against the minority shareholders' equity.

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Accounting treatment of special transactions

(1) Purchase minority shareholders’ equity

The Company purchases the equity of a subsidiary owned by minority shareholders of the subsidiary. In the individual financial statements, the investment cost of the newly acquired long-term equity investment for the purchase of the minority equity is measured according to the fair value of the consideration paid. In the consolidated financial statements, the difference between the newly acquired long-term equity investment due to the purchase of minority shares and the share of the subsidiary's net assets calculated continuously from the date of purchase or merger based on the new shareholding ratio shall be adjusted to the capital reserve (capital premium or equity premium). If the capital reserve is insufficient to offset, the surplus reserve and undistributed profits shall be offset in sequence.

(2) Obtaining control of a subsidiary step by step through multiple transactions

① Achieve the merger of enterprises under the same control step by step through multiple transactions

On the merger date, the company determines the initial investment cost of the long-term equity investment in its individual financial statements based on the share of the book value of the subsidiary's net assets in the ultimate controlling party's consolidated financial statements that it will enjoy after the merger; the initial investment cost is the same as the long-term equity before the merger. The difference between the book value of the investment and the sum of the book value of the newly paid consideration for further shares acquired on the merger date is adjusted to the capital reserve (capital premium or equity premium). If the capital reserve (capital premium or equity premium) is insufficient to offset, the surplus reserve and undistributed profits are offset in sequence.

In the consolidated financial statements, the assets and liabilities of the merged party obtained by the combining party during the merger are measured according to their book value in the consolidated financial statements of the ultimate controlling party on the date of merger, except for adjustments due to differences in accounting policies and accounting periods. The difference between the book value of the investments held before the merger plus the book value of the new consideration paid on the date of merger and the book value of the net assets acquired in the merger is adjusted to the capital reserve (equity premium/capital premium). If the capital reserve is insufficient for offset, the retained earnings are adjusted.

For equity investments held by the merging party before acquiring control of the merged party, relevant profits and losses, other comprehensive income and other changes in owner's equity have been recognized between the date of acquisition of the original equity and the date when the merging party and the merged party are under the final control of the same party, whichever is later, to the merger date, and shall be offset against the opening retained earnings or current profits and losses of the comparative statement period respectively.

② Achieve the merger of enterprises not under the same control step by step through multiple transactions

On the merger date, in individual financial statements, the sum of the book value of the original long-term equity investment plus the new investment cost on the merger date will be regarded as the initial investment cost of the long-term equity investment on the merger date.

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In the consolidated financial statements, the equity of the acquiree held before the acquisition date is remeasured according to the fair value of the equity on the acquisition date. The equity of the acquiree held before the acquisition date is designated as a financial asset measured at fair value and its changes are included in other comprehensive income. , the difference between the fair value and its book value is included in retained earnings, and the cumulative fair value changes of the equity that were originally included in other comprehensive income are transferred to retained earnings; the equity of the purchased party held before the purchase date is measured at fair value and its changes are included in the current profit and loss. For assets or long-term equity investments accounted for by the equity method, the difference between the fair value and its book value is included in the current investment income; the equity of the purchased party held before the acquisition date involves other comprehensive income under the equity method and net profit and loss and other comprehensive income under the equity method. If there are other changes in owners' equity other than profit distribution, the other comprehensive income related to it will be accounted for on the same basis as the investee's direct disposal of relevant assets or liabilities on the purchase date, and the other changes in owner's equity related to it will be converted into investment income for the current period on the purchase date.

(3) The company disposes of long-term equity investments in subsidiaries but does not lose control

If the parent company partially disposes of its long-term equity investment in a subsidiary without losing control, in the consolidated financial statements, the difference between the disposal price and the share of the subsidiary's net assets continuously calculated from the date of purchase or merger will be adjusted to the capital reserve (capital premium or equity premium). If the capital reserve is insufficient for offset, the retained earnings will be adjusted.

(4) The company disposes of long-term equity investments in subsidiaries and loses control

①One transaction disposal

If the company loses control over the investee due to disposal of part of its equity investment or other reasons, when preparing consolidated financial statements, the remaining equity will be remeasured according to its fair value on the date when control is lost. The difference between the sum of the consideration obtained for disposing of the equity and the fair value of the remaining equity, minus the share of the original subsidiary's net assets calculated continuously from the date of purchase or merger based on the original shareholding ratio and the sum of goodwill, shall be included in the investment income in the period when control is lost.

Other comprehensive income related to the equity investment of the atomic company will be accounted for on the same basis as the original subsidiary's direct disposal of relevant assets or liabilities when control is lost. Other changes in owner's equity related to the original subsidiary that are accounted for under the equity method will be transferred to the current profit and loss when control is lost.

②Multiple transactions are disposed of step by step

In the consolidated financial statements, we should first determine whether the step-by-step transaction is a "package transaction".

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If the step-by-step transaction does not belong to a "package transaction", in the individual financial statements, for each transaction before the loss of control of the subsidiary, the book value of the long-term equity investment corresponding to each equity disposal will be carried forward, and the difference between the proceeds and the book value of the long-term equity investment disposed shall be included in the investment income of the current period; in the consolidated financial statements, it shall be handled in accordance with the relevant provisions of "the parent company disposes of the long-term equity investment in the subsidiary without losing control."

If the step-by-step transaction is a "package transaction", each transaction should be accounted for as a transaction in which the subsidiary is disposed of and control is lost; in individual financial statements, the difference between the price of each disposal before the loss of control and the book value of the long-term equity investment corresponding to the equity disposed is first recognized as other comprehensive income. When control is lost, it will be transferred to the profit and loss of the current period when control is lost; in the consolidated financial statements, for each transaction before the loss of control, the difference between the disposal price and the share of the net assets of the subsidiary corresponding to the disposal investment should be recognized as other comprehensive income, and when control is lost, it will be transferred to the profit and loss of the current period when control is lost.

If the terms, conditions and economic impact of each transaction meet one or more of the following conditions, multiple transactions are usually accounted for as a "package transaction":

A. These transactions were entered into at the same time or with consideration of mutual effects.

B. Only these transactions as a whole can achieve a complete business result.

C. The occurrence of one transaction depends on the occurrence of at least one other transaction.

D. A transaction is uneconomical when considered alone, but economical when considered together with other transactions. (5) Dilution of the equity ratio owned by the parent company due to capital increase by minority shareholders of the sub-company

Other shareholders (minority shareholders) of the subsidiary increase capital in the subsidiary, thereby diluting the parent company's equity ratio in the subsidiary. In the consolidated financial statements, the share of the subsidiary's book net assets before the capital increase is calculated based on the parent company's equity ratio before the capital increase. The difference between this share and the subsidiary's share of the subsidiary's book net assets after the capital increase calculated based on the parent company's shareholding ratio after the capital increase is adjusted to the capital reserve (capital premium or equity premium). If the capital reserve (capital premium or equity premium) is insufficient to offset, the retained earnings are adjusted.

(7) Determination standards for cash and cash equivalents

Cash refers to corporate cash on hand and deposits that can be used for payment at any time. Cash equivalents refer to short-term holdings (generally due within three months from the date of purchase), high liquidity, and easy conversion into known amounts of cash.

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An investment that carries little risk of change in value.

(8) Foreign currency business and foreign currency statement conversion

Method for determining the conversion exchange rate during foreign currency transactions

When the Company's foreign currency transactions are initially recognized, they are converted into the accounting functional currency using the spot exchange rate on the date of the transaction or an exchange rate determined in a systematic and reasonable manner that is approximate to the spot exchange rate on the date of the transaction (hereinafter referred to as the "approximate exchange rate of the spot exchange rate").

Conversion method of foreign currency monetary items on the balance sheet date

On the balance sheet date, foreign currency monetary items are translated using the spot exchange rate on the balance sheet date. Exchange differences arising from differences between the spot exchange rate on the balance sheet date and the spot exchange rate on initial recognition or the previous balance sheet date are included in the current profit and loss. For foreign currency non-monetary items measured at historical cost, the spot exchange rate on the date of transaction is still used for translation; for inventories measured at the lower of cost and net realizable value, the inventory is purchased in foreign currency and the net realizable value of the inventory on the balance sheet date is If the value is reflected in a foreign currency, the net realizable value is first converted into the recording currency amount according to the spot exchange rate on the balance sheet date, and then compared with the inventory cost reflected in the recording currency to determine the ending value of the inventory; for fair value Foreign currency non-monetary items measured at fair value are converted using the spot exchange rate on the date when the fair value is determined. For financial assets measured at fair value with changes included in current profits and losses, the difference between the converted accounting functional currency amount and the original accounting functional currency amount The amount is included in the current profit and loss. For non-trading equity instrument investments designated as measured at fair value and whose changes are included in other comprehensive income, the difference between the converted accounting functional currency amount and the original accounting functional currency amount is included in other comprehensive income.

Conversion method of foreign currency statements

Before converting the financial statements of an enterprise's overseas operations, it is necessary to adjust the accounting period and accounting policies of the overseas operations to make them consistent with the accounting period and accounting policies of the enterprise, and then prepare financial statements in the corresponding currency (currency other than the accounting standard currency) based on the adjusted accounting policies and accounting periods, and then convert the financial statements of the overseas operations according to the following method:

(1) Assets and liability items in the balance sheet are translated using the spot exchange rate on the balance sheet date. Owner's equity items, except for the "undistributed profits" items, are translated using the spot exchange rate at the time of occurrence. (2) The income and expense items in the income statement adopt the spot exchange rate or spot exchange rate on the date of transaction.

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(3) Foreign currency cash flows and cash flows of overseas subsidiaries are translated using the spot exchange rate on the date of cash flow occurrence or an approximate exchange rate of the spot exchange rate. The impact of exchange rate changes on cash should be presented separately in the cash flow statement as an adjustment item.

(4) The resulting translation difference of foreign currency financial statements will be listed in the "other comprehensive income" item under the owner's equity item in the consolidated balance sheet when preparing the consolidated financial statements.

When an overseas operation is disposed of and control is lost, the translation difference of foreign currency statements listed under the owner's equity item in the balance sheet and related to the overseas operation shall be transferred to the current profit and loss of the disposal in full or in proportion to the disposal of the overseas operation.

(9) Financial instruments

A financial instrument refers to a contract that forms a financial asset of one party and a financial liability or equity instrument of another party.

Recognition and derecognition of financial instruments

When the company becomes a party to a financial instrument contract, the relevant financial assets or financial liabilities are recognized. Financial assets shall be derecognized if they meet one of the following conditions:

(1) The contractual right to receive cash flows from the financial asset terminates;

(2) The financial asset has been transferred and meets the following conditions for derecognition of financial asset transfer.

If the current obligation of a financial liability (or part thereof) has been discharged on the settlement date, the financial liability (or part thereof) shall be derecognised. An agreement is signed between the company (borrower) and the lender to replace the original financial liability by assuming a new financial liability, and if the contract terms of the new financial liability are substantially different from the original financial liability, the original financial liability will be derecognised and the new financial liability will be recognized at the same time. If the company makes substantial modifications to the contract terms of the original financial liability (or part thereof), it shall terminate the original financial liability and recognize a new financial liability in accordance with the modified terms.

When financial assets are bought and sold in a regular manner, accounting recognition and derecognition will be carried out based on the transaction date. The conventional way of buying and selling financial assets refers to delivering financial assets in accordance with the terms of the contract and at the time schedule determined by regulations or market practices. The trading day refers to the date when the company commits to buy or sell financial assets.

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Classification and measurement of financial assets

Upon initial recognition, based on the business model of managing financial assets and the contractual cash flow characteristics of financial assets, the company classifies financial assets into: financial assets measured at amortized cost, financial assets measured at fair value with changes included in current profits and losses, and financial assets measured at fair value with changes included in other comprehensive income. Financial assets may not be reclassified after initial recognition unless the Company changes the business model in which the financial assets are managed, in which case all affected related financial assets are reclassified on the first day of the first reporting period following the change in business model.

Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value and whose changes are included in the current profit and loss, the relevant transaction costs are directly included in the current profit and loss, and the relevant transaction costs of other types of financial assets are included in their initial recognition amount. Notes receivable and accounts receivable arising from the sale of goods or provision of services, which do not contain or take into account significant financing components, are initially measured by the company based on the transaction price defined in the revenue standards.

The subsequent measurement of a financial asset depends on its classification:

(1) Financial assets measured at amortized cost

If a financial asset meets the following conditions at the same time, it is classified as a financial asset measured at amortized cost: the company's business model for managing the financial asset is to collect contractual cash flows as the goal; the contractual terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the outstanding principal amount. For such financial assets, the actual interest rate method is used and subsequent measurement is carried out at amortized cost. Gains or losses arising from their derecognition, amortization or impairment based on the actual interest rate method are included in the current profits and losses. (2) Financial assets measured at fair value and changes included in other comprehensive income

If a financial asset meets the following conditions at the same time, it is classified as a financial asset measured at fair value with changes included in other comprehensive income: the company's business model for managing this financial asset is to collect contractual cash flows as well as sell financial assets as the goal; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest based on the outstanding principal amount. For such financial assets, fair value is used for subsequent measurement. Except for impairment losses or gains and exchange gains and losses that are recognized as current profits and losses, changes in the fair value of such financial assets are recognized as other comprehensive income until the financial assets are derecognised, and their accumulated profits or losses are transferred to current profits and losses. However, the interest income related to the financial asset calculated using the actual interest rate method is included in the current profit and loss.

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The Company irrevocably chooses to designate some non-trading equity instrument investments as financial assets measured at fair value with changes included in other comprehensive income. Only relevant dividend income will be included in the current profit and loss, and changes in fair value will be recognized as other comprehensive income until the financial assets are derecognised, and their accumulated gains or losses will be transferred to retained earnings.

(3) Financial assets measured at fair value and changes included in current profits and losses

Financial assets other than the above-mentioned financial assets measured at amortized cost and financial assets measured at fair value through other comprehensive income are classified as financial assets measured at fair value through profit or loss for the current period. For such financial assets, fair value is used for subsequent measurement, and all changes in fair value are included in the current profit and loss.

Classification and measurement of financial liabilities

The Company classifies financial liabilities into financial liabilities measured at fair value through current profits and losses, loan commitments and financial guarantee contract liabilities for loans with lower than market interest rates, and financial liabilities measured at amortized cost.

The subsequent measurement of financial liabilities depends on their classification:

(1) Financial liabilities measured at fair value and changes included in current profits and losses

This type of financial liabilities includes trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities designated as measured at fair value with changes included in current profits and losses. After initial recognition, such financial liabilities are subsequently measured at fair value. Except for those related to hedging accounting, the gains or losses (including interest expenses) incurred are included in the current profits and losses. However, for financial liabilities designated by the Company as measured at fair value and whose changes are included in current profits and losses, the change in the fair value of the financial liability caused by changes in its own credit risk is included in other comprehensive income. When the financial liability is derecognised, the accumulated gains and losses previously included in other comprehensive income should be transferred out from other comprehensive income and included in retained earnings.

(2) Loan commitments and financial guarantee contract liabilities

A loan commitment is a commitment provided by the Company to customers to provide loans to customers under established contract terms during the commitment period. Loan commitments are provided with impairment losses based on the expected credit loss model.

A financial guarantee contract refers to a contract that requires the company to pay a specific amount of compensation to the contract holder who has suffered a loss when a specific debtor is unable to repay its debts in accordance with the terms of the original or modified debt instrument when due. financial burden

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Guarantee contract liabilities are subsequently measured based on the higher of the loss reserve amount determined based on the impairment principle of financial instruments and the initial recognition amount minus the accumulated amortization amount determined based on the revenue recognition principle. (3) Financial liabilities measured at amortized cost

After initial recognition, other financial liabilities are measured at amortized cost using the effective interest rate method.

Except for special circumstances, financial liabilities and equity instruments are distinguished according to the following principles:

(1) If the company cannot unconditionally avoid delivering cash or other financial assets to fulfill a contractual obligation, the contractual obligation meets the definition of a financial liability. Although some financial instruments do not explicitly contain terms and conditions for the obligation to deliver cash or other financial assets, they may indirectly form contractual obligations through other terms and conditions.

(2) If a financial instrument must be settled or can be settled with the company's own equity instruments, it is necessary to consider whether the company's own equity instruments used to settle the instrument are used as a substitute for cash or other financial assets, or to enable the holder of the instrument to enjoy the remaining equity in the issuer's assets after deducting all liabilities. If it is the former, the instrument is a financial liability of the issuer; if it is the latter, the instrument is an equity instrument of the issuer. In some cases, a financial instrument contract stipulates that the company must use or use its own equity instruments to settle the financial instrument, and the amount of the contractual rights or contractual obligations is equal to the number of its own equity instruments that can be obtained or needs to be delivered multiplied by its fair value at the time of settlement. Regardless of whether the amount of the contractual rights or contractual obligations is fixed or is based entirely or partially on changes in variables other than the market price of the company's own equity instruments (such as interest rates, the price of a certain commodity or the price of a certain financial instrument), the contract is classified as a financial liability.

Derivative financial instruments and embedded derivatives

Derivative financial instruments are initially measured at their fair value on the date when the derivative transaction contract is signed, and are subsequently measured at their fair value. Derivative financial instruments with a positive fair value are recognized as an asset and those with a negative fair value are recognized as a liability.

Except for the effective part of the cash flow hedging, which is included in other comprehensive income and transferred out and included in the current profit and loss when the hedged item affects the profit and loss, gains or losses arising from changes in the fair value of derivative instruments are directly included in the current profit and loss.

For hybrid instruments containing embedded derivatives, such as where the host contract is a financial asset, the hybrid instrument is treated as a

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The relevant provisions on the classification of financial assets shall apply as a whole. If the main contract is not a financial asset, and the hybrid instrument is not measured at fair value and its changes are included in the current profit and loss for accounting treatment, and there is no close relationship between the embedded derivative instrument and the main contract in terms of economic characteristics and risks, and if the conditions of the embedded derivative instrument are the same and the stand-alone instrument meets the definition of a derivative, the embedded derivative instrument is separated from the hybrid instrument and treated as a separate derivative financial instrument. If the fair value of the embedded derivative cannot be measured separately on the acquisition date or subsequent balance sheet date, the hybrid instrument as a whole is designated as a financial asset or financial liability at fair value through profit or loss for the current period.

Impairment of financial instruments

The Company recognizes loss provisions based on expected credit losses for financial assets measured at amortized cost, debt investments measured at fair value with changes included in other comprehensive income, contract assets, lease receivables, loan commitments and financial guarantee contracts, etc.

(1) Measurement of expected credit losses

Expected credit losses refer to the weighted average of the credit losses of financial instruments with the risk of default as the weight. Credit loss refers to the difference between all contractual cash flows receivable under the contract and all cash flows expected to be received by the company, discounted at the original actual interest rate, that is, the present value of all cash shortfalls. Among them, credit-impaired financial assets purchased or originated by the company should be discounted according to the credit-adjusted actual interest rate of the financial assets.

Lifetime expected credit losses refer to the expected credit losses caused by all possible default events that may occur during the entire expected life of a financial instrument.

Expected credit losses within the next 12 months refer to the expected credit losses caused by default events on financial instruments that may occur within 12 months after the balance sheet date (if the expected duration of the financial instrument is less than 12 months, the expected duration), and are part of the expected credit losses throughout the duration.

On each balance sheet date, the Company measures the expected credit losses of financial instruments at different stages respectively. If the credit risk of a financial instrument has not increased significantly since initial recognition, it is in the first stage, and the company will measure loss provisions based on the expected credit losses within the next 12 months; if the credit risk of a financial instrument has increased significantly since initial recognition but has not yet incurred credit impairment, it is in the second stage, and the company will measure loss provisions based on the expected credit losses throughout the entire duration of the instrument; if a financial instrument has incurred credit impairment since initial recognition, it is in the third stage, and the company will measure losses based on the expected credit losses throughout the entire duration of the instrument.

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For financial instruments with low credit risk on the balance sheet date, the Company assumes that its credit risk has not increased significantly since initial recognition, and measures loss provisions based on expected credit losses within the next 12 months.

For financial instruments in the first and second stages and with lower credit risk, the company calculates interest income based on its book balance before impairment provisions and actual interest rate. For financial instruments in the third stage, interest income is calculated based on its book balance minus the amortized cost and actual interest rate after impairment provisions have been made.

For notes receivable, accounts receivable, receivable financing and contract assets, regardless of whether there is a significant financing component, the company measures loss provisions based on expected credit losses throughout the duration.

①Accounts receivable/contract assets

For bills receivable, accounts receivable, other receivables, receivables financing, contract assets and long-term receivables where there is objective evidence of impairment, and other bills receivable, accounts receivable, contract assets and long-term receivables that are subject to individual assessment, individual impairment tests are conducted, expected credit losses are confirmed, and individual impairment provisions are made. For notes receivable, accounts receivable, other receivables, receivables financing, contract assets and long-term receivables where there is no objective evidence of impairment or when a single financial asset cannot assess expected credit losses at a reasonable cost, the company divides notes receivable, accounts receivable, other receivables, receivables financing, contract assets and long-term receivables into several combinations based on credit risk characteristics, and calculates expected credit losses on the basis of the combinations. The basis for determining the combinations is as follows:

The basis for determining the combination of notes receivable is as follows:

Notes Receivable Portfolio 1 Bank Acceptance Bill

Notes Receivable Portfolio 2 Finance Company Acceptance Bill

Notes Receivable Portfolio 3 Commercial Acceptance Bill

For notes receivable divided into portfolios, the Company refers to historical credit loss experience, combines current conditions and predictions of future economic conditions, and calculates expected credit losses through default risk exposure and the expected credit loss rate throughout the duration.

The basis for determining the combination of accounts receivable is as follows:

Accounts receivable portfolio 1 State-owned customers

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Accounts receivable portfolio 3 Related parties within the scope of consolidation

For accounts receivable divided into portfolios, the Company refers to historical credit loss experience, combined with current conditions and predictions of future economic conditions, prepares a comparison table between the aging of accounts receivable and the expected credit loss rate for the entire duration, and calculates expected credit losses.

The basis for determining the combination of other receivables is as follows:

Other receivables portfolio 1 margin and deposit

Other receivables portfolio 2: Reserve funds and others

For other receivables classified into portfolios, the Company refers to historical credit loss experience, combined with current conditions and predictions of future economic conditions, and calculates expected credit losses through default risk exposure and expected credit loss rate within the next 12 months or the entire duration.

The basis for determining the combination of receivables financing is as follows:

Receivables Financing Portfolio 1 Bank Acceptance Bill

Receivables Financing Package 2 Commercial Acceptance Bill

For the financing of receivables divided into portfolios, the Company refers to historical credit loss experience, combines current conditions and predictions of future economic conditions, and calculates expected credit losses through default risk exposure and the expected credit loss rate throughout the duration.

The basis for determining the combination of contract assets is as follows:

Contract asset portfolio 1 Unexpired warranty deposit

Contract asset portfolio 2 Other contract assets

For contract assets divided into portfolios, the Company refers to historical credit loss experience, combines current conditions and predictions of future economic conditions, and calculates expected credit losses through default risk exposure and the expected credit loss rate throughout the duration.

The basis for determining the combination of long-term receivables is as follows:

Long-term receivables portfolio 1 Not overdue long-term receivables

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Long-term receivables portfolio 2 Overdue long-term receivables

For long-term receivables classified as Group 1, unless there is objective evidence that the company will be unable to collect the money according to the original terms of the receivables, no provision for bad debts will be made for long-term receivables that are not overdue. For long-term receivables classified into Group 2, the expiry date of collection as stipulated in the contract is the starting date of aging calculation. The long-term receivables should be transferred to accounts receivable, and bad debt provisions shall be made according to the impairment method of receivables.

②Debt investment and other debt investments

For debt investments and other debt investments, the Company calculates expected credit losses through the default risk exposure and the expected credit loss rate within the next 12 months or throughout the duration, based on the nature of the investment and various types of counterparties and risk exposures.

(2) Has lower credit risk

If the default risk of a financial instrument is low, the borrower has a strong ability to fulfill its contractual cash flow obligations in the short term, and even if there are adverse changes in the economic situation and operating environment in the longer term, it may not necessarily reduce the borrower's ability to fulfill its contractual cash flow obligations, the financial instrument is considered to have lower credit risk.

(3) Credit risk increases significantly

The Company compares the default probability of the financial instrument within the expected duration determined on the balance sheet date with the default probability within the expected duration determined at the time of initial recognition to determine the relative change in the default probability of the financial instrument during the expected duration to assess whether the credit risk of the financial instrument has increased significantly since the initial recognition.

When determining whether credit risk has increased significantly since initial recognition, the Company considers reasonable and supportable information, including forward-looking information, that is available without unnecessary additional cost or effort. Information considered by the Company includes:

① Whether there are significant changes in internal price indicators caused by changes in credit risk;

② Adverse changes in business, financial or economic conditions that are expected to result in significant changes in the debtor's ability to fulfill its debt repayment obligations;

③ Whether the actual or expected operating results of the debtor have changed significantly; whether the regulatory, economic or technological environment in which the debtor is located has significantly adverse changes;

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China Electronics Cosi Technology Co., Ltd. Prospectus

④ Whether the value of the collateral used as debt collateral or the quality of the guarantee or credit enhancement provided by a third party has changed significantly. These changes are expected to reduce the debtor's economic incentives to repay within the contractual period or affect the probability of default;

⑤ Whether there is a significant change in the economic motivation that is expected to reduce the debtor’s repayment within the time limit stipulated in the contract;

⑥ Expected changes in the loan contract, including whether anticipated breaches of the contract may lead to exemption or revision of contractual obligations, granting interest-free periods, jumps in interest rates, requirements for additional collateral or guarantees, or other changes to the contractual framework of financial instruments;

⑦Whether the debtor’s expected performance and repayment behavior have changed significantly;

⑧Whether the contract payment is overdue for more than 30 days (inclusive).

Depending on the nature of the financial instrument, the Company evaluates whether the credit risk has increased significantly on the basis of a single financial instrument or a combination of financial instruments. When evaluating based on a portfolio of financial instruments, the Company may classify financial instruments based on common credit risk characteristics, such as overdue information and credit risk ratings.

Typically, the Company determines that the credit risk of a financial instrument has increased significantly if it is more than 30 days past due. Unless the company can obtain reasonable and substantiated information without undue cost or effort, proving that although the payment period stipulated in the contract exceeds 30 days, the credit risk has not increased significantly since the initial recognition.

(4) Financial assets that have suffered credit impairment

The Company assesses whether credit impairment has occurred on financial assets measured at amortized cost and debt investments measured at fair value through other comprehensive income on the balance sheet date. When one or more events that have an adverse impact on the expected future cash flows of a financial asset occur, the financial asset becomes a credit-impaired financial asset. Evidence that a financial asset has been credit-impaired includes the following observable information:

The issuer or the debtor encounters significant financial difficulties; the debtor breaches the contract, such as default or overdue payment of interest or principal; the creditor grants the debtor concessions that would not be made under any other circumstances due to economic or contractual considerations related to the debtor's financial difficulties; the debtor is likely to go bankrupt or undergo other financial reorganization; the issuer or debtor's financial difficulties cause the active market for the financial asset to disappear; a financial asset is purchased or originated at a substantial discount, and the discount reflects the fact that a credit loss has occurred.

(5) Presentation of expected credit loss provisions

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In order to reflect changes in the credit risk of financial instruments since initial recognition, the company remeasures expected credit losses on each balance sheet date, and the resulting increase or reversal of loss provisions shall be included in the current profit and loss as impairment losses or gains. For financial assets measured at amortized cost, the loss provision is deducted from the book value of the financial asset listed in the balance sheet; for debt investments measured at fair value with changes included in other comprehensive income, the company recognizes its loss provision in other comprehensive income and does not deduct the book value of the financial asset.

(6) Write-off

If the company no longer reasonably expects that the contractual cash flows of a financial asset can be fully or partially recovered, it will directly write down the book balance of the financial asset. Such a write-down constitutes the derecognition of the relevant financial asset. This situation typically occurs when the Company determines that the debtor does not have the assets or sources of income to generate sufficient cash flow to repay the amount that will be written down.

If a financial asset that has been written down is later recovered, the reversal of the impairment loss will be included in the profit and loss of the current period of recovery.

Transfer of financial assets

Financial asset transfer refers to the following two situations:

transfer the contractual rights to receive cash flows from a financial asset to another party;

Transfers a financial asset in whole or in part to another party, but retains the contractual right to receive the cash flows from the financial asset and assumes the contractual obligation to pay the collected cash flows to one or more recipients.

(1) Termination of recognition of transferred financial assets

If substantially all the risks and rewards of ownership of a financial asset have been transferred to the transferee, or if substantially all the risks and rewards of ownership of a financial asset have neither been transferred nor retained, but control of the financial asset has been given up, the financial asset shall be derecognised.

When judging whether control of the transferred financial assets has been given up, the actual ability of the transferee to sell the financial assets is used. If the transferee can unilaterally sell the transferred financial assets as a whole to an unrelated third party, and there are no additional conditions to restrict this sale, the company has given up control of the financial assets.

When the Company determines whether the transfer of financial assets meets the conditions for derecognition of financial assets, the Company pays attention to the essence of the transfer of financial assets.

If the overall transfer of financial assets meets the conditions for derecognition, the difference between the following two amounts will be included in the current profit and loss.

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Benefits:

①The book value of the transferred financial assets;

② The sum of the consideration received due to the transfer and the amount of the derecognition portion of the accumulated changes in fair value that were originally directly included in other comprehensive income (the financial assets involved in the transfer are financial assets classified as financial assets measured at fair value and their changes are included in other comprehensive income in accordance with Article 18 of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments").

If a partial transfer of a financial asset meets the conditions for derecognition, the overall book value of the transferred financial asset shall be apportioned between the derecognized part and the non-derecognized part (in this case, the retained service assets shall be deemed to be part of the continued recognition of financial assets) according to their respective relative fair values on the date of transfer, and the difference between the following two amounts shall be included in the current profit and loss:

①The book value of the derecognized part on the date of derecognition;

② The sum of the consideration for the derecognition part and the amount of the corresponding derecognition part of the cumulative amount of changes in fair value originally included in other comprehensive income (the financial assets involved are financial assets classified as financial assets measured at fair value and their changes are included in other comprehensive income in accordance with Article 18 of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments").

(2) Continue to be involved in the transferred financial assets

If it neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, and does not give up control of the financial asset, the relevant financial assets shall be recognized to the extent of its continued involvement in the transferred financial assets, and the relevant liabilities shall be recognized accordingly.

The degree of continued involvement in the transferred financial assets refers to the degree of risk or reward that the enterprise bears from changes in the value of the transferred financial assets.

(3) Continue to recognize the transferred financial assets

If it still retains substantially all the risks and rewards of ownership of the transferred financial assets, the entire transferred financial assets should continue to be recognized, and the consideration received should be recognized as a financial liability.

The financial assets and the recognized related financial liabilities shall not be offset against each other. In subsequent accounting periods, the enterprise shall continue to recognize the income (or gains) generated by the financial assets and the expenses (or losses) generated by the financial liabilities.

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Offset of financial assets and financial liabilities

Financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset against each other. However, if the following conditions are met at the same time, the net amount after offsetting each other will be presented in the balance sheet:

The company has the legal right to offset the recognized amount, and this legal right is currently enforceable; the company plans to settle on a net basis, or to realize the financial assets and pay off the financial liabilities at the same time.

For transfers of financial assets that do not meet the conditions for derecognition, the transferor shall not offset the transferred financial assets and related liabilities.

(10) Inventory

Classification of inventory

Inventories refer to the finished products or commodities held by the company for sale in daily activities, products in progress during the production process, materials and supplies consumed in the production process or in the process of providing services, including raw materials, products in progress, goods in stock, goods shipped, etc.

Valuation method for shipped inventory

The Company adopts a combination of weighted average method and individual valuation method when issuing inventories.

Inventory inventory system

The company's inventory adopts a perpetual inventory system, which is counted at least once a year, and the amount of inventory gain and loss is included in the current year's profit and loss.

Recognition standards and accrual methods for inventory depreciation provisions

On the balance sheet date, it is measured at the lower of cost and net realizable value. If the inventory cost is higher than its net realizable value, a provision for inventory depreciation is made and included in the current profit and loss.

When determining the net realizable value of inventory, it is based on the reliable evidence obtained and factors such as the purpose of holding the inventory and the impact of events after the balance sheet date are considered.

(1) For inventories that are directly for sale, such as finished products, commodities and materials for sale, during the normal production and operation process, the net realizable value is determined by the estimated selling price of the inventory minus the estimated sales expenses and related taxes. For inventories held for the execution of a sales contract or a labor service contract, the contract price shall be used as the measurement basis for its net realizable value; if the quantity of inventory held is greater than the quantity ordered under the sales contract, the excess shall be

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The net realizable value of inventories is measured based on the general sales price. For materials used for sale, the market price is used as the measurement basis of their net realizable value.

(2) For materials inventory that needs to be processed, in the normal production and operation process, the net realizable value is determined by the estimated selling price of the finished products minus the estimated costs to be incurred upon completion, estimated sales expenses and related taxes. If the net realizable value of the finished product produced by it is higher than the cost, the material is measured at cost; if the drop in material price indicates that the net realizable value of the finished product is lower than the cost, the material is measured at net realizable value, and inventory depreciation provisions are made based on the difference.

(3) The company generally accrues inventory depreciation provisions based on individual inventory items; for inventory with a large quantity and low unit price, it is accrued based on inventory category.

(4) On the balance sheet date, if the factors that caused the previous write-down of the inventory value have disappeared, the amount of the write-down will be restored and reversed within the amount of the inventory depreciation provision that was originally accrued, and the reversed amount will be included in the current profit and loss.

Amortization method of turnover materials

(1) Amortization method for low-value consumables: The one-time write-off method is adopted when they are collected.

(2) Amortization method of packaging: The one-time write-off method is adopted when receiving the goods.

(11) Contract assets and contract liabilities

The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between performance obligations and customer payments. Consideration that the Company has a right to receive for transferring goods or providing services to a customer (and that right is dependent on factors other than the passage of time) is shown as a contract asset. The Company's obligations to transfer goods or provide services to customers for consideration received or receivable from customers are listed as contract liabilities.

Please refer to (IX) Financial Instruments for details of the Company’s determination method and accounting treatment method of expected credit losses on contract assets.

Contract assets and contract liabilities are presented separately in the balance sheet. Contract assets and contract liabilities under the same contract are listed in a net amount. If the net amount is a debit balance, it is listed in the "contract assets" or "other non-current assets" item according to its liquidity; if the net amount is a credit balance, it is listed in the "contract liabilities" or "other non-current liabilities" item based on its liquidity. Contract assets and contract liabilities under different contracts cannot be offset against each other.

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(12) Contract costs

Contract costs are divided into contract performance costs and contract acquisition costs.

The costs incurred by the company to perform the contract are recognized as an asset as contract performance costs when the following conditions are met at the same time:

The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing overhead (or similar expenses), costs clearly borne by the customer, and other costs incurred solely because of the contract.
This cost increases the company's resources for fulfilling its performance obligations in the future.
The cost is expected to be recovered.

The incremental costs incurred by the Company to obtain the contract are expected to be recovered and are recognized as an asset as the contract acquisition cost.

Assets related to contract costs are amortized on the same basis as the revenue recognition of goods or services related to the assets; however, if the amortization period of the contract acquisition costs does not exceed one year, the company will include them in the current profits and losses when incurred.

If the book value of assets related to contract costs is higher than the difference between the following two items, the company will make impairment provisions for the excess and recognize it as asset impairment losses, and further consider whether it should accrue estimated liabilities related to loss-making contracts:

The remaining consideration expected to be obtained from the transfer of goods or services related to the asset;
Estimate the costs that will be incurred to transfer the relevant goods or services.

If the above-mentioned asset impairment provision is subsequently reversed, the book value of the asset after the reversal shall not exceed the book value of the asset on the date of reversal if no impairment provision was made.

For contract performance costs recognized as assets, if the amortization period does not exceed one year or one normal operating cycle when initially recognized, they are listed in the "inventory" item. When initially recognized, the amortization period exceeds one year or one normal operating cycle and are listed in the "other non-current assets" item.

For contract acquisition costs recognized as assets, the amortization period upon initial recognition shall not exceed one year or one normal operating cycle, and shall be listed in the "other current assets" item. Upon initial recognition, the amortization period shall exceed one year or one normal operating cycle.

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The normal operating cycle of the prospectus of China Electronics Cosi Technology Co., Ltd. is listed in the "other non-current assets" item.

(13) Investment real estate

Classification of investment real estate

An investment property is real estate held to earn rentals or for capital appreciation, or both. Mainly include:

(1) Land use rights that have been leased.

(2) Land use rights held and prepared to be transferred after appreciation.

(3) Leasing buildings.

Measurement model of investment real estate

The Company adopts the cost model for subsequent measurement of investment real estate. Please refer to the method for accruing asset impairment.

(16) Impairment of long-term assets.

The company calculates depreciation or amortization based on the straight-line method after deducting accumulated impairment and net residual value from the cost of investment real estate. The depreciation period and annual depreciation rate are determined based on the category of investment real estate, the estimated economic useful life and the estimated net residual value rate as follows:

Category Depreciation method Depreciation period (years) Residual value rate (%) Annual depreciation rate (%) Houses and buildings Average life method 15-40 5.00 2.38-6.33 Land use rights Average life method 40.00 - 2.50

(14) Fixed assets

Fixed assets refer to tangible assets with a high unit value that are held for the purpose of producing goods, providing labor services, renting or operating management, with a service life of more than one year.

Confirm conditions

When fixed assets meet the following conditions at the same time, they shall be recognized at the actual cost when acquired:

(1) The economic benefits related to the fixed asset are likely to flow into the enterprise.

(2) The cost of the fixed asset can be measured reliably.

Subsequent expenditures incurred on fixed assets that meet the fixed asset recognition conditions are included in the cost of the fixed assets; those that do not meet the fixed asset recognition conditions are included in the current profit and loss when incurred.

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Depreciation methods for various types of fixed assets

The company accrues depreciation based on the straight-line method from the month after the fixed assets reach their intended usable condition. The depreciation life and annual depreciation rate are determined based on the category of fixed assets, estimated economic useful life and estimated net residual value rate as follows:

Category Depreciation method Depreciation life (years) Salvage value rate (%) Annual depreciation rate (%) Houses and buildings Average annual method 5-40 5.00 2.38-19.00 Machinery and equipment Average method 5-10 5.00 9.50-19.00 Electronic equipment Average method 5.00 5.00 19.00 Transportation equipment Average method 5.00 5.00 19.00Office and other years average method 5.00 5.00 19.00

For fixed assets that have been provided for impairment, the provision for impairment of fixed assets will be deducted when calculating depreciation.

At the end of each year, the company reviews the useful life, estimated net residual value and depreciation method of fixed assets. If the estimated service life is different from the original estimate, the service life of the fixed assets shall be adjusted.

(15) Intangible assets

Valuation method of intangible assets

Recorded at actual cost when acquired.

Useful life and amortization of intangible assets

(1) Estimation of service life of intangible assets with limited service life:

Item Estimated service life Basis

Land use rights 30 years to 50 years Legal use rights

Computer software 10 years Determine the service life with reference to the period that can bring economic benefits to the company

Patented technology 10 years. The service life is determined by referring to the period that can bring economic benefits to the company.

At the end of each year, the company reviews the service life and amortization method of intangible assets with limited service life. After review, the useful life and amortization method of the intangible assets at the end of the current period are no different from previous estimates.

(2) If the period during which an intangible asset can bring economic benefits to the enterprise cannot be foreseen, it shall be regarded as an intangible asset with an indefinite useful life. For intangible assets with indefinite useful lives, the company will review the useful lives of intangible assets with uncertain useful lives at the end of each year. If the useful lives of intangible assets with uncertain useful lives are still uncertain after re-examination, the assets will be

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China Electronics Cosi Instrument Technology Co., Ltd. conducts impairment testing on the balance sheet date of the prospectus.

(3) Amortization of intangible assets

For intangible assets with limited service life, the company determines its service life when it acquires it, and uses the straight-line method to rationally amortize it within the service life. The amortization amount is included in the current profit and loss according to the benefit items or included in the cost of related assets. The specific amount that should be amortized is the amount after deducting the estimated residual value from the cost. For intangible assets for which impairment provisions have been made, the cumulative amount of impairment provisions for intangible assets that have been made shall be deducted. The residual value of an intangible asset with a limited useful life is deemed to be zero, except in the following circumstances: a third party has committed to purchase the intangible asset at the end of its useful life or the estimated residual value information can be obtained based on an active market, and the market is likely to exist at the end of the intangible asset's useful life.

Intangible assets with indefinite useful lives are not amortized. The service life of intangible assets with indefinite service life is reviewed at the end of each year. If there is evidence that the service life of the intangible asset is limited, its service life is estimated and amortized systematically and reasonably within the expected service life.

Scope of R&D expenditure collection

The company classifies various expenses directly related to the development of R&D activities as R&D expenditures, including employee salaries of R&D personnel, direct input material costs, depreciation expenses, entrusted external research and development expenses, testing and laboratory processing fees, and other expenses, etc.

Divide specific standards for the research stage and development stage of internal research and development projects

(1) The company will treat the information and related preparation activities for further development activities as the research stage. Expenditures in the research stage of intangible assets will be included in the current profit and loss when incurred.

(2) Development activities carried out after the company has completed the research phase are regarded as the development phase.

Specific conditions for capitalization of expenditures during the development phase

Expenditures in the development stage can be recognized as intangible assets only when they meet the following conditions:

(1) It is technically feasible to complete the intangible asset so that it can be used or sold;

(2) Have the intention to complete the intangible asset and use or sell it;

(3) The way intangible assets generate economic benefits includes being able to prove that there is a market for the products produced using the intangible assets or that the intangible assets themselves have a market. If the intangible assets will be used internally, it can be proven that they are

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usefulness;

(4) Have sufficient technical, financial and other resource support to complete the development of the intangible assets, and have the ability to use or sell the intangible assets;

(5) Expenditures attributable to the development stage of the intangible asset can be measured reliably.

(16) Impairment of long-term assets

The asset impairment of long-term equity investments in subsidiaries, associates and joint ventures, investment real estate, fixed assets, construction in progress, right-of-use assets, intangible assets, goodwill, etc. that are subsequently measured using the cost model (except inventories, investment real estate measured using the fair value model, deferred income tax assets, and financial assets) is determined according to the following method:

On the balance sheet date, it is judged whether there are any signs that the asset may be impaired. If there are signs of impairment, the company will estimate its recoverable amount and conduct an impairment test. Goodwill formed due to business mergers, intangible assets with indefinite useful lives and intangible assets that have not yet reached a usable state are subject to impairment testing every year regardless of whether there are signs of impairment.

The recoverable amount is determined based on the higher of the asset's fair value less disposal costs and the present value of the asset's expected future cash flows. The Company estimates the recoverable amount on the basis of a single asset; if it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs is determined based on the asset group. The identification of an asset group is based on whether the main cash inflow generated by the asset group is independent of the cash inflows of other assets or asset groups.

When the recoverable amount of an asset or asset group is lower than its book value, the company will write down its book value to the recoverable amount, and the amount of the write-down will be included in the current profit and loss, and the corresponding asset impairment provision will be made.

As far as the impairment test of goodwill is concerned, the book value of goodwill formed due to a business combination shall be allocated to the relevant asset groups in a reasonable manner from the date of purchase; if it is difficult to allocate it to the relevant asset groups, it shall be allocated to the relevant asset group combinations. The relevant asset group or asset group combination is an asset group or asset group combination that can benefit from the synergistic effects of the business combination, and is no larger than the reporting segment determined by the company.

During impairment testing, if there are signs of impairment in an asset group or combination of asset groups related to goodwill, first conduct an impairment test on the asset group or combination of asset groups that does not include goodwill, calculate the recoverable amount, and recognize the corresponding impairment loss. Then conduct an impairment test on the asset group or asset group combination containing goodwill and compare its

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The book value and recoverable amount in the prospectus of China Electronics Cosi Instrument Technology Co., Ltd. If the recoverable amount is lower than the book value, the impairment loss of goodwill will be recognized.

Once the asset impairment loss is recognized, it will not be reversed in subsequent accounting periods.

(17) Employee compensation

Employee compensation refers to various forms of remuneration or compensation given by the company to obtain services provided by employees or to terminate labor relations. Employee compensation includes short-term compensation, post-employment benefits, termination benefits and other long-term employee benefits. The benefits provided by the company to employees' spouses, children, dependents, survivors of deceased employees and other beneficiaries are also employee benefits.

Based on liquidity, employee benefits are listed in the "Employee Benefits Payable" item and the "Long-Term Employee Benefits Payable" item on the balance sheet respectively.

Accounting treatment method for short-term compensation

(1) Basic salary of employees (wages, bonuses, allowances, subsidies)

During the accounting period when employees provide services to them, the Company recognizes actual short-term remuneration as a liability and includes it in the current profit and loss, unless other accounting standards require or allow it to be included in the cost of assets.

(2) Employee welfare fees

The employee welfare expenses incurred by the company are included in the current profit and loss or related asset costs according to the actual amount when they are actually incurred. If employee benefits are non-monetary benefits, they are measured at fair value.

(3) Medical insurance premiums, work-related injury insurance premiums, maternity insurance premiums and other social insurance premiums and housing provident funds, as well as trade union funds and employee education funds

The company pays medical insurance premiums, work-related injury insurance premiums and other social insurance premiums and housing provident funds for its employees, as well as labor union funds and employee education funds withdrawn in accordance with regulations. During the accounting period when employees provide services to them, the corresponding employee compensation amount is calculated and determined based on the prescribed accrual basis and accrual ratio, and the corresponding liabilities are recognized and included in the current profit and loss or related asset costs.

(4) Short-term paid absence from work

When employees provide services that increase their future paid absence rights, the company recognizes employee benefits related to accumulated paid absences and measures them based on the expected increase in payment amount due to accumulated unexercised rights. The Company recognizes employee benefits related to non-cumulative paid absences during the accounting period in which employees are actually absent.

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China Electronics Cosi Technology Co., Ltd. Prospectus (5) Short-term Profit Sharing Plan

If the profit sharing plan meets the following conditions at the same time, the company will confirm the relevant employee remuneration payable: ① The enterprise now has a legal obligation or constructive obligation to pay employee remuneration due to past events; ② The amount of the employee remuneration payable obligation arising from the profit sharing plan can be reliably estimated.

Accounting treatment of post-employment benefits

(1) Set up a withdrawal plan

During the accounting period when employees provide services to them, the company recognizes the deposit amount payable calculated according to the defined contribution plan as a liability and includes it in the current profit and loss or related asset costs.

According to the defined contribution plan, if the entire amount of deposits payable is not expected to be paid within twelve months after the end of the annual reporting period in which employees provide relevant services, the company shall refer to the corresponding discount rate (determined based on the market rate of return of treasury bonds or high-quality corporate bonds in the active market that match the obligation period and currency of the defined contribution plan on the balance sheet date), and measure the entire amount of deposits payable at the discounted amount. (2) Defined benefit plan

① Determine the present value of defined benefit plan obligations and current service costs

According to the expected cumulative benefit unit method, unbiased and mutually consistent actuarial assumptions are used to estimate relevant demographic variables and financial variables, measure the obligations arising from the defined benefit plan, and determine the vesting period of the relevant obligations. The Company discounts the obligations arising from the defined benefit plan at the corresponding discount rate (determined based on the market yield of treasury bonds or high-quality corporate bonds in the active market that match the obligation term and currency of the defined benefit plan on the balance sheet date) to determine the present value of the defined benefit plan obligations and the current service cost.

② Confirm the net liabilities or net assets of the defined benefit plan

If there are assets in the defined benefit plan, the company will recognize the deficit or surplus formed by the present value of the defined benefit plan obligations minus the fair value of the defined benefit plan assets as the net liability or net assets of a defined benefit plan.

If there is a surplus in the defined benefit plan, the company shall measure the net assets of the defined benefit plan at the lower of the surplus of the defined benefit plan and the upper asset limit.

③ Determine the amount that should be included in the asset cost or current profit and loss

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China Electronics Cosi Technology Co., Ltd. prospectus service costs include current service costs, past service costs and settlement gains or losses. Among them, except for current service costs that are required or allowed to be included in asset costs by other accounting standards, other service costs are included in current profits and losses.

The net interest on the net liabilities or net assets of a defined benefit plan, including interest income on plan assets, interest expenses on defined benefit plan obligations, and interest affected by the asset ceiling, are all included in the current profit and loss.

④ Determine the amount that should be included in other comprehensive income

Changes resulting from remeasurement of the net liabilities or net assets of the defined benefit plan include:

A. Actuarial gain or loss, that is, the increase or decrease in the present value of the previously measured defined benefit plan obligations due to actuarial assumptions and experience adjustments;

B. Return on plan assets, minus the amount included in the net interest on the net liabilities or net assets of the defined benefit plan;

C. Changes affected by the asset ceiling, deduct the amount included in the net interest on the net liabilities or net assets of the defined benefit plan.

The changes resulting from the above-mentioned remeasurement of the net liabilities or net assets of the defined benefit plan are directly included in other comprehensive income, and are not allowed to be transferred back to profit and loss in subsequent accounting periods. When the original defined benefit plan is terminated, the company will carry forward all the parts originally included in other comprehensive income to undistributed profits within the scope of equity.

Accounting treatment method for dismissal benefits

If the company provides dismissal benefits to employees, the employee compensation liabilities arising from the dismissal benefits will be recognized at the earliest of the following two times, and included in the current profit and loss:

(1) The enterprise cannot unilaterally withdraw the dismissal benefits provided due to the labor relationship termination plan or layoff proposal;

(2) When the enterprise recognizes costs or expenses related to restructuring involving payment of termination benefits.

If the dismissal benefit is not expected to be fully paid within twelve months after the end of the annual reporting period, the dismissal benefit amount will be discounted with reference to the corresponding discount rate (determined based on the market yield of treasury bonds or high-quality corporate bonds in the active market that match the obligation period and currency of the defined benefit plan on the balance sheet date), and the employee benefits payable will be measured at the discounted amount.

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Accounting treatment methods for other long-term employee benefits

(1) Meet the conditions for a defined contribution plan

If the company provides other long-term employee benefits to employees that meet the conditions of the defined contribution plan, the entire payable deposit amount will be measured as the discounted amount of employee benefits payable.

(2) Those who meet the conditions for a defined benefit plan

At the end of the reporting period, the company recognizes employee compensation costs arising from other long-term employee benefits as the following components:

①Service cost;

②Net interest on other long-term employee welfare net liabilities or net assets;

③ Changes caused by re-measurement of other long-term employee benefit net liabilities or net assets.

In order to simplify the relevant accounting treatment, the total net amount of the above items is included in the current profit and loss or related asset costs.

(18) Estimated liabilities

Recognition standards for estimated liabilities

If the obligation related to a contingency meets the following conditions at the same time, the company will recognize it as an estimated liability: (1) The obligation is a current obligation assumed by the company;

(2) The performance of this obligation is likely to result in the outflow of economic benefits from the company;

(3) The amount of the obligation can be measured reliably.

Measurement method of estimated liabilities

Estimated liabilities are initially measured based on the best estimate of the expenditure required to fulfill the relevant current obligations, and factors such as risks, uncertainties, and time value of money related to contingencies are comprehensively considered. The book value of estimated liabilities is reviewed on each balance sheet date. If there is conclusive evidence that the book value cannot reflect the current best estimate, the book value will be adjusted based on the current best estimate.

(19) Share-based payment

Types of share-based payment

The Company's share-based payment includes cash-settled share-based payment and equity-settled share-based payment.

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Determination method of fair value of equity instruments

(1) For shares granted to employees, their fair value is measured based on the market price of the company's shares, and adjusted by taking into account the terms and conditions on which the shares are granted (excluding vesting conditions other than market conditions).

(2) For stock options granted to employees, it is difficult to obtain the market price in many cases. If no trading options exist with similar terms and conditions, the Company selects an applicable option pricing model to estimate the fair value of the options granted.

Basis for confirming the best estimate of exercisable equity instruments

On each balance sheet date during the waiting period, the company makes its best estimate based on the latest changes in the number of vested employees and other subsequent information, and corrects the number of equity instruments expected to be vested to make the best estimate of the vested equity instruments.

Accounting treatment for the implementation of share-based payment plans

cash-settled share-based payment

(1) For cash-settled share-based payments that become exercisable immediately after grant, the fair value of the liability assumed by the company on the grant date will be included in the relevant costs or expenses, and the liability will increase accordingly. The fair value of the liability is remeasured on each balance sheet date and settlement date before settlement, and the changes are included in profit and loss.

(2) For cash-settled share-based payments that are exercisable after completing the services within the waiting period or meeting specified performance conditions, on each balance sheet date during the waiting period, based on the best estimate of the vesting situation and the fair value of the liability borne by the company, the services obtained in the current period will be included in costs or expenses and the corresponding liabilities.

Equity-settled share-based payment

(1) Equity-settled share-based payments that become exercisable immediately after grant in exchange for employee services will be included in the relevant costs or expenses at the fair value of the equity instrument on the date of grant, and the capital reserve will be increased accordingly.

(2) For equity-settled share-based payments that are exercisable in exchange for employee services after completing services within the waiting period or meeting specified performance conditions, on each balance sheet date during the waiting period, based on the best estimate of the number of exercisable equity instruments and the fair value of the equity instrument grant date, the services obtained in the current period are included in costs or expenses and capital reserves.

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Accounting treatment for modifications to share-based payment plans

When the company modifies the share-based payment plan, if the modification increases the fair value of the equity instruments granted, the increase in services obtained shall be recognized accordingly according to the increase in the fair value of the equity instruments; if the modification increases the number of equity instruments granted, the fair value of the increased equity instruments shall be recognized accordingly as an increase in services obtained. The increase in the fair value of equity instruments refers to the difference between the fair values of the equity instruments before and after the modification on the modification date. If the modification reduces the total fair value of the share-based payment or modifies the terms and conditions of the share-based payment plan in other ways that are unfavorable to employees, the accounting treatment for the services obtained will continue, as if the change has never occurred, unless the company cancels some or all of the equity instruments that have been granted.

Accounting treatment for termination of share-based payment plan

If the granted equity instruments are canceled or settled during the waiting period (except those canceled due to failure to meet vesting conditions), the company:

(1) Treat cancellation or settlement as accelerated vesting, and immediately confirm the amount that should have been confirmed within the remaining waiting period;

(2) All payments to employees upon cancellation or settlement are treated as repurchases of equity. The amount paid for repurchase that is higher than the fair value of the equity instrument on the repurchase date shall be included in the current expenses.

If the company repurchases an equity instrument that has been exercised by its employees, it will offset the owner's equity of the enterprise; the part of the repurchase payment that is higher than the fair value of the equity instrument on the repurchase date shall be included in the current profit and loss.

(20) Revenue recognition principles and measurement methods

General principles

Income is the total inflow of economic benefits generated by the company in its daily activities that will lead to an increase in shareholders' equity and have nothing to do with the capital invested by shareholders.

The company fulfills its performance obligations in the contract, that is, when the customer obtains control of the relevant goods, revenue is recognized. Obtaining control over relevant goods means being able to direct the use of the goods and obtain almost all economic benefits from them.

If the contract contains two or more performance obligations, the Company will allocate the transaction price to each individual performance obligation based on the relative proportion of the stand-alone selling price of the goods or services promised by each individual performance obligation on the contract commencement date, and measure revenue based on the transaction price allocated to each individual performance obligation.

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The transaction price is the amount of consideration that the Company expects to be entitled to receive for transferring goods or services to the customer, excluding payments received on behalf of third parties. When determining the contract transaction price, if there is variable consideration, the company determines the best estimate of the variable consideration based on the expected value or the most likely amount, and includes it in the transaction price at an amount that does not exceed the amount that is unlikely to significantly reverse the cumulative recognized revenue when the relevant uncertainty is eliminated. If there is a significant financing component in the contract, the company will determine the transaction price based on the amount payable in cash by the customer when it obtains control of the product. The difference between the transaction price and the contract consideration will be amortized using the effective interest method during the contract period. If the interval between the transfer of control and the customer's payment does not exceed one year, the company will not consider the financing component.

If one of the following conditions is met, the performance obligation is performed within a certain period of time; otherwise, the performance obligation is performed at a certain point in time:

(1) The customer obtains and consumes the economic benefits brought by the company's performance of the contract while the company performs the contract; (2) The customer can control the goods under construction during the company's performance of the contract;

(3) The goods produced by the company during the performance of the contract have irreplaceable uses, and the company has the right to collect payment for the cumulative performance part that has been completed so far during the entire contract period.

For performance obligations performed within a certain period of time, the Company will recognize revenue based on the performance progress during that period, except where the performance progress cannot be reasonably determined. The Company determines the performance progress of services provided according to the input method (or output method). When the progress of contract performance cannot be reasonably determined, if the costs incurred by the company are expected to be compensated, revenue will be recognized based on the amount of costs incurred until the progress of contract performance can be reasonably determined.

For performance obligations fulfilled at a certain point in time, the Company recognizes revenue at the point when the customer obtains control of the relevant goods. When judging whether the customer has obtained control of the goods or services, the company will consider the following signs:

(1) The company has the current right to receive payment for the goods or services, that is, the customer has current payment obligations for the goods;

(2) The company has transferred the legal ownership of the product to the customer, which means the customer already has the legal ownership of the product;

(3) The company has transferred the physical goods of the goods to the customer, that is, the customer has physically taken possession of the goods; (4) The company has transferred the main risks and rewards of ownership of the goods to the customer, that is, the customer has

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The main risks and rewards of obtaining ownership of the commodity;

(5) The customer has accepted the product.

①Sales Return Terms

For sales with a sales return clause, when the customer obtains control of the relevant goods, the company recognizes revenue based on the amount of consideration that the customer is entitled to receive for transferring the goods to the customer, and recognizes the amount expected to be refunded due to sales returns as estimated liabilities; at the same time, the book value of the goods that are expected to be returned at the time of transfer, after deducting the estimated costs of recovering the goods (including the value impairment of the returned goods), is recognized as an asset, that is, the cost of returns receivable. The book value of the transferred goods at the time of transfer, minus the net carry-over cost of the above-mentioned asset costs. On each balance sheet date, the company re-estimates future sales returns and re-measures the above assets and liabilities.

②Warranty obligations

In accordance with contract stipulations, legal regulations, etc., the company provides quality assurance for the products sold and the projects constructed. For guarantee-type quality assurance that is used to ensure that the goods sold meet established standards to customers, the Company conducts accounting treatment in accordance with "Accounting Standards for Business Enterprises No. 13 - Contingencies". For service-type quality assurance that provides a separate service to customers in addition to ensuring that the goods sold meet established standards, the company treats it as a single performance obligation and allocates part of the transaction price to the service-type quality assurance based on the relative proportion of the separate selling price of the goods and service-type quality assurance provided, and recognizes revenue when the customer obtains control of the service. When assessing whether a quality guarantee provides a separate service to customers beyond the assurance that the goods sold meet established standards, the Company considers factors such as whether the quality guarantee is a statutory requirement, the duration of the quality guarantee and the nature of the tasks to which the Company undertakes to perform.

③Main Responsible Person and Agent

The Company determines whether the Company is the principal or agent when engaging in transactions based on whether it has control over the goods or services before transferring them to the customer. If the company is able to control the goods or services before transferring them to the customer, the company is the primary responsible person and recognizes revenue based on the total amount of consideration received or receivable. Otherwise, the company acts as an agent and recognizes revenue based on the amount of commissions or fees that it is expected to be entitled to receive. This amount should be determined based on the net amount of the total consideration received or receivable after deducting the price payable to other related parties, or based on the established commission amount or ratio.

④Consideration payable to customers

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If there is consideration payable to customers in the contract, unless the consideration is for obtaining other clearly distinguishable goods or services from customers, the company will offset the consideration payable from the transaction price, and offset the current revenue at the later of the recognition of relevant income and the payment (or commitment to pay) of the customer consideration.

⑤Customer’s unexercised contractual rights

If the company receives payment in advance from customers for the sale of goods or services, it will first recognize the payment as a liability and then convert it into revenue when the relevant performance obligations are fulfilled. When the Company's advance receipt does not need to be returned and the customer may give up all or part of its contractual rights, and the Company expects to be entitled to the amount related to the contractual rights given up by the customer, the above amount will be recognized as revenue in proportion according to the customer's mode of exercising the contract rights; otherwise, the Company will only convert the relevant balance of the above liabilities into revenue when the possibility of the customer's request to perform the remaining performance obligations is extremely low.

Specific methods

The specific method of revenue recognition of the Company is as follows:

The types of contracts signed between the company and its customers are mainly divided into product sales and entrusted research and development. Product sales contracts include the transfer of complete machines and components, delivery of customized test systems and other performance obligations, which are performance obligations at a certain point in time; entrusted research and development contracts include the delivery of development prototypes of new or modified products and a full set of technical achievement documents, which are performance obligations at a certain point in time.

Classification Specific method of revenue recognition

Standardization: The complete machine or components are delivered to the customer in accordance with the contract and the customer has accepted the product. Revenue is recognized after obtaining the product receipt signed by the customer.

Component customization: Deliver customized products to customers according to the contract, and after customer acceptance, obtain

Product Revenue is recognized after the product acceptance report signed by the customer

Domestic sales

According to the contract, the customized test system is delivered to the customer, debugging is completed and the system is tested by the customer.

After the acceptance is qualified, the income will be confirmed after obtaining the project acceptance report signed by the customer.

Complete the development content of the entrusting party according to the contract, submit the developed products and technical results, and entrust the development

Income will be recognized after the client has passed the acceptance of the research and development project.

After the company's products have completed customs declaration procedures, the shipped products have left the export port and are produced and exported as complete machines and components.

Revenue is recognized when product control has been transferred to the customer

(21) Government subsidies

Confirmation of government subsidies

Government subsidies can only be confirmed if they meet the following conditions at the same time:

(1) The company can meet the conditions attached to the government subsidy;

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China Electronics Cosi Technology Co., Ltd. Prospectus (2) The company can receive government subsidies.

Measurement of government subsidies

If government subsidies are monetary assets, they shall be measured based on the amount received or receivable. If the government subsidy is a non-monetary asset, it shall be measured at fair value; if the fair value cannot be obtained reliably, it shall be measured at the nominal amount of 1 yuan.

Accounting treatment of government subsidies

(1) Government subsidies related to assets

Government subsidies obtained by the company for the purchase, construction or other formation of long-term assets are classified as asset-related government subsidies. Government subsidies related to assets are recognized as deferred income and are included in profits and losses in installments according to a reasonable and systematic method during the use period of the relevant assets. Government subsidies measured according to the nominal amount are directly included in the current profit and loss. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the undistributed balance of relevant deferred income will be transferred to the profit and loss of the current period of asset disposal.

(2) Government subsidies related to income

Government subsidies other than asset-related government subsidies are classified as income-related government subsidies. Government subsidies related to income shall be accounted for in accordance with the following provisions on a case-by-case basis:

If it is used to compensate the company for relevant costs or losses in subsequent periods, it will be recognized as deferred income, and will be included in the current profit and loss during the period when the relevant costs or losses are recognized;

If it is used to compensate for the relevant costs or losses incurred by the company, it will be directly included in the current profit and loss.

For government subsidies that contain both asset-related parts and income-related parts, different parts shall be distinguished and accounted for separately; if it is difficult to distinguish, the whole shall be classified as income-related government subsidies.

Government subsidies related to the company's daily activities are included in other income based on the economic and business essence. Government subsidies that are not related to the company's daily activities are included in non-operating income and expenses.

(3) Policy preferential loan interest discounts

The finance department will allocate interest discount funds to the lending bank, and the lending bank will provide loans to the company at a policy preferential interest rate. The actual loan amount received will be used as the entry value of the loan, and the relevant borrowing costs will be calculated based on the loan principal and the policy preferential interest rate. The finance department will directly allocate interest discount funds to the company, and the company will

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The interest discount stated in the prospectus of China Electronics Cosi Instruments Technology Co., Ltd. is used to offset related borrowing costs.

(4) Government subsidy refund

When a confirmed government subsidy needs to be returned, if the book value of the relevant assets is offset at the time of initial recognition, the book value of the assets is adjusted; if there is a balance of relevant deferred income, the book balance of the relevant deferred income is offset, and the excess is included in the current profit and loss; in other cases, it is directly included in the current profit and loss.

(22) Deferred income tax assets and deferred income tax liabilities

The Company usually uses the balance sheet debt method to recognize and measure the impact of taxable temporary differences or deductible temporary differences on income tax as deferred income tax liabilities or deferred income tax assets based on the temporary differences between the book values and tax bases of assets and liabilities on the balance sheet date. The Company does not discount deferred income tax assets and deferred income tax liabilities.

Recognition of deferred income tax assets

For deductible temporary differences, deductible losses and tax credits that can be carried forward to future years, the impact on income tax is calculated based on the income tax rate during the expected reversal period, and the impact is recognized as deferred income tax assets, but only to the extent that the company is likely to obtain future taxable income that can be used to offset the deductible temporary differences, deductible losses and tax credits.

The impact of deductible temporary differences on income tax arising from the initial recognition of assets or liabilities in transactions or events with the following characteristics is not recognized as deferred income tax assets:

(1) The transaction is not a business combination;

(2) When the transaction occurs, it neither affects accounting profits nor taxable income (or deductible losses).

However, this exemption from the initial recognition of deferred income tax liabilities and deferred income tax assets does not apply to a single transaction that meets the above two conditions at the same time and whose initial recognition of assets and liabilities results in equal amounts of taxable temporary differences and deductible temporary differences. For the taxable temporary differences and deductible temporary differences arising from the initial recognition of assets and liabilities in this transaction, the company recognizes the corresponding deferred income tax liabilities and deferred income tax assets respectively when the transaction occurs.

If the company's deductible temporary differences related to investments in subsidiaries, associates and joint ventures meet the following two conditions at the same time, its impact on income tax will be recognized as deferred income tax assets: (1) The temporary differences are likely to be reversed in the foreseeable future;

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China Electronics Cosi Technology Co., Ltd. Prospectus (2) It is likely to obtain taxable income in the future that can be used to offset deductible temporary differences;

On the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be obtained in the future period to offset the deductible temporary differences, deferred income tax assets that have not been recognized in previous periods will be recognized.

On the balance sheet date, the Company reviews the book value of deferred income tax assets. If it is probable that sufficient taxable income will not be available in future periods to offset the benefits of deferred tax assets, the carrying amount of the deferred tax assets will be reduced. The amount of the write-down is reversed when it is probable that sufficient taxable income will be obtained.

Recognition of deferred income tax liabilities

All taxable temporary differences of the Company are measured to have an impact on income tax at the income tax rate expected to be reversed during the period, and the impact is recognized as deferred income tax liabilities, except for the following circumstances:

(1) The impact on income tax of taxable temporary differences arising from the following transactions or events is not recognized as deferred income tax liabilities:

①Initial recognition of goodwill;

② Initial recognition of assets or liabilities arising from transactions with the following characteristics: The transaction is not a business combination, and when the transaction occurs, it neither affects accounting profits nor taxable income or deductible losses. (2) The Company generally recognizes the taxable temporary differences related to investments in subsidiaries, joint ventures and associates, and their impact on income tax as deferred income tax liabilities, unless the following two conditions are met at the same time:

① The company can control the time when the temporary difference is reversed;

②The temporary difference is likely not to be reversed in the foreseeable future.

Recognition of deferred income tax liabilities or assets involved in specific transactions or events

(1) Deferred income tax liabilities or assets related to business combinations

For taxable temporary differences or deductible temporary differences arising from business combinations not under common control, while deferred income tax liabilities or deferred income tax assets are recognized, the related deferred income tax expenses (or income) are usually adjusted to the goodwill recognized in the business combination.

(2) Items directly included in owners’ equity

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Current income taxes and deferred income taxes related to transactions or events that are directly included in owners' equity are included in owners' equity. Transactions or events that have the impact of temporary differences on income tax included in owners' equity include: other comprehensive income resulting from changes in the fair value of other debt investments, changes in accounting policies that adopt the retrospective adjustment method or the correction of differences in previous (important) accounting errors, the retrospective restatement method to adjust opening retained earnings, mixed financial instruments that contain both liability components and equity components are included in owners' equity at the time of initial recognition, etc.

(3) Recoverable losses and tax credits

① The compensable losses and tax deductions generated by the company’s own operations

Deductible losses refer to losses calculated and determined in accordance with tax laws and allowed to be made up with taxable income in subsequent years. Uncovered losses (deductible losses) and tax credits that can be carried forward to future years in accordance with tax laws are treated as deductible temporary differences. When it is expected that sufficient taxable income will be obtained in the future period in which recoverable losses or tax credits can be utilized, the corresponding deferred income tax assets will be recognized to the extent of the taxable income that is likely to be obtained, and the income tax expense in the current period's income statement will be reduced at the same time. ② The uncompensated losses of the merged enterprise that can be compensated due to business mergers

In a business combination, if the company obtains deductible temporary differences from the purchased party and does not meet the conditions for recognition of deferred income tax assets on the acquisition date, it will not be recognized. Within 12 months after the purchase date, if new or further information is obtained indicating that the relevant circumstances on the purchase date already exist, and the economic benefits brought by the deductible temporary differences of the purchased party are expected to be realized on the purchase date, the relevant deferred income tax assets will be recognized, and the goodwill will be reduced at the same time. If the goodwill is insufficient to offset, the difference will be recognized as current profit and loss; except for the above circumstances, deferred income tax assets related to the business combination will be recognized and included in the current profit and loss.

(4) Temporary differences resulting from merger elimination

When the company prepares the consolidated financial statements, if there is a temporary difference between the book value of assets and liabilities in the consolidated balance sheet and the tax basis of the tax entity to which it belongs due to offsetting unrealized internal sales gains and losses, deferred income tax assets or deferred income tax liabilities will be recognized in the consolidated balance sheet, and the income tax expenses in the consolidated income statement will be adjusted at the same time, except for deferred income taxes related to transactions or events directly included in owner's equity and business mergers.

(5) Equity-settled share-based payment

If the tax law stipulates that expenses related to share-based payment are allowed to be deducted before tax, the amount shall be determined in accordance with the accounting standards.

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During the period when costs are recognized, the company calculates and determines the tax base and the resulting temporary differences based on the information obtained at the end of the accounting period to estimate the amount that can be deducted before tax. If the recognition conditions are met, the company recognizes the relevant deferred income tax. Among them, if the amount that is expected to be deducted before tax in the future exceeds the costs and expenses related to share-based payment recognized in accordance with accounting standards, the excess income tax impact should be directly included in the owner's equity. (6) Dividends related to financial instruments classified as equity instruments

For financial instruments classified as equity instruments by the company as the issuer, the relevant dividend payments are deducted before corporate income tax in accordance with the relevant provisions of tax policies. When the company recognizes the dividend payable, it recognizes the income tax impact related to the dividend. For the distributed profits derived from transactions or events that previously generated profits and losses, the income tax effects of the dividends are included in the current profits and losses; for the distributed profits derived from transactions or events previously recognized in owners' equity, the income tax effects of the dividends are included in the owners' equity items.

Basis for presenting deferred income tax assets and deferred income tax liabilities on a net basis

When the company meets the following conditions at the same time, the deferred income tax assets and deferred income tax liabilities will be presented as the net amount after offsetting:

(1) The company has the legal right to settle current income tax assets and current income tax liabilities on a net basis;

(2) Deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax collection and administration department on the same taxable entity or to different taxable entities. However, in each future period when important deferred income tax assets and deferred income tax liabilities are reversed, the taxable entity involved intends to settle the current income tax assets and liabilities on a net basis or to obtain assets and pay off liabilities at the same time.

(23) Leasing

Identification of lease

On the contract inception date, the Company evaluates whether the contract is a lease or contains a lease. If a party in the contract transfers the right to control the use of one or more identified assets for a certain period in exchange for consideration, the contract is a lease or contains a lease. In order to determine whether the contract transfers the right to control the use of the identified assets within a certain period, the Company evaluates whether the customer in the contract has the right to obtain substantially all the economic benefits generated from the use of the identified assets during the use period, and has the right to direct the use of the identified assets during the use period.

Identification of separate leases

If the contract contains multiple separate leases at the same time, the company will split the contract and separate each lease separately.

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China Electronics Cosi Technology Co., Ltd. Prospectus Lease is subject to accounting treatment. The right to use an identified asset constitutes a separate lease in the contract if the following conditions are met at the same time: (1) the lessee can profit from using the asset alone or using it together with other easily available resources; (2) the asset is not highly dependent or highly related to other assets in the contract.

The company’s accounting treatment method as a lessee

On the start date of the lease period, the Company identifies leases with a lease term of no more than 12 months and that do not include a purchase option as short-term leases; leases with a low value when a single leased asset is a new asset are identified as low-value asset leases. If the company subleases or anticipates subletting a leased asset, the original lease will not be recognized as a low-value asset lease.

For all short-term leases and low-value asset leases, the Company includes the lease payments into the relevant asset costs or current profits and losses on a straight-line basis during each period of the lease term.

In addition to the above-mentioned short-term leases and low-value asset leases that adopt simplified treatment, the company recognizes right-of-use assets and lease liabilities for leases on the start date of the lease period.

(1) Right-of-use assets

Right-of-use assets refer to the lessee’s right to use the leased assets during the lease term.

On the commencement date of the lease term, the right-of-use asset is initially measured at cost. This cost includes:

①The initial measurement amount of the lease liability;

② From the lease payment amount paid on or before the start date of the lease period, if there is a lease incentive, the amount related to the lease incentive that has been enjoyed will be deducted;

③Initial direct costs incurred by the lessee;

④ The costs that the lessee expects to incur to dismantle and remove the leased assets, restore the site where the leased assets are located, or restore the leased assets to the state agreed upon in the lease terms. The company recognizes and measures this cost in accordance with the recognition standards and measurement methods of estimated liabilities. For details, see (18) Estimated liabilities. The aforementioned costs incurred for the production of inventory will be included in the inventory cost.

Depreciation of right-of-use assets is calculated using the straight-line method. For those who can reasonably determine that the ownership of the leased asset will be obtained when the lease term expires, the depreciation rate will be determined based on the right-of-use asset category and the expected net residual value rate within the estimated remaining useful life of the leased asset; for those who cannot reasonably determine that the leased asset will be obtained when the lease term expires,

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For the prospectus of China Electronics Cosi Instrument Technology Co., Ltd., the depreciation rate shall be determined based on the right-of-use asset category during the shorter of the lease period and the remaining useful life of the leased asset.

The depreciation methods, depreciation years, and residual value rates of various right-of-use assets are as follows:

Category Depreciation method Depreciation life (years) Residual value rate (%) Houses and buildings Straight-line method Lease life ——

Machinery and equipment and others Straight-line method Lease life -

(2) Lease liabilities

Lease liabilities should be initially measured based on the present value of the unpaid lease payments at the beginning of the lease term. Lease payments include the following five items:

① Fixed payment amount and substantial fixed payment amount, if there is a lease incentive, the relevant amount of the lease incentive will be deducted; ② Variable lease payment amount that depends on the index or ratio;

③The exercise price of the purchase option, provided that the lessee is reasonably certain that it will exercise the option;

④ The amount required to be paid to exercise the option to terminate the lease, provided that the lease term reflects that the lessee will exercise the option to terminate the lease;

⑤ The amount expected to be paid based on the residual value of the guarantee provided by the lessee.

When calculating the present value of lease payments, the interest rate implicit in the lease is used as the discount rate. If the interest rate implicit in the lease cannot be determined, the company's incremental borrowing rate is used as the discount rate. The difference between the lease payment and its present value is regarded as an unrecognized financing expense, and the interest expense is recognized at the discount rate used to confirm the present value of the lease payment during each period of the lease term, and is included in the current profit and loss. Variable lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss when they actually occur.

After the start date of the lease period, when the actual fixed payment amount changes, the expected amount payable of the guaranteed residual value changes, the index or ratio used to determine the lease payment amount changes, the evaluation results or actual exercise of the purchase option, lease renewal option or termination option change, the company remeasures the lease liability according to the present value of the changed lease payment amount, and adjusts the book value of the right-of-use asset accordingly.

The company’s accounting treatment method as a lessor

On the lease commencement date, the Company classifies leases that substantially transfer almost all risks and rewards related to the ownership of the leased assets as finance leases, and other leases as operating leases.

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China Electronics Cosi Technology Co., Ltd. Prospectus (1) Operating lease

The company recognizes the lease receipts as rental income according to the straight-line method in each period during the lease period. The initial direct expenses incurred are capitalized and amortized on the same basis as the rental income recognition, and included in the current profit and loss in installments. Variable lease payments obtained by the Company related to operating leases that are not included in the lease receipts are included in the current profit and loss when they actually occur.

(2) Financial leasing

On the start date of the lease, the Company recognizes the financial lease receivables based on the net lease investment (the sum of the unguaranteed residual value and the present value of the lease receipts not yet received on the start date of the lease discounted at the interest rate implicit in the lease), and terminates the recognition of financial lease assets. During each period of the lease term, the Company calculates and recognizes interest income based on the interest rate implicit in the lease.

Variable lease payments obtained by the Company that are not included in the measurement of net lease investment are included in the current profit and loss when actually incurred.

Accounting treatment of lease changes

(1) Lease change as a separate lease

If a lease changes and the following conditions are met at the same time, the company will account for the lease change as a separate lease: ① The lease change expands the scope of the lease by adding the right to use one or more leased assets; ② The increased consideration is equivalent to the amount of the individual price of the expanded part of the lease scope adjusted according to the conditions of the contract.

(2) The lease change is not treated as a separate lease

①The company serves as the lessee

On the effective date of the lease change, the Company re-determines the lease term and uses the revised discount rate to discount the changed lease payments to re-measure the lease liability. When calculating the present value of lease payments after the change, the interest rate implicit in the lease during the remaining lease period is used as the discount rate; if the interest rate implicit in the lease during the remaining lease period cannot be determined, the incremental borrowing rate on the effective date of the lease change is used as the discount rate.

Regarding the impact of the above lease liability adjustment, accounting treatment is carried out according to the following situations:

A. If the lease change results in a reduction in the scope of the lease or a shortening of the lease period, the book value of the right-of-use asset will be reduced, and the related gains or losses from the partial or complete termination of the lease will be included in the current profit and loss;

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B. For other lease changes, the book value of the right-of-use assets will be adjusted accordingly.

②The company acts as the lessor

If an operating lease changes, the Company will account for it as a new lease from the effective date of the change, and the amount of lease receipts received in advance or receivable related to the lease before the change is regarded as the amount of receipts from the new lease.

If the change in the financial lease is not accounted for as a separate lease, the company will treat the changed lease under the following circumstances: If the lease change takes effect on the lease commencement date, the lease will be classified as an operating lease, and the company will treat it as an operating lease from the effective date of the lease change. New leases are accounted for, and the net lease investment before the effective date of the lease change is used as the book value of the leased asset; if the lease change takes effect on the lease start date, the lease will be classified as a finance lease, and the company will conduct accounting treatment in accordance with the regulations on modifying or renegotiating the contract.

After sale and leaseback

(1) The company serves as the seller (lessee)

If the asset transfer in a sale and leaseback transaction does not constitute a sale, the company will continue to recognize the transferred assets, and at the same time recognize a financial liability equal to the transfer income, and perform accounting treatment on the financial liability in accordance with (9) Financial Instruments. If the asset transfer is a sale, the company measures the right-of-use assets formed by the sale and leaseback based on the portion of the original asset's book value related to the right-of-use obtained through the leaseback, and only recognizes relevant gains or losses for the rights transferred to the lessor.

(2) The company serves as the buyer (lessor)

If the asset transfer in a sale and leaseback transaction is not a sale, the company does not recognize the transferred asset, but recognizes a financial asset equal to the transfer income, and performs accounting treatment on the financial asset in accordance with (9) Financial Instruments. If the asset transfer is a sale, the company will account for the asset purchase and account for the asset leasing in accordance with other applicable business accounting standards.

(24) Important accounting judgments and estimates

The Company continuously evaluates the important accounting estimates and key assumptions adopted based on historical experience and other factors, including reasonable expectations for future events. The important accounting estimates and key assumptions that are likely to result in a significant adjustment in the book value of assets and liabilities in the next fiscal year are listed below:

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Classification of financial assets

The Company's significant judgments involved in determining the classification of financial assets include analysis of business models and contractual cash flow characteristics.

The Company determines the business model for managing financial assets at the level of financial asset portfolios. Factors considered include the way to evaluate and report the performance of financial assets to key management personnel, the risks that affect the performance of financial assets and their management methods, and the way in which relevant business managers are remunerated.

When the company evaluates whether the contractual cash flows of financial assets are consistent with basic lending arrangements, the company makes the following main judgments: whether the time distribution or amount of the principal may change during the duration due to early repayment and other reasons; whether interest only includes the time value of money, credit risk, other basic lending risks and consideration for costs and profits. For example, whether the amount of early repayment only reflects the unpaid principal and interest based on the unpaid principal, as well as reasonable compensation paid for early termination of the contract.

Measurement of expected credit losses on accounts receivable

The Company calculates the expected credit losses of accounts receivable through the default risk exposure of accounts receivable and the expected credit loss rate, and determines the expected credit loss rate based on the probability of default and the loss given default rate. When determining the expected credit loss rate, the company uses internal historical credit loss experience and other data, and adjusts historical data based on current conditions and forward-looking information. When considering forward-looking information, the Company uses indicators including the risk of economic downturn, changes in the external market environment, technological environment and customer conditions. The Company regularly monitors and reviews assumptions related to the calculation of expected credit losses.

Deferred income tax assets

Deferred tax assets should be recognized for all unused tax losses to the extent that it is probable that sufficient taxable profits will be available against which the losses can be utilised. This requires management to use a lot of judgment to estimate the timing and amount of future taxable profits, combined with tax planning strategies, to determine the amount of deferred income tax assets that should be recognized.

(25) Changes in important accounting policies and accounting estimates

Changes in important accounting policies

(1) Implementation of "Interpretation No. 16 of Accounting Standards for Business Enterprises"

On November 30, 2022, the Ministry of Finance issued the "Interpretation No. 16 of Accounting Standards for Business Enterprises" (Finance and Accounting [2022] 31

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No. 16 (hereinafter referred to as Interpretation No. 16), of which "the accounting treatment regarding the inapplicability of the initial recognition exemption for deferred income taxes related to assets and liabilities arising from a single transaction" will be effective from January 1, 2023; the "accounting treatment regarding the income tax impact of dividends related to financial instruments classified as equity instruments by the issuer" and "the accounting treatment regarding the modification of an enterprise's cash-settled share-based payment to an equity-settled share-based payment" will be implemented from the date of promulgation. The relevant provisions of Implementation Interpretation No. 16 will have no significant impact on the company's financial statements during the reporting period.

(2) Implementation of "Interpretation No. 17 of Accounting Standards for Business Enterprises"

On October 25, 2023, the Ministry of Finance issued the "Interpretation No. 17 of Accounting Standards for Business Enterprises" (Cai Kuai [2023] No. 21, hereinafter referred to as Interpretation No. 17), which will be effective from January 1, 2024. The company will implement the regulations of Interpretation No. 17 from January 1, 2024. The relevant provisions of Implementation Interpretation No. 17 have no significant impact on the company's financial statements during the reporting period.

(3) Reclassification of warranty fees

The "Compilation of Guidelines for the Application of Accounting Standards for Business Enterprises 2024" issued by the Ministry of Finance in March 2024 and the "Interpretation of Accounting Standards for Business Enterprises No. 18" issued on December 6, 2024 stipulate that warranty fees should be included in operating costs. The implementation of this regulation will have no significant impact on the company's financial statements during the reporting period.

(4) Implementation of "Interpretation No. 19 of Accounting Standards for Business Enterprises"

On December 5, 2025, the Ministry of Finance issued the "Interpretation No. 19 of Accounting Standards for Business Enterprises" (Cai Kuai [2025] No. 32, hereinafter referred to as Interpretation No. 19), which will be effective from January 1, 2026. The company will implement the provisions of Interpretation No. 19 from January 1, 2026. The relevant provisions of Implementation Interpretation No. 19 have no significant impact on the company's financial statements during the reporting period.

Changes in important accounting estimates

During the reporting period, the Company had no significant changes in accounting estimates.

6. Branch information

The company does not have multiple operating segments with different economic characteristics, and there is no need to divide reporting segments based on the internal organizational structure, management requirements, internal reporting systems, etc. Therefore, the Company does not need to disclose segment information reports based on operating segments.

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7. Non-recurring gains and losses

According to the provisions of the China Securities Regulatory Commission's "Explanatory Announcement No. 1 on Information Disclosure of Companies that Publicly Offer Securities - Non-recurring Gains and Losses (Revised in 2023)" and verified by the "Non-recurring Profit and Loss Assurance Report" (Rongcheng Zhuanzi [2026] 230Z0553) issued by Rongcheng Accountants, the specific content and amount of the company's non-recurring gains and losses during the reporting period are as follows:

Unit: 10,000 yuan

Item 2025 2024 Profit and loss from disposal of non-current assets in 2023, including accrued assets

24.82 306.68 43.14 Offset portion of impairment provision

Government subsidies included in current profits and losses, but not related to the company's normal

Business operations are closely related and comply with national policies and regulations,

12,741.69 2,141.67 4,024.59 Enjoy according to the determined standards and have a sustained impact on the company’s profits and losses

Except for government subsidies that will continue to affect

The impairment provision for accounts receivable that has been individually tested for impairment is transferred to

189.00 - return

Other non-operating income and expenses other than the above items -149.14 -2.43 2.90 Total non-recurring gains and losses 12,617.37 2,634.92 4,070.63 Less: Income tax impact of non-recurring gains and losses 1,929.23 407.40 617.75 Net non-recurring gains and losses 10,688.15 2,227.52 3,452.88

During the reporting period, non-recurring gains and losses were mainly government subsidies included in the current profits and losses. In each reporting period, the net non-recurring profits and losses attributable to shareholders of the parent company were 34.5288 million yuan, 22.2752 million yuan and 106.8815 million yuan respectively, accounting for 18.19%, 8.11% and 24.39% of the net profits attributable to shareholders of the parent company respectively. The company's non-recurring profits and losses in 2025 will be larger, mainly due to the higher amount of government subsidies included in the current profits and losses. Non-recurring gains and losses will not have a significant adverse impact on the company's operational stability and future sustained profitability.

8. Main taxes and tax incentives

(1) Main tax types and tax rates

Type of tax Tax calculation basis Tax rate

Value-added tax Added value of product sales 13%, 9%, 6%, 0%, 19% Urban maintenance and construction tax Turnover tax payable 7% Education fee surcharge Turnover tax payable 3% Local education surcharge Turnover tax payable 2% Corporate income tax Taxable income For details, see the table below. The corporate income tax rates of the issuer and its subsidiaries are as follows:

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Name of taxpayer 2025 2024 2023 Dianke Siyi 15% 15% 15% Siyi Technology (Anhui) 15% 15% 15% Deepsight Messtech GmbH (Siyi Technology (Germany)

31.925% 31.925% -Country))

Note: The corporate income tax rate of Siyi Technology (Germany) = 15% fixed rate corporate income tax + corporate income tax amount * 5.5% solidarity surcharge + taxable profit * 3.5% (federal base tax rate) * 460%, of which 460% is the tax rate in the location of Siyi Technology (Germany). The comprehensive income tax rate of Siyi Technology (Germany) is 31.925%.

(2) Tax incentives

Corporate income tax

The company obtained the "High-tech Enterprise Certificate" on December 14, 2022 and December 19, 2025 respectively, with certificate numbers GR202237102304 and GR202537101435 respectively. According to the provisions of the Enterprise Income Tax Law, the company has enjoyed the preferential tax policy of levying corporate income tax at a reduced rate of 15% for six consecutive years from 2022 to 2027.

The Company's subsidiary Anhui Siyi obtained the "High-tech Enterprise Certificate" on August 17, 2020 and November 30, 2023. The certificate numbers are GR202034000592 and GR202334005767 respectively. According to the provisions of the Corporate Income Tax Law, Anhui Siyi has enjoyed the preferential tax policy of reducing corporate income tax at a 15% rate for six consecutive years from 2020 to 2025.

According to the "Announcement of the Ministry of Finance and the State Administration of Taxation on Further Improving the Pre-tax Super Deduction Policy for R&D Expenses" (Announcement No. 13 of 2021 of the Ministry of Finance and the State Administration of Taxation), if the actual R&D expenses incurred by manufacturing enterprises in carrying out research and development activities do not form intangible assets and be included in the current profits and losses, on the basis of actual deductions in accordance with regulations, starting from January 1, 2021, 100% of the actual amount will be super-deducted before tax; if they form intangible assets, they will be deducted in accordance with the cost of the intangible assets. 200% amortization before tax. According to the "Announcement of the Ministry of Finance and the State Administration of Taxation on Further Improving the Pre-tax Super Deduction Policy for R&D Expenses" (Ministry of Finance and the State Administration of Taxation Announcement No. 7 of 2023), if the actual R&D expenses incurred by the enterprise in carrying out R&D activities do not form intangible assets and be included in the current profits and losses, on the basis of actual deductions in accordance with regulations, starting from January 1, 2023, 100% of the actual amount will be deducted before tax; if they form intangible assets, they will be deducted before tax from January 1, 2023. Starting from the 1st, the intangible assets will be amortized before tax at 200% of the cost. The company and its subsidiary Anhui Siyi have enjoyed the aforementioned tax benefits since 2022.

Value-added tax

According to the "Announcement of the Ministry of Finance and the State Administration of Taxation on the Policy for Additional Value-Added Tax Deductions for Advanced Manufacturing Enterprises" (Finance

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According to the provisions of the Ministry of Finance and State Administration of Taxation Announcement No. 43 of 2023), from January 1, 2023 to December 31, 2027, advanced manufacturing enterprises are allowed to deduct an additional 5% of the deductible input tax for the current period to deduct the value-added tax payable. The Company and its subsidiary Anhui Siyi enjoy the preferential tax policy of additional input tax deduction.

(3) The impact of tax incentives on operating results

Unit: 10,000 yuan

Project 2025 2024 2023

Preferential corporate income tax rate

1,312.07 262.43 - impact

Additional deduction for research and development expenses

5,918.72 4,612.92 3,662.28 Impact

Added value to advanced manufacturing companies

975.01 731.99 647.94 Impact of additional tax deduction

Total tax incentives 8,205.80 5,607.33 4,310.22 Total profits 44,831.44 26,762.92 18,230.90 Tax incentives account for total profits

18.30% 20.95% 23.64% ratio

During the reporting period, the company's tax preferential amounts accounted for 23.64%, 20.95% and 18.30% of total profits respectively. The tax preferential policies enjoyed by the company mainly include a 15% reduction in corporate income tax for high-tech enterprises, a super deduction for R&D expenses, a super deduction for value-added tax for advanced manufacturing enterprises, etc. The tax benefits do not have a significant impact on the company's operating results, and the company does not have any significant reliance on tax benefits.

9. Main financial indicators of the issuer

(1) Main financial indicators of the company during the reporting period

December 31, 2025 December 31, 2024 Main financial indicators as of December 31, 2023

/2025 /2024 /2023 Current ratio (times) 2.74 2.34 2.15 Quick ratio (times) 1.94 1.55 1.32 Asset-liability ratio (parent company) 37.16% 42.00% 43.77% Asset-liability ratio (consolidated) 38.53% 43.43% 45.37% per share attributable to shareholders of the parent company

3.12 2.58 2.37 Net assets (yuan)

R&D investment as a percentage of operating income

18.88% 22.35% 17.40% cases

Accounts receivable turnover rate (times) 3.14 3.17 5.29 Inventory turnover rate (times) 1.02 0.82 0.92 Profit before interest, taxes, depreciation and amortization (ten thousand

54,321.69 36,602.63 27,972.88 yuan)

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December 31, 2025 December 31, 2024 Main financial indicators as of December 31, 2023

/2025 /2024 /2023 Interest coverage ratio (times) 488.06 158.12 49.57 Net profit attributable to shareholders of the parent company (ten thousand

43,821.16 27,458.88 18,987.06 yuan)

Deduction of non-economic expenses attributable to shareholders of the parent company

33,133.01 25,231.36 15,534.18 Net profit after normal profit and loss (10,000 yuan)

Net cash flow from operating activities per share

0.61 0.28 0.14 (yuan/share)

Net cash flow per share (yuan/share) 0.52 0.03 -0.21 Note 1: Unless otherwise specified, the above financial indicators are calculated based on consolidated financial statement data. The relevant calculation formula is as follows:

Current ratio = ending current assets/ending current liabilities
Quick ratio = (ending current assets - ending inventory) / current liabilities
Asset-liability ratio = Total liabilities at the end of the period/Total assets at the end of the period
Net assets per share attributable to shareholders of the parent company = owners’ equity attributable to the parent company / total number of shares at the end of the period
The proportion of R&D investment in operating income = R&D expenses/operating income
Accounts receivable turnover rate = operating income/average balance of accounts receivable

Average balance of accounts receivable = (balance of accounts receivable at the beginning of the period + balance of accounts receivable at the end of the period)/2

Inventory turnover rate = operating cost/average inventory balance
Profit before interest, tax, depreciation and amortization = net profit + income tax + depreciation + amortization + interest expense
Interest coverage ratio = (profit before tax + interest expense) / interest expense
Net cash flow from operating activities per share = net cash flow generated from operating activities / total number of shares at the end of the period
Net cash flow per share = net increase in cash and cash equivalents/total number of shares at the end of the period

(2) The company’s return on net assets and earnings per share during the reporting period

During the reporting period, the company’s return on net assets and earnings per share were as follows:

Project 2025 2024 2023 Weighted average return on net assets 18.64% 13.20% 9.82% Basic earnings per share before non-recurring gains and losses (yuan/share) 0.53 0.33 0.23 Diluted earnings per share (yuan/share) 0.53 0.33 0.23 Weighted average return on net assets 14.09% 12.13% 8.03% Basic earnings per share after deducting non-recurring gains and losses (yuan/share) 0.40 0.31 0.19

Diluted earnings per share (yuan/share) 0.40 0.31 0.19

10. Profit forecast and report

The company has not prepared a profit forecast report.

11. Analysis of operating results

(1) Overview of business operations

During the reporting period, the company’s main operating results are as follows:

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Unit: 10,000 yuan

Item 2025 2024 2023 operating income 239,837.17 205,188.28 215,292.19 operating cost 126,012.56 103,858.72 129,145.81 operating profit 44,987.89 26,748.63 18,226.62Total profit 44,831.44 26,762.92 18,230.90Net profit 43,821.16 27,458.88 18,987.06Net profit attributable to shareholders of the parent company 43,821.16 27,458.88 18,987.06 After-tax non-recurring gains and losses attributable to shareholders of the parent company 10,688.15 2,227.52 3,452.88 Attributable to shareholders of the parent company after deducting non-recurring gains and losses

Net profit of 33,133.01 25,231.36 15,534.18

During the reporting period, the issuer's operating income was RMB 2,152.9219 million, RMB 2,051.8828 million and RMB 2,398.3717 million respectively, and the net profits attributable to shareholders of the parent company were RMB 189.8706 million, RMB 274.5888 million and RMB 438.2116 respectively. Ten thousand yuan, the net profits attributable to shareholders of the parent company after deducting non-recurring gains and losses were 155.3418 million yuan, 252.3136 million yuan and 331.3301 million yuan respectively.

During the reporting period, the company's operating income and net profit fluctuated slightly, but the overall operating situation was good.

(2) Operating income analysis

Analysis of the composition of operating income and its changes

During the reporting period, the company’s operating income composition is as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Proportion Amount Proportion Amount Proportion Main business

237,815.20 99.16% 204,098.84 99.47% 213,333.70 99.09%

income

Other business

2,021.98 0.84% 1,089.44 0.53% 1,958.49 0.91%Income

Total 239,837.17 100.00% 205,188.28 100.00% 215,292.19 100.00%

In each reporting period, the company's main business income was 2,133.337 million yuan, 2,040.9884 million yuan and 2,378.152 million yuan respectively, showing an overall upward trend.

During the reporting period, the company's main business income accounted for 99.09%, 99.47% and 99.16% of the current operating income respectively. The main business income accounted for a relatively high proportion and remained stable. The company's other business income mainly comes from outsourcing income, leasing fee income, etc., which account for a low proportion of operating income in the same period.

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Analysis of main business income by product

During the reporting period, the company’s main business revenue composition by product category is as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Total 237,815.20 100.00% 204,098.84 100.00% 213,333.70 100.00%

According to different product categories, the company's main products include complete machines, test systems, complete components and others. (1) Complete machine

①Complete machine-product sales

During the reporting period, the company's complete machine products maintained a good operating momentum, with revenue amounts of RMB 1,076,823,900, RMB 1,211,279,300, and RMB 1,206,670,500 respectively, accounting for 50.48%, 59.35%, and 50.74% of the current main business income respectively.

During the reporting period, the complete machine products were divided according to product type as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Percent Amount Percent Amount Percent Microwave/Millimeter Wave Measurement

99,602.10 82.54% 101,740.66 83.99% 90,679.25 84.21%Quantity instruments

Other measuring instruments 21,064.96 17.46% 19,387.27 16.01% 17,003.14 15.79%

Total 120,667.05 100.00% 121,127.93 100.00% 107,682.39 100.00%

In 2024, the company's complete machine product revenue will grow significantly, mainly from the growth in sales revenue of microwave/millimeter wave measuring instrument products. In 2025, the revenue of complete machines will decline slightly, mainly because the company's production capacity is relatively limited, and the company's rapidly developing test system business has increased consumption of the company's self-produced complete machines. In 2024, the specific reasons for the growth in sales revenue of microwave/millimeter wave measuring instrument products are as follows:

A. High-frequency band application scenarios are widely expanded, and the demand for microwave/millimetre-wave measuring instruments is increasing.

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Compared with low-frequency bands, millimeter waves have the characteristics of wide bandwidth, narrow beam, low transmission interference, good security and confidentiality, small multipath effect, high Doppler resolution, small device size and easy integration. With the widespread expansion of millimeter waves in 5G/6G communications, satellite communications, Internet of Things and other fields, the demand for microwave/millimeter wave measuring instruments is also increasing.

B. The product has technical advantages and is highly recognized by customers.

Relying on its long-term technological accumulation and quality advantages in the field of electronic measuring instruments, the company continues to develop and sell higher-performance series of products. During the reporting period, the growth of the company's microwave/millimetre-wave measuring instrument revenue mainly came from the growth in sales revenue of vector network analyzers, signal/spectrum analyzers and signal generator products. Among them, the company's 3674 series vector network analyzers, 4052 series and 4082 series signal/spectrum analyzers, 1466 series signal generators and other new generation series products have been fully recognized by customers. Their unit prices are higher than other series of products, driving the growth of microwave/millimetre-wave measuring instrument sales revenue during the reporting period.

②Complete machine-commissioned development

The main customers of the company's entrusted research and development business are Unit B and Unit C, which mainly entrust the company to develop new electronic measuring instrument products. The significant decline in the company's entrusted research and development revenue in 2024 is mainly due to the cyclical nature of this type of business. The company undertook a large number of projects during 2019 and 2020. The development cycle of the project is generally 1-4 years, and is mainly concentrated in 2-3 years. According to the project development cycle, the projects undertaken by the company from 2019 to 2020 will mainly be accepted in 2022 and 2023. Entrusted R&D revenue will rebound in 2025, mainly because the entrusted R&D projects undertaken by the company in 2022 will be completed and accepted in 2025.

(2) Test system

The company's test system is centered on complete machine products, relying on the design and development capabilities of all categories of electronic measuring instruments to gain in-depth insight into customer needs, strengthen market development in various sub-sectors, and provide customers with "tailor-made" test products through software development and system integration. During the reporting period, the company's testing system business income amounted to RMB 528.1487 million, RMB 627.5834 million and RMB 880.5934 million respectively, accounting for 24.76%, 30.75% and 37.03% of the company's main business income respectively. During the reporting period, the revenue scale of the testing system business showed an overall upward trend, mainly due to the increasing demand for customized testing solutions from downstream customers. (3) Whole parts business

During the reporting period, the company's revenue from complete parts was RMB 170.8284 million, RMB 166.7313 million and RMB 144.5499 million respectively, accounting for 8.01%, 8.17% and 6.08% of the company's main business income respectively. newspaper

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During the reporting period, the company's complete parts sales mainly included microwave complete parts.

Analysis of main business income composition by region

During the reporting period, the company's main business income mainly came from domestic sources. The breakdown by region is as follows: Unit: 10,000 yuan 2025 2024 2023

Project

Amount Percentage Amount Percentage Amount Percentage Domestic 231,608.24 97.39% 199,290.42 97.64% 210,378.08 98.61% Overseas 6,206.95 2.61% 4,808.42 2.36% 2,955.62 1.39%

Total 237,815.20 100.00% 204,098.84 100.00% 213,333.70 100.00%

Main business income divided by sales model

During the reporting period, the company’s main business income classified by sales model is as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Proportion Amount Proportion Amount Proportion Direct sales 178,051.05 74.87% 147,849.55 72.44% 158,736.35 74.41% Distribution 59,764.14 25.13% 56,249.29 27.56% 54,597.35 25.59% of which: contracted dealers 28,282.97 11.89% 16,251.58 7.96% 7,279.61 3.41% non-contracted dealers 31,481.17 13.24% 39,997.71 19.60% 47,317.74 22.18%

Total 237,815.20 100.00% 204,098.84 100.00% 213,333.70 100.00%

During the reporting period, the company adopted a sales model with direct sales as the mainstay and distribution as the supplement. Sales under different models are all buyout sales. Distribution is divided into contracted dealer customers and non-contracted dealer customers based on whether a distribution agreement is signed.

Main business income divided by quarter

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Proportion Amount Proportion Amount Proportion First quarter 39,118.92 16.45% 31,378.99 15.37% 60,247.90 28.24% Second quarter 58,931.13 24.78% 52,203.76 25.58% 34,660.85 16.25% Third quarter 60,327.22 25.37% 43,026.17 21.08% 38,969.94 18.27% Fourth quarter 79,437.93 33.40% 77,489.92 37.97% 79,455.01 37.24%

Total 237,815.20 100.00% 204,098.84 100.00% 213,333.70 100.00%

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In each period of the reporting period, the company's fourth quarter revenue accounted for a relatively high proportion. This is mainly because among the company's major customers, state-owned enterprises and scientific research institutes usually focus on the procurement and acceptance of related products in the second half of the year, resulting in the company's fourth quarter revenue being higher than other quarters.

(3) Operating cost analysis

Analysis of operating cost composition

During the reporting period, the company’s operating cost composition is as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Percentage Amount Percentage Amount Percentage Main business costs 124,517.75 98.81% 103,070.10 99.24% 127,919.84 99.05% Other business costs 1,494.81 1.19% 788.62 0.76% 1,225.97 0.95%

Total 126,012.56 100.00% 103,858.72 100.00% 129,145.81 100.00%

During the reporting period, the company's operating costs were 1,291.4581 million yuan, 1,038.5872 million yuan and 1,260.1256 million yuan respectively, and the main business costs were 1,279.1984 million yuan, 1,030.7010 million yuan and 1,245.1775 million yuan respectively, accounting for the proportion of the current operating costs respectively. 99.05%, 99.24% and 98.81%. During the reporting period, the company's operating costs generally matched the changes in the company's operating income, and the main business costs matched the changes in main business income.

Analysis of the company’s main business cost composition

(1) Analysis of main business cost by product composition

During the reporting period, the company’s main business costs were divided into product categories as follows:

Unit: 10,000 yuan 2025 2024 2023

Product Category

Amount Percentage Amount Percentage Amount Percentage of complete machine business 63,488.88 50.99% 55,868.14 54.20% 80,838.65 63.19% Of which: product sales 50,541.49 40.59% 53,558.50 51.96% 48,642.23 38.03%

Commissioned research and development 12,947.40 10.40% 2,309.64 2.24% 32,196.42 25.17% Test system 54,115.01 43.46% 38,592.61 37.44% 37,776.78 29.53% Complete component business 6,621.23 5.32% 7,991.23 7.75% 8,479.63 6.63%Other business 292.63 0.24% 618.11 0.60% 824.77 0.64%

Total 124,517.75 100.00% 103,070.10 100.00% 127,919.84 100.00%

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During the reporting period, the company's main business costs mainly consisted of complete machines, test systems, complete components and other business costs. The composition of the company's main business costs by product classification matched the structure of main business income. (2) Analysis of the composition of main business costs by items

During the reporting period, the composition of the company’s main business costs by item is as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Percentage Amount Percentage Amount Percentage Direct materials 96,851.40 77.78% 80,226.43 77.84% 91,571.76 71.59%Direct labor 16,871.26 13.55% 14,277.95 13.85% 22,299.21 17.43% Manufacturing expenses and others 10,795.09 8.67% 8,565.72 8.31% 14,048.86 10.98%

Total 124,517.75 100.00% 103,070.10 100.00% 127,919.84 100.00%

The company's main business costs consist of direct materials, direct labor, manufacturing expenses and others. Direct materials mainly include components, integrated circuits, modules for system integration, metal and non-metal materials and mechanical structural parts, etc.; direct labor mainly includes the wages and salaries of production personnel; manufacturing expenses and others mainly include indirect materials, depreciation and amortization, labor costs, production safety costs, water, electricity and heating costs, etc.

During the reporting period, the company's direct materials were 915.7176 million yuan, 802.2643 million yuan and 968.514 million yuan respectively, accounting for 71.59%, 77.84% and 77.78% of the main business costs of the current period respectively. In 2024, the company's direct materials accounted for an increase in the proportion of the current main business costs compared with previous years, mainly because the proportion of entrusted R&D business revenue dropped significantly that year, and the direct material costs of entrusted R&D business were lower than other products. In 2025, the company's direct materials accounted for a higher proportion of the current main business costs, mainly due to the increase in the proportion of revenue from the test system business and entrusted development business. The test system business and entrusted development business are highly customized, and the direct material costs of the test system and entrusted development that achieved revenue in the current period were relatively high.

During the reporting period, the company's direct labor costs were 222.9921 million yuan, 142.7795 million yuan, and 168.7126 million yuan respectively, accounting for 17.43%, 13.85%, and 13.55% of the current main business costs respectively. The proportions continued to decline. On the one hand, the 2024 Since 2020, the company's entrusted R&D business revenue has dropped significantly. The direct labor cost of the entrusted R&D business is higher than that of other products, resulting in a decrease in the proportion of direct labor costs in the main business costs since 2024. On the other hand, the proportion of the company's test system business revenue has increased in 2025, and the direct labor costs of the test systems that have achieved revenue in the current period are relatively low.

During the reporting period, the company’s manufacturing expenses and other expenses were RMB 140.4886 million, RMB 85.6572 million and RMB 85.6572 million respectively.

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107.9509 million yuan, accounting for 10.98%, 8.31% and 8.67% of the current main business costs respectively. In 2024

The annual proportion has declined, mainly because the company's entrusted research and development business revenue proportion has dropped significantly in 2024.

Compared with other products, the manufacturing expenses and other costs of the manufacturing business are relatively high, resulting in the manufacturing cost of the main business in 2024.

Expenses and other proportions have declined.

Various cost collection and allocation methods

During the reporting period, the issuer’s various costs were collected and allocated as follows:

Product category

Cost items Accounting content Cost collection Cost allocation

The raw materials for complete machines and complete component products are divided into batches according to the actual purchase price.

The purchased components, integrated circuits, first production, and direct materials are stored in each warehouse and processed according to the corresponding purchase batch.

Direct materials, mechanical structural parts, metals and non-metals, are collected after the completion of production batches and are collected according to actual use.

Materials and outsourcing processing, etc. The production costs between products and products in progress are divided into corresponding batches.

Standard costs are allocated to direct labor during the completion, assembly and production of all complete machines and complete component products. Direct labor is included in direct labor based on the actual wages that should be incurred.

Direct labor, incoming products and components of work-in-progress, related personnel salaries, receiving labor

The time will be allocated according to the product working hours quota.

Manufacturing costs are shared among all complete machine materials, production workshop water and electricity costs

The completed manufacturing expenses of complete component products are shared with the depreciation of materials and production equipment, and are included in manufacturing expenses based on the actual purchase price.

Incoming products, products in progress, and other production workshop water and electricity expenses, etc., production equipment should be allocated according to the current month

time, depreciation will be allocated to manufacturing expenses according to the fixed amount of product working hours.

apportion

According to the system integration module or customized combination

Procured system integration modules and customization

The actual purchase price of the same accessories and

Cost of direct materials production contract attachments and procurement costs

Receive direct material funds for inventory items

There are direct material costs in the instrument

The amount is included in the contract cost of the corresponding project

The remuneration of directly involved personnel is based on the

Proportion of attendance working hours of testing department staff in each project

Directly involved in customized contract projects

The system and other systems are grouped into each project, and the direct labor compensation of self-owned instruments and the use of self-owned instruments are directly assigned to the corresponding projects.

The labor cost for customization is based on the contract cost of using the inventory goods.

Direct labor cost in machine

The direct labor amount of products is included in the corresponding items

Purpose contract cost

Receive manufacturing overhead payments for inventory items

Receive manufacturing fees from your own instruments

The amount of manufacturing overhead is included in the project contract cost, and travel

Use and participate in contract project personnel

and other expenses are collected according to the actual reimbursement amount

travel expenses

to contract cost

Purchased components, integrated circuits,

Included in corresponding items based on actual purchase price

Direct materials: mechanical structural parts, metals and non-metals

Purpose contract cost

Materials and outsourced processing, etc.

Entrusted research personnel are directly assigned to corresponding projects based on their attendance in each project and directly participate in entrusted research and development contract projects.

Proportion of direct labor hours is calculated, and wages are aggregated into the contract costs of each item

Target personnel salary

Head

Manufacturing expenses, equipment depreciation expenses, technical outsourcing expenses, and equipment depreciation expenses are based on the actual use of each project.

and other testing fees, etc. The usage of equipment will be allocated to the contract

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Product category

Cost items Accounting content Cost collection Cost allocation

Cost, technical outsourcing fee, testing fee

etc. will be collected into the contract based on the actual purchase amount.

cost

Cost structure of comparable companies in the same industry

During each reporting period, the cost composition of comparable companies in the same industry is as follows:

Unit: 10,000 yuan, %Puyuan Jingdian

2025 2024 2023

Product Cost Item

Amount Percent Amount Percent Amount Percent Direct materials 24,880.17 75.43 20,675.41 75.23 20,556.66 76.67 Direct labor 820.89 2.49 786.52 2.86 645.44 2.41 Electronics Manufacturing expenses 4,225.07 12.81 3,319.48 12.08 3,374.33 12.59Test

Outsourced processing 870.87 2.64 502.80 1.83 302.77 1.13 Measurement

Instrument Freight 1,531.87 4.64 1,303.29 4.74 950.60 3.54Tariff 655.89 1.99 897.00 3.26 982.34 3.66

Total 32,984.77 100.00 27,484.49 100.00 26,812.14 100.00

Dingyang Technology

2025 2024 2023

Product Cost Item

Amount Percentage Amount Percentage Amount Percentage Direct materials 14,202.94 81.09 12,099.09 83.15 11,987.01 85.18Direct labor 1,000.11 5.71 729.95 5.02 609.25 4.33Big Four

Main manufacturing expenses 1,679.69 9.59 1,130.06 7.77 899.55 6.39 products

Outsourced processing 632.29 3.61 591.93 4.07 577.14 4.10

Total 17,515.03 100.00 14,551.03 100.00 14,072.95 100.00

Kunheng Shunwei

2025 2024 2023

Product Cost Item

Amount Proportion Amount Proportion Amount Proportion Wireless

Direct materials 6,687.15 78.96 6,955.33 86.16 6,686.96 84.80 Electrical measurement

Labor and fees

Trial imitation 1,782.07 21.04 1,117.01 13.84 1,198.20 15.20 Use

Zhenyi

utensils and

System Total 8,469.22 100.00 8,072.34 100.00 7,885.16 100.00

Plan

Issuer

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Product Cost Item

Amount Percentage Amount Percentage Amount Percentage Direct materials 40,320.33 79.78 42,363.55 79.10 39,086.16 80.35

Direct labor 5,584.12 11.05 6,451.11 12.04 5,597.56 11.51Complete machine

manufacturing overhead

4,637.04 9.17 4,743.84 8.86 3,958.51 8.14 and others

Total 50,541.49 100.00 53,558.50 100.00 48,642.23 100.00

During each reporting period, the cost structure of the company's complete machine products was basically consistent with that of comparable companies in the same industry. In terms of the proportion of direct materials, the total proportion of direct materials and tariffs of Puyuan Precision is between 77% and 81%, the proportion of direct materials of Dingyang Technology is between 81% and 86%, the proportion of direct materials of Kunheng Shunwei is between 78% and 87%, and the proportion of direct materials of the company is between 79% and 81%, which is basically consistent with comparable companies in the same industry.

In terms of the proportion of direct labor, Puyuan Precision's direct labor proportion is between 2% and 3%, Dingyang Technology's direct labor proportion is between 4% and 6%, and the company's direct labor proportion is between 11% and 13%. The company's direct labor proportion is higher than that of comparable companies in the same industry. This is mainly because the company mainly produces independently. At the same time, the company's product technology is more difficult and requires more labor for assembly, debugging, and testing and inspection. Therefore, the proportion of labor costs is higher than that of comparable companies in the same industry.

In terms of manufacturing expenses and other proportions, Puyuan Precision Technology's proportion is between 17% and 21%, Dingyang Technology's proportion is between 10% and 14%, and the company's proportion is between 8% and 10%. The company's manufacturing expenses and other proportions are basically the same as Dingyang Technology, but lower than Puyuan Precision Technology's. The main reason is that Puyuan Precision Technology's higher export freight increases its manufacturing expenses and other proportions.

In summary, during the reporting period, the company's complete machine product cost structure was basically consistent with the cost structure of comparable companies in the same industry, and there were no major differences.

(4) Gross profit and gross profit margin analysis

Analysis of gross profit composition and changes

During the reporting period, the company’s gross profit composition was as follows:

Unit: 10,000 yuan Projects in 2025, 2024, and 2023

Amount Percentage Amount Percentage Amount Percentage Main business gross profit 113,297.44 99.54% 101,028.74 99.70% 85,413.87 99.15%Other business gross profit 527.17 0.46% 300.82 0.30% 732.52 0.85%

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Total 113,824.61 100.00% 101,329.57 100.00% 86,146.38 100.00%

During the reporting period, the company's gross profit mainly came from its main business, with other businesses accounting for a smaller proportion.

During the reporting period, the company’s main business gross profit classification by product type is as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Gross profit proportion Gross profit proportion Gross profit proportion of complete machine business 70,223.40 61.98% 67,634.50 66.95% 61,192.79 71.64% Including: product sales 70,125.57 61.90% 67,569.43 66.88% 59,040.16 69.12%

Commissioned research and development 97.83 0.09% 65.07 0.06% 2,152.63 2.52% Test system business 33,944.32 29.96% 24,165.73 23.92% 15,038.09 17.61% Complete component business 7,833.76 6.91% 8,681.90 8.59% 8,603.21 10.07% Other business 1,295.96 1.14% 546.62 0.54% 579.78 0.68%

Total 113,297.44 100.00% 101,028.74 100.00% 85,413.87 100.00%

Analysis of gross profit margin composition and changes

During the reporting period, the company’s gross profit margin situation is as follows:

Project 2025 2024 2023

Gross profit margin of main business 47.64% 49.50% 40.04%, excluding entrusted research and development business

50.36% 50.05% 46.52%Main business gross profit margin

Other business gross profit margin 26.07% 27.61% 37.40% Comprehensive gross profit margin 47.46% 49.38% 40.01%

During the reporting period, the company's comprehensive gross profit margins were 40.01%, 49.38% and 47.46% respectively. There was a large increase in 2024 and a slight decline in 2025. The main reasons were: (1) As the main projects of the entrusted research and development business with low gross profit margins were completed in 2023, the proportion of the entrusted research and development business revenue decreased significantly in 2024, which led to an increase in the gross profit margin of the main business in 2024 and 2025. The annual entrusted R&D revenue has rebounded, which has lowered the gross profit margin of the main business; (2) The gross profit margin of the company's complete machine products and test system products has shown an overall upward trend.

During the reporting period, the gross profit margin composition of the company’s main business was as follows:

Project 2025 2024 2023 Complete machine - product sales 58.11% 55.78% 54.83% Complete machine - entrusted development 0.75% 2.74% 6.27% Test system 38.55% 38.51% 28.47%

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Whole parts 54.19% 52.07% 50.36% Others 81.58% 46.93% 41.28%

Total 47.64% 49.50% 40.04%

During the reporting period, the detailed analysis of the gross profit margin of the company's main products is as follows:

(1) Complete machine

①Complete machine-product sales

During the reporting period, the gross profit ratio and gross profit margin of complete machine products by product category are as follows:

2025 2024 2023 projects

gross profit gross profit gross profit

gross profit margin gross profit margin gross profit margin

Proportion Proportion Proportion

Microwave/millimeter wave measuring instruments 86.66% 61.02% 91.00% 60.43% 90.34% 58.82%Other measuring instruments 13.34% 44.40% 9.00% 31.38% 9.66% 33.53%

Total 100.00% 58.11% 100.00% 55.78% 100.00% 54.83%

During the reporting period, the company's gross profit margins from the sales of complete machine products were 54.83%, 55.78% and 58.11% respectively, maintaining an overall growth trend. Among them, the gross profit of complete machine products was mainly contributed by microwave/millimeter wave measuring instruments.

During the reporting period, the company's microwave/millimetre-wave measuring instrument gross profit margins were 58.82%, 60.43% and 61.02% respectively, showing an overall upward trend. This was mainly due to the company's continued strengthening of the research and development of new products for the market, and the launch of new products with higher performance and higher gross profits during the reporting period. For example, in 2022, the company launched a new generation of complete machine products such as the "Tianhengxing" series of products (1466 series signal generators, 4082 series signal/spectrum analyzers, and 3674 series vector network analyzers) and the "Tianjixing" series (4052 series signal/spectrum analyzers). They have outstanding performance and are widely recognized by the market. Their gross profit margins are relatively high, driving the improvement of the gross profit margins of microwave/millimetre-wave measuring instruments.

During the reporting period, the gross profit margins of the company's other measuring instruments were 33.53%, 31.38% and 44.40% respectively. The overall upward trend was mainly due to the company's initiative to reduce the sales of products with low gross profit margins during the reporting period, and the sales scale and proportion of products with high gross profit margins increased.

②Complete machine-commissioned development

During the reporting period, the gross profit margins of entrusted research and development were 6.27%, 2.74% and 0.75% respectively. Compared with the complete machine-product sales business, the gross profit margins of the complete machine-entrusted research and development business were lower. This was mainly because the prototypes delivered by the company to the client were all new products in the industry, and the corresponding technical level was relatively high, requiring professionals to carry out special technical research.

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In addition, the use of high-value non-standard consumables necessary under high index requirements makes the labor and material costs of entrusted development projects higher, which lowers the gross profit margin of this type of business.

(2) Test system

During the reporting period, the gross profit margins of the test system were 28.47%, 38.51% and 38.55% respectively, maintaining an overall growth trend. The testing system is a customized business, and the gross profit margins of different systems vary greatly. Starting from 2024, the gross profit margin of the company's test system will increase significantly, mainly due to: 1) When undertaking the test system business in recent years, the company has paid more attention to the collaboration with its own electronic measuring instrument business, giving priority to the integration of self-produced complete machines. And as the technical complexity of test systems increases and customers' demands for the resilience of the industrial chain and supply chain increase, the proportion of self-produced complete machines in the test system has been effectively increased. Compared with outsourcing third-party equipment or modules, self-produced complete machines have stronger cost control capabilities, higher technical added value, and better gross profit margins, driving the overall gross profit margin of the test system upward; 2) The company has launched a new generation of complete machine products with excellent performance, and downstream customers are gradually using them in test systems. The increased application of such high-margin self-produced products has further optimized the cost structure and gross profit level of the test system.

(3) Whole parts

During the reporting period, the gross profit margins of complete components were 50.36%, 52.07% and 54.19% respectively, with an overall slight increase.

Comparison of gross profit margins of comparable companies in the same industry

The company is an enterprise with the most comprehensive product categories and the widest spectrum coverage in the domestic electronic measuring instrument industry. Currently, there is no A-share listed company with exactly the same business as Diankesi Instrument. Companies in the same industry include Puyuan Jingdian, Dingyang Technology, and Kunheng Shunwei. For the products and business conditions of these companies, please refer to "II. Basic information on the industry in which the issuer operates/(5) Industry competition pattern and main competitors/2. Main competitors" in "Chapter 5 Business and Technology" of this prospectus.

During the reporting period, the comprehensive gross profit margin comparison between the company and comparable companies in the same industry is as follows:

Company name 2025 2024 2023 Puyuan Jingdian 55.08% 59.14% 56.04% Dingyang Technology 61.48% 61.07% 61.30% Kunheng Shunwei 62.58% 55.89% 67.01% Comparable company average 59.71% 58.70% 61.45%

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Company name 2025 2024 2023

Issuer 47.46% 49.38% 40.01%

Note: The above data comes from the periodic reports and other information publicly disclosed by comparable companies.

During the reporting period, the company's comprehensive gross profit margin was lower than the average level of comparable listed companies, mainly because the business of comparable listed companies is mainly the sales of complete machines. In addition to the sales of complete machine products, the company also has entrusted research and development business, testing system business and other customized product businesses with relatively low gross profit margins.

During the reporting period, the comparison of the gross profit margin of the company's product segments with comparable companies in the same industry is as follows:

Company name Product type 2025 2024 2023 Puyuan Precision Electronic test and measurement instruments 53.27% 56.64% 56.02% Digital oscilloscopes, signal generators, spectrum

Dingyang Technology Analyzers and Vector Network Analyzers 63.89% 63.79% 64.05% General electronic test and measurement instruments

Radio test simulation instruments and systems

Kunheng Shunwei 61.24% 60.06% 68.14%

case

Average of comparable companies - 59.47% 60.16% 62.74%

Complete product 58.11% 55.78% 54.83%

company

Among them: microwave/millimeter wave measuring instruments 61.02% 60.43% 58.82% Note: The above data comes from the periodic reports and other information disclosed by comparable companies.

Among the company's complete machine products, the gross profit margin of microwave/millimetre-wave measuring instrument products is not significantly different from that of comparable companies in the same industry. Because the company has a large variety of complete machine products, the gross profit margin of other measuring instrument products is lower than that of microwave/millimetre-wave measuring instruments, which lowers the overall gross profit margin of the complete machine products. At the same time, during the reporting period, the company launched continuous iterative upgrades of products, helping to increase the overall gross profit margin.

(5) Period cost analysis

During the reporting period, the company’s period expenses are as shown in the following table:

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Expense rate Amount Expense rate Amount Expense rate Sales expenses 14,223.08 5.93% 13,229.29 6.45% 12,135.02 5.64% Administrative expenses 15,984.82 6.66% 14,108.95 6.88% 16,522.09 7.67% Research and development expenses 45,280.23 18.88% 45,856.83 22.35% 37,450.19 17.40%Financial expenses -1,215.06 -0.51% -1,196.93 -0.58% -1,803.88 -0.84%

Total 74,273.06 30.97% 71,998.14 35.09% 64,303.43 29.87%

In each period of the reporting period, the company’s period expenses were RMB 643.0343 million, RMB 719.9814 million and RMB 742.7306 respectively.

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million, the expense ratios were 29.87%, 35.09% and 30.97% respectively. During the reporting period, period expenses increased, mainly due to the company's increased investment in research and development. The company’s specific expenses during the period and their changing trends are analyzed as follows:

Sales expense analysis

During the reporting period, the specific composition and proportion of the company’s main sales expenses are as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Expense rate Amount Expense rate Amount Expense rate Employee compensation 10,417.71 4.34% 9,874.08 4.81% 8,881.46 4.13% Travel expenses 1,201.58 0.50% 1,071.66 0.52% 1,107.61 0.51% Business entertainment expenses 125.50 0.05% 147.92 0.07% 217.13 0.10% Advertising expenses 490.66 0.20% 362.49 0.18% 348.24 0.16% Depreciation and amortization 844.61 0.35% 855.90 0.42% 627.05 0.29% Sales and service fee 672.67 0.28% 689.21 0.34% 676.95 0.31% Other expenses 470.34 0.20% 228.03 0.11% 276.57 0.13%

Total 14,223.08 5.93% 13,229.29 6.45% 12,135.02 5.64%

During the reporting period, the company's sales expenses were 121.3502 million yuan, 132.2929 million yuan and 142.2308 million yuan respectively, accounting for 5.64%, 6.45% and 5.93% of the operating income in the same period respectively. The company's sales expenses showed an overall growth trend.

During the reporting period, the company's sales expenses mainly consisted of employee salaries, travel expenses, advertising expenses, depreciation and amortization and sales service expenses. The specific analysis is as follows:

(1) Employee compensation

During the reporting period, employee compensation included in sales expenses were RMB 88.8146 million, RMB 98.7408 million and RMB 104.1771 million respectively, accounting for 4.13%, 4.81% and 4.34% of operating income in the same period respectively. During the reporting period, the company's employee compensation in sales expenses showed an upward trend, mainly due to the increase in the number of sales personnel. (2) Travel expenses

During the reporting period, travel expenses in sales expenses were RMB 11.0761 million, RMB 10.7166 million and RMB 12.0158 million respectively, which were relatively stable overall.

(3) Advertising expenses

During the reporting period, advertising expenses among sales expenses were 3.4824 million yuan, 3.6249 million yuan and 4.9066 million yuan respectively.

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Ten thousand yuan, business promotion expenses increase year by year, mainly because the company actively expands publicity and sales channels through participation in exhibitions, advertising, etc., expands the company's brand influence, and obtains more project resources.

(4) Depreciation and amortization

During the reporting period, depreciation and amortization in sales expenses were RMB 6.2705 million, RMB 8.5590 million and RMB 8.4461 million respectively, which mainly represented the depreciation of fixed assets and right-of-use assets, and the corresponding assets were mainly used for the office of sales personnel.

(5) Sales and service fees

During the reporting period, sales service fees included in sales expenses were RMB 6.7695 million, RMB 6.8921 million and RMB 6.7267 million respectively, mainly including service fees paid to bidding agency service providers, printing and production fees, etc.

(6) Comparison of sales expense ratio with comparable companies in the same industry

Company name 2025 2024 2023

Puyuan Jingdian 13.60% 13.22% 15.35% Dingyang Technology 14.85% 17.25% 15.25% Kunheng Shunwei 9.82% 9.45% 8.20% Industry average 12.76% 13.31% 12.93%

Dian Kesi Instrument 5.93% 6.45% 5.64% Note 1: The above data comes from the publicly disclosed periodic reports of comparable companies;

Note 2: Puyuan Fine Technology, Dingyang Technology, and Kun Hengshunwei include after-sales service fees in sales expenses. In order to maintain a unified approach, after-sales service fees have been excluded from sales expenses.

During the reporting period, the company's sales expense ratio was lower than the average level of comparable companies in the same industry. The specific reasons are as follows:

Business model, customer groups and customer development process

The specific sales models of the issuer and comparable companies are as follows:

Company name Sales model

Adopt an integrated sales model of "distribution as the mainstay and direct sales as the supplement". Under the distribution sales model, the company

Buy-out sales are adopted with dealers; under the direct sales model, users usually sign contracts with the company directly, or sell directly to users online quickly through self-operated e-commerce. Group strategic customers mainly sell through the large account sales model. The company's products are sold to more than 90 countries and regions around the world under the "RIGOL" brand.

The company's sales model includes three models: distribution, direct sales and ODM, with distribution as the main model. In North America and China, Dingyang Technology adopts a sales model with distribution as the main component and direct sales as the supplement. It adopts a distribution model in Europe, Asia, Africa and Latin America. The company's products are sold in more than 80 countries and regions around the world.

The company's sales model is mainly direct sales, supplemented by a small amount of distribution. Kunheng Shunwei establishes cooperative relationships with customers mainly through business negotiations. In addition, the company also obtains customer orders by participating in tenders and tenders.

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Company name Sales model

The company adopts a sales model of "direct sales as the mainstay and distribution as the supplement". The company mainly focuses on the direct sales model and has developed a complete direct sales management system and process. The company sells products directly to end customers and provides complete products and solutions according to the needs of customers in different usage scenarios. Company product core technology

The company has strong strength, and its downstream customers are mostly state-owned enterprise groups in the electronic information industry, communications manufacturers, telecom operators, electronic science and technology universities, etc. The company controls core customer resources through its own sales team and combines with the support team to complete the development, support and maintenance of direct sales customers. The company is supplemented by the distribution model. Through the distribution model, the company can take advantage of the dealer's location service advantages and channel resource advantages to improve the response speed to end customers, enhance comprehensive service capabilities, shorten the development cycle of end customers, and is conducive to the rapid promotion of the company's brand and products and increasing market share.

The company and Kunheng Shunwei both focus on direct sales and have similar customer structures. Their main customers are large domestic state-owned enterprise groups, mobile communication operators, equipment manufacturers and scientific research institutions. The purchasing behavior of this type of customers is characterized by standardized decision-making processes, long cooperation cycles, and high repurchase rates. They usually establish cooperative relationships through technical exchanges, business negotiations, and bidding, and are less dependent on traditional advertising, exhibition promotion, and popular marketing methods. Therefore, the company's marketing expenditures such as advertising fees and business promotion fees are lower than those of some comparable companies.

In contrast, Puyuan Fine Technology and Dingyang Technology mainly rely on distribution models, with more dispersed customer distribution, and a certain proportion of overseas sales revenue. In order to expand new customers at home and abroad and enhance the international influence of the brand, it needs to continue to invest resources in brand building, overseas exhibitions, online marketing and channel promotion. In addition, Puyuan Precision also conducts sales through its official website and third-party e-commerce platforms. The relevant business model requires it to bear additional expenses such as platform service fees every year, further increasing the overall sales expense level.

Sales expense structure

2025 2024 2023

company

Proportion of expense items Proportion of expense items Proportion of expense items Proportion of employee compensation 56.03% Employee compensation 56.94% Employee compensation 47.02%

Advertising and Business Advertising and Business Advertising and Business

Puyuan

18.14% 24.26% 25.66%Jingdian

publicity fee publicity fee publicity fee

E-commerce platform service E-commerce platform service

7.69% 7.52% Travel expenses 6.30% Service expenses Service expenses

Employee compensation 45.56% Employee compensation 42.22% Employee compensation 41.92% Dingyang

Business promotion fee 29.93% Business promotion fee 36.22% Business promotion fee 36.53% Technology

Transportation costs 5.17% Transportation costs 6.98% Travel and accommodation expenses 6.32%

Employee compensation 54.06% Employee compensation 51.11% Employee compensation 53.08% Kunheng

Business entertainment expenses 20.61% Business entertainment expenses 21.41% Business entertainment expenses 22.06% Shunwei

Others 7.41% Others 6.90% Transportation and travel expenses 8.38%

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company

Proportion of expense items Proportion of expense items Proportion of expense items

Employee compensation 73.25% Employee compensation 74.64% Employee compensation 73.19%Dianke

Travel expenses 8.45% Travel expenses 8.10% Travel expenses 9.13% Siyi

Sales and service fees 4.73% Depreciation and amortization 6.47% Sales and service fees 5.58% Note: The above data comes from the publicly disclosed periodic reports of comparable companies.

During the reporting period, the issuer's sales expense ratio was lower than the average level of comparable companies in the same industry, which was mainly caused by objective differences in customer structure, sales model, business scale and expense composition. It is fully commercially reasonable, as follows:

First, the company’s customers are concentrated and cooperation is stable, and marketing expenditures are small. The company is similar to Kun Heng Shunwei. Its main customers are high-end users such as large domestic state-owned enterprise groups, communication equipment manufacturers and scientific research institutes. Procurement is mainly based on technical exchanges, inquiry negotiations, and bidding. The cooperative relationship is long-term and stable, with a high repurchase rate. It relies very little on popular marketing methods such as advertising, exhibition promotion, and e-commerce platform drainage. Therefore, advertising fees, business promotion fees, transportation and allocation fees and other expenses are significantly lower than comparable companies such as Puyuan Fine Electronics and Dingyang Technology that target dispersed customers and overseas markets.

Second, the company’s sales amount and share-based payment amount through e-commerce channels are small. Puyuan Jingdian sells through official website direct sales and third-party e-commerce platforms (such as Alibaba International Station, Amazon, etc.), and needs to pay platform service fees, traffic promotion fees, etc. every year. During the reporting period, the issuer only sold a small number of products through e-commerce channels, and the related expenses of the e-commerce platform were low; at the same time, the equity incentive expenses of the sales team of some comparable companies were significantly higher than the issuer, further increasing the sales expense ratio of comparable companies.

Third, the company scale effect is significant. The company's revenue scale is significantly larger than that of comparable companies. It has entered the stage of large-scale and intensive operations. It has stronger resource integration capabilities in terms of customer service, technical support, logistics coordination, etc., and the sales expenses corresponding to unit revenue are relatively low.

To sum up, the issuer's sales expense ratio is lower than that of comparable companies in the same industry. This is the result of multiple factors such as its focus on high-end customers, adoption of an efficient direct sales model, low e-commerce and share-based payment amounts, and economies of scale. It is in line with its own business characteristics and development stage, and is authentic and reasonable.

Management cost analysis

During the reporting period, the main details of the company’s administrative expenses are as follows:

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Unit: 10,000 yuan 2025 2024 2023

Project

Amount Expense rate Amount Expense rate Amount Expense rate Employee compensation 10,023.66 4.18% 8,724.82 4.25% 9,513.16 4.42% Depreciation and amortization 2,383.07 0.99% 2,168.33 1.06% 2,125.55 0.99% Travel expenses 584.60 0.24% 729.63 0.36% 935.67 0.43% Repair and repair costs 130.04 0.05% 138.94 0.07% 369.08 0.17% Labor costs 573.12 0.24% 436.28 0.21% 654.20 0.30% consulting service fee 463.90 0.19% 324.26 0.16% 911.66 0.42% patents and software

222.82 0.09% 188.18 0.09% 236.79 0.11% expenses

Disability pension 400.50 0.17% 379.84 0.19% 335.64 0.16% Other expenses 1,203.11 0.50% 1,018.68 0.49% 1,440.35 0.66%

Total 15,984.82 6.66% 14,108.95 6.88% 16,522.09 7.67%

During the reporting period, the company's administrative expenses were 165.2209 million yuan, 141.0895 million yuan and 159.8482 million yuan respectively, accounting for 7.67%, 6.88% and 6.66% of the operating income respectively. During the reporting period, the company's administrative expenses mainly consisted of employee compensation, depreciation and amortization, travel expenses, and consulting service fees. The above expenses accounted for a total of 81.62%, 84.68%, and 84.18% of the administrative expenses.

(1) Employee compensation

During the reporting period, the employee remuneration of the company's management personnel was RMB 95.1316 million, RMB 87.2482 million and RMB 100.2366 million respectively. In 2024, due to the adjustment of the management personnel structure, the employee remuneration level decreased. (2) Depreciation and amortization

Depreciation and amortization mainly include depreciation of fixed assets, amortization of intangible assets and depreciation of right-of-use assets. During the reporting period, the company's depreciation and amortization expenses were relatively stable, at RMB 21.2555 million, RMB 21.6833 million and RMB 23.8307 million respectively.

(3) Travel expenses

During the reporting period, the travel expenses incurred by management personnel were RMB 9,356,700, RMB 7,296,300 and RMB 5,846,000 respectively. The travel expenses incurred by management personnel in 2023 are relatively high, mainly due to the dual factors of surge in business volume and rising service costs: on the one hand, transportation, hotel accommodation, etc. were affected by the supply and demand relationship, and service prices generally increased in 2023; on the other hand, the company thoroughly implemented the "senior management on the front line" deployment that year, and concentrated on releasing former employees.

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Due to the backlog of exchange visits and other demands during the current period, business travel activities are relatively frequent.

(4) Consulting service fee

Consulting service fees mainly include project review fees, IPO intermediary fees, other intermediary fees, etc. During the reporting period, the company's consulting service fees were RMB 9.1166 million, RMB 3.2426 million and RMB 4.639 million respectively. There will be more consulting service fees incurred in 2023, mainly due to the increase in various business consulting fees and various intermediary agency fees incurred during the IPO process.

(5) Comparison of management expense ratio with comparable companies in the same industry

During each reporting period, the comparison of management expense rates between the issuer and comparable companies in the same industry is as follows:

Company name 2025 2024 2023 Puyuan Jingdian 10.91% 13.23% 9.50% Dingyang Technology 3.68% 5.21% 4.26% Kunheng Shunwei 8.27% 8.47% 6.07% Comparable company average 7.62% 8.97% 6.61% Issuer 6.66% 6.88% 7.67% Note: The above data comes from the periodic reports disclosed by comparable companies.

During the reporting period, the company's administrative expense rate was at the middle level of comparable companies in the same industry, and there was no significant difference compared with comparable companies in the same industry.

Analysis of R&D expenses

(1) Analysis of changes in R&D expenses

During the reporting period, the company’s R&D expenses details are as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Amount Expense rate Amount Expense rate Amount Expense rate Employee compensation 25,705.91 10.72% 23,314.36 11.36% 20,254.48 9.41% Material fee 13,749.62 5.73% 12,618.57 6.15% 10,237.24 4.76% Depreciation and amortization 2,699.33 1.13% 2,846.80 1.39% 2,707.72 1.26% Travel expenses 533.36 0.22% 535.41 0.26% 404.41 0.19% Entrusted external research expenses 1,163.88 0.49% 3,498.22 1.70% 2,113.79 0.98% Testing and assay processing fee 726.04 0.30% 1,814.96 0.88% 1,186.66 0.55% Other expenses 702.09 0.29% 1,228.51 0.60% 545.89 0.25%

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2025 2024 2023

Project

Amount Expense rate Amount Expense rate Amount Expense rate

Total 45,280.23 18.88% 45,856.83 22.35% 37,450.19 17.40%

During the reporting period, the company's R&D expenses were 374.5019 million yuan, 458.5683 million yuan, and 452.8023 million yuan respectively, accounting for 17.40%, 22.35%, and 18.88% of the operating income in the same period respectively. The cumulative R&D investment amount in the past three years and the proportion of the cumulative operating income in the past three years were 19.47%. The compound growth rate of R&D investment in the past three years was 9.96%. During the reporting period, R&D expenses showed an overall increasing trend, mainly because the company attached great importance to product and technology research and development, and continued to increase investment in R&D to maintain the company's technological forward-looking, leadership and core competitive advantages.

During the reporting period, the company's R&D expenses mainly consisted of employee salaries, material expenses, depreciation and amortization, entrusted external research expenses, testing and laboratory processing expenses, etc., which together accounted for 97.46%, 96.15% and 97.27% of R&D expenses respectively.

①Employee compensation

During the reporting period, R&D salary expenses were RMB 202.5448 million, RMB 233.1436 million and RMB 257.0591 million respectively. During the reporting period, after gradually completing the phased entrusted research and development work, the company's R&D personnel invested more energy in independent research and development projects to address the growth in R&D needs caused by more diversified technological upgrades. Therefore, the amount of R&D employee compensation increased rapidly.

②Material fee

Material costs are mainly the material input consumed by the company’s research and development projects. During the reporting period, the R&D material expenses were RMB 102.3724 million, RMB 126.1857 million and RMB 137.4962 million respectively. The amount of material fees continues to grow, mainly because R&D personnel invest more energy in independent research and development projects, and the investment in materials also increases with the increase in the number of projects and R&D intensity.

③Depreciation and amortization

During the reporting period, depreciation and amortization involved in research and development were RMB 27.0772 million, RMB 28.4680 million and RMB 26.9933 million respectively. During the reporting period, the depreciation and amortization amounts involved in research and development fluctuated relatively little.

④Entrusted external research expenses

During the reporting period, the company’s entrusted external research expenses amounted to RMB 21.1379 million, RMB 34.9822 million and

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11.6388 million yuan, a relatively small proportion. In order to rationally allocate R&D resources and improve R&D efficiency, the company cooperates with universities and enterprises with relevant qualifications or technical advantages in certain non-critical links of some R&D projects, which will not lead to the leakage of the company's core technology.

⑤Testing and laboratory processing fees

During the reporting period, the company's testing and laboratory processing fees amounted to RMB 11.8666 million, RMB 18.1496 million and RMB 7.2604 million respectively. Testing and assay processing fees mainly account for the inspection, testing, design, assay and processing service fees that need to be paid for external procurement due to the limitations of its own technology, process, equipment and other conditions during the research and development process. The larger amount of testing and laboratory processing fees in 2023 and 2024 is mainly due to the fact that the company undertook more major special research and development projects during this period, involving a large number of testing and laboratory requirements, which usually requires the company to hire a third party to provide inspection and testing services.

(2) Analysis of R&D expense ratio and comparable companies in the same industry

During each reporting period, the company's R&D expenses as a proportion of operating income compared with comparable companies in the same industry are as follows:

Company name 2025 2024 2023 Puyuan Jingdian 25.09% 26.64% 21.30% Dingyang Technology 24.09% 21.81% 17.82% Kunheng Shunwei 29.26% 31.09% 22.38% Comparable company average 26.15% 26.51% 20.50%

Issuer 18.88% 22.35% 17.40%

Note: The above data comes from the periodic reports and other information publicly disclosed by comparable companies.

During each reporting period, the issuer's R&D expenditures accounted for 17.40%, 22.35% and 18.88% of operating income respectively, which were lower than the average of comparable companies in the same industry. The main reasons are as follows:

①Comparison of R&D expense ratios between the company and comparable overseas companies in the same industry

Since the performance scale of domestic comparable companies in the same industry is smaller than that of the issuer, the R&D expense ratios of foreign comparable companies are selected for comparison as follows:

Unit: 10,000 yuan

2025/FY 2024/FY 2023/FY

Company name

R&D expenses R&D expenses R&D expenses

weigh

operating income operating income operating income

rate rate rate

It's Deco

18.73% 3,809,800.00 18.46% 3,547,537.50 16.14% 3,922,004.56Technology

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2025/FY 2024/FY 2023/FY

Company name

R&D expenses R&D expenses R&D expenses

weigh

operating income operating income operating income

rate rate rate

Rhodes and

Undisclosed Undisclosed Undisclosed 2,655,158.40 Undisclosed 2,249,859.10Schwartz

Anri 8.67% 508,610.46 8.74% 546,309.95 9.04% 518,401.69

Issuer 18.88% 239,837.17 22.35% 205,188.28 17.40% 215,292.19

Note 1: The above comparable company data comes from corporate annual reports; Rohde & Schwarz is a non-listed company and only announces operating income but not net profit. The data comes from the company's official website and is converted into RMB based on the exchange rate of each financial year or adjacent dates; Note 2: Keysight's fiscal year is from November 1 of the previous year to October 31 of this year, and Anritsu's fiscal year is from April 1 of the previous year to March 31 of this year;

Compared with comparable foreign companies whose performance scale is larger than that of the issuer, the issuer's R&D expense rate in 2023-2024 is higher than that of comparable foreign companies. Therefore, the company's R&D expense rate is within a reasonable range in the same industry. The company's R&D expense rate is lower than that of comparable domestic companies in the same industry. This is mainly because the company's business scale is relatively large, the revenue scale of each period is relatively high, and the denominator of the R&D expense rate is operating income. Therefore, the R&D expense rate is relatively low.

② The essence of the company’s entrusted research and development business expenditures is to engage in research and development activities, but the costs incurred are not included in the research and development investment, resulting in the company’s relatively low R&D expense rate

The entrusted research and development business is also one of the issuer's scientific research activities, and its results can be used in the issuer's other scientific research activities. During the reporting period, the issuer’s R&D expenses and entrusted R&D expenditures accounted for the proportion of operating income as follows: 2025 2024 2023 Projects

Expense rate Expense rate Expense rate R&D expenses 18.88% 22.35% 17.40% Entrusted R&D investment 4.16% 3.80% 4.66%

Total 23.04% 26.14% 22.06%

Average R&D expense rate of comparable companies 24.59% 26.51% 20.50%

In each period of the reporting period, the company's R&D expenses combined with entrusted R&D expenditures accounted for 22.06%, 26.14% and 23.04% of operating income respectively. Each period of the reporting period was similar to the average R&D expense rate of comparable companies, and the expense rate was reasonable.

(3) The company’s main R&D projects

During the reporting period, the company’s investment in major R&D projects was as follows:

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Unit: 10,000 yuan

implement into

Serial number Project name 2025 2024 2023 Budget amount

5G high-bandwidth vector signals

1 - - 2,720.62 Finalization 11,030.00 Generator project

5G high-bandwidth signal analysis

2 - - 1,934.23 Completed 10,264.00 Instrument Development Project

Comprehensive testing of high-performance Internet of Things

3 Complete instrument development and engineering 785.83 785.74 1,131.97 Finalization 3,370.00 Industrialization

Next generation handheld microwave

4 166.06 889.95 793.42 Final question 2,200.00 Comprehensive tester

High-performance serial oscilloscope

5 - - 1,455.42 Final question 6,768.00 Device industrialization and application

Next generation PXIe bus information

6 - 1,056.48 822.63 Conclusion Transceiver No. 1,900.00

Ultra-wideband photoelectric vector

7 Network core components and integration 407.73 767.40 653.93 Under development 1,860.00 Machine integration

Multi-channel mixed signal display

8 592.92 610.93 460.78 Under development 1,386.00 Integrated development of the whole wave device

Antenna environmental effects multiple parameters

9 Digital comprehensive tester project 543.76 469.71 344.61 Under research 1,482.00 Industrialization and industrial development

next generation handheld spectrum

10 - 156.82 1,009.18 Ending 1,500.00 Analyzer (50GHz)

Antenna environmental effects multiple parameters

11 Digital comprehensive tester integration 648.94 575.11 306.08 Under development 1,287.00 Developed

PXIe bus vector network

12 277.31 823.21 128.10 Conclusion 1,300.00Analyzer

Multi-channel mixed signal display

13 Wave device engineering development and 703.13 581.47 286.93 Research in progress 1,250.00 Industrialization promotion

Signal analyzer core computing

14 - 2,938.35 1,217.90 Conclusion 5,300.00 Method development and complete machine development

Signal analyzer engineering

15 - 2,396.56 1,344.21 Conclusion 4,710.00 Industrial development

Multifunctional vector network points

16 - 1,370.14 1,874.64 Conclusion 3,940.00 Development of complete analyzer

Signal analyzer key core

17 - 2,383.15 497.30 Conclusion 2,950.00 Development of core components and chips

Multifunctional vector network points

18 Analyzer Engineering and Industry - 1,685.94 1,026.16 Finalization 3,050.00 Development

Multi-protocol network testing technology

19 921.65 1,366.86 866.51 Research in progress 3,342.00 Technology

110GHz signal generation

20 Device R&D and industrialization projects 786.13 1,195.76 637.12 Under development 3,769.34 projects

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implement into

Serial number Project name 2025 2024 2023 Budget amount

Multifunctional vector network software

21 - 1,273.65 1,042.22 Project completion 2,850.00 pieces developed

Multifunctional integrated comprehensive

22 2,012.82 1,364.70 - Research in progress 3,361.00 Performance testing technology

Mobile communication base station comprehensive

23 661.28 689.71 863.27 Under research 2,335.00 Testing technology

Comprehensive testing of communication terminals

24 816.41 629.70 801.90 Research in Progress 2,323.00 Technology

Multifunctional vector network points

25 Analyzer core chip and key - 1,065.86 753.34 Conclusion 1,926.00 key microwave component development

High-speed digital and RF testing

26 - 763.80 1,191.26 Conclusion 2,155.00 Test instrument research and development

Multifunctional vector network points

27 - 962.38 730.59 Conclusion 2,140.00 Analyzer application development

Spectrum and signal analysis research

28 3,175.96 - - Under development 5,370.00 Production and verification

RF conformance testing system

29 1,170.58 - - Under research 3,000.00 system

High performance signal simulator

30 1,214.58 292.40 - Under development 1,190.00 Complete machine development

Financial expenses

During the reporting period, the main details of the company’s financial expenses are as follows:

Unit: 10,000 yuan

Item 2025 2024 2023 Interest expense 92.04 170.33 375.34 Including: Interest expense on lease liabilities 92.04 170.33 375.34 Less: Interest income 1,304.38 1,364.38 2,207.28 Net interest expense -1,212.33 -1,194.05 -1,831.94Exchange loss -39.01 -8.18 62.37Less: Exchange gain 34.40 10.67 76.89Net exchange loss -73.41 -18.85 -14.53Bank handling fee 70.68 15.98 42.59Others - - -

Total -1,215.06 -1,196.93 -1,803.88 Note: Negative net exchange loss is income.

During the reporting period, the company's financial expenses were -18.0388 million yuan, -11.9693 million yuan and -12.1506 million yuan respectively, accounting for -0.84%, -0.58% and -0.51% of operating income respectively, mainly including interest income, foreign exchange

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Net income, interest expense on lease liabilities, etc.

(6) Analysis of changes in other operating results

Other income

During the reporting period, the company’s other income is as follows:

Unit: 10,000 yuan

Project 2025 2024 2023

Government subsidies included in other income 13,699.65 2,646.12 4,198.62 Among them: Government subsidies related to deferred income 13,061.20 1,708.04 2,933.09 Government subsidies directly included in the current profit and loss 638.45 938.08 1,265.53

2. Others related to daily activities and included in other

1,015.23 779.00 691.86 Income items

Including: Personal tax fee refund 40.22 47.01 43.92 Input tax plus deduction 975.01 731.99 647.94

Total 14,714.88 3,425.12 4,890.48

During the reporting period, the company's other income was RMB 48.9048 million, RMB 34.2512 million and RMB 147.1488 million respectively, mainly composed of income-related government subsidies and input tax plus deductions. Government subsidies mainly include scientific research funds obtained by the company from undertaking various major special R&D projects. Specific projects include 5G high-bandwidth vector signal generator project, 5G high-bandwidth signal analyzer development project, microwave and millimeter wave multi-function vector network analyzer project, microwave and millimeter wave real-time signal analyzer project, and other related subsidies.

According to the "Announcement on the Additional Value-Added Tax Deduction Policy for Advanced Manufacturing Enterprises" (Announcement No. 43 of the Ministry of Finance and the State Administration of Taxation in 2023), from January 1, 2023 to December 31, 2027, advanced manufacturing enterprises are allowed to calculate additional input tax based on the deductible input tax for the current period. 5% of the value-added tax payable is deducted. The company complies with the super tax deduction policy for the current period. In 2023, 2024 and 2025, the super tax deduction of RMB 6.4794 million, RMB 7.3199 million and RMB 9.7501 million will be recognized respectively.

According to the requirements of "Accounting Standards for Business Enterprises No. 16 - Government Subsidy" (Financial Accounting [2017] No. 15), the company will include government subsidies related to the daily activities of the enterprise into other income. During the reporting period, the details of the government subsidies included in other income by the company are as follows:

Unit: 10,000 yuan

Project 2025 2024 2023 Microwave and millimeter wave multifunctional vector network analyzer project 5,100.00 - -Microwave and millimeter wave real-time signal analyzer project 4,930.00 - -

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Project 2025 2024 2023 5G high-bandwidth vector signal generator project 1,338.94 103.24 955.54 5G high-bandwidth signal analyzer development project 987.73 161.10 575.18 Industrialization and application of 10GHz bandwidth high-performance serial oscilloscopes

255.82 678.59 502.33 projects

The financial subsidy amount after the vector network analyzer project has been received - 100.00 300.00 Weak burst broadband electromagnetic signal microwave photon rapid detection technology

400.00 - project

Terahertz spectrum precision analysis technology based on electronics - 300.00 - Oscilloscope chassis system and software development project - - 300.00 Terahertz non-destructive testing technology development and application project 250.00 - - High-performance microwave and millimeter wave signal generator project post-financial subsidy

- 240.00 limit received

Development funds of the Military-Civil Integration Development Committee - 240.00 - Qingdao's fourth batch of advanced manufacturing technological transformation equipment investment awards - - 204.00 The Military-Civil Integration Development Committee supports enterprises to participate in related product research and development

188.60 -Project

Qingdao’s fourth batch of advanced manufacturing industries supporting industrial interconnection in 2023

- 146.00 net reward

Development and application of real-time measurement and analysis instruments for broadband electromagnetic signals

- 141.00 mesh

Support enterprise participation in project awards - - 134.00 Parameter measurement analyzer overall architecture design research project - - 133.00 Portable electromagnetic information security testing technology and equipment development project - - 120.00 Economic and Trade Development Bureau's 2025 Provincial Future Industry Benchmark Application Scenario

100.00 - One-time incentive funds for commercial application solutions

Guidance funds from the Civil-Military Integration Development Committee - 100.00 - Summary of other projects 737.17 374.59 447.57

Total 13,699.65 2,646.12 4,198.62

Note: Project subsidies with a cumulative amount of less than 1 million yuan are summarized and listed as "other projects".

Analysis of credit impairment losses and asset impairment losses

(1) Credit impairment loss

Unit: 10,000 yuan

Item 2025 2024 2023 Bad debt losses on notes receivable 757.43 -46.67 277.94 Bad debt losses on accounts receivable 632.11 1,697.37 1,377.70 Bad debt losses on other receivables -107.77 11.11 42.48

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Project 2025 2024 2023

Total 1,281.77 1,661.81 1,698.12

During the reporting period, the company's credit impairment losses were RMB 16.9812 million, RMB 16.6181 million and RMB 12.8177 million respectively, showing an overall downward trend.

(2) Asset impairment loss

Unit: 10,000 yuan

Items 2025 2024 Inventory depreciation losses and contract performance cost impairment losses in 2023

5,931.35 2,963.06 5,612.52 lost

Impairment losses on contract assets and other non-current assets 59.69 34.54 33.55

Total 5,991.03 2,997.59 5,646.07

During the reporting period, the company's asset impairment losses amounted to RMB 56.4607 million, RMB 29.9759 million and RMB 59.9103 million respectively, which were mainly the provision for inventory depreciation and contract asset impairment losses.

Income from asset disposal

During the reporting period, the company’s asset disposal income was as follows:

Unit: 10,000 yuan

Items 2025 2024 Gains or losses on disposals not classified as assets held for sale in 2023 32.13 289.96 41.77 Among them: right-of-use assets 32.13 289.96 41.77

During the reporting period, the company's asset disposal income was mainly income from the disposal of right-of-use assets. During the reporting period, in order to control leasing costs and improve the asset ownership rate, the company replaced some leased equipment with outsourced equipment, resulting in a reduction in the scale of leasing equipment from Forty-One in 2024, so the amount of asset disposal income that year was relatively high.

Analysis of non-operating income and expenses

(1) Non-operating income

During the reporting period, the company’s non-operating income details are as follows:

Unit: 10,000 yuan

Item 2025 2024 Gains from damage and scrapping of non-current assets in 2023 - 22.00 4.94 Others 94.99 140.44 50.63

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Project 2025 2024 2023

Total 94.99 162.45 55.57

During the reporting period, the company's non-operating income was RMB 555,700, RMB 1,624,500 and RMB 949,900 respectively, mainly due to recruitment liquidated damages, supplier quality fines and scrapping gains generated from the disposal of non-current assets. (2) Non-operating expenses

During the reporting period, the specific composition of the company’s non-operating expenses is as follows:

Unit: 10,000 yuan

Project 2025 2024 Donation expenditure in 2023 91.00 81.00 46.00 Loss from damage and scrapping of non-current assets 7.31 5.29 3.56 Fines and others 153.13 61.88 1.72

Total 251.44 148.16 51.29

During the reporting period, the company's non-operating expenses were RMB 512,900, RMB 1,481,600 and RMB 2,514,400 respectively. During the reporting period, the company's non-operating expenses mainly included external donations, losses from damage and scrapping of non-current assets and fines. The amount of non-operating expenses was relatively small and did not have a significant adverse impact on the company's profits.

(7) Analysis of tax payment situation during the reporting period

Taxation status

During the reporting period, the main taxes paid by the company are as follows:

Unit: 10,000 yuan 2025 2024 2023

Project

Payable Payable Payable Payable Payable Payable Payable

Tax amount Tax amount Tax amount Tax amount Tax amount Tax amount Corporate income tax 2,011.84 400.21 393.64 -124.43 72.16 3,475.20 Value-added tax 12,440.32 15,343.94 11,025.82 11,005.52 8,661.12 6,222.51 Urban construction tax 989.02 1,074.16 775.27 770.35 564.40 434.73 Education fee surcharge 706.44 767.26 553.77 550.25 403.14 310.52

Total 16,147.63 17,585.58 12,748.49 12,201.69 9,700.83 10,442.95

The relationship between income tax expenses and accounting profits

During the reporting period, the company’s income tax expenses were as follows:

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Unit: 10,000 yuan

Item 2025 2024 Current income tax expense in 2023 2,011.84 393.64 72.16 Deferred income tax expense -1,001.56 -1,089.60 -828.32

Total 1,010.28 -695.96 -756.16

During the reporting period, the relationship between the company’s income tax expenses and accounting profits in each period is as follows:

Unit: 10,000 yuan

Item 2025 2024 Total profit in 2023 44,831.44 26,762.92 18,230.90 Income tax expenses calculated according to statutory/applicable tax rates 6,724.72 4,014.44 2,734.64 Impact of different tax rates applicable to subsidiaries 6.38 - - Impact of adjusting income taxes in previous periods - - 72.16 Impact of non-deductible costs, expenses and losses 197.91 -97.50 99.32 The deductible temporary nature of deferred income tax assets is not recognized in the current period

0.02 - Effect of difference or deductible loss

Additional deduction for R&D expenses -5,918.72 -4,612.92 -3,662.28 Income tax expense 1,010.28 -695.96 -756.16

Changes in tax policies, tax incentives and their impact on the company during the reporting period

During the reporting period, there were no major changes in the issuer's tax policies, and no major tax policy adjustments had an adverse impact on the company's operations. The issuer adjusts the applicable tax rate in accordance with the requirements of relevant national laws and regulations and pays taxes in accordance with the law.

During the reporting period, tax incentives had a certain impact on the company's operating results. For details, please refer to "8. Main taxes and tax incentives (/3) The impact of tax incentives on operating results" in "Section 6 Financial Accounting Information and Management Analysis" of this prospectus.

12. Asset quality analysis

(1) Asset composition analysis

At the end of each reporting period, the composition of the company’s total assets is as follows:

Unit: Ten thousand yuan December 31, 2025 December 31, 2024 Project on December 31, 2023

Amount Percentage Amount Percentage Amount Percentage Current assets 365,001.47 87.13% 323,282.51 85.96% 302,557.42 84.46%

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December 31, 2025 December 31, 2024 December 31, 2023 Project

Amount Percentage Amount Percentage Amount Percentage Non-current assets 53,925.48 12.87% 52,802.86 14.04% 55,649.26 15.54%

Total 418,926.95 100.00% 376,085.37 100.00% 358,206.68 100.00%

During the reporting period, the company's total assets showed an overall growth trend. At the end of each reporting period, the company's total assets were RMB 3,582,066,800, RMB 3,760,853,700 and RMB 4,189,269,500 respectively. The company's assets are mainly composed of current assets. At the end of each reporting period, the book values of the company's current assets were 3,025,574,200 yuan, 3,232,825,100 yuan, and 3,650,014,700 yuan respectively, accounting for 84.46%, 85.96%, and 87.13% of the total assets respectively.

(2) Current assets analysis

At the end of each reporting period, the specific composition of current assets is as follows:

Unit: 10,000 yuan

Item December 31, 2025 December 31, 2024 Monetary funds on December 31, 2023 165,262.31 123,010.14 118,967.19 Notes receivable 16,871.76 10,791.23 10,716.69 Accounts receivable 68,903.87 72,718.74 47,659.11 Receivables financing 1,541.69 996.68 726.39 Prepayments 874.16 1,266.31 1,062.69 Other receivables 1,338.43 3,396.84 3,199.80 Inventory 106,811.61 108,472.91 117,016.83 Contract assets 2,725.06 2,431.03 2,320.50 Other current assets 672.58 198.63 888.24

Total current assets 365,001.47 323,282.51 302,557.42

Monetary funds

Unit: 10,000 yuan

December 31, 2025 December 31, 2024 December 31, 2023

Project

day day day

Cash on hand - - -Bank deposits 162,747.28 119,993.23 117,143.94 Other monetary funds 2,515.04 3,016.91 1,823.25

Total 165,262.31 123,010.14 118,967.19

Including: Deposits from finance companies 150,562.15 112,095.26 111,606.60

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December 31, 2025 December 31, 2024 December 31, 2023

Project

day day day

Including: Total amount deposited abroad 239.79 94.19 -

At the end of each reporting period, the company's monetary fund balances were 1,189.6719 million yuan, 1,230.1014 million yuan and 1,652.6231 million yuan respectively, accounting for 39.32%, 38.05% and 45.28% of current assets respectively. The balance of bank deposits at the end of each reporting period has fluctuated, mainly because the company has different cash payments for the purchase of fixed assets in each year due to business planning considerations, especially the amount of fixed assets purchased in 2023 is larger.

Notes receivable and accounts receivable financing

(1) Notes receivable

At the end of each reporting period, the company’s notes receivable are as follows:

Unit: 10,000 yuan

December 31, 2025 December 31, 2024 December 31, 2023 Category

Provision for bad debts Provision for bad debts Book balance Provision for bad debts Book value Book balance Book value Book balance Book value

Prepare for bank commitment

47.05 - 47.05 62.07 - 62.07 257.69 - 257.69 Exchange draft

financial company

Bank acceptance 68.00 3.40 64.60 - - - 1,521.72 292.34 1,229.37 Bill of exchange

commercial undertaking

18,648.53 1,888.42 16,760.12 11,863.55 1,134.39 10,729.16 10,118.34 888.72 9,229.62 Exchange of draft

Total 18,763.58 1,891.82 16,871.76 11,925.62 1,134.39 10,791.23 11,897.75 1,181.06 10,716.69

At the end of each reporting period, the book values of the company's notes receivable were RMB 107.1669 million, RMB 107.9123 million and RMB 168.7176 million respectively, which were mainly commercial acceptance bills. The main acceptors were central enterprise groups and their affiliated units. These customers have high reputation and low acceptance risk.

At the end of each reporting period, the details of the notes receivable that have been endorsed or discounted by the company and have not yet matured on the balance sheet date are as follows:

Unit: Ten thousand yuan December 31, 2025 December 31, 2024 Project on December 31, 2023

Termination of confirmation Not termination of confirmation Termination of confirmation Not termination of confirmation Termination of confirmation Not termination of confirmation

Amount Amount Amount Amount Amount Bank Acceptance

32.44 - 42.08 - 192.70 money order

finance company

acceptance bill

commercial acceptance

7,686.66 - 711.53 - 6.97 money order

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December 31, 2025 December 31, 2024 December 31, 2023 Project

Termination of recognition Not termination of recognition Termination of recognition Not termination of recognition Termination of recognition Not termination of recognition Amount Amount Amount Amount Amount

Total - 7,719.10 - 753.61 - 199.67

The company's accounting treatment for bills that have been endorsed or discounted but have not yet expired is as follows: bank acceptance bills issued by banks with higher credit ratings are derecognized when endorsed or discounted; bank acceptance bills and commercial acceptance bills issued by banks with average credit ratings continue to be recognized as bills receivable when endorsed or discounted, and are derecognized after maturity and payment.

(2) Accounts receivable financing

At the end of each reporting period, the company's book values of financing receivables were RMB 7.2639 million, RMB 9.9668 million and RMB 15.4169 million respectively, consisting of bank acceptance bills issued by commercial banks with higher credit ratings.

Accounts receivable and contract assets

(1) Analysis of changes in accounts receivable and contract assets

At the end of each reporting period, the details of the company’s accounts receivable and contract assets are as follows:

Unit: 10,000 yuan

Item December 31, 2025 December 31, 2024 Balance of accounts receivable on December 31, 2023 (A) 74,856.76 78,050.29 51,293.28 Bad debt provision (B) 5,952.89 5,331.55 3,634.17 Book value of accounts receivable (A-B) 68,903.87 72,718.74 47,659.11 Contract asset balance (C) 2,868.48 2,558.98 2,442.63 Impairment provision (D) 143.42 127.95 122.13 Book value of contract assets (C-D) 2,725.06 2,431.03 2,320.50 Book value of accounts receivable and contract assets

71,628.93 75,149.77 49,979.61 value (A-B+C-D)

Operating income (E) 239,837.17 205,188.28 215,292.19 Proportion of operating income

29.87% 36.62% 23.21% ((A-B+C-D)/E)

At the end of each reporting period, the book values of the company's accounts receivable and contract assets were RMB 499,796,100, RMB 751,497,700, and RMB 716,289,300 respectively, accounting for the proportions of operating income respectively. 23.21%, 36.62% and 29.87%, showing an overall upward trend, mainly due to the company's high proportion of state-owned enterprise customers. In recent years, the payment pace has been relatively slow due to the impact of the customer unit's financial budget or the internal payment approval process.

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(2) Details of accounts receivable and provision for bad debts

①Details of accounts receivable

Unit: 10,000 yuan December 31, 2025

Book balance Bad debt provision

Category

Proportion Proportion of provision

Book value amount Amount

(%) (%)

Provision for bad debts based on individual items - - - - - Provision for bad debts based on combinations 74,856.76 100.00 5,952.89 7.95 68,903.87 1. State-owned customers 59,007.90 78.83 4,387.92 7.44 54,619.98 2. Other customers 15,848.86 21.17 1,564.97 9.87 14,283.89

Total 74,856.76 100.00 5,952.89 7.95 68,903.87

December 31, 2024

Book balance Bad debt provision

Category

Proportion Proportion of provision

Book value amount Amount

(%) (%)

Provision for bad debts based on individual items - - - - - Provision for bad debts based on combinations 78,050.29 100.00 5,331.55 6.83 72,718.74 1. State-owned customers 61,046.57 78.21 4,017.52 6.58 57,029.05 2. Other customers 17,003.72 21.79 1,314.03 7.73 15,689.69

Total 78,050.29 100.00 5,331.55 6.83 72,718.74

December 31, 2023

Book balance Bad debt provision

Category

Proportion Proportion of provision

Book value amount Amount

(%) (%)

Provision for bad debts based on individual items 189.00 0.37 189.00 100.00 - Provision for bad debts based on combinations 51,104.28 99.63 3,445.17 6.74 47,659.11 1. State-owned customers 40,716.12 79.38 2,678.81 6.58 38,037.31 2. Other customers 10,388.16 20.25 766.36 7.38 9,621.80

Total 51,293.28 100.00 3,634.17 7.09 47,659.11

②Single provision for bad debts

At the end of 2023, the company does not expect to be able to recover its 1.89 million yuan in accounts receivable from Zhejiang Libang Hexin Intelligent Braking System Co., Ltd., so it has made full provision for bad debts. This account receivable was recovered in 2024, so the bad debt provision for accounts receivable was written off.

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③Accrual of bad debt provisions based on receivables from state-owned customers and subsidiaries

At the end of each reporting period, the company's accounts receivable and provision for bad debts based on receivables from state-owned customers and subsidiaries are as follows:

Unit: 10,000 yuan December 31, 2025

Aging

Book balance Bad debt provision Ratio of provision (%) Within 1 year 48,254.48 2,412.72 5.00 1-2 years 8,259.30 825.93 10.00 2-3 years 1,081.49 324.45 30.00 3-4 years 1,093.11 546.56 50.00 4-5 years 206.30 165.04 80.00 More than 5 years 113.22 113.22 100.00

Total 59,007.90 4,387.92 7.44

December 31, 2024

Aging

Book balance Bad debt provision Ratio of provision (%) Within 1 year 54,730.97 2,736.55 5.00 1-2 years 3,912.28 391.23 10.00 2-3 years 1,909.44 572.83 30.00 3-4 years 331.25 165.63 50.00 4-5 years 56.72 45.37 80.00 More than 5 years 105.91 105.91 100.00

Total 61,046.57 4,017.52 6.58

December 31, 2023

Aging

Book balance Bad debt provision Ratio of provision (%) Within 1 year 34,146.77 1,707.34 5.00 1-2 years 5,467.53 546.75 10.00 2-3 years 895.44 268.63 30.00 3-4 years 77.83 38.91 50.00 4-5 years 56.89 45.51 80.00 More than 5 years 71.66 71.66 100.00

Total 40,716.12 2,678.81 6.58

④Accrual of bad debt provisions based on receivables from other customers

At the end of each reporting period, the company's bad debt provisions for accounts receivable based on receivables from other customers are as follows:

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Unit: 10,000 yuan December 31, 2025

Aging

Book balance Bad debt provision Proportion of provision (%) Within 1 year 13,070.12 653.51 5.00 1-2 years 1,938.74 387.75 20.00 2-3 years 610.39 305.20 50.00 3-4 years 55.43 44.34 80.00 4-5 years 112.29 112.29 100.00 More than 5 years 61.88 61.88 100.00

Total 15,848.86 1,564.97 9.87

December 31, 2024

Aging

Book balance Bad debt provision Proportion of provision (%) Within 1 year 15,144.63 757.23 5.00 1-2 years 1,502.67 300.53 20.00 2-3 years 151.06 75.53 50.00 3-4 years 123.10 98.48 80.00 4-5 years 54.70 54.70 100.00 More than 5 years 27.55 27.55 100.00

Total 17,003.72 1,314.03 7.73

December 31, 2023

Aging

Book balance Bad debt provision Proportion of provision (%) Within 1 year 9,430.20 471.51 5.00 1-2 years 726.88 145.38 20.00 2-3 years 136.32 68.16 50.00 3-4 years 67.21 53.77 80.00 4-5 years 18.77 18.77 100.00 More than 5 years 8.78 8.78 100.00

Total 10,388.16 766.36 7.38

At the end of each reporting period, the company's accounts receivable within one year accounted for a large proportion, the age of the company's accounts receivable was relatively short, and the company's main customers were well-qualified, with good business reputation and solvency; the company's risk of bad debt losses was relatively small.

During the reporting period, the company has followed the principle of prudence and made reasonable provision for bad debt provisions in corresponding proportions for accounts receivable of different ages in accordance with the bad debt accrual policy for accounts receivable.

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China Electronics Cosi Technology Co., Ltd. Prospectus

During the reporting period, the company’s aging portfolio accrual policy compared with companies in the same industry is as follows:

Provision ratio (%)

Aging company

Puyuan Jingdian Dingyang Technology Kunheng Shunwei

State-owned customers and other customers are based on the number of overdue days.

distinguished as

Within 1 year 2.13 5.00 5.00 5.00 0.02%-2.77% More

accrual ratio

1 to 2 years 100.00 100.00 10.00 10.00 20.00 2 to 3 years 100.00 100.00 30.00 30.00 50.00 3 to 4 years 100.00 100.00 100.00 50.00 80.00 4 to 5 years 100.00 100.00 100.00 80.00 100.00 More than 5 years 100.00 100.00 100.00 100.00 100.00

Among companies in the same industry, the accounts receivable accrual policies of Puyuan Jingdian and Dingyang Technology are quite different from those of the company. The main reason is that the sales model of Puyuan Jingdian and Dingyang Technology is mainly based on the distribution model, and the credit period management of dealers is relatively strict. There is no major difference between the company's bad debt accrual policy and that of Kunheng Shunwei. This is mainly due to its higher similarity with the issuer's business model and customer nature, better customer qualifications, and lower credit risk.

(3) Top five customers of accounts receivable and contract assets

At the end of each reporting period, the top five customers of the company's accounts receivable and contract assets are as follows:

Unit: 10,000 yuan December 31, 2025

accounts receivable

Accounts Receivable Bad Debt Accounts Receivable and Contract Assets

Accounts receivable period Contract asset period Name of reserve and contract capital unit Contract asset period Total closing balance

Closing balance Closing balance Closing balance of impairment provision Proportion of count

Final balance

(%)

China Electronics Technology Group has

33,115.87 1,930.46 35,046.34 43.82 2,083.56 Co., Ltd.

China Aerospace Science and Technology Corporation has

4,517.43 561.75 5,079.19 6.35 264.46 Co., Ltd.

Unit A 4,127.99 - 4,127.99 5.16 206.40China Aerospace Science and Industry Corporation

2,198.84 190.84 2,389.68 2.99 134.91 Co., Ltd.

G unit 1,533.43 125.36 1,658.79 2.07 86.74

Total 45,493.57 2,808.42 48,301.99 60.39 2,776.07

December 31, 2024

Unit name Accounts receivable period Contract asset period Accounts receivable and accounts receivable Accounts receivable bad debts

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Closing balance Closing balance Contract asset period and contract asset provision and contract capital Closing balance Closing balance Total Proportion of production impairment provision period count Closing balance

(%)

China Electronics Technology Group has

37,235.27 1,644.41 38,879.68 47.43 2,255.87 Subsidiary units of the company

Sichuan Jiuzhou Investment Holding Group

3,987.76 560.58 4,548.34 5.55 227.42 Subsidiary units of Tuan Group Co., Ltd.

China Aerospace Science and Technology Corporation has

3,175.86 195.77 3,371.63 4.11 178.22 Subsidiaries of the company

Luxshare Precision Industry Co., Ltd.

2,842.62 - 2,842.62 3.47 143.16 Subsidiary units of the company

Unit A 2,624.19 - 2,624.19 3.20 131.21

Total 49,865.69 2,400.75 52,266.45 63.76 2,935.88

December 31, 2023

accounts receivable

Accounts Receivable Bad Debt Accounts Receivable and Contract Assets

Accounts receivable period Contract asset period Name of reserve and contract capital unit Contract asset period Total closing balance

Closing balance Closing balance Closing balance of impairment provision Proportion of count

Final balance

(%)

China Electronics Technology Group has

21,113.95 1,442.09 22,556.04 41.36 1,275.75 Subsidiary units of the company

D unit 2,554.05 2,554.05 4.68 255.41 China Aerospace Science and Technology Corporation has

2,324.12 147.14 2,471.26 4.53 126.41 Subsidiaries of the company

University of Electronic Science and Technology of China 1,871.34 75.28 1,946.61 3.57 97.33 Unit A 1,531.53 - 1,531.53 2.81 77.60

Total 29,394.99 1,664.51 31,059.49 56.95 1,832.49

At the end of each reporting period, the company's top five account receivable balances accounted for 56.95%, 63.76% and 60.39% respectively, most of which were affiliated units of state-owned enterprise groups with good commercial reputation and solvency. Among them, the total amount of accounts receivable and contract assets of the company in each period of the reporting period to the subsidiaries of China Electronics Technology Group Co., Ltd. was 225.5604 million yuan, 388.7968 million yuan, and 350.4634 million yuan respectively. The overall scale showed an upward trend, which was mainly caused by reasonable factors such as the growth of business scale and the settlement characteristics of large state-owned enterprises.

Prepayment

At the end of each reporting period, the details of the company’s prepayments are as follows:

Unit: Ten thousand yuan December 31, 2025 December 31, 2024 Aging on December 31, 2023

Amount Proportion Amount Proportion Amount Proportion Within 1 year 873.82 99.96% 1,257.57 99.31% 1,032.32 97.14%

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China Electronics Cosi Technology Co., Ltd. Prospectus

December 31, 2025 December 31, 2024 Aging on December 31, 2023

Amount Percentage Amount Percentage Amount Percentage 1 to 2 years 0.34 0.04% 8.73 0.69% 30.37 2.86% 2 to 3 years - 0.00% - 0.00% - 0.00% More than 3 years - 0.00% - 0.00% - 0.00%

Total 874.16 100.00% 1,266.31 100.00% 1,062.69 100.00%

At the end of each reporting period, the company's prepayments were RMB 10.6269 million, RMB 12.6631 million, and RMB 8.7416 million respectively. Most of the prepayments were aged within one year, and they were mainly prepayments to suppliers for purchases.

At the end of each reporting period, the top five prepayment balances are as follows:

(1) December 31, 2025

Unit: RMB 10,000 accounted for the balance of prepayments and the name of the unit as of December 31, 2025

Counted proportion Chengdu Zhongchuang Ruike Information Technology Co., Ltd. 143.40 16.40% Xi'an Jiaotong University 68.18 7.80% Qingdao West Coast Utilities Group Energy Heating Co., Ltd.

65.84 7.53% Division

Southeast University 49.82 5.70% Beijing Zhongkaiwei Technology Development Co., Ltd. 46.80 5.35%

Total 374.04 42.78%

(2) December 31, 2024

Unit: RMB 10,000 accounted for the balance of prepayments and the name of the unit as of December 31, 2024

Proportion of counting Hunan Zhongdian Xinghe Electronics Co., Ltd. 173.40 13.69% Beijing Shenzhou Technology Co., Ltd. 144.00 11.37% Qingdao Shenzhou Hengce Technology Co., Ltd. 138.00 10.90% Xi'an Hangguang Satellite Measurement and Control Technology Co., Ltd. 90.90 7.18% Qingdao West Coast Utilities Group Energy Heating Co., Ltd. 81.10 6.40%

Total 627.40 49.54%

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China Electronics Cosi Technology Co., Ltd. Prospectus

(3) December 31, 2023

Unit: RMB 10,000 accounted for the balance of prepayments and the name of the unit as of December 31, 2023

Proportion of counts Chengdu Hangke Zhiyi Measurement and Control Technology Co., Ltd. 288.00 27.10% Shanghai Tuchi Electronics Co., Ltd. 123.12 11.59% Shenzhen Ruihua Xingye Technology Co., Ltd. 99.00 9.32% Changying Hengrong Electromagnetic Technology (Chengdu) Co., Ltd. 88.53 8.33% Shenzhen Wanliyan Technology Co., Ltd. 76.55 7.20%

Total 675.20 63.54%

Other receivables

At the end of each reporting period, the company's other receivables are classified according to the nature of the payments as follows:

Unit: 10,000 yuan

Project December 31, 2025 December 31, 2024 Security deposit and deposit on December 31, 2023 1,390.28 3,474.98 3,312.66 Reserve fund and others 19.95 101.43 55.60

Subtotal 1,410.22 3,576.41 3,368.25

Less: Provision for bad debts 71.79 179.57 168.46

Total 1,338.43 3,396.84 3,199.80

At the end of each reporting period, the book values of the company's other receivables were RMB 31.998 million, RMB 33.9684 million and RMB 13.3843 million respectively, which were mainly composed of margins and deposits incurred in the process of conducting business.

As of December 31, 2025, the company’s top five other receivables with balances collected by debtors are as follows:

Unit: 10,000 yuan in other receivables

2025

total balance

Unit name Nature of payment December 31 Aging Proportion of bad debt provisions

Daily balance

(%)

China Electronics Technology Group Corporation No. 2

Security deposit 269.10 Within 1 year 19.08 13.45 Nineteen Research Institute

Department of Industry and Information Technology of Shandong Province Deposit 201.88 Within 3 years 14.32 10.09 AVIC International Gold Network (Beijing) Technology Co., Ltd.

Deposit 166.39 Within 1 year 11.80 8.32 Co., Ltd.

Sichuan Jiuzhou Electrical Appliance Group Co., Ltd.

Security deposit 111.95 Within 2 years 7.94 5.60 Company

Xinhua Tendering Co., Ltd. Deposit 70.00 Within 1 year 4.96 3.50

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China Electronics Cosi Technology Co., Ltd. Prospectus

Account for other receivables

2025

total balance

Unit name Nature of payment December 31 Aging Proportion of bad debt provisions

Daily balance

(%)

Total - 819.32 - 58.10 40.97

At the end of the reporting period, the balance of other receivables mainly represented the deposit agreed in the signed business contract.

Inventory

At the end of each reporting period, the company’s inventory details are as follows:

Unit: Ten thousand yuan December 31, 2025 December 31, 2024 Project on December 31, 2023

Book value Proportion Book value Proportion Book value Proportion Raw materials 32,508.68 30.44% 26,905.33 24.80% 33,746.14 28.84% Inventory goods 8,756.44 8.20% 10,117.87 9.33% 8,576.26 7.33% Work in progress 42,337.95 39.64% 38,870.59 35.83% 45,405.88 38.80% Contract fulfillment costs 22,617.01 21.17% 30,282.72 27.92% 26,342.83 22.51% Goods shipped 591.53 0.55% 2,296.41 2.12% 2,945.73 2.52%

Total 106,811.61 100.00% 108,472.91 100.00% 117,016.83 100.00%

At the end of each reporting period, the book values of the company's inventories were RMB 1,170,168,300, RMB 1,084,729,100, and RMB 1,068,116,100 respectively, accounting for 38.68%, 33.55%, and 29.26% of current assets respectively. The company's inventories mainly include raw materials, inventory goods, work-in-progress, contract performance costs and shipped goods, of which work-in-progress, contract performance costs and raw materials account for a larger proportion of the inventory.

(1) Reasons for main inventory changes

①Raw materials

The company's raw materials include components, integrated circuits, modules for system integration, metal and non-metal materials, and mechanical structural parts. At the end of each reporting period, the book values of raw materials were 337.4614 million yuan, 269.0533 million yuan and 325.0868 million yuan respectively, accounting for 28.84%, 24.80% and 30.44% of the inventory respectively. Among them, the book value of raw materials has declined at the end of 2024, mainly because the company's new generation products have gradually completed the production plan, and the procurement demand for related raw materials has decreased; in addition, the company has adopted an integrated supply chain procurement plan for raw material procurement management since 2024, further implemented supply chain integrated management by distinguishing raw material lead times, and reduced reserves of medium and short-cycle raw materials within a reasonable range, and the balance level of raw materials has decreased accordingly. At the end of 2025, the book value of raw materials increased, mainly due to the newly put into production sets of complete machines and complete parts products that year.

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China Electronics Cosi Technology Co., Ltd. Prospectus

As the number increases, the purchase demand for related raw materials rises.

②Inventory items

At the end of each reporting period, the book values of inventory goods were 85.7626 million yuan, 101.1787 million yuan and 87.5644 million yuan respectively, accounting for 7.33%, 9.33% and 8.20% of the inventory respectively. The company adopts a production model that combines "appropriate stocking, pre-production assembly and adjustment, and production based on sales." Under the stocking production model, the company combines sales and inventory conditions to maintain a reasonable inventory of mainstream models with larger sales volume. At the end of each reporting period, the company's inventory of goods accounted for the proportion of inventory remained at a reasonable level, with slight fluctuations.

③Products in progress

After the company's products are mainly raw materials put into production, the unfinished products mainly include complete machines to be assembled, complete components to be assembled and printed circuit boards. At the end of each reporting period, the book value of the company's products in progress was RMB 454.0588 million, RMB 388.7059 million and RMB 423.3795 million respectively, accounting for 38.80%, 35.83% and 39.64% of the inventory respectively. At the end of 2024, the book value of the company's products in progress declined, mainly because the company strengthened the management and control of products in progress and controlled the scale of pre-production, assembly and adjustment of products in progress. At the end of 2025, the book value of the company's products in progress increased, mainly due to the increase in the company's business scale and the corresponding increase in new investment in electronic measuring instruments.

④Contract performance costs

At the end of each reporting period, the book values of contract performance costs were 263.4283 million yuan, 302.8272 million yuan and 226.1701 million yuan respectively, accounting for 22.51%, 27.92% and 21.17% of the inventory respectively. The company mainly provides customized test system products for customers in the industrial electronics, aerospace, and communications industries. The test system is highly customized. The software and hardware equipment required before customer acceptance during the project implementation process and various installation services and labor costs incurred at the project site are contract performance costs. The company provides entrusted research and development services mainly to complete the client's development content and submit the developed products and technical results in accordance with the contract. All types of direct materials, labor costs, manufacturing expenses and others incurred before the client passes the acceptance of the entrusted development project are contract performance costs.

⑤Send the product

At the end of each reporting period, the book values of the goods shipped by the company were 29.4573 million yuan, 22.9641 million yuan and 5.9153 million yuan respectively, accounting for 2.52%, 2.12% and 0.55% of the inventory respectively. The company's goods are mainly composed of two parts: one part is the complete machine and complete component products that have been shipped according to the contract but have not yet recognized revenue. Most of these products can be recognized in the short term after the period and the cost is carried forward; the other part is loaned to customers.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Complete machines and complete component products for performance testing in complex environments.

(2) Provision for inventory depreciation provisions

At the end of each reporting period, the specific information on the provision for inventory depreciation provisions is as follows:

Unit: 10,000 yuan December 31, 2025

Project

Book balance Amount of price decline provision Proportion of raw materials 41,055.66 8,546.98 20.82% Inventory goods 11,891.35 3,134.91 26.36% Work in progress 45,394.54 3,056.60 6.73% Contract performance costs 24,076.99 1,459.99 6.06% goods shipped 593.83 2.30 0.39%

Total 123,012.37 16,200.76 13.17%

December 31, 2024

Project

Book balance Amount of price decline provision Proportion of raw materials 34,018.54 7,113.21 20.91% Inventory goods 14,526.67 4,408.80 30.35% Work in progress 40,952.87 2,082.28 5.08% Contract performance costs 31,586.48 1,303.75 4.13% goods shipped 2,325.36 28.95 1.25%

Total 123,409.92 14,937.01 12.10%

December 31, 2023

Project

Book balance Amount of price decline provision Proportion of raw materials 38,533.37 4,787.23 12.42% Inventory goods 13,292.31 4,716.05 35.48% Work in progress 47,520.56 2,114.68 4.45% Contract performance costs 27,739.11 1,396.28 5.03% goods shipped 3,003.74 58.01 1.93%

Total 130,089.09 13,072.26 10.05%

The company has formulated a prudent inventory provision policy based on corporate accounting standards and the company's actual situation. At the end of each reporting period, after conducting an inventory of the inventory, the company made or adjusted inventory depreciation provisions based on the lower of the inventory cost and net realizable value. The inventory depreciation provisions were 130.7226 million yuan, 149.3701 million yuan, and 162.0076 million yuan respectively, accounting for 10.05%, 12.10%, and 13.17% of the inventory book balance respectively.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Mainly composed of raw materials and inventory goods.

①Analysis of accrual of provision for price decline of raw materials

At the end of each reporting period, the company's raw material price reduction provisions were RMB 47.8723 million, RMB 71.1321 million and RMB 85.4698 million respectively, accounting for 12.42%, 20.91% and 20.82% of the balance of raw materials respectively. At the end of each reporting period, the company conducts an impairment test on the raw materials based on the inventory count, determines the net realizable value based on the amount that does not have the risk of sluggishness within a turnover period, and accrues or adjusts depreciation provisions based on the lower of the cost of the raw materials and the net realizable value. At the end of 2024, the company's provision for raw material price declines accounted for an increase in the proportion of the balance of raw materials. This was mainly due to the increase in the company's inventory of sluggish raw materials over time, and the net realizable value of this part of raw materials decreased. ② Analysis of accrual of provision for price decline of inventory goods

At the end of each reporting period, the company's provision for price decline of inventory goods was RMB 47.1605 million, RMB 44.0880 million and RMB 31.3491 million respectively, accounting for 35.48%, 30.35% and 26.36% of the balance of inventory goods respectively. The company determines the net realizable value of inventory goods based on the estimated selling price after deducting estimated sales expenses and related taxes. If the net realizable value is lower than the original book value, a corresponding provision for decline in price of inventory goods is made. At the end of each reporting period, the proportion of the company's inventory commodity price reduction provisions to the inventory commodity balance has decreased year by year. On the one hand, some long-term inventory commodities have been digested. On the other hand, after inventory and review, the company has scrapped some inventory commodities that have reached the end of life and have no need for use.

③Analysis on accrual of provision for product price decline

At the end of each reporting period, the company's product price decline provisions were 21.1468 million yuan, 20.8228 million yuan, and 30.566 million yuan respectively, accounting for 4.45%, 5.08%, and 6.73% of the book balance of products in progress. At the end of each reporting period, the company conducts an impairment test on products in progress based on the inventory count. For products in progress, inventory depreciation provisions are made based on the lower of cost and net realizable value. The net realizable value is determined by the estimated selling price of finished products that can be produced in the future minus the estimated costs to be incurred upon completion, estimated sales expenses and related taxes. ④ Analysis of provision for impairment of contract performance costs

At the end of each reporting period, the company's impairment provisions for contract performance costs were RMB 13.9628 million, RMB 13.0375 million, and RMB 14.5999 million respectively, accounting for 5.03%, 4.13%, and 6.06% of the book balance of contract performance costs respectively. The company's contract performance costs are project costs incurred for customized contracts and contracts that are being executed by entrusted research and development businesses. Project costs mainly include materials and self-made product costs, labor and outsourcing costs, depreciation and amortization expenses, and other expenses. At the end of each reporting period, the company deducts

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China Electronics Cosi Technology Co., Ltd. Prospectus

The amount after the estimated costs and expenses to be incurred when the project is accepted is recognized as the estimated net realizable value of the project, and an impairment provision is made based on the difference between the contract cost and the net realizable value.

⑤ Analysis of accrual of provisions for price decline of goods issued

At the end of each reporting period, the company's provisions for price decline of goods shipped were 580,100 yuan, 289,500 yuan, and 23,000 yuan respectively, accounting for 1.93%, 1.25%, and 0.39% of the book balance of goods shipped. The company's goods shipped mainly consist of complete machines, complete parts in transit, and customer borrowing. At the end of 2025, the company's provision for price decreases in goods shipped was relatively low, mainly because the inventory of long-term goods shipped has been significantly reduced as the company's management system has been optimized.

⑥Differences in the provision ratio for inventory devaluation and comparable companies in the same industry

At the end of each reporting period, the company's provision ratio for inventory devaluation is compared with that of comparable companies in the same industry as follows:

Project December 31, 2025 December 31, 2024 December 31, 2023 Puyuan Precision Electric 5.44% 6.10% 7.40% Dingyang Technology 3.87% 2.56% 2.35% Kunheng Shunwei 0.49% 0.33% 0.21% Comparable company average 3.27% 3.00% 3.32%

Issuer 13.17% 12.10% 10.05%

Note: The above data comes from the periodic reports and other information publicly disclosed by comparable companies.

As can be seen from the table above, the company's provision ratio for inventory depreciation provisions is higher than the average of comparable companies in the same industry, and the provision for inventory depreciation provisions is sufficient.

(3) The age of main inventories

At the end of each reporting period, the inventory age of various types of inventory of the company is as follows:

Unit: 10,000 yuan, %

December 31, 2025 December 31, 2024 Inventory category on December 31, 2023 Inventory age

Inventory amount Proportion Inventory amount Proportion Inventory amount Proportion Within 1 year 26,031.09 63.40 11,500.89 33.81 16,522.18 42.88

1-2 years 2,706.26 6.59 9,881.38 29.05 13,404.29 34.79Raw materials 2-3 years 3,919.34 9.55 6,544.35 19.24 4,369.31 11.34 More than 3 years 8,398.96 20.46 6,091.92 17.91 4,237.60 11.00

Total 41,055.66 100.00 34,018.54 100.00 38,533.37 100.00

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December 31, 2025 December 31, 2024 Inventory category on December 31, 2023 Inventory age

Inventory amount % Inventory amount % Inventory amount %

Within 1 year 6,880.99 57.87 7,095.80 48.85 6,061.13 45.60 1-2 years 922.13 7.75 1,855.28 12.77 1,654.75 12.45 Inventory goods 2-3 years 881.69 7.41 991.94 6.83 662.00 4.98 More than 3 years 3,206.54 26.97 4,583.65 31.55 4,914.43 36.97

Total 11,891.35 100.00 14,526.67 100.00 13,292.31 100.00

Within 1 year 38,326.11 84.43 32,470.82 79.29 43,276.43 91.07 1-2 years 4,048.55 8.92 6,498.02 15.87 3,822.42 8.04 Work in progress 2-3 years 1,765.34 3.89 1,562.32 3.81 421.71 0.89 More than 3 years 1,254.54 2.76 421.71 1.03 - -

Total 45,394.54 100.00 40,952.87 100.00 47,520.56 100.00

Within 1 year 19,334.80 80.30 17,951.80 56.83 25,691.47 92.62 1-2 years 2,992.80 12.43 12,788.89 40.49 1,172.79 4.23 Contract performance

2-3 years 1,123.39 4.67 316.39 1.00 582.62 2.10Cost

More than 3 years 626.00 2.60 529.40 1.68 292.23 1.05

Total 24,076.99 100.00 31,586.48 100.00 27,739.11 100.00

Within 1 year 593.83 100.00 2,233.59 96.05 2,894.14 96.35 1-2 years - - 20.18 0.87 109.60 3.65 Products shipped 2-3 years - - 71.58 3.08 - - More than 3 years - - - - - -

Total 593.83 100.00 2,325.36 100.00 3,003.74 100.00

Within 1 year 91,166.82 74.11 71,252.90 57.74 94,445.35 72.60 1-2 years 10,669.75 8.67 31,043.75 25.15 20,163.85 15.50Total 2-3 years 7,689.76 6.25 9,486.58 7.69 6,035.64 4.64 More than 3 years 13,486.04 10.96 11,626.68 9.42 9,444.26 7.26

Total 123,012.37 100.00 123,409.92 100.00 130,089.09 100.00

As of December 31, 2025, the company's inventory balance and main situation with an inventory age of more than 2 years are as follows:

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Unit: 10,000 yuan in the same category

Deposit for more than 2 years

Inventory Category Inventory Balance Main Contents and Reasons for Formation

balance of goods

Proportion

① For specific types of components, integrated circuits and other materials purchased for production, due to changes in the corresponding product market or design changes, the corresponding raw material inventory age is longer;

② Specific types of components, integrated circuits and other raw materials purchased for scientific research 12,318.31 30.00%

Because R&D requires multiple rounds of tests and multiple alternatives, there is a lot of stocking, and the corresponding raw materials have a longer shelf life;

③ Some types of components and integrated circuits are more difficult to purchase and the procurement cycle is longer. The company's strategic reserves lead to a longer inventory age. ① Some complete machines and components transferred free of charge from No. 41 Institute in 2019 have a long shelf life due to industry product updates and other reasons;

②The company started producing specific models of products based on market forecasts and stocking needs, but the sales of some products were lower than expected, and the corresponding inventory age was 4,088.22 34.38% older than the inventory products.

long;

③ Due to the scale effect, the company puts into production a large number of microwave components at a time. As the market demand is gradually digested, the corresponding warehouse life will be longer.

Based on market forecasts and stocking needs, the company puts into production specific models of products in process 3,019.88 6.65%. For those products that do not form sales orders due to market reasons, the company does not store them as finished products after debugging.

① The cycle of entrusted research and development projects is generally 1 to 4 years, and the contract performance costs of entrusted research and development projects that have been invested but not yet accepted have a relatively long shelf life;

Contract performance costs 1,749.39 7.27%

② The project cycle of customized contracts is generally 1 to 2 years, but some projects are difficult to implement, and the verification, testing and delivery acceptance cycles are long, and the corresponding contract performance cost inventory is relatively long.

Other current assets

At the end of each reporting period, the details of the company’s other current assets are as follows:

Unit: 10,000 yuan

Project December 31, 2025 December 31, 2024 December 31, 2023

Input tax to be deducted 57.06 0.57 137.84

Invoiced tax amount to be settled 228.64 48.99 83.27

Prepaid income tax 18.95 149.06 667.13

Listing and issuance agency fee 367.92 - -

Total 672.58 198.63 888.24

During the reporting period, the company's other current assets mainly consisted of the value-added tax input tax to be obtained with the deduction voucher, and the value-added tax to be obtained.

The settlement consists of the invoiced tax amount, prepaid income tax and listing and issuance intermediary fees.

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(3) Analysis of non-current assets

At the end of each reporting period, the composition of the company’s non-current assets is as follows:

Unit: Ten thousand yuan December 31, 2025 December 31, 2024 Project on December 31, 2023

Amount Proportion Amount Proportion Amount Proportion Investment real estate 292.98 0.54% 409.08 0.77% 428.01 0.77%Fixed assets 35,398.61 65.64% 35,461.97 67.16% 37,920.37 68.14%Right-of-use assets 2,058.79 3.82% 3,346.90 6.34% 5,638.96 10.13% Intangible assets 5,086.01 9.43% 4,559.87 8.64% 3,823.87 6.87% Deferred income tax assets 8,618.63 15.98% 7,615.58 14.42% 6,525.98 11.73% Other non-current assets 2,470.46 4.58% 1,409.45 2.67% 1,312.06 2.36%

Total non-current assets 53,925.48 100.00% 52,802.86 100.00% 55,649.26 100.00%

At the end of each reporting period, the company's non-current assets were RMB 556.4926 million, RMB 528.0286 million and RMB 539.2548 million respectively. The company's non-current assets structure is relatively stable, mainly composed of fixed assets, intangible assets, right-of-use assets, deferred income tax assets and other non-current assets. The specific accounts are as follows:

Fixed assets

(1) Composition of fixed assets

At the end of each reporting period, the company’s fixed assets are as shown in the table below:

Unit: 10,000 yuan December 31, 2025

Project

Original book value Accumulated depreciation Impairment provision Book value Houses and buildings 16,342.58 5,345.29 - 10,997.29 Machinery and equipment 18,553.93 12,166.14 625.85 5,761.94 Transportation equipment 103.38 96.88 - 6.50 Electronic equipment 41,126.26 19,233.92 3,558.35 18,333.99Office and others 987.22 683.55 4.78 298.89

Total 77,113.37 37,525.78 4,188.98 35,398.61

December 31, 2024

Project

Original book value Accumulated depreciation Impairment provision Book value Houses and buildings 16,200.93 4,533.16 - 11,667.77 Machinery and equipment 17,824.78 10,748.73 625.89 6,450.16 Transportation equipment 103.38 96.60 - 6.77

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Electronic equipment 35,446.66 14,497.63 3,845.13 17,103.90Office and others 835.38 597.23 4.78 233.37

Total 70,411.12 30,473.35 4,475.80 35,461.97

December 31, 2023

Project

Original book value Accumulated depreciation Impairment provision Book value Houses and buildings 15,371.63 3,757.84 - 11,613.79 Machinery and equipment 17,736.78 8,866.80 648.92 8,221.05 Transportation equipment 103.38 96.32 - 7.05 Electronic equipment 32,540.96 10,471.85 4,311.08 17,758.04Office and others 818.94 491.28 7.23 320.43

Total 66,571.68 23,684.09 4,967.23 37,920.37

At the end of each reporting period, the book values of the company's fixed assets were 379.2037 million yuan, 354.6197 million yuan and 353.9861 million yuan respectively, accounting for 68.14%, 67.16% and 65.64% of non-current assets respectively. Fixed assets mainly include houses and buildings, machinery and equipment, transportation equipment, electronic equipment, offices and others.

The issuer's electronic equipment is mainly various types of production and testing instruments and equipment transferred from No. 41 through free transfer in 2019. The issuer made large provision for impairment on the book of electronic equipment, mainly because the depreciation period before the asset was transferred for free was set to be long, resulting in a relatively high book value. After asset evaluation, asset impairment provision was made based on the difference between the individual asset's evaluation value and the book value.

(2) Consolidation of projects under construction

Unit: RMB 10,000 per year Main content Amount transferred to fixed assets in this period 2025 N/A - 2024 A9 factory building decoration and renovation project 837.72 2023 Training center fifth and sixth floor renovation project 35.67

From 2023 to 2024, the amounts transferred into fixed assets from the company's projects under construction are 356,700 yuan and 8,377,200 yuan respectively, which are formed by the company's renovation of office plants.

(3) Comparison of fixed assets depreciation policy with companies in the same industry

Unit: Year Company name Depreciation policy Houses and buildings Machinery and equipment Transportation equipment Electronic equipment Office and other Puyuan Precision Electric Depreciation method Yearly average method Yearly average method Yearly average method Yearly average method Yearly average method

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Depreciation life 20 5 or 10 3-5 3 or 5 5 Residual value rate 5.00% 5.00% 5.00% 5.00% 5.00% Depreciation method - Year average method Year average method Year average method Year average method Dingyang Technology Depreciation life - 5 5 3 5 Residual value rate - 3.00% 3.00% 3.00% 3.00% depreciation method Average life method Average life method - Average life method Average life method Kunheng Hengshunwei Depreciation life 10, 20 3, 10 - 3, 10 3, 10 Residual value rate 5.00% 5.00% - 5.00% 5.00% Depreciation method Average life method Average life method Average life method Average life method Average life method Issuer Depreciation life 5-40 5-10 5 5 5 Residual value rate 5.00% 5.00% 5.00% 5.00% 5.00% Note: The above data comes from the periodic reports and other information publicly disclosed by comparable companies.

During the reporting period, there were no major differences in the company's fixed asset depreciation policy compared with comparable listed companies.

Right-of-use assets

At the end of each reporting period, the company's right-of-use assets are as shown in the following table:

Unit: 10,000 yuan

December 31, 2025

Item Original book value Accumulated depreciation Impairment provision Book value Houses and buildings 4,332.18 2,688.57 - 1,643.61 Machinery and equipment 765.24 350.05 - 415.18

Total 5,097.42 3,038.63 - 2,058.79

December 31, 2024

Item Original book value Accumulated depreciation Impairment provision Book value Houses and buildings 5,008.65 2,821.11 - 2,187.54 Machinery and equipment 7,063.86 5,904.50 - 1,159.36

Total 12,072.51 8,725.61 - 3,346.90

December 31, 2023

Item Original book value Accumulated depreciation Impairment provision Book value Houses and buildings 4,070.13 2,404.94 - 1,665.20 Machinery and equipment 9,018.92 5,045.15 - 3,973.76

Total 13,089.05 7,450.09 - 5,638.96

At the end of each reporting period, the book values of the company's right-of-use assets were RMB 56.3896 million, RMB 33.4690 million and RMB 20.5879 million respectively, accounting for 10.13%, 6.34% and 3.82% of non-current assets respectively. Company ambassador

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The right-to-use assets mainly include leased buildings, machinery and equipment.

Intangible assets

At the end of each reporting period, the company’s intangible assets are as follows:

Unit: 10,000 yuan December 31, 2025

Item Original book value Accumulated amortization Impairment provision Book value Land use rights 1,065.84 614.98 - 450.86 Software 5,976.21 1,595.00 - 4,381.21 Patent rights 429.20 175.26 - 253.94

Total 7,471.25 2,385.24 - 5,086.01

December 31, 2024

Item Original book value Accumulated amortization Impairment provision Book value Land use rights 1,065.84 525.30 - 540.54 Software 4,760.91 1,038.44 - 3,722.47 Patent rights 429.20 132.34 - 296.86

Total 6,255.94 1,696.07 - 4,559.87

December 31, 2023

Item Original book value Accumulated amortization Impairment provision Book value Land use rights 1,065.84 435.62 - 630.22 Software 3,480.09 626.22 - 2,853.87 Patent rights 429.20 89.42 - 339.78

Total 4,975.13 1,151.25 - 3,823.87

At the end of each reporting period, the book values of the company's intangible assets were 38.2387 million yuan, 45.5987 million yuan and 50.8601 million yuan respectively, accounting for 6.87%, 8.64% and 9.43% of non-current assets respectively. The company's intangible assets include land use rights, software and patent rights, which are amortized normally according to the company's accounting policy during the reporting period. At the end of each reporting period, the company's intangible assets showed no signs of impairment and no impairment provisions were made.

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Deferred income tax assets

(1) Deferred income tax assets without offset

Unit: Ten thousand yuan December 31, 2025 December 31, 2024 Project on December 31, 2023

Deductible temporary deferred income Deductible temporary deferred income Deductible temporary deferred income

Sexual differences Tax assets Sexual differences Tax assets Sexual differences Tax assets Assets minus

16,456.85 2,468.53 15,133.41 2,270.01 13,234.12 1,985.12 Value preparation

credit minus

7,916.40 1,187.46 6,645.35 996.8 4,983.69 747.55 value preparation

Deferred collection

26,924.67 4,038.70 23,634.58 3,545.19 18,646.27 2,796.94 profit

internal communication

Yi Weishi 2,045.94 306.89 1,745.48 261.82 1,990.38 298.56Current profit

Deductible

4,076.39 629.00 3,432.31 514.85 4,404.32 660.65Loss

Lease negative

1,979.13 296.87 3,526.30 528.95 5,886.71 883.01Debt

Total 59,399.38 8,927.45 54,117.42 8,117.61 49,145.49 7,371.82

(2) Deferred income tax assets or liabilities presented on a net basis after offsetting

Unit: Ten thousand yuan December 31, 2025 December 31, 2024 December 31, 2023

Deferred income tax Deferred after offset Deferred income tax Deferred after offset Deferred income tax Deferred items after offset

Assets and Liabilities Income Tax Assets Assets and Liabilities Income Tax Assets Assets and Liabilities Income Tax Assets

Offset amount or liability balance Offset amount or liability balance Offset amount or liability balance deferred income

308.82 8,618.63 502.03 7,615.58 845.84 6,525.98Tax assets

deferred income

308.82 - 502.03 - 845.84 - Tax liabilities

At the end of each reporting period, the company's deferred income tax asset balances were RMB 65.2598 million, RMB 76.1558 million and RMB 86.1863 million respectively, accounting for 11.73%, 14.42% and 15.98% of non-current assets respectively. During the reporting period, the company's deferred income tax assets mainly came from asset impairment, credit impairment, deferred income, etc.

Deduct temporary differences.

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Other non-current assets

Unit: Ten thousand yuan December 31, 2025 December 31, 2024 Project on December 31, 2023

book value book value book value

Prepaid equipment payment 329.88 108.88 557.15 Unexpired warranty deposit 2,140.58 1,300.57 754.91

Total 2,470.46 1,409.45 1,312.06

At the end of each reporting period, the book values of the company's other non-current assets were RMB 13.1206 million, RMB 14.0945 million and RMB 24.7046 million respectively, accounting for 2.36%, 2.67% and 4.58% of non-current assets respectively, mainly including prepaid equipment payments and unexpired warranty deposits.

(4) Analysis of asset turnover capacity

Accounts receivable turnover rate

Unit: Sub-company name 2025 2024 2023 Puyuan Precision 4.98 5.02 5.61 Dingyang Technology 6.97 6.99 5.99 Kunheng Shunwei 1.02 0.93 1.26 Comparable company average 4.32 4.31 4.29

Issuer 3.14 3.17 5.29

Note 1: The above data comes from the periodic reports and other information publicly disclosed by comparable companies.

Note 2: Accounts receivable turnover rate = operating income/average balance of accounts receivable.

During the reporting period, the company's accounts receivable turnover rates were 5.29, 3.17 and 3.14 respectively, showing a downward trend year by year. This was mainly due to the rapid growth of the company's accounts receivable balance during the reporting period, and the growth rate of operating income was not as high as the growth rate of the accounts receivable balance. Compared with comparable listed companies in the same industry, the company's receivables turnover rate was higher than the industry average in 2023 and lower than the industry average in 2024. Comparable companies in the same industry, Puyuan Jingdian and Dingyang Technology, have a sales model based on distribution, strict credit period management, and a relatively high accounts receivable turnover rate; Kunheng Shunwei's sales model is similar to the company, both focusing on direct sales, with a relatively high proportion of state-owned enterprise customers, and a relatively low accounts receivable turnover rate that will continue to decline from 2023 to 2024.

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Inventory turnover rate

Unit: Sub-company 2025 2024 2023 Puyuan Precision Electric 1.27 1.24 1.47 Dingyang Technology 0.99 0.85 1.01 Kunheng Shunwei 0.80 1.03 0.93 Comparable company average 1.02 1.04 1.13

Issuer 1.02 0.82 0.92

Note 1: The above data comes from the periodic reports and other information publicly disclosed by comparable companies.

Note 2: Inventory turnover rate = operating cost/average inventory balance.

During the reporting period, the company’s inventory turnover rates were 0.92, 0.82 and 1.02, lower than the industry average. The main reasons include: (1) The main business of Puyuan Fine Electronics and Dingyang Technology is the sales of complete products, mainly digital oscilloscopes, signal analyzers, and signal generators. However, the test systems and entrusted development business of the issuer, which accounts for a high proportion of the main business, have a relatively long cycle, which makes the issuer The inventory turnover rate is lower than that of the above two comparable companies; (2) Kunheng Shunwei's inventory turnover rate is relatively small compared to the issuer, but still higher than that of the issuer. The main reason is that Kunheng Shunwei's business structure is similar to that of the issuer, and there is also a customized development product and system solution business, and the issuer's entrusted development business implementation cycle is within 1-4 years, which is higher than that of general system integration business, so the issuer's inventory turnover rate is slightly lower than Kunheng Shunwei. (3) The issuer’s business scale is much larger than that of comparable companies in the same industry. The annual revenue of comparable companies in the same industry is in the range of 200 million to 800 million yuan, while the issuer’s annual revenue is around 2 billion to 2.5 billion yuan. The difference in overall business scale leads to certain differences in inventory turnover rates.

Total asset turnover rate

Unit: times

Company name 2025 2024 2023 Puyuan Jingdian 0.24 0.22 0.22Dingyang Technology 0.35 0.30 0.30Kunheng Shunwei 0.21 0.20 0.24Comparable company average 0.27 0.24 0.25

Issuer 0.60 0.56 0.59

Note 1: The above data comes from the periodic reports and other information publicly disclosed by comparable companies.

Note 2: Total asset turnover rate = operating income/average total assets.

During the reporting period, the company's total asset turnover rates were 0.59, 0.56 and 0.60 respectively, which were higher than the industry average.

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Flat.

13. Analysis of solvency, liquidity and sustainable operating capabilities

(1) Liability status analysis

At the end of each reporting period, the composition of the company's liabilities is as shown in the following table:

Unit: Ten thousand yuan December 31, 2025 December 31, 2024 Project on December 31, 2023

Amount Percentage Amount Percentage Amount Percentage Current liabilities 133,320.21 82.61% 138,246.19 84.64% 140,723.27 86.59% Non-current liabilities 28,073.15 17.39% 25,093.05 15.36% 21,799.44 13.41%

Total 161,393.36 100.00% 163,339.24 100.00% 162,522.71 100.00%

At the end of each reporting period, the company's total liabilities were RMB 1,625.2271 million, RMB 1,633.3924 million and RMB 1,613.9336 million respectively, of which current liabilities accounted for 86.59%, 84.64% and 82.61% respectively. During the reporting period, the company's liability structure was stable.

Analysis of current liabilities

At the end of each reporting period, the composition of the company’s current liabilities is as follows:

Unit: Ten thousand yuan December 31, 2025 December 31, 2024 Project on December 31, 2023

Amount Percentage Amount Percentage Amount Percentage Notes payable 27,218.94 20.42% 30,902.06 22.35% 22,254.66 15.81% Accounts payable 62,995.20 47.25% 45,836.15 33.16% 57,896.46 41.14% Contract liabilities 26,452.89 19.84% 43,342.59 31.35% 40,058.76 28.47% Employee benefits payable 6,129.72 4.60% 4,466.76 3.23% 4,253.59 3.02% Taxes payable 5,633.84 4.23% 7,094.69 5.13% 6,782.65 4.82% Other payables 3,479.14 2.61% 2,321.35 1.68% 3,957.40 2.81% Due within one year

830.65 0.62% 1,865.60 1.35% 2,733.54 1.94% Non-current liabilities

Other current liabilities 579.83 0.43% 2,417.00 1.75% 2,786.20 1.98%

Total current liabilities 133,320.21 100.00% 138,246.19 100.00% 140,723.27 100.00%

At the end of each reporting period, the company's current liabilities were RMB 1,407,232,700, RMB 1,382,461,900 and RMB 1,333,202,100 respectively. The company's current liability structure is relatively stable, mainly consisting of notes payable, accounts payable, contract liabilities, employee compensation payable, taxes payable, etc. The specific accounts are as follows:

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(1) Notes payable

At the end of each reporting period, the company's bills payable are as follows:

Unit: 10,000 yuan

Item December 31, 2025 December 31, 2024 Bank acceptance bill on December 31, 2023 1,601.45 2,824.47 1,506.60 Commercial acceptance bill 25,617.49 28,077.58 20,748.05

Total 27,218.94 30,902.06 22,254.66

At the end of each reporting period, the company's notes payable balances were 222.5466 million yuan, 309.0206 million yuan and 272.1894 million yuan respectively, accounting for 15.81%, 22.35% and 20.42% of current liabilities respectively. The company's bills payable are mainly commercial acceptance bills. In order to improve the efficiency of capital use in normal production and operations, the company appropriately uses bills to pay part of the money according to the agreement with its suppliers.

(2) Accounts payable

At the end of each reporting period, the company's accounts payable status is as shown in the following table:

Unit: 10,000 yuan

Item December 31, 2025 December 31, 2024 Payable for goods on December 31, 2023 61,389.21 44,853.08 56,751.20 Payable for engineering equipment 942.88 476.34 615.48 Other payables 663.12 506.73 529.78

Total 62,995.20 45,836.15 57,896.46

At the end of each reporting period, the company's accounts payable amounted to RMB 578.9646 million, RMB 458.3615 million and RMB 629.9520 million respectively, accounting for 41.14%, 33.16% and 47.25% of current liabilities respectively. The company's accounts payable mainly include payments due to suppliers. From 2023 to the end of 2024, the company's accounts payable balance showed a downward trend. This was mainly due to the fact that on the one hand, the company switched settlement tools and part of the payables were settled with bills. On the other hand, the company actively repaid suppliers' accounts, resulting in a decrease in the overall scale of accounts payable. The balance of the company's accounts payable at the end of 2025 has increased compared with the end of 2024, mainly due to the increase in purchases in 2025.

During the reporting period, there were no important accounts payable with an aging of more than 1 year.

(3) Contract liabilities

At the end of each reporting period, the company's contract liabilities are as shown in the following table:

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Unit: 10,000 yuan

Item December 31, 2025 December 31, 2024 Advance payment for goods received on December 31, 2023 26,452.89 43,342.59 40,058.76

Total 26,452.89 43,342.59 40,058.76

At the end of each reporting period, the company's contract liability amounts were RMB 400,587,600, RMB 433,425,900, and RMB 264,528,900 respectively, which were mainly prepayments received from customers.

(4) Employee compensation payable

At the end of each reporting period, the company's employee remuneration payable is as shown in the following table:

Unit: 10,000 yuan

Item December 31, 2025 December 31, 2024 Short-term compensation on December 31, 2023 6,072.88 4,112.67 3,914.81 Post-employment benefits - defined contribution plan 56.85 354.09 338.78

Total 6,129.72 4,466.76 4,253.59

The company's employee compensation payable mainly consists of short-term compensation (salary, social security, provident fund, bonuses, allowances and subsidies, etc.) and post-employment benefits. At the end of each reporting period, the company's employee benefits payable were RMB 42.5359 million, RMB 44.6676 million and RMB 61.2972 million respectively, accounting for 3.02%, 3.23% and 4.60% of current liabilities respectively.

(5) Taxes payable

At the end of each reporting period, the company's tax payable status is as shown in the following table:

Unit: 10,000 yuan

Item December 31, 2025 December 31, 2024 Value-added tax on December 31, 2023 2,648.78 5,547.21 5,620.71 Corporate income tax 1,476.98 - - Urban maintenance and construction tax 249.33 334.47 329.54 Education fee surcharge 106.85 143.34 141.23Local education surcharge 71.24 95.56 94.15Real estate tax 37.70 39.58 38.52Land use tax 10.15 10.15 10.15Stamp duty 58.61 45.21 37.48Personal income tax 974.19 878.06 510.04 Other taxes and fees - 1.10 0.82

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Total 5,633.84 7,094.69 6,782.65

At the end of each reporting period, the company's tax payable balances were RMB 67.8265 million, RMB 70.9469 million and RMB 56.3384 million respectively, accounting for 4.82%, 5.13% and 4.23% of current liabilities respectively. At the end of each reporting period, the company's taxes payable mainly consisted of value-added tax, corporate income tax, urban maintenance and construction tax, etc., and the amount of taxes payable was relatively stable.

(6) Other payables

At the end of each reporting period, the company's other payables are as shown in the table below:

Unit: 10,000 yuan

Item December 31, 2025 December 31, 2024 Unit current accounts on December 31, 2023 2,194.08 1,270.92 2,711.00 Employee reimbursement 726.75 532.67 434.95 Other temporary receipts and pending payment 558.32 517.76 811.44

Total 3,479.14 2,321.35 3,957.40

At the end of each reporting period, the company's other payable balances were 39.574 million yuan, 23.2135 million yuan and 34.7914 million yuan respectively, accounting for 2.81%, 1.68% and 2.61% of current liabilities respectively. Other payables at the end of each reporting period mainly include corporate current accounts, employee reimbursements and other temporary receipts and payments.

(7) Non-current liabilities due within one year

At the end of each reporting period, the company's non-current liability balances due within one year were 27.3354 million yuan, 18.656 million yuan, and 8.3065 million yuan respectively, accounting for 1.94%, 1.35%, and 0.62% of current liabilities respectively. They were mainly lease liabilities due within one year.

(8) Other current liabilities

At the end of each reporting period, the company's other current liabilities were 27.862 million yuan, 24.170 million yuan, and 5.7983 million yuan respectively, accounting for 1.98%, 1.75%, and 0.43% of current liabilities respectively, which were the output tax to be written off.

Analysis of non-current liabilities

At the end of each reporting period, the composition of the company's non-current liabilities is as follows:

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Unit: Ten thousand yuan December 31, 2025 December 31, 2024 Project on December 31, 2023

Amount Percentage Amount Percentage Amount Percentage Lease liabilities 1,148.47 4.09% 1,458.47 5.81% 3,153.17 14.46% Deferred income 26,924.67 95.91% 23,634.58 94.19% 18,646.27 85.54% non-current liabilities

28,073.15 100.00% 25,093.05 100.00% 21,799.44 100.00%

total

At the end of each reporting period, the company's non-current liabilities were RMB 217.9944 million, RMB 250.9305 million and RMB 280.7315 million respectively, mainly composed of lease liabilities and deferred income. The details of each account are as follows:

(1) Lease liabilities

At the end of each reporting period, the company's lease liability balances were 31.5317 million yuan, 14.5847 million yuan and 11.4847 million yuan respectively, accounting for 14.46%, 5.81% and 4.09% of non-current liabilities respectively.

(2) Deferred income

At the end of each reporting period, the company's deferred income was RMB 186.4627 million, RMB 236.3458 million and RMB 269.2467 million respectively, accounting for 85.54%, 94.19% and 95.91% of non-current liabilities respectively, mainly government subsidies related to income.

(2) Solvency analysis

Analysis of the company’s solvency

At the end of each reporting period, the company's main debt repayment capacity indicators are as follows:

December 31, 2025 December 31, 2024 Main financial indicators as of December 31, 2023

/2025 /2024 /2023 Current ratio (times) 2.74 2.34 2.15 Quick ratio (times) 1.94 1.55 1.32 Asset-liability ratio (consolidated) 38.53% 43.43% 45.37% EBITDA

54,321.69 36,602.63 27,972.88 profit (10,000 yuan)

Interest coverage ratio (times) 488.06 158.12 49.57 (1) Current ratio and quick ratio

At the end of each reporting period, the company's current ratios were 2.15, 2.34 and 2.74 respectively, and the quick ratios were 1.32, 1.55 and 1.94 respectively.

During the reporting period, the current ratio and quick ratio were both greater than 1 and showing an upward trend. The company's delivery capability was normal.

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There is no major debt repayment pressure or liquidity problem.

(2) Asset-liability ratio

At the end of each reporting period, the company's consolidated statement asset-liability ratios were 45.37%, 43.43% and 38.53% respectively, showing a downward trend year by year. The company's capital structure has been continuously optimized and there is no great debt repayment pressure.

(3) Earnings before interest, taxes, depreciation and amortization and interest coverage ratio

During the reporting period, the company's profits before interest, tax, depreciation and amortization were 279.7288 million yuan, 366.0263 million yuan, and 543.2169 million yuan respectively, and the interest coverage ratios were 49.57, 158.12, and 488.06 respectively, maintaining a relatively high level. The company's asset liquidity and short-term debt repayment ability are strong, and the liquidity risk it faces is low.

Comparative analysis of debt solvency with the same industry

At the end of each reporting period, the comparison of the company's solvency indicators with those of comparable listed companies is as follows:

December 31, 2025 December 31, 2024 December 31, 2023

Debt Service Index Company Name

day day day

Puyuan Jingdian 6.50 4.27 7.33 Dingyang Technology 12.70 14.82 18.39 Current ratio (times) Kunheng Shunwei 5.42 7.44 9.55 Comparable company average 8.21 8.85 11.76

Issuer 2.74 2.34 2.15

Puyuan Jingdian 5.62 3.83 6.71 Dingyang Technology 11.04 12.57 16.01 Quick ratio (times) Kunheng Shunwei 4.47 6.66 8.69 Comparable company average 7.04 7.69 10.47

Issuer 1.94 1.55 1.32

Puyuan Jingdian 11.82% 17.78% 11.53% Dingyang Technology 8.90% 8.58% 6.06% Asset-liability ratio (total

Kunheng Shunwei 16.68% 17.59% 11.39% combined)

Comparable company average 12.47% 14.65% 9.66%

Issuer 38.53% 43.43% 45.37%

Note: The above data comes from the periodic reports and other information publicly disclosed by comparable companies.

During the reporting period, the issuer's current ratio and quick ratio were lower than the average of comparable companies, and the asset-liability ratio was higher than the average of comparable companies. This was mainly because the comparable companies were listed companies and had obtained financing larger than their operating scale through issuance, listing, refinancing, etc. in recent years, making the asset scale much larger than the liability scale and the current ratio

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China Electronics Cosi Technology Co., Ltd. Prospectus

The ratio and quick ratio are higher, and the asset-liability ratio is lower. During the reporting period, the issuer's current assets and quick assets were both greater than its current liabilities, the asset-liability ratio was good, the company's delivery capabilities were normal, and there was no major debt repayment pressure or liquidity problems.

(3) Specific implementation of dividend distribution during the reporting period

The company’s dividend distribution during the reporting period is as follows:

On October 16, 2024, the company held the first extraordinary shareholders meeting of 2024, reviewed and approved the 2023 profit distribution plan, and distributed a total of 112.2772 million yuan in cash dividends to all shareholders.

As of the signing date of this prospectus, all the above dividend distributions have been implemented.

(4) Cash flow statement analysis

During the reporting period, the company’s cash flow composition is as follows:

Unit: 10,000 yuan

Project 2025 2024 Net cash flow from operating activities in 2023 50,499.83 23,175.29 11,369.79 Net cash flow from investing activities -6,304.64 -5,826.48 -17,593.88 Net cash flow from financing activities -1,528.09 -14,517.12 -10,864.80 Impact of exchange rate changes on cash and cash equivalents 86.94 17.60 14.53 Net increase in cash and cash equivalents 42,754.04 2,849.30 -17,074.37 Closing balance of cash and cash equivalents 162,747.28 119,993.23 117,143.94

Cash flow analysis from operating activities

During the reporting period, the company’s cash flow from operating activities was as follows:

Unit: 10,000 yuan

Item 2025 2024 Cash received from selling goods and providing services in 2023 233,522.14 203,589.14 193,172.54 Tax returns received - - - Cash received related to other operating activities 21,986.35 9,874.34 9,031.05 Subtotal of cash inflows from operating activities 255,508.50 213,463.48 202,203.58 Cash paid for purchasing goods and receiving services 116,960.95 105,779.28 110,640.15 Cash paid to and for employees 60,592.45 57,085.04 56,154.80 Various taxes paid 17,917.29 12,502.04 10,770.64 Cash paid other related to operating activities 9,537.97 14,921.82 13,268.20

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China Electronics Cosi Technology Co., Ltd. Prospectus

Item 2025 2024 Subtotal cash outflow from operating activities in 2023 205,008.66 190,288.18 190,833.80 Net cash flow from operating activities 50,499.83 23,175.29 11,369.79

During the reporting period, the net cash flows generated by the company's operating activities were RMB 113.6979 million, RMB 231.7529 million and RMB 504.9983 million respectively, showing an increasing trend year by year.

During the reporting period, the company’s matching of net cash flow from operating activities and net profit is as follows:

Unit: 10,000 yuan

Item 2025 2024 2023 Net profit 43,821.16 27,458.88 18,987.06 Plus: asset impairment provision 1,323.44 1,899.29 4,206.83 Credit impairment provision 1,281.77 1,661.81 1,698.12 Depreciation of fixed assets and investment real estate 7,185.84 7,179.78 5,980.38 Depreciation of right-of-use assets 1,523.21 1,944.79 2,972.85 Amortization of intangible assets 689.16 544.82 413.41 Disposal of fixed assets, intangible assets and other long-term assets

-32.13 -289.96 -41.77Loss (income is listed with "-")

Loss on scrapping of fixed assets (income is listed with "-") 7.31 -16.71 -1.38 Financial expenses (income is listed with "-") 5.10 151.48 360.81 Decrease in deferred income tax assets (increase is listed with "-") -1,003.05 -1,089.60 -828.32 Decrease in inventory (increase is listed with "-") 397.55 6,679.16 19,937.35 Decrease in operating receivables (increases are filled in with “-”

-2,919.55 -27,468.06 -21,449.67 columns)

Increase in operating payables (decreases are filled in with “-”

-2,746.27 3,653.74 -21,545.93 columns)

Others 966.30 865.89 680.03 Net cash flow generated from operating activities 50.499.83 23,175.29 11,369.79

During the reporting period, there was a certain difference between the company's net cash flow generated from operating activities and the net profit for the corresponding period, which was mainly caused by changes in asset impairment provisions, depreciation, inventories, operating receivables and operating payables.

Cash flow analysis of investing activities

Unit: 10,000 yuan

Project 2025 2024 Disposal of fixed assets, intangible assets and other long-term assets recovery in 2023

1.62 8.77 4.94 Net cash

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China Electronics Cosi Technology Co., Ltd. Prospectus

Project 2025 2024 Subtotal cash inflow from investing activities in 2023 1.62 8.77 4.94 Payment for purchase and construction of fixed assets, intangible assets and other long-term assets

6,306.26 5,835.25 17,598.82 in cash

Subtotal of cash outflows from investing activities 6,306.26 5,835.25 17,598.82 Net cash flow generated from investing activities -6,304.64 -5,826.48 -17,593.88

During the reporting period, the net cash flows generated by the company's investment activities were -175.9388 million yuan, -58.2648 million yuan and -63.0464 million yuan respectively, which were mainly investment expenditures on fixed assets and intangible assets.

Cash flow analysis of financing activities

Unit: 10,000 yuan

Item 2025 2024 2023 Other cash received related to financing activities 501.87 - 4,006.68 Subtotal of cash inflows from financing activities 501.87 - 4,006.68 Cash paid for distribution of dividends, profits or repayment of interest - 11,227.72 11,559.15 Payment of other cash related to financing activities 2,029.96 3,289.39 3,312.33 Subtotal of cash outflows from financing activities 2,029.96 14,517.12 14,871.49 Net cash flow from financing activities -1,528.09 -14,517.12 -10,864.80

During the reporting period, the net cash flows generated by the company's financing activities were -108.648 million yuan, -145.1712 million yuan and -15.2809 million yuan respectively, which were mainly caused by dividend distribution, payment of deposits and payment of principal and interest on lease liabilities.

(5) Liquidity risk analysis

At the end of each reporting period, the company's liabilities are mainly composed of current liabilities, which are mainly operating liabilities formed by raw material procurement and advance receipts. During the reporting period, the company's current ratio and quick ratio showed an upward trend, the company's operating conditions and cash flow were in good condition, its major customers had good qualifications, and its cooperation with banks was normal, so the possibility of liquidity risk was small. As the company's customers continue to expand and its sales scale continues to expand, the company's future cash inflows will be stable and sustainable.

(6) Analysis of sustainable operating capabilities

The company has achieved obvious competitive advantages in the field of electronic measuring instrument products. As the company's technical level continues to improve and product performance continues to be upgraded, the market share of the company's products will continue to increase. Its main products and services have broad market prospects, and its future development plans are achievable. At the same time, the company will use this issuance

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China Electronics Cosi Technology Co., Ltd.'s new share prospectus and listing are an opportunity to further consolidate and improve the company's market position and core competitiveness by implementing investment projects with raised funds to expand production scale, enhance research and development capabilities, supplement working capital, and enhance the company's sustainable profitability.

Currently and in the foreseeable future, there are no matters that will have a significant adverse impact on the company's ability to continue operating. The main risk factors affecting the company's ability to continue operating have been disclosed in "Section 3 Risk Factors".

Major investments or capital expenditures, major asset and business restructuring, equity acquisitions and mergers during the reporting period, etc.

(1) Major capital expenditures during the reporting period

During the reporting period, cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets were RMB 175.9882 million, RMB 58.3525 million and RMB 63.0626 million respectively.

Except for the above expenditures, the company had no other major capital expenditures during the reporting period.

(2) foreseeable major capital expenditure plans in the future

As of the signing date of this prospectus, the company's foreseeable major capital expenditures in the future are mainly investment projects with funds raised from this public issuance of stocks. For details, please refer to "Section 7 Utilization of Raised Funds and Future Development Plan" of this prospectus. In addition, the company has no other major capital expenditure plans.

(3) Major asset business reorganization or equity acquisition and merger

During the reporting period, there were no major asset and business reorganizations or equity acquisitions and mergers.

15. Post-balance sheet events, contingencies and other important matters

(1) Events after the balance sheet date

As of the signing date of this prospectus, the Company has no post-balance sheet events that should be disclosed but have not been disclosed.

(2) Contingencies

As of the signing date of this prospectus, the company has no contingencies that should be disclosed but have not been disclosed.

(3) Other important matters

As of the signing date of this prospectus, the company has no other important matters that should be disclosed but have not been disclosed.

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China Electronics Cosi Technology Co., Ltd. Prospectus

16. Main financial information and operating conditions after the deadline for auditing the financial report

(1) Main business operations after the audit deadline

The audit base date of the issuer's financial report is December 31, 2025. From the audit base date of the financial report to the signing date of this prospectus, the company's overall operating conditions are normal. There have been no major adverse changes in the company's business model, main raw materials and their purchase prices, main products and their sales prices, the composition of major customers and suppliers, tax policies and other major matters that may affect investors' judgment.

(2) Review of main financial information from January to June 2026

After review, the company's main financial data for June 30, 2026 and January to June 2026 are as follows:

Main financial data of the consolidated balance sheet

Unit: 10,000 yuan

274,823.42 257,533.59 6.71% owner’s equity

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Main financial data of the consolidated income statement

Unit: 10,000 yuan

Project January-June 2026 January-June 2025 Change rate

Operating income 96,570.88 99,336.21 -2.78% Operating profit 16,536.60 15,875.46 4.16% Total profit 16,556.40 15,911.43 4.05% Net profit 16,675.96 16,034.28 4.00% of net equity attributable to owners of the parent company

16,675.96 16,034.28 4.00% profit

vested after deducting non-recurring gains and losses

15,781.47 14,395.42 9.63% of the net profit of the owners of the parent company

Main data of non-recurring profit and loss statement

From January to June 2026 and from January to June 2025, the details of the company’s non-recurring profits and losses are as follows:

Unit: 10,000 yuan

Item January-June 2026 Profit and loss from disposal of non-current assets from January to June 2025, including provision for asset impairment

-3.16 Offset portion of 27.37

Government subsidies included in the current profit and loss, but related to the company's normal business operations

Except for government subsidies that are closely related, comply with national policies and regulations, are enjoyed in accordance with determined standards, and have a lasting impact on the company's profits and losses.

(3) Estimated performance from January to September 2026

From January to September 2026, the company is expected to achieve operating income of 1.520 to 1.680 billion yuan, a change of approximately -5.00% to 5.00% compared to the same period last year; it is expected to achieve a net profit of 245 to 265 million yuan, a change of approximately -2.05% to 5.95% compared to the same period last year; it is expected to achieve a net profit after deducting non-recurring gains and losses of 225 to 245 million yuan, an increase from the same period last year

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The prospectus of China Electronics Co., Ltd. Co., Ltd. has changed from -2.77% to 5.87%. From January to September 2026, the company's overall operating conditions were stable, and there were no major changes in main performance data compared with the same period last year.

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China Electronics Cosi Technology Co., Ltd. Prospectus

Section 7 Utilization of Raised Funds and Future Development Plan

1. Overview of the use of raised funds

(1) Plan for use of raised funds

1 54,550.85 54,550.85 Diankesi Instrument Line Renovation and Production Expansion Project

New Generation Mobile Communication Test Research Siyi Technology 2 4,803.70 4,803.70

Total 150,000.00 150,000.00 -

(2) Filing and approval status of investment projects with raised funds

The filing and approval status of the relevant competent authorities involved in the investment projects raised by the company's issuance of funds are as follows: Serial number Project name Filing number Environmental impact assessment approval number

Production of high-end electronic measuring instruments

1 2511-370211-04-02-275009 Not applicable

Line reconstruction and production expansion projects

New generation mobile communication testing research

2 2510-340361-04-05-990644 Not applicable

Development and industrialization construction projects

3 Technology Innovation Center Construction Project 2511-370211-04-02-275009 Not applicable

4 Replenish working capital - -

The filing and environmental impact assessment procedures for the investment projects raised by the company's proceeds from this issuance comply with the requirements of the competent authorities and relevant laws and regulations.

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(3) Management system for the use of raised funds

In order to standardize the management and use of raised funds and effectively protect the rights and interests of investors, the company reviewed and approved the "Raised Funds Management System" at the ninth meeting of the second board of directors and the second extraordinary shareholders' meeting in 2025, which clearly stipulates the storage, use, change, management and supervision of raised funds. Within one month after the raised funds arrive, the company, the sponsor and the commercial bank where the raised funds are deposited will sign a tripartite supervision agreement. The raised funds will be deposited in a special account approved by the board of directors for centralized management and use. The special account for raised funds shall not store non-raised funds or use them for other purposes. The company will strictly follow laws and regulations such as the "Supervisory Rules for Raised Funds of Listed Companies" and the company's "Raised Funds Management System" and other relevant regulations to standardize the use of raised funds.

(4) The contribution of raised funds to the development of the issuer’s main business, its impact on future business strategies, and its supporting role in business innovation, creativity, and creativity

The company's investment projects with proceeds from this issuance are closely related to its main business. The successful commissioning of the investment projects with proceeds will effectively enhance the company's production capacity and technology research and development capabilities, and enhance the company's intelligent manufacturing level and operational efficiency. The specific details of each raised fund investment project’s support for the development of the issuer’s main business are as follows:

High-end electronic measuring instrument production line renovation and expansion project

(1) Expand the company’s production scale to meet downstream market demand

The electronic measuring instrument industry is a national strategic and basic industry. Related products are widely used in communications, industrial electronics, education and other fields. They are key equipment and important means for scientific research, production, testing and maintenance in the modern information industry, and play an irreplaceable role. With the reconstruction of the semiconductor industry chain, the explosion of new energy vehicles, the commercialization of 5G/6G, and the vigorous development of new productive forces in fields such as artificial intelligence, satellite Internet, and low-altitude economy, the demand for testing will grow rapidly, and the electronic measuring instrument industry will usher in good development prospects. Industry data shows that the market size of China's electronic measuring instrument products and test and measurement systems will be close to 49.50 billion yuan in 2024, showing an increasing trend year by year, and is expected to grow to 82.64 billion yuan in 2029.

Driven by industry demand, the company's sales scale continues to grow, and its current production capacity is becoming increasingly saturated. This project is guided by market demand and is based on the company's existing sites and factories in Qingdao. The existing parking lot will be converted into a high-end electronic measuring instrument industry building, and production and testing equipment will be purchased at the same time. It will effectively expand the production scale of signal generation instruments, signal/spectrum analysis instruments, vector network analysis instruments and other products, continue to create competitive products, and continue to meet the growing market demand.

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China Electronics Cosi Technology Co., Ltd. Prospectus

(2) Helps the company accelerate digital transformation and improve production management efficiency

With the rapid development of the electronic information industry, market competition in the electronic measuring instrument industry is increasingly intensifying. In order to cope with the fierce market competition and meet the requirements of the rapid growth of the company's own business scale, the company urgently needs to seize the opportunities of intelligent development and accelerate the improvement of production capacity and digital and intelligent transformation. Through the implementation of this investment project, we will strengthen investment in simulation capabilities, improve product design levels for manufacturing and assembly, build product quality advantages and cost advantages during the design stage, shorten product development costs, and achieve the goals of product high quality, high reliability, fast delivery and low cost. At the same time, we continue to build and iterate intelligent management systems such as supplier relationship management, manufacturing operations management, and quality management to achieve intelligent levels of procurement, production, delivery, and full-process quality management, improve supply chain efficiency, and reduce operational management and control costs.

(3) Conducive to promoting the localization process of the electronic measuring instrument industry

European and American countries started early in the field of electronic measuring instruments and formed design and competitive advantages in the field of electronic measuring instruments. The high-end market of the industry is mainly occupied by foreign companies such as Keysight Technology and Rohde & Schwarz. There is still a certain gap between my country's independently manufactured advanced technologies and products in the field of high-end electronic measurement and foreign benchmark companies, and the need for localization is very urgent. The overall technical level of the planned products of this project has reached domestic leading and internationally advanced levels, which will help ensure the security of the testing and measurement supply chain in my country's communications, industrial electronics, education and other fields, and promote the rapid development of my country's 5G/6G communications, artificial intelligence, new energy vehicles and other new fields and new quality industries.

New generation mobile communication testing R&D and industrialization construction project

(1) Conducive to improving production capacity and meeting market demand

Communication measurement instruments are the "invisible foundation" of the communication industry, running through the entire 5G base station, terminal, network and supporting chain, ensuring signal integrity, network compatibility and equipment stability with high-precision and high-reliability testing. With the accelerated development of new technologies and application scenarios such as 5G/6G, high-speed data transmission, and artificial intelligence, the communications industry is experiencing unprecedented explosive growth. New technological features in the testing field such as high frequency band, large bandwidth, low latency, and massive connections have also put forward higher and more complex performance requirements for communication measurement instruments. Against this background, mainstream operators and equipment vendors around the world have launched large-scale deployment and upgrades, resulting in continued heavy demand for communication testing.

The company plans to add design simulation, test verification and mass production conditions through this project, make full use of the company's existing production technology, purchase advanced production and testing equipment, introduce professional and technical personnel, strengthen personnel skills training, improve product quality and production efficiency, and position the company to take the lead in the future competition of next-generation communication technology

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China Electronics Cosi Technology Co., Ltd. Prospectus

The location lays a solid foundation.

(2) Conducive to improving the company’s technical level and consolidating its industry position

This project focuses on the needs of each link in the communications industry chain, focusing on terminal production line testing, base station field testing, next-generation optical fiber communication network construction, and aerospace power supply equipment and components. It will form satellite communication network simulation, 5G-A and other multi-standard terminal automated research and development, production line testing capabilities, and field operation and maintenance capabilities in complex scenarios; break through key technologies such as high-precision alignment of hollow-core optical fibers and high-precision alignment of large-core fiber and other next-generation optical fiber communication testing; and improve satellite sailboard battery ground simulation testing and component power supply testing capabilities.

By continuously strengthening market-oriented R&D investment, the company has formed a series of communication test instrument products with high performance, high integration, and high automation to meet the testing needs of multiple scenarios and facilitate rapid iteration and large-scale deployment of base stations, terminals, network equipment, and industry applications. The implementation of this project will enhance the company's technical level and strengthen its industry position in the field of high-end communication testing.

(3) Break the foreign technology monopoly and accelerate the localization process

For a long time, the high-end market of communication measurement instruments has been firmly occupied by foreign giants such as Keysight Technology and Rohde & Schwarz. my country's support capabilities in the field of high-end measurement need to be improved urgently.

The company has achieved a number of key breakthroughs in the three major subdivisions of mobile communications, optical fiber communications and test power supplies, and the overall core product indicators have reached the leading level in the country. By strengthening the construction of research and development capabilities, adding new intelligent production lines to expand production capacity and improving manufacturing levels, while accelerating the break of foreign technology monopoly and promoting the domestic process, it will also effectively reduce product costs, enhance product competitiveness, and provide solid support for the high-quality development of the domestic communications industry.

Technology Innovation Center Construction Project

(1) Can meet the changing market demand for high-end electronic measuring instruments

The company specializes in the research and product development of electronic measurement technology, and has played an important role in the development and growth of domestic electronic measurement instruments, providing reliable testing and measurement guarantees for major national mission projects, electronic information industry development, education and scientific research and other fields. However, with the continuous development of digital and intelligent technology, my country's intelligent manufacturing, new generation communications, high-speed data transmission and other technical levels continue to improve, and the market demand for high-end electronic measuring instruments is also changing rapidly. The company's establishment of a technological innovation center will introduce more and better talents, grasp technological development trends, improve R&D and testing methods, conduct technical research on new application scenarios and develop high-end products, which will help the company improve R&D efficiency and continue to meet changing market demands.

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(2) Conducive to improving the company’s R&D capabilities

The company is committed to the technology research and product development of electronic measuring instruments in the fields of microwave/millimeter wave, optoelectronics, communications and basic measurement. Related products have strong technology-intensive attributes. Since its establishment, the company has always adhered to independent innovation, adhered to the two-wheel drive of technology and market, and achieved a leading position in the domestic market. However, in the face of international giants with first-mover advantages, in order to accelerate the pursuit of catching up with competitors, the company still needs to increase investment in science and technology, strengthen research and development capabilities, consolidate the technical base, and improve the technical competitiveness of its products. By implementing the technology innovation center construction project, expanding and improving R&D sites, increasing design simulation and test verification capabilities, systematically improving the level of key testing technologies for high-performance microwave and millimeter waves, forming stronger key testing technologies for optical chips, optical devices, and optical modules in the field of optical communications, breaking through more high-speed data transmission, satellite interconnection and other communication testing technologies, and accelerating the rapid increase in R&D capabilities for industry-leading overall testing solutions for artificial intelligence, satellite Internet, integrated circuits, automotive electronics and other fields.

(3) Conducive to enterprises consolidating their competitive advantages and achieving long-term development

As a high-tech enterprise, the company's survival and development depend on the continuous advancement of technology. The technical indicators of electronic measuring instruments must be able to meet various testing needs in various application fields under extremely macroscopic, extremely microscopic and extreme conditions, and adapt to more cutting-edge, more cutting-edge and more complex test scenarios. In order to cope with the increasingly fierce talent and technology competition in the electronic measuring instrument industry, quickly grasp the systematic and intelligent development trends, maintain the industry's leading position, maintain and expand market share, the company plans to build a technology innovation center, focusing on technical research and product development of high-end products, accelerating key technology reserves, consolidating the technical base, and establishing technological advantages around new and future industries. This will help to continue to consolidate the company's market position in high-end electronic measuring instruments and achieve the company's long-term sustainable development.

Supplement working capital

During the reporting period, the issuer's business scale grew steadily, and the amount of working capital occupied also increased accordingly. As the company's downstream market demand grows, and the company's research and development and market expansion of multiple new products make progress, it is expected that the company's business scale will further expand in the future, and the demand for working capital will also further increase. This issuance of appropriate additional working capital can alleviate the company's liquidity pressure, better meet the capital needs brought about by the rapid development of the company's business, and is conducive to optimizing the company's capital structure and improving overall operating performance.

To sum up, the investment projects raised this time closely revolve around the company's main business and are highly consistent with the company's future strategic direction. The high-end electronic measuring instrument production line renovation and expansion project uses capacity improvement and intelligence

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China Electronics Cosi Technology Co., Ltd. Prospectus

Energy-based transformation to support the company's response to downstream market demand and promote the localization process of high-end instruments; focus on new generation mobile communication testing R&D and industrialization construction projects Cutting-edge fields such as 5G/6G and satellite communications aim to break through key technologies and enhance the company's comprehensive competitiveness in the field of communications testing; the technology innovation center construction project systematically enhances the company's technical reserves and solution capabilities in microwave/millimeter wave, optical communications, high-speed data transmission and other directions by strengthening R&D infrastructure and talent introduction; supplementing working capital provides necessary working capital support for the company's business scale expansion and continuous innovation.

The implementation of the above projects will jointly enhance the company's R&D strength, industrialization capabilities and intelligent manufacturing levels, and further consolidate and enhance the company's market position in the field of high-end electronic measuring instruments. Overall, the investment projects with raised funds are in line with the company's future business development strategy and will play an important supporting role in the innovation, creativity and creativity of the issuer's business.

The connection between the investment project and the existing business and the company’s specific measures to digest the new production capacity

The company plans to use the funds raised this time for three construction projects and to supplement working capital. Among the three construction projects, the "Technological Innovation Center Construction Project" will not produce products after completion. Therefore, the products involved are the "High-end Electronic Measuring Instrument Production Line Transformation and Expansion Project" and the "New Generation Mobile Communications Testing R&D and Industrialization Construction Project."

The "High-end Electronic Measuring Instrument Production Line Transformation and Expansion Project" mainly produces signal generation instruments, signal/spectrum analysis instruments, vector network analysis instruments, power test instruments, handheld measuring instruments, modular measuring instruments, spectral analysis instruments, terahertz test instruments, solid-state power amplifiers, oscilloscopes, arbitrary waveform generating instruments and other electronic measuring instruments. The "New Generation Mobile Communications Test R&D and Industrialization Construction Project" mainly produces mobile communication test instruments, optical fiber communication test instruments, and programmable DC power supply products. The products of both projects are the company's existing main business products and are widely used in aerospace, communications, intelligent connected vehicles, consumer electronics, semiconductors and other fields.

During the reporting period, the company's related products maintained a high production and sales rate. The sales volume of the company's complete machine products has declined slightly since 2024. This is mainly due to the fact that on the one hand, the company's product structure during the reporting period showed a trend of gradually increasing the proportion of high-value products oriented to the high-end market and with more outstanding performance. On the other hand, the company also continued to iterate products for the same type of products, and high-value product iterations also have higher complexity in debugging indicators during the production process. A single piece of equipment requires more production hours, resulting in a decrease in the output and sales of complete machine products in 2024, but this does not mean that the company's capacity utilization rate is insufficient. It can be seen from the above statistics of capacity utilization that the company will

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In 2016, production capacity was expanded by adding production equipment, but the capacity utilization rate was still relatively saturated.

Judging from industry development trends, the future market demand for related products will maintain overall growth. In the context of the rapid development of my country's high-tech industry, traditional industries and emerging industries promote each other, new technologies and new products continue to emerge, driving the expansion of the application fields of electronic measuring instruments, and their market size continues to expand. According to Frost & Sullivan data, the global electronic measuring instrument market will grow from US$10.08 billion in 2020 to US$12.93 billion in 2024, and is expected to further grow to US$18.38 billion in 2029; my country's electronic measuring instrument market will grow at a higher rate, from 23.85 billion yuan in 2020 to 2024. 35.38 billion yuan, with an average annual compound growth rate of 10.4%, and is expected to further grow to 54.09 billion yuan in 2029. While the total volume is growing, because electronic measuring instruments are technology-intensive products, prices are also relatively stable, maintaining a reasonable profit margin. During the reporting period, the average sales price of the issuer's complete machine products increased from 34,400 yuan/set in 2022 to 61,400 yuan/set in the first half of 2025; during the same period, the gross profit margin of the main business increased from 35.69% to 49.25%. Taken together, the increase in market size and price growth indicate strong downstream demand and good profit prospects for the project.

In terms of the issuer's own reserves, as of December 31, 2025, the company has 1 national-level leading talent, 1 million-level talent, 2 Chinese outstanding engineers, 12 experts with special allowances from the State Council, 2 chief scientists and 3 chief experts of China Electronics Technology Group, and more than 30 provincial and ministerial-level talents. The company has 541 invention patents, has presided over the preparation of 1 international standard, 3 national standards, and 3 group standards, and participated in the preparation of 12 national standards, 4 national and military standards, and 1 group standard. Items, core technologies include "low-noise wide-band microwave frequency synthesis technology", "microwave millimeter wave transmission channel signal conditioning technology", "wide-band microwave millimeter wave signal reception technology", "wideband signal acquisition and analysis technology", "multi-port excitation signal generation technology", "multi-port mixing reception technology", etc., which constitute the company's core competitive advantages.

Based on the above, the products produced by the company's investment projects with raised funds have stable market demand. At the same time, the company's existing technical reserves and talent reserves are relatively sufficient, and the construction of the raised investment projects is necessary and feasible. After the project is implemented, the company will take the following measures to promote the digestion of new production capacity:

(1) Strengthen the construction of marketing system and fully seize the opportunities in the localized market. The issuer adopts a sales model of "direct sales as the mainstay and distribution as the supplement". The customer groups of the products planned for this fundraising project have a high degree of overlap with the existing products. Based on the existing sales network, the company will continue to improve the national integrated marketing and technical service network covering core cities such as Beijing, Shanghai, Shenzhen, Chengdu, Xi'an, and Nanjing based on the existing sales network; with customers

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As the center, we will continue to deepen our efforts, strengthen the maintenance of strategic partners with top customers, and continue to develop new customers. At the same time, we will further seize the opportunity of accelerating the localization of high-end electronic measuring instruments, strengthen the resilience and security of the industrial chain through technology sharing, standard co-construction and market collaboration, build a symbiotic and co-prosperous industrial ecosystem, and prepare to fully digest new production.

(2) Actively build a second growth curve and accelerate the creation of overall scenario-oriented testing solutions. The company will continue to explore industry needs, deeply understand the specific testing challenges faced by downstream industries in R&D, production, quality inspection and other links, and provide scenario-based testing solutions to relevant customers. Facing high-growth, high-threshold strategic emerging fields such as low-altitude economy, satellite Internet, artificial intelligence, quantum, 6G communications, semiconductors, and automotive electronics, based on the technological leadership established in the core business of electronic measuring instruments and the advantages of complete product categories, we deeply grasp the systematic and intelligent development opportunities and continue to innovate the test service model. This measure is conducive to increasing the added value and customer stickiness of the product. Through in-depth cooperation with leading companies, the company can define industry testing standards, thereby establishing barriers in different market segments and ensuring that production capacity is absorbed by continuous and stable orders.

(3) Strengthen overseas market layout and enhance global brand influence. Using Siyi Technology (Germany) as an overseas platform, we will promote localized operations and comprehensively enhance customer experience and brand awareness in the European market; we will further use the successful practices in the European market as a model to gradually expand to key global markets such as the Asia-Pacific; through participating in the formulation of international standards, actively participating in international industry exhibitions, and carrying out global brand communication and other combination strategies, we will systematically enhance the international reputation and high-end image of the Siyi brand.

(4) The company will continue to optimize and improve the layout of the "1+5+N" technology R&D system, build a technology system that leads in core technologies covering microwave/millimeter wave testing, optoelectronic testing, communication testing, basic testing and automatic testing, supports excellent products, and integrates future technology development trends. It will strengthen original technology research, consolidate core technology advantages, actively undertake major national scientific research tasks, and accelerate key technological breakthroughs. At the same time, we will use the implementation of raised investment projects to continuously improve the technical level of industrial design and production technology, deepen digital and intelligent transformation, and enhance product market competitiveness.

(5) Basis for determining investment projects with raised funds

Since its establishment, the company has always focused on the research and development, manufacturing and sales of high-end electronic measuring instruments, and is committed to providing high-precision, high-reliability test and measurement solutions and customized services for the fields of communications, semiconductors, new energy and automotive electronics. As business scale continues to expand and product iteration accelerates, the company’s production capacity deployment

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We are facing corresponding challenges in terms of bureaus, technology research and development and innovation resources.

First of all, in terms of production capacity, the company's existing production site area is limited, the core assembly and debugging station layout is becoming increasingly tight, and the high-end instrument production capacity can no longer meet the growing market order demand, which restricts the further expansion of large-scale delivery capabilities and market share. Therefore, the company plans to build a "high-end electronic measuring instrument production line renovation and expansion project" to add advanced production and testing equipment and expand production sites to break through production bottlenecks and support the sustained and steady growth of its main business.

Secondly, in terms of industrialization of specific technical directions, cutting-edge products represented by new generation mobile communication testing have put forward higher requirements for R&D environment, trial production conditions and production processes. The company's existing scientific research and production equipment is insufficient and production staffing is tight, which restricts the transformation and large-scale application of related technologies. Through the implementation of the "New Generation Mobile Communications Testing R&D and Industrialization Construction Project", the company will build a professional R&D and production line environment, enhance the full chain capabilities from technology development to mass manufacturing, and promote independent innovation and industrialization of key technologies.

In addition, in terms of the R&D system, as the product line continues to expand and technology iterations accelerate, the company's existing R&D sites, software and hardware facilities, and talent reserves are no longer able to support forward-looking technology layout and collaborative innovation needs. The "Technology Innovation Center Construction Project" will build a high-level R&D platform, introduce high-end technical talents, and support advanced R&D equipment and simulation tools to systematically enhance the company's capabilities in basic research, common technology research, and independent product innovation, laying the foundation for the continued launch of internationally competitive innovative products.

This investment project focuses on the three core needs of production capacity expansion, technology industrialization and R&D upgrading, aiming to comprehensively improve the company's high-end product delivery capabilities, key technology achievement transformation efficiency and system innovation level, strengthen the company's core competitiveness in the global electronic measuring instrument field, and help achieve the strategic goal of becoming a world-class enterprise in the field of testing and measurement.

(6) The impact of investment projects with raised funds on horizontal competition and independence

The planned investment projects with the raised funds will be completed by the company as the main body, and the planned investment projects with the raised funds are closely related to the company's main business. After the implementation of the project, the company will not have any significant adverse impact on horizontal competition with the controlling shareholder, actual controller and other companies controlled by it, nor will it have an adverse impact on the company's independence.

2. Overview of investment projects with raised funds

For details about the investment projects with raised funds of the company, please refer to “Section 12 Attachments” of this prospectus.

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"8. Specific utilization of raised funds."

3. Future development strategic planning

(1) The company’s overall development strategy

As a leading enterprise in the field of domestic electronic testing and measurement, the company's future development will adhere to its business leadership strategy, focus on the development of high-end instrument research and scenario-oriented testing solutions, adhere to the world's technological frontiers, the main economic battlefield, and major national needs, strengthen connotative growth and extensional expansion, and continue to make breakthroughs. Break the cutting-edge basic technologies and key core technologies in the field of electronic testing and measurement, continue to develop microwave/millimetre-wave measuring instruments, photoelectric measuring instruments, communication measuring instruments, basic measuring instruments and automatic test systems, launch high-end products with excellent performance, and accelerate the development of low-altitude economy, satellite Internet, artificial intelligence, and 6G A new format of overall testing solutions for emerging industries such as communications, accelerate the development of the global market, strengthen, improve and expand the electronic measuring instrument industry, build a world-class enterprise in the field of testing and measurement, and create a world-class "Siyi" brand.

(2) Measures taken during the reporting period to achieve strategic goals and their implementation results

Focus on main responsibilities and main businesses and continue to promote technology research and development

Electronic measuring instruments are a technology-intensive, capital-intensive and talent-intensive industry. During the reporting period, the company continued to expand the scale of its technical R&D team, gather professionals in the industry, continue to increase R&D investment, constantly optimize the allocation of R&D resources, and provide sufficient financial support and advanced software and hardware conditions for R&D activities. As of December 31, 2025, the company has a first-class R&D team, holds 541 invention patents, has presided over the preparation of 1 international standard, 3 national standards, and 3 group standards, and participated in the preparation of 12 national standards. It has one item and one group standard. It is currently the only electronic measuring instrument company in China that can fully benchmark against leading international companies in the fields of microwave/millimeter wave, optoelectronics, communications and basic measuring instruments. Its overall technical level leads the country, especially in the field of microwave/millimeter wave measuring instruments, it has reached the international advanced level, and has reached the international leading level in some subdivisions.

Benchmark world-class and strengthen the construction of modern enterprise system

Focusing on the goal of being a world-class enterprise, the company adheres to the "Two Consistencies", accelerates the construction of modern enterprise systems, establishes and improves corporate governance structures such as shareholders' meetings and boards of directors in accordance with the governance standards of listed companies, formulates and implements the "Corporate Articles", "Rules of Procedure for Shareholders' Meetings", "Rules of Procedure for Board Meetings", "Working Rules of the General Manager" and other relevant rules and regulations, establishes an independent director system, establishes special committees of the board of directors and formulates relevant working rules, forming a corporate governance mechanism with statutory rights and responsibilities, transparent rights and responsibilities, coordinated operation, and effective checks and balances. public

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The company comprehensively deepens organizational reform, establishes and improves modern enterprise management systems, accelerates process-based organizational construction, and coordinates the transformation and construction of the DSTE strategy to execution system, IPD integrated product development system, LTC marketing system, and ISC integrated supply chain system. The company's overall operating efficiency continues to improve, and gradually builds a complete, scientific, standardized, and efficient enterprise operation and management system. The company's market competitiveness and profitability have been improved, and it has won national honors such as "State-owned Enterprise Corporate Governance Demonstration Enterprise of the State-owned Assets Supervision and Administration Commission of the State Council".

Anchoring strategic direction and enhancing risk resistance

The company has always adhered to a clear and forward-looking development strategy, driving steady growth in operating income and net profit during the reporting period. Since its establishment, the company has continued to track national industrial policies and industry technology trends, accurately positioning the research and development direction of full-spectrum high-end products, relying on its profound technological accumulation in the field of electronic testing and measurement, and seizing market opportunities such as 5G/6G communications, semiconductors, artificial intelligence, and satellite Internet to achieve rapid growth in business scale. During the reporting period, the company's management relied on keen market insights and strategic decision-making capabilities to systematically assess various operating and market risks, conduct in-depth analysis of the industry's competitive landscape and development trends, focus on high-value customers and scientifically plan production capacity. At the same time, the company has established a professional overseas expansion and technical support team to comprehensively strengthen its international market layout, effectively disperse market risks, and broaden its sources of profit. Against the background of intensified competition in the domestic electronic measuring instrument industry, the company's performance and operating cash flow have maintained steady growth, demonstrating strong anti-risk and anti-cyclical capabilities, further consolidating its competitive position in the industry.

(3) Future development plan

Main business development plan

The company will focus on the main business of electronic measuring instruments, be customer-centric, adhere to the business leadership strategy, strengthen connotative growth and extensional expansion, aggregate domestic and foreign superior resources, strengthen joint innovation and cross-domain integrated development with external parties, accelerate high-end product development, expand new domain and new quality testing, comprehensively enhance the company's comprehensive competitiveness, and more effectively support the implementation of my country's major projects and the development of the electronic information industry.

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Market layout and development plan

(1) Deepen domestic foundation and build industrial ecological advantages

Customer deep cultivation: focusing on strategic emerging industries such as aerospace, high-end equipment, artificial intelligence, semiconductors, and next-generation communications, establishing in-depth strategic partnerships with industry leaders, promoting the construction of key customer teams to achieve resource optimization and professional division of labor, deeply participating in key customer demand analysis, long-term relationship maintenance and customized plan formulation, concentrating resources to focus on high-value customers, and improving efficiency.

Localized operations: With Siyi Technology (Germany) as the strategic fulcrum, we will deepen the "local +" operating model. By establishing a localized sales and service team, we can achieve forward decision-making and precise services, and comprehensively improve our presence in Europe.

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Customer experience and brand identity in the market.

Technology R&D development plan

The second is to focus on the main responsibilities and main businesses, focus on the technology development direction and product development needs of each business field, strengthen the identification of key core technologies, and focus on laying out root technologies such as ultra-wideband high-performance microwave/millimeter wave testing technology, wide-spectrum high-precision optical parameter testing technology, ultra-high-speed large-bandwidth time-domain signal testing technology, and big data vertical large model intelligent testing technology to promote the company's technology iteration and industrial upgrading to form sustainable competitiveness.

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Section 8 Corporate Governance and Independence

1. Defects and improvements in corporate governance

Since the company was transformed into a joint-stock company as a whole, it has strictly implemented the relevant requirements of laws and regulations such as the Company Law and the Securities Law, and gradually established and improved the governance structure consisting of the shareholders (general meeting), the board of directors, the board of supervisors (cancelled) and senior managers. It has formed a mutual coordination and checks and balances mechanism between the power agencies, decision-making agencies, supervisory agencies and management, providing organizational guarantees for the company's efficient and stable operations. In accordance with the provisions of relevant laws and regulations, and taking into account the actual situation and needs of the company, the issuer held the 2024 Annual General Meeting of Shareholders on May 22, 2025, and reviewed and approved the "Proposal on the Dissolution of the Company's Board of Supervisors". The company will no longer have a board of supervisors, and the powers of the board of supervisors stipulated in the "Company Law" will be exercised by the Audit Committee of the Board of Directors.

In accordance with the provisions of relevant laws, regulations, normative documents and the "Articles of Association", and with reference to the requirements of listed companies, the company has formulated and improved the "Rules of Procedure for Shareholders' Meetings", "Rules of Procedure for Board of Directors", "Working Rules for Independent Directors", "Working Rules for Board Secretary" and other legal person governance system documents, and strictly abides by them in actual operations. In addition, the company also hired three professionals to serve as independent directors of the company to participate in the company's decision-making and supervision, enhance the scientificity and objectivity of the board of directors' decision-making, and improve the company's governance level.

During the reporting period, the company’s shareholders (general meeting), board of directors, and board of supervisors (cancelled) all operated independently and legally in accordance with the powers conferred by the Articles of Association and relevant rules and regulations, and fulfilled their respective rights and obligations.

At present, the company operates strictly in accordance with various rules and regulations, and relevant institutions and personnel perform corresponding duties. Through the establishment of the above-mentioned organizational structures and the implementation of relevant systems, the company has gradually established and improved the corporate governance structure. During the reporting period, the company's directors, supervisors and senior managers did not exercise their powers in violation of the Company Law and other normative documents.

2. Internal control of the issuer

(1) Company management’s self-assessment opinions on internal control

The company evaluated the effectiveness of internal control on December 31, 2025, the base date of the internal control evaluation report. The company’s board of directors believes that the company has maintained effective internal control over financial reporting in all material aspects in accordance with the requirements of the corporate internal control normative system and relevant regulations. According to the identification of major deficiencies in the company's internal control over non-financial reporting, the company found no major deficiencies in internal control over non-financial reporting on the base date of the internal control evaluation report. There is no occurrence between the base date of the internal control evaluation report and the issuance date of the internal control evaluation report.

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Factors affecting the conclusion of the evaluation of internal control effectiveness.

(2) Opinions of certified public accountants on the issuer’s internal control system

Rongcheng Accounting Firm issued the "Internal Control Audit Report" (Rongcheng Shenzi [2026] No. 230Z1089), believing that the company maintained effective internal control over financial reporting in all major aspects in accordance with the "Basic Standards for Enterprise Internal Control" and relevant regulations on December 31, 2025.

(3) The issuer’s internal control irregularities and rectifications during the reporting period

During the reporting period, the company had no irregularities in financial internal controls listed in "5-8 Situations of Irregularities in Financial Internal Controls" in the "Guidelines for the Application of Regulatory Rules - Issuance Category No. 5", details are as follows:

Serial number Irregularities in financial internal control Whether relevant situations exist and whether they have been rectified

Without real business support, obtain banks through suppliers, etc.

1 Loans or providing customers with bank loan fund transfer channels (abbreviation does not exist, "on-loan" behavior is not applicable)

Issuing commercial information to related parties or suppliers without real transaction background

2 does not exist not applicable

Bills, obtain bank financing by discounting bills

3 Direct fund lending with related parties or third parties Does not exist Not applicable

Frequently collect payment through related parties or third parties, the amount is large and

4 does not exist not applicable

lack of commercial rationality

5 Use personal accounts to receive and pay external payments. Does not exist. Not applicable. 6 Lending company accounts to collect and pay payments for others. Does not exist. Not applicable.

Violating internal fund management regulations and making large payments to external parties

7 Does not exist Not applicable to cash borrowing and repayment, misappropriation of funds

The related party borrows money, repays debts, advances money or other

8 Does not exist Not applicable

Ways to occupy funds

9 Existence of external accounts does not exist Not applicable

In important business cycles such as sales, procurement, R&D, and inventory management,

10 does not exist not applicable

There are major deficiencies in internal control

3. The issuer’s illegal activities during the reporting period

During the reporting period, the main administrative penalties imposed by the company and its subsidiaries are as follows:

Due to bidding matters before the reporting period, the issuer was punished by the competent authority during the reporting period and was banned from participating in military material engineering service procurement activities for one year.

As of March 2023, the above penalty period has expired. The issuer has actively taken corrective measures to standardize management work.

The issuer was fined and confiscated by the competent authority during the reporting period due to violations before the reporting period.

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China Electronics COSI Technology Co., Ltd. Proceeded from the prospectus method.

As of the signing date of this prospectus, the issuer has paid off the aforementioned fines and has actively taken rectification measures to standardize management work.

The competent authority has confirmed in writing that no major violations of laws or regulations have been discovered by the issuer, and no major administrative penalties have been discovered. The administrative penalties imposed on the issuer are not major administrative penalties and have been dealt with and rectified.

In summary, the above penalties do not constitute major administrative penalties and will not have a significant adverse impact on the issuer's continued operations.

4. The issuer’s capital occupation and external guarantees during the reporting period

During the reporting period, the company's controlling shareholder, actual controller and other companies controlled by it did not occupy the company's funds, and the company did not provide guarantees for the controlling shareholder, actual controller and other companies controlled by them in violation of regulations.

5. The issuer’s ability to operate independently and sustainably

The company operates in accordance with the relevant provisions of the "Company Law" and the "Articles of Association" and has established and improved the company's corporate governance structure. It is independent from the controlling shareholders, actual controllers and other companies controlled by it in terms of assets, personnel, finance, institutions, business and other aspects. It has a complete business system and the ability to operate independently in the market, and has an independent and complete supply, production and sales system.

(1) Asset independence

During the reporting period, the issuer has main production systems, auxiliary production systems and supporting facilities related to production and operations, legally owns the ownership or use rights of major land, factories, machinery and equipment, trademarks, patents and non-patented technologies related to production and operations, and has independent raw material procurement and product sales systems.

During the reporting period, the company leased a small amount of equipment and business premises from No. 41 Institute, which did not have a significant impact on the issuer's asset independence and production and operations.

(2) Personnel independence

Due to the mixed ownership reform, the business staff employees transferred to the company from No. 41 Institute all signed labor contracts with the company in January 2022; as of February 2023, all business staff employees have been terminated from the business staff.

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Mr. Zou Pengwen, the company’s chairman and general manager, has been with the company since June 2025. Before that, he was a business staff member, and his human relations were in the 20th Research Institute of China Electronics Technology. By September 2025, Mr. Zou Pengwen has been decommissioned and his personnel relations have been completely transferred to the company.

Except for the above circumstances, starting from January 2023, the issuer's general manager, deputy general manager, general legal counsel, chief accountant, financial controller, board secretary and other senior management personnel will not hold other positions other than directors and supervisors in the controlling shareholders, actual controllers and other companies controlled by them, and will not receive salaries from the controlling shareholders, actual controllers and other companies controlled by them. During the reporting period, the issuer's financial personnel did not work part-time as controlling shareholders, actual controllers or other companies controlled by them.

(3) Financial independence

The issuer has established an independent financial accounting system, is able to make financial decisions independently, and has standardized financial accounting systems and financial management systems for subsidiaries. During the reporting period, the issuer did not share bank accounts with its controlling shareholders, actual controllers and other companies controlled by them.

(4) Institutional independence

During the reporting period, the issuer has established and improved its internal operation and management organization and independently exercised its operation and management powers. There is no institutional confusion with the controlling shareholder, actual controller and other enterprises controlled by it.

(5) Business independence

The issuer's business is independent of the controlling shareholder, actual controller and other enterprises controlled by it. There is no horizontal competition with the controlling shareholder, actual controller and other enterprises controlled by it that has a significant adverse impact on the issuer, as well as related transactions that seriously affect independence or are obviously unfair.

Due to reasons such as the continued procurement of special customers after the mixed ownership reform, a small number of the company's products in 2022 and 2023 will be sold by Forty-One (the actual business is performed by the company, and all revenue and profits are enjoyed by the company). Starting from 2024, Forty-One Institute will no longer sell electronic measuring instrument products on behalf of the company, and the company will achieve business independence.

(6) Main business, control rights, and management team are stable

The company's main business, control rights, and management team are stable. There have been no major adverse changes in the company's main business and directors and senior managers in the past two years. The ownership of the issuer's shares held by the controlling shareholder and shareholders controlled by the controlling shareholder and actual controller is clear. There has been no change in the actual controller in the past two years, and there are no major ownership disputes that may lead to a possible change in control.

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(7) There are no matters that have a significant impact on the issuer’s continued operations.

The company has no major ownership disputes over its main assets, core technologies or trademarks, major debt repayment risks, major guarantees, litigation, arbitration and other contingencies, major changes in the operating environment that have or will occur, and other matters that have a significant impact on continued operations.

6. Competition within the industry

(1) The actual business situation of the issuer’s controlling shareholders, actual controllers and the companies they control

The company’s controlling shareholder and actual controller is China Electronics Technology. CETC was established as a wholly state-owned enterprise on February 25, 2002, based on the scientific research institute of the former Ministry of Information Industry, and was restructured into a wholly state-owned company on December 29, 2017. CETC is mainly engaged in the engineering construction of electronic information systems, as well as the development and production of communications and electronic equipment, software and key components.

As of December 31, 2025, in addition to the company, the main member units included in the merger scope of China Electronics Technology include 47 scientific research institutions and 39 companies. Each member unit is an independent public institution legal person or enterprise legal person. For the business operations of the member units of China Electronics Technology Corporation that have been included in the scope of the merger, please refer to "Section 4 Basic Information of the Issuer" in this prospectus.

(2) Analysis of horizontal competition between issuers, controlling shareholders and actual controllers

CETC is a state-authorized investment institution and an independent corporate legal entity that exercises investor rights over all state-owned assets of its member units. The headquarters of China Electronics Technology Group Co., Ltd. is not directly engaged in business operations and does not compete with the issuer in the same industry.

(3) Comparative analysis of the issuer and units/enterprises with similar products or businesses controlled by the controlling shareholder or actual controller

The company’s completeness of identification of horizontal competition and potential horizontal competition

(1) Business division and actual business operations of China Electronics Technology and its subsidiaries

CETC was established as a wholly state-owned enterprise in February 2002 based on the scientific research institute of the former Ministry of Information Industry, and was restructured into a wholly state-owned company in December 2017. CETC is mainly engaged in the engineering construction of electronic information systems, as well as the development and production of communications and electronic equipment, software and key components. China Electronics

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The business involves all aspects of the electronic information industry chain, and each member unit focuses on the group company's "One Consolidation and Three Actions"

"Strong" business layout, its affiliated research institutes and enterprises have specializations based on professional directions, technical characteristics, and application fields.

Focus on developing and producing related products and conducting business independently.

As of December 31, 2025, in addition to the issuer, the secondary constituents of Dianke Group included in the consolidation scope

There are 86 member units (including scientific research institutions and enterprises), and their main business activities are as follows: