歌尔股份:2022年年度报告(英文版)

Goertek Inc.
Annual Report 2022

April 2023


Annual Report 2022

Section Ⅰ Important Notes, Contents and Interpretations

The Board of Directors, the Board of Supervisors, directors, supervisors and
senior management of the Company guarantee that the information presented in
this report shall be together be wholly liable for the truthfulness, accuracy and
completeness of its contents and free of any false records, misleading statements
or material omissions, and will undertake individual and joint legal liabilities.
Jiang Bin, the person in charge of the Company, and Li Yongzhi, the person in
charge of accounting and the accounting department (accounting supervisor)
guaranteethatthefinancialreportinthisannualreportisauthentic,accurateandcomplete.

All directors have attended the board meeting to review the annual report.

The future plans and some forward-looking statements mentioned herein are
planned matters which shall not constitute a substantial commitment of the
Company to investors. Therefore, both investors and relevant persons should
maintain their risk awareness and understand the differences among plan,
forecast and commitment. Please pay attention to investment risks.

The Company faces the risks in market, operation and management. Investors
are kindly reminded to pay attention to possible investment risks. For details, see
"Section III Management Discussion and Analysis, XI Outlook for the Future
Development of the Company" in this report.

The profit distribution proposal considered and approved by the Board of
Directors of the Company is as follows: based on the total share capital registered
on the record date of equity distribution minus the repurchased shares in the
Company's specific securities repurchase account, the Company will distribute
cashdividendofRMB1.00 (taxinclusive)forper10shares toalltheshareholders,
as well as 0 bonus shares (tax inclusive), and there is no conversion of capital
surplus into share capital.


Contents


Section Ⅰ Important Notes, Contents and Interpretations...... 2

Section Ⅱ Company Information and Financial Highlights...... 7

Section III Management Discussion andAnalysis ......11

Section IV Corporate Governance...... 37

Section V Environmental and social responsibilities ...... 63

Section VI Important Matters...... 65

Section VII Changes in Shares and Information about Shareholders ...... 78

Section VIII Information of Preference Shares...... 85

Section IX Information on the Bonds ...... 86

Section X Financial Report...... 87

Directory of Reference Files

(1) Financial statements with signatures and seals of the legal representative, the person in charge of
accounting and the person in charge of accounting department (accounting supervisor);

(2) The originals of 2022 annual report and its abstract signed by the legal representative of the

Company;

(3) The originals of the auditor’s report with the seal of Zhongxi Certified Public Accountants

(special general partnership) Co., Ltd. and the signature and seal of the certified public accountants;
(4) The originals of all company documents and announcements publicly disclosed in newspapers
designated by China Securities Regulatory Commission (CSRC) during the reporting period.


Interpretations

Terms Refers to Content of interpretation

Company, the Company, Goertek Inc. Refers to Goertek Inc.

Goertek Group Refers to Goertek Group Co., Ltd., Controlling shareholder of the Company

Weifang Goertek Refers to Weifang Goertek Electronics Co., Ltd., wholly owned subsidiary of the

Company

Goertek Microelectronics Refers to Goertek Microelectronics Inc. controlled subsidiary of the Company

Weifang Goertek Microelectronics Refers to Weifang Goertek Microelectronics Co., Ltd., controlled subsidiary of the

Company

Goertek Optical Refers to Goertek Optical Technology Co., Ltd., controlled subsidiary of the Company

Goertek Technology (Vietnam) Refers to Goertek Technology Vina Company Limited, wholly owned subsidiary of the
Company

ODM Refers to Original Design and Manufacturing

JDM Refers to Joint Design and Manufacturing

The micro electro-acoustic components that transform electrical signal into
acoustic signal, generatedrivingforcethrough themagneticlinecuttingofvoice
Micro speaker Refers to coil in magnetic field, to drive the diaphragm vibration, which then pushes the
air for sounding. Compared with the micro receiver, it's characterized by higher
power, wide frequency response and high fidelity, which is generally used for
playing the sound.

Based on micron/nano technology, Micro electro mechanical system (MEMS)
is a technology developed for designing, processing, manufacturing, measuring
MEMS Refers to and controlling micron/nano materials. MEMS can integrate mechanical
components, optical system and electric control system of driving components
into a whole unit of microsystem, featured with miniaturization, intelligence,
multi-function, high integration and being suitable for mass production.

The acoustic component composed of one or several micro speakers and other
Speaker module Refers to electronic devices, which are assembled together through an injection molded
housing.

Smart wearable devices Refers to Aportable device that can be worn or carried directly, or integrated into the

user's clothes or accessories.

Acomputer simulation system that can create and experience virtual world by
Virtual Reality/VR Refers to using computer to generate a simulation environment into which immerses the
users.

Atechnology that skillfully integrates virtual information with the real world.
By making extensive use of multimedia, 3D modeling, real-time tracking and
registration, intelligent interaction, sensing and other technical means, it

Augmented Reality/AR Refers to applies the computer-generated text, images, 3D models, music, video and

other virtual information to the real world after simulation. These two kinds of
information complement each other to achieve “augmentation” of the real

world.

The new types of smart wireless earphones represented by TWS (True Wireless
Stereo) earphones connect the left and right earphones with smart phones or
Smart wireless earphones Refers to other terminal devices through Bluetooth technology to form an independent
stereo system, which realizes touch control, voice control, body information
collection and other functions by adding various sensors.

Also known as SiP (System in Package) packaging module at the system level,
Microsystem module Refers to it integrates multiple chips and passive components into the same package
through advanced packaging technologies such as 3D packaging, to form a


module with whole or main functions of an electronic system, so as to realize
the optimal combination of performance, volume, weight and other indicators.
It is a versatile next-generation microelectronics technology.

Adetection device that is capable of feeling the measured information, and able
to transform the perceived information into electrical signals or other required
Sensor Refers to forms of information for output based on certain rules, in order to meet the
requirements of information transmission, processing, storage, display,
recording and control.

Company Law Refers to Company Law of the People's Republic of China

Securities Law Refers to Securities Law of the People's Republic of China

Articles ofAssociation Refers to Articles ofAssociation of Goertek Inc.

CSRC Refers to China Securities Regulatory Commission

RMB, RMB 10,000, RMB Refers to yuan (RMB), ten thousand yuan (RMB), hundred million yuan (RMB)

100,000,000

Reporting period Refers to January 1, 2022 to December 31, 2022

Other notes: In this report, any difference between the sum of some amounts and the sum of detailed items is due to rounding.


Section Ⅱ Company Information and Financial Highlights

I. Company Information

Stock abbreviation Goertek Inc. Stock code 002241

The stock exchange where stocks Shenzhen Stock Exchange

are listed

Name of the Company in Chinese Goertek Inc.

Abbreviation of the Company in Goertek Inc.

Chinese

Name of the Company in English Goertek Inc.

(if any)

Abbreviation of the Company in Goertek

English (if any)

Legal representative of the Jiang Bin

Company

Registered address 268 Dongfang Road, High-tech Industrial Development District, Weifang

Postal code of registered address 261031

Previous changes of registered No change

address of the Company

Business address 268 Dongfang Road, High-tech Industrial Development District, Weifang

Postal code of business address 261031

Company website http://www.goertek.com

E-mail ir@goertek.com

II. Contacts and Contact Information

Board Secretary SecuritiesAffairs Representative

Name Jia Jun'an Xu Yanqing, Xu Dapeng

Contact address 268 Dongfang Road, High-tech Industrial 268 Dongfang Road, High-tech Industrial Development

Development District, Weifang District, Weifang

Tel. 0536-3055688 0536-3055688

Fax 0536-3056777 0536-3056777

E-mail ir@goertek.com ir@goertek.com

III. Information Disclosure and Place of the Report

Website of the stock exchange for release of the Shenzhen Stock Exchange (http://www.szse.cn)

Annual Report

Name and website of the media for release of the Securities Times, China Securities Journal, Shanghai Securities News,

Annual Report Securities Daily, CNINFO (http://www.cninfo.com.cn)

Place where theAnnual Report is available for Office of Board of Directors of the Company

inspection
IV. Changes in Registration

Unified Social Credit Code 91370700729253432M

The changes in main business since the Company No change

was listed (if any)


Changes of controlling shareholders of the No change

Company (if any)
V. Other Relevant Information

Accounting firm engaged by the Company

Name of the accounting firm Zhongxi Certified PublicAccountants (special general

partnership)

Business address of the accounting firm Room 1101, No. 11, Chongwenmenwai Street, Dongcheng

District, Beijing

Names of accountants signing the report Du Yeqin, Zhang Shuli

The sponsor institution engaged by the Company to perform continuous supervision during the reporting period

 Applicable  Not applicable

The financial advisor engaged by the Company to perform continuous supervision during the reporting period

 Applicable  Not applicable

Ⅵ. KeyAccounting Data and Financial Indicators

Whether the Company performed a retrospective adjustment or restatement of previous accounting data

 Yes  No

2022 2021 Year-on-year change 2020

Operating revenue (RMB) 104,894,324,162.26 78,221,418,618.02 34.10% 57,742,742,893.96

Net profit attributable to

shareholders of the Company 1,749,181,131.83 4,274,702,999.38 -59.08% 2,848,007,269.61
(RMB)
Net profit attributable to

shareholders of the Company 1,627,378,630.73 3,832,421,177.27 -57.54% 2,758,911,040.03
excluding non-recurring profits and
losses (RMB)

Net cash flow from operating 8,317,113,364.68 8,598,475,527.88 -3.27% 7,682,256,113.68
activities (RMB)

Basic earnings per share (RMB / 0.52 1.29 -59.69% 0.89
share)

Diluted earnings per share (RMB / 0.52 1.28 -59.38% 0.89
share)

Weighted average return on net 6.17% 17.61% -11.44% 16.40%
assets

End of 2022 End of 2021 Year-on-year change End of 2020

Total assets (RMB) 77,176,355,467.91 61,079,051,133.27 26.35% 49,117,826,313.41

Net assets attributable to

shareholders of the Company 29,491,882,199.49 27,327,747,993.97 7.92% 19,653,252,273.26
(RMB)

Indicate whether the lower of the net profit before and after non-recurring gains and losses was negative for the last three accounting
years, and the latest auditor’s report indicated that there was uncertainty about the Company’s ability to continue as a going concern.
 Yes  No

Indicate whether the lower of the net profit before and after non-recurring gains and losses was negative.  Yes  No


Ⅶ. Differences in accounting data between domestic and foreign accounting standards

1. Differences in net profits and net assets in the financial reports disclosed according to international
accounting standards and Chinese accounting standards

 Applicable  Not applicable

During the reporting period, there is no difference in net profits and net assets in the financial reports disclosed pursuant to

international accounting standards and Chinese accounting standards

2. Differences in net profits and net assets in the financial reports disclosed according to foreign accounting
standards and Chinese accounting standards
 Applicable  Not applicable

During the reporting period, there is no difference in net profits and net assets in the financial reports disclosed pursuant to foreign
accounting standards and Chinese accounting standards.

Ⅷ. Key Quarterly Financial Indicators

Unit: RMB

The first quarter The second quarter The third quarter The fourth quarter

Operating revenue 20,111,796,850.74 23,491,677,031.37 30,549,276,176.86 30,741,574,103.29

Net profit attributable to 901,114,518.82 1,177,731,691.33 1,761,261,980.08 -2,090,927,058.40
shareholders of the Company
Net profit attributable to

shareholders of the Company 878,301,318.86 1,136,026,374.30 1,470,919,799.57 -1,857,868,862.00
excluding non-recurring profits and
losses (RMB)

Net cash flow from operating 1,466,497,950.54 3,122,178,119.98 -1,028,533,463.06 4,756,970,757.22
activities

Whether there is significant difference between the above individual or aggregate financial indicators and that of what disclosed in
the quarterly reports and semi-annual reports disclosed by the Company

 Yes  No

Ⅸ. Items andAmounts of Non-recurring Profits and Losses

 Applicable  Not applicable

Unit: RMB

Item 2022 2021 2020 Explanation

Mainly

Profits and losses on disposal of non-current investment

assets (including the write-off portion of the 122,922,237.61 -122,148,708.58 -219,544,001.32 income from

provision for asset impairment) disposal of equity
owned in other

companies

Government subsidies included in the current Mainly special

profits and losses (except those closely related funds for

to the Company's normal business, comply enterprise

with national policies and regulations, and 351,383,799.43 464,119,437.91 221,372,903.17 innovation and

continuously grant in accordance with a certain development and
standard quota or quantity) other government
subsidies


In addition to the effective hedging business

related to normal business of the Company, the Mainly the gains
profits and losses from the changes in fair from the fair

value arising from holding financial assets held value changes

for trading and financial liabilities held for -367,080,970.87 185,179,920.90 102,685,404.04 and transaction of
trading, as well as the investment income from the Company's

the disposal of financial assets held for trading, foreign exchange
financial liabilities held for trading and derivatives

available-for-sale financial assets

Other non-operating revenue and expenditures 15,710,102.76 13,554,671.71 5,874,633.40

other than those mentioned above

Mainly tax

benefits and

investment

Other profit and loss items that meet the 42,288,231.23 2,603,363.20 3,236,394.55 income from

definition of non-recurring profit and loss large-

denomination

deposits and

other products

Less: Impact of income tax 26,114,589.64 84,270,186.15 21,159,380.84

Impact of minority interests (after tax) 17,306,309.42 16,756,676.88 3,369,723.42

Total 121,802,501.10 442,281,822.11 89,096,229.58 --

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

 Applicable  Not applicable

Mainly tax benefits and investment income from large-denomination deposits and other products

Description of defining the non-recurring profit and loss items, which are listed in ExplanatoryAnnouncement No. 1 on Information
Disclosure for Companies with Public Offerings of Securities - Non-recurring Profit and Loss, as recurring profit and loss

 Applicable  Not applicable

The Company did not classify any item of the non-recurring profit and loss items listed in the ExplanatoryAnnouncement No. 1 on
Information Disclosure for Companies with Public Offerings of Securities - Non-recurring Profit and Loss, as recurring profit and

loss in the reporting period.


Section III Management Discussion and Analysis

Ⅰ. The situation of the industry during the reporting period

During the reporting period, the Company's main business is categorized into the industry of the manufacturing of computer,
communication, and other electronic equipment, and is divided into three segments including precision components business, smart
audio device business and smart hardware business. The Company operates mainly in consumer electronics, automotive electronics
and other industries, with the main products including acoustics, optics, microelectronics, structural components and other precision
components, as well as smart hardware products such as virtual reality (VR)/augmented reality (AR) products, TWS smart earphones,
smart wearable devices, gaming console and accessories, and smart home products. The Company serves the leading global customers
in the technology and consumer electronics industry by providing them with vertically integrated product solutions of precision
components and smart hardware, as well as the related design, R&D and manufacturing services.

In the mobile era with smartphones as the core hardwares, a large number of outstanding well-known enterprises in technology and
consumer electronics industry had emerged worldwide based on the integration of hardware devices, software content and innovative
applications, which drove the whole industry and related enterprises in its industrial chain to achieve significant growth and enterprise
development through a long period of time in the past. However, affected by many adverse factors such as macroeconomic weakness
and high inflation in many European and American countries in 2022, global smartphone product shipments declined significantly, and
the transition of the technology and consumer electronics industry from the mobile era to the post-mobile era accelerated. During the
reporting period, the Company continued to seize opportunities in the industry with the approach of the post-mobile era to consolidate
its core competitiveness, actively expand the business of next-generation smart hardware and related components, and promote the
Company's overall business development.

According to the statistics of IDC, a well-known consulting agency, the global smartphone shipment in 2022 reached about 1.21 billion
units, with an approximately 11% YoY decline. As the shipments decline, the pace of innovation in technologies and application
scenarios of smartphone products has slowed down, the demand of smartphone related precision component has shrunk as well.
However, at the same time, advanced technologies such as 5G, AI, intelligent interaction, sensor, software algorithm are further
integrated into next-generation smart hardware products, thus creating a large number of new applications and demands, so as to
promote the sustainable development of next-generation smart hardware products such as VR/AR devices, smart wireless earphones,
smart wearable devices and smart home products.

In the first half of 2022, the global VR industry maintained a relatively strong momentum of growth. However, in the second half of
2022, due to the adverse impact of macroeconomic downturn, inflation, weak consumption and other factors, VR products performed
poorer than expected in the third and fourth quarters which are traditionally the peak season of sales in Europe and the United States,
and thus impacted the annual performance of the VR industry. According to the statistics of IDC, the global shipment of VR products
declined in 2022 compared to the previous year. However, according to the estimates of the Company's internal market research
department, the total shipments of the world's top three VR device brands in 2022 still grew over the previous year. Though the growth
of the global VR industry is slightly slower than expected, the well-known brand companies in consumer electronics and Internet
industries kept actively investing in VR, which promotes the continuous development of related hardware technology and software
content. In 2022, AR products were still in the early stages of technological breakthroughs and product maturity. The global market
size of AR products is still limited, and the hardware technologies still face challenges in many areas such as chip, optical display,
communication, power consumption, size, weight, and others. However, the great market potential still attracts extensive attention and
continuous investment from well-known companies in the industry.

In November 2022, five government authorities including the Ministry of Industry and Information Technology co-issued The Virtual
Reality and Industry Application Integration Development Action Plan (2022-2026) to further laid down the overall requirements,
goals, key tasks and projects for the development of China's VR industry, which was expected to promote the sustainable and healthy
development of the industry.

According to the statistics of FutureSource, a famous consulting agency, the global shipment of TWS smart earphones reached about
340 million units in 2022, up about 13% YoY. And about 98.61 million smart speakers were shipped globally in 2022, declined about
8.6% YoY. With the integration of AI, natural language processing and smart voice interaction technologies, the smart earphones,
smart speakers and other products are expected to further develop in the future.

According to the statistics of IDC, another well-known consulting agency, the global shipment of smart wearable products such as
smart watches reached about 149 million units in 2022, with approximately 9.4% YoY increase. While the overall market size is
growing steadily, next-generation health monitoring technology such as non-invasive glucose monitoring is also under development
and improvement, which is expected to create new applications and market demands for smart wearable products in the future.


The development of next-generation smart hardware products has also boosted the demand for related precision components such as
precision optical components and modules, precision acoustic components, MEMS sensors and microsystem modules, haptic

components, and precision structural parts.

From the perspective of competition, the global technology and consumer electronics industry still presents a centralized trend. Well-
known enterprises with strong competitiveness and brand awareness demonstrate clear competitive advantages by possessing a large
amount of technologies, talents, funds, brands and industrial ecosystem resources, thus continuously lead the technology and product
innovation in the industry.

From the perspective of supply chain, developing countries including China are demonstrating more and more important roles. On one
hand, China still has advantages in terms of political/economic environment, infrastructure, industrial foundation
management/technical talent resources and other aspects. The overall competitiveness of electronic manufacturing enterprises of China
is improving, and they undertake the demand of manufacturing service of the global supply chain. On the other hand, considering the
complicated international political and economic environment, some enterprises faced the challenges of setting up a global supply
chain, which needs to be tackled prudently in a scientific manner.

II. The Company’s main business during the reporting period

The Company is committed to serve the leading customers in the global technology and consumer electronics industry by providing
vertically integrated product solutions of precision components and smart hardware, as well as related design, R&D and manufacturing
services.

The Company's main business divides into three segments including precision components business, smart audio device business and
smart hardware business. The precision components business focuses on acoustics, optics, microelectronics, structural components,
and other precision components. The related products include micro speaker/receiver, speaker module, haptic component (actuator),
wireless charging device, antenna, MEMS microphone, MEMS sensors, microsystem module, VR optical component and module, AR
optical component, AR light engine, precision structural parts and etc. The above-mentioned products are widely applied in devices
such as smartphones, tablets, smart wireless earphones, VR, AR, smart wearable and smart home devices. Smart audio device business
focuses on providing products related to audio, voice interaction, AI, and other technologies. The main products include smart wireless
earphones (TWS), wired/wireless earphones, smart speakers, etc. Smart hardware business focuses on providing products related to
entertainment, health and home security. The main products include VR, AR, smart wearable products, gaming consoles and
accessories, smart home products, etc. In addition, the Company actively explored business opportunities related to automotive
electronics during the reporting period, and made progress in some new directions such as car sensors, optical modules, etc.

The Company has innovative competitive advantages in the fields of acoustics, optics, MEMS microelectronics and precision
manufacturing, and owns many intellectual property rights in the field of precision parts and components. In addition, the Company
has accumulated rich experience in products and projects bycooperating with industry-leading clients in the field ofsmart audio device
and smart hardware through "ODM", "JDM" and other business modes. During the reporting period, the Company maintained good,
long-term cooperative relationships with leading clients in the global technology and consumer electronics industry. As a result, the
Company has been highly recognized by global clients for its product solutions and services, and remains being the industry-leading
manufacturer in the fields of micro speakers, MEMS microphones, MEMS sensors, VR products, TWS, smart wearable products,
gaming console and accessories, etc.

During the reporting period, due to the business growth in VR, smart home gaming consoles and accessories, the revenue of the
Company grew significantly. The Company's position in the industry has also been further improved as well. The Company won many
honors, including being ranked the 3rd company in the Top-100 China electronic component enterprises based on comprehensive
economic indexes, the 67th in the Top-500 private enterprises in China's manufacturing industry, the 118th in the Top-500 private
enterprises in China, and held the position of executive member company of CITIF.

Ⅲ.Analysis of Core Competitiveness

1.Industry-leading precision and intelligent manufacturing capabilities

In technology and consumer electronics related fields, the Company has been widely recognized for precision manufacturing
capabilities and obtains great reputation. Relying on the core capabilities and long-term experience in the field of precision
manufacturing, the Company has continuously improved the processing accuracy, efficiency and quality of precision components and
smart hardware products. The Company has in-house development capabilities of various core raw materials, and The Company
adopted multiple advanced processes and technologies such as ultra-high-precision mold, high-precision metal/non-metal processing,
ultrasonictechnologyand laser technology, tobuildindustry-leadingprecisionmanufacturingcapabilitiesintheproductionofprecision

optical components, MEMS sensors, microsystem modules and precision structural parts, thus ensuring the delivery of the products
with high precision, high efficiency and high quality.

The Company, based on the capacities of advanced equipment development and flexible automation production, actively explores the
intelligent manufacturing mode for upgrading. In the fields of automation, machine vision and AI related to intelligent manufacturing,
the Company has built a future-oriented core capability of intelligent manufacturing by continuing investing in independent R&D,
introducing global advanced technologies, core equipment and best practice experience for system integration, thus improving the
manufacturing in all aspects through the application of information, automation, artificial intelligence and other technologies. The
Company promotes the transformation of its manufacturing to a more digitalized, connected, intelligent, and service-oriented model,
and to build the core capabilities of future-oriented intelligent manufacturing.

2. Multi-technologies integration platform and strong team of R&D personnel

TheCompanyhasestablished aproduct R&Dand manufacturingplatformintegrating materials, structures, electroniccircuits, software
algorithms, wireless communication, advanced technology, testing, automation and other technologies. Through cross-domain
technology integration, the Company provides customers with advanced and systematic solutions for precision components and smart
hardware products. The Company attaches great importance to the integration and cultivation of outstanding talents in the fields of
acoustics, optics, microelectronics, wireless communication, precision manufacturing, automation, and other sectors around the world.
The Company has set up a team of technical personnel with profound technical strength and rich experience in product projects, and
has made a long-term cooperation with many well-known universities and scientific research institutions, such as Tsinghua University,
Zhejiang University, Shandong University, Southeast University, Ocean University of China, Spring Institute of Chinese Science and
Technology, Xiamen University, and Changchun University of Science and Technology, which forms an open and comprehensive
technology R&D platform in support of continuous innovation and R&D of technologies and products.

During the reporting period, the Company applied for 3,388 patents, including 2,545 invention patents. A total of 2,195 patents has
been granted, including 1,250 invention patents. As of December 31, 2022, the Company has totally applied for 29,206 patents,
including 3,738 foreign patent applications and 15,647 invention patents applications; a total of 17,720 patents have been granted,
including 5,415 invention patents.

3. Continuous strategic innovation and transformation, and stable high-value customer relationships

Facingthecomplexmacroeconomicsituationofdomesticandoverseas, themanagement oftheCompanyactivelycarriesoutstrategicalinnovationandtransformation.Whilecontinuingtoconsolidatethecorecompetitiveadvantagesinconventionalbusiness,the Company
firmly grasps the innovation opportunities of next-generation smart hardware products in the technology and consumer electronics
industry. Relying on the high-value customer resources and good customer relationships worldwide, the Company, oriented by the
market and technology, continues to explore new business growth opportunities in the fields of consumer electronics and automotive
electronics. The Company optimizes the allocation of strategical resource, supports strategical product development, continues
strengthening and further utilize the customer resource advantages by closely following the world-class customers, in an effort to
transform the needs of high-value customers into an inexhaustible driving force for the Company's sustainable development.

4. Excellent core management team

Although the Company experiences a rapid and sound development, the core management team keeps a steady and efficient style as
always. Facing the challenges and demands of smart hardware products in the post mobile era such as rapid development, high quality,
high precision manufacturing, short delivery cycle and complex customer certification process, the core management team promp tly
response to the market and makes changes and innovations continuously, to keep and enhance the Company's capabilities of strategic
management, operation, R&D, precision and intelligent manufacturing. The Company attaches importance to and promotes the
internationalization, specialization and rejuvenation of its core management team, and actively brings in senior management talents
and professionals from many international leading enterprises. At the same time, the Company has strengthened the echelon of its
talent team, more and more young talents grow up into the Company's core management team through training and practice. The
Company boasts a management team with both experience and vitality that continues to promote the Company's stable and fast
development in the future.
IV.Analysis of Main Business
1. Overview

In 2022, as the global economy faced downward pressure from a macroeconomic perspective, China's economic development was also
affected by multiple unexpected factors at home and abroad. In the face of a severe external environment, China responded decisively
and exercised timely regulation, introduced and implemented a package of policies and follow-up measures to stabilize the economy,
and promoted economic stabilization and recovery, thus ensuring steady economic performance.

Duringthereportingperiod,theCompany,byadheringtotheproductstrategyof"PrecisionComponents+Smart Hardware&Devices”,
served the leading enterprises in the global technology and consumer electronics industry, actively promoted the development of
precision components (acoustics, optics, microelectronics, structural parts, etc.) and emerging smart hardware business (VR/AR, smart
wireless earphones, smart wearable and smart home devices, etc.). At the same time, the Company continued to promote its internal
reform and operation management improvement, so that the Company’s operation from decision making to implementation operation
would be more efficient. This could lay a solid foundation for future development.

During the reporting period, in the face of numerous challenges such as the weak global economy, high inflation in Europe and the
United States, and the downturn in the consumer electronics industry, the management team and all staff of the company went all out
to overcome these challenges calmly, completed various important tasks such as business expansion, project delivery and operational
improvement, and promoted the stable development of various business fields. The Company's revenue in 2022 continued to grow
significantly.

In the fourth quarter of 2022, the Company experienced fluctuations during the production of one of its new smart acoustic device
products (for details, please refer to the relevant announcement made by the Company). After the occurrence of the above incidents,
the Company's management team responded actively by communicating frequently with customers, facilitating the solution of the
incidents, making an effort to maintain and improve customer relations, and ensured that other business cooperation is carried out as
usual. The Company fully considered the impact of this matter, and based on the principle of prudence, increased the provision for
related asset impairment, which resulted in a decline in the Company's net profit in 2022. In response to the above incidents, the
Companyhas carefullyreflected on its mistakes and learned important lessons, and subsequently, rectified the shortcomings in relevant
work. The Company firmly believes that this contingency will not weaken the Company's core competitiveness, shake the Company's
business foundation, or undermine the Company's stable and healthy development in the long term.

During the reporting period, the Company achieved an operating revenue of RMB 104,894.3242 million, with a 34.10% YoY increase.
The Company realized a net profit attributable to shareholders of listed companies of RMB 1,749.1811 million, with a 59.08% YoY
decline. The operating cost of the Company was RMB 93,233.4765 million, with a 38.81% YoY increase.

During the reporting period, the total amount of the Company's selling expenses, administrative expenses, R&D expenses and financial
expenses was RMB 8,218.4527 million, with a 22.05% YoY increase.

During the reportingperiod, the Companyfurther strengthened thedevelopment ofnewtechnologies, products and techniques, actively
brought in high-level R&D talents, and invested RMB 5,198.3122 million in R&D, accounting for 4.96% of the revenue and 17.18%
of the latest audited net assets of the Company.

During the reporting period, the net cash flow from operating activities of the Company was RMB 8,317.1134 million, with a 3.27%
YoY decline.
2. Revenue and cost
(1) Composition of operating revenue

Unit: RMB

2022 2021

Proportion in Proportion in Year-on-year change
Amount operating revenue Amount operating revenue

Total of operating 104,894,324,162.26 100% 78,221,418,618.02 100% 34.10%
revenue
Classified by industry

Electronic 102,966,939,788.80 98.16% 76,946,324,805.73 98.37% 33.82%
components

Other business 1,927,384,373.46 1.84% 1,275,093,812.29 1.63% 51.16%
income
Classified by product

Precision 14,003,616,502.68 13.35% 13,840,133,491.33 17.69% 1.18%
components

Smart audio 25,880,868,282.31 24.67% 30,297,084,891.23 38.73% -14.58%
device


Smart hardware 63,082,455,003.81 60.14% 32,809,106,423.17 41.94% 92.27%

Other business 1,927,384,373.46 1.84% 1,275,093,812.29 1.63% 51.16%
income
Classified by region

Domestic 9,182,257,334.82 8.75% 7,571,525,782.78 9.68% 21.27%

Overseas 95,712,066,827.44 91.25% 70,649,892,835.24 90.32% 35.47%

Classified by sales mode

Direct selling 104,414,898,362.49 99.54% 77,770,329,729.13 99.42% 34.26%

Distribution 479,425,799.77 0.46% 451,088,888.89 0.58% 6.28%

(2) Industries, products, regions and sales modes accounting for more than 10% of the Company's operating revenue or

operating profit
 Applicable  Not applicable

Unit: RMB

Gross YoY change (%) YoY change (%) YoY change
Operating revenue Operating cost profit of operating of operating cost (%) of gross
margin revenue profit margin

Classified by industry

Electronic 102,966,939,788.80 91,509,198,680.69 11.13% 33.82% 38.54% -3.03%
components
Classified by product

Precision 14,003,616,502.68 11,035,414,492.23 21.20% 1.18% 3.70% -1.91%
components

Smart audio 25,880,868,282.31 24,417,812,289.94 5.65% -14.58% -10.12% -4.68%
device

Smart hardware 63,082,455,003.81 56,055,971,898.52 11.14% 92.27% 98.46% -2.77%

Classified by region

Domestic 7,668,917,691.68 6,712,603,655.53 12.47% 11.50% 13.37% -1.44%

Overseas 95,298,022,097.12 84,796,595,025.16 11.02% 36.01% 41.01% -3.16%

Classified by sales mode

Direct selling 102,489,902,939.54 91,100,679,999.97 11.11% 33.98% 38.73% -3.05%

Distribution 477,036,849.26 408,518,680.72 14.36% 6.66% 5.46% 0.97%

If the statistical caliber of the Company's main business data has been adjusted in the reporting period, adjusted statistics of main

business are based on the caliber at the end of the reporting period of last year.

 Applicable  Not applicable

(3) Whether the Company's revenue from physical products sales is greater than the revenue from providing services

 Yes  No

Classification of Item Unit 2022 2021 Year-on-year change
industry

Electronic Sales volume Ten thousand PCS 453,825.95 540,341.87 -16.01%

components Output volume Ten thousand PCS 461,666.20 546,976.95 -15.60%

industry Inventory volume Ten thousand PCS 41,876.34 34,036.09 23.04%

Reasons for changes in the relevant data over 30% year-on-year

 Applicable  Not applicable


(4) Fulfillment of major sales contracts and major procurement contracts signed by the Company as of the reporting period
 Applicable  Not applicable
(5) Composition of operating cost
Classification of industry

Unit: RMB

2022 2021

Classification of Item Proportion in Proportion in Year-on-year
industry Amount operating cost Amount operating cost change

Direct materials 80,345,630,863.8 87.80% 55,843,214,176.77 84.54% 43.88%
6

Electronic Direct labor 4,168,178,564.20 4.56% 4,058,480,923.72 6.14% 2.70%
components expenses

Manufacturing 6,995,389,252.63 7.64% 6,152,377,303.86 9.31% 13.70%
expenses

Explanation

During the reporting period, the Company's overall sales volume increased. At the same time, the sales revenue of smart hardware
products with a relatively high proportion of material cost increased.

(6) Whether there is any change in consolidation scope during the reporting period

 Yes  No

During the current period, the Company acquired 8 subsidiaries through establishment. They are respectively Goertek Optical
Technology (Qingdao) Co., Ltd, Goertek Optical Technology (Shanghai) Co., Ltd., Qingdao Resonance Venture Capital Management
Co., Ltd., Qingdao Resonance Phase I Venture Capital Fund Partnership (Limited Partnership), Weifang Goertek Electronics Co., Ltd.,
Qingdao Goertek Horizons Technology Co., Ltd., Weifang High-tech Zone Goertek Education Center and GOERTEK
MICROELECTRONICS VIETNAM COMPANY LIMITED.

During the current period, the Company disposed of two subsidiaries, namely Shenzhen Mototek Smart Technology Co., Ltd. and
Qingdao Resonance Venture Capital Management Co., Ltd.

(7) Significant changes or adjustments in the Company's business, products or services during the reporting period

 Applicable  Not applicable
(8) Major customers and suppliers
Major customers of the Company

Sales revenue from top five customers (RMB) 92,215,461,912.74

Proportion of total sales revenue from top five customers in total 87.91%
annual sales amount

Proportion of sales revenue from related parties among top five 0.00%
customers in total annual sales amount

Information of top five customers

No. Name of customer Sales amount (RMB) Proportion in total annual sales
amount

1 Customer 1 32,642,129,185.96 31.12%

2 Customer 2 29,741,869,268.77 28.35%

3 Customer 3 19,794,346,646.32 18.87%

4 Customer 4 6,317,827,464.88 6.02%

5 Customer 5 3,719,289,346.81 3.55%


Total -- 92,215,461,912.74 87.91%

Other information of major customers
 Applicable  Not applicable

The top five customers do not have associated relationship with the Company. The Company's directors, supervisors, senior
management, core technicians, shareholders holding more than 5% of total shares, actual controllers and other related parties do not
directly or indirectly own rights and interests in the main customers.

Major suppliers of the Company

Total purchase amount from top five suppliers (RMB) 34,784,627,246.36

Proportion of total purchase amount from top five suppliers in 38.35%
total annual purchase amount

Proportion of purchase amount from related parties among top 0.00%
five suppliers in total annual purchase amount

Information of top five suppliers

No. Name of supplier Purchase amount (RMB) Proportion in total annual

purchase amount

1 Supplier 1 19,413,509,317.84 21.41%

2 Supplier 2 8,083,723,203.19 8.91%

3 Supplier 3 4,219,990,040.96 4.65%

4 Supplier 4 1,652,205,913.87 1.82%

5 Supplier 5 1,415,198,770.50 1.56%

Total -- 34,784,627,246.36 38.35%

Other information of major suppliers
 Applicable  Not applicable

The top five suppliers do not have associated relationship with the Company, and the Company's directors, supervisors, senior
management, core technicians, shareholders holding more than 5% of total shares, actual controllers and other related parties do not
directly or indirectly own rights and interests in the main suppliers.

3. Expenses

Unit: RMB

2022 2021 Year-on-year change Note of significant

change

Selling expenses 548,298,842.05 444,869,977.08 23.25% No significant change

Administrative expenses 2,294,505,645.46 1,951,657,773.32 17.57% No significant change

Financial expenses 149,123,081.74 167,099,982.36 -10.76% No significant change

R&D expenses 5,226,525,154.99 4,170,074,282.10 25.33% No significant change

4. R&D Investment
 Applicable  Not applicable


Name of major Purpose of project Status of Objectives Expected benefits to future
R&D project project development of the Company

Develop a new generation Collaborate with major customers

of micro speaker module to iterate intelligent hardware Continuously consolidate the
R&D project of products with high products, complete R&D of a Company's competitive

micro speaker sensitivity, low distortion, In progress number of micro speaker module advantage and market share
module large amplitude, waterproof products, and achieve mass in the field of acoustic

and dustproof features. production and application on precision components.

customer products

To complete the R&D, verification, The project facilitates the

application and mass production of Company’s business

R&D project of To develop MEMS sensors MEMS sensors and microsystem expansion in the field of

MEMS sensor and microsystem module modules featuring voice MEMS sensors and

and microsystem products applied to smart In progress interaction, adapterization and microsystem modules, and

module hardware and automotive noise reduction, signal further enhances the

electronics. transmission and status monitoring, Company's comprehensive

used in the field of smart hardware strength in the field of

and automotive electronics MEMS.

The project helps enhance the
Develop the precision Company's competitive

optical components and Complete the R&D and mass advantage and market share
module products by using production of optical lens and in the field of VR/AR

R&D project of emerging optical module products for new precision optical components
VR/AR precision technologies such as generation of all-in-one VR and modules, promote the

optical “Pancake” folded-lightpath In progress products, and improve the ability Company's ability to provide
components and lenses and optical of comprehensive solution of customers with customized
modules waveguide technology, and optical devices and light engines VR/AR optical solutions, and
promote their application in for AR products. improve the Company's

VR/AR products. vertical integration ability

and profitability in the field
of VR/AR.

To develop micro To complete the design, technical Enhance the competitiveness
projection modules for AR, verification and commercial of the Company in AR

R&D project of AR-HUD, and so on, and application of related micro optical modules, and extend
AR optical promote its application in In progress projection modules, and develop the Company's capabilities in
modules consumer electronics, micro projection module solutions optical modules to the field
automotive electronics, etc. for consumer electronics and of automotive electronics

automotive electronics

Develop lightweight all-in- Cooperate with our customer to

R&D project of one VR HMD products complete R&D, validation, mass The project helps consolidate
all-in-one VR featured with high- In progress production of a number of new- the Company's competitive
HMD definition display, precise generation all-in-one VR HMD advantage and market share
motion tracking and other products based on the latest chip in the field of VR.

features. platform

R&D project of Cooperate with our customer to It helps consolidate the

TWS smart Develop a new generation complete R&D, validation, mass Company's competitive

wireless of TWS smart wireless In progress production of a number of new- advantage and market share
earphones earphones generation of TWS smart wireless in the field of TWS smart

earphones wireless earphones.


Develop a new generation Consolidate the Company's
R&D project of of smart wearable devices Cooperate with our customer to competitive advantage and

smart wearable with functions of complete R&D, validation, mass market share in smart

devices for sport independent In progress production of a new generation of wearable devices such as

and health related communication, health smart watches and smart bands smart watches and smart

applications monitoring features and bands

etc.

To complete the R&D and trial

production of a number ofAR

glasses products, based on the It helps enhance the

Develop wireless latest chip platform, with the Company's R&D experience
R&D project of lightweight AR glasses and functions of data processing and and technology accumulation
smart wireless their main functional In progress wireless communication, using in the field ofAR and

lightweight AR modules for futureAR advanced precision optics and facilitates the business

glasses applications. micro-display technologies such as expansion of the Company in
optical waveguide and silicon- AR field.

based LED, so as to develop the

solution capability for AR glasses

and their main functional modules

R&D personnel of the Company

2022 2021 Year-on-year change

Number of R&D personnel 12,305 12,895 -4.58%

Proportion of R&D personnel 14.42% 13.46% 0.96%

Academic structure of R&D personnel

Bachelor 8,099 9,148 -11.47%

Master 2,550 2,414 5.63%

PhD 54 63 -14.29%

Age of R&D personnel

Below the age of 30 5,346 5,105 4.72%

Aged between 30 to 40 6,172 7,162 -13.82%

Over the age of 40 787 628 25.32%

The Company’s investment in R&D

2022 2021 Year-on-year change

Amount of R&D Investment (RMB) 5,198,312,190.48 4,301,342,763.66 20.85%

Proportion of R&D investment in 4.96% 5.50% -0.54%
operating revenue

Capitalized amount of R&D investment 597,278,121.61 662,993,650.30 -9.91%
(RMB)

Proportion of capitalized R&D 11.49% 15.41% -3.92%
investment in R&D investment

Reasons and impacts of significant changes in R&D personnel composition of the Company

 Applicable  Not applicable

Reasons for significant changes in the proportion of total R & D investment in operating revenue compared with that of previous year
 Applicable  Not applicable

Reasons and explanation of its reasonableness of significant changes in capitalized R & D investment

 Applicable  Not applicable

5. Cash flow

Unit: RMB

Item 2022 2021 Year-on-year change

Sub-total of cash inflow from 92,960,786,011.89 85,523,439,745.15 8.70%
operating activities

Sub-total of cash outflow from 84,643,672,647.21 76,924,964,217.27 10.03%
operating activities

Net cash flow from operating 8,317,113,364.68 8,598,475,527.88 -3.27%
activities

Sub-total of cash inflow from 1,141,805,421.45 3,276,323,800.48 -65.15%
investing activities

Sub-total of cash outflow from 10,218,818,104.61 10,044,700,261.35 1.73%
investing activities

Net cash flow from investing -9,077,012,683.16 -6,768,376,460.87 34.11%
activities

Sub-total of cash inflow from 31,722,066,906.40 14,003,754,499.97 126.53%
financing activities

Sub-total of cash outflow from 29,714,438,433.99 13,616,577,139.69 118.22%
financing activities

Net cash flow from financing 2,007,628,472.41 387,177,360.28 418.53%
activities

Net increase in cash and cash 1,662,092,566.77 2,224,708,917.50 -25.29%
equivalents

Main influencing factors of significant year-on-year changes in relevant data

 Applicable  Not applicable

(1) The sub-total of cash inflow from investing activities was RMB 1,141.8054 million, with a year-on-year decline of 65.15%, and
the net cash flow generated from investing activities was RMB -9,077.0127 million, with a year-on-year decline of RMB 2,308.6362
million, mainly due to the higher cash inflow from investing activities during the previous reporting period and the increase of the
Company's purchase of long-term assets, such as fixed assets, and structured deposits.

(2) The subtotal cash inflow from financing activities was RMB 31,722.0669 million, with a year-on-year increase of 126.53%; the
subtotal cash outflow from financing activities was RMB 29,714.4384 million, with a year-on-year increase of 118.22%; and the net
cash flow generated from financing activities was RMB 2,007.6285 million, with a year-on-year increase of 418.53%, mainly due to
the increase in cash received from borrowings during the reporting period.

The reason for significant difference between the net cash flow from the Company's operating activities during the reporting period
and net profit in current year.

 Applicable  Not applicable

The net cash flow generated from operating activities exceeded the net profit of the current year by 364.38%, mainly due to the
expansionofoperation scaleand theincreaseofaccumulated asset depreciation and amortizationandtheprovisionfor asset impairment.
V.Analysis of Non-main Business
 Applicable  Not applicable

Unit: RMB

Amount Proportion in total Explanation of the cause Whether it is

profit sustainable

Investment income -36,243,969.62 -2.40% No

Gains on changes in -57,081,334.97 -3.78% No

fair value

Asset impairment -1,782,744,359.91 -118.12% Mainly due to the provision for No


losses impairment of assets related to a

new smart acoustic product

during the reporting period

Non-operating income 21,477,460.44 1.42% No

Non-operating 122,730,370.49 8.13% No

expenses
VI.Analysis ofAssets and Liabilities

1. Major changes in asset composition

Unit: RMB

End of 2022 At the beginning of 2022

Proportion Proportion YoY change Note of significant
Amount in total Amount in total (%) change

assets assets

Cash at bank and 12,682,871,091.80 16.43% 10,048,521,696.09 16.45% -0.02%

on hand

Accounts 14,396,180,782.93 18.65% 11,899,214,525.92 19.48% -0.83%

receivable

Increased inventories
Inventories 17,348,670,744.58 22.48% 12,082,308,485.38 19.78% 2.70% along with the

expansion of

operation scale

Long-term equity 361,008,671.83 0.47% 437,402,203.91 0.72% -0.25%

investments

Raised funds to

invest in projects,

increased the

purchase of

production

Fixed assets 21,459,756,268.25 27.81% 18,123,352,480.76 29.67% -1.86% equipment, testing

devices, and some

infrastructure projects
have been converted
into fixed assets after
reaching their

intended state of use

Construction in 2,424,443,775.33 3.14% 2,127,055,853.77 3.48% -0.34%

progress

Right-of-use assets 580,175,922.73 0.75% 330,796,520.66 0.54% 0.21%

Increased operating
Short-term 7,120,846,026.67 9.23% 4,284,859,347.02 7.02% 2.21% capital along with the
borrowings expansion of

operation scale

Contract liabilities 2,295,347,547.31 2.97% 2,210,825,761.69 3.62% -0.65%

Long-term 2,206,000,000.00 2.86% 2,204,215,784.74 3.61% -0.75%

borrowings

Lease liabilities 470,704,507.75 0.61% 210,209,955.40 0.34% 0.27%

Accounts payable 25,748,758,270.19 33.36% 18,529,609,655.40 30.34% 3.02% The number of

purchasing orders


increased along with
business expansion

Current portion of

non-current 1,095,618,327.74 1.42% 501,408,170.04 0.82% 0.60%

liabilities

Other current 4,252,178.60 0.01% 14,844,359.01 0.02% -0.01%

liabilities

Deferred tax 816,118,632.40 1.06% 389,933,389.40 0.64% 0.42%

liabilities

Financial liabilities 202,293,742.46 0.26% 15,190,564.34 0.02% 0.24%

held for trading

With the expansion
of operation scale,

company's purchase
payments settled by
Notes payable 4,850,498,246.08 6.28% 2,742,876,464.23 4.49% 1.79% banker's acceptance
bills increased, and
the amount of

outstanding

acceptance bills

increased

Foreign assets account for a relatively high proportion

 Applicable  Not applicable

Proportion of Whether
Cause of Assets scale Operation Measures overseas there is a
Asset details formation (RMB) Location mode to ensure Earnings assets in the significant
asset safety net assets of impairment
the Company risk

Goertek Effective

Technology Establishment 4,107,738,419.61 Vietnam Production & internal Normal 13.58% No

(Vietnam) sales control

mechanism

Other The assets scale refers to the net assets of overseas subsidiaries. The proportion of overseas assets in the net assets
circumstances of the Company refers to the proportion of the net assets of overseas subsidiaries in the net assets of the listed

Company at the end of the reporting period

2.Assets and liabilities measured at fair value

 Applicable  Not applicable

Unit: RMB

Profit and loss Cumulative Impairment Purchase Sales amount in

Item Opening from changes in changes in fair accrued in amount in the the reporting Other changes Closing balance
balance fair value in the value included current reporting period

reporting period in equity period period

Financial assets
1. Financial
assets held for

trading 300,234,328.79 -49,950,701.98 210,000,000.00 11,100,146.56 471,383,773.37
(excluding
derivative
financial assets)

2. Derivative 20,462,992.36 164,830,672.72 646,234.52 185,939,899.60
financial assets


3. Other debt 14,575,230.24 190,438,343.84 182,637,699.96 22,375,874.12
investments
4. Investments

in other equity 465,677,764.54 63,867,720.18 201,302,452.01 20,893,800.00 39,145,000.85 699,249,262.24
instruments

Sub-total of 800,950,315.93 114,879,970.74 63,867,720.18 601,740,795.85 203,531,499.96 50,891,381.93 1,378,948,809.33
financial assets

Total of above 800,950,315.93 114,879,970.74 63,867,720.18 601,740,795.85 203,531,499.96 50,891,381.93 1,378,948,809.33
amounts

Financial 15,190,564.34 - 30,332,436.75 15,190,564.34 202,293,742.46
liabilities 171,961,305.71

Other changes
None

Whether the measurement attributes of major assets of the Company have changed significantly during the reporting period

 Yes  No

3. Restrictions on asset rights as of the end of reporting period

Items Book value at the end of the Reasons for restrictions

reporting period (RMB)

Cash at bank and on hand 1,392,748,538.84 Deposit for bills and borrowings

Notes receivable 5,848,815.01 Bill pledge and others

Current portion of non-current 70,184,291.67 When large-denomination certificates of deposit is

assets pledged to the bank, the bank will issue financing

Other non-current assets 544,796,722.20 guarantees, notes and so on

Total 2,013,578,367.72

Ⅶ.Analysis of Investment
1. Overall situation
 Applicable  Not applicable

Investment amount in 2022 (RMB) Investment amount in 2021 (RMB) YoY change (%)

9,210,478,674.05 7,494,700,261.35 22.89%

Other explanations:

To better reflect the overall investment status of the Companyduring the reporting period, the statistical indicatorswere adjusted, along
with the corresponding statistics of the same period of last year. The investment amount of the same period of last year was RMB
533.09 million before adjustment and RMB 7,494.70million after adjustment. The total investment amount of the Company in 2022
was RMB 9,210.48 million, with a year-on-year growth of 22.89%, mainly due to the increased investment for purchasing equipment.
2. Major equity investments acquired during the reporting period

 Applicable  Not applicable


3. Major non-equity investments in progress during the reporting period

 Applicable  Not applicable

Unit: RMB

Reasons

Accumulated for failure

Whether it Amount actual Accumulated to reach

Name of Investment is the Project invested during investment by Source Project Estimated income by the Disclosure date

project mode investment industry the reporting the end of the of funds progress income the end of planned (if any) Disclosure index (if any)
in fixed period reporting the reporting progress

assets period period and

expected

benefits

For details, see

Announcement of Goertek
Inc. on Signing of

Investment Cooperation

Agreement between the

Wholly-owned Subsidiary
Project of of the Company and the

Dongguan Management Committee of
Songshan Electronic Self- Not Not Not Dongguan Songshan Lake
Lake Self-built Yes components 184,507,138.34 495,232,699.67 raised 22.21% applicable applicable applicable January 3, 2019 High-tech Industrial

Goertek funds Development Zone

Industrial published in the information
Park disclosure media such as

CNINFO

(http://www.cninfo.com.cn),
Securities Times, China

Securities Journal, Shanghai
Securities News, Securities
Daily.

Total -- -- -- 184,507,138.34 495,232,699.67 -- -- Not Not -- -- --

applicable applicable

4. Financial asset investment
(1) Securities investment
 Applicable  Not applicable

Unit: RMB

Profit and loss Cumulative Purchase Sales Profit and Book value at

Security Security Security Initial Accounting Book value at from changes in changes in amount amount loss in the the end of the Accounting Source of
type code abbreviation investment measurement the beginning fair value in the fair value in the in the reporting reporting items funds
cost model reporting period included in reporting reporting period period

equity period period

Domestic Financial Self-

and KOPN KOPN 84,852,571.05 Fair value 98,804,286.66 -66,082,088.60 32,722,198.06 assets held raised

foreign measurements for trading funds

stocks

Total 84,852,571.05 -- 98,804,286.66 -66,082,088.60 32,722,198.06 -- --

Date of announcement disclosure

by the Board of Directors for February 11, 2017

approval of securities investment
Date of announcement disclosure

by shareholders meeting for March 2, 2017

approval of securities investment
(if any)
(2) Derivatives investment
 Applicable  Not applicable

1) Investments in derivatives for hedging during the reporting period

 Applicable  Not applicable

Unit: RMB 10,000

Type of derivatives Amount of initial Profit and loss from Cumulative changes Amount of purchase Amount of sales Proportion of

investment investment changes in fair value in fair value included during the reporting during the reporting Closing balance investment amount in
in the reporting period in equity period period the Company's net


asset at the end of the
reporting period

Option 121,138.30 -1,799.24 931,833.60 760,458.70 292,513.20 9.67%

Forward 518,981.98 -5,986.25 2,828,663.79 2,731,278.67 616,367.10 20.37%

Swap 178,519.60 7,072.43 519,780.22 380,493.00 317,806.82 10.50%

Total 818,639.88 -713.06 4,280,277.61 3,872,230.37 1,226,687.12 40.54%

Description of whether

the accounting policies The Company's derivatives transactions are calculated in accordance with Accounting Standards for Business Enterprises No. 22 — Recognition and Measurement
and specific accounting of Financial Instruments. The initial measurement is based on the fair value of the derivatives on the date of the signing of the transaction contracts, and the

principles for the subsequent measurement is based on its fair value. The derivative instrument with positive fair value is recognized as an asset, while the one with negative fair value
Company's hedging is recognized as a liability. The profits and losses generated by changes in fair value are directly recognized in current profit and loss.

business has changed The accounting policies and specific accounting principles for the Company's derivatives have no significant change compared with that of previous reporting

significantly compared period.
with that of previous
reporting period
Statement of actual

profit and loss in the The actual profit and loss of the Company's investments in derivatives for hedging during the reporting period was -309.9996 million.

reporting period

Statement of hedging To avoid exchange rate risks in daily operations, the Company hedged against its risks through financial derivatives. The changes in the value of the financial

effect derivatives effectively hedged the risk of changes in the existing position, and the overall hedging result is within expectations.

Source of funds for Self-raised funds

derivatives investment

Risk analysis and 1. The financial derivatives transactions carried out by the Company are for the purpose of fixing costs, avoiding and preventing risks of foreign exchange rate and
control measures for interest rate, and prohibiting any risk speculation. The trading quota of the Company's financial derivatives shall not exceed the authorized quota as reviewed and

derivatives positions approved by the Board of Directors or the general meeting of shareholders. 2. The Company has formulated a strict management system for financial derivatives

during the reporting transactions, which clearly stipulates the operating principles, approval authority, responsible departments and persons, internal operating procedures, information

period (including but not isolation measures, internal risk reporting system and risk handling procedures, and information disclosure of financial derivatives transactions, in order to control

limited to market risk, trading risks arising therefrom. 3. The Company shall carefully review the terms of contracts signed with qualified banks and other financial institutions, and strictly
liquidity risk, credit risk, implement the risk management system to prevent legal risks. 4. The Company's business personnel will continue to track the changes in the open market price or

operational risk, legal fair value of financial derivatives, timely assess the changes in risk exposure of financial derivatives transactions, and regularly report to the management of the

risk, etc.) Company. If any abnormal situation, inform the Board of Directors of the risk and take emergency measures accordingly. 5. The internal audit department regularly
conducts internal audit on the compliance of financial derivatives transactions.

In case of changes in Changes in the fair value of foreign exchange derivatives are calculated based on the difference between the fair market price and the contract price in the month of
market price or fair the settlement date determined by the Company.

value of invested
derivatives during the
reporting period, the

analysis of fair value of

the derivatives shall
disclose the specific
methods used and the
setting of relevant
assumptions and
parameters

Litigation involved None

Date of announcement
disclosure by the Board

of Directors for approval March 30, 2022

of the investment in
derivatives
Date of announcement
disclosure by

shareholders meeting for May 13, 2022

approval of the
investment in
derivatives

Special opinions of The Company carries out financial derivatives transactions mainly to avoid foreign exchange risks associated with RMB exchange rate fluctuations and effectively
independent directors on control the cost uncertainty caused by foreign exchange risks. The Company has formulated the Management System of Goertek Inc.'s Financial Derivatives Trading
the Company's Business, which is conducive to strengthen the management and control of the risks associated with financial derivatives transactions. The deliberation, approval,

derivatives investment voting and other procedures of this proposal are in line with the relevant provisions of Company Law, Articles of Association, and overall interests of the Company,
and risk control without damage to the legitimate rights and interests of minority shareholders. Therefore, the Company has been approved to carry out the business above.

2) Investments in derivatives for speculation during the reporting period

 Applicable  Not applicable

The Company did not make any investment in derivatives for speculation during the reporting period.

5. Use of raised funds
 Applicable  Not applicable

(1) Overall use of raised funds

 Applicable  Not applicable

Unit: RMB 10,000

The
Total amount
amount Proportion of
The total of raised Accumulated of Total raised
amount of Accumulated funds total amount accumulated amount of Purpose of the funds
Year of Means of Total fund raised funds amount of with of raised total amount raised raised funds that
raising raising raised used during raised funds changed funds with of raised funds that that have not have
the reporting that have purposes changed funds with have not been yet used been
period been used during purposes changed been yet idle for
the purposes used more
reporting than
period two
years

Supplementing

Public working

issuance of capital and

2020 convertible 398,903.00 130,147.65 337,203.58 0.00 0.00 0.00% 61,699.42 deposited in 0.00
corporate the special

bonds account for

raised funds

Total -- 398,903.00 130,147.65 337,203.58 0.00 0.00 0.00% 61,699.42 -- 0.00

Description of overall use of raised funds

The Company actually invested RMB 1,301.4765 million of raised fund in current period.As of December 31, 2022, the Company had used a total
of RMB 3,372.0358 million of raised funds, with RMB 616.9942 million unused (interest excluded), of which RMB 450 million was used to

temporarily supplement the working capital, and the remaining funds was deposited in the special account for raised funds of the Company.

(2) Projects in which the raised funds were proposed to be invested

 Applicable  Not applicable

Unit: RMB 10,000

Whether The date Whether
Committed the Accumulated Investment on which Whether there is
investment project Total Total Amount investment progress at the Benefits it any

projects and has been committed investment invested amount at the the end of project realized achieved significant
investment of changed investment after during the end of the the period reaches during the the change in
over-raised (including of raised adjustment reporting reporting (3)＝ its reporting expected the

funds partial funds (1) period period (2) (2)/(1) intended period benefits feasibility
changes) usage of the
state project

Committed investment projects
The project of

binaural true No 218,903.00 218,903.00 55,521.72 220,141.92 100.57% August 2,685.01 No No

wireless smart 31, 2022

earphones
AR/VR and

related optical August

module project No 60,000.00 60,000.00 30,205.61 60,581.38 100.97% 31, 2022 42,339.54 Yes No

-AR/VR
project

AR/VR and

related optical June 30,

module project No 40,000.00 40,000.00 30,589.63 33,758.03 84.40% 2023 4,468.07 Yes No

- optical
module project

Qingdao R&D No 80,000.00 80,000.00 13,830.69 22,722.25 28.40% December Not Not No

center project 31, 2023 applicable applicable

Sub-total of

committed -- 398,903.00 398,903.00 130,147.65 337,203.58 -- -- 49,492.62 -- --

investment
projects

Direction of the investment with over raised funds

None

Total -- 398,903.00 398,903.00 130,147.65 337,203.58 -- -- 49,492.62 -- --

Explain the
reasons for
failure to
achieve the
planned
progress and

estimated ①Affected by changes in the market and customers’projects, the binaural true wireless smart earphones project did not achieve

profit by item the expected profit.

(including the ②Affected by the actual needs of the Company and project, Qingdao R&D Center project was behind schedule. The Company

reasons why may accelerate subsequent investment based on the actual needs, in an effort to achieve the maximum efficiency of the raised

"Not funds.

applicable" is
selected under
"Whether the
estimated
profit was
achieved")
Description of
significant

change in the Not applicable

feasibility of
the project
Amount, use of
over-raised

funds and Not applicable

progress of use
thereof

Applicable

Occurred in previous years

On August 20, 2020, the Company held the 8th meeting of the 5th Board of Directors and the 6th meeting of the 5th Board of

Change in Supervisors, which reviewed and approved the Proposal on Changing the Implementation Subject and Implementation Location of
location of the Some Investment Projects with Raised Capital and Increasing the Capital of Wholly-owned Subsidiaries, and agreed to change: the
project implementation subject ofAR/VR and related optical module projects from Goertek Inc. to the Company’s subsidiaries Weifang
invested with Goertek and Goertek Optical; The implementation location was changed accordingly from Goertek Photoelectric Park in Weifang
raised funds High-tech Zone to Weifang Goertek Plant, east of Gaoxin No. 2 Road, south of Yuqing East Street in Weifang comprehensive free
trade zone and Goertek Optical Plant, phase III of Goertek Photoelectric Park in Weifang High-tech Zone; The Company increased
the capital to Weifang Goertek with the raised funds of RMB 600 million and increased the capital to Goertek Optical with the

raised funds of RMB 400 million, for the purpose of specific implementation of above-mentioned investment projects.

Adjustment on
how to invest

the projects Not applicable

with raised
funds


Upfront Applicable

investment of

the project with On July 9, 2020, the Company held the 7th meeting of the 5th Board of Directors and the 5th meeting of the 5th Board of

raised funds Supervisors, which reviewed and approved the Proposal on Replacing the Self-raised Funds Invested in the Projects in Advance

and with the Raised Funds, and agreed to use the raised funds to replace the self-raised funds of RMB 315.7238 million invested in the
replacement investment projects in advance. The fund replacement above has been verified by Zhongxi Certified PublicAccountants (special
thereof general partnership) Co., Ltd., and an authentication report has been issued.

Applicable

① On July 9, 2020, the Company held the 7th meeting of the 5th Board of Directors and the 5th meeting of the 5th Board of

Supervisors, which reviewed and approved the Proposal on Temporary Replenishment of Working Capital with Idle Raised Funds.
It was agreed that the Company shall use the idle raised funds not exceeding RMB 2.5 billion to temporarily supplement working
capital. The validity period shall not exceed 12 months from the date of approval by the Board of Directors.After expiration, it

shall be returned to the special account for raised funds in a timely manner. The Company returned RMB 0.8 billion and RMB 1.7
billion of the raised funds to the special account for raised funds in advance on September 17, 2020 and November 4, 2020

respectively.

② On November 5, 2020, the Company held the 11th meeting of the 5th Board of Directors and the 9th meeting of the 5th Board
of Supervisors, which reviewed and approved the Proposal on Temporary Replenishment of Working Capital with Partial Idle

Raised Funds. It was agreed that the Company temporarily supplements the working capital with idle raised funds of no more than
Temporary RMB 2.5 billion. The validity period shall not exceed 12 months from the date of approval by the Board of Directors.After

replenishment expiration, it shall be returned to the Company's special account for raised funds in a timely manner. The Company returned RMB
of working 0.5 billion and RMB 2 billion of the raised funds to the special account for raised funds on October 29, 2021 and November 3,

capital with 2021 respectively.

idle raised ③ On November 8, 2021, the Company held the 24th meeting of the 5th Board of Directors and the 19th meeting of the 5th Board
funds of Supervisors, which reviewed and approved the Proposal on Temporary Replenishment of Working Capital with Partial Idle

Raised Funds. It was agreed that the Company temporarily supplements the working capital with idle raised funds of no more than
RMB 1.2 billion. The validity period shall not exceed 12 months from the date of approval by the Board of Directors.After

expiration, it shall be returned to the Company's special account for raised funds in a timely manner. The Company returned the

above-mentioned RMB 300 million, RMB 100 million and RMB 100 million of the raised funds to the special account for raised
funds on February 24, 2022, May 16, 2022, and August 29, 2022 respectively. The Company returned the remaining RMB 700

million of the raised funds to the special account for raised funds on November 4, 2022.

④ On November 21, 2022, the Company held the 1st meeting of the 6th Board of Directors and the 1st meeting of the 6th Board
of Supervisors, which reviewed and approved the Proposal on Temporary Replenishment of Working Capital with Partial Idle

Raised Funds. It was agreed that the Company temporarily supplements the working capital with idle raised funds of RMB 450

million. The validity period of which shall not exceed 12 months from the date of approval by the Board of Directors.After

expiration, it shall be returned to the special account for raised funds in a timely manner.

Amount and
reasons for the
balance of

raised funds in Not applicable

the
implementation
of the project
Purpose of the

raised funds The unused raised funds shall be deposited in the special account for raised funds.

that have not
been yet used
Problems or
other situations

in the use and None

disclosure of
raised funds

(3) Changes in the projects in which the raised funds were proposed to be invested

 Applicable  Not applicable

There was no change in the projects in which the raised funds were proposed to be invested during the reporting period.


Ⅷ. Sales of major assets and equities

1. Sales of major assets
 Applicable  Not applicable

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

2. Sales of major equity
 Applicable  Not applicable

Ⅸ.Analysis of major subsidiaries and associates

 Applicable  Not applicable

Major subsidiaries and associates with an impact of more than 10% on the Company's net profit

Unit: RMB

Name of company Type of Main business Registered Total assets Net asset Operating revenue Operating profit Net profit

company capital

Goertek Electronic

Technology Vina Subsidiary component 796,907,040.00 12,409,733,040.39 4,107,738,419.61 18,006,535,442.52 1,410,777,715.29 1,409,023,464.60
Company Limited manufacturing

Weifang Goertek Electronic

Electronics Co., Subsidiary component 1,405,601,925.00 17,913,095,353.28 4,352,685,419.96 42,724,868,464.90 419,812,739.34 421,807,998.29
Ltd. manufacturing

Goertek Electronic

(HongKong) Subsidiary component 1,542,045.00 24,132,254,761.29 1,519,208,415.75 64,224,417,880.80 414,865,735.06 402,793,144.67
Co.,Limited manufacturing

Yili Precision Electronic

Manufacturing Subsidiary component 330,000,000.00 3,693,141,919.10 861,868,622.80 2,623,240,930.28 389,987,170.03 343,924,705.39
Co., Ltd. manufacturing

Weifang Goertek Electronic

Microelectronics Subsidiary component 500,000,000.00 2,513,660,559.63 1,749,075,557.18 2,541,277,266.22 282,115,675.05 252,636,135.90
Co., Ltd. manufacturing

Acquisition and disposal of subsidiaries during the reporting period

 Applicable  Not applicable

Name of company Approach on acquisition and disposal of Impact on overall production,

subsidiaries during the reporting period operation and performance

Goertek Optical Technology (Qingdao) Co., Ltd Newly established No significant impact

Goertek Optical Technology (Shanghai) Co., Ltd Newly established No significant impact

Qingdao Resonance Venture Capital Management Newly established No significant impact

Co., Ltd.

Qingdao Resonance Phase I Venture Capital Fund Newly established No significant impact

Partnership (Limited Partnership)

Weifang Goertek Electronics Co., Ltd. Newly established No significant impact

Qingdao Goertek Horizons Technology Co., Ltd Newly established No significant impact

Weifang High-tech Zone Goertek Education Center Newly established No significant impact

Goertek Microelectronics Vietnam Company Newly established No significant impact

Limited

Shenzhen Mototek Smart Technology Co., Ltd. Sales of equities No significant impact

Qingdao Resonance Venture Capital Management Sales of equities No significant impact

Co., Ltd.

Description of major subsidiaries and associates

None


Ⅹ. Structural Entities Controlled by the Company

 Applicable  Not applicable

XI. Outlook for the Future Development of the Company

1. Industry trend and competition

In the mobile era, smartphones and related products have been the main focus of innovation and the growth drivers of the global
technologyand consumer electronicsindustryover years. Accordingto theforecast of IDC, a well-known consultingagency, theglobal
smartphone shipment in 2023 will reach about 1.19 billion units, with an approximately 1.1% YoY decline. The global smartphone
shipment is expected to grow at an CAGR of only about 2.6% between 2023 and 2027. The slow-down of the growth reflects the trend
that the global technology and consumer electronics industry is stepping into the post-mobile era.

In the post-mobile era, with the development of new technologies such as semiconductor, 5G, micro-display, sensor, intelligent
interaction, battery, cloud and edge computing, more and more next-generation smart hardware products with greatly improved
functions and diversified applications are emerging. In particular, new breakthroughs in the fields of AI, natural language processing
and content generation technology are expected to further promote the development and application of those smart hardware products.
According to the forecast of IDC, the global shipment of VR/AR products is expected to reach 10.1 million units in 2023, with
approximately a 14% YoY increase. The CAGR of global VR shipment from 2023 to 2026 is expected to be around 32%. The steady
growth of VR end user, the upgrade of VR hardware and the development and maturity of VR content and applications such as social
networking, games, entertainment and live broadcasting, will help the VR industry to grow continuously in the next few years.

Accordingto theforecast of IDC, theglobal shipment ofAR products is expected to reach 0.3 millionunitsin 2023, with approximately
an 11% YoY increase. The CAGR of global AR shipment from 2023 to 2026 is expected to be around 137%. With the abilities to
combine virtual world over reality and to seamless connect to the mobile Internet ecosystem, AR product shows unlimited future
possibilities and great market potential, and is expected to become one of the core smart hardware products in the post-mobile era.
Technological breakthroughs in semiconductor chips, optical waveguide, micro displays and other fields are also expected to promote
the development and maturity of AR products in the next few years.

According to the forecast of IDC, the global shipment of smart watches is expected to reach 162 million units in 2023, with
approximately a 9.1% YoY increase. The CAGR of global shipment of smart watches from 2023 to 2027 is expected to be around
6.1%. The global market of smart wearable products is growing steadily but also incubate the opportunity of an explosive growth. In
the post-mobile era, consumers pay greater attention to fitness and health. For millions of people around the globe those who has
hypertension, diabetes and sub-health issues, high precision and reliable health monitoring technologies, especially precise blood
pressure monitoring and non-invasive blood sugar monitoring technologies, are currently the focus of innovation of the industry.
Breakthroughs in the above technologies are expected to bring dramatic growth to smart wearable products before long.

According to the forecast of FutureSource, the global shipment of TWS smart earphones is expected to reach about 366 million units
in 2023, with approximatelya 7.6%YoYincrease. With thecombination ofAI, natural languageprocessingand smart voiceinteraction
technologies, the user experience of TWS smart earphones is expected to continuously improve, and its penetration is expected to
continuously increase as well.

The further development of next-generation smart hardware products will also boost the demand for related precision components such
as precision optics and modules, precision acoustic components, MEMS sensors and microsystem modules, haptic components and
precision structural parts, which will also create new business opportunities for the Company.

In terms of the competitive landscape, the global technology and consumer electronics industry may continue to demonstrate a
centralized trend. In the post-mobile era, massive investment in technological innovation and R&D is required for the development of
smart hardware products, for which the "soft power" of the ecosystem, such as developer base, user base, software applications,
entertainment content, community loyalty and data monetization, becomes more and more important. The leading companies with
capital, talent, technology and ecosystem advantages are expected to strengthen their competitive advantages, so as to lead technology
and product innovation in the industry.

Intermsofthesupplychain,theelectronicmanufacturersinChinaarestrengtheningtheiroverallcompetitiveness.Thesemanufacturers
are expected to better meet the needs of electronic product manufacturing in the post-mobile era and gain new opportunities of
development. However, it should also be noted that the changes in international political and economic landscapes, especially the
relationship between major countries, may have a significant impact to pattern of the industrial supply chain. To which, manufacturers
need to pay more attention and respond carefully and scientifically.

2. Strategy for future development


Looking into the future, the Company will actively respond to the innovation-driven development strategy, promote the upgrade of
industrial structure, strengthen technological innovation, and accelerate the development of a modern industrial system. It will grasp
the opportunities of transformation from the mobile era to the post-mobile era by closely following the development of 5G, AI, IoT,
cloud computing and other advanced technologies. The Company will continue to strengthen its development in the field of next-
generation smart hardware products and related precision components, constantly consolidate the strategical cooperation with world-
class customers, and fulfill the economic and social responsibilities of the enterprises, thus to achieve stable and healthy growth of the
Company’s value in return for shareholders.

(1) Actively grasp the new opportunities in the post-mobile era, and further promote the Company's strategy of "precision components
+ smart hardware". Continue to strengthen the competitiveness of precision components and smart hardware products, and actively
develop the business related to next-generation smart hardware products. Utilize the synergy between the Company's component
businessandsystemdevicebusiness, continuetostrengthenthecorecapabilitiesinprecisionand intelligent manufacturing, andprovide
customers with the first-class vertically integrated product solutions and "one-stop" R&D and manufacturing services.

(2) Continue the key-account strategy, remain customer-oriented, maintain good relationships with core customers, and utilize the
Company's advantages in customer resource. Focus on serving leading customers in the global technology and consumer electronics
industry, and continue to consolidate long-term strategic cooperation with customers. Closely follow the strategical planning and
development of world-class customers, and to create a global system of R&D, manufacturing and sales services accordingly. Continue
to satisfy our customers with our business, technology, engineering, operation and delivery services, in order to achieve win-win
cooperation and to grow with the world-class customers.

(3) Adhere to technological innovation and continue to invest in R&D. Constantly improve the Company's technical competitiveness
in acoustics, optics, microelectronics, precision manufacturing, automation, IT technology, software algorithm, etc., to build the core
technical competitiveness for future development of the enterprise. Firmly implement the talent strategy by recruiting outstanding
personnel in management and technology fields around the world, build and effectively motivate a first-class talent team, thus to
provide sufficient talents for future development of the Company.

(4) Constantly improve corporate governance and management, and promote the standardized and efficient internal operation.
Continuously improve the internal structure, processes and internal management system. Strengthen the awareness of lean operation,
improve the level of lean operation and seek benefits from it. Being market-oriented and customer-oriented, continues to push forward
internal reformand innovation, and to build core competitiveness upon continuous reformand innovation activities. Create an excellent
corporate culture, undertake the core values of "customer orientation, personnel growth, integrity and pragmatism, win-win
cooperation", and earnestly fulfill the economic and social responsibilities of the enterprise, to become a respected world-class
enterprise.

3. Business operation during the reporting period and business plan for next year

In 2022, the Company carried the "precision components + smart hardware" strategy, remained customer-oriented and focused on key
accounts. By leveraging the synergy between the components business and system device business, the Company grasped business
opportunities in next-generation smart hardware such as VR, gaming consoles and accessories, and gained continuous revenue growth.
While consolidating the advantages in conventional business, the Company also explored new opportunities in both consumer
electronics and automotive electronics fields, and obtained progresses in precision optical components and modules, car sensors,
microsystem modules and etc. The Company continued to invest in R&D and technological innovation, completed more patent
applications and gained more patent approvals, strengthened the capabilities of R&D and talent team, and further strengthened the core
competitiveness of the Company.

Looking into the year of 2023, the Company still faces many challenges due to downward pressure of global economy and the
complexities in the external environment. However, there are new business opportunities in the global technology and consumer
electronics industry. The next-generation smart hardware products are more and more adopted in many fields. The hardware and
software ecosystems are constantly being improved. The Company's main business still have the potential of continuous growth and
the internal operation could also be further improved. The management and the staff of the Company will continue to implement our
strategy and to achieve business objectives, so as to return the shareholders and investors with good business performance and
continuous growth of the value of the Company.

(1) Maintain strategic focus and grasp development opportunities

The Company will seize the business opportunities of smart hardware products in the post-mobile era by adhering to the "precision
components + smart hardware" strategy and utilize the synergy between the components and system device business. The Company
will further expand the business of smart hardware products by virtue of its core technological capabilities and advanced product
solutions in the field of precision components. And through that business development, the Company will create more applications and

demand for the precision components. By integrating the core capabilities in precision manufacturing and intelligent manufacturing,
the Company will be able to provide first-class "one-stop" R&D and manufacturing services to global customers.

(2) Adhere to the customer-orientation philosophy and key-accounts strategy, identify and serve strategic customers

Follow the strategy and business plan of core customers, the Company will carry out corresponding business, products and capacity
plans, work with the customer in their frameworks and schedules and provide industry-leading R&D and manufacturing services. The
Company will continuously build excellent customer service team to satisfy our customers in long term in all aspects of business,
technology, engineering, operation, and delivery, to enhance customer loyalty and satisfaction, and achieve win-win cooperation with
customers.

(3) Empower business expansion and create new opportunities

Based on the consolidation of the existing business advantages in precision components and smart hardware products, the Company
will further explore new directions and opportunities. By grasping the opportunities in precision optical components and modules,
sensors, microsystem modules, VR, AR, and other products, the Company will secure the key projects to obtain core customers, and
follow up with new opportunities in automotive electronics, micro-display and other fields as well.

(4) Improve lean operation and complete successful delivery of key projects

The Company will constantly promote the idea of lean operation, learn from the project experience in 2022, to improve the level of
operation and to support the business objectives with high-quality and efficient operation. The Company will make thorough planning
of its resources, ensure the delivery of key projects that closely related to the strategy and the business objectives, and to achieve the
goals of the Company.

(5) Continue to invest in independent R&D and technological innovation, strengthen core competitiveness with talent strategy

The Company will continue to invest in R&D and technological innovations centered on future strategic directions, and strengthen the
technical capabilities in the fields of acoustics, optics, microelectronics, precision and intelligent manufacturing. The Company will
embrace the management and technical talents globally, keep bringing in high-level talents, carry out solid efforts in the selection,
cultivation, motivation and retention of talents, and to support the Company's strategic implementation and business development with
high-quality talent echelon.

(6) Effectively control risks and maintain healthy operation

The Company will continue to maintain a sound business strategy, strengthen risk awareness, pay close attention to changes in the
external environment, performeffectivecontrol on riskindicatorsinproduction operation oftheCompany, taketheinitiativeto identify
and resolve potential risks, and ensure sustainable development of production and operation activities.

4. The demand and planning of fund

The Company maintains a healthy asset and liability structure, and obtained a good long-term cooperative relationship with banks and
other major financial institutions. In 2023, the Company will continue to improve the management of cash, optimize payment terms,
control capital expenditureand enhance theefficiencyof fund. The Companywill carefullyevaluate variousfinancingtools to optimize
the asset-liability ratio and debt structure. The Company will also carefully manage financial derivatives trading activities with strict
standards, to actively avoid liquidity risks and foreign exchange risks. And with all the measures above, to thus provide stable and
sufficient financial support to the development of the Company.

5. Future risks
(1) Macroeconomic risks

Global economy has yet to recover. Inflation remains high in major European and American countries. Unfavorable factors that
affecting investment and consumption still exist, which mayhinder the development ofthe global technologyand consumer electronics
industry in the short term. The world political and economic situation remains complex and grim. Trade disputes between major
countries and geopolitical events have brought uncertainties to global economy, which may adversely affect the business of the
Company. Some intelligent hardware products, such as smartphones, have slowed down or stagnated in growth rate, and some next-
generation smart hardware products may develop slower than expected. This may impact the global market demand as well as the
Company's business performance.
(2) Operational risks

① Risks of relatively concentrated customers

The competitive pattern of global technology and consumer electronics industry, along with the Company's business model and key
account strategy, determined a relatively concentrated customer structure. As a result, the business income from a few core customers
accounts for a large proportion of the Company's overall revenue. Although the above customers are global industry leaders who have
significant competitive advantages and market position, and have maintained long-term and stable cooperative relations with the

Company, undersomespecial circumstances, theymaybringfluctuationsand riskstotheCompany'sbusinessiftheirbusiness activities
fluctuate.

② Risks of exchange rate fluctuation

The export business accounts for a high proportion of the Company's overall revenue. At the same time, the Company also imports a
considerable number of raw materials, equipment and other products from overseas. These import and export businesses are primarily
settled in US dollars. Although the Company has adopted appropriate risk hedging tools, the significant fluctuation of RMB/US dollar
exchange rate may still bring certain exchange rate risks to the Company.

③ Risks of loss of core technical talents

The technology and consumer electronics industry is a talent intensive industry. Therefore, the demand for core technical talents is
strong, and the competition for talents is very fierce. Core technical talents are the key resources for the Company to continuously
improve its core competitiveness and realize long-term development. For this reason, the Company will continue to improve various
incentive and restraint mechanisms in order to retain core technical talents. Under fierce competition, there may still be the loss of core
technical talents, which may put the Company at a disadvantage in the competition and affect the business development in some cases.
(3) Risks of management

In recent years, the Company has successfully expanded its business in each product line. The business scale has been expanded
significantly, as well as the variety of products and the size of the staff has grown rapidly. The growing business brings higher
requirements to the Company in overall operation and management ability. The Company implements the strategic plan of developing
corecustomerbusinessand exploringnewopportunities, which alsorequirestheCompany's management to maintain excellent abilities
of judgment, execution and management. If the Company's management fails to match the business growth, or fails to be improved to
meet the needs ofthe Company's development, it may affect the execution ofstrategic planning and the deliveryof business objectives,
thus bringing management risks to the Company.

Ⅻ. Reception, research, communication, interview and other activities during the reporting
period
 Applicable  Not applicable

Reception Type of Type of Main content of Index of related
Reception time place communication attendees List of attendees discussion and information

information provided

Investors participated The record of

in the Company's The Company's overall investor relations
April 8, 2022 The Other Other performance operation and business activities

Company presentation meeting development published on

of 2021 www.cnifo.com.cn
on April 8, 2022

The record of

HuaAn Fund, The Company's overall investor relations
April 27, 2022 The Conference Institutional BlackRock Assets, operation and business activities

Company Call Investors Yinhua Fund, etc. development published on

www.cnifo.com.cn
on April 27, 2022

The record of

investor relations
The Conference Institutional Macquarie, Huaxin The Company's overall activities

August 30, 2022 Company Call Investors Securities, Huatai operation and business published on

Securities, etc. development www.cnifo.com.cn
on August 30,

2022


The record of

investor relations
September 28, The Conference Institutional Allianz Global The Company's overall activities

2022 Company Call Investors Investors, CPPIB, operation and business published on

Manulife, etc. development www.cnifo.com.cn
on September 28,
2022

Investors participated The record of

in the 2022 Online investor relations
November 16, The Collective Reception The Company's overall activities

2022 Company Other Other Day for Investors of operation and business published on

Listed Companies in development www.cnifo.com.cn
Shandong Province on November 16,
2022


Section IV Corporate Governance

Ⅰ. Corporate Governance in Practice

During the reporting period, the Company continuously improved the corporate governance structure, the internal management and
control system, and continued to carry out corporate governance activities in strict accordance with the requirements of relevant laws,
regulations and normative documents such as Company Law, Securities Law, Corporate Governance of Listed Companies, Rules
Governing the Listing of Shares on Shenzhen Stock Exchange as well as with relevant documents of China Securities Regulatory
Commission and the relevant instructions of Shandong Securities Regulatory Bureau, so as to further standardize the Company's
operation and improve the level of corporate governance.

By the end of the reporting period, the actual practice of corporate governance met the relevant requirements of the above laws,
administrative regulations, departmental rules and normative documents on the governance of listed companies, and no documents
concerning administrative supervision measures taken by the supervised departments was received.

By the end of the reporting period, the details of actual practice of corporate governance are as follows:

1. Shareholders and shareholders' meetings: The Company has convened and held shareholders' meetings in strict accordance with the
Rules for General Meeting of Shareholders of Listed Companies and the Company’s Rules of Procedure of Shareholders' Meetings, so
asto ensurethatall shareholders, especiallyminorityshareholders, enjoyequalstatusandfullyexercisetheirrights;In addition,lawyers
were engaged to witness the legitimacy of the convening, holding and voting procedures of each general meeting of shareholders.

2. The Company and controlling shareholders: The Company, with independent business and operation autonomy, is independent of
the controlling shareholders in business, personnel, assets, organizations and finance. The Board of Directors, Board of Supervisors
and internalinstitutionsoftheCompanyoperateindependently. Thecontrollingshareholdersexercisetheir rightsthroughshareholders’
meeting, and there was no direct or indirect interference with the Company’s operations and decision-making beyond the general
meeting of shareholders.

3. Directors and the Board of Directors: The Company elects directors in strict accordance with the selection and appointment
procedures stipulated in the Articles of Association. There are three independent directors in the Board, the number of directors and
the composition of the Board of Directors meet the requirements of laws and regulations and the Articles of Association. All directors
may carry out their work in accordance with Rules of Procedure of the Board of Directors and Working System for Independent
Directors, they attended all the Board of Directors meetings, and all the related trainings as required.

4. Supervisors and the Board of Supervisors: The election of supervisors and the composition of the Board of Supervisors were in strict
accordance with relevant provisions of Company Law and Articles of Association. The Company's supervisors strictly followed the
Rules of Procedure of the Board of Supervisors. All supervisors scrupulously attended the sessions, seriously fulfilled their duties
diligently, and supervised and issued opinions for major issues, related-party transactions, and financial status.

5. Performance appraisals and incentives: The Company has gradually improved its fair and transparent performance evaluation
standardsand incentivearestraint mechanismfor directors, supervisorsand senior management. The appointment ofCompany’s senior
management is open and transparent, and in line with the provisions of laws and regulations.

6. Stakeholders: The Company fully respects and safeguards the legitimate rights and interests of stakeholders, actively communicates
and coordinates with stakeholders, to balance the interests of the society, shareholders, the Company, employees and other parties, and
jointly promotes the Company's development in a sustainable and steady manner.

7. Information disclosure and transparency: The Company duly performed the disclosure obligations in accordance with the provisions
of Rules Governing the Listing of Shares on Shenzhen Stock Exchange, Articles of Association and Investor Relations Management
Rules, and discloses information as per the law, so as to ensure that the information disclosure is true, timely, accurate and complete.
All shareholders were given equal access to the information. The Companyhas graduallyrevised and improved the Insider Information
Management Rules, further improved the insider information management, strengthened the confidentiality of insider information,
maintained the fair principle of information disclosure and protected the legitimate rights and interests of investors. The Company has
appointed the secretary of the Board of Directors as the head of investor relations management of the Company, responsible for the
Company'sinformation disclosureand investor relationsmanagement. TheCompanyhasdesignated SecuritiesTimes, ChinaSecurities
Journal, Shanghai Securities News, Securities Daily and cninfo.com.cn to disclose Company’s information in a faithful, accurate and
timely manner, strictly in accordance with relevant laws and regulations, Rules on Information Disclosure and Rules on Internal
Reporting of Material Information, so that all shareholders have a fair chance to get information.

Whether there is any significant difference between actual situation of corporate governance and laws, administrative regulations and
the provisions on governance of listed companies issued by CSRC

 Yes  No

There is no significant difference between the actual situation of corporate governance and the laws, administrative regulations and
the provisions on governance of listed companies issued by CSRC

Ⅱ. Particulars about the independence of the Company from controlling shareholder and

actual controller in terms of the assets, personnel, finance, organization and business

The Company is completely separated from the controlling shareholders in terms of business, personnel, assets, organization and
finance. The ownership of the assets is clear and belongs to the Company. The Company has the capability of self-operation in its
marketing, production and procurement etc., does not depend on major shareholders or their affiliated enterprises, there is no mixed
operation with major shareholders.

1. Business independence: The Company had its own production, procurement and sales system, and was completely independent of
controlling shareholder in terms of business.

2. Personnel separation: There is a department responsible for the Company's labor, personnel and salary management in the Company,
and rules and regulations has been established for appraisal of employees’ performance. Personnel of the Company were independent
fromthecontrollingshareholder.TheSenior Management oftheCompanydid not hold anypositionsother than director and supervisor
in the related shareholders and other entities with same or similar business.

3. Institutional independence: The Board of Directors, Board of Supervisors, Senior Management and other internal organization of
the Company operated independently, and each functional department is completely independent from controlling shareholder in terms
ofauthority,personnel,productionoperationpremises,etc.,and thereisnosubordinaterelationshipbetweenthecontrollingshareholderand its functional departments.

4. Asset independence: The title relationship between the Company and the controlling shareholder was clear. The Company’s assets
were complete. The Company has independent and complete production system, auxiliary production system and supporting facilities,
as well as land use right, industrial property right, patented technology and other assets.

5.Financialindependence:TheCompanyhasitsownseparatefinancialdepartmentandanindependentaccountingsystemandfinancial
management system from the controlling shareholder. The Company makes financial decisions on its own according to the
requirementsofrelevant accountingsystemsof listed companies. At thesametime, implement vertical management on financialaffairs
of its subsidiaries. The Company opened accounts in the bank independently, made tax declarations and performed tax obligatio ns
independent of shareholders according to law.

Ⅲ. Horizontal Competition
 Applicable  Not applicable

Ⅳ.Annual General Meeting and Extraordinary General Meeting held during the Reporting
Period

1. General meeting of shareholders during the reporting period

Percentage of

Session Type of meeting investor Convening date Disclosure date Meeting resolution

participation

For details, refer to the

Announcement of Resolutions
of the 2021Annual General

General meeting of Annual general Meeting published by

shareholders of 2021 meeting of 41.71% May 12, 2022 May 13, 2022 Securities Times, China

shareholders Securities Journal, Shanghai

Securities News, Securities

Daily and CNINFO

(http://www.cninfo.com.cn)

The first Extraordinary 39.83% July 26, 2022 July 27, 2022 For details, refer to the

extraordinary general general meeting Announcement of the


Percentage of

Session Type of meeting investor Convening date Disclosure date Meeting resolution

participation

meeting of of shareholders Resolution of the 1st

shareholders in 2022 Extraordinary Shareholders'

Meeting in 2022 published by
Securities Times, China

Securities Journal, Shanghai

Securities News, Securities

Daily and CNINFO

(http://www.cninfo.com.cn)

For details, refer to the

Announcement of the

Resolution of the 2nd

The second Extraordinary Extraordinary Shareholders'

extraordinary general general meeting 35.66% November 15, November 16, Meeting in 2022 published by
meeting of of shareholders 2022 2022 Securities Times, China

shareholders in 2022 Securities Journal, Shanghai

Securities News, Securities

Daily and CNINFO

(http://www.cninfo.com.cn)

For details, refer to the

Announcement of the

Resolution of the 3rd

The 3rd Extraordinary Extraordinary Shareholders'

Extraordinary general meeting 30.84% December 19, December 20, Meeting in 2022 published by
Shareholders' of shareholders 2022 2022 Securities Times, China

Meeting in 2022 Securities Journal, Shanghai

Securities News, Securities

Daily and CNINFO

(http://www.cninfo.com.cn)

2. Extraordinary general meeting of shareholders requested by the Preference shareholders with voting
rights restored
 Applicable  Not applicable

V. Directors, Supervisors and Senior Management

1. Basic Information

Number of Number Number Other

shares held of shares of shares increase Number of Reason
Name Position Appointment Gender Age Term start Term end at the increased decreased or shares held for
status date date beginning of during during the decrease at the end of change
the period the period changes the period in shares
period

Jiang Bin Chairman Incumbent Male 57 July 27, November 287,397,406 287,397,406

2007 14, 2025

Jiang Long Vice Incumbent Male 49 July 27, April 6, 250,345,197 250,345,197

Chairman (resigned as 2007 2023


Vice

Chairman October April 6,

President and President 30, 2014 2023

onApril 6,

2023)

Director February November

Duan 4, 2016 14, 2025

Huilu Incumbent Male 47 3,474,500 3,474,500

Vice March 25, November

President 2011 14, 2025

Incumbent

(Serving as

Vice President of June 2, April 7,

President the Company 2021 2023

Li Youbo sinceApril 7, Male 46

2023)

Director Incumbent November November

15, 2022 14, 2025

Wang Kun Independent Incumbent Female 47 November November

Director 8, 2019 14, 2025

Huang Independent Incumbent Female 58 November November

Yidong Director 15, 2022 14, 2025

Jiang Independent Incumbent Male 54 November November

Fuxiu Director 15, 2022 14, 2025

Feng Chairman of November November

Pengbo Board of Incumbent Male 55 15, 2022 14, 2025

Supervisors

Xu Employee September November

Xiaofeng representative Incumbent Female 46 17, 2013 14, 2025

Supervisor

Wei Employee April 27, November

Wenbin representative Incumbent Male 45 2021 14, 2025

Supervisor

Gao Vice Incumbent Male 47 April 12, November

Xiaoguang President 2012 14, 2025

Liu Chunfa Vice Incumbent Male 47 October November 864,000 864,000

President 10, 2013 14, 2025

Jiang Vice Incumbent Male 53 October November

Hongzhai President 10, 2013 14, 2025

Yu Dachao Vice Incumbent Male 45 October November

President 24, 2016 14, 2025

Vice

Jia Jun'an President, Incumbent Male 52 October November 200,000 600,000 800,000 Increase
Secretary of 10, 2013 14, 2025 holdings
the Board

Chief January November

Li Yongzhi Financial Incumbent Male 45 27, 2021 14, 2025

Officer

Liu Director Resigned Male 52 November November

Chengmin 29, 2016 15, 2022

Xia Independent Resigned Female 65 October November

Shanhong Director 20, 2016 15, 2022

Wang Independent Resigned Male 63 October November

Tianmiao Director 20, 2016 15, 2022

Sun Chairman of September November

Hongbin Board of Resigned Male 57 17, 2013 15, 2022 7,089,534 7,089,534

Supervisors


Incumbent

Kazuyoshi Vice (resigned on Male 56 October March 7,

Yoshinaga President March 7, 24, 2016 2023

2023)

Zhu Vice Resigned Male 49 June 2, November

Shengbo President 2021 15, 2022

Total -- -- -- -- -- -- 549,370,637 600,000 0 549,970,637 --

Whether there is any resignation of directors, supervisors and senior management during the reporting period

 Yes  No

Changes in directors, supervisors and senior management

 Applicable  Not applicable

Name Position Type Date Reason

Leave office

Liu Chengmin Director upon expiration November 15, 2022 Leave office upon expiration of term

of term

Independent Leave office

Xia Shanhong Director upon expiration November 15, 2022 Leave office upon expiration of term

of term

Independent Leave office

Wang Tianmiao Director upon expiration November 15, 2022 Leave office upon expiration of term

of term

Chairman of Board Leave office

Sun Hongbin of Supervisors upon expiration November 15, 2022 Leave office upon expiration of term

of term

Leave office

Zhu Shengbo Vice President upon expiration November 15, 2022 Leave office upon expiration of term

of term

Huang Yidong Independent Elected November 15, 2022 Elected as an independent director of the
Director 6th Board of Directors of the Company

Jiang Fuxiu Independent Elected November 15, 2022 Elected as an independent director of the
Director 6th Board of Directors of the Company

Feng Pengbo Chairman of Board Elected November 15, 2022 Elected as Chairman of the 6th Board of
of Supervisors Supervisors

2. Biographical Information

Professional backgrounds, main working experience and current duties of the Directors, Supervisors and the Senior Management

(1) Members of the Board of Directors of the Company:

Jiangbin, male, a Chinese citizen with no foreign residency right, who was born on September 1966, holding a master's degree in
business administration from Tsinghua University and bachelor's degree in electronic engineering from Beihang University. Mr. Jiang,
Chairman of the company, founded Goertek Inc. in 2001. He has more than 30 years of working experience in the electro-acoustic
industry. He also serves as standing member of the 12th executive committee of the All-China Federation of Industry and Commerce,
rotating chairman of China Electronic Components Association, and vice chairman of Industry of Virtual Reality Alliance. He has won
the titles of National Model Worker, Shandong Province Model Worker, National Leading Entrepreneur in Electronic Information
Industry, Leading Entrepreneur in Shandong Province, and Outstanding Talent in Qilu.

Jiang Long, male, a Chinese citizen with no foreign residency right, who was born in February 1974, Ph.D. in strategic management
from the University of Maryland, a master's degree holder in management science from Renmin University of China, and a bachelor's
degree holder in materials engineering from Tsinghua University. He served as the vice chairman and president of the Company as of
the end of the reporting period. Joined the Company in 2004, Mr. Jiang successively served as vice president, senior vice president and
executive vice president of the company. Mr. Jiang is also the Vice President of China Audio Industry Association and the chairman

of China Electronic Components Association-Electroacoustic Chapter. Mr. Jiang has extensive experience in marketing, sales and
business management. Mr. Jiang resigned as vice chairman, director and president of the Company on April 6, 2023.

Duan Huilu, male, a Chinese citizen with no foreign residency right, who was born in February 1976, with a bachelor's degree in
accounting from Shandong University of Finance and Economics. Mr. Duan, Director and Vice President of the company, He joined
the company in 2001 and successively served as the company's accountant, finance manager, finance department manager and chief
financial officer. Mr. Duan has more than 20 years of working experience in corporate finance.

Li Youbo, male, a Chinese citizen with no foreign residency right, who was born in December 1977, with a bachelor's degree in
automation from Dalian University of Technology. He served as the director and vice president of the Company as of the end of the
reporting period. He joined the company in 2003 and successively served as engineer, technical manager, head of the business
department, etc. Mr. Li has nearly 20 years of experience in R&D and manufacturing of electroacoustic components/devices. Li Youbo
has assumed the position of President of the Company since April 7, 2023.

Wang Kun, female, a Chinese citizen with no foreign residency right, who was born in April 1976, with a Ph.D. in accounting from
Hong Kong University of Science and Technology and a bachelor's degree in accounting from Nankai University. She is currently an
associate professor at the Department of Accounting, School of Economics and Management, Tsinghua University, deputy director
and senior researcher of the Research Center of Corporate Governance of Tsinghua University, and an independent director of the
Company and China International Futures Co., Ltd. Ms. Wang used to serve as lecturer and director of the doctoral program in the
Department of Accounting, School of Economics and Management, Tsinghua University, and independent director of Beijing
Thunisoft Co., Ltd., Integrated Electronic Systems Lab Co., Ltd., etc. She has won the Excellence in Teaching Award of the School of
Economics and Management of Tsinghua University for several times and has rich experience in finance and auditing.

Huang Yidong, female, a Chinese citizen with permanent residency in Japan, who was born in March 1965, with a Ph.D. in electronic
engineeringfromTsinghuaUniversity. Sheis currentlyaprofessor in theDepartment ofElectronicEngineeringofTsinghuaUniversity,
deputy director of the Academic Committee of Tsinghua University, and fellow of OSA. She is also the executive director of the
Optical Society of China, member of the Micro-nano Optics Professional Committee, vice chairman of the China Electronic Education
Society, vice president of the Higher Education Branch, deputy editor-in-chief of ACS Photonics magazine, and independent director
of the Company and Zhuhai Optical Library Technology Co., Ltd. She used to serve as distinguished researcher of NEC Institute of
Optical-Wireless Devices, deputy dean and head of the Department of Electronic Engineering of Tsinghua University, and dean of
Tianjin Institute of Electronic Information of Tsinghua University.

Jiang Fuxiu, male, a Chinese citizen with no foreign residency right, who was born in June 1969, served as a postdoctoral fellow in
accounting at Guanghua School of Management, Peking University, and has a Ph.D. in economics from Nanjing University. He is a
professor and doctoral supervisor in the Department of Finance, Business School, Renmin University of China. He also serves as an
independent director of the Company and Beijing Chunju Technology Co., Ltd. He used to serve as an independent director of Beixun
Group Co., Ltd., Yantai Longyuan Power Technology Co., Ltd., Beijing Zhongxin International Travel Co., Ltd., Datang International
Power Generation Co., Ltd., etc.

(2) Members of the Supervisory Board of the Company

Feng Pengbo, male, a Chinese citizen with no foreign residency right, was born in July 1968. He has a bachelor's degree in mechanical
manufacturing technology and equipment from Xi'an University of Technology and the professional title of Senior Engineer, and won
thehonorofModelWorker inShandongProvince. Heisthechairman ofthe SupervisoryBoard. Mr. Fengis an expert in theautomation
and has rich experience in automation equipment R&D and manufacturing.

Xu Xiaofeng, female, is a Chinese citizen with no foreign residency right, who was born in October 1977, has a bachelor's degree in
electrical technology from Zhengzhou Institute of Aeronautical Industry Management majoring and a bachelor's degree in business
administration from China University of Petroleum. He is currently a supervisor of the Company and the person in charge of the work
of the Party and masses. Ms. Xu joined the company in 2001, and successively served as the assistant manager of the quality control
department, the enterprise development department and the operation department, and the head of the Company's employee service
center. Ms. Xu has rich experience in business management.

Wei Wenbin, male, a Chinese citizen with no foreign residency right, who was born in July 1978, has a bachelor's degree in material
shaping and control engineering from Jilin University. He is currently a supervisor and head of the employee management department
of the Company. Mr. Wei joined the company in 2004, and successively served as the head of the company's production and operation
management department, human resources management department, lean manufacturing management department, employee
management and other related departments.

(3) Senior management personnel of the Company

Jiang Long (Refer to the resume above for details.)

Li Youbo (Refer to the resume above for details.)


Liu Chunfa, male, a Chinese citizen with no foreign residency right, who was born in October 1976, graduated from Lanzhou Railway
Institute majoring in mechatronics. Vice President of the company. Since joining the Company in 1999, he successively served as
engineer and assistant manager of the R&D department, technical manager of the technical engineering department, senior product
manager, head of the manufacturing department, senior manager of the R&D department, person in charge of the business department,
etc. Mr. Liu has over 20 years of experience in the fields of electroacoustic components, especially in miniature loudspeakers and
receivers.

Jiang Hongzhai, male, a Chinese citizen with no foreign residency right, who was born in December 1970, graduated from Shandong
Institute of Information Technology, majoring in computer application. Vice President of the company. Mr. Jiang used to serve as
factory director of Yuefeng Electronic Technology (Dongguan) Co., Ltd., and engineer of Weifang Radio Eighth Factory. He joined
theCompanyin 2006 and successivelyserved asdeputygeneral manager ofequipment department, employee management department,
manager of subsidiaries business, etc. Mr. Jiang has more than 20 years of experience in the field of precision machining, and has rich
experience in logistics support such as administration and infrastructure, etc.

Yu Dachao, male, a Chinese citizen with no foreign residency right, who was born in May 1978, has a bachelor's degree in computer
science and engineering, Tianjin University of Technology. Vice President of the company. He joined the Company in 2005 and
successivelyserved asthemanager, product manager, deputygeneral manager oftheR&Ddepartment, headofthebusinessdepartment,
and head of the supply chain management department. Mr. Yu has rich experience in the fields of intelligent electronic product
development and supply chain management.

Gao Xiaoguang, male, aChinesecitizen with no foreign residencyright, who wasborn in March1976,hasa master’sdegreein business
administration from Southern Cross University, Australia. Vice President of the company. He joined the Company in 2001, and
successively served as manager, deputy manager and general manager of the device business department and head of the marketing
system. He has rich experience in market expansion and key client maintenance.

Duan Huilu (Refer to the resume above for details.)

Jia Jun'an, male, a Chinese citizen with no foreign residency right, who was born in February 1971, holds a Ph.D. degree in economics
from Xiamen University, a master's degree of economics from Shandong University, a bachelor's degree in economics from Shandong
University of Finance and Economics. Vice President and the Secretary of the Board. He used to serve as the tax manager of KPMG
Enterprise Consulting (China) Co., Ltd., Qingdao Branch. Mr. Jia joined the company in 2010 and served as deputy general manager
of financial department. Mr. Jia is a member of Chinese Institute of Certified Public Accountants (CICPA) and member of Association
of Chartered Certified Accountants (ACCA), and holds the Certificate for Secretary of the Board of Directors, and his qualification
complies with relevant provisions of Rules Governing the Listing of Shares on Shenzhen Stock Exchange and the Articles of
Association.

Kazuyoshi Yoshinaga, male, Japanese citizen, who was born in September 1967, holds a master's degree in business administration
from University of Washington and a bachelor's degree in mechanics from Tongji University. He currently serves as vice president of
the Company, and deputy secretary-general of the China Virtual Reality Industry Association. He was an associate partner at IBM. He
joined the Company in 2015, and has extensive experience in the field of strategy and transformation management. Kazuyoshi
Yoshinaga resigned on March 7, 2023.

Li Yongzhi, male, a Chinese citizen with no foreign residency right, who was born in November 1978, holds a master’s degree in
business management and a bachelor's degree in management from Hefei University of Technology. Chief Financial Officer of the
company and the Head of the Accounting Office. He joined the Company in 2005 and successively served as accountant and financial
manager of the financial department. Mr. Li is senior accountant and certified management accountant (CMA), with more than 15
years of experience in corporate finance.

Positions held in shareholders’entities
 Applicable  Not applicable

Position Receive

Name of the undertaken in remuneration or
Name shareholder entity shareholder Term start date Term end date allowance from

unit shareholders’entity
(Yes/No)

Jiang Bin Goertek Group Co., Chairman November 15, 2021 November 14, 2024 No

Ltd.

Jiang Long Goertek Group Co., Director November 15, 2021 November 14, 2024 No

Ltd.


Duan Huilu Goertek Group Co., Director November 15, 2021 November 14, 2024 No

Ltd.

Positions held in

shareholders’ None

entities
Positions held in other entities
 Applicable  Not applicable

Receive

Position undertaken remuneration or
Name Name of other entity in other unit Term start date Term end date allowance from
shareholders’entity
(Yes/No)

Jiang Bin Weifang Goertek Chairman November 23, 2019 November 22, 2025 No

Electronics Co., Ltd.

Jiang Bin Goertek Optical Chairman April 20, 2022 April 19, 2025 No

Technology Co., Ltd

Jiang Bin Beijing Goertek Investment Executive Director January 22, 2019 January 21, 2025 No

Management Co., Ltd.

Jiang Bin Weifang Goertek Education Executive Director March 22, 2019 March 21, 2025 No

Investment Co., Ltd.

Jiang Long Rongcheng Goertek Chairman July 15, 2020 July 14, 2023 No

Technology Co., Ltd.

Jiang Long Goertek Technology Vina Chairman January 31, 2019 December 31, 2024 No

Company Limited

Jiang Long Goertek Electronics, Inc. Director May 1, 2020 April 30, 2023 No

Jiang Long Weifang Goertek Director / General November 26, 2019 November 25, 2025 No

Electronics Co., Ltd. Manager

Jiang Long Goertek Optical Director / General April 20, 2022 April 19, 2025 No

Technology Co., Ltd Manager

Jiang Long Goertek Technology Co., Executive Director December 10, 2021 December 9, 2026 No

Ltd. / General Manager

Jiang Long Goertek Intelligence Executive Director August 18, 2020 August 17, 2023 No

Technology Co., Ltd. / General Manager

Jiang Long Goertek Microelectronics Chairman October 20, 2020 April 7, 2023 No

Inc.

Jiang Long Qingdao Goertek Executive Director October 22, 2021 October 21, 2024 No

Intelligent Sensor Co., Ltd.

Jiang Long Weifang Goertek Executive Director December 9, 2019 April 7, 2023 No

Microelectronics Co., Ltd.

Jiang Long Shanghai Goertek Executive Director October 14, 2020 April 7, 2023 No

Microelectronics Co., Ltd.

Jiang Long Beijing Goertek Executive Director August 7, 2020 April 7, 2023 No

Microelectronics Co., Ltd.

Jiang Long Wuxi Goertek Executive Director August 7, 2020 April 7, 2023 No

Microelectronics Co., Ltd.

Jiang Long Shenzhen Goertek Executive Director July 23, 2020 April 7, 2023 No

Microelectronics Co., Ltd.

Jiang Long Rongcheng Goertek Executive Director November 1, 2021 April 7, 2023 No

Microelectronics Co., Ltd.


Qingdao Goertek

Jiang Long Microelectronics Research Executive Director November 30, 2020 April 7, 2023 No

Institute Co., Ltd.

Jiang Long Enkris Semiconductor Inc. Director November 18, 2021 April 7, 2023 No

Jiang Long Qingdao Virtual Reality Chairman April 12, 2022 April 11, 2025 No

Institute Co., Ltd.

Goertek Optical

Jiang Long Technology (Shanghai) Director February 16, 2022 February 15, 2025 No

Co., Ltd

Jiang Long Qingdao Goertek Horizons Director / General May 19, 2022 May 18, 2025 No

Technology Co., Ltd Manager

Goertek Optical

Jiang Long Technology (Qingdao) Co., Director June 29, 2022 June 28, 2025 No

Ltd

Duan Huilu Goertek Technology Vina Director January 31, 2019 No

Company Limited

Duan Huilu Goertek Technology Co., Supervisor August 14, 2021 August 13, 2024 No

Ltd.

Duan Huilu Goertek Investment Co., Executive Director December 7, 2015 December 6, 2025 No

Ltd. / General Manager

Duan Huilu Weifang Goertek Director November 23, 2021 November 22, 2024 No

Electronics Co., Ltd.

Duan Huilu Weifang Goertek Trading Executive Director August 26, 2020 August 25, 2023 No

Co., Ltd. / General Manager

Duan Huilu Beijing Goertek Investment Supervisor January 22, 2019 January 21, 2025 No

Management Co., Ltd.

Duan Huilu Goertek (HongKong) Director April 26, 2019 April 25, 2025 No

Co.,Limited

Qingdao Goertek Executive Director

Duan Huilu Commercial Factoring Co., / General Manager January 11, 2021 January 10, 2024 No

Ltd.

Liu Chunfa Goertek Vina Co., Ltd. Director January 1, 2019 No

Liu Chunfa Goertek Technology Vina Director January 31, 2019 No

Company Limited

Liu Chunfa Shanghai Goertek Supervisor April 25, 2020 April 24, 2023 No

Technology Co., Ltd.

Jiang Yili Precision Executive Director July 5, 2019 July 4, 2022 No

Hongzhai Manufacturing Co., Ltd.

Jiang Weifang Goertek

Hongzhai Communication Executive Director June 26, 2021 June 25, 2024 No

Technology Co., Ltd.

Jiang Dongguan JoyForce

Hongzhai Precision Manufacturing Executive Director December 11, 2019 December 10, 2025 No

Co., Ltd.

Jiang Kunshan Goertek Executive Director November 9, 2020 November 8, 2026 No

Hongzhai Electronics Co., Ltd

Jiang Nanning Goertek Chairman November 12, 2021 November 11, 2024 No

Hongzhai Electronics Co., Ltd

Jiang Nanning Goertek Trading Chairman November 29, 2021 November 28, 2024 No

Hongzhai Co., Ltd.

Yu Dachao Beijing Goertek Executive Director November 30, 2019 November 29, 2025 No

Technology Co., Ltd. / General Manager

Yu Dachao Xi’an Goertek Electronic Executive Director May 7, 2019 May 6, 2025 No

Technology Co., Ltd.

Yu Dachao Qingdao GoertekAcoustics Executive Director December 10, 2021 December 9, 2024 No

Technology Co., Ltd. / General Manager

Yu Dachao Yishui TECO Electronic Chairman / General December 10, 2019 December 9, 2025 No

Technology Co., Ltd. Manager

Yu Dachao Goertek Technology Vina Director January 31, 2021 No

Company Limited

Gao Yishui Goertek Electronics Executive Director February 13, 2021 April 19, 2022 No

Xiaoguang Co., Ltd. / General Manager

Gao Shenzhen Goertek Executive Director October 29, 2021 October 28, 2024 No

Xiaoguang Technology Co., Ltd. / General Manager

Gao Shanghai Goertek Executive Director April 25, 2020 April 24, 2023 No

Xiaoguang Technology Co., Ltd.

Gao Goertek Electronics, Inc. Manager December 19, 2018 December 18, 2024 No

Xiaoguang

Gao AKM Industrial Company Non-executive March 12, 2015 July 31, 2022 No

Xiaoguang Limited director

Jia Jun'an Goertek Investment Co., Supervisor December 7, 2021 December 6, 2024 No

Ltd.

Jia Jun'an Weifang Goertek Supervisor November 26, 2019 November 25, 2025 No

Electronics Co., Ltd.

Jia Jun'an AKM Industrial Company Non-executive November 17, 2015 July 31, 2022 No

Limited director

Li Yongzhi Goertek Optical Supervisor March 23, 2021 April 21, 2022 No

Technology Co., Ltd

Li Yongzhi Goertek Intelligence Supervisor August 18, 2020 August 17, 2023 No

Technology Co., Ltd.

Li Yongzhi Kunshan Goertek Supervisor November 9, 2020 November 8, 2023 No

Electronics Co., Ltd

Qingdao Goertek

Li Yongzhi Commercial Factoring Co., Supervisor January 11, 2021 January 10, 2024 No

Ltd.

Li Yongzhi Nanning Goertek Supervisor November 12, 2021 November 11, 2024 No

Electronics Co., Ltd

Li Yongzhi Nanning Goertek Trading Supervisor November 29, 2021 November 28, 2024 No

Co., Ltd.

Li Yongzhi Xi’an Goertek Electronic Supervisor May 7, 2019 May 6, 2025 No

Technology Co., Ltd.

Li Yongzhi Yishui TECO Electronic Supervisor December 10, 2019 December 9, 2025 No

Technology Co., Ltd.

Li Yongzhi Rongcheng Goertek Supervisor July 15, 2020 July 14, 2023 No

Technology Co., Ltd.

Li Yongzhi Goertek Microelectronics Director December 23, 2020 December 22, 2023 No

Inc.

Li Youbo Shanghai Goertek General Manager July 23, 2020 July 22, 2023 No


Technology Co., Ltd.

Li Youbo Weifang Goertek Supervisor May 9, 2022 May 8, 2025

Electronics Co., Ltd.

Zhu Nanning Goertek Director November 12, 2021 November 11, 2024 No

Shengbo Electronics Co., Ltd

Zhu Nanning Goertek Trading Director November 29, 2021 November 28, 2024 No

Shengbo Co., Ltd.

Zhu Goertek Vina Co., Ltd Chairman January 1, 2019 No

Shengbo

Zhu Goertek Technology Vina Director January 31, 2019 No

Shengbo Company Limited

Zhu Goertek Precision Industry Executive Director October 30, 2020 October 29, 2025 No

Shengbo Vietnam Company Limited

Zhu Goertek Technology (Hong Executive Director August 7, 2020 No

Shengbo Kong) Co.,Limited

Zhu Weifang Goertek Executive Director May 9, 2022 May 8, 2025 No

Shengbo Electronics Co., Ltd. / Manager

Wei Weifang Goertek

Wenbin Communication General Manager June 26, 2021 June 25, 2024 No

Technology Co., Ltd.

Seetrum Companion

Huang (Shanghai) Enterprise Managing Partner November 12, 2020 No

Yidong Management Center

(Limited Partnership)

Huang Advanced Fiber Resources Independent March 31, 2021 March 30, 2024 Yes

Yidong (Zhuhai), Ltd. Director

Huang Beijing Seetrum

Yidong Technology Co., Ltd. Co., Supervisor May 20, 2021 No

Ltd.

Huang Tianjin Hi-Chip

Yidong Technology Group Director April 29, 2022 April 28, 2025 No

Corporatiion.

Feng Weifang Lokomo Precision Executive Director April 27, 2015 April 21, 2022 No

Pengbo Industry Co., Ltd. / General Manager

Feng Shenzhen Mototek Smart Supervisor November 22, 2019 November 21, 2025 No

Pengbo Technology Co., Ltd.

Feng Qingdao Virtual Reality Chairman July 9, 2020 April 24, 2022 No

Pengbo Institute Co., Ltd.

Feng BUAAGoertek (Weifang) Chairman August 31, 2021 No

Pengbo Intelligent Robot Co., Ltd.

Description
of
incumbency None
in other
units

Penalties imposed by securities regulatory authorities on current and outgoing directors, supervisors and senior management of the
company in the past three years

 Applicable  Not applicable


3. Remuneration of Directors, Supervisors and Senior Management

The decision-making procedure, basis and actual payment of the remuneration of directors, supervisors and senior management

The remuneration for the Company's directors shall be deliberated by the board of directors before being submitted to the general
meeting of shareholders for determination; the remuneration for supervisors shall be deliberated by the board of supervisors before
being submitted to the general meeting of shareholders for determination; the remuneration for senior management personnel shall be
proposed by the remuneration and appraisal committee and determined by the board of directors upon deliberation.

Remuneration of directors, supervisors and senior management during reporting period

Unit: RMB 10,000

The total amount Whether to get
Appointment of pre-tax paid by the

Name Position Gender Age status remuneration related party of
received from the company
the company

Jiang Bin Chairman Male 57 Incumbent 181.50 No

Vice Chairman and President

Jiang Long (resigned from the above Male 49 Incumbent 175.50 No

positions onApril 6, 2023)

Duan Huilu Director, Vice President Male 47 Incumbent 118.50 No

Director and Vice President

Li Youbo (Serving as President of the Male 46 Incumbent 118.50 No

Company sinceApril 7, 2023)

Wang Kun Independent Director Female 47 Incumbent 18.00 No

Huang Independent Director Female 58 Incumbent 2.25 No

Yidong

Jiang Fuxiu Independent Director Male 54 Incumbent 2.25 No

Feng Chairman of Board of Male 55 Incumbent 5.63 No

Pengbo Supervisors

Xu Employee representative Female 46 Incumbent 47.63 No

Xiaofeng Supervisor

Wei Employee representative Male 45 Incumbent 47.93 No

Wenbin Supervisor

Gao Vice President Male 47 Incumbent 118.50 No

Xiaoguang

Liu Chunfa Vice President Male 47 Incumbent 118.50 No

Jiang Vice President Male 53 Incumbent 118.50 No

Hongzhai

Jia Jun'an Vice President, Secretary of the Male 52 Incumbent 116.25 No

Board

Yu Dachao Vice President Male 45 Incumbent 118.50 No

Li Yongzhi Chief Financial Officer Male 45 Incumbent 114.00 No

Sun Chairman of Board of Male 57 Resigned 0.00 Yes

Hongbin Supervisors

Zhu Vice President Male 49 Resigned 105.00 No

Shengbo

Xia Director Female 65 Resigned 15.75 No

Shanhong

Wang Independent Director Male 63 Resigned 15.75 No

Tianmiao


Liu Director Male 52 Resigned 15.75 No

Chengmin

Kazuyoshi Vice President Male 56 Resigned 117.00 No

Yoshinaga

Total -- -- -- -- 1,691.18 --

VI. Performance of Directors' Duties during the Reporting Period

1. Board of Directors

Session Convening date Disclosure date Meeting resolution

For details, refer to theAnnouncement on the

The 26th Meeting of Resolution of the 26th Meeting of the 5th Board of

the 5th Board of February 17, 2022 February 18, 2022 Directors published in Securities Times, China

Directors Securities Journal, Shanghai Securities News,

Securities Daily, and CNINFO

(http://www.cninfo.com.cn)

For details, refer to theAnnouncement on the

The 27th Meeting of Resolution of the 27th Meeting of the 5th Board of

the 5th Board of March 29, 2022 March 30, 2022 Directors published in Securities Times, China

Directors Securities Journal, Shanghai Securities News,

Securities Daily, and CNINFO

(http://www.cninfo.com.cn)

For details, refer to theAnnouncement on the

The 28th Meeting of Resolution of the 28th Meeting of the 5th Board of

the 5th Board of April 26, 2022 April 27, 2022 Directors published in Securities Times, China

Directors Securities Journal, Shanghai Securities News,

Securities Daily, and CNINFO

(http://www.cninfo.com.cn)

For details, refer to theAnnouncement on the

The 29th Meeting of Resolution of the 29th Meeting of the 5th Board of

the 5th Board of May 20, 2022 May 21, 2022 Directors published in Securities Times, China

Directors Securities Journal, Shanghai Securities News,

Securities Daily, and CNINFO

(http://www.cninfo.com.cn)

For details, refer to theAnnouncement on the

The 30th Meeting of Resolution of the 30th Meeting of the 5th Board of

the 5th Board of June 10, 2022 June 11, 2022 Directors published in Securities Times, China

Directors Securities Journal, Shanghai Securities News,

Securities Daily, and CNINFO

(http://www.cninfo.com.cn)

For details, refer to theAnnouncement on the

The 31st Meeting of Resolution of the 31st Meeting of the 5th Board of

the 5th Board of July 8, 2022 July 11, 2022 Directors published in Securities Times, China

Directors Securities Journal, Shanghai Securities News,

Securities Daily, and CNINFO

(http://www.cninfo.com.cn)

For details, refer to theAnnouncement on the

The 32nd Meeting of Resolution of the 32nd Meeting of the 5th Board of

the 5th Board of August 29, 2022 August 30, 2022 Directors published in Securities Times, China

Directors Securities Journal, Shanghai Securities News,

Securities Daily, and CNINFO


(http://www.cninfo.com.cn)

For details, refer to theAnnouncement on the

The 33rd Meeting of Resolution of the 33rd Meeting of the 5th Board of

the 5th Board of September 13, 2022 September 14, 2022 Directors published in Securities Times, China

Directors Securities Journal, Shanghai Securities News,

Securities Daily, and CNINFO

(http://www.cninfo.com.cn)

For details, refer to theAnnouncement on the

The 34th Meeting of Resolution of the 34th Meeting of the 5th Board of

the 5th Board of October 27, 2022 October 28, 2022 Directors published in Securities Times, China

Directors Securities Journal, Shanghai Securities News,

Securities Daily, and CNINFO

(http://www.cninfo.com.cn)

For details, refer to theAnnouncement on the

The 1st Meeting of Resolution of the 1st Meeting of the 6th Board of

the 6th Board of November 21, 2022 November 22, 2022 Directors published in Securities Times, China

Directors Securities Journal, Shanghai Securities News,

Securities Daily, and CNINFO

(http://www.cninfo.com.cn)

For details, refer to theAnnouncement on the

The 2nd Meeting of Resolution of the 2nd Meeting of the 6th Board of

the 6th Board of December 2, 2022 December 3, 2022 Directors published in Securities Times, China

Directors Securities Journal, Shanghai Securities News,

Securities Daily, and CNINFO

(http://www.cninfo.com.cn)

2. Directors’attendance at Board of Directors and general meeting of shareholders

Directors’ attendance at Board of Directors and general meeting of shareholders

Number of Whether there Attendance of
Attendance Attendance by Entrusted is absence in the general
Name required Attendance in Tele- presence Absence person for two meeting of
during the person (times) communicatio (times) (times) consecutive shareholders
reporting n (times) times (times)

period (times)

Jiang Bin 11 10 1 0 0 No 4

Jiang Long 11 10 1 0 0 No 4

Duan Huilu 11 10 1 0 0 No 4

Li Youbo 2 1 1 0 0 No 1

Wang Kun 11 0 11 0 0 No 3

Huang Yidong 2 0 2 0 0 No 1

Jiang Fuxiu 2 0 2 0 0 No 1

Xia Shanhong 9 0 9 0 0 No 3

Wang 9 0 9 0 0 No 2
Tianmiao

Liu Chengmin 9 0 9 0 0 No 2

Statement on failure to attend the Board of Directors for two consecutive times

None


3. Objections raised by directors to relevant matters of the Company

Whether directors raise any objection to relevant matters of the Company

 Yes  No

No objection was raised to relevant matters of the Company during the reporting period.

4. Other details on the performance of duties by directors

Whether proposals made by directors were adopted by the Company

 Yes  No

Statement on the adoption or non-adoption of proposals made by the directors

During the reporting period, the directors of the Company carried out work in strict accordance with Company Law, Securities Law,
Corporate Governance of Listed Companies, Rules Governing the Listing of Shares on Shenzhen Stock Exchange, Self-Regulatory
Directives No.1 for Listed Companies on the Shenzhen Stock Exchange - Normative Operation of Listed Companies on the Main
Board, Articles of Association and Rules of Procedure of the Board of Directors. They fulfilled their duty of due diligence by forming
a consensus after full discussion on major governance and business matters of the Company, and resolutely supervising and driving
the implementation of the board resolution, so as to ensure the decision-making process being scientific, timely and efficient, play a
positive role in the sustained, healthy and stable development of the Company, and effectively safeguard the legitimate rights and
interests of the Company and all shareholders.

VII. Performance of Special Committees under the Board of Directors during the Reporting
Period

Number Important Performance Specific

Committee Members of Convening Meeting content opinions and of other objections (if
name meetings date suggestions duties any)

held proposed

We reviewed and

approved proposals

such as Inspection

Report on Important

Matters including

January 26, Related Transactions Approved Not Not applicable
2022 and Guarantees in the applicable

2nd half of 2021,

Internal Audit Work

Report for Q4 2021

and the entire year of

Wang Kun, 2021.

Audit Jiang Bin, Xia 6 We reviewed and

committee Shanhong approved proposals

such as Proposal on

Deliberation of

Annual Report of

2021 and its Abstract,

March 28, Proposal on Approved Not Not applicable
2022 Deliberation of applicable

Financial Accounts of

2021, Proposal on the

Deliberation of Self-

assessment Report on

Internal Control of

2021.


Number Important Performance Specific

Committee Members of Convening Meeting content opinions and of other objections (if
name meetings date suggestions duties any)

held proposed

We reviewed and

approved proposals

such as Proposal on

the deliberation of

April 25, Goertek Inc. Quarterly Approved Not Not applicable
2022 Report in Q1 2022, applicable

Special Auditor’s

Report on the Deposit

and Use of Funds

Raised in Q1 2022.

We reviewed and

approved Proposal on

May 19, 2022 the Company's Approved Not Not applicable
Foreign Investment applicable

Involving Related

Transactions

We reviewed and

approved proposals

such as Proposal on

Deliberation of

Goertek Inc. Interim

August 26, Report of 2022 and Not

2022 Abstract of Interim Approved applicable Not applicable
Report of 2022,

Special Audit Report

on the Deposit and

Use of Raised Funds

in the Semiannual

Period of 2022.

We reviewed and

approved proposals

October 26, such as Proposal on Approved Not Not applicable
2022 Deliberation of applicable

Goertek Inc. Quarterly

Report in Q3 2022.

We reviewed and

approved Proposal on

March 18, the Grant of Reserved Approved Not Not applicable
2022 Restricted Stock in the applicable

Remuneration Jiang Bin, Xia 2021 Stock Option

and Shanhong, and Incentive Plan

assessment Wang 7 We reviewed and

committee Tianmiao approved proposals

such as Proposal on Not

June 7, 2022 theAdjustment of the Approved applicable Not applicable
List of Initial

Incentive Participants

of the Incentive and


Number Important Performance Specific

Committee Members of Convening Meeting content opinions and of other objections (if
name meetings date suggestions duties any)

held proposed

the Number of

Granted Reserved

Restricted Stocks and

the Cancellation of

Some Restricted

Stocks in the 2021

Stock Option and

Incentive Plan.

We reviewed and

approved Proposal on

June 7, 2022 Deliberation of Approved Not Not applicable
Goertek Inc.'s Home applicable

No. 6 ESOP (Draft)

and Its Abstract, etc.

We reviewed and

approved proposals

such as Proposal on

theAdjustment of the

September 9, List of Initial Not

2022 Incentive Participants Approved applicable Not applicable
and the Number of

Granted Reserved

Restricted Stocks in

the 2022 Stock Option

Incentive Plan.

We reviewed and

approved proposals

October 25, such as Proposal on Approved Not Not applicable
2022 the Remuneration of applicable

Members of the 6th

Board of Directors.

We reviewed and

November approved Proposal on Not

14, 2022 the Remuneration of Approved applicable Not applicable
Senior Management

Personnel

We reviewed and

approved Proposal on

Jiang Fuxiu, Adjustment of

Jiang Bin, November Goertek Inc.'s “Home Approved Not Not applicable
Huang Yidong 30, 2022 No. 6” Employee applicable

Stock Ownership Plan

(Draft) and its

Abstract, etc.

VIII. Performance of the Board of Supervisors

Whether the Board of Supervisors found out any risk of the Company in its supervision activities during the reporting period.

 Yes  No


The Board of Supervisors has no objection to the matters supervised during the reporting period.

IX. Personnel of the Company

1. Number of staff, specialty composition and educational level

Number of staff of the parent company at the end of the 32,783
Reporting Period

Number of Staff of major subsidiaries at the end of the Reporting 52,575
Period

Total number of staff at the end of the Reporting Period 85,358

Total number of staff who receive remuneration during the 85,358
Reporting Period

Number of retired staff the Company and its major subsidiaries 0
are required to compensate

Specialty composition

Category Number

Production staff 60,313

Sales staff 684

Technical staff 19,496

Financial staff 281

Administrative staff 4,584

Total 85,358

Education background

Category Number

PhD 76

Master 3,641

Bachelor 15,460

College degree 17,079

Below college degree 49,102

Total 85,358

2. Remuneration policy

The Company always takes human resources as the most important strategy and the top priority by continuously innovating the
incentive plans to stimulate employees’ vitality and tap their potential. In 2022, the Company implemented an effective employee
incentive and retention strategy among key groups and for its core business, so as to share the growth of corporate benefits with its
employees by optimizing the allocation mechanism.

Despite external risks and challenges in 2022, the Company insisted on deliberating and adjusting remuneration, making employees'
incomes increasing steadily. For core positions and key groups supporting the strategic new business development of the Company, a
special incentive and retention policy has been implemented to effectively achieve the precision talent attraction and retention. To
further reserve talents for sustainable and sound development of the Company, we continuously raise the remuneration level of fresh
graduates, adopted thestrategyof "reward +housepurchasesubsidy”to retain high-endtalents, and offered the"moat"special retention
incentive to core engineers.

In terms of incentives, the Company continued implementing stock and option incentive plans for backbone employees, and released
a new "Home No. 6" employee stock ownership plan in 2022 to drive employees to grow together with the Company. In recent years,
through continuous innovation of equity incentives, the number of shareholders has increased year by year, and long-term incentives
have become an important way for the Company to attract, retain and motivate employees to grow stronger together.

In terms of welfare, the Company continued improving employee welfare, with a commitment to build a welfare system with Goertek
characteristics, and improve home ownership, children's education, health care, holiday benefits, etc. in 2022. In addition, we kept

taking care of employee demands, seeking well-being for employees, improving employees' level of satisfaction with welfare, and
enhancing employees' sense of belonging.
3. Training programmes

In 2022, the Human Resources Management Department worked in line with the company's development strategy and business
demands. Under the guidance of the development plan of the global training center, the Company's talent training system was further
consolidated and improved. The capability building programs for key groups such as management personnel, professionals and new
employees focused more on business needs, and training resources became more systematic and standardized. At the same time, by
developing the administrative management mechanism and setting up relevant functions, we continued to create the learning
atmosphere within the Company, in an effort to build a learning organization, enhance the ability of employees, and help the Company
achieve its business goals.

In 2023, the Company, under the unified planning of the learning and development center, will carry out personnel training work by
closely surrounding the talent strategy. Horizontally, the Company will expand the groups of trainees. Vertically, improve various
types of training programs and strengthen the overall talent training system, and step up the training for key talents to meet the
Company's strategic needs for strategic talents. At the same time, the Company will focus on improving the digitalization of training
to enrich employees’ learning experience, enhance employees’ capabilities, and improve the overall capabilities and performance of
the Company.
4. Labor outsourcing
 Applicable  Not applicable

X. Profit Distribution and Conversion of Capital Surplus into Share Capital

Formulation, execution or adjustment of profit distribution policy, especially the cash dividend during the Reporting Period

 Applicable  Not applicable

The Company has strictly implemented the Shareholder Return Plan for the Next Three Years (2022-2024), and clarifies the standard,
ratio, and the decision making procedures of the distribution policy, which ensures the continuity and stability of the profit distribution
policy, in order to fully protect the legitimate rights and interests of minority investors. The Company did not make changes to the
profit distribution policy during the reporting period.

Special description of the cash dividend policy

Whether in compliance with provisions in theArticles of

Association or requirements of the resolution of the Yes

extraordinary general meeting of shareholders:

Whether the dividend standard and the proportion are definite Yes

and clear:

Whether the related decision-making procedures and Yes

mechanisms are complete:

Whether independent directors perform their duties responsibly Yes

and play their due roles:

Whether minority shareholders have the opportunity to fully

express their opinions and demands and their legitimate rights Yes

and interests are fully protected:

Whether the conditions and procedures are transparent and

comply with regulations while the cash dividend policy is The cash dividend policy has not been adjusted.

adjusted or changed:

The profits of Goertek in the Reporting Period and the parent company's profits distributable to shareholders are positive, but the

Company did not put forward a proposed plan for cash dividend distribution.

 Applicable  Not applicable

Profit distribution and conversion of capital surplus into share capital during the reporting period.

 Applicable  Not applicable


Number of bonus shares per 10 shares 0

Dividend per 10 shares (RMB) (tax inclusive) 1.00

Conversion of capital surplus into share capital per 10 shares 0
(shares)

Share capital base of the distribution proposal (shares) 3,405,162,949

Cash dividend amount (RMB) (tax inclusive) 340,516,294.90

Cash dividend amount distributed by other means (such as shares 0.00
repurchase) (RMB)

Total cash dividends (including other means) (RMB) 0.00

Distributable profit (RMB) 16,507,798,239.34

Proportion of total cash dividends (including other means) in 100%
total profit distribution

Cash dividends

If the Company is in developing stage, and there are major capital expenditure arrangements, the minimum proportion of cash

dividends in profit distribution should reach 20%.

Detailed description of the proposal for profit distribution or capitalization from capital surplus funds

According to the standard unqualified opinion auditor’s report issued by ZHONGXI CPAs (Special General Partnership) for

Goertek, the parent company reports a net profit of RMB -358,777,530.78 in 2022, net distributable profit of RMB

9,410,101,500.47 at the end of 2022, and the balance of capital surplus of RMB 8,421,030,014.05. The net distributable profit in the
consolidated balance sheet is RMB 16,507,798,239.34. The profit distribution in 2022 is as follows: based on the total share capital
registered on the record date of equity distribution minus the repurchased shares in the Company's specific securities repurchase

account, the Company will distribute cash dividend of RMB 1.00 (tax inclusive) for per 10 shares to all the shareholders, as well as
0 bonus shares (tax inclusive), and there is no conversion of capital surplus into share capital.

XI. Equity Incentive Plan, Employee Stock Ownership Plan or Other Employee Incentives

 Applicable  Not applicable
1. Equity incentive

(1) Stock Option Incentive Plan in 2021 (hereinafter referred to as “the Incentive Plan 2021”):

On April 16, 2021, Goertek convened the 19th meeting of the 5th Board of Directors, which approved Proposal of 2021 Stock Option
Incentive Plan of Goertek Inc. (Draft) and the Summary, Proposal of Rules on the Implementation and Assessment of 2021 Stock
Option Incentive Plan, and Proposal of Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle
Matters Relevant to 2021 Stock Option Incentive Plan. The 14th meeting of the 5th Board of Supervisors approved relevant proposals,
reviewed the list of participants awarded for the first time, and expressed the review opinions. Independent directors of the Company
expressed their agreed opinions on the Incentive Plan 2021 independently.

On April 17, 2021, Goertek disclosed the List of Participants Awarded for the First Time of the Incentive Plan on the website
http//:www.cninfo.com.cn. The Company publicized the names and positions of these participants from April 20 to April 29, 2021.
During the publicity period, the Supervisors did not receive any objections, and no feedback was recorded. On April 30, 2021, the
Company disclosed the Result of Review by the Board of Supervisors on the List of Participants Awarded for the First Time of 2021
Stock Option Incentive Plan. On May 8, 2021, the Company disclosed Self-examination Report on the Trading of Shares by Insiders
of the 2021 Stock Option Incentive Plan.

On May 7, 2021, the proposals mentioned above were approved on the annual general meeting of 2020. The Board of Directors were
authorized to handle relevant matters regarding the Incentive Plan 2021.

On June2,2021,Goertekconvened the21st meetingofthe5th Board ofDirectorsand the16th meetingofthe5th BoardofSupervisors.
Proposal of the Adjustment of Participants Awarded for the First Time of the 2021 Stock Option Incentive Plan, Number of Stock
Options and Exercise Price, and the Proposal of Resolution of Grant Stock Options to the Participants were approved. The Board of
Supervisors expressed the results of review on the list of incentive participants. Independent Directors expressed their agreed opinions
on relevant matters independently. Beijing Tian Yuan LawFirmissued the Legal OpinionsofBeijingTian Yuan LawFirmon Relevant
Matters Regarding the Adjustment and First Grant of the 2021 Goertek Inc. Stock Option Incentive Plan.


On June 24, 2021, Goertek completed the registration of the Incentive Plan 2021.

On March 29, 2022, Goertek convened the 27th meeting of the 5th Board of Directors and the 21st meeting of the 5th Board of
Supervisors, at which the Proposal on the Grant of Reserved Restricted Stock in the 2021 Stock Option Incentive Plan was approved.
The independent directors of the Company expressed their independent opinions on this, and the Board of Supervisors verified and
issued verification opinions on matters related to the list of initial incentive participants and grant arrangements reserved for stock
options. Beijing Tian Yuan Law Firm issued legal opinions correspondingly.

On April 20, 2022, Goertek completed the granting and registration of reserved stock options in the Incentive Plan 2021.

On June 10, 2022, the Company convened the 30th meeting of the 5th Board of Directors and the 24th meeting of the 5th Board of
Supervisors,, and approved the Proposal on Adjusting the Exercise Price of the Company's 2021 Stock Option Incentive Plan, Proposal
on the Adjustment of the List of Initial Incentive Participants of the Incentive and the Number of Granted Reserved Restricted Stocks
and the Cancellation of Some Restricted Stocks in the 2021 Stock Option Incentive Plan and Proposal on the Achievement of the
Exercise Conditions of Initial Granted Stock Options for the First Exercise Period in the 2021 Stock Option Incentive Plan. The Board
of Directors determined that the exercise conditions for the initial granted stock options for the first exercise period of Incentive Plan
2021 had been fulfilled, and the incentive participants may exercise their options in accordance with the relevant provisions of the
Incentive Plan 2021 from June 24, 2022 to June 23, 2023. The Board of Supervisors expressed the review opinions on the list of
incentive participants and matters on the achievement of exercise conditions. Independent Directors expressed their agreed opinions
on relevant matters independently. Beijing Tian Yuan Law Firm issued legal opinions correspondingly.

On April 7, 2023, the Company convened the 3rd meeting of the 6th Board of Directors and the 3rd meeting of the 6th Board of
Supervisors, and approved the Proposal on the Adjustment of the List of Initial Incentive Participants of the Incentive and the Number
of Granted Reserved Restricted Stocks and the Cancellation of Some Restricted Stocks in the 2021 Stock Option Incentive Plan and
the Proposal on the Achievement of the Exercise Conditions of Initial Granted Stock Options for the First Exercise Period in the 2021
Stock Option Incentive Plan. The Board of Directors determined that the exercise conditions for the first exercise period of the reserved
grant portion of the 2021 stock option incentive plan had been fulfilled, and the incentive participants may exercise their options in
accordance with the relevant provisions of this incentive plan from April 20, 2023 to April 19, 2024 (the actual exercise start time is
determined according to the processing completion time of China Securities Depository and Clearing Co., Ltd., but not earlier than
April 20, 2023). The Board of Supervisors expressed the review opinions on the adjustment of the list of incentive participants and
achievement of exercise conditions. Independent Directors expressed their agreed opinions on relevant matters independently. Beijing
Tian Yuan Law Firm issued legal opinions correspondingly.

(2) Stock Option Incentive Plan in 2022 (hereinafter referred to as “the Incentive Plan 2022”)

On July 8, 2022, Goertek convened the 31st meeting of the 5th Board of Directors, which approved Proposal of 2022 Stock Option
Incentive Plan of Goertek Inc. (Draft) and the Summary, Proposal of Rules on the Implementation and Assessment of 2022 Stock
Option Incentive Plan, and Proposal of Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle
Matters Relevant to 2022 Stock Option Incentive Plan. At the 25th meeting of the 5th Board of Supervisors, the Company, in addition
to approving relevant proposals, expressed the review opinions on the list of initial incentive participants. Independent directors of the
Companyexpressed their agreed opinionson theIncentivePlan2022 independently. BeijingTian Yuan LawFirmissued legal opinions
correspondingly.

On July 11, 2022, Goertek disclosed the List of Initial Incentive Participants in the Goertek Inc. Incentive Plan 2022 on the website
http//:www.cninfo.com.cn. The Companystarted to publicize thenames and positionsoftheseparticipants on July11, 2022. The Board
of Supervisors reviewed the participants and published the Review Opinions and Disclosure Statement by the Board of Supervisors on
the List of Initial Incentive Participants in the 2022 Stock Option Incentive Plan.

On July 26, 2022, the proposals mentioned above were approved on the 1st extraordinary general meeting of 2022. The Incentive Plan
2022 was approved. The Board of Directors were authorized to handle relevant matters regarding the Incentive Plan 2022. On July 27,
2022, the Company disclosed the Self-examination Report on the Trading of Shares by Insiders of the 2022 Goertek Inc. Stock Option
Incentive Plan.

On September 13, 2022, Goertek convened the 33rd meeting of the 5th Board of Directors and the 27th meeting of the 5th Board of
Supervisors. The Proposal of the Adjustment of Initial Incentive Participants and Number of Stock Options in the 2022 Stock Option
Incentive Plan and the Proposal on Granting Stock Options to the Participants were approved. The Board of Supervisors verified and
expressed the review opinions on matters related to the incentive plan. Independent Directors expressed their agreed opinions on
relevant matters independently. Beijing Tian Yuan Law Firm issued legal opinions correspondingly.

On September 21, 2022, Goertek completed the registration of the 2022Incentive Plan.

Stock options granted to Directors and senior management

 Applicable  Not applicable


TheAppraisal and incentive mechanism for senior management

The remuneration standard for senior management shall be formulated by the remuneration and assessment committee, and
implemented after approval by the Board of Directors.

2. Implementation of employee stock ownership plan

 Applicable  Not applicable

All valid employee stock ownership plans during the reporting period

Participants Number Total shares held Changes Shareholding Source of funds

percentage

Goertek Home No. 3
ESOP: part of Directors,
Supervisors, senior

management, key 1,600 0 None 0.00% self-raised

management personnel,
and key business
personnel
Goertek Home No. 4
ESOP: Directors
(excluding Independent

Directors), Supervisors, 4,000 2,190,100 None 0.06% n.a.

senior management, key
management personnel
and key business
personnel
Goertek Home No. 5
ESOP: Directors
(excluding Independent

Directors), Supervisors, 25 5,500,000 None 0.16% self-raised

senior management, key
management personnel
and key business
personnel
Goertek Home No. 6
ESOP: Directors
(excluding independent

directors), supervisors, 1,000 0 None 0.00% self-raised

senior management
personnel and key
business personnel

Total shares held of Directors, Supervisors and senior management in ESOPs during the reporting period

Number of shares held at Number of shares held at Shareholding

Name Position the beginning of the the end of the reporting percentage

reporting period period

Duan Huilu, Feng

Jianliang, Xu Xiaofeng,

Wei Wenbin, Gao

Xiaoguang, Liu Chunfa, Directors, Supervisors, 3,289,000 3,039,000 0.09%
Jiang Hongzhai, Jia senior management

Jun’an, Feng Pengbo, Yu

Dachao, Yoshinaga

Kazuyoshi, Li Yongzhi,

Li Youbo, Zhu Shengbo

Changes ofAsset Management Agency during the reporting period

 Applicable  Not applicable

Changes in shareholders' equity caused by shares disposal of the participants and other reasons during the reporting period

 Applicable  Not applicable

During the reporting period, the Company, after expiration of the lock-up period of Goertek's Home No. 4 ESOP and Home No. 5
ESOP, reduced part of its shares in accordance with relevant regulations. By the end of the reporting period, Goertek's Home No. 3
ESOP has expired and the liquidation has been completed. Goertek's Home No. 4 ESOP held 2.1901 million shares, accounting for
0.06% of total shares, while the Home No. 5 ESOP held 5.5 million shares, accounting for 0.16% of total share capital.

Exercise of shareholders' rights during the reporting period

During the reporting period, the ESOPs exercised the shareholders' rights to participate in cash dividend of2021, but did not participate
in voting of the general meeting of shareholders or exercise other shareholders' rights.

Other relevant situations and descriptions related to ESOPs during the reporting period

 Applicable  Not applicable

Changes in members of the Management Committee of the ESOPs

 Applicable  Not applicable

Financial impacts of the ESOPs during the reporting period and relevant accounting treatment

 Applicable  Not applicable

In accordance with the Accounting Standard for Business Enterprises No.11 - Share-based Payments: if an equity-settled share-based
payment in exchange for services received from employees could not exercise until the completion of services for a vesting period, or
until the achievement of a specified performance condition, Goertek at each balance sheet date during the vesting period recognizes
the services received for the current period as related costs or expenses, and capital surplus, at amount equal to the fair value of the
equity instruments at the grant date, based on the best estimate of the number of equity instruments expected to exercise. In 2022, the
amortized expenses of Goertek’s Home No. 4 ESOP, Home No. 5 ESOP and Home No. 6 ESOP were RMB 138.6938 million, RMB
120.1858 million and RMB 8.4695 million respectively, which were recognized as related expenses and capital surplus.

Termination of ESOP during the reporting period

 Applicable  Not applicable

On January 15, 2022, the Company published the Announcement on Self-termination of the Expiration of the Home No. 3 ESOP, and
the Home No. 3 ESOP expired on January 15, 2022 and was automatically terminated.

Other explanations:
None
3. Other employee incentive measures
 Applicable  Not applicable

XII. Construction and implementation of the Company’s Internal Control System During the
Reporting Period

1. Construction and implementation of internal control

During the reporting period, in order to ensure the development of business activities and the realization of Goertek's strategic goals,
Goertek attached great importance to the construction of internal control system. We gradually established a basic compliance, sound
and effective internal control system covering all aspects of operation and management in accordance with the industry and asset
structure characteristics.
(1) Internal supervision

The Company has established the Internal Audit System, and has set up an independent internal audit department, which is responsible
for internal audit work, the audit and efficiency supervision of financial revenue, expenditure, the implementation of financial system,
the Company’s rules and regulations. The internal audit department also responsible for making proposals on the improvement of the
Company's internal control system.


Under the direct leadership of the Audit Committee, the audit department independently carries out internal audit and supervision，
supervisingtheoperation and management, financial condition andinternal controlimplementation oftheCompanyand itssubsidiaries.
Besides, the audit department issues independent auditor’s opinions, and regularly reports summaries and working plans to the Audit
Committee.
(2) Risk assessment

In combination with characteristics of the industry and actual operating status, the Company timely assesses internal and external risks
such as environmental risk, business risk and financial risk, weighs the risk and return according to the results of risk analysis and risk
tolerance, determines strategies, and practically makes the risk controllable.

(3) Control activities

The Company constantly implements the workings of internal control in all kinds of business processes, conducts various internal
controls, avoidsthemereformalityofinternalpoliciesand regulations, and improvestheeffectiveness andsoundnessofinternal control.
(4) Information disclosure

The Company formulated the Information Disclosure Policy, the Accountability System Regarding Major Errors in the Annual Report
Information Disclosure and the Policy on Management of the Personnel with Inside Information. According to the requirements of
relevant laws and regulations, the Policy on Management of the Personnel with Inside Information has been revised in time, which has
detailed the scope of inside information and related personnel, and the administrative measures on registration of personnel with inside
information in material matters. The Company's information disclosure in 2022 complied with the relevant laws and regulations of the
regulatory authorities and the provisions of the above-mentioned control system.

2. Details of material defects of internal control detected during the Reporting Period

 Yes  No

XIII. Management and controls of subsidiaries during the Reporting Period

Not applicable

XIV. Self-assessment Report on Internal Control orAuditor’s Report on Internal Control

1. Self-assessment on internal control

Disclosure date of the Internal April 18, 2023

Control Self-assessment Report

Disclosure index of the Internal The Goertek Inc. Self-assessment Report on Internal Control of 2022 Disclosed on

Control Self-assessment Report www.cninfo.com.cn on April 18, 2023

Proportion of the total assets of

entities included in the assessment

scope to the total assets of the 100.00%
Company’s consolidated financial
statements

Proportion of the total revenue of

entities included in the assessment

scope to the total revenue of the 100.00%
Company’s consolidated financial
statements

Defect Identification Standard

Category Financial report Non-financial report

The qualitative standard of the assessment of internal The qualitative standard of the
control defects in financial reporting are as follows: assessment of internal control defects in
Qualitative criteria Signs of material defects in financial reporting non-financial reporting determined by
include: Goertek are as follows: The
identificationofdefects innon-financial


(1) Fraud of directors, supervisors and senior report is mainly determined by the
management on the financial report; impact ofdefects on the effectiveness of
(2) Corrections of previously disclosed financial businessprocessesand thepossibilityof
reports; occurrence. If the possibility of defect
(3) Material misstatement of current period financial occurrence is low, and the defect will
statements identified by certified public accountant reduce the efficiency and effectiveness
but not identified by the Company’s internal control; of work, or increase the uncertainty of
the effectiveness, or make it deviate
(4) Ineffective supervision on the financial statements from the expected goal, it is a general
by the audit committee and the internal audit defect. If the possibility of defect
department. occurrence is relatively high, and the
Signs of important defects in financial reporting defect will significantly reduce the
include: efficiency or effectiveness of work, or
(1) Failure to select and apply accounting policies in significantly increase the uncertainty of
accordance with Generally Accepted Accounting the effectiveness, or make it
Principles; significantly deviate from the expected
(2) No anti-fraud procedures and control measures goal, it is an important defect. If the
have been established; possibility of defect occurrence is high,
(3) No corresponding control mechanism has been and the defect will seriously reduce the
established or implemented for the accounting efficiency or effectiveness of work, or
treatment of unconventional or special transactions, seriously increase the uncertainty of the
and there is no corresponding compensatory control; effectiveness, or make it seriously
(4) Oneor moredefects is or areexistingin thecontrol deviate from the expected goal, it is a
of the financial reporting process, that the prepared material defect

financial statements cannot be reasonably guaranteed

to be true and complete.

General defects: other internal control defects.

The quantitative standard of the assessment of

internal control defects in financial reporting are as

follows:

(1) If one of the following conditions is met, it may

be recognized as a material defect:

Item Impact of defects

Potential ≥ 5%, with an amount ≥ RMB 10

misstatement million

of total profit

Potential The quantitative standard of the

misstatement ≥ 1% assessment of internal control defects
Quantitative criteria of total assets in non-financial reporting is in

accordance with the quantitative

Potential standard of defects in financial

misstatement ≥ 1% reporting.

of revenue

(2) If one of the following conditions is met, it may

be recognized as an important defect:

Item Impact of defects

Potential 3%≤misstatement <5%

misstatement of

total profit

Potential 0.5≤misstatement <1%

misstatement of


total assets

Potential 0.5≤misstatement <1%

misstatement of

revenue

(3) If one of the following conditions is met, it may

be recognized as a minor defect:

Item Impact of defects

Potential <3% of total profit

misstatement of

total profit

Potential <0.5% of total assets

misstatement of

total assets

Potential <0.5% of total revenues

misstatement of

revenue

Number of material defects in 0
financial reporting

Number of material defects in non- 0
financial reporting

Number of important defects in 0
financial reporting

Number of important defects in 0
non-financial reporting
2.Auditor’s Report on internal control
 Applicable  Not applicable

The opinion paragraph in the auditor’s report on internal control

We believe that Goertek Inc. maintained effective internal control over accounting reports in all material aspects in accordance with
the Basic Standards for Internal Corporate Control and relevant provisions on December 31, 2022.

Disclosure of theAuditor’s Report on Internal Control Disclosed

Disclosure date of theAuditor’s Report on Internal Control April 18, 2023

TheAudit Report on Internal Control of Goertek Inc. (Zhong Xi
Disclosure index of theAuditor’s Report on Internal Control Special Audit No. 2023T00212) published on

www.cninfo.com.cn on April 18, 2023

Type of internal control auditor’s report opinions standard unqualified opinion

Material defects found in non-financial reporting No

Whether the accounting firm issued a modified auditor’s report on internal controls

 Yes  No

Whether theAuditor’s Report on internal control is consistent with the Self-assessment Report of the board of directors

 Yes  No

XV. Rectification of Problems Identified by Self-examination in the SpecialActions on

Governance of Listed Companies
Not applicable
Not applicable


Section V Environmental and social responsibilities

I. Major Environmental Issues

Whether the listed company or its subsidiaries are entities with pollutant discharges announced by local environmental protection

authorities
 Yes  No

Policies and industry standards related to environmental protection

All Goertek Inc.'s projects are encouraged according to the Decision of the National Development and Reform Commission on
AmendingtheCatalogueofIndustrial StructureAdjustment (2019 version) and arein linewith national industrialdevelopment policies;
and the projects meet the requirements of the Opinions of the People's Government of Shandong Province on the Implementation of
the "Three Lines and One List” Ecological Zoning Management Approach. The pollutants are discharged in strict accordance with the
requirements of the environmental impact assessment standard and the pollution discharge standard.

All projects of Yili Precision Manufacturing Co., Ltd. are carried out in line with national industrial development policies according to
the Decision of the National Development and Reform Commission on Amending the Catalogue of Industrial Structure Adjustment
(2019 version); and the projects meet the requirements of the Opinions of the People's Government of Shandong Province on the
Implementation of the "Three Lines and One List” Ecological Zoning Management Approach. The pollutants are discharged in strict
accordance with the requirements of the environmental impact assessment standard and the pollution discharge standard.

Administrative licenses for environmental protection

Goertek Inc. obtained the registration receipt of the pollution discharge permit in accordance with the Measures for the Management
of Pollution Discharge Permits (Trial) (Revised in 2019). The registration number is 91370700729253432M004Y, and the certificate
is valid from November 12, 2020 to November 11, 2025.

Yili Precision Manufacturing Co., Ltd. has applied for a pollution discharge permit as required. The certificate number is
913707840744048096001V, and the certificate is valid from July 7, 2022 to July 6, 2027.

Industry emission standards and the details of pollutant emissions involved in production and operation activities

Types of Name of Enforced

Name of the major major Number of Locations standards Total Total Discharge
Company or pollutants pollutants Type of discharging of Concentration/intensity of discharge approved exceeding
subsidiaries and and particular discharge ports discharging of pollutant discharged pollutant volume discharge the

particular pollutants ports discharge volume standard
pollutants

Goertek Inc. Solid waste Hazardous Indirect Not Not Not applicable Not Not Not None

waste discharge applicable applicable applicable applicable applicable

COD: COD: COD:

Yili Precision COD; Intermittent COD: 50mg/L; 500mg/L; 20.07t/a; 26.862t/a;

Manufacturing Wastewater ammonia discharge 1 In the plant ammonia nitrogen: ammonia ammonia ammonia None

Co., Ltd. nitrogen 5mg/L nitrogen: nitrogen: nitrogen:

45mg/L 1.963t/a 2.6029t/a

Treatment of pollutants

In accordancewith TheEnvironmental Impact Assessment and Approval, theCompanyestablishessupportingmeasures for solidwaste
storage, disposal and comprehensive utilization, along with leakage prevention and seepage prevention measures, and ensures the
normal operation of all the above measures.

In accordance with The Environmental Impact Assessment and Approval, Yili Precision Manufacturing Co., Ltd. constructs supporting
treatment facilities for water and gas waste, takes measures of noise reduction, storage, disposal and comprehensive utilization of solid
waste, and leakage and seepage prevention, and ensures the normal operation of all above measures.

Environmental self-monitoring programme

The Company entrusts third-party monitoring organizations to monitor the environmental factors of the plant area and issue an
inspection report every year.

Yili Precision Manufacturing Co., Ltd. has installed online equipment for monitoring COD, ammonia nitrogen, flow rate and PH value
at the main wastewater discharge outlet, which is networked with the local department of environmental protection authorities. A third
party shall be entrusted to conduct environmental self-monitoring of waste water, waste gas, groundwater and soil pollutants in strict
accordance with the requirements of discharge permit, and related information shall be disclosed as required.


Emergency response plan for unexpected environmental events

Goertek, combined with The National Environmental Emergency Response Plan and The Guidelines to Develop Emergency Response
Plan for Environmental Pollution Accidents, has formulated The Environmental Emergency Response Plan based on various risk
factors, and has reported the plan to the High-tech Branch of Weifang Municipal Ecology and Environment Bureau for recording (No.
370708-2022-036-L). Goertek also organizes relevant training and drills on aregular basis, in ordertoimprove the emergencyresponse
ability of employees and achieve continuous improvement.

In view of various risk factors, Yili Precision Manufacturing Co., Ltd. refers to The National Environmental Emergency Plan and The
Guidelines to Develop Emergency Response Plan for Environmental Pollution Accidents, formulates the Yili Environmental
Emergency Plan, and puts it on record in Anqiu Branch of Weifang Municipal Ecology and Environment Bureau (record No. 370784-
2020-004-H). Relevant trainingand drillsareorganized on aregular basisto further improveemployees’abilityto deal with emergency
events and achieve continuous improvement.

Investment in environmental governance and protection and the payment of environmental protection tax

The Company and its subsidiaries pay environmental protection tax as required, with a total of RMB 77,095.67 in 2022.

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

 Applicable  Not applicable

The Company adheres to the energy management policy of ''compliant use of energy, improved efficiency, reduce emission, full
participation of all staffs and green development'', and incorporates this policy into its product manufacturing chain. By taking the
establishment of energy management system as a scientific management basis, the Company optimized its organizational structure of
management, improved systems and processes, and emphasized the focus of management, so as to tap the potential for energy saving,
actively improve the overall level of energy efficiency, and integrate emission reduction and green development targets into its internal
operation. It was awarded the honor of "National Green Factory" in 2022.

The Company strived to promote clean energy applications, increased the proportion of green energy in all energy sources. It has
accumulativelyreduced emission of 38,601.01 tCO2e byintroducing the distributed photovoltaic power generation projects. It actively
carried out energy-saving publicity activities and dug deep into energy-saving technological transformation projects. Through the
constructionofhigh-efficiencyrefrigeration roomsand thepromotion ofenergy-savingtechnologiessuch asvacuumpumps, frequency
conversion, and automatic control, the Company managed to improve energy utilization efficiency and reduce emissions by 26,164
tCO2e.

Administrative penalties received for environmental issues during the reporting period

None

Other environmental information that should be disclosed

None

Other information related to environmental protection

None
II. Performance of Social Responsibility

During the reporting period, while the Company was committed to achieving its own development, it has also performed well in the
protection of the rights and interests of shareholders, creditors, employees, suppliers, customers and consumers, as well as in
environmental protection and sustainable development, public relations and social public welfare undertakings. For details, see the
Corporate Social Responsibility Report of 2022 released on "www.cninfo.com.cn". on April 18, 2023.

III. Consolidate and Carry Forward theAchievements of PovertyAlleviation and Rural

Revitalization

The Company has not carried out such work during the reporting period.


Section VI Important Matters

I. Fulfilment of Commitments

1. The commitments of the Company's actual controllers, shareholders, related parties, purchasers and companies that have been completely fulfilled during
the reporting period or remain valid by the end of the reporting period.

 Applicable  Not applicable

Commitment matters Commitment party Commitment type Commitment content Commitment Commitment Performance of
time period commitments

Commitments made

during the joint-stock Not applicable

reform
Commitments made in

the report of acquisition Not applicable

or in the report of equity

changes

Commitments made Not applicable

during asset restructuring

Mr. Jiang Bin, the actual Mr. Jiang Bin and Mr. Jiang Long promise that the

Commitments made controller, and Mr. Jiang Commitment to restricted Company shares transferred each year during their tenure October 8, Long-term

during initial public long, shareholder and the stock will not exceed 25% of the total company shares held by 2007 standing Strictly fulfilled
offering or refinancing related party of the actual them, and the shares will not be transferred within six

controller months after their resignation in future

At present, there is no competition between the main

Mr. Jiang Bin and Ms. Hu businesses of Goertek Inc. and the commitment parties

Shuangmei, the actual (company and persons) in this clause or other entities

Commitments made controllers of the controlled by the commitment parties (company and

during initial public Company, Goertek Group Horizontal competition persons). In future, in order to fundamentally avoid the October 8, Long-term Strictly fulfilled
offering or refinancing Co., Ltd and Mr. Jiang related commitment possibility of competing with Goertek Inc., the 2007 standing

Long, the shareholders commitment parties (company and persons) promise as

who hold more than 5% follows: 1) The commitment parties (company and

of the Company shares persons) will not engage in the same or similar business

as Goertek Inc. in order to avoid direct or indirect


competition to the production and operation of Goertek

Inc. Efforts will be made to urge other entities controlled

by the commitment parties (company and persons) not to

directly or indirectly participate in or carry out any

business activity that compete with the production and

operation of Goertek Inc. 2) If the commitment parties

(company and persons) and the other entities controlled

by the commitment parties (company and persons) except

Goertek Inc., have competitive businesses of the same

kind with Goertek Inc., which may bring unfair impacts

on Goertek Inc. in terms of market share, business

opportunities and resource allocation, etc. The

commitment parties (company and persons) and other

entities controlled by the commitment parties (company

and persons) except Goertek Inc. will voluntarily give up

business competition with Goertek Inc. 3) The

commitment parties (company and persons) undertake to

give Goertek Inc. the pre-emption right on the purchase of

any assets and business to be sold, and will do its best to

ensure that the price of the transaction is determined on

the basis of fair, reasonable and normal commercial

transactions with independent third parties. 4) The

commitment parties (company and persons) will not be

restricted from engaging in or continuing to engage in

existing production business, in particular to provide

Goertek Inc. with relevant materials and services needed

for its operation. Since the date of issuance of this letter

of commitment, the commitment parties (company and

persons) undertake to indemnify Goertek Inc. for any loss

or expense suffered or incurred in violation of any of the

terms of this commitment.

Stock option incentive plan of 2021: The Company From the

Equity incentive undertakes not to provide loans or any other form of April 16, issuance date

commitments The Company Others commitments financial assistance to any participants to obtain relevant 2021 of the Strictly fulfilled
rights and interests under this incentive plan, including commitment to

guarantee for their loans the completion


of the

implementation

of the stock

option

incentive plan

of 2021

From the

issuance date

of the

Stock option incentive plan of 2022: The Company commitment to

Equity incentive undertakes not to provide loans or any other form of the completion

commitments The Company Others commitments financial assistance to any participants to obtain relevant July 8, 2022 of the Strictly fulfilled
rights and interests under this incentive plan, including implementation

guarantee for their loans of the stock

option

incentive plan

of 2022

From March 5, 2020 to the end of the use of the funds From March 5,

raised from convertible corporate bonds issuing or within 2020 to the end

36 months after the funds raised are in place, the of the use of

Other commitments made The Company Others commitments Company will no longer increase the funds usage in March 5, funds raised or Strictly fulfilled
to minority shareholders financial business (including capital investment, 2020 within 36

borrowing, guarantee and other forms of capital months after

investment). The Company will not use the funds raised the funds raised

directly or in disguise for financial business are in place

During the time All raised funds
The Company promises not to carry out venture capital period of have been

investment during the period of temporary working temporary returned on

capital supplement with raised funds, and undertakes to liquidity November 4,

Other commitments made The Company Others commitments use these raised funds only for production and operation November 8, replenishment 2022, thus the
to minority shareholders related to the main business. The Company shall not 2021 with raised commitment

directly or indirectly use raised funds for the subscription funds starting has been

or placement of stocks, or for the trading of stocks and from completely

their derivatives, convertible corporate bonds, etc. November 8, fulfilled

2021

Other commitments made The Company Others commitments The Company's temporary use of some idle raised funds November During the time Strictly fulfilled


to minority shareholders to supplement the working capital shall be used only for 21, 2022 period of

production and operation related to the main business. temporary

The Company shall not directly or indirectly use raised liquidity

funds for the subscription or placement of new shares, or replenishment

for the trading of shares and their derivatives, convertible with raised

bonds, etc. The Company undertakes that temporarily use funds starting

of idle raised funds to supplement working capital shall from

be for daily production and operation activities only. The November 21,

Company will not use idle raised funds to directly or 2022

indirectly make high-risk investments such as securities

investment and derivatives trading.

Mr. Jia Jun'an, Vice Not to reduce his holdings of company shares or engaging For the next 6 Completely

Other commitments made President, Secretary of Commitment to restricted in insider trading or short-swing trading within 6 months April 6, 2022 consecutive fulfilled on

to minority shareholders the Board stock fromApril 6, 2022, nor to buy or sell company stocks months from October 5, 2022
during sensitive time periods. April 6, 2022

Mr. Jia Jun'an, Vice Not to reduce his holdings of company shares or engaging For the next 6 Completely

Other commitments made President, Secretary of Commitment to restricted in insider trading or short-swing trading within 6 months April 15, consecutive fulfilled on

to minority shareholders the Board stock fromApril 15, 2022, nor to buy or sell company stocks 2022 months from October 14,

during sensitive time periods. April 15, 2022 2022

Not to reduce his holdings of company shares or engaging For the next 6

Other commitments made Mr. Jia Jun'an, Vice Commitment to restricted in insider trading or short-swing trading within 6 months September consecutive Completely

to minority shareholders President, Secretary of stock from September 23, 2022, nor to buy or sell company 23, 2022 months from fulfilled on

the Board stocks during sensitive time periods. September 23, March 22, 2023
2022

Carry out in accordance with relevant laws and

regulations and relevant provisions of Shenzhen Stock

Exchange, not reduce his shareholding of the Company

during the shareholding increase period and within the Within 3 Completely

Other commitments made Mr. Jia Jun'an, Vice Commitment to restricted legal lock-up period, and complete the shareholding September months from fulfilled on

to minority shareholders President, Secretary of stock increase plan within the implementation period. The 28, 2022 September 28, December 27,
the Board operation of shareholding increase shall strictly abide by 2022 2022

the relevant regulations of the China Securities

Regulatory Commission and the Shenzhen Stock

Exchange and not engage in trading, trading of shares

during sensitive periods, and short-swing trading.

Whether the
commitments are fulfilled Yes
on time
If the commitments are
not fulfilled within the
time limit, specific

reasons for the failure of Not applicable

complying and the work
plan for the next step
shall be explained in
details


2. If the Company's assets or projects have profit forecasts and the reporting period is still in the profit
forecasting period, the Company shall make statement on whether the assets or projects reach the original
profit forecast and provide relevant reasons

 Applicable  Not applicable

II. Non-operational Occupation of Funds by Controlling Shareholders and Other Related

Parties to Listed Companies
 Applicable  Not applicable

During the reporting period of the Company, there is no non-operational occupation of funds by controlling shareholders or other

related parties to the Company.

III. External Guarantee in Violation of Regulations

 Applicable  Not applicable

The Company has no violation of external guarantee during the reporting period.

IV. Explanation made by the Board of Directors about the modified audit opinion for the

latest period
 Applicable  Not applicable

V. Explanation of theAccounting Firm's “ModifiedAuditor’s Report” by the Board of

Directors, the Board of Supervisors and Independent Directors (ifAny) During the Reporting
Period
 Applicable  Not applicable

VI. Explanation of changes inAccounting Policies,Accounting Estimates or Correction of

MajorAccounting Errors Compared with the Financial Report of Previous Year

 Applicable  Not applicable
1. Changes in accounting policy
TheMinistryofFinanceissuedtheInterpretationNo.15oftheAccountingStandardsforBusinessEnterprises(FinanceandAccounting
[2021] No. 35) in 2021, and the Interpretation No. 16 of the Accounting Standards for Business Enterprises (Finance and Accounting
[2022] No. 31) in 2022. The above changes in accounting policy have no significant impact on the financial statements of the Group
and the Company.

2. There is no change in accounting estimates during the reporting period.

3. There is no correction of major accounting errors during the reporting period.

VII. Explanation of Changes in the Scope of the Consolidated Statements Compared with

Previous Year's Financial Report
 Applicable  Not applicable

During the reporting period, the Companyestablished 8 subsidiaries: Goertek Optical Technology(Qingdao) Co., Ltd, Goertek Optical
Technology (Shanghai) Co., Ltd, Qingdao Resonance Venture Capital Management Co., Ltd., Qingdao Resonance Phase I Venture
Capital Fund Partnership (Limited Partnership), Weifang Goertek Electronics Co., Ltd., Qingdao Goertek Horizons Technology Co.,
Ltd, Weifang High-tech Zone Goertek Education Center, and Goertek Microelectronics Vietnam Company Limited. During the
reporting period, the Company disposed of 2 subsidiaries: Shenzhen Mototek Smart Technology Co., Ltd. and Qingdao Resonance
Venture Capital Management Co., Ltd.

VIII.Appointment and Dismissal ofAccounting Firms
Accounting firm currently appointed

Name of the domestic accounting firm Zhongxi Certified PublicAccountants (special general

partnership)

Remuneration of the domestic accounting firm (unit: RMB 10,000) 220

Consecutive audit service years of the domestic accounting firm 4

Name of certified public accountant of the domestic accounting Du Yeqin, Zhang Shuli

firm

Consecutive audit service years of certified public accountant of Du Yeqin has been in service for 3 years on end, and Zhang

the domestic accounting firm Shuli for 1 year

Name of overseas accounting firms (if any) None

Remuneration of overseas accounting firms (unit: RMB 10,000) (if 0
any)

Consecutive audit service years of overseas accounting firms (if None

any)

Names of certified public accountants of the overseas accounting None

firms

Consecutive audit service years of certified public accountants of None

overseas accounting firms (if any)

Whether to reappoint accounting firm in current period

 Yes  No

Employment of internal control audit accounting firms, financial consultants or sponsors

 Applicable  Not applicable

During the reporting period, the Company engaged Zhongxi Certified Public Accountants (special general partnership) as the in ternal
control audit accounting firm and paid the internal control audit fee of RMB 800,000 during the period.

IX. DelistingAfter the Disclosure ofAnnual Report

 Applicable  Not applicable

X. Bankruptcy or Reorganization Related Events

 Applicable  Not applicable

No bankruptcy or reorganization related events occurred during the reporting period.

XI. Significant Lawsuit andArbitration Events
 Applicable  Not applicable

No significant litigation or arbitration events occurred during the reporting period.

XII. Punishment and Rectification
 Applicable  Not applicable

No punishment or rectification occurred during the reporting period.

XIII. Integrity Issues of the Company, Controlling Shareholders andActual Controllers

 Applicable  Not applicable

XIV. SignificantAffiliated Transactions

1.Affiliated transactions related to daily operations

 Applicable  Not applicable

No significant affiliated transactions related to daily operations occurred during the reporting period.

2.Affiliated transactions involving the acquisition or sale of assets or equity

 Applicable  Not applicable

No significant affiliated transactions involving the acquisition or sale of assets or equity occurred during the reporting period.

3.Affiliated transactions of joint external investment

 Applicable  Not applicable

No significant affiliated transactions of joint external investment occurred during the reporting period.

4.Affiliated transactions of credits and liabilities

 Applicable  Not applicable

No significant affiliated transactions of credits and liabilities occurred during the reporting period.

5. Business with affiliated financial company

 Applicable  Not applicable

There was no deposit, loan, credit granting or other financial business between the Company and the affiliated financial company and
its related parties.

6. Business between the related parties and the financial company controlled by the Company

 Applicable  Not applicable

There was not any financial company controlled by the Company.

7. Other significant affiliated transactions
 Applicable  Not applicable

No other significant affiliated transactions occurred during the reporting period.

XV. Significant Contracts and Executions
1. Trusteeship, contracting and leasing
(1) Trusteeship
 Applicable  Not applicable

No trusteeship occurred during the reporting period.

(2) Contracting
 Applicable  Not applicable

No contracting occurred during the reporting period.

(3) Leasing
 Applicable  Not applicable

No significant leasing occurred during the reporting period.

2. Significant guarantees
 Applicable  Not applicable

Unit: RMB 10,000

External guarantee of the Company and its subsidiaries (excluding guarantees for subsidiaries)

Disclosure Whether
Name of date of the The amount Actual Actual Guarantee Collateral Counter- Guarantee Whether the guarantee
guaranteed amount limit of the occurrence amount type (if any) guarantee (if period guarantee is for related
party limit of the guarantee date guaranteed any) complete parties
guarantee

Not
applicable

The Company's guarantee to its subsidiaries

Disclosure Whether
Name of date of the The amount Actual Actual Guarantee Collateral Counter- Guarantee Whether the guarantee
guaranteed amount limit of the occurrence amount type (if any) guarantee (if period guarantee is for related
party limit of the guarantee date guaranteed any) complete parties
guarantee

Goertek March 27, September Joint

(HongKong) 2021 208,938.00 10, 2021 6,964.60 liability 1 year Yes No

Co.,Limited guarantee

Goertek March 27, October 20, Joint

(HongKong) 2021 208,938.00 2021 6,964.60 liability 1 year Yes No

Co.,Limited guarantee

Goertek March 30, September Joint

(HongKong) 2022 208,938.00 10, 2022 6,964.60 liability 1 year No No

Co.,Limited guarantee

Goertek March 30, October 20, Joint

(HongKong) 2022 208,938.00 2022 6,964.60 liability 1 year No No

Co.,Limited guarantee

Goertek April 20, January 16, Joint

(HongKong) 2019 208,938.00 2020 79,379.03 liability 3 years Yes No

Co.,Limited guarantee

Goertek April 20, January 17, Joint

(HongKong) 2019 208,938.00 2020 3,499.71 liability 3 years Yes No

Co.,Limited guarantee

Goertek April 20, February 24, Joint

(HongKong) 2019 208,938.00 2020 49,448.66 liability 3 years Yes No

Co.,Limited guarantee

Goertek March 27, August 20, Joint

(HongKong) 2021 208,938.00 2021 17,411.50 liability 1 year Yes No

Co.,Limited guarantee

Goertek March 30, August 20, Joint

(HongKong) 2022 208,938.00 2022 17,411.50 liability 1 year Yes No

Co.,Limited guarantee

Goertek March 30, May 17, Joint

(HongKong) 2022 208,938.00 2022 20,545.57 liability 1 year No No

Co.,Limited guarantee

Goertek March 30, May 24, Joint

(HongKong) 2022 208,938.00 2022 14,277.43 liability 1 year No No

Co.,Limited guarantee

Goertek

Technology March 27, Joint

Vina 2021 156,500.00 June 6, 2021 2,154.46 liability 1 year Yes No

Company guarantee

Limited

Goertek

Technology March 30, June 22, Joint

Vina 2022 65,000.00 2022 1,173.20 liability 1 year No No

Company guarantee

Limited
Goertek

Technology March 27, Joint

Vina 2021 156,500.00 June 6, 2021 230.00 liability 1 year Yes No

Company guarantee

Limited
Goertek

Technology March 30, June 22, Joint

Vina 2022 65,000.00 2022 108.00 liability 1 year No No

Company guarantee

Limited
Goertek

Technology March 27, July 30, Joint

Vina 2021 156,500.00 2021 3,516.54 liability 1 year Yes No

Company guarantee

Limited
Goertek

Technology March 27, October 18, Joint

Vina 2021 156,500.00 2021 318.26 liability 1 year Yes No

Company guarantee

Limited
Goertek

Technology March 27, August 1, Joint

Vina 2021 156,500.00 2021 270.77 liability 1 year Yes No

Company guarantee

Limited
Goertek

Technology March 27, June 29, Joint

Vina 2021 156,500.00 2021 571.38 liability 1 year Yes No

Company guarantee

Limited

Goertek March 27, November Joint

Microelectr 2021 2,640.00 19, 2021 3.45 liability 1 year Yes No

onics Inc. guarantee

Goertek March 30, November Joint

Microelectr 2022 2,089.38 18, 2022 2.77 liability 1 year No No

onics Inc. guarantee

Weifang

Goertek March 27, March 27, Joint

Microelectr 2021 650.00 2021 7.80 liability 1 year Yes No

onics Co., guarantee

Ltd.
Weifang

Goertek March 30, May 12, Joint

Microelectr 2022 300.00 2022 20.06 liability 1 year No No

onics Co., guarantee

Ltd.
Rongcheng

Goertek March 30, May 12, Joint

Microelectr 2022 300.00 2022 liability 1 year No No

onics Co., guarantee

Ltd.

Goertek March 27, 1,500.00 June 10, 199.88 Joint 1 year Yes No


Intelligence 2021 2021 liability

Technology guarantee

Co., Ltd.

Total amount of guarantee Total amount of actual

limit to subsidiaries 489,742.38 guarantee to subsidiaries 238, 408.37
approved during the occurred during the

reporting period (B1) reporting period (B2)

Total amount of guarantee Total balance of actual

limit to subsidiaries 1,074,768.78 guarantee to subsidiaries 50, 056.23
approved at the end of the occurred at the end of the

reporting period (B3) reporting period (B4)

The guarantee between subsidiaries

Disclosure Whether
Name of date of the The amount Actual Actual Guarantee Collateral Counter- Guarantee Whether the guarantee
guaranteed amount limit of the occurrence amount type (if any) guarantee (if period guarantee is for related
party limit of the guarantee date guaranteed any) complete parties
guarantee

Not
applicable

Total amount of company guarantee (namely the sum of the previous three items)

Total amount of guarantee Total amount of actual

limit approved during the external guarantee

reporting period 489,742.38 occurred during the 238, 408.37
(A1+B1+C1) reporting period

(A2+B2+C2)

Total amount of external Total balance of actual

guarantee limit approved external guarantee

at the end of the reporting 1,074,768.78 occurred at the end of the 50, 056.23
period (A3+B3+C3) reporting period

(A4+B4+C4)

The proportion of the total amount of actual

guarantee (i.e.A4+B4+C4) to the net assets of the 1.70%
Company
Including:

Balance of guarantees for shareholders, actual 0
controllers and their affiliate parties (D)

Balance of guarantee provided directly or indirectly

to the parties with an asset-liability ratio of more than 48,752.20
70% (E)

Amount of total guarantees exceeding 50% of net 0
assets (F)

Total amount of the above three kinds of guarantees 48,752.20
(D+E+F)

Explanation of unexpired guarantee contracts for

which there are guarantee liabilities or there are

evidence showing the possibility of joint and several None

liability for repayment during the reporting period (if

any)

Description of external guarantees provided in None

violation of prescribed procedures (if any)

Specific description of complex guarantees
None


3. Management trust of cash assets

(1) Entrusted financial investment
 Applicable  Not applicable

No entrusted financial management occurred during the reporting period.

(2) Entrusted loans
 Applicable  Not applicable

No entrusted loans occurred during the reporting period.

4. Other major contracts
 Applicable  Not applicable

No other significant contracts occurred during the reporting period.

XVI. Explanation of Other Significant Matters

 Applicable  Not applicable

In accordance with the requirements of laws and regulations, the Company has disclosed the significant matters that occurred during
thereportingperiodonhttp://www.cninfo.com.cn, SecuritiesTimes, ChinaSecuritiesJournal, Shanghai SecuritiesNewsand Securities
Daily. Other than that, no other significant matters occurred.

XVII. Significant Matters Occurred to Subsidiaries of the Company

 Applicable  Not applicable

On November 10, 2020, the Company held the 12th meeting of the 5th board of directors and the 10th meeting of the 5th board of
supervisors, which approved The Proposal of Planning the Spin-off of the Holding Subsidiary. It agreed to plan and prepare the spin-
off of the Company's holding subsidiary Goertek Microelectronics Co., Ltd. For details, please see The Informative Announcement of
Goertek Inc. on Planning and Preparing the Spin-off of Holding Subsidiary issued on November 11, 2020.

The 17th meeting of the 5th board of directors and the 12th meeting of the 5th board of supervisors were held on March 1, 2021 to
approveTheProposal on theIntroduction ofExternal InvestorsoftheHoldingSubsidiaryand AffiliateTransactions. It agreed to accept
a total of RMB 2,149.987749 million capital investment from 15 external investors, including Qingdao Microelectronics Innovation
Center Co., Ltd., Mr. Tang Wenbo, Gongqingcheng Chunlin Equity Investment Partnership(L.P.), Qingdao Henghuitai Industry
Development Fund Co., Ltd., andGoertek Group Co., Ltd., in exchange of10.4075% of Goermicro's equityafter above capital increase
and shareexpansion.Aftertheaboveinvestment, thepercentageofsharesofGoermicro heldbytheCompanywasdiluted from95.8773%
to 85.8989%, which did not change the accounting consolidation scope of the financial statements of the Company. Details can be
found in The Announcement of Goertek Inc. on the Introduction of External Investors of the Holding Subsidiary and Affiliate
Transactions issued on March 2, 2021.

On April 21, 2021, the Company held the 20th meeting of the 5th Board of Directors and the 15th meeting of the 5th Board of
Supervisors, which approved The Proposal on 'Plan for the Spin-off of Goertek Microelectronics Inc., a subsidiary of Goertek Inc., for
Listing on the Growth Enterprise Board' and other related proposals. Details can be found in related announcements published in China
Securities Journal, Securities Times, Shanghai Securities News, Securities Daily and http://www.cninfo.com.cnon April 22, 2021.

On November 8, 2021, the Company held the 24th meeting of the 5th Board of Directors and the 19th meeting of the 5th Board of
Supervisors, which approved The Proposal of 'Planning on the Spin-off of Goertek Microelectronics Inc. and Listing on the Growth
Enterprise Board of Shenzhen Stock Exchange (Revised)' and other related proposals. The above-mentioned proposals have been
reviewed and approved by the Company's first extraordinary general meeting of shareholders in 2021. Details can be found in related
announcements published in China Securities Journal, Securities Times, Shanghai Securities News, Securities Daily and
http://www.cninfo.com.cn on November 9, 2021 and November 26, 2021.

On December 28, 2021, Goermicro received The Notice of Acceptance of Application Documents for Initial Public Offering of Shares
and Listing on GEM of Goertek Microelectronics Inc. (Shenzhen Stock Exchange (2021) No. 549). In accordance with related
regulations, the Shenzhen Stock Exchange checked the application report and related application documents submitted by Goermicro
for initial public offering and listing on GEM, and decided to accept the application. Details can be found in The Informative

Announcement ofGoertek on The Acceptance of Shenzhen Stock Exchange of The Application Documents ofThe Spin-offof Goertek
Microelectronics Inc. and Listing on GEM issued by the Company on December 29, 2021.

According to the Announcement on the Results of the 74th Review Meeting of the GEM Listing Committee in 2022 issued by the
Shenzhen Stock Exchange on October 19, 2022, Goertek Microelectronics Inc. (IPO) meets the requirements for issuance, listing and
information disclosure.

On March 31, 2023, as the financial information recorded in the IPO application documents of Goertek Microelectronics Inc. had
expired, a supplementary submission was required. According to the relevant provisions of the Review Rules of Shenzhen Stock
Exchange for Stock Issuance and Listing, the review for issuance and listing review was suspended.


Section VII Changes in Shares and Information about Shareholders
I. Changes in Shares
1. Changes in shares

Unit: share

Before the change Increases or decreases (+, -) After the change

New Bonus Transferred

Number Percentage shares shares from Other Sub-total Number Percentage
reserves

I. Shares

Subject to 478,911,375 14.02% - - 414,250,361 12.11%
Selling 64,661,014 64,661,014

Restrictions
1. State
shareholding
2. Shares
held by
state-owned
corporates
3. Shares

held by - -

other 478,911,375 14.02% 64,661,014 64,661,014 414,250,361 12.11%
domestic
shareholders
Including:
held by
domestic
corporates

held by - -

domestic 478,911,375 14.02% 64,661,014 64,661,014 414,250,361 12.11%
individuals
4. Shares
held by
foreign
shareholders
Including:
held by
foreign
corporates
held by
foreign
individuals
II. Shares

Without 2,937,409,661 85.98% 68,743,178 68,743,178 3,006,152,839 87.89%
Restrictions
1. RMB

common 2,937,409,661 85.98% 68,743,178 68,743,178 3,006,152,839 87.89%
shares

2. Domestic
listed
foreign
shares
3. Overseas
listed
foreign
shares
4. Others
III. Total

Number of 3,416,321,036 100.00% 4,082,164 4,082,164 3,420,403,200 100.00%
Shares
Reasons for changes in shares
 Applicable  Not applicable

On June 10, 2022, the Company held the 30th meeting of the 5th Board of Directors and the 24th meeting of the 5th Board of
Supervisors, which approved the Proposal on the Exercise Conditions for the First Exercise Period of the Initial Grant of the 2021
Stock Option Incentive Plan. Grantees who meet the exercise conditions may exercise stock options during the first exercise period by
means of voluntary exercise. The actual exercise period is from June 24, 2022, to June 23, 2023. For details, please refer to the
Announcement of Goertek Inc. on the Adoption of a Voluntary Exercise Mode for the First Exercise Period of the Initial Grant of the
2021StockOption IncentivePlan,disclosedbytheCompanyonhttp://www.cninfo.com.cn, SecuritiesTimes, ChinaSecuritiesJournal,
Shanghai Securities News and Securities Daily. During the reporting period, the grantees accumulatively exercised 4,082,164 shares
during the first exercise period for the initial grant of 2021 stock option incentive plan.

Approval of changes in shares
 Applicable  Not applicable

On June 10, 2022, the Company held the 30th meeting of the 5th Board of Directors and the 24th meeting of the 5th Board of
Supervisors, which approved the Proposal on the Exercise Conditions for the First Exercise Period of the Initial Grant of the 2021
Stock Option Incentive Plan, among others. The Board of Directors held that the exercise conditions for the first exercise period of the
initial grant of the 2021 Stock Option Incentive Plan had been met. 503 grantees may exercise stock options during the first exercise
period by means of voluntary exercise.

Transfer of ownership change of shares

 Applicable  Not applicable

According to the 2021 Stock Option Incentive Plan of Goertek Inc. (Draft), the first exercise period of the initial grant is from June 24,
2022, to June 23, 2023.

The impact of share changes on the financial indicators such as basic earnings per share, diluted earnings per share and net assets per
share attributable to the Company's common shareholders in the latest year and the latest period

 Applicable  Not applicable

During the reporting period, the exercise of stock options by grantees under the 2021 Stock Option Incentive Plan correspondingly
affected basic earnings per share and diluted earnings per share, but did not have a significant impact.

Other content that the Company considers necessary or that the securities regulator requires to be disclosed

 Applicable  Not applicable
2. Changes in restricted shares
 Applicable  Not applicable

Unit: share

Starting number Increased in Closing number

Name of of restricted reporting Decreased in of restricted Type for Date of the removal
shareholder shares in period current period shares in restricted shares of restrictions

reporting period reporting period

Jiang Bin 280,115,554 64,567,500 215,548,054 Restricted shares January 1, 2022


of senior

executives

Restricted shares

Jiang Long 187,758,898 187,758,898 of senior January 1, 2022

executives

Restricted shares

Hu Shuangmei 16,200,000 16,200,000 of senior January 1, 2022

executives

Restricted shares

Sun Hongbin 6,667,150 422,384 7,089,534 of senior January 1, 2022

executives

Restricted shares

Duan Huilu 3,355,875 750,000 2,605,875 of senior January 1, 2022

executives

Restricted shares

Jia Jun'an 150,000 450,000 600,000 of senior January 1, 2022

executives

Restricted shares

Liu Chunfa 863,898 215,898 648,000 of senior January 1, 2022

executives

Total 495,111,375 872,384 65,533,398 430,450,361 -- --

II. Issuance and Listing of Securities

1. Securities issuance (excluding preference shares) during the reporting period

 Applicable  Not applicable

2. Description of changes in the total number of shares, the structure of shareholders, and the structure of
assets and liabilities
 Applicable  Not applicable

At the 30th meeting of the 5th Board of Directors and the 24th meeting of the 5th Board of Supervisors, the Company approved the
Proposal on the Exercise Conditions for the First Exercise Period of the Initial Grant of the 2021 Stock Option Incentive Plan. As the
exercise conditions for the first exercise period of the initial grant of the 2021 Stock Option Incentive Plan had been met, the Company
agreed that grantees may exercise stock options by means of voluntary exercise. During the reporting period, as grantees voluntarily
exercised stock options, a total of 4,082,164 additional shares were issued.

3. Existing internal employee shares
 Applicable  Not applicable
III. Shareholders and actual controllers

1. Number of shareholders and corresponding shareholding

Unit: share

Total Total Total Total number of preference

number of number of number shareholders whose voting

common 524,569 common 523,319 of 0 rights were restored at the 0
shareholders shareholders preferenc end of the previous month

at the end of as the end of e before disclosure date of

the reporting the previous sharehold the annual report


period month ers whose

before voting

disclosure rights

date of the were

annual report restored

at the end

of the

reporting

period (if

any)

Shareholding of shareholders with more than 5% of shares or the top 10 shareholders

Total common Increase/ The number The number of Pledge or freeze status
Name of Type of shares held at decrease of common shares held

shareholder shareholder Percentage the end of the during the shares held without trading Share Number
reporting reporting with trading restrictions status

period period restrictions

Goertek Domestic

Group Co., non-state- 14.84% 507,680,170 507,680,170

Ltd. owned

corporation

Jiang Bin Domestic 8.40% 287,397,406 215,548,054 71,849,352

Individual

Jiang Long Domestic 7.32% 250,345,197 187,758,898 62,586,299 Pledged 93,500,000
Individual

Hong Kong
Securities

Clearing Overseas 3.64% 124,575,288 124,575,288

Company corporation
Ltd.
(HKSCC)
China
Securities

Finance Other 2.43% 83,044,011 83,044,011

Corporation
Limited
National
Social

Security Other 0.76% 26,000,000 26,000,000

Fund
Portfolio 103

Chen Shihui Domestic 0.62% 21,332,500 21,332,500

Individual

Tian'an Life
Insurance

Co., Ltd. - Other 0.58% 20,000,000 20,000,000

traditional
products
Dajia Life

Insurance Other 0.51% 17,567,904 17,567,904

Co., Ltd. -
universal

products
Taiping Life State-owned

Insurance legal entity 0.50% 17,174,970 17,174,970

Co., Ltd.
Strategic investors or
general legal entities who

become the top 10 None

shareholders as a result of
the placement of new
shares (if any)
Explanation of the

association of the above Jiang Bin and Jiang Long are brothers; Goertek Group Co., Ltd. is a company controlled by Jiang Bin
shareholders or their action and Jiang Long.

in concert
Explanation on
entrustment/acceptance and None
waiver of voting rights by
the aforesaid shareholders
Special notes on the existing

special account of securities The specific securities repurchase account of Goertek Inc. holds 74,265,451 common shares,

repurchasing in the Top 10 accounting for 2.17%.

shareholders (if any)

Shareholding of top 10 shareholders of shares without sales restrictions

Number of shares without sales restrictions Type of shares

Name of shareholder held at the end of the reporting period Type of shares Number

Goertek Group Co., Ltd. 507,680,170 Ordinary shares in RMB 507,680,170

Hong Kong Securities

Clearing Company Ltd. 124,575,288 Ordinary shares in RMB 124,575,288
(HKSCC)

China Securities Finance 83,044,011 Ordinary shares in RMB 83,044,011
Corporation Limited

Jiang Bin 71,849,352 Ordinary shares in RMB 71,849,352

Jiang Long 62,586,299 Ordinary shares in RMB 62,586,299

National Social Security 26,000,000 Ordinary shares in RMB 26,000,000
Fund Portfolio 103

Chen Shihui 21,332,500 Ordinary shares in RMB 21,332,500

Tian'an Life Insurance Co., 20,000,000 Ordinary shares in RMB 20,000,000
Ltd. - traditional products

Dajia Life Insurance Co., 17,567,904 Ordinary shares in RMB 17,567,904
Ltd. - universal products

Taiping Life Insurance Co., 17,174,970 Ordinary shares in RMB 17,174,970
Ltd.
Explanation on association
or action in concert among
top 10 shareholders of

shares without sales Jiang Bin and Jiang Long are brothers; Goertek Group Co., Ltd. is a company controlled by Jiang Bin
restrictions, or between top and Jiang Long.

10 shareholders of shares
without sales restrictions
and top 10 shareholders


Explanation on the top ten

common shareholders’ At the end of the reporting period, the shares held by Goertek Group Co., Ltd., the controlling

participation in the shareholder of the Company include the 150,000,000 shares held in the customer credit transaction

financing and loan guarantee securities account of Southwest Securities Co., Ltd.

businesses of securities
trades(if any)

Whether the Company’s top 10 common shareholders and top 10 common shareholders without share sales restrictions agreed on

any repurchase transaction in the reporting period

 Yes  No

None of the Company’s top 10 common shareholders and top 10 common shareholders without share sales restrictions agreed on any
repurchase in the reporting period.

2. Particulars about the controlling shareholder

Nature of the controlling shareholder: Private corporate

Type of the controlling shareholder: Legal entity

Name of the controlling Legal

shareholder representative/Head Date of establishment Organization code Business scope

of the Company

Residential interior
decoration; medical
services; technology import
and export; investing
activities conducted with
Goertek Group Co., Ltd. Jiang Bin April 24, 2001 913707007286084226 own funds; non-residential
real estate leasing; technical
services; wholesale of
edibleagricultural products;
tree planting management;
electronic products sales,
etc.

Shareholdings of the

controlling shareholder in None

other listed companies

Change of the controlling shareholders in the reporting period

 Applicable  Not applicable

No change on the controlling shareholder of the Company in the reporting period

3.Actual controllers of the Company and persons acting in concert with the actual controller

Nature of the actual controllers: Domestic individual

Type of the actual controllers: Individual

Whether he/she has obtained
Name of the actual controller Relationship with the actual controller Nationality the right of residence in another
country or region

Jiang Bin Himself China No

Hu Shuangmei Himself China No

Jiang Long Acting in concert (including agreement, China No

relative and common control)


Mr. Jiang Bin is currently the board chairman of the Company; Mr. Jiang Long served as the vice
Main occupation and title chairman and president of the Company during the reporting period. (He resigned from the above
positions onApril 6, 2023.)

Information about other listed

companies at home and abroad Goertek Inc.

controlled in the last ten years

Change on the actual controllers in the reporting period

 Applicable  Not applicable

No change on the actual controllers of the Company in the reporting period

Block Diagram for Property Right and Control Relationship Between the Company and itsActual Controllers

Jiang Bin Hu Shuangmei

Goertek Group Co., Ltd.

Goertek Inc.

The actual controller controls the Company via trust or other ways of asset management

 Applicable  Not applicable

4. All the pledged shares account for 80% of the total shares held by the controlling shareholder or No.1
shareholder of the Company and their persons acting in concert

 Applicable  Not applicable

5. Particulars about other corporate shareholders with over 10% shares of the Company

 Applicable  Not applicable

6. Particulars on share sales restrictions for controlling shareholders, actual controllers, or other parties
involved in the reorganization of the Company or in any commitments related to the sales of share

 Applicable  Not applicable

IV. Specific Implementation of Share Repurchase in the Reporting Period

Progress of share repurchase
 Applicable  Not applicable

The progress of repurchased shares reduction through centralized trading at competitive price

 Applicable  Not applicable


Section VIII Information of Preference Shares

 Applicable  Not applicable

There are no preference shares in the reporting period.


Section IX Information on the Bonds

 Applicable  Not applicable


Section X Financial Report

I.Auditor’s Report

Auditor’s Opinion Standard unqualified opinion

Auditor’s Report Sign-off Date April 17, 2023

Name of the audit institution ZHONGXI CPAs (SPECIAL GENERALPARTNERSHIP)

Auditor’s Report Number Zhong Xi Cai Shen No. 2023S00781

Name of the Certified PublicAccountant Du Yeqin, Zhang Shuli

Text of the auditor’s report

Auditor’s Report

Zhong Xi Cai Shen No. 2023S00781

To all the shareholders of Goertek Inc.,

I. Opinion

We have audited the accompanying financial statements of Goertek Inc. (hereinafter referred to as "Goertek"), including the
consolidated and Company's balance sheets as of December 31, 2022, consolidated and Company's income statements, consolidated
and Company's cash flow statements, consolidated and Company's statements of changes in shareholder' equity, and notes to the
financial statements for the year then ended.

In our opinion, the accompanying financial statements have been prepared in all material aspects in accordance with the Accounting
Standards for Business Enterprises, fairly reflecting the consolidated and Company's financial position as of December 31, 2022 and
of the consolidated and Company's financial performance and cash flows for 2022.

II. Basis for Opinion

We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities
under those Standards are further described in the “Certified Public Accountants’ Responsibilities for the Audit of the Financial
Statements” section of the auditor’s report. We are independent of Goertek Inc. in accordance with the Code of Ethics for Certified
Public

Accountants of China (“Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditor’s opinion.

III. Key Audit Matters

Key audit matters are those matters that, in our professional judgment, are of most significance in our audit of the financial statements
of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters. We determine that the following matters are critical
audit matters that need to be communicated in the audit report.

(I) Revenue recognition
1. Description of the matters

Goertek Inc. is mainly in the business of producing and selling electronic components, and for the accounting policy of revenue
recognition, please refer to ''32. Income'' in ''V. Significant Accounting Policies and Accounting Estimates'' of notes to the financial
statements. In 2022, the operating revenue in the consolidated financial statements of Goertek Inc. is RMB 104,894.32 million.

Revenue is one of the key performance indicators of Goertek Inc. and is the major source of profit of the Company, and the accuracy
and completeness of revenue recognition has a significant impact on the profits of the Company. Therefore, we identified the
recognition of Goertek Inc.’s revenue as a key audit matter.

2. Audit measures

We performed the following audit procedures in recognition of the operating revenue:


(1) Understood, evaluated and tested the design and operation effectiveness of internal control related to revenue recognition;

(2) Performed analytical review procedure to analyze the rationality of changes in the operating revenue and gross profits;

(3) Identified the risk in the commodity ownership and the contractual terms related to remuneration transfer, evaluated whether the
accounting policies for revenue recognition in different modes were appropriate, and evaluated whether the time point for revenue
recognition of the Company was consistent with the requirements in the Accounting Standards for Business Enterprises by checking
the major sales contracts or orders, understanding the policies for receipt and return of goods, communicating with the management
and other procedures;

(4) Selected samples to check the sales contracts or orders, sales invoices, shipping orders, declarations for exportation, waybills
(receipt forms), bank slips and other supporting documents related to revenue recognition, and executed external confirmation
procedures on a sampling basis;

(5) Selected samples to reconcile the shipping orders, declarations for exportation, waybills (receipt forms) and other supporting
documents against the product sales revenue recognized before and after the balance sheet date to evaluate whether the revenue was
recognized in the appropriate accounting period.

(II) Provision for decline in the value of inventories

1. Description of the matters

For the related accounting policies, please refer to ''15. Inventory'' in ''V. Significant Accounting Policies and Accounting Estimates''
of notes to the financial statements. As of December 31, 2022, the inventory balance was RMB 18,419.65 million, the amount of
provision for decline in the value of inventories was RMB1,070.98 million, and the book value was RMB 17,348.67 million.

On the balance sheet date, inventory is measured at cost or net realizable value (whichever is lower). The provision for decline in the
value of inventories is generally made at the difference between an inventory item’s cost and its net realizable value. To determine the
net realizable value of the inventory, the Management needs to estimate the selling price of the inventory, the costs to be incurred by
the time of completion, selling expenses, and related taxes. In November 2022, Goertek Inc. announced that it had received a notice
from a major overseas customer to suspend the production of one of its smart acoustic products. The matter resulted in the related
inventory being partially excess and obsolete.

We identified the provision for decline in the value of inventories as a key audit matter because the amount of inventory is significant
and the provision for decline in the value of inventories requires significant accounting judgment and estimates by the Management.
2. Audit measures

We performed the following audit procedures on the provision for inventory write down:

(1) We understood, evaluated, and tested the effectiveness of the design and operation of internal controls related to the provision for
inventory write down;

(2) We implemented the inventory monitoring procedure, paying attention to slow-moving, excessive, obsolete, or damaged inventory
items, and checking the relevant inventory list with the Management's inventory write down list;

(3) We obtained the year-end inventory age list and performed an analytical review of older inventories based on the condition of the
products to evaluate the rationality of the provision for inventory write down;

(4) We obtained the inventory write down calculation table and reviewed the net realizable value of inventory and the amount of
provision for inventory provision, so as to evaluate the rationality of accounting judgments made by the Management in determining
the net realizable value of inventory;

(5) In response to the suspension of production of a smart acoustic product for a major overseas customer, we paid special attention to
the delivery of inventory and the disposal plan of raw materials and work-in-progress inventory.

(III) Provision for impairment of fixed assets

1. Description of the matters

For the provision for impairment of fixed assets, please refer to ''25. Impairment of Long-term Assets'' in ''V. Significant Accounting
Policies and Accounting Estimates''. As of December 31, 2022, the book value of the Company's fixed assets was RMB 21,459.76
million, and the provision for impairment of fixed assets in 2022 was RMB 579.46 million.


In November 2022, Goertek Inc. announced that it had received a notice from a major overseas customer to suspend the production of
one of its smart acoustic products. This matter resulted in impairment of the related fixed assets. The Management conducted
impairment tests on the related fixed assets on the balance sheet date. If the impairment test results show that the recoverable amount
of an asset is lower than its book value, the provision for impairment shall be accrued according to the difference and recorded into the
impairment loss. The recoverable amount is the higher of the net amount of the fair value of the asset less the disposal expenses and
the present value of the expected future cash flow of the asset.

Since the book value of fixed assets has a significant impact on financial statements and the provision for impairment of fixed assets
requires the management to make significant accounting judgments and estimates, we identified the provision for impairment of fixed
assets as a key audit matter.

2. Audit measures

We mainly implemented the following audit procedures for the provision for impairment of fixed assets:

(1) We understood, evaluated, and tested the effectiveness of the design and operation of internal control related to the provision for
impairment of fixed assets;

(2) We inspected relevant fixed assets on site and implemented monitoring procedures to verify whether there are idle situations and
determine whether there are signs of impairment;

(3) In response to the suspended production of a smart acoustic product for a major overseas customer, we paid special attention to the
use of related fixed assets and related disposal plans;

(4) We analyzed the Management's judgment on whether there are signs of possible impairment of fixed assets at the end of the period,
evaluated the appropriateness of the Management's fixed asset impairment test method, and reviewed the key assumptions and
rationality of judgments adopted by the Management in the impairment test method;

(5) We obtained appraisal reports on fixed assets from third-party institutions and reviewed the appraisal scope, assumptions,
conclusions, etc. in the appraisal reports.

IV. Other Information

The Management of Goertek Inc. (the Management) is responsible for Other Information. Other Information includes information
covered in the 2022 Annual Report of Goertek Inc. but excludes financial statements and auditor’s reports.

Our auditor’s opinions on financial statements do not cover Other Information. We also do not express any kind of verification
conclusion on Other Information.

In combination with our audit of the financial statements, we're obliged to read the Other Information. In the process, we consider
whether the Other Information is materially inconsistent with the financial statements or the information we learned during the audit,
or whether there is a material misstatement.

Based on the work that we have already done, if we determine that the Other Information contains material misstatements, we should
report the fact. In this regard, we have nothing to report.

V. Responsibilities of Management and Governance for the Financial Statements

The management of Goertek Inc. is responsible for the preparation and fair presentation of the financial statements in accordance with
the Accounting Standards for Business Enterprises, and for the design, implementation and maintenance of such internal control
necessary to ensure that the financial statements are free from material misstatement, whether due to fraud or error.

Inpreparingthefinancial statements,Management is responsiblefor assessingtheabilityofGoertekInc. tocontinueasagoingconcern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management intends
to liquidate Goertek Inc. or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the financial reporting process of Goertek Inc.

VI. Auditor’s Responsibilities for the Audit of the Financial Statements

Ourobjectivesaretoobtainreasonableassuranceabout whether thefinancial statements asawholearefree frommaterial misstatement,
whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,
but is not a guarantee that an audit conducted in accordance with the Auditing Standards will always detect a material misstatement

when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.

As part ofan audit in accordancewith the Auditing Standards, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the financial statements due to fraud or error, design and perform audit
procedures to address those risks, and obtain audit evidence that is sufficient and appropriate as the basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit to design appropriate audit procedures.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by Management.

4. Conclude on the appropriateness of Management's use of the going concern basis of accounting. And, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Goertek Inc.’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to express a qualified opinion. Our
conclusions are based on the information obtained up to the date of our auditor’s report. However, future events or conditions may
cause Goertek Inc. to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements fairly
represent the underlying transactions and events.

6. Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities within Goertek Inc. to
express an opinion on the financial statements. We are responsible for the instruction, supervision and execution of the Group’s audit,
and assume full responsibility for the auditor’s opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence and communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence and, where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.

Zhongxi Certified Public Accountants (SPECIAL Certified Public Accountant in China

GENERAL PARTNERSHIP) (Engagement partner): ___________

Du Yeqin

Beijing China Certified Public Accountant in China: ___________

Zhang Shuli

April 17, 2023

II. Financial Statements

The currency in the notes to the financial statements is: RMB

1. Consolidated Balance Sheet
Prepared by: Goertek Inc.

December 31, 2022

Unit: RMB

Item December 31, 2022 January 1, 2022

Current assets:

Cash at bank and on hand 12,682,871,091.80 10,048,521,696.09

Deposit reservation for balance

Lending funds

Financial assets held for trading 338,662,097.66 119,267,279.02

Derivative financial assets

Notes receivable 25,847,492.24 50,094,700.47

Accounts receivable 14,396,180,782.93 11,899,214,525.92

Financing receivables 22,375,874.12 14,575,230.24

Advances to suppliers 50,656,153.43 97,544,817.98

Premiums receivable

Reinsurance accounts receivable

Provision of cession receivable

Other receivables 96,442,803.18 374,669,355.98

Including: Interest receivable

Dividends receivable

Redemptory financial asset for sale

Inventories 17,348,670,744.58 12,082,308,485.38

Contract assets

Assets held for sale

Current portion of non-current assets 70,302,566.25

Other current assets 530,991,435.56 475,772,227.60

Total current assets 45,563,001,041.75 35,161,968,318.68

Non-current assets:

Loans and advances disbursed

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 361,008,671.83 437,402,203.91

Investments in other equity instruments 699,249,262.24 465,677,764.54

Other non-current financial assets 318,661,575.31 201,430,042.13

Investment properties

Fixed assets 21,459,756,268.25 18,123,352,480.76

Construction in progress 2,424,443,775.33 2,127,055,853.77

Bearer biological assets

Oil and gas assets

Right-of-use assets 580,175,922.73 330,796,520.66

Intangible assets 2,720,793,670.68 2,762,793,788.85

Development costs 361,178,111.91 242,956,092.44

Goodwill 16,859,185.08 16,859,185.08

Long-term prepaid expenses 337,561,524.06 207,195,490.25

Deferred tax assets 1,369,530,623.51 495,124,421.81

Other non-current assets 964,135,835.23 506,438,970.39

Total non-current assets 31,613,354,426.16 25,917,082,814.59

Total assets 77,176,355,467.91 61,079,051,133.27

Current liabilities:

Short-term borrowings 7,120,846,026.67 4,284,859,347.02

Borrowings from banks and other
financial institutions
Borrowing funds

Financial liabilities held for trading 202,293,742.46 15,190,564.34

Derivative financial liabilities

Notes payable 4,850,498,246.08 2,742,876,464.23

Accounts payable 25,748,758,270.19 18,529,609,655.40

Advances from customers

Contract liabilities 2,295,347,547.31 2,210,825,761.69

Financial assets sold for repurchase
Customer deposits and deposits from
banks and other financial institutions
Receiving from vicariously traded
securities
Receiving from vicariously sold
securities

Employee benefits payable 1,039,571,778.39 1,066,570,159.63

Taxes payable 284,911,767.58 356,610,000.28

Other payables 78,974,306.79 80,187,733.17

Including: Interest payable

Dividends payable

Handling charges and commissions
payable
Dividend payable for reinsurance
Liabilities held for sale

Current portion of non-current liabilities 1,095,618,327.74 501,408,170.04

Other current liabilities 4,252,178.60 14,844,359.01

Total current liabilities 42,721,072,191.81 29,802,982,214.81

Non-current liabilities:
Reserve fund for insurance contracts

Long-term borrowings 2,206,000,000.00 2,204,215,784.74

Debentures payable

Including: Preference shares


Perpetual bonds

Lease liabilities 470,704,507.75 210,209,955.40

Long-term payables

Long-term employee benefits payable

Provisions

Deferred income 532,374,144.38 540,321,080.65

Deferred tax liabilities 816,118,632.40 389,933,389.40

Other non-current liabilities 172,261,037.39

Total non-current liabilities 4,197,458,321.92 3,344,680,210.19

Total liabilities 46,918,530,513.73 33,147,662,425.00

Shareholders’equity:

Share capital 3,420,403,200.00 3,416,321,036.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital surplus 10,280,659,251.03 9,478,106,194.30

Less: Treasury stock 2,291,973,146.75 2,291,973,146.75

Other comprehensive income 122,377,334.36 -100,146,769.57

Specific reserve

Surplus reserve 1,446,536,121.51 1,446,536,121.51

General risk reserve 6,081,200.00 6,081,200.00

Undistributed profits 16,507,798,239.34 15,372,823,358.48

Total equity attributable to the owners of 29,491,882,199.49 27,327,747,993.97
the Company

Minority interests 765,942,754.69 603,640,714.30

Total shareholders’equity 30,257,824,954.18 27,931,388,708.27

Total liabilities and shareholders’equity 77,176,355,467.91 61,079,051,133.27

Legal representative: Principal in charge of accounting: Head of the accounting department:

Jiang Bin Li Yongzhi Li Yongzhi
2. Parent company balance sheet

Unit: RMB

Item December 31, 2022 January 1, 2022

Current assets:

Cash at bank and on hand 3,297,113,271.47 4,068,082,163.75

Financial assets held for trading 182,610,198.06 102,214,286.66

Derivative financial assets

Notes receivable 7,252,050.59 15,951,819.79

Accounts receivable 8,870,599,478.20 8,009,174,174.20

Financing receivables 20,812,233.59 12,277,005.37

Advances to suppliers 12,302,281.24 33,005,000.34

Other receivables 7,549,205,233.13 3,927,667,930.14

Including: Interest receivable

Dividends receivable


Inventories 4,322,610,550.17 5,386,290,840.96

Contract assets
Assets held for sale

Current portion of non-current assets 70,184,291.67

Other current assets 150,596,159.89 89,132,401.04

Total current assets 24,483,285,748.01 21,643,795,622.25

Non-current assets:
Debt investments
Other debt investments
Long-term receivables

Long-term equity investments 6,761,368,254.99 6,182,937,106.09

Investments in other equity instruments

Other non-current financial assets 187,386,179.39 81,254,792.77

Investment properties

Fixed assets 10,645,143,425.63 9,979,950,421.03

Construction in progress 1,126,851,927.87 1,083,563,418.24

Bearer biological assets
Oil and gas assets

Right-of-use assets 280,327,936.71 70,843,695.85

Intangible assets 1,984,169,023.39 2,283,338,054.04

Development costs 241,947,146.57 105,363,784.94

Goodwill

Long-term prepaid expenses 20,436,053.45 6,206,772.89

Deferred tax assets 788,677,414.86 233,025,132.43

Other non-current assets 669,073,701.52 297,122,363.13

Total non-current assets 22,705,381,064.38 20,323,605,541.41

Total assets 47,188,666,812.39 41,967,401,163.66

Current liabilities:

Short-term borrowings 4,444,406,920.52 3,346,827,327.53

Financial liabilities held for trading 19,392,000.00 4,080,000.00

Derivative financial liabilities

Notes payable 4,648,250,141.38 2,348,480,930.59

Accounts payable 9,328,082,173.15 9,328,493,202.63

Advances from customers

Contract liabilities 1,005,783,290.09 340,559,741.33

Employee benefits payable 493,789,544.79 550,001,996.91

Taxes payable 40,037,090.10 37,673,083.32

Other payables 2,600,416,992.05 3,270,836,911.14

Including: Interest payable

Dividends payable

Liabilities held for sale

Current portion of non-current liabilities 1,006,575,141.61 412,234,240.19

Other current liabilities 1,487,433.65 9,670,427.10

Total current liabilities 23,588,220,727.34 19,648,857,860.74

Non-current liabilities:

Long-term borrowings 2,206,000,000.00 990,921,555.56

Debentures payable

Including: Preference shares

Perpetual bonds

Lease liabilities 267,086,388.96 52,713,002.49

Long-term payables

Long-term employee benefits payable

Provisions

Deferred income 184,692,979.14 186,139,483.46

Deferred tax liabilities 536,571,810.07 373,963,793.59

Other non-current liabilities

Total non-current liabilities 3,194,351,178.17 1,603,737,835.10

Total liabilities 26,782,571,905.51 21,252,595,695.84

Shareholders’equity:

Share capital 3,420,403,200.00 3,416,321,036.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital surplus 8,421,030,014.05 7,706,634,091.21

Less: Treasury stock 2,291,973,146.75 2,291,973,146.75

Other comprehensive income

Specific reserve

Surplus reserve 1,446,533,339.11 1,446,533,339.11

Undistributed profits 9,410,101,500.47 10,437,290,148.25

Total shareholders’equity 20,406,094,906.88 20,714,805,467.82

Total liabilities and shareholders’equity 47,188,666,812.39 41,967,401,163.66

3. Consolidated income statement

Unit: RMB

Item 2022 2021

I. Revenue 104,894,324,162.26 78,221,418,618.02

Including: Operating revenue 104,894,324,162.26 78,221,418,618.02

Interest income

Earned premium

Total revenue from handling

charges and commissions

II. Total Operating Cost 101,718,859,767.81 74,123,260,660.02

Including: cost of sales 93,233,476,543.28 67,167,666,659.66

Interest expense

Handling charge and

commission expense

Surrender value

Net payments for insurance

claims


Net amount of withdrawal of

insurance contract reserve

Expenditures of policy dividend

Amortized reinsurance

expenditures

Taxes and surcharges 266,930,500.29 221,891,985.50

Selling expenses 548,298,842.05 444,869,977.08

General and administrative 2,294,505,645.46 1,951,657,773.32
expenses

Research and development 5,226,525,154.99 4,170,074,282.10
expenses

Financial expenses 149,123,081.74 167,099,982.36

Including: Interest expenses 303,539,076.90 209,622,292.85

Interest income 189,356,256.02 91,492,632.72

Add: Other income 373,205,863.18 466,722,801.11

Investment income ("-" for loss) -36,243,969.62 469,239,884.79

Including: Investment income 2,298,237.32 23,111,753.41
from associates and joint ventures

Profits or losses

arising from derecognised financial assets -23,037,232.06 -7,852,608.05
at amortised cost

Exchange gains ("-" for loss)

Net exposure hedging income ("-"

for loss)

Gains on changes in fair value ("-" -57,081,334.97 -48,848,625.93
for loss)

Credit impairment losses ("-" for -14,220,595.92 -29,693,677.67
loss)

Asset impairment losses ("-" for -1,782,744,359.91 -241,075,506.45
loss)

Gains on disposal of assets ("-" for -47,898,939.73 -31,179,825.99
loss)

III. Operating Profit ("-" for loss) 1,610,481,057.48 4,683,323,007.86

Add: Non-operating income 21,477,460.44 22,444,738.18

Less: Non-operating expenses 122,730,370.49 99,858,949.06

IV. Total Profit (“-” for total losses) 1,509,228,147.43 4,605,908,796.98

Less: Income tax expenses -281,790,237.36 298,842,312.64

V. Net profit ("-" for net loss) 1,791,018,384.79 4,307,066,484.34

(I) Classification by continuity of
operations

1. Net profit from continuing 1,791,018,384.79 4,307,066,484.34
operations (“-” for net loss)

2. Net profit from discontinued

operations (“-” for net loss)

(II) Classification by ownership of the

equity

1. Net profit attributable to the 1,749,181,131.83 4,274,702,999.38

shareholders of the Company

2. Minority interests 41,837,252.96 32,363,484.96

VI. Other comprehensive income, net of 225,089,038.47 21,620,809.04
tax

Other comprehensive income, net of tax

attributable to the shareholders of the 222,524,103.93 11,863,242.95
Company

(I) Other comprehensive income

items which will not be reclassified 2,195,604.99 39,220,079.94
subsequently to profit or loss

1. Changes in remeasurement of

defined benefit plan

2. Shares of other comprehensive

income of the investee accounted for using

equity method that will not be

subsequently reclassified to profit or loss

3. Changes in fair value of 2,195,604.99 39,220,079.94
investments in other equity instruments

4. Changes in fair value

attributable to change in the credit risk of

financial liability designated at FVPL

5. Others

(II) Other comprehensive income

items which will be reclassified 220,328,498.94 -27,356,836.99
subsequently to profit or loss

1. Shares of other comprehensive

income of the investee accounted for using -27,351,340.30 7,950,273.16
equity method that will be reclassified to

profit or loss

2. Changes in fair value of other

debt investments

3. Shares of financial assets

reclassified to other comprehensive
income

4. Provision for credit impairment

of other debt investments

5. Effective portion of gains or

losses on hedging instruments in a cash

flow hedge

6. Translation differences on

translation of foreign currency financial 247,679,839.24 -35,307,110.15
statements

7. Others

Net other comprehensive income, net of 2,564,934.54 9,757,566.09
tax, attributable to minority shareholders

VII. Total comprehensive income 2,016,107,423.26 4,328,687,293.38

Attributable to the shareholders of the 1,971,705,235.76 4,286,566,242.33
Company

Attributable to minority shareholders 44,402,187.50 42,121,051.05

VIII. Earnings per share

(I) Basic earnings per share 0.52 1.29

(II) Diluted earnings per share 0.52 1.28

In case of consolidation of enterprises under common control during current period, the net profit before consolidation realized by
consolidated party is RMB 0.00. The net profit realized by the consolidated party in the previous period is RMB 0.00.

Legal representative: Principal in charge of accounting: Head of the accounting department:

Jiang Bin Li Yongzhi Li Yongzhi
4. Parent Company Income Statement

Unit: RMB

Item 2022 2021

I. Revenue 42,977,392,050.91 38,570,677,177.70

Less: Cost of sales 37,992,035,039.68 33,462,769,638.76

Taxes and surcharges 166,468,610.77 154,866,730.44

Selling expenses 357,947,471.28 366,931,444.56

General and administrative 1,883,669,477.96 1,596,480,325.17
expenses

Research and development 2,842,072,542.12 2,398,742,531.34
expenses

Financial expenses -286,250,474.81 194,864,359.66

Including: Interest expenses 244,537,695.61 146,895,744.91

Interest income 119,926,860.39 46,415,186.23

Add: Other income 59,312,468.45 219,224,748.04

Investment income ("-" for loss) 656,680,494.07 197,716,898.27

Including: Investment income -7,694,836.13

from associates and joint ventures

Profits or losses arising

from derecognised financial assets at -2,297,194.72
amortised cost (“-” for loss)

Net exposure hedging income ("-"

for loss)

Gains on changes in fair value ("-" 81,215,298.02 -12,391,097.59
for loss)

Credit impairment losses ("-" for 7,287,106.67 -9,464,407.85
loss)

Asset impairment losses ("-" for -1,496,859,325.46 -60,378,317.10
loss)

Gains on disposal of assets ("-" for -3,522,548.55 -19,259,431.72
loss)

II. Operating Profit ("-" for loss) -674,437,122.89 711,470,539.82

Add: Non-operating income 10,715,077.09 14,343,882.35

Less: Non-operating expenses 88,097,731.93 81,884,486.81

III. Total profit (“-” for total losses) -751,819,777.73 643,929,935.36

Less: Income tax expenses -393,042,246.95 -114,650,228.04

IV. Net profit ("-" for net loss) -358,777,530.78 758,580,163.40

(I) Net profit from continuing -358,777,530.78 758,580,163.40


operations (“-” for net loss)

(II) Net profit from discontinued

operations (“-” for net loss)

V. Other comprehensive income, net of tax

(I) Other comprehensive income

items which will not be reclassified

subsequently to profit or loss

1. Changes in remeasurement of

defined benefit plan

2. Shares of other comprehensive

income of the investee accounted for using

equity method that will not be

subsequently reclassified to profit or loss

3. Changes in fair value of

investments in other equity instruments

4. Changes in fair value

attributable to change in the credit risk of

financial liability designated at FVPL

5. Others

(II) Other comprehensive income

items which will be reclassified

subsequently to profit or loss

1. Shares of other comprehensive

income of the investee accounted for using

equity method that will be reclassified to

profit or loss

2. Changes in fair value of other

debt investments

3. Shares of financial assets

reclassified to other comprehensive
income

4. Provision for credit impairment

of other debt investments

5. Effective portion of gains or

losses on hedging instruments in a cash

flow hedge

6. Translation differences on

translation of foreign currency financial

statements

7. Others

VI. Total comprehensive income -358,777,530.78 758,580,163.40

VII. Earnings per share

(I) Basic earnings per share

(II) Diluted earnings per share

5. Consolidated statement of cash flows

Unit: RMB

Item 2022 2021


I. Cash flows from operating activities:

Cash received from sale of goods or 87,859,623,816.37 79,015,187,941.07
rendering of services

Net increase in customer deposits and

deposits from banks and other financial

institutions

Net increase in borrowings from banks

and other financial institutions

Net increase in borrowing funds from

other financial institutions
Cash receipts from original insurance
contract premium
Net cash received from reinsurance
business
Net increase in deposits and
investments from policy holders

Cash received from for interests, fees

and commissions
Net increase in borrowing funds
Net increase in repurchase business
funds
Net cash received from securities
trading brokerage

Refund of taxes and surcharges 3,177,120,800.53 2,491,572,718.66

Cash received relating to other 1,924,041,394.99 4,016,679,085.42
operating activities

Sub-total of cash inflow from operating 92,960,786,011.89 85,523,439,745.15
activities

Cash paid for goods and services 70,912,862,925.28 63,038,774,946.46

Net increase in loans and advances to

customers

Net increase in deposits with central

bank and other financial institutions
Payments of claims for original
insurance contracts
Net increase in lending funds

Cash paid for interests, fees and

commissions
Cash payments of policy dividend

Cash paid to and on behalf of 9,048,023,602.48 7,719,283,934.60
employees

Payments of taxes and surcharges 835,585,413.96 748,229,544.50

Cash paid relating to other operating 3,847,200,705.49 5,418,675,791.71
activities

Sub-total of cash outflow from operating 84,643,672,647.21 76,924,964,217.27
activities

Net cash flow from operating activities 8,317,113,364.68 8,598,475,527.88

II. Cash flows from investing activities


Cash received from disposal of 1,060,923,791.21 3,101,972,150.22
investments

Cash received from returns on 9,371,384.39 36,359,530.84
investments

Net cash received from disposal of fixed

assets, intangible assets and other long- 49,533,749.98 121,860,250.62
term assets

Net cash received from disposal of 322,965.16 6,872,916.88
subsidiaries and other business units

Cash received relating to other investing 21,653,530.71 9,258,951.92
activities

Sub-total of cash inflow from investing 1,141,805,421.45 3,276,323,800.48
activities

Cash paid to acquire fixed assets,

intangible assets and other long-term 8,090,107,306.38 6,961,607,745.79
assets

Cash paid to acquire investments 2,118,347,402.73 3,083,092,515.56

Net increase in pledged loans

Net cash paid to acquire subsidiaries

and other business units

Cash paid relating to other investing 10,363,395.50

activities

Sub-total of cash outflow from investing 10,218,818,104.61 10,044,700,261.35
activities

Net cash flow from investing activities -9,077,012,683.16 -6,768,376,460.87

III. Cash flows from financing activities

Cash received from capital 395,195,770.87 2,178,807,429.01
contributions
Including: Cash received from capital

contributions by minority shareholders of 276,358,071.55 2,178,807,429.01
subsidiaries

Cash received from borrowings 28,642,971,147.51 10,317,581,649.46

Cash received relating to other 2,683,899,988.02 1,507,365,421.50
financing activities

Sub-total of cash inflow from financing 31,722,066,906.40 14,003,754,499.97
activities

Cash repayments of borrowings 25,446,211,817.27 9,404,218,099.41

Cash payments for distribution of

dividends, profits, or cash payments for 953,234,131.28 674,578,631.48
interest expenses
Including: Cash payments for dividends

and profits to minority shareholders of the 5,932,783.34
subsidiaries

Cash payments relating to other 3,314,992,485.44 3,537,780,408.80
financing activities

Sub-total of cash outflow from financing 29,714,438,433.99 13,616,577,139.69
activities

Net cash flow from financing activities 2,007,628,472.41 387,177,360.28


IV. Effect of foreign exchange rate 414,363,412.84 7,432,490.21
changes on cash and cash equivalents

V. Net Increase in cash and cash 1,662,092,566.77 2,224,708,917.50
equivalents

Add: Cash and cash equivalents at 9,137,900,902.04 6,913,191,984.54
beginning of year

VI. Cash and cash equivalents at end of 10,799,993,468.81 9,137,900,902.04
year

Legal representative: Jiang Bin Principal in charge of accounting: Li Head of the accounting department: Li

Yongzhi Yongzhi

6. Parent company cash flow statement

Unit: RMB

Item 2022 2021

I. Cash flows from operating activities:

Cash received from sale of goods or 44,433,843,690.52 41,440,959,868.63
rendering of services

Refund of taxes and surcharges 2,133,662,516.06 1,790,617,461.55

Cash received relating to other operating 444,026,016.74 413,354,244.31
activities

Sub-total of cash inflow from operating 47,011,532,223.32 43,644,931,574.49
activities

Cash paid for goods and services 35,135,811,819.24 33,515,828,921.22

Cash paid to and on behalf of employees 4,730,047,823.61 4,068,784,659.43

Payments of taxes and surcharges 204,340,880.43 194,091,540.85

Cash paid relating to other operating 2,185,115,476.07 1,609,432,568.10
activities

Sub-total of cash outflow from operating 42,255,315,999.35 39,388,137,689.60
activities

Net cash flow from operating activities 4,756,216,223.97 4,256,793,884.89

II. Cash flows from investing activities

Cash received from disposal of investments 292,167,856.22 236,295,118.62

Cash received from returns on investments 650,503,164.62 544,414.32

Net cash received from disposal of fixed

assets, intangible assets and other long-term 2,121,526,013.95 323,227,247.63
assets

Net cash received from disposal of

subsidiaries and other business units

Cash received relating to other investing 13,607,538,495.79 8,951,126,589.67
activities

Sub-total of cash inflow from investing 16,671,735,530.58 9,511,193,370.24
activities

Cash paid to acquire fixed assets, intangible 5,264,058,543.36 4,448,253,564.40
assets and other long-term assets

Cash paid to acquire investments 1,586,419,475.27 418,652,038.10

Net cash paid to acquire subsidiaries and

other business units

Cash paid relating to other investing 17,199,579,824.51 8,806,986,219.18
activities

Sub-total of cash outflow from investing 24,050,057,843.14 13,673,891,821.68
activities

Net cash flow from investing activities -7,378,322,312.56 -4,162,698,451.44

III. Cash flows from financing activities

Cash received from capital contributions 118,837,699.32

Cash received from borrowings 24,900,350,751.32 9,085,440,334.00

Cash received relating to other financing 9,056,368,411.19 6,191,082,902.13
activities

Sub-total of cash inflow from financing 34,075,556,861.83 15,276,523,236.13
activities

Cash repayments of borrowings 22,139,255,620.15 7,202,245,451.93

Cash payments for distribution of dividends, 882,706,689.89 618,985,623.65
profits, or cash payments for interest expenses

Cash payments relating to other financing 10,020,646,445.56 6,373,227,380.30
activities

Sub-total of cash outflow from financing 33,042,608,755.60 14,194,458,455.88
activities

Net cash flow from financing activities 1,032,948,106.23 1,082,064,780.25

IV. Effect of foreign exchange rate changes on 59,283,372.51 -5,853,969.14
cash and cash equivalents

V. Net Increase in cash and cash equivalents -1,529,874,609.85 1,170,306,244.56

Add: Cash and cash equivalents at beginning 3,480,290,203.30 2,309,983,958.74
of year

VI. Cash and cash equivalents at end of year 1,950,415,593.45 3,480,290,203.30


7. Consolidated statement of changes in shareholders' equity

Amount of current period

Unit: RMB

2022

Shareholders' equity attributable to the Company

Other

equity

instruments Total

Item Less: Other General Minority shareholders’
Share capital Capital surplus Treasury comprehensive Specific Surplus risk Undistributed Other Sub-total interests

reserve reserve profits equity

stock income reserve

I. Balance -

at 3,416,321,036 9,478,106,194. 2,291,973, 100,146,769.5 1,446,536,121 6,081,200. 15,372,823,35 27,327,747,9 603,640,714 27,931,388,70
December .00 30 146.75 7 .51 00 8.48 93.97 .30 8.27
31, 2021

Add:
Changes in
accounting
policy
Corrections
of errors in
previous
period
Business
merger
under
common
control
Others

II. Balance 3,416,321,036 9,478,106,194. 2,291,973, - 1,446,536,121 6,081,200. 15,372,823,35 27,327,747,9 603,640,714 27,931,388,70


at January .00 30 146.75 100,146,769.5 .51 00 8.48 93.97 .30 8.27
1, 2022 7

III. Changes

in Current 802,553,056.7 222,524,103.9 1,134,974,880. 2,164,134,20 162,302,040 2,326,436,245.
Period (“-” 4,082,164.00 3 3 86 5.52 .39 91
for
decrease)

(I) Total 222,524,103.9 1,749,181,131. 1,971,705,23 44,402,187. 2,016,107,423.
comprehens 3 83 5.76 50 26
ive income
(II) Capital

invested 4,082,164.00 858,469,728.2 862,551,892. 117,995,183 980,547,076.1
and reduced 2 22 .97 9
by owners
1. Common

shares 4,082,164.00 209,719,886.1 213,802,050. 179,264,458 393,066,508.8
invested by 3 13 .74 7
owners
2. Capital
contributed
from other
equity
instrument
holders
3. Amounts
of share-
based

payments 648,749,842.0 648,749,842. 10,626,166. 659,376,008.5
recognized 9 09 45 4
in
shareholder
s' equity

-

4. Other 71,895,441. -71,895,441.22
22


(III) Profit - - -
distribution 668,411,117.00 668,411,117. 668,411,117.00
00

1.
Appropriati
on of
surplus
reserve
2.
Appropriati
on of
general risk
reserve
3.

Dividends - - -
to owners or 668,411,117.00 668,411,117. 668,411,117.00
shareholder 00

s
4. Other
(IV)
Internal
carry-over
of
shareholder
s' equity
1. Capital
surplus
converted
into capital
(or share
capital)
2. Surplus
reserve
converted
into capital

(or share
capital)
3. Surplus
reserve for
making up
losses
4. Carry-
over
undistribute
d profits
from
defined
benefit plan
changes
5. Carry-
over
undistribute
d profits
from other
comprehens
ive income
6. Other
(V) Specific
reserve
1.

Withdrawal 9,450,078. 9,450,078.52 9,450,078.52
in current 52

period

2. Use in - -

current 9,450,078. 9,450,078.52 -9,450,078.52
period 52

(VI) Other -55,916,671.49 54,204,866.03 - -95,331.08 -1,807,136.54
1,711,805.46

IV. Balance 3,420,403,200 10,280,659,25 2,291,973, 122,377,334.3 1,446,536,121 6,081,200. 16,507,798,23 29,491,882,1 765,942,754 30,257,824,95
at .00 1.03 146.75 6 .51 00 9.34 99.49 .69 4.18

December
31, 2022
Amount in previous period

Unit: RMB

2021

Shareholders' equity attributable to the Company

Other equity

instruments

Item Minority Total

Capital Less: Other Specific Surplus General Undistributed shareholders’
Share capital Treasury comprehensive risk Other Sub-total interests equity

surplus stock income reserve reserve reserve profits

I. Balance -

at 3,275,438,42 317,690,852 3,811,658,79 516,007,64 112,010,012.5 1,370,122, 6,081,200 11,500,277,79 19,653,252, 80,418,514.8 19,733,670,78
December 7.00 .25 1.28 4.95 2 868.85 .00 1.35 273.26 3 8.09
31, 2021

Add:
Changes in
accounting
policy
Corrections
of errors in
previous
period
Business
combinatio
n involving
enterprises
under
common
control
Other


II. Balance 3,275,438,42 317,690,852 3,811,658,79 516,007,64 - 1,370,122, 6,081,200 11,500,277,79 19,653,252, 80,418,514.8 19,733,670,78
at January 7.00 .25 1.28 4.95 112,010,012.5 868.85 .00 1.35 273.26 3 8.09
1, 2022 2

III.

Changes in -

Current 140,882,609. 317,690,852 5,666,447,40 1,775,965, 11,863,242.95 76,413,252 3,872,545,567. 7,674,495,7 523,222,199. 8,197,717,920.
Period (“-” 00 .25 3.02 501.80 .66 13 20.71 47 18
for
decrease)

(I) Total 193,810,124.2 4,274,702,999. 4,468,513,1 42,121,051.0 4,510,634,174.
comprehens 5 38 23.63 5 68
ive income

(II) Capital -

invested 140,882,609. 317,690,852 4,080,674,27 1,999,998, 1,903,867,4 2,178,807,42 4,082,674,866.
and reduced 00 .25 6.46 595.63 37.58 9.01 59
by owners

1. Common -

shares 140,882,609. 316,184,720 3,209,305,79 1,999,998, 1,034,005,0 2,178,807,42 3,212,812,514.
invested by 00 .61 3.20 595.63 85.96 9.01 97
owners
2. Capital
contributed
from other
equity
instrument
holders
3. Amounts
of share-
based

payments 871,368,483. 871,368,483 871,368,483.2
recognized 26 .26 6
in
shareholder
s' equity

4. Other - - -1,506,131.64


1,506,131.6 1,506,131.6

4 4

(III) Profit 75,858,016 - - -
distribution .34 575,516,354.0 499,658,337 -5,932,783.34 505,591,121.0
9 .75 9

1.

Appropriati 75,858,016 -

on of .34 75,858,016.34

surplus
reserve
2.
Appropriati
on of
general risk
reserve
3.

Dividends - - -
to owners 499,658,337.7 499,658,337 -5,932,783.34 505,591,121.0
or 5 .75 9
shareholder
s
4. Other
(IV)

Internal - - -

carry-over 1,585,773,12 224,033,09 181,946,881.3 555,236.32 173,358,921.8 1,801,773,4 1,691,773,49 110,000,000.0
of 6.56 3.83 0 4 97.25 7.25 0
shareholder
s' equity
1. Capital
surplus
converted
into capital
(or share
capital)
2. Surplus

reserve
converted
into capital
(or share
capital)
3. Surplus
reserve for
making up
losses
4. Carry-
over
undistribute
d profits
from
defined
benefit plan
changes
5. Carry-
over

undistribute - 173,358,921.8 -

d profits 181,946,881.3 555,236.32 4 8,032,723.1 8,032,723.14

from other 0 4

comprehens
ive income

1,585,773,12 - 1,809,806,2 - 110,000,000.0
6. Other 6.56 224,033,09 20.39 1,699,806,22 0
3.83 0.39

(V)
Specific
reserves
1.
Withdrawal
in current
period
2. Use in

current
period
(VI) Other

IV. Balance -

at 3,416,321,03 9,478,106,19 2,291,973, 100,146,769.5 1,446,536, 6,081,200 15,372,823,35 27,327,747, 603,640,714. 27,931,388,70
December 6.00 4.30 146.75 7 121.51 .00 8.48 993.97 30 8.27
31, 2022

8. Parent company statement of changes in shareholders’equity

Amount of current period

Unit: RMB

2022

Other equity

instruments

Item Less: Treasury Other Specific Total shareholders’
Share capital Capital surplus stock comprehensive reserve Surplus reserve Undistributed profits Other equity

income

I. Balance at

December 31, 3,416,321,036.00 7,706,634,091.21 2,291,973,146.75 1,446,533,339.11 10,437,290,148.25 20,714,805,467.82
2021

Add:
Changes in
accounting
policy
Corrections of
errors in
previous
period
Others

II. Balance at 3,416,321,036.00 7,706,634,091.21 2,291,973,146.75 1,446,533,339.11 10,437,290,148.25 20,714,805,467.82
January 1,

2022
III. Changes in

Current Period 4,082,164.00 714,395,922.84 -1,027,188,647.78 -308,710,560.94
(“-” for
decrease)
(I) Total

comprehensive -358,777,530.78 -358,777,530.78
income
(II) Capital

invested and 4,082,164.00 714,395,922.84 718,478,086.84
reduced by
owners
1. Common

shares 4,082,164.00 114,831,273.32 118,913,437.32
invested by
owners
2. Capital
contributed
from other
equity
instrument
holders
3. Amounts of
share-based

payments 599,564,649.52 599,564,649.52
recognized in
shareholders'
equity
4. Other

(III) Profit -668,411,117.00 -668,411,117.00
distribution
1.
Appropriation
of surplus
reserve

2. Dividends

to owners or -668,411,117.00 -668,411,117.00
shareholders
3. Other
(IV) Internal
carry-over of
shareholders'
equity
1. Capital
surplus
converted into
capital (or
share capital)
2. Surplus
reserve
converted into
capital (or
share capital)
3. Surplus
reserve for
making up
losses
4. Carry-over
undistributed
profits from
defined benefit
plan changes
5. Carry-over
undistributed
profits from
other
comprehensive
income
6. Other
(V) Specific

reserves
1. Withdrawal

in current 9,450,078.52 9,450,078.52
period

2. Use in -9,450,078.52 -9,450,078.52
current period
(VI) Other
IV. Balance at

December 31, 3,420,403,200.00 8,421,030,014.05 2,291,973,146.75 1,446,533,339.11 9,410,101,500.47 20,406,094,906.88
2022
Amount in previous period

Unit: RMB

2021

Other equity instruments

Item Less: Treasury Other Specific Undistributed Total shareholders’
Share capital Capital surplus stock comprehensive reserve Surplus reserve profits Other equity

income

I. Balance at

December 31, 3,275,438,427.00 317,690,852.25 3,815,383,616.46 516,007,644.95 1,370,120,086.45 10,249,229,212.11 18,511,854,549.32
2021

Add:
Changes in
accounting
policy
Corrections of
errors in
previous
period
Others

II. Balance at 3,275,438,427.00 317,690,852.25 3,815,383,616.46 516,007,644.95 1,370,120,086.45 10,249,229,212.11 18,511,854,549.32
January 1,

2022
III. Changes in

Current Period 140,882,609.00 -317,690,852.25 3,891,250,474.75 1,775,965,501.80 76,413,252.66 188,060,936.14 2,202,950,918.50
(“-” for
decrease)
(I) Total

comprehensive 5,552,363.15 758,580,163.40 764,132,526.55
income
(II) Capital

invested and 140,882,609.00 -317,690,852.25 4,005,283,568.58 1,999,998,595.63 1,828,476,729.70
reduced by
owners
1. Common

shares 140,882,609.00 -316,184,720.61 3,209,305,793.20 1,999,998,595.63 1,034,005,085.96
invested by
owners
2. Capital
contributed
from other
equity
instrument
holders
3. Amounts of
share-based

payments 795,977,775.38 795,977,775.38
recognized in
shareholders'
equity

4. Other -1,506,131.64 -1,506,131.64

(III) Profit 75,858,016.34 -575,516,354.09 -499,658,337.75
distribution
1.

Appropriation 75,858,016.34 -75,858,016.34

of surplus
reserve

2. Dividends

to owners or -499,658,337.75 -499,658,337.75
shareholders
3. Other
(IV) Internal

carry-over of -114,033,093.83 -224,033,093.83 -5,552,363.15 555,236.32 4,997,126.83 110,000,000.00
shareholders'
equity
1. Capital
surplus
converted into
capital (or
share capital)
2. Surplus
reserve
converted into
capital (or
share capital)
3. Surplus
reserve for
making up
losses
4. Carry-over
undistributed
profits from
defined benefit
plan changes
5. Carry-over
undistributed

profits from -5,552,363.15 555,236.32 4,997,126.83

other
comprehensive
income

6. Other -114,033,093.83 -224,033,093.83 110,000,000.00

(V) Specific

reserves
1. Withdrawal
in current
period
2. Use in
current period
(VI) Other
IV. Balance at

December 31, 3,416,321,036.00 7,706,634,091.21 2,291,973,146.75 1,446,533,339.11 10,437,290,148.25 20,714,805,467.82
2022

III. Company Profile

Goertek Inc. (hereinafter referred to as ''the Company'' or ''Goertek'') was established on July 27, 2007, through an overall change of
WeiFang IEA Electro-Acoustic Co., Ltd. (hereinafter referred to as "IEA").

IEA, thepredecessor oftheCompany, wasajoint ventureestablished bylawon June25,2001. InMay2007,theCompanywaschanged
to a domestic enterprise with the approval of the document of Wei Wai Jing Mao Wai Zi (2007) No. 172.

Based on the resolution of the 2nd extraordinary shareholders' meeting of IEA in 2007, held on June 26, 2007, Weifang Yitonggong
Electronics Co., Ltd (the name of the Company was changed to "Goertek Group Co., Ltd." in October 2016, hereinafter referred to as
"Goertek group") transferred its 29.40 million shares in IEA to 17 natural persons including Jiang Bin and Jiang Long, Langfang
Development Zone Yongzhen Electronic Technology Co., Ltd. (hereinafter referred to as "Yongzheng Electronic") and Beijing Yirun
Venture Capital Investment Co., Ltd (hereinafter referred to as "Yirun VCI").

On July 18, 2007, Goertek Group, Yongzhen Electronic, Yirun VCI and the 17 persons including Jiang Bin and Jiang Long jointly
entered into an initiator agreement, changing IEA as a whole to Goertek Acoustic Inc. in the form of initiation, in which the net assets
of IEA, audited on June 30, 2007, were taken as the capital contribution upon stock discount at a ratio of approximately 1:0. 8

As approved by the document of China Securities Regulatory Commission [2008] No. 613, the principal undertaker CITIC Securities
Co., Ltd. issued 30 million common shares (Class A shares) through offline inquiry and placement in combination with online
subscription, pricing, and issue, at the price of RMB 18.78 per share. The raised funds mentioned above were verified by Bandung
Certified Public Accountants Co., Ltd. which issued the capital verification report (Wan Kuai Ye Zi [2008] No. 19). The stocks of the
Company were listed and traded at Shenzhen Stock Exchange on May 22, 2008. The Company changed its registered capital to RMB
120 million and completed the industrial and commercial change registration on July 22, 2008.

As reviewed and approved at the annual general meeting of shareholders of the Company of 2008, held on April 17, 2009, the total
share capital of the Company, namely 120 million shares as of December 31, 2008, was taken as the basis to convert capital surplus to
share capital. 10 bonus shares for every10 shares were converted to all shareholders, with a total of120 million shares converted. Thus,
the total share capital of the Company was changed to 240 million shares. The above change in the registered capital has been verified
by Bandung Asia Certified Public Accountants Co., Ltd. which has issued the capital verification report (Wan Ya Kuai Ye Zi (2009)
No. 2427), and the industrial and commercial change registration was completed on July 20, 2009.

As reviewed and approved at the annual general meeting of shareholders of the Company of 2009, held on February 26, 2010, the total
share capital of the Company, namely 240 million shares as of December 31, 2009, was taken as the basis to convert capital surplus to
share capital. 5 bonus shares for every 10 shares were converted to all shareholders, and a total of 120 million bonus shares were
converted. Thus, the total share capital of the Company was changed to 360 million shares. The above change in the registered capital
has been verified by Crowe Horwath Certified Public Accountants Co., Ltd. which has issued the capital verification report (Hao Hua
Yan Zi [2020] NO. 20). The industrial and commercial change registration was completed on March 30, 2010.

As approved by the China Securities Regulatory Commission in its Reply on Approving Non-public Issuing of Stocks by Goertek
Acoustic Inc. (Zheng Jian Xu Ke [2010] No. 1255), on September 29, 2010, the Company had the principal underwriter CITIC
Securities Co., Ltd. to issue 15.791275 million (Class A shares) to 5 specific objects through private issuing at the price of RMB 33.01
per share. The net amount of actual raised funds was RMB 506.21998775 million. The raised funds above have been verified byCrowe
Horwath Certified Public Accountants Co., Ltd. which has issued the capital verification report (Hao Hua Yan Zi [2010] No. 90. The
Company changed its registered capital to RMB 375.791275 million and completed the industrial and commercial change registration
on December 13, 2010.

As reviewed and approved at the annual general meeting of shareholders of the Company of 2010, held on May 25, 2011, the total
share capital of the Company, namely 375.791275 million shares as of December 31, 2010, was taken as the basis to convert capital
surplus to share capital. 10 bonus shares for every 10 shares were converted to all shareholders, and a total of 375.791275 million
bonus shares were converted. Upon such conversion, the total share capital ofthe Company was changed to 751.582550 million shares.
The above change in registered capital has been verified by Crowe Horwath Certified Public Accountants Co., Ltd. which has issued
the capital verification report (Guo Hao Yan Zi [2011] No. 49), and the industrial and commercial change registration was completed
on June 24, 2011.

As approved by the China Securities Regulatory Commission in its Reply on Approving Non-public Issuing of Stocks by Goertek
Acoustic Inc. (Zheng Jian Xu Ke [2012] No. 108), GF Securities Co., Ltd. issued 96.434183 million shares (Class A shares) in RMB
to 10 specific objects through private issuing at the price of RMB 24.69 per share, and the net amount of the actually raised funds was
RMB 2,320.77885875 million. The raised funds mentioned above have been verified by Crowe Horwath Certified Public Accounts
Co., Ltd. (special general partnership) which has issued the capital verification report (Guo Hao Yan Zi [2012] No. 408A14). The

Company changed its registered capital to RMB 848,016,733 and completed the industrial and commercial change registration on May
7, 2012.

As reviewed and approved at the Company's general meeting of shareholders of 2012 held on May 9, 2013, the Company's total share
capital of848,016,733 sharesasofDecember 31,2012, wastaken asthebasisfordistributingcashdividendsofRMB1.5 (taxinclusive)
for every 10 shares to all the shareholders, with cash dividends of RMB 127,202,509.95 in total. The Company also converted capital
surplus to share capital, and 8 bonus shares for every 10 shares were converted to all shareholders, with a total of 678,413,386 shares
converted. Upon such conversion, the total share capital of the Company was changed to 1,526,430,119 shares. The above change in
the registered capital has been verified by Crowe Horwath Certified Public Accountants Co., Ltd. (special general partnership) which
has issued the capital verification report (Guo Hao Yan Zi [2013] No. 408A0001). The industrial and commercial change registration
was completed on June 19, 2013.

On June2, 2016, thenameof Goertek AcousticInc. waschanged to GoertekInc. Astheholder oftheconvertiblebondsofthe Company
requested conversion of shares, the registered capital of the Company was changed to RMB 1,526,581,348. The scope of business was
changed to development, manufacturing and sales of: Acoustic, optical and wireless communication technologies and related products,
robots and automation equipment, intelligent electromechanical and information products, precision molds for electronic products,
precision hardware, semiconductor products and MEMS products, consumer electronics, LED package and relevant application
products; Development and salesof the software related to the above products; Services related to theabove technologies and products;
Import and export of goods and technologies (excluding radio transmission and satellite receiving equipment, except for the items
prohibited by the national laws and regulations). (For the items requiring approval by law, business activities may only be conducted
in respect thereof upon approval of relevant department)

As reviewed and approved at the Company's annual general meeting of shareholders of 2016, held on April 14, 2017, the Company's
total share capital of 1,538,642,707 shares as of April 27, 2017, on which the profit distribution equity of the Company was registered,
was taken as the basis for the distribution of cash dividends RMB 1.5 (tax inclusive) for every 10 shares to all the shareholders, with a
total of RMB 230,796,406.05 distributed. 10 shares per every 10 shares were converted to all shareholders as well.

According to the Proposal on Redemption of ''Goertek Convertible Bonds'' reviewed and approved at the 8th meeting of the 4th Board
ofDirectorsheldbytheCompanyonMay23,2017,itwasresolvedtoexercisetheconditionalredemptionrightof''GoertekConvertible
Bonds'' to redeem all the unconverted ''Goertek Convertible Bonds'' at the price of the par value of the bonds plus the accrued interest
for current period. ''Goertek Convertible Bonds'' was no longer traded and converted from June 30, 2017. After the above change, the
Company changed its registered capital to RMB 3,245,103,948, and completed the industrial and commercial change registration on
November 3, 2017.

According to the Proposal on Early Redemption of ''Goertek Convertible Bonds No. 2'' reviewed and approved at the 13th meeting of
the 5th Board of Directors and the 11th meeting of the 5th Board of Supervisors held by the Company on January 15, 2021, it was
resolved to exercise the conditional redemption right of ''Goertek Convertible Bonds No. 2'' to redeem all the ''Goertek Convertible
Bonds No. 2'', at the price of the par value of the bonds plus the accrued interest for the current period. As of March 3, 2021, ''Goertek
Convertible Bonds No. 2'' was no longer traded and converted. After the above change, the Company changed its registered capital to
RMB 3,416,321,036, and completed the industrial and commercial change registration on June 22, 2021.

The Company's initial grant of certain stock options under the 2021 Stock Option Incentive Plan entered its first exercise period on
June 24, 2022. Due to employees' exercise of the right, the Company issued 4,082,164 Class A Shares to the incentive targets. The
share capital of the Company has been changed to RMB 3,420,403,200.

The registered address of the Company headquarters: 268 Dongfang Road, Weifang Hi-Tech Industrial Development Zone.

The Company and its subsidiaries (collectively, ''the Group'') are mainly engaged in the business of electronic components. The main
business of the Group is categorized into the industry of the manufacturing of computer, communication, and other electronic
equipment. The Company's main products include acoustics, optics, microelectronics, structural components and other precision
components, as well as smart hardware products such as TWS smart earphones, virtual reality (VR)/augmented reality (AR) products,
smart wearable devices, gaming console and accessories, and smart home products.

These financial statements have been approved by the Board of directors of the Company on April 17, 2023.

As of December 31, 2022, the Group has included a total of 57 subsidiaries into its scope of consolidation, and for details, please refer
to NoteIX “Equityin Other Entities”. In termsofconsolidated scope, theGroup inthecurrent periodgained 8 subsidiaries anddisposed
of 2 subsidiaries compared with the previous year. For details, please refer to Note VIII "Changes in the Scope of Consolidation".


IV. Basis for Preparing the Financial Statement

1. Basis for the preparation

The Group has prepared the financial statements on a going concern basis, based on the actual transactions and matters in accordance
with The Accounting Standards for Business Enterprises - Basic Standards (issued by Order No. 33 of the Ministry of Finance and
amended by Order No. 76 of the Ministry of Finance) issued by the Ministry of Finance, 42 specific accounting standards, application
guidelines of accounting standards for business enterprises, explanations on the accounting standardsfor business enterprises and other
related regulations (hereinafter collectively referred to as "Accounting Standards for Business Enterprises") issued and amended on or
after 15 February, 2006, and Preparation Rules for Information Disclosure by Companies Offering Securities to the Public No. 15 -
General Provisions on Financial Reports (2014 Revision) issued by CSRC.

According to relevant provisions in the Accounting Standards for Business Enterprises, the accounting calculation of the Group was
on the accrual basis. The value of non-current assets held for sale shall be lesser of non-current assets held for sale less the sales cost
at fair value, or the original book value at the time when the hold-for-sale conditions were met. In case of asset impairment, the
appropriate impairment provision shall be accrued according to relevant regulations.

2. Continue as a going concern

The Company evaluated its ability to continue as a going concern for 12 months after the end of the current reporting period, without
matters or circumstances causing significant doubt over the abilityto continue as a going concern. Therefore, these financial statements
were prepared on a going concern basis.

V. SignificantAccounting Policies andAccounting Estimates

Notes to specific accounting policies and accounting estimates:

The Group has formulated several specific accounting policies and accounting estimates in respect of the revenue recognition, research
and development costs and other transactions and matters, according to the provisions of relevant Accounting Standards for Business
Enterprises on the basis of the actual production and operation characteristics. For details, please refer to the descriptions in “32.
Revenue” and “24(2). Accounting policy for internal research and development costs” of Note V. For explanation on the major
accounting judgments and estimates made by the management, please refer to “37. Other important accounting policies and accounting
policies and estimates” of Note V.

1. Statement of compliance withAccounting Standards for Business Enterprises

The financial statements have been prepared by the Group in compliance with the requirements of the Accounting Standards for
Business Enterprises, and give a true and complete viewofthe financial status ofthe Companyand the Group as at December 31, 2022,
as well as the business performance, and cash flows and other relevant information for the year 2022. In addition, the financial
statements of the Company and the Group comply in all material aspects with the requirements concerning disclosure of the financial
statements and the notes specified in Preparation Rules for Information Disclosure by Companies Offering Securities to the Public No.
15 - General Provisions on Financial Reports (2014 Revision) by CSRC.

2.Accounting period

The accounting period of the Group is divided by annual accounting period and interim accounting period. Interim accounting period
means a reporting period that is shorter than a complete accounting year. The Company adopts the calendar year as its accounting year,
namely January 1 to December 31 of each year.

3. Business cycle

The normal business cycle means the period from the Group’s purchase of the assets for processing to realization of cash or cash
equivalents. The Group takes 12 months as a business cycle and adopts the business cycle as liquidity classification standard for assets
and liabilities.

4. Functional currency

RMB is the currency in the main economic environment in which the Company and its domestic subsidiaries are operated, and the
Company and its domestic subsidiaries take RMB as the functional currency. Goertek (HongKong) Co.,Limited, Goertek Technology
(Hong Kong) Co.,Limited, Goertek Microelectronics (Hong Kong) Co., Ltd., OPTIMAS CAPITAL PARTNERS FUND LP and
Goertek Microelectronics Holdings Co., Ltd. take USD as their functional currency, and all other overseas subsidiaries ofthe Company
take the lawful currency of the country or region where their registered addresses are located as their functional currency. The currency
adopted by the Group in preparing these financial statements is RMB.

5.Accounting treatments for business consolidation of enterprises under and not under common control

Business consolidation means the transaction or matter in which two or more separate enterprises are consolidated into one reporting
entity. Business consolidation is divided into business consolidation of enterprises under common control and business consolidation
of enterprises not under common control.

(1) Business consolidation of enterprises under common control

Business consolidation of enterprises under common control is the consolidation in which enterprises consolidated are controlled by
the same party or parties before and after the consolidation, and such control is not temporary. In the business consolidation of
enterprises under common control, the party which acquires the control of other enterprises in the business consolidation is the
consolidating party and the other enterprises in the business consolidation are the consolidated parties. Business consolidation date is
the date on which the consolidating party actually acquires the control of the consolidated parties.

Theassets and liabilitiesacquiredbytheconsolidatingpartyare measured on thebasisofbookvalueof consolidatedpartiesonbusiness
consolidation date. The difference between the book value of the net assets acquired by the consolidating party and the book value of
the consideration paid for the consolidation (or total par value of the shares issued) is adjusted to capital surplus (share capital
premiums). Adjustments shall be made to undistributed profits in the event that the capital surplus (share capital premiums) are not
sufficient for write-down.

Any direct costs incurred by the consolidating party as a result of the business consolidation are recognized in the profit or loss for
current period when incurred.

(2) Business consolidation of enterprises not under common control

Business consolidation of enterprises not under common control is the consolidation in which the enterprises consolidated are not
controlled by the same party or parties before and after the business consolidation. In the business consolidation of enterprises not
under common control, the party which acquires the control of other enterprises in the business consolidation on the acquisition date
is the consolidating party and the other enterprises in the business consolidation are the acquired parties. Acquisition date is the date
on which the acquiring party actually acquires the control of the acquired parties.

In the business consolidation of enterprises not under common control, the cost of consolidation includes the fair value of assets paid,
liabilities incurred or assumed and equity securities issued by the acquiring party in exchange for the control of the acquired parties on
the acquisition date, the audit, legal service, assessment, consulting and other intermediate fees incurred for business consolidation of
enterprises, and other management fees, which are recognized in the profit or loss for the current period when incurred. The costs of
the acquiring party for issuing equity or debt securities as part of the business consideration for the business consolidation are included
in the initially recognized amount of these equity or debt securities. The contingent business consideration shall be included in the
consolidation costat itsfair value on theacquisition date, and thegoodwill shall beadjusted and combined accordinglyif thecontingent
consideration needs to be adjusted when newor further evidences arise in connection with the circumstances existing on the acquisition
date within 12 months after the acquisition date. The acquisition cost incurred by the acquiring party and the identifiable net assets
acquired in the business consolidation shall be measured at the fair value on the acquisition date. If the consolidation cost is higher
than the fair value of the identifiable net assets acquired from the acquired parties on the acquisition date, the difference thereof shall
be recognized as the goodwill. If the consolidation cost is lower than the fair value of the identifiable net assets acquired from the
acquired parties in the business consolidation, the fair value of the identifiable assets, liabilities and contingent liabilities as well as the
measurement of the consolidation cost shall be first reviewed. If upon review, the consolidation cost is still lower than the fair value of
the identifiable net assets acquired from the acquired parties in the business consolidation, such difference shall be recognized in the
profit or loss for current period.

If the deductible temporary difference acquired by the acquiring party from the acquired parties is not recognized for failure to meet
the conditions for recognition of the deferred tax assets on the acquisition date, and if new or further information is obtained within 12
months after the acquisition date, showing that relevant circumstances on the acquisition date have already existed and it is expected
that the economic benefits brought about by the deductible temporary difference of the acquiring party on the acquisition date may be

realized, relevant deferred tax assets shall be recognized and the goodwill shall be reduced. If the goodwill is insufficient for write-
down, the difference will be recognized in the profit or loss for current period. In addition to the above condition, the deferred tax
assets recognized in connection with the consolidation of enterprises shall be recognized in the profit or loss for current period.

If the business consolidation of enterprises not under common control is realized step by step through multiple transactions, whether
such transactions fall within a “package deal” shall be judged according to the standards for judgment of “package deal” in the Notice
by the Ministry of Finance of Issuing the Interpretation No. 5 of the Accounting Standards for Business Enterprises (Finance and
Accounting [2012] No. 19) and Article 51 of the Accounting Standards for Business Enterprises No. 33 - Consolidated Financial
Statements (see 6(2) of Note V). If they fall within "package deal”, see the description in the previous paragraphs of this part and “18.
Long-term equity investments” of Note V for accounting treatment. If they do not fall within “package deal”, relevant accounting
treatment shall be distinguished for individual financial statements and consolidated financial statements:

In the individual financial statements, the sum of the book value of the equity investment of the acquired parties held before the
acquisitiondateandtheincreasedinvestment cost on theacquisitiondateshallbetaken astheinitial investment cost ofsuch investment.
Ifothercomprehensiveincomeis involved intheequityoftheacquired partiesheldbeforetheacquisitiondate,theaccountingtreatment
of other comprehensive incomes while disposing such investment, shall be conducted on the same basis as the direct disposal of related
assets or liabilities by the acquired parties.

In the consolidated financial statements, the equity of the acquired parties held before the acquisition date shall be remeasured at the
fair value of such equity on the acquisition date, and the difference between the fair value and its book value shall be recognized in
investment income in current period. If other comprehensive income is involved in the equity of the acquired parties held before the
acquisition date, the accounting treatment of other comprehensive incomes related, shall be conducted on the same basis as the direct
disposal of related assets or liabilities by the acquired parties.

6. Method for Preparing the Consolidated Financial Statement

(1) Principles for determination of the scope of consolidated financial statements

The scope of the consolidation of consolidated financial statements shall be determined on the basis of control. Control means that the
Group enjoys variable returns through its power in the invested parties and its participation in relevant activities of the invested parties,
and is able to influence the amount of such returns by applying its power in the invested parties. The Company and all its subsidiaries
are included in the scope of consolidation. Subsidiary means the entity controlled by the Group.

The Group shall launch re-assessment, if the changes in relevant facts and circumstances that lead to changes in relevant elements of
the above control definition occur.

(2) Method for preparing the consolidated financial statements

The Company shall include the subsidiaries into the scope of consolidation from the date when it obtains the net assets and actual
control over the production and operation decisions of the subsidiaries. It shall cease to do so as of the date when the actual control is
lost. For the disposal subsidiaries, the business performance and cash flows prior to the disposal date have been appropriately included
in the consolidated income statement and consolidated statement of cash flows. The opening balanceofthe consolidated balance sheets
shall not be adjusted for the subsidiaries disposed in current period. For the subsidiaries added through the consolidation of enterprises
not under common control, the business performance and cash flows have been appropriately included in the consolidated income
statement and consolidated cash flow statement after acquisition date. The opening balance and comparative figures of consolidated
financial statements shall not be adjusted. For the subsidiaries added during consolidation of enterprises under common control and
the subsidiaries under absorption consolidation, the business performance and cash flows, from the beginning of current period to
consolidation date, have been appropriately included in consolidated income statement and consolidated cash flow statement. The
comparison figures in the consolidated financial statements shall be adjusted at the same time.

In preparing the consolidated financial statements, if the accountingpolicies or accounting periodsofthe subsidiaries are different from
those of the Company, the financial statements of the subsidiaries shall be adjusted based on the accounting policies and accounting
periods of the Company. The individual financial statements of the subsidiaries acquired from consolidation of enterprises not under
common control are adjusted based on the fair value of the identifiable net assets on the acquisition date.

All the material account balances, transactions and unrealized profits within the Group shall be offset during preparation of the
consolidated financial statements.

The shareholders' equity and current net profits or losses of the subsidiaries which are not owned by the Company shall be separately
listed under the shareholders' equity and net profit in the consolidated financial statements as minority interest and minority interests.
Thesecurrent profitsor lossesofthesubsidiarieswhich areattributabletotheminorityinterest shall bepresented as“minorityinterests”
under the net profit of the consolidated financial statements. If the losses of the subsidiaries attributed to the minority shareholders are

more than the shareholders’ equity owned by the minority shareholders in such subsidiaries at the beginning of the period, the minority
interests shall be offset.

If the control of the previous subsidiaries is lost due to disposal of some equity investments or for any other reasons, the remaining
equity shall be re-measured at fair value on the date when control is lost. The difference between the sum of consideration received
from disposal of equity and the fair value of the remaining equity, and the Company’s share of the previous subsidiaries’ net assets
calculated at the previous shareholding proportion from the acquisition date, shall be recognized in investment income in the period
when control is lost. Other comprehensive income related to the equity investment of the previous subsidiaries shall be conducted on
the same basis as the direct disposal of related assets or liabilities by the acquired parties when the control is lost (Except for the change
caused by the re-measurement of net liabilities or net assets of the defined benefit plan in the previous subsidiary, the remaining part
shall be converted into investment income for current period). Thereafter, such remaining equity shall be subject to subsequent
measurement according to the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments or Accounting
Standards for Business Enterprises No. 22 - Confirmation and Measurement of Financial Instruments and other relevant regulations.
For details, please refer to “18. Long-term equity investments” of Note V or “9. Financial instruments” of Note V.

If the Group disposes of the equity investment of the subsidiaries step by step through multiple transactions until it loses the control
thereof, it is necessary to determine whether such transactions fall within "a package deal". The multiple transactions shall be taken as
"package deal" for accounting treatment, if the terms, conditions and economic impacts of the transactions undertaken to dispose the
equity investment of the subsidiaries meet one or more of the following conditions: ① these transactions are entered into at the same
time or with their impacts on each other considered; ② a complete business result may be achieved only when these transactions when
taken as a whole; ③ one transaction depends on at least one of the other transactions; ④ one transaction is not economical on its own,
but it is economical when considered together with other transactions. If they do not fall within "package deal", each of them shall be
subject to accounting treatment according to the principles applicable to ''Partial disposal of the long-term equity investments in the
subsidiaries without losing control'' (for details, please refer to (2) ④ of 18 of Note V) and ''Loss of control of the previous subsidiaries
due to disposal of some equity investments or for any other reasons'', as appropriate. If the transactions taken to dispose of the equity
investment in the subsidiaries until loss of control are recognized as “package deal”, these transactions shall be subject to accounting
treatment as one transaction in which the subsidiaries are disposed and the control is lost. However, the difference between the price
for each disposal before the control is lost and share of such subsidiaries’ net assets as a result of disposal of investment, shall be
recognized in other comprehensive income in the consolidated financial statements, and be included in profit or loss for the period
when the control is lost.

7. Criteria for determining cash and cash equivalents

Cash and cash equivalents of the Group include cash on hand, deposits available at any time for payment, and short-term (generally
due within three months from the date of purchase) and highly liquid investments which are readily convertible into known amounts
of cash and subject to an insignificant risk of changes in value.

8. Foreign currency business and foreign currency statement translation

(1) Conversion method of foreign currency transaction

A foreign currency transaction of the Group is translated into the functional currency at initial recognition, using the spot exchange
rate prevailing at the date of the transaction (it means, in most cases, the central parity of the foreign exchange rate announced by the
People's Bank of China on that day; the same hereinafter). However, a foreign currency exchange transaction or other foreign currency
exchange involved transaction of the Group is translated into the functional currency using the actual exchange rate.

(2) Translation method of monetary items denominated in foreign currencies and non-monetary items denominated in foreign
currencies

The foreign currency monetary items on the balance sheet date are translated at the spot exchange rate on the balance sheet date, and
the exchange differences arising therefrom are included in the current profits and losses, except for the exchange difference of the
principal and interest of foreign currency special loans related to the acquisition and construction of assets eligible for capitalization.
Non-monetaryitems denominated in foreign currencythat are measured at historical cost shall still bevalued in the functional currency
and converted at the spot exchange rate as of the transaction date. Non-monetary items denominated in foreign currency that are
measured at fair value are converted by using the exchange rate at the date when fair value is determined and the difference between
the converted functional currency amount and theprior amount in functional currencyis recorded as profit or loss arising froma change
in fair value (including exchange rate change) for the current period or other comprehensive income.

(3) Translation method of foreign currency financial statements


The foreign currency financial statements of overseas operations shall be converted into Chinese currency statements in accordance
with the following methods: The assets and liabilities items in the balance sheet are translated at the spot exchange rate on the balance
sheet date; except for "undistributed profits", other items of shareholder's equity are converted at the spot exchange rate at the time of
occurrence. Revenues and expenses in the profit statement are translated using the average exchange rates prevailing in the period of
the transactions. Undistributed profits in the beginning of the year are the undistributed profits at the end of the prior year as translated;
undistributed profits at the end of the period are calculated and presented according to the translated profit distributions; exchange
differences from translation between translated assets and translated liabilities and equities are recognized in other comprehensive
income as exchange differences from translation. When the Group disposes of, and loses the control over, an overseas operation,
exchange differences from translation which are presented in “equity” of the balance sheet and related to the overseas operation are,
all or based on the disposal proportion, transferred to the profit or loss of the period of disposal.

Cash flows denominated in foreign currencies and cash flows of overseas subsidiaries are translated using the average exchange rates
prevailing in the period of the cash flows. Any impact of exchange rate changes on cash is presented as a separate adjusting item in the
cash flow statement.

The amount in the beginning of the year and the actual amount of the prior year are presented as translated amounts based on the prior
year’s financial statements.

When all the equities of the Group in an overseas operation are disposed, or the control over an overseas operation is lost for a disposal
of partial equity investments or any other reason, exchange differences which are presented in “shareholder’s equity/owner’s equity”
of the balance sheet, related to the overseas operation and attributable to the parent company are all transferred to the profit or loss of
the period of disposal.

If the proportion of equities in an overseas operation declines (but the control over that overseas operation is not lost) for a disposal of
partial equity investments or any other reason, exchange differences which are related to that partial disposal are attributed to minority
interest and not transferred to the profit or loss of the period of disposal. When the disposal of overseas operation involves a part of the
equities in an associate or joint venture, exchange differences from translation which are related to the overseas operation are, based
on the disposal proportion, transferred to the profit or loss of the period of disposal.

For any monetary item denominated in a foreign currency which is substantially net investment in an overseas operation, in the
consolidated financial statements, exchange differences fromthe exchange rate changes are recognized in other comprehensive income
as “exchange differences from translation”, and when the overseas operation is disposed, are transferred to the profit or loss of the
period of disposal.
9. Financial instruments

A financial asset or financial liability shall be recognized when the Group becomes a party to a financial instrument contract.

(1) Classification, recognition and measurement of financial assets

Pursuant to the business model of managing financial assets and the contractual cash flow characteristics of financial assets, financial
assets are classified by the Group into financial assets at amortized cost, financial assets at fair value through other comprehensive
income, and financial assets at fair value through profit and loss.

Financial assets, when initiallyrecognized, shall be measured at fair value. For the financial assets measured at fair value through profit
and loss, the related transaction costs shall be included directly into current profits and losses. For the financial assets or financial
liabilities of other categories, the related transaction costs shall be included in the initially recognized amount. For the accounts
receivable or notes receivable arising from the sale of products or the provision of labor services, which do not include or consider
major financing components, the amount of consideration that theGroup is expected to be entitled to is taken as the initiallyrecognized
amount.

① Financial assets measured at amortized cost

The Group’s business model for managing financial assets is aimed to collect contractual cash flow, and the contractual cash flow
characteristics of such financial assets are consistent with the basic lending arrangement, i.e., the cash flow generated on a specific date
is only the payment of principal and interest based on the amount of outstanding principal. For such financial assets, the Group shall
perform subsequent measurements at the amortized cost by effective interest method. The gains or losses arising from amortization or
impairment shall be included in current profits and losses.

② Financial assets at fair value through other comprehensive income

The Group's business model for managing this type of financial assets aims both to collect the contractual cash flow and to sell it, and
the characteristics of contractual cash flow of this type of financial assets shall be consistent with the basic lending arrangement. The
Group measures these financial assets at fair value and the changes thereof shall be included in other comprehensive income, but the

impairment losses or gains, exchange gains and losses and interest income calculated by the effective interest method shall be included
in current profits and losses.

Apart from that, the Group shall designate some investments in non-trading equity instruments as financial assets measured at fair
value and the changes thereof shall be included in other comprehensive income. The Group will include the relevant dividend income
of this type of financial assets into current profits and losses, and the changes in fair value into other comprehensive income. Upon the
termination ofrecognition of financial assets, the accumulated gains or losses previouslyincluded in other comprehensive income shall
be transferred out of other comprehensive income and transferred to the undistributed profits, other than being included in current
profits and losses.

③ Financial assets at fair value through profit or loss

The financial assets except those classified into financial assets measured at amortized cost and financial assets at fair value through
other comprehensive income as mentioned above, are classified by the Group into those measured at fair value through profit and loss.
In addition, at initial recognition, part of the financial assets can be recognized by the Group as financial assets measured at fair value
through profit and loss, to eliminate or significantly reduce accounting mismatch. The financial assets are subsequently measured by
the Group at fair value, and changes in fair value are included in current profits and losses.

(2) Classification, recognition and measurement of financial liabilities

At initial recognition, financial liabilities are classified into financial liabilities at fair value through profit and loss, and other financial
liabilities. For the financial liabilities at fair value through profit and loss, the related transaction costs shall be included directly in
current profitsand losses. Forother financial liabilities,therelated transaction costsshallbeincluded in theinitially recognized amount.
① Financial liabilities at fair value through profit and loss

The financial liabilities at fair value through profit and loss shall include financial liabilities held for trading (including derivatives
falling into the category of financial liabilities) and financial liabilities designated as those measured at fair value through profit or loss
at initial recognition.

Financial liabilities held for trading (including derivatives falling into the category of financial liabilities) shall be subsequently
measured at fair value. Except for hedging accounting, changes in fair value shall be included in current profits and losses.

The amount of change in the fair value of a financial liability which is designated as those measured at fair value through profit or loss
due to change in the Group’s own credit risks shall be included in other comprehensive income. Upon the termination of recognition
of such liability, the accumulative change in its fair value caused by the change of its own credit risk included in other comprehensive
income is transferred to undistributed profits. The changes in its fair value shall be recorded in current gains and losses. If the treatment
of the impact on the credit risk change of the financial liabilities in the above manner will cause or expand the accounting mismatch in
the profit and loss, the Group will recognize all the gains or losses (including the changes in the Group’s own credit risks) of the
financial liabilities into current profits and losses.

② Other financial liabilities

Other financial liabilities except those caused by the transfer of financial assets that do not conform to the conditions for derecognition
or continue to relate to the transferred financial assets and financial guarantee contracts shall be classified as financial liabilities
measured at amortized cost, which shall be subsequently measured at amortized cost, and the gains orlosses arising fromderecognition
or amortization shall be included in current profits and losses.

(3) Principle of recognition and measurement method of financial asset transfer

The financial asset shall be de-recognized if: ① The contractual right to receive cash flows of the financial asset is terminated; ②The
financial asset has been transferred and almost all risks and rewards in the ownership of the financial asset have been transferred to the
transferee; or ③ The financial asset has been transferred and the enterprise has neither transferred nor retained almost all risks and
rewards in the ownership of the financial asset, but has waived its control over the financial asset.

If the enterprise does not transfer or retain substantially all of the risks and rewards related to the ownership of a financial asset and if
the enterprise does not waive its control over the financial asset, it shall, according to the extent of its continuous involvement in the
transferred financial asset, recognize the relevant financial asset and recognize the relevant liabilities accordingly. The extent of
involvement in the financial asset transferred, refers to the company’s exposure to changes in the value of the financial assets.

If the overall transfer of a financial asset meets the conditions for de-recognition, the difference between the carrying value of the
transferred financial asset and the sum of the transfer consideration received and the change in fair value originally recognized in other
comprehensive income will be recognized in current profits and losses.

If the partial transfer of financial assets meets the conditions for derecognition, the carrying value of the transferred financial assets is
apportioned between the derecognized part and the non-derecognized part according to their respective relative fair values, and the

difference between the sum of the transfer consideration received and the change in fair value originally recognized in other
comprehensive income and apportioned to the de-recognition component and the aforesaid attributed carrying value will be recognized
in current profits and losses.

If a financial asset is sold with the right of recourse or an endorsement, the Group needs to determine whether almost all the risks and
rewards related to the ownership of the financial asset have been transferred. If all the risks and rewards related to the ownership of the
financial asset have been transferred to the transferee, the Group shall de-recognize the financial asset; If all the risks and rewards
related to the ownership of the financial asset have been retained, the Group shall not de-recognize the financial asset. If none of the
risks and rewards related to the ownership of the financial asset has been transferred or retained, the Group shall continue to determine
whether it retains the control over the asset, and the accounting standard stated in the aforesaid paragraphs shall apply.

(4) Derecognition of financial liabilities

When the current obligations of a financial liability (or part of it) have been discharged, the financial liability (or that part of the
financial liability) shall be de-recognized by the Group accordingly. When the Group (borrower) signs an agreement with a lender to
replace a financial liability with a new one, in case of substantially different terms of contract between the new one and the original
one, the Group shall derecognize the original one and recognize the new one. If a substantial modification is made to all (or part of)
the original financial liabilities by the Group, the original financial liabilities shall be de-recognized, and at the same time, a new
financial liability shall be recognized in accordance with the modified terms.

If all (or a part of) the financial liability is de-recognized, the difference between the carrying value allocated to the derecognized part
and the consideration paid (including the transferred non-cash assets or the liabilities assumed) is included in current profits and losses
by the Group.

(5) Offset of financial assets and financial liabilities

When the Group has the legal right to offset the recognized financial assets and financial liabilities, which is enforceable for the time
being, and the Group plans to settle on a netting basis or capitalize financial assets and serve financial liabilities, any net amount from
netting of financial assets and financial liabilities shall be included in the balance sheet. Otherwise financial assets and financial
liabilities shall be included separately in the balance sheet and shall not offset each other.

(6) Method of determining the fair value of financial assets and financial liabilities

Fair value refers to the price that market participants can receive by selling an asset or need to pay by transferring a liability in the
orderly transactions on the measurement date. The fair value of a financial instrument in an active market is determined by the Group
at the price quoted in the active market. The quotation in an active market refers to the price that is easily acquired from exchanges,
brokers, industry associations, pricing service agencies, and the like on a regular basis and represents the actual market transactions in
fair trade. Ifthereis no financial instrument in an active market, itsfair valueshall bedetermined bytheGroup viavaluation techniques.
Valuation techniques include looking into the prices used in recent market transactions by parties who refer to familiar situations and
trade voluntarilyand the current fair value of other financial instruments which are essentiallythe same, as well as using the discounted
cash flow method, the option pricing model and the like. During valuation, the Group shall adopt the valuation techniques applicable
under the current circumstances and supported by sufficient available data and other information, select the input values consistent
with the characteristics of assets or liabilities considered by market participants in the transactions of related assets or liabilities, and
give priorityto the relevant observable input values as much aspossible. Theunobservable input values are used onlywhen the relevant
input values are unavailable or impracticable.

(7) Equity instruments

An equity instrument is a contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. The
Group’s issuance (including refinancing), repurchase, sales or cancellation of an equity instrument shall be accounted for as a change
to equity. Transaction costs of an equity transaction are accounted for as a deduction from equity. The Group does not recognize
changes in the fair value of equity instruments.

If the Group's equity instruments distribute dividends (covering "interest" incurred by instruments classified as equity instruments)
during the existence thereof, the dividends shall be treated as profit distribution.

10. Impairment of financial assets

The financial assets for which the Group needs to recognize the impairment losses are financial assets measured at amortized cost,
which mainly include notes receivable, accounts receivable, other receivables, contract assets, and so on.

(1) Method for recognizing provision for impairment

Based on the expected credit loss, the Group shall make provision for impairment of the aforementioned items by its applicable
measurement method (general method or simplified method) of expected credit loss and recognize the credit impairment losses.


Credit loss means the difference between all contractual cash flows receivable by the Group in accordance with the contract and all
cash flows expected to be received, discounted at the original actual interest rate, i.e., the present value of all cash shortages. Purchased
or originated credit-impaired financial assets shall be discounted by the Group according to credit-adjusted effective interest rate
adjusted by credit of such financial assets.

According to the general methods to measure expected credit losses, the Group evaluates whether the credit risk of the financial assets
(including other applicable items; the same hereinafter) has increased significantly since the initial recognition at each balance sheet
date. If the credit risk of the financial instrument has increased significantly since the initial recognition, the Group measures its loss
allowance according to the amount equivalent to the expected credit loss of the financial instrument over its expected lifetime; if the
credit risk has not increased significantly since initial recognition, the Group measures its loss allowance according to the amount
equivalent to the expected credit loss of the financial instrument in the next 12 months. When assessing expected credit loss, the Group
gives consideration to all reasonable and well-founded information, including forward-looking information.

For financial instruments with relatively low credit risks on the balance sheet date, the Group assumes that their credit risks have not
increased significantly since initial recognition, and measures loss allowance based on the expected credit loss within the next 12
months.

(2) Criteria for judging whether the credit risks have increased significantly since initial recognition

When the default probability of a financial asset within the expected duration determined on the balance sheet date is significantly
higher than that in initial recognition, it suggests that the credit risks of the financial asset have significantly increased. Except under
special circumstances, the Group determines whether credit risks have increased significantly since initial recognition by estimating
the changes in lifetime risk of default occurring based on the changes in 12-month risk of default occurring as a reasonable.

(3) Grouping method for assessing the expected credit risks

The Group carries out separate credit risk evaluation for financial assets with significantly different credit risks, including receivables
in dispute with the other party or involving litigation or arbitration; accounts receivable where there are obvious signs that the debtor
may not be able to fulfill the repayment obligation, etc.

Except for the financial assets that are individually assessed for credit risks, the Group shall classify the financial assets into different
groups in view of the common risk characteristics, and assess the credit risks on the basis of groups.

(4) Accounting treatment methods for impairment of financial assets

At the end of a period, the Group shall calculate the expected credit loss of all types of financial assets. If the expected credit loss is
greater than the carrying value of its current provision for impairment, the difference shall be recognized as impairment loss; if it is
less than the carrying value of current provision for impairment, the difference shall be recognized as impairment gain.

(5) Determination method for measurement of expected credit losses of various financial assets

① Notes receivable

Fornote receivable, the Group measures loss allowance according to the amount equivalent to the expected credit lossover the lifetime.
Depending on their credit risk characteristics, notes receivable are classified into different groups:

Items Basis for determining groups

Bank acceptance notes The accepter is a bank with low credit risk

Commercial acceptance notes By accepter’s credit risk (the same as that of accounts receivable)

② Accounts receivable

For accounts receivable not containing significant financing components, the Group measures loss allowance according to the amount
equivalent to the expected credit loss over the lifetime.

Except for accounts receivable for which credit risk is assessed separately, depending on their credit risk characteristics, accounts
receivable is classified into different groups:

Items Basis for determining groups

Accounts Except for the receivables for which the loss allowance of impairment has been calculated separately, the Group
receivable shall determine, through present situation analysis, the proportion of allowance for bad debt based on the

aging group expected credit loss rate of identical or similar receivables in previous years with similar credit risk

characteristics classified by aging

Related party The parent and subsidiary companies included in the consolidated financial statements are divided into groups

group according to equity relationship.

③ Other receivables and factoring receivables


The Group measures impairment losses based on whether the credit risk of other receivables and factoring receivables has increased
significantly since initial recognition, using an amount equivalent to expected credit loss within the next 12 months or entire duration.
11. Notes receivable

For further details, please see this Note V. 9. “Financial Instruments” and 10. “Impairment of Financial Assets”.

12.Accounts receivable

For further details, please see this Note V. 9. “Financial Instruments” and 10. “Impairment of Financial Assets”.

13. Financing receivables

Notes receivable and accounts receivable which are classified as measured at fair value through other comprehensive income are
presented under “financing receivables” if they have original maturity up to one year (including one year) or under other debt
investments if they have original maturity more than one year. For relevant accounting policies, please see Note V. 9. ''Financial
Instrument'' and 10. ''Impairment of Financial Assets''.

14. Other receivables

Methods for determining and accounting the expected credit losses of other receivables

For further details, please see this Note V. 9. “Financial Instruments” and 10. “Impairment of Financial Assets”.

15. Inventories
(1) Classification of inventory

Inventory types include among others raw materials, goods in stock, revolving materials and unfinished in process.

(2) Valuation methods of inventory acquired and sold

When inventory is acquired, it is measured based on actual cost, including purchase cost, processing cost and other costs. When
inventory is acquired and sold, it is priced according to the monthly weighted average method.

(3) Determination method of the net realizable value of inventory and calculation method of depreciation allowance

Net realizable value means the estimated selling price of inventory less the estimated cost to be incurred by the time of completion, the
estimated selling expense and related taxes. In determining thenet realizable value ofinventory, based on obtained evidence, the Group
considers the purpose of the inventory and the impact of any matters occurring after the balance sheet date.

On the balance sheet date, inventory is measured at cost or net realizable value (whichever is lower). If the net realizable value is lower
than its cost, the Group will make provision for inventorydepreciation. The provision for decline in the value ofinventories is generally
made at the difference between an inventory item’s cost and its net realizable value. For the inventory with a large quantity and
relatively low unit price, the inventory depreciation allowance is accrued based on the inventory category; for inventories associated
with product seriesmanufactured and sold in thesame area, with thesameor similar end useor purpose, and aredifficult tobemeasured
separately from other items, the depreciation allowances are consolidated and accrued. For raw materials with a large quantity and low
unit price, the provision of inventory depreciation is generally made according to the time the inventory has been kept.

After the provision of inventory depreciation is made, if the original trigger for inventory write-down has disappeared so that the net
realizable value of the inventory is higher than the carrying value, the amount of provision of inventory depreciation shall be reversed,
and the reversed amount shall be recognized in current profits and losses.

(4) The inventory system is a perpetual inventory system.

(5) Amortization method of revolving materials

The Group’s revolving materials include low-value consumables and packaging materials. Large revolving materials are amortized at
the time of receipt over months of the expected service life. Other low-value consumables are amortized at the time of receipt using
the one-off amortization method. Packaging materials are amortized at the time of receipt using the one-off amortization method.

16. Contract assets

The Group records the right where the customer has not paid the contract consideration but the Group has performed its contract
obligation and the Group is not prevented from being unconditionally paid by the customer (depending on the lapse of time only) as

contract assets in the balance sheet. Contract assets and contract liabilities under the same contract are listed on a net basis. Contract
assets and contract liabilities under different contracts will not be offset.

Please refer to Note V. 10. "Impairment of Financial Assets" for details of the method for determining and accounting the expected
credit loss of contract assets.
17. Contract costs

If the incremental cost incurred by the Group to acquire the contract is expected to be recovered, it is recognized as an asset as the
contract acquisition cost. However, if the amortization period for the asset does not exceed one year, the asset shall be recorded in
current profits and losses at the time of occurrence.

Acostincurred forperformingacontract which doesnot fall within theregulated scopeofaccountingstandardsfor businessenterprises
other than Accounting Standards for Business Enterprises No. 14 - Income (revised in 2017) shall be recognized as an asset if: ① such
cost directly relates to a current or expected contract, including direct labor, direct materials, manufacturing costs (or similar costs),
costs clearly borne by customers and other costs only incurred due to the contract; ② such cost increases the resources of the Group
for fulfilling its obligations in the future; and ③ such cost is expected to be recoverable.

The assets related to contract costs are amortized on the same basis as the revenue recognition of goods related to the assets, and are
recorded in the current profits and losses.

18. Long-term equity investments

Long-term equity investments in this part refer to the long-term equity investments through which the Group has control, joint control
or significant influence over investee. The long-term equity investments through which the Group does not have control, joint control
or significant influence over investee, is taken as a financial asset at fair value recorded in current profits and losses. If it is non-trading,
the Group can choose to designate it as a financial asset at fair value recorded in other comprehensive income at initial recognition.
For details about the relevant accounting policy, please see this Note V. 9. “Financial Instrument”.

Joint control refers to theGroup’scommon control of an arrangement in accordance with relevant agreement, and the relevant activities
of the arrangement must be unanimously agreed by the participants sharing the control before a decision can be made. Significant
influence refers to the Group’s right to participate in the decision-making of an invested entity's financial and operational policies, but
not to control or jointly control the formulation of these policies with other parties.

(1) Determination of investment cost

For long-term equity investments arising from business combination under the same control, the proportion of the carrying value of
the stakeholders’ equity of the merged party in the consolidated financial statements of the final controlling party is regarded as the
initial investment cost of long-term equity investments on the combination date. If there is a difference between the initial investment
costoflong-termequityinvestments and thecash paid,non-cash assets transferred, and carrying valueofliabilitiesassumed, thecapital
surplus shall be adjusted. Where the capital surplus is insufficient to absorb the difference, undistributed profits shall be adjusted. The
investments cost which adopts the equity securities issued as the consideration should be adopted as the initial investments cost of the
long-term equity investments according to the proportion of the carrying value of the stakeholders’ equity of the merged party in the
consolidated financial statements of the final controlling party, and adjust the capital surplus by the difference between the initial
investments cost of long-term equity investments and the amount of issued stock’s face value (regarded as share capital). If the capital
surplus is insufficient to absorb the difference, undistributed profits should be adjusted. If the equity of the acquiree under the same
control is acquired step by step through multiple transactions leading to a merger of enterprises underthe same control, the transactions
shall be confirmed whether they belong to a “package transaction”: If they belong to a “package transaction”, all transactions shall be
treated as one transaction over which the acquiree has control. If it is not a “package transaction”, the Group regards the initial cost of
the long-term equity investments as the proportion of the shareholders' equity of the acquired enterprise to the carrying amount in the
consolidatedfinancial statements ofthefinalcontrollerat thedateofcombination.Ifthereisadifferencebetween theinitialinvestments
cost of long-term equity investments on the date of combination and the sum of the carrying value of the long-term equity investments
before the merger plus the carrying value of the new share payment consideration on the date of combination, the capital surplus shall
be adjusted. Where the capital surplus is insufficient to absorb the difference, undistributed profits shall be adjusted. If the equity
investment held before the combination date is measured using the equity method or recorded as a financial asset at fair value in other
comprehensive income. The other comprehensive income recognized as a result will not be accounted temporarily.

For the acquisition of long-term equity investments involving enterprises under common control, the Group regards the initial cost of
the long-term equity investments at that date as business combination cost, including the sum of fair values of assets paid, liabilities
incurred or borne, and equity securities issued, by the buyer. If the equity of the acquiree is acquired step by step through multiple

transactions leading to a merger of enterprises under different control, the transactions shall be confirmed whether they belong to a
“package transaction”: If they belong to a “package transaction”, all transactions shall be treated as one transaction over which the
acquiree has control. If it is not a “package transaction”, the sum of the carrying value of the original equity investments plus the new
investments cost is regarded as the initial investments cost of long-term equity investments calculated by the cost method. If the
previous equity is measured using the equity method, the relevant other comprehensive income will not be accounted temporarily.

Acquisition-related costs including auditing fees, legal services fees, valuation advice fees and other relevant management fees are
generally recognized in profit or loss as incurred.

A long-term equity investments acquired other than through a business combination is initially measured at the cost, and such cost is
determined at the amount of cash paid by the Group, the fair value of the equity securities issued by the Group, the value agreed in an
investment contract or agreement, the fair value or carrying value of asset exchanged in the non-monetary asset exchange, or the fair
value of the long-term equity investments. Costs, taxes and other necessary expenses directly related to the acquisition of the long-term
equity investments are also included in the investment cost. If additional investments addition has a significant influence over investee,
or jointly control other than the control over investee, the cost of long-term equity investments shall be the sum of the fair value of the
original equity investments determined according to Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments and the cost of the additional investment.

(2) Method of subsequent measurement and recognition of profits and losses

The long-term equity investments through which the Group has joint control (except for joint operation) or significant influence over
investee shall be calculated by the equity method. The Group's financial statements use the cost method to calculate long-term equity
investments that constitutes control over invested entities.

① Long-term equity investments calculated by cost method

Under the cost method, a long-term equity investment is measured at initial investments cost. Increasing or reducing investments will
adjust the cost of long-term equity investments accordingly. Except for actual price paid when the investment is obtained or the cash
dividends or profits that are included in the consideration that has been declared but not yet disbursed, the current investment income
shall be recognized according to the cash dividends or profits declared by the invested entity.

② Long-term equity investments accounted by equity method

When the initial investments cost of long-term equity investments accounted under equity method is greater than the investments, the
difference in the fair value share of the identifiable net assets of the invested entity is enjoyed, without adjusting the initial investments
cost of long-term equity investments; when the initial investments cost is less than the investments, the difference in the fair value
share of the identifiable net assets of the invested entity is included in the current profits and losses, and the cost of long-term equity
investments shall be adjusted accordingly.

When the equity method is adopted, according to the share of the net profit and loss and other comprehensive income realized by the
invested entity, the investments income and other comprehensive income shall be recognized respectively, and the book value of the
long-term equity investments shall be adjusted; the book value of the long-term equity investments is reduced correspondingly in
accordance with the portion of the profits or cash dividends declared and distributed by the invested entity; for changes in owner’s
equity other than net profit and loss, other comprehensive income and profit distribution of the invested entity, the book value of long-
term equity investments shall be adjusted and included in capital surplus. The share of net profit and loss of the invested entity shall be
recognized, based on the fair value of various identifiable assets of the invested entity when the investment is made, after adjustment
ofthenet profit oftheinvested entity. When theaccountingpolicyand accountingperiod adoptedbytheinvested entityareinconsistent
with those of the Group, the investment income and other comprehensive income shall be recognized based on the adjusted financial
statementsoftheinvested entityin accordancewith theGroup'saccountingpoliciesand accountingperiod. For theGroup'stransactions
with its associates and joint ventures, if the invested or sold asset does not constitute a business, unrealized profits or losses resulting
from the transactions are recognized as investment income or loss to the extent that those attributable to the Group's equity interest are
eliminated. However, unrealized losses resulting from the Group's transactions with its invested entity in respect of impairment losses
on the transferred assets should not be eliminated. If the asset invested by the Group to its associates and joint ventures constitutes a
business, to the extent that the investor realizes long-term equity investments other than control, the fair value of the invested business
shall be the initial investments cost of the additional long-term equity investments, and the difference between the initial investments
cost and the carrying value of the invested business shall be recorded in the profit or loss of the current period. If the asset sold by the
Group to its associates and joint ventures constitutes a business, the difference between the consideration received and the carrying
value of the invested business shall be recorded in the profit or loss of the current period. If the asset purchased by the Group from its
associates or joint ventures constitutes a business, the accounting shall be made pursuant to the Accounting Standards for Business
Enterprises No. 20 - Business Combination shall apply, the gain or loss from the transaction shall be fully recognized.


The Group de-recognizes its share of net losses of the invested entity after the carrying amount of the long-term equity investments
together with any long-term interests that substantially constitute part of its net investments in the invested entity shall be written down
to zero. In addition, if the Group has the obligation to bear additional losses to the invested entity, the provisions shall be recognized
according to the expected obligations and be recorded in the investment losses ofthe current period. Where net profits are subsequently
made by the invested entity, the Group resumes recognizing its share of those profits only after its share of the profits exceeds the share
of losses previously not recognized.
③ Acquisition of minority interest

When preparing consolidated financial statements, if there is a difference between the new long-term equity investments acquired as a
result of the purchase of minority shares and the share of net assets continuously calculated from the date of purchase (or merger) of
the subsidiary based on the new shareholding ratio, the capital surplus shall be adjusted. Where capital surplus is insufficient to offset
the difference, the undistributed profits are adjusted.

④ Long-term equity investments disposal
Inconsolidatedfinancialstatements,whereaparentcompanypartiallydisposesofalong-termequityinvestmentinasubsidiarywithout
losing the control over it, the difference between the disposing price and the net assets of the subsidiary obtained from the disposal of
the long-term equity investments shall be recognized in the shareholder's equity. If it's partial disposal by a parent company of a long-
term equity investment in a subsidiary and the control over the subsidiary is lost, the accounting policy stipulated in this Note V. 6. (2)
"Method for Preparing the Consolidated Financial Statements" shall apply.

For disposal of long-term equity investments in other situations, the difference between the disposed equity’s book value and the actual
proceeds is included in the current profits and losses.

When the Group reduces its ownership interest in investee but continues to use the equity method for long-term equity investments,
other comprehensive income previously recorded as shareholders' equity is disposed in proportion, subject to the accounting treatment
applicable to the assets or liabilities related to direct disposal of the invested entity. The equity recognized by the Group, other than the
change of the net profits and loss, other comprehensive income and profit distribution of the invested entity, is transferred to current
profits and losses in proportion.

When the Group reduces its ownership interest but the Group continues to use the cost method for long-term equity investments, for
the other comprehensive income recognized by the Group using equity method prior to the control over the investee or under financial
instrument recognition and measurement standard, other comprehensive income previously recorded as shareholders’ equity is subject
to the accounting treatment applicable to the assets or liabilities related to direct disposal of the invested entity and is transferred to
current profits and losses in proportion. Then the other changes in shareholders’ equity recognized by the Group using equity method,
not arising from the change of the net profits and loss, other comprehensive income or profit distribution of the invested entity, are
reclassified to profit and loss in proportion.

If the Group loses its control over the invested entity due to the disposal of a portion of an equity investment, the equity method is
adopted in the preparation of individual financial statements when the remaining equity allows the Group to exercise joint control or
hold significant influence on the invested entity, and the remaining equity after disposal is regarded as being adjusted by the equity
method at the time of acquisition; if the remaining equity after disposal does not allow the Group to exercise joint control or hold
significantinfluenceontheinvestedentity,itiscalculatedinaccordancewiththerelevantprovisionsoffinancialinstrumentrecognition
and measurement standards, and the difference between the fair value and thebook value on the daywhen the control is lost is recorded
in current profits and losses. If other comprehensive income recognized, using the equity method or under the standards for recognition
and measurement of financial instruments before the Group obtains the control over the invested entity, is subject to the accounting
treatment applicable to the assets or liabilities related to direct disposal of the invested entity when the control over the invested entity
is lost, changes in the shareholders’ equity of the net assets of the invested entity recognized using the equity method, except for net
profits and losses, other comprehensive income and profit distributions, shall be transferred to current profits and losses when the
control over the invested entity is lost. Other comprehensive income and other shareholders’ equity are transferred in proportion when
the remaining equity after disposal is calculated by the equity method. If the remaining equity after disposal is calculated in accordance
with the standards for recognition and measurement of financial instruments, other comprehensive income and other shareholders’
equity are transferred in full.

If joint control or significant influence on the invested entity is lost by the Group due to the disposal of some equity investments, the
remaining equity after disposal is calculated according to the financial instrument recognition and measurement standards. The
difference between the fair value and the book value on the day when joint control or significant influence is lost is recorded in current
profits and losses. Other comprehensive income of the equity investment previously recognized using the equity method is subject to
the accounting treatment applicable to the assets or liabilities related to direct disposal of the invested entity when the Group stops
using the equity method. Shareholders’ equity recognized by the Group, other than the change of the net profits and loss, oth er

comprehensive income and profit distribution of the invested entity, is reclassified to profit and losses fully when the Group stops using
the equity method.

The equity investments in the subsidiary is disposed of step by step by the Group through multiple transactions until the control is lost.
The aforementioned transactions, if belong to package transactions, are disposed as one transaction for disposal of the equity
investments of the subsidiary and loss of control. The difference between the price of each disposal before the control is lost and the
carrying value of long-term equity investments related to the disposed equity are recorded in other comprehensive income, and then
transferred to the profit or loss of the current period when the control is lost.

19. Investment properties
Measurement of investment properties
Measurement by cost method
Depreciation or amortization method

Investment properties mean the properties held for the purpose of rent earning or capital appreciation, or both. It includes the land use
rights that have been leased, the land use rights that are held for transfer upon appreciation, and the leased buildings. In addition, the
vacant buildings held by the Group for the purpose of leases will also be reported as investment properties, if the board of directors (or
similar authority) makes a resolution in written form that expressly indicates that the buildings will be used for leases and the intention
of holding will not change in the short term.

Investment properties are initially measured at cost. Subsequent expenses related to investment properties shall, if economic profits
related to the property are likely to be gained and its costs can be measured reliably, be recorded as the cost of investment properties.
Other subsequent expenditures are recorded in the current profits and losses when incurred.

The Group adopts the cost model for subsequent measurement of investment properties. The investment properties are depreciated or
amortized in accordance with policies consistent with building or land use rights.

For method of impairment test and method of provision for impairment of investment properties, please see this Note V. 25.
“Impairment of Long-term Assets”.

When self-use properties or inventories are converted to investment properties, or investment properties are converted to self-use
properties, the value after the conversion shall be recognized at the carrying value before the conversion.

When investment properties are disposed or permanently withdrawn from use and is not expected to obtain economic benefits from its
disposal, the investment properties shall be de-recognized. The disposal income from the sale, transfer, abandonment or destruction of
investment properties less its carrying value and relevant taxes shall be recognized in current losses and profits.

20. Fixed assets
(1) Recognition criteria

Fixed assets mean the tangible assets held with a service life exceeding one fiscal year for the production of goods, provision of labor
services, leasing or management. Fixed assets may be recognized when they meet the following conditions: Economic benefits relating
to the fixed asset are likely to be gained by the Group, and the cost of the fixed asset can be measured reliably. Fixed assets are initially
measured at cost, with the influence of estimated abandonment cost taken into account.

(2) Depreciation methods

Category Depreciation methods Depreciable life Ratio of remaining value Annual depreciation

Houses and buildings Straight-line method 20-30 years 5%-10% 3%-4.75%

Production equipment Straight-line method 5-10 years 5%-10% 9%-19%

Test equipment Straight-line method 5-10 years 5%-10% 9%-19%

Office equipment Straight-line method 5 years 5%-10% 18%-19%

Transportation Straight-line method 5 years 5%-10% 18%-19%

equipment

(3) Recognition basis, valuation and depreciation method of fixed assets leased by financing

See Note 35. “Lease” for details

21. Construction in progress

The cost of construction in progress is determined at the actual construction expense, including various construction expenditures
incurred during the period of construction, capitalized borrowing costs and other related expenses before the project reaches the
predetermined conditions for use. Construction in progress is transferred to fixed assets when it has reached the working condition for
its intended use.

For the method of impairment test and method of provision for impairment of construction in progress, please see this Note V. 25.
“Impairment of Long-term Assets”.
22. Borrowing costs

Borrowing costs include interest on borrowing, amortization of discount or premium, auxiliary expenses and exchange differences due
to foreign currency borrowing, etc. Borrowing costs that can be directly attributable to the acquisition, construction or production of
assetseligibleforcapitalization shall becapitalized when theasset expenditurehasbeen incurred, theborrowingcost hasbeen incurred,
and the acquisition, construction or production necessary to make the asset reach the predetermined conditions for use or sale has
started, and the capitalization shall discontinue when the constructed or produced assets eligible for capitalization reach the
predetermined conditions for use or sale. The remaining borrowing costs are recognized as costs at the time of occurrence.

The amount to be capitalized is the actual interest expense incurred on the specific borrowings less any bank interest earned from
unused fundsofthedesignatedborrowingsor anyinvestment incomearisingfromthetemporaryinvestment ofthosefunds.The amount
to be capitalized on the general borrowings is calculated byapplying a capitalization rate to the weighted average ofthe excess amounts
of cumulative expenditures on the asset over and above the amounts of the specific borrowings. Capitalization rate is calculated and
determined based on the weighted average interest rate of general borrowings.

Duringtheperiodofcapitalization, exchangedifferencesarising fromspecial borrowingsin aforeign currencyshall be fullycapitalized,
and exchange differences arising from general borrowings in a foreign currency shall be recognized in profits and losses.

Assets eligible for capitalization refer to fixed assets, investment properties, inventories and other assets that need to go through quite
a long time of acquisition or production activities to reach the predetermined usable or salable state.

If an abnormal interruption of assets eligible for capitalization occurs in the process of acquisition, construction or production and
continues over 3 months, the capitalization of borrowing costs shall cease and shall not restart until the acquisition, construction or
production of such assets resume.
23. Right-of-use assets

See Note 35. “Lease” for details

24. Intangible assets

(1) Valuation method, service life and impairment test

Intangible assets mean the identifiable non-monetary assets owned or controlled by the Group without physical substance.

The intangible assets shall be initially measured at cost. Expenses related to the intangible assets are recognized in the cost ofintangible
assets when it is likely that the associated economic benefits will be gained by the Group and the associated costs can be measured
reliably. Other expenses related to the intangible assets are recognized in profit or loss for the period in which it is incurred.

The acquired land use right is generally recognized as intangible assets. Expenses related to land use right and construction cost from
buildings such as self-built factory, etc. are recognized as intangible assets and fixed assets, respectively. In the case of purchased
buildings, related costsareshared between thecost ofland userights and thecostofbuildings. Therelated coststhat cannot beallocated
reasonably are recognized as fixed assets.

When intangible assets with a finite useful life are available for use, their original cost is amortized over their estimated useful life
using the straight-line method. Intangible assets with uncertain service life shall not be amortized.

For intangible assets with a finite useful life, the Group reviews their useful life and amortization method at the end of the period, and
accounts for any change as a change in an accounting estimate. For intangible assets with uncertain service life, the Group reviews
their useful life. If it is evident that the duration of associated economic benefits is predictable, the useful life is estimated and the asset
is amortized pursuant to amortization policies for intangible assets with finite useful life.


(2)Accounting policy for internal research and development costs

The expenditure for research and development projects in the Group is divided into research phase expenditure and development phase
expenditure.

The classification into the expenditure in the research phase or the expenditure in the development phase in relation to internal R&D
projects of the Group conforms to the following standards:

Expenditures in the research phase are defined as those spent in an innovative, explorative and planned investigation to acquire and
understand new scientific or technical knowledge. The research is the preparation in documents and other aspects for further
development. It is very uncertain whether the completed research will move onto the development phase and whether the development
will lead to the emergence of an intangible asset. Therefore, the Group includes the expenditures in the research phase in expenses and
recognize them in the profit or loss of the current period.

Expenditures in the development phase refer to the expenditures incurred during the stage of applying research results or other
knowledge to a project or design to produce new or substantially improved materials, devices and products before commercial mass
production or use. As the development phase comes after the research phase, the majority of basic conditions for a new product or
technology have been established. Thus, the Group recognizes the expenditures in development phase eligible for capitalization as
intangible assets. Gross expenditures incurred in the period from the point when the conditions for capitalization are satisfied to the
point when intangible assets are ready for the intended purpose are capitalized. No adjustment will be made further for any expenditure
that has been included in expense and recognized in profit or loss before the same intangible assets have met the conditions for
capitalization in the development phase.

Expenditures in the research phase are included in the current profits and losses when incurred.

Expenditures in the development phase are recognized as intangible assets only when the following conditions are all satisfied, or are
included in the profit or loss of the current period:

① Having completed the intangible assets, enabling them to be technically feasible for use or sale;

② Having the intention to complete the intangible assets and use or sell them;

③ The ways in which intangible assets generate economic benefits, including the proof that there is a market for the product produced
using the intangible assets or for the intangible assets. Where the intangible assets are used internally, their usefulness shall be proved;
④ Having sufficient technical, financial and other resources to complete the development of the intangible assets, and having the
ability to use or sell the intangible asset;

⑤ Expenditures attributable to the development phase of the intangible assets can be measured reliably.

If it is impossible to distinguish between expenditures in the research phase and expenditures in the development phase, the R&D
expenditures incurred shall be included in the profit or loss of the current period.

(3) Method of impairment test and method of provision for impairment of intangible assets

For the method of impairment test and method of provision for impairment of intangible assets, please see this NoteV. 25 “Impairment
of Long-term Assets”.
25. Impairment of long-term assets

For non-current and non-financial assets including fixed assets, construction in progress, intangible assets with finite useful life,
investment properties measured at cost, and long-term equity investments in subsidiaries, associates and joint ventures, the Group
assesses whether there is an indication of impairment at the date of balance sheet. If there is such an indication, the Group estimates
the recoverable amount and carries out an impairment test. An impairment test shall be conducted every year for intangible assets with
uncertain goodwill and service life and those have not yet reached the usable state, regardless of whether there are signs of impairment.
If the impairment test results show that the recoverable amount of an asset is lower than its book value, the provision for impairment
is accrued according to the difference and is recorded in the impairment loss. The recoverable amount is the higher of the net amount
of the fair value of the asset less the disposal expenses and the present value of the expected future cash flow of the asset. The fair
value of an asset is measured as the price agreed in a sales contract concluded in good faith. In absence of any such sales contract, if
there is an active market for the asset, the best information available is used as a basis to estimate the fair value of the asset. Disposal
expenses include legal fees, taxes and transportation fees related to the disposal of an asset, and direct expenses incurred to make the
asset salable. The present value of expected future cash flows of an asset is measured by applying an appropriate discount rate to the
expected future cash flows generated duringthe continuoususe ofthe asset at the time offinal disposal. The asset impairment provision

is calculated and recognized on the basis of individual assets. In the case of difficulty in estimating the recoverable amount of an
individual asset, the recoverable amount of the asset group to which the individual asset belong is calculated. An asset group is the
smallest unit of combined assets that can generate cash inflows independently.

For goodwill listed separately in the financial statements, the carrying amount of such goodwill arising from business combinations is
allocated to relevant asset groups or asset group portfolios. If the test results show that the recoverable amount of asset groups or asset
group portfolio containing allocated goodwill is lower than its book value, the corresponding impairment loss shall be recognized. The
amount of impairment loss shall firstly be deducted from the carrying amount of goodwill embodied in the asset groups or asset group
portfolios, then be deducted from the carrying amounts of other assets based on the proportions of their carrying amounts in the asset
groups or asset group portfolios.

The impairment losses of assets will not be reversed in subsequent periods once recognized.

26. Long-term prepaid expenses

Long-term prepaid expenses refer to expenses that have already incurred but should be borne by the current and future instalments for
a period of more than one year. Long-term prepaid expenses shall be amortized according to the straight-line method within the
estimated period of benefit.
27. Contract liabilities

Contract liabilities are defined as the Group's obligation to transfer goods to a customer for received or receivable consideration from
the customer. The Group presents as contract liabilities, at the earlier time point of actual payment by a customer or the payment due,
if the Group has paid the contract consideration or the Group has acquired the right to collect unconditionally before the goods are
transferred by the Group to the customer. Contract assets and contract liabilities under the same contract are listed on a net basis.
Contract assets and contract liabilities under different contracts will not be offset.

28. Employee remuneration
(1)Accounting treatment of short-term remuneration

Short-term employee benefits include employee wages or salaries, bonuses, allowances and subsidies, employee welfare fees, medical
insurance contributions, maternity insurance contributions and work injury insurance contributions, housing provident fund
contributions, union running costs and employee education costs, and non-monetary benefits. During the accounting period when the
employees provide services for the Group, the short-term remuneration actually incurred is recognized as a liability and recorded in
the current profits and losses or related asset costs. The non-monetary welfare in short-term remuneration should be measured at fair
value.
(2)Accounting treatment of post-employment benefits

Post-employment benefit mainly covers basic pension insurance and unemployment insurance. Most ofpost-employment benefit plans
are mainly defined benefit plans. The defined benefit plans of the Group are basic pension insurance and unemployment insurance, and
the contributions thereto are recorded in the asset cost or the profit or loss of the current period when they occur.

(3)Accounting treatment of dismission welfare

Where the Group terminates the labor relationship with an employee before the labor contract expires, or offers proposed compensation
for encouraging the employee to accept theredundancies voluntarily, if theGroup cannot unilaterallywithdrawthe termination benefits
provided by the termination of labor relations plan or reduction proposal, and the Group recognizes the costs related to the
reorganization involving the payment of the termination benefits (whichever comes first), the employee remuneration liabilities arising
from the termination benefits are recognized and recorded in the current profits and losses. However, termination benefits which are
expected not to be fully paid within twelve months after the end of the annual reporting period are accounted for as other long-term
employee remuneration.

Internal employee retirement programs are accounted for, using the above method applicable to termination benefits. The Group
recognizes in the profit or loss of the current period (termination benefits) employee salaries and contributions to the employee's social
insurancecovered byitsinternal retirement programfromthedaywhen theemployeesstop their servicesuntil their statutoryretirement
dates, when the conditions for provisions are satisfied.


(4)Accounting treatment of other long-term employee benefits

If other long-term employee benefit provided by the Group for its employees constitutes the defined contribution plan, the accounting
treatment for the defined contribution plan applies. In any other circumstance, the accounting treatment for the defined benefit plan
applies.
29. Lease liabilities

For recognition methods and accounting of lease liabilities, please see this Note V. 35. “Lease”.

30. Provisions

Obligation relating to a contingent are recognized as provisions when they meet the following conditions: (1) the Group has a present
obligation related to a contingency; (2) it is probable that an outflow of economic benefits will be required to settle the obligation; and
(3) the amount of the obligation can be measured reliably.

Provisions are measured against the best estimate of the consideration required to settle the present obligation at the balance sheet date,
taking into account factors pertaining to a contingency such as the risks, uncertainties and time value of money.

If all or part of the expenses required to settle the provisions are expected to be compensated by a third party, the amount of
compensation is recognized separately as an asset when it is basically recognized that it can be received, and the recognized
compensation amount doesn’t exceed the book value of the provision.

31. Share-based payment

(1) Accounting treatment of share-based payment

Share-based payment is a transaction where equity instruments are granted or equity instrument-based liabilities are assumed for the
consideration of the services provided by employees or other parties. Share-based payment is classified into cash-settled share-based
payment and equity-settled share-based payment.
① Equity-settled share-based payment

Equity-settled share-based payments made for the consideration of the services provided by the employees, is measured at the fair
value of equity instruments on the date of grant to the employees. In the case that the right can be exercised after the completion of
services in the waiting period or satisfaction of stipulated performance conditions, the fair value amount shall, on the basis of the best
estimate of the quantity of equity instruments with vesting in the waiting period, be recorded in relevant cost or expense using the
straight-line method. In the case that the right can be exercised immediately after the grant, it is recorded in relevant cost or expense
on the grant date, and the capital surplus is increased accordingly.

On each balance sheet date during the waiting period, the Group makes the best estimate based on the latest available follow-up
information such as changes in the number of employees with vested rights, and revises the estimated number of equity instruments
with vesting. Theimpact oftheaboveestimation is recorded in thecost or expenseofthecurrent period, and thecapital surplusadjusted
accordingly.

Equity-settled share-based payments made for the consideration of the services provided by other parties shall, if the fair value of the
services can be measured reliably, is measured at fair value at the date of acquisition, and if the fair value of the services cannot be
measured reliably but the fair value of the equity instruments can be measured reliably, is measured at fair value at the date of
acquisition. They are recorded in the cost or expense, and the shareholder’s equity is increased accordingly.

② Cash-settled share-based payment

Cash-settled share-based payment shall be measured according to the fair value of liabilities determined on the basis of shares or other
equity instruments undertaken by the Group. In the case that the right is exercised immediately after the grant, it is recorded in relevant
cost or expense, and the liability is increased accordingly. If the right is exercised only after the completion of services in the waiting
period and satisfaction of stipulated performance conditions, on each balance sheet date within the waiting period, based on the best
estimate of the vesting condition and according to the fair value of the liabilities assumed by the Group, the services acquired in the
current period are recorded in the costs or expenses, and the liability is increased accordingly.

Oneachbalancesheetdateandsettlementdatebeforethesettlementofrelatedliabilities,thefair valueofliabilitiesshallbere-measured,
and the changes shall be recorded in the current profits and losses.

(2) Accounting treatment related to modification and termination of share-based payment plan


When the Group modifies the share-based payment plan, if the fair value ofthegranted equityinstruments is increased bymodification,
the increase of the services acquired shall be recognized according to the increase of the fair value of the equity instruments. The
increase of fair value of equity instruments refers to the difference between the fair values of equity instruments before and after
modification on the modification date. If the total fair value of share-based payment is reduced by modification or other ways that are
unfavorable to employees, the accounting treatment of the acquired services will continue, as if the change never happened unless the
Group cancels some or all of the granted equity instruments.

During the waiting period, if the granted equity instruments are canceled, the Group will treat the cancellation of the granted equity
instruments as accelerated exercise, and immediately record the amount to be recognized in the remaining waiting period into the
current profits and losses, and recognize the capital surplus at the same time. If the employee or other party can choose to meet the
non-vestingcondition but failstomeet it duringthewaitingperiod, theGroup will treat it ascancellation for grantingequityinstruments.
32. Revenue

Accounting policies adopted for revenue recognition and measurement

(1) Principles of revenue recognition

If a contract between the Group and a customer meets the following conditions, revenue is recognized when the customer obtains the
control over the goods: the parties to the contract have approved the contract and pledged to perform their obligations; the contract
defines the rights and obligations of the parties about transfer of the goods or provision of the services; the contract contains payment
terms about the proposed transferred goods; the contract has commercial substance, which means that the performance of the contract
would change the risks, time distribution or amount of the future cash flows of the Group; and the consideration to which the Group is
entitled for transferring the goods to the customer is very likely to be recovered.

At the contract commencement date, the Group identifies each individual performance obligation existing under the contract, and
apportions the trading price to each individual performance obligation based on the proportion of the selling prices of the goods
committed bytheindividualperformanceobligations. Thetradingpriceis determined bytakinginto accountoftheinfluenceofvariable
consideration, major financing components in the contract, non-cash consideration, consideration payable to customers and other
factors.

If each individual performance obligation under the contract meets any of the following conditions, the Group will, according to the
progress of performance in the relevant performance period, recognize the part of trading price apportioned to the individual
performance obligation as a revenue: the customer obtains and consumes economic benefits from the performance by the Group at the
time of performance; the customer has control over the goods in production during the performance by the Group; the goods produced
during the performance bythe Grouphave irreplaceable use, and the Group is entitled tobepaid for the completed part oftheobligation
up to now in the entire contract period. The performance schedule is determined by output method or input method according to the
nature of the goods transferred. If the performance schedule cannot be reasonably determined and the incurred costs of the Group are
expected to be compensated, the revenue is recognized according to the amount of the incurred costs until the performance schedule
can be reasonably determined.

If none of the above condition is met, the Group will, at the point when the customer obtains the control over the goods, recognize the
part of trading price apportioned to the individual performance obligation as a revenue. To determine whether the customer obtains the
control over the goods, the Group considers the following indications: the Group enjoys the current right to be paid for the goods, and
the customer has the current obligation to pay for the goods; the Group has transferred legal ownership of the goods to the customer,
and the customer has owned the legal ownership over the goods; the Group has delivered the goods physically to the customer, and the
customer has possessed the goods in kind; the Group has passed on to the customer major risks and rewards of the ownership of the
goods, and the customer has received the major risks and rewards of the ownership of the goods; the customer has accepted the goods;
and any other indication that the customer has obtained the control over the goods.

(2) Specific methods for revenue recognition

① Domestic sales
A. General sales mode

The Group arranges production according to a sales contract or order with a customer; upon shipment fromthe warehouse, the products
are transported and delivered to the place of delivery designated by the customer; the customer’s warehousing employee checks the
quantity of the products and also carries out a spot check for the quality of the products; after the quantity and quality are accepted, the
employee will sign and stamp on the receipt for confirmation. The revenue is recognized when the Group obtains the signed and
stamped receipt or when the Group obtains the signed and stamped receipt and makes a reconciliation with the customer.

B. VMI sales mode


The Group arranges production according to a sales contract or order with the customer; upon shipment from the warehouse, the
products will be transported and delivered to thedeliveryplace designated bythe customer; the customer's warehouse personnel checks
the quantity of the products and also carries out a spot check for the quality of the products; after the quantity and quality are accepted,
the warehouse personnel will sign and stamp on the receipt for confirmation. Sales revenue will be recognized based on the actual
receipt of goods by the customer and reconciliation with the customer.

② Overseas sales
A. General sales mode

The Group arranges production according to a sales contract or order with a customer; the export delivery is made through customs
clearance after the products are verified as qualified through inspection; for the purpose of delivering the products, the revenue is
recognized at the time of control transfer depending on specific terms of trade.

B. VMI sales mode

The Group arranges production according to a sales contract or order with a customer; the export is made through customs clearance
after the products are verified as qualified through inspection; after the Group completes export declaration formalities and obtains an
export declaration form, and the products are transported to the place designated by the customer, the revenue is recognized when the
customer accepts the products.

Different operating modes in the same kind of business lead to different accounting policies for revenue recognition

None
33. Government subsidies

Government subsidies refer to the monetaryassets and non-monetary assets obtained bythe Group fromthe government free ofcharge,
excludingtheinvestment madebythegovernment asan investor which enjoysthecorrespondingowner'sequity. Government subsidies
aredivided into asset-related government subsidiesandincome-related government subsidies. Asset-related government subsidiesrefer
to the government subsidies obtained by the Group and used for acquiring or forming long-term assets by other means. Other
government subsidies are defined as government subsidies related to income. If no target of grants is specified in government
documents, government subsidiesare classified into government subsidies related to assets and government subsidies related to income
as follows: (1) if the government document stipulates grants for a defined project, the grants will be divided according to the proportion
of expenditures transformed into assets and expenditures recorded in expenses in the budget of the defined project, and the proportion
will be reviewed at each balance sheet dateand bechanged if necessary; and (2)if thegovernment document containsgeneral statement
on thepurpose ofgrants, other than a defined project, the grants will be treated as government subsidies related to income. Government
subsidies in the form of monetary assets shall be measured at the amount received or receivable. Government subsidies in the form of
non-monetary assets shall be measured at fair value. If the fair value cannot be reliably acquired, the government subsidies shall be
measured at nominal amount. Government subsidies measured at nominal amount shall be directly recorded in the current profits and
losses.

The Group recognizes and measures government subsidies generally at the time of receipt according to the actually received amounts.
However, at the end of the period, the subsidy shall be measured according to the amount receivable when there is conclusive evidence
that it can meet the relevant conditions stipulated by the financial support policy and is expected to receive financial support funds. A
government subsidy measured at the amount receivable shall meet the following conditions: (1) the amount of grant receivable has
been confirmed in a governmental document or can be reasonably estimated according to any officially issued measures for the
management of financial support funds, without significant uncertainty in the estimated amount; (2) the measurement is based on the
financial support projects and its measures for the management of financial support funds officially released and proactively disclosed
by local fiscal authority according to the Government Information Disclosure Regulations, and the measures are inclusive (applicable
to any eligible enterprise), other than for specific enterprises; (3) the relevant grant approval document has clearly stated the period of
payment, and as the payment of the grant is guaranteed by corresponding fiscal budgets, there is reasonable assurance that the payment
will be made within certain time of period; and (4) other relevant conditions should be met according to the actual situation of the
Group and the grant (if any).

Asset-related government subsidies are recognized as deferred income, and shall be recorded in current profits and losses in stages
according to a reasonable and systematic method within the service life of the relevant assets. If income-related government subsidies
are received as compensation for related costs or losses in future periods, they are recognized as deferred income, and are recorded in
current profits and losses during the period when the related costs or losses are recognized; those received as compensation for related
costs or losses incurred are directly included in current profits and losses.


If a government subsidy contains an asset-related component and an income-related component, the two components are subject to
separate accounting treatment. If it is difficult to distinguish them, the subsidy shall be classified as income-related government
subsidies.

Government subsidies related to the daily operating activities of the Group shall be recorded in other income according to the nature
of operating business. Government subsidies unrelated to the daily activities are recorded in non-operating income.

Where any recognized government subsidy needs to be returned, in the case of related deferred income balance, the carrying amount
of the deferred income balance shall be written down, and any excess shall be recognized in the profit or loss of the current period. In
other circumstances, the returned subsidy is directly recorded in the profit or loss of the current period.

34. Deferred tax assets/liabilities
(1) Current income taxes

At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods aremeasured at the amount expected
to be paid (or returned) according to the requirements of tax laws. The taxable income as basis for the current income tax expense is
calculated after appropriate adjustment is made to the pre-tax accounting profit of the year according to the requirements of tax laws.
(2) Deferred tax assets and liabilities

For temporary differences between the carrying amounts of certain assets or liabilities and their tax bases, or between the carrying
amounts of those items that are not recognized as assets or liabilities and of which the tax bases can be determined according to tax
laws and tax bases, deferred tax assets and liabilities are recognized using the balance sheet liability method.

For temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising
from a transaction (not a business combination) that affects neither accounting profits nor taxable profits (or deductible losses) at the
timeoftransaction, nodeferred taxliabilityis recognized.Inaddition, for thetaxabletemporarydifferencesassociated with investments
in subsidiaries, associates and joint ventures, if the Group is able to control the timing of the reversal of the temporary difference and
it is probable that the temporary difference will not reverse in the foreseeable future, no deferred tax liability is recognized. Except for
the above exceptions, the Group recognizes deferred tax liabilities arising from all other taxable temporary differences.

For temporary differences associated with the initial recognition of an asset or liability arising from a transaction (not a business
combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred
tax assets are recognized. In addition, for the deductible temporary differences associated with investments in subsidiaries, associates
and joint ventures, the corresponding deferred tax assets shall not be recognized if it is not probable that the temporary difference will
reverse in the foreseeable future, or if it is not probable that taxable profits will be available in the future against which the deductible
temporary difference can be utilized. For the above exceptions, deferred tax assets for deductible temporary differences are recognized
by the Group to the extent that it is probable that taxable profits will be available against which the deductible temporary differences
can be utilized.

For deductible losses and tax credits that can be carried forward to later years, the corresponding deferred tax assets are recognized to
the extent that the future taxable income that can be used to offset the deductible losses and tax credits is likely to be obtained.

At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates, according to tax laws, that are expected to be
applicable when the asset is realized or the liability is settled.

On the balance sheet date, the carrying amount of deferred tax assets shall be reviewed. If it is unlikely to obtain sufficient taxable
income in the future to offset against the profits arising from deferred tax assets, the carrying amount of the deferred tax assets shall be
written down. When it is probable that sufficient taxable income will be available, such written-down amount shall be subsequently
reversed.
(3) Income tax expenses

Income tax expenses include current income tax and deferred income tax.

Except that current income taxes and deferred taxes arising from transactions or events recognized in other comprehensive income or
directly recorded in shareholders’ equity are recorded in other comprehensive income or shareholders’ equity, and that deferred taxes
arising from business combinations adjust the carrying amount of goodwill, all other current income taxes and deferred tax expenses
or gains are recorded in the profit or loss of the current period.

(4) Income tax offset

When there is a legal right to settle on a net basis and the intention is to settle on a net basis or to realize assets and to settle liabilities
simultaneously, the current income tax assets and current income tax liabilities of the Group are offset and presented as net amount.

When there is a legal right to settle current income tax assets and current income tax liabilities on a net basis, and the deferred tax
assets and deferred tax liabilities are related to the income tax levied by the same tax administration department on the same tax payer
or to different tax payers, but in each future period of reversing material deferred tax assets and liabilities, the tax payers involved
intend to settle the current income tax assets and liabilities on a net basis or realize assets and settle liabilities at the same time, the
deferred tax assets and deferred tax liabilities of the Group are offset and presented as net amount.

35. Lease

(1)Accounting treatment method of operating lease

Formoreinformation, seethis section (3) - thedetermination method and accountingtreatment method ofleasingunder thenewleasing
standard.

(2)Accounting treatment method of financial lease

Formoreinformation, seethis section (3) - thedetermination method and accountingtreatment method ofleasingunder thenewleasing
standard.

(3) The determination method and accounting treatment method of leasing under the new leasing standard
Lease refers to a contract under which a lessor assigns the right to use an asset to a lessee for consideration, for a defined period.

If a contract is signed or changed after the date of initial implementation, the Group considers, at the date of commencement or change,
whether the contract is a lease or contains a lease. Except for changes in the terms and conditions of the contract, the Group will not
re-consider whether the contract is a lease or contains a lease.

(1) The Group as lessee
① Right-of-use assets

Except for short-term leases and leases for low-value assets, the Group recognizes the right-of-use assets of a lease at the lease
commencement date. The lease commencement date refers to the day from which the lessor offers the leased asset to the Group for its
use. The right-of-use assets shall be initially measured at cost. The cost includes:

A. initially measured amounts of lease liabilities;

B. any lease payments made at or before the lease commencement date, less the relative amount of any lease incentives enjoyed if there
are lease incentives;

C. any initial direct costs incurred by the Group;

D. an estimate of costs to be incurred by the Group in dismantling and removing the underlying assets, restoring the site on which it is
located or restoring the underlying asset to the condition required by the terms of the lease.

The Group calculates the right-of-use assets for depreciation with reference to the provisions of Accounting Standards for Business
Enterprises No. 4 - Fixed Assets concerning depreciation. If the Group can reasonably determine that it will obtain the ownership of
leased assets when the lease term expires, the right-of-use assets are depreciated over the remaining service life of the leased assets. If
the Group cannot reasonably determine that it will obtain the ownership of leased assets when the lease term expires, the right-of-use
assets are depreciated over the shorter of the lease term and the remaining service life of the leased assets.

The Group determines whether the right-of-use assets are impaired, and performs accounting treatment for recognized impairment loss
according to the regulations of Accounting Standard for Business Enterprise No. 8 – Impairment of Assets.

② Lease liabilities
Except forshort-termleasesand leasesfor low-valueassets, theGroupinitiallymeasurestheleaseliabilitiesattheleasecommencement
date according to thepresent value of the lease payment not made as ofthat date. When measuring the present value ofa lease payment,
the Group uses the interest rate implicit in the lease as the discount rate, and adopts the incremental borrowing rate as the discount rate
if the interest rate implicit in the lease is not determinable.

The lease payment refers to the amount paid by the Group to the lessor related to the right to use the leased assets during the lease term,
including:

A. The fixed amount and substantial fixed amount less the relative amount of any lease incentives enjoyed if there are lease incentives;
B. The index or rate based variable amount which is determined at the time of initial measurement according to the index or rate
prevailing at the lease commencement date;


C. The exercise price of the call option when the Group reasonably decides to exercise the call option;

D. The payment for exercising the option to terminate the lease, provided that it is reflected in the lease period that the Group will
exercise the option to terminate the lease; and

E. The estimated amount to be paid according to the residual value of guarantee provided by the Group.

Variable lease payments not included in the measurement of lease liabilities, when actually incurred, shall be recorded in the current
profits and losses or related asset costs.

From the lease commencement date, the Group calculates the interest expense of lease liabilities for each period of the lease term at a
fixed periodic interest rate and records it in current profits and losses or related asset costs.

After the lease commencement date, the Group will re-measure the lease liabilities and adjust the right-of-use assets if:

A. In the case of any change to the lease term or the result of evaluation on the call option, the lease liabilities will be re-measured by
the Group according to the changed lease payment and the present value calculated based on the modified discount rate.

B. In the case of changes in the amount to be paid estimated based on the residual value of guarantee or the index or rate for calculating
the lease payment, the Group will re-measure the lease liabilities according to the changed lease payment and the present value
calculated from the original discounting rate.

③ Short-term leases and leases of low-value assets

For short-term leases and leases for low-value assets of buildings, transport vehicles, machinery equipment and office equipment, the
Group chooses not to recognize right-of-use assets or lease liabilities. The short-term lease refers to the lease that does not contain the
call option and has a lease period of no more than 12 months from the lease commencement date. The lease for low-value assets refers
to the lease under which individual lease asset has a low value ifit is brand new. In each period within the lease term, the Group records
the lease payments of short-term leases and leases for low-value assets into the profit or loss of the current period or the relevant asset
cost using the straight-line method.
④ Change of lease

When a lease changes and the following conditions are satisfied, the Group will treat such change as an independent lease:

A. The Group expands the lease scope by acquiring the right to use one or more additional leased assets;

B. The increased consideration is in line with the price of the expanded part of the lease scope as adjusted for the contract change.

Ifa lease change is not treated as an independent lease, at the effective date ofthe lease change, the Group will re-apportion thechanged
contract price, re-determine the lease term, and re-measure the lease liabilities according to the changed lease payment and the present
value calculated based on the modified discount rate.

If the lease change narrows the lease scope or shortens the lease term, the Group will reduce the carrying value of the right-of-use
assets accordingly, and record thegain or loss fromthe terminated orpartiallyterminated lease in theprofit orlossofthecurrent period.
If any other lease change triggers the re-measurement of the lease liabilities, the Group will adjust the carrying value of the right-of-
use assets accordingly.
(2) The Group as lessor
① Division of a lease

If a contract contains the lease component and the non-lease component, the Group will apportion the contract consideration according
to the provisions of Accounting Standards for Business Enterprises No. 14 - Revenue concerning the apportionment of trading price.
And the basis for apportionment is the respective prices of the lease component and the non-lease component.

② Classification of a lease

A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Leases which are not
financing leases are defined as operating leases.

A. The Group as lessor under operating leases

The Group adopts the straight-line method in each period of the lease term, and recognizes the lease receipts arising from operating
leases in rental income. The initial direct expenses related to an operating lease incurred by the Group are capitalized when incurred,
apportioned during the lease term on the same recognition basis as rental income, and recorded in the current profit and loss by
installments.

The variable lease payment received by the Group under an operating lease not included in the lease receipt is recorded in the profit or
loss of the current period at the time of actual occurrence.

B. The Group as lessor under financial leases


At the lease commencement date, the Group measures the carrying value of the financing lease receivable as net lease investment, and
de-recognizes the financing lease asset. The net lease investment is the sum of the unsecured residual value and the present value of
the lease payment receivable at the lease commencement date discounted by the interest rate implicit in the lease.

The lease payment refers to the amount paid by the lessee as the Group transfers the right to use the leased assets during the lease term,
including:

(A). The fixed amount and substantial fixed amount paid by the lessee less the relative amount of any lease incentives received;

(B). The lessee's index or rate based variable amount which is determined at the time of initial measurement according to the index or
rate prevailing at the lease commencement date;

(C). The exercise price of the call option when the Group reasonably decides that the lessee is to exercise the call option;

(D). The payment made by the lessee for exercising the option to terminate the lease, provided that it is reflected in the lease period
that the lessee will exercise the option to terminate the lease; and

(E). The residual value of guarantee provided by the lessee, a party in association with the lessee and any independent third party who
has economic capacity to perform the guarantee obligation.

Variable lease payment receivable not included in the measurement of lease net investment shall, when actually incurred, be included
in the current profits and losses.

The Group measures and recognizes the interest income of each period within the lease term according to the fixed periodic interest
rate.
③ Sublease

The Group as the sub-lessor considers the original lease and the sublease as two independent contracts. The Group classifies the
sublease according to the right-of-use assets arising from the original lease, other than the underlying asset of the original lease.

④ Change of lease

If an operating lease changes, the Group will, from the effective date of the change, considers the change as a new lease, and the lease
payment received in advance or receivable related to the lease before the change as new lease payments.

When a lease changes and the following conditions are satisfied, the Group will treat such change as an independent lease:

A. The Group expands the lease scope by acquiring the right to use one or more additional leased assets;

B. The increased consideration is in line with the price of the expanded part of the lease scope as adjusted for the contract change.

If a financing lease change is not treated as an independent lease, the Group will treat the changed lease as follows:

A. Assuming that the change takes effect at the lease commencement date, and the lease is classified as an operating lease, the Group
will, from the effective date of the lease change, consider the change as a new lease and the net lease investment prior to the effective
date of the lease commencement as the carrying value of the leased asset;

B. Assuming that the change takes effect on the lease commencement date, and the lease is classified as a financing lease, the Group
will conduct accounting in accordance with the provisions of Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments concerning the modification or re-negotiation of contract.

36. Specific reserve

According to the relevant regulations of the Ministry of Finance and the Ministry of Emergency Management, the Group accrues
specific reserve for production safety. The specific reserve is mainly used for safety expenditure in the process of production and
operation.

The provision for specific reserve is recognized as relevant cost or profit or loss for the current period, and it is also included in specific
reserve. The specific reserve is written down when withdrawal of safety fund is of expense expenditure. If it is capital expenditure, the
expenditure incurred is recorded in construction in progress and recognized as fixed assets when the project is completed and is ready
for the intended use, and meanwhile, specific reserve is written down at the cost of the fixed assets and accumulated depreciation is
recognized at the same amount. Consequently, such fixed assets are not depreciated in subsequent periods.

37. Other important accounting policies and accounting estimates

While using accounting policies, due to the uncertainty in operating activities, the Group needs to make judgment, estimates and
assumptions on the carrying value of accounts which cannot be measured accurately. The judgment, estimates and assumptions are
madebased onthehistorical experience oftheGroup’smanagement and other factorsthat areconsidered toberelevant. Thejudgments,
estimates and assumptions would affect the reported amounts of incomes, expenses, assets and liabilities, as well as the disclosure of

contingent liabilities at the balance sheet date. However, the actual results from the uncertainty in the estimates may differ from the
current estimates made by the Group’s management, subject to further significant adjustments to the carrying amounts of the affected
assets or liabilities.

The above judgments, estimates and assumptions will be reviewed periodically by the Group on the going-concern basis. If a change
in accounting estimates only affects the period in which the change occurs, the affected amount will be recognized in the period in
which the change occurs. If the change affects both the period in which the change occurs and future periods, the affected amount will
be recognized in the period in which the change occurs.

At the balance sheet date, the major fields in which the Group is required to make the judgments, estimates and assumptions on the
amounts in the financial statements are shown below:

(1) Revenue recognition

As stated in this Note V. 32. ''Revenue'', the Group's revenue recognition involves the following significant accounting judgments and
estimates: identification of customer contracts; estimation of the recoverability of the considerations enjoyed due to the transfer of
goods to customers; identification of performance obligations in contracts; estimation of the variable consideration in a contract and
the amount of accumulated recognized income that is unlikely to be significantly reversed when the relevant uncertainty is eliminated;
whether there is material financing component in a contract; estimation of separate selling prices of individual performance obligations
in a contract; determination on whether the performance obligation shall be performed in a time span or at a point of time; and
determination of performance progress.

The Group makes judgments based on historical experience and practices, and major changes in judgments and estimates would have
impact (and even significant impact) on the change of operating income, operating cost, and profit and loss during the current or future
periods.
(2) Lease
① Identification of a lease

While identifying that a contract is or contains a lease, the Group needs to assess whether there is an identified asset and the customer
has the right to use the asset for a certain period. During assessment, the Groups shall consider the nature or substantial replacement of
the asset, and whether the customer has the right to obtain almost all economic benefits arising from the use of the asset during the
period and can control the use of the asset.

② Classification of a lease

The Group as the lessor classifies leases into operating leases and financing leases. In the classification process, the management needs
to make appropriate analysis and judgment on whether all risks and rewards related to the ownership of leased assets have been
substantially transferred to the lessee.
③ Lease liabilities

The Group, as a lessee, initially measures the lease liabilities at the present value of lease payments that are unpaid at the lease
commencement date. For measuring the present value of the lease payment, the Group estimates the discounting rate in use and the
lease term of the lease contract with an option of renewal or termination. For assessing the lease term, the Group considers all the facts
and circumstances related to the economic benefits brought by the exercise of the option by the Group, including expected changes in
the facts and circumstances from the lease commencement date to the option exercise date. Different judgments and estimates would
affect the recognition of lease liabilities and right-of-use assets and further affect the profit or loss of subsequent periods.

(3) Impairment of financial assets

The Group assesses impairments of financial instruments using the expected credit loss model, where the Group is required to make
significant judgments and estimates, as well as consider all reasonable and evidence-based information, including forward-looking
information. In making the judgments and estimates, the Group predicts expected changes in debtor's credit risk based on historical
data, as well as economic policies, macroeconomic indicators, industry risks, external market conditions, technical conditions, changes
in customer conditions and other factors.

(4) Provisions for the decline in value of inventories

Under accounting policies for inventories, the Group measures inventories according to the lower of cost and net realizable value. For
the inventories with cost higher than net realizable value as well as obsolete and unsalable inventories, the Group calculates provisions
for the impairment of inventories. The inventories are impaired to their net reliable value, depending on the assessment of salability of
inventories and their net realizable value. To identify inventory impairment, the management is required to make judgments and
estimates after obtaining conclusive evidence, as well as considering the purpose of inventories held, the impact of events occurring

after the balance sheet date and other factors. Anydifference between actual results and prior estimates will, in theperiod when relevant
estimates are changed, affect the carrying amount of inventories and the provision for inventory impairment or reversal thereof.

(5) Fair value of financial instruments

If there is no financial instrument in an active trading market, its fair value is determined by the Group through various valuation
methods. The valuation techniques include disclosed cash flow modeling, etc. In the valuation process, the Group needs to estimate
future cash flow, credit risk, market volatility and correlation, etc. and choose an appropriate discounting rate. These relevant
assumptions are uncertain, and their changes would affect the fair value of financial instruments. For equity instrument investments or
contracts with public quotes, the Group will not regard costs as the best fair value estimate.

(6) Impairment provision for long-term assets

For non-current assets other than financial assets, the Group will, at the balance sheet date, judges whether there is an indication of
impairment. For intangible assets with an uncertain service life, the impairment test will be carried out annually and when there is an
indication of impairment. The impairment test will be carried out for non-current assets other than financial assets, when there is an
indication that the carrying amount cannot be recovered.

When the carrying value of an asset or group of assets is higher than the recoverable amount, the higher of the net of the fair value less
disposal costs and the present value of estimated future cash flows represents the impairment.

The net of the fair value less disposal costs is determined by the sales agreement price or observable market price of similar assets in
fair trade reduced by incremental costs directly attributable to the disposal of the asset.

Important judgments shall be made on the output, selling price, related operating costs and discount rate used in calculating present
value of the asset (or a group of assets) in estimation of present value of future cash flows. When estimating the recoverable amount,
the Group uses all relevant information available, including the output, selling price and related operating costs predicted on the basis
of reasonable and evidence-based assumptions.

The Group tests goodwill for any impairment annually at least. This requires estimating the present value of future cash flows of an
asset group or group portfolio to which goodwill has been allocated. When estimating the present value of future cash flows, the Group
needs to predict cash flows generating from an asset group or group portfolio in the future, and chooses an appropriate discount rate to
determine the present value of future cash flows.

(7) Depreciation and amortization

The Group depreciates and amortizes investment properties, fixed assets and intangible assets over their respective service life, using
the straight-line method, with their respective residual value taken into account. The Group periodically reviews the service life of
assets to determine the amounts of depreciation and amortization expenses for each reporting period. The service life is determined by
the Group based on its historic experience acquired on similar assets and expected technical developments. For significant changes in
prior estimates, depreciation and amortization expenses will be adjusted in the coming periods.

(8) Development costs

When determining capitalized amounts, the Group’s management needs to assume estimated future cash flows, appropriate discount
rates and expected return periods of relevant assets.

The Group’s management believes that the products with its self-developed proprietary technology have a broad market and good
prospects, and the market reaction to the products produced with these intangible assets also supports the management’s pre-estimated
income arising fromthe project. However, the increasing competition makes the management reconsider the assumptions about market
share and estimated gross profits of the products. After a thorough review, the Group’s management believes that the carrying value
of intellectual properties can be fully recovered notwithstanding a lowered rate of return of the products. The Group will continue to
keep close attention on relevant developments. Once there is an indication that it is necessary to adjust the assumptions of relevant
accounting estimates, the Group will make adjustment in the period when that indication appears.

(9) Deferred tax assets

To the extent that it is likely that there will be sufficient taxable profits to cover the losses, the Group recognizes deferred tax assets for
all unused tax losses. In this case, the Group’s management shall make important judgments to estimate the time and amount of future
taxable profits and, by taking into account of its tax plan, to determine the amount of deferred tax assets that should be recognized.
(10) Income tax

In normal operating activities of the Group, there are some transactions with certain uncertainties in final tax treatment and calculation.
Tax deductible expenses for some items are subject to review and approval by tax authority. Any difference between final results and
initially estimated amounts due to these tax matters exerts impact on income taxes and deferred taxes of the period when the final
results are determined.


38. Changes in important accounting policies and accounting estimates

(1) Important changes in accounting policy

 Applicable  Not applicable

Contents and causes of changes in Approval procedure Notes

accounting policy

1. Changes in national policy

On December 30, 2021, the Ministry of requirements; 2. The Company held the

Finance issued the Notice on Issuing the 4th meeting of the 6th Board of Directors

Interpretation No. 15 of theAccounting and the 4th meeting of the 6th Board of

Standards for Business Enterprises Supervisors on April 17, 2023, reviewed

(Finance and Accounting [2021] No. 35); and approved the Proposal on Changes in

on November 30, 2022, it issued the Accounting Policy. The independent

Notice on Issuing the Interpretation No. 16 directors expressed their independent The above changes in accounting policy
of theAccounting Standards for Business opinions on this matter. In accordance have no significant impact on the financial
Enterprises (Finance andAccounting with relevant provisions of Rules statements of the Group and the Company.
[2022] No. 31). In accordance with the Governing the Listing of Shares on

above provisions, the Company will make Shenzhen Stock Exchange and Articles of

corresponding changes to the original Association, this issue of changes in

accounting policies and implement them accounting policy was submitted to the

on the prescribed starting date. Board of Directors to review and approve,

without the need of the submission to the

Shareholders' Meeting.

(2) Changes in important accounting estimates

 Applicable  Not applicable
39. Others
None
VI. Taxable Items

1. Main tax types and rates

Tax types Taxation basis Tax rate

Output taxes on taxable income shall be calculated at the

rate of 13%, 9% and 6%, and value added taxes are

VAT calculated and paid according to the difference resulting 13%, 9%, 6%

from the deduction of the allowed deductible input tax in

the period.

City maintenance and 7% and 5% of actually-paid turnover tax 7%、5%

construction tax

15% or 25%, for overseas subsidiaries, the tax shall be paid

Enterprise income tax according to the statutory tax rate of the country or region 25%、15%

where it is located.

Education surcharge 3% of the amount of actually-paid turnover tax 3%

Local education 2% of the amount of actually-paid turnover tax 2%

surcharges

Disclose the specific information in the case of tax payers with different tax rates of enterprise income tax


Name of taxpayer Rate of income tax

Goertek Inc. 15%

Weifang Goertek Electronics Co., Ltd. 15%

Goertek Microelectronics Inc. 15%

Qingdao Goertek Microelectronics Research Institute Co., Ltd. 25%

Qingdao Goertek Intelligent Sensor Co., Ltd. 15%

Weifang Goertek Microelectronics Co., Ltd. 15%

Rongcheng Goertek Microelectronics Co., Ltd. 15%

Beijing Goertek Microelectronics Co., Ltd. 2.5%

Shenzhen Goertek Microelectronics Co., Ltd. 25%

Wuxi Goertek Microelectronics Co., Ltd. 25%

Shanghai Goertek Microelectronics Co., Ltd. 25%

Goertek Microelectronics Holdings Co., Ltd. 16.5%

Goertek Microelectronics (Hong Kong) Co., Ltd. 16.5%

GOERTEK MICROELECTRONICS CORPORATION The federal tax rate for enterprise income tax is 21%, and the

local enterprise income tax rate in California is 8.84%.

Corporation tax: Tax rate shall be 10% if the income is less than
KRW 200 million; 20% if the income is KRW 200 million-20

GOERTEK MICROELECTRONICS KOREACO., LTD. billion; 22% if the income is KRW 20 billion-300 billion; and

25% if the income is more than KRW 300 billion.

local corporation tax: 10% of taxable income

Goertek Microelectronics Vietnam Company Limited 20%

Weifang Goertek Trading Co., Ltd. 25%

Yishui Goertek Electronics Co., Ltd. 25%

Yili Precision Manufacturing Co., Ltd. 15%

Weifang Goertek Communication Technology Co., Ltd. 25%

Goertek Optical Technology Co., Ltd 15%

Goertek Technology Co., Ltd. 15%

Beijing Goertek Technology Co., Ltd. 15%

Qingdao GoertekAcoustics Technology Co., Ltd. 25%

Shenzhen Goertek Technology Co., Ltd. 15%

Shanghai Goertek Technology Co., Ltd. 25%

Nanjing Goertek Technology Co., Ltd. 25%

Weifang Lokomo Precision Industry Co., Ltd. 15%

Goertek Investment Co., Ltd. 25%

Beijing Goertek Investment Management Co., Ltd. 25%

Olive Smart Hardware Investment Center LP --

Dongguan JoyForce Precision Manufacturing Co., Ltd. 15%

Goertek Intelligence Technology Co., Ltd. 15%

Rongcheng Goertek Technology Co., Ltd. 25%

Qingdao Goertek Commercial Factoring Co., Ltd. 25%

Kunshan Goertek Electronics Co., Ltd 15%

Nanning Goertek Electronics Co., Ltd 25%

Nanning Goertek Trading Co., Ltd. 25%

Xi’an Goertek Electronic Technology Co., Ltd. 15%


Yishui TECO Electronic Technology Co., Ltd. 25%

Goertek Optical Technology (Qingdao) Co., Ltd 25%

Goertek Optical Technology (Shanghai) Co., Ltd 25%

Qingdao Resonance Phase I Venture Capital Fund Partnership --

(Limited Partnership)

Weifang Goertek Electronics Co., Ltd. 25%

Qingdao Goertek Horizons Technology Co., Ltd 25%

Weifang High-tech Zone Goertek Education Center 25%

Goertek Vina Co., Ltd 20%

Corporation tax: Tax rate shall be 10% if the income is less than
KRW 200 million; 20% if the income is KRW 200 million-20

Goertek Technology Korea Co., Ltd. billion; 22% if the income is KRW 20 billion-300 billion; and

25% if the income is more than KRW 300 billion.

local corporation tax: 10% of taxable income

The tax rate of 8.25% is applied to the taxable profit which does
Goertek (HongKong) Co.,Limited not exceed HKD 2,000,000, and the tax rate of 16.5% is applied
to the part of taxable profit which exceeds HKD 2,000,000.

Goertek Technology Vina Company Limited 20%

Goertek Precision Industry Vietnam Company Limited 20%

GoerTek Audio TechnologiesAps 22%

Goertek Seiki Technology Co., Ltd. 38%

Optimas Capital Partners Fund LP --

Goertek Electronics, Inc. The federal tax rate for enterprise income tax is 21%, and the

local enterprise income tax rate in California is 8.84%.

Goertek Technology Taiwan Co., Ltd. 20%

Goertek Technology Japan Co., Ltd. 38%

Goertek Technology (Hong Kong) Co.,Limited 16.5%

Other explanations:

Shanghai Ganyuzhi Technology Co., Ltd. changed its name to Shanghai Goertek Microelectronics Co., Ltd. on November 3, 2022.
2. Tax incentives

(1) According to the Reply on the Filings of the First Batch of High-Tech Enterprises in Shandong Province in 2020 issued by the
Office of Leading Group for the Recognition and Management of National High-Tech Enterprises, the Company and its subsidiaries,
Weifang Goertek Electronics Co., Ltd. and Weifang Goertek Microelectronics Co., Ltd., have been recognized as high-tech enterprises
for a 3-year validity period, and their preferential period for enterprise income tax is from January 1, 2020 to December 31, 2022. The
enterprise income tax rate of 15% applied to the Company and its subsidiaries, Weifang Goertek Electronics Co., Ltd. and Weifang
Goertek Microelectronics Co., Ltd., for year 2022.

(2) According to the Announcement on Filing the First Batch of High-Tech Enterprises in Qingdao in 2022, issued by the Office of
Leading Group for the Recognition and Management of National High-Tech Enterprises on January 6, 2023, Goertek Microelectronics
Inc., has been recognized as a high-tech enterprise for a validity period of 3 years, and its preferential period for enterprise income tax
is from January 1, 2022 to December 31, 2024. The enterprise income tax rate of 15% applied to Goertek Microelectronics Inc. for
year 2022.

(3) According to the Reply on the Filings of High-Tech Enterprises in Qingdao City in 2020, issued by the Office of Leading Group
fortheRecognitionandManagement ofNational High-Tech Enterpriseson January15,2021,asubsidiary, Qingdao GoertekIntelligent
Sensor Co., Ltd., has been recognized as a high-tech enterprise for a validity period of 3 years, and its preferential period for enterprise
income tax is from January 1, 2020 to December 31, 2022. The enterprise income tax rate of 15% applied to the subsidiary, Qingdao
Goertek Intelligent Sensor Co., Ltd., for year 2022.


(4) According to the Announcement on Filing the First Batch of High-Tech Enterprises in Shandong Province in 2022, issued by the
Office ofLeading Group for the Recognition and Management ofNational High-Tech EnterprisesonJanuary4, 2023, two subsidiaries,
Rongcheng Goertek Microelectronics Co., Ltd. and Yili Precision Manufacturing Co., Ltd., have been recognized as a high-tech
enterprise for a validity period of 3 years, and the preferential period for enterprise income tax is from January 1, 2022 to December
31, 2024. The enterprise income tax rate of 15% applied to Rongcheng Goertek Microelectronics Co., Ltd. and Yili Precision
Manufacturing Co., Ltd. for year 2022.

(5) According to the Announcement on Filing the First Batch of High-Tech Enterprises in Shandong Province in 2021 issued by the
Office of Leading Group for the Recognition and Management of National High-Tech Enterprises on January 4, 2022, a subsidiary,
Goertek Optical Technology Co., Ltd, has been recognized as a high-tech enterprise for a validity period of 3 years, and its preferential
period for enterprise income tax is from January 1, 2021 to December 31, 2023. The enterprise income tax rate of 15% applied to the
subsidiary, Goertek Optical Technology Co., Ltd, for year 2022.

(6) According to the Announcement on Filing the First Batch of High-Tech Enterprises in Qingdao in 2022 issued by the Office of
Leading Group for the Recognition and Management of National High-Tech Enterprises on December 14, 2022, Goertek Technology
Co., Ltd., has been recognized as a high-tech enterprise for a validity period of 3 years, and its preferential period for enterprise income
taxisfromJanuary1, 2022to December 31,2024. Theenterpriseincometaxrateof15%applied to thesubsidiary, Goertek Technology
Co., Ltd., for year 2022.

(7) According to the Reply on the Filings of the Third Batch of High-Tech Enterprises in Beijing City in 2020 (GKHZ [2021] No.37),
issued by the Office of Leading Group for the Recognition and Management of National High-Tech Enterprises on January 22, 2021,
a subsidiary, Beijing Goertek Technology Co., Ltd., has been recognized as a high-tech enterprise for a validity period of 3 years, and
its preferential period for enterprise income tax is from January 1, 2020 to December 31, 2022. The enterprise income tax rate of 15%
applies to the subsidiary, Beijing Goertek Technology Co., Ltd., for year 2022.

(8) According to the Announcement on Filing the First Batch of High-Tech Enterprises in Shenzhen in 2022 issued by the Office of
Leading Group fortheRecognition andManagement ofNational High-Tech Enterpriseson December 19,2022, asubsidiary, Shenzhen
Goertek Technology Co., Ltd., has been recognized as a high-tech enterprise for a validity period of 3 years, and its preferential period
forenterpriseincometaxis fromJanuary1, 2022to December 31, 2024. Theenterpriseincometaxrateof15%applied to the subsidiary,
Shenzhen Goertek Technology Co., Ltd., for year 2022.

(9) According to the Notice on Publishing a List of the Second Batch ofHigh-Tech Enterprises to be Recognized in ShandongProvince
in 2020 issued by the Office of Leading Group for the Recognition and Management of National High-Tech Enterprises on December
8, 2020, Weifang Lokomo Precision Industry Co., Ltd., a subsidiary of the Company, has been recognized as a high-tech enterprise for
a validity period of 3 years, and its preferential period for enterprise income tax is from January 1, 2020 to December 31, 2022. The
enterprise income tax rate of 15% applied to the subsidiary, Weifang Lokomo Precision Industry Co., Ltd. for year 2022.

(10) According to the Notice on Publishing the Filings of the Second Batch of High-Tech Enterprises in Guangdong Province in 2021
issued bythe Office of Leading Group for the Recognition and Management ofNational High-Tech Enterprises on December 20, 2021,
Dongguan JoyForce Precision Manufacturing Co., Ltd., a subsidiary of the Company, has been recognized as a high-tech enterprise
for a validity period of 3 years, and its preferential period for enterprise income tax is from January 1, 2021 to December 31, 2023. The
enterprise income tax rate of 15% applies to the subsidiary, Dongguan JoyForce Precision Manufacturing Co., Ltd. for year 2022.

(11) According to the Announcement on Filing the Second Batch of High-Tech Enterprises in Guangdong Province in 2022 issued by
the Office of Leading Group for the Recognition and Management of National High-Tech Enterprises on December 22, 2022, Goertek
Intelligence Technology Co., Ltd., a subsidiary of the Company, has been recognized as a high-tech enterprise for a validity period of
3 years, and its preferential period for enterprise income tax is from January 1, 2022 to December 31, 2024. The enterprise income tax
rate of 15% applied to the subsidiary, Goertek Intelligence Technology Co., Ltd., for year 2022.

(12) According to the Notice on Publishing a List of the Second Batch of Proposed Recognized High-Tech Enterprises in Jiangsu
Province in 2021 issued by the Office of Leading Group for the Recognition and Management of National High-Tech Enterprises on
November 30, 2021, Kunshan Goertek Electronics Co., Ltd, asubsidiaryofthe Company, has been recognized as ahigh-tech enterprise
for a validity period of 3 years, and its preferential period for enterprise income tax is from January 1, 2021 to December 31, 2023. The
enterprise income tax rate of 15% applied to the subsidiary, Kunshan Goertek Electronics Co., Ltd, for year 2022.

(13) According to the Reply on the Filings of the First Batch of High-Tech Enterprises in Shaanxi Province in 2022 (GKHZ [2022]
No. 170) issued bythe Office of Leading Group for the Recognition and Management ofNational High-Tech Enterprises on November
14, 2022, Xi’an Goertek Electronic Technology Co., Ltd., a subsidiary of the Company, has been recognized as a high-tech enterprise
for a validity period of 3 years, and its preferential period for enterprise income tax is from January 1, 2022 to December 31, 2024. The
enterprise income tax rate of 15% applied to the subsidiary, Xi’an Goertek Electronic Technology Co., Ltd., for year 2022.


(14) Goertek (HongKong) Co.,Limited is an entity eligible for the two-tier profit tax system. The tax rate of 8.25% is applied to the
taxable profit which does not exceed HKD 2,000,000, and the tax rate of 16.5% is applied to the part of taxable profit which exceeds
HKD 2,000,000.

(15) According to the Announcement of the Ministry of Finance and the State Taxation Administration on Implementing the
Preferential Income Tax Policies for Micro and Small Enterprises and Individual Industrial and Commercial Households
(Announcement No.12/2021 of the Ministry of Finance and the State Taxation Administration) and the Announcement of the State
Taxation Administration on Matters Concerning the Implementation of Preferential Income Tax Policies Supporting the Development
of Small Low-Profit Enterprises and Individual Industrial and Commercial Households (Announcement No.8/2021 of the State
Taxation Administration), from January 1, 2021 to December 31, 2022, for small and low-profit enterprises, the portion of annual
taxable income not exceeding 1 million yuan shall be included in the taxable income at a rate of 12.5%, and enterprise income tax will
be levied at the rate of 20%. The above preferential tax policies are applicable to the subsidiary, Beijing Goertek Microelectronics Co.,
Ltd., and enterprise income tax is levied at the actual tax rate of 2.5% in 2022.

(16) According to the laws of Vietnam, GOERTEK MICROELECTRONICS VIETNAM COMPANY LIMITED, a subsidiary of the
Company, enjoys tax exemption for 4 years and a 50% reduction of payable tax amounts for 9 subsequent years. The preferential CIT
rate is 10% for 15 years from the first year of income generation. At the same time, starting from the first profitable year (after making
up for the losses of previous years), the first to fourth years are exempt from corporate income tax, and the fifth to thirteenth years are
subject to a 50% reduction in corporate income tax. If the enterprise has no taxable profit within three years from the start of tax
incentive activities, the tax holiday and tax reduction period will be calculated from the fourth year of operation. The subsidiary is
exempt from corporate income tax in 2022.

3. Others
None

VII. Notes to consolidated financial statements

1. Cash at bank and on hand

Unit: RMB

Item Closing balance Opening balance

Cash on hand 33,671.21 160,703.83

Bank deposits 11,290,088,881.75 9,137,740,198.21

Other monetary capital 1,392,748,538.84 910,620,794.05

Total 12,682,871,091.80 10,048,521,696.09

Including: Total amounts deposited 1,370,158,074.20 1,091,856,806.03
abroad

The total funds restricted by 1,392,748,538.84 910,620,794.05
mortgage, pledge or freeze are as follows:

Other explanations:

Other monetary funds at the end of the period mainly involve notes, bonds and L/C margins.

2. Financial assets held for trading

Unit: RMB

Item Closing balance Opening balance

Financial assets at fair value through profit 338,662,097.66 119,267,279.02
and loss
Including:

Investments in equity instruments 152,722,198.06 98,804,286.66

Derivative financial assets 185,939,899.60 20,462,992.36

Total 338,662,097.66 119,267,279.02

3. Notes receivable

(1) Notes receivable listed by classification

Unit: RMB

Item Closing balance Opening balance

Bank acceptance notes 25,847,492.24 48,384,771.72

Commercial acceptance notes 1,709,928.75

Total 25,847,492.24 50,094,700.47

Unit: RMB

Closing balance Opening balance

Category Book balance Bad-debt provision Book balance Bad-debt provision

Proportion Book value Proportion Book value
Amount Proportion Amount of accrual Amount Proportion Amount of accrual

Notes
receivable

with bad debt 25,847,492.24 100.00% 25,847,492.24 50,094,700.47 100.00% 50,094,700.47
reserves by
group

Including:
Bank

acceptance 25,847,492.24 100.00% 25,847,492.24 48,384,771.72 96.59% 48,384,771.72
notes
Commercial

acceptance 1,709,928.75 3.41% 1,709,928.75
notes

Total 25,847,492.24 100.00% 25,847,492.24 50,094,700.47 100.00% 50,094,700.47

If the provision for bad debts on notes receivable is based on the general model of expected credit losses, please disclose information
about the provision for bad debts by referring to the disclosure of other receivables:

 Applicable  Not applicable

(2)Accrual, recovery or return of bad debt reserve in current period

None

(3) Notes receivable pledged at the end of the period

Unit: RMB

Item Amount pledged at the end of the period

Bank acceptance notes 5,848,815.01

Total 5,848,815.01

Other explanations:

A note pledge is a splitting of a large denomination note into multiple banker's acceptance bills in small denomination.

(4) Notes receivable endorsed or discounted by the Group at the end of the period and not yet due on the
balance sheet date

Unit: RMB

Item Amount derecognized at the end of the Amount not derecognized at the end of the
period period

Bank acceptance notes 2,371,001.15

Total 2,371,001.15


(5) Notes that have been transferred to accounts receivable by the Group at the end of the period due to the
non-performance of the contract of the drawer

None

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

None

4.Accounts receivable
(1)Accounts receivable disclosed by classification

Unit: RMB

Closing balance Opening balance

Category Book balance Bad-debt provision Book balance Bad-debt provision

Amount Proportion Amount Proportion Book value Amount Proportion Amount Proportion Book value

of accrual of accrual

Accounts
receivable

with bad 14,545,194,129.78 100.00% 149,013,346.85 1.02% 14,396,180,782.93 12,025,540,710.73 100.00% 126,326,184.81 1.05% 11,899,214,525.92
debts reserves
by group

Including:
Accounts

receivable 14,310,390,851.16 98.39% 147,839,330.46 1.03% 14,162,551,520.70 11,857,375,456.09 98.60% 125,485,358.54 1.06% 11,731,890,097.55
aging group
Portfolio of

factoring 234,803,278.62 1.61% 1,174,016.39 0.50% 233,629,262.23 168,165,254.64 1.40% 840,826.27 0.50% 167,324,428.37
receivables

Total 14,545,194,129.78 100.00% 149,013,346.85 1.02% 14,396,180,782.93 12,025,540,710.73 100.00% 126,326,184.81 1.05% 11,899,214,525.92

Bad debt reserves on a group basis: Accounts receivable aging group

Unit: RMB

Name Closing balance

Book balance Bad-debt provision Proportion of accrual

Within 1 year 14,298,053,717.77 142,980,537.18 1.00%

1 to 2 years 10,227,450.14 3,068,235.02 30.00%

2 to 3 years 638,249.98 319,124.99 50.00%

Over 3 years 1,471,433.27 1,471,433.27 100.00%

Total 14,310,390,851.16 147,839,330.46

Description for basis of determining the group:

For further details, please see Note V. 10. ''Impairment of financial assets''.


Provision for bad debts by group: portfolio of factoring receivables

Unit: RMB

Closing balance

Name Book balance Bad-debt provision Proportion of accrual

Undue 234,803,278.62 1,174,016.39 0.50%

Overdue 1-90 days
Overdue 91-180 days
Overdue 181-360 days

Overdue more than 360 days

Total 234,803,278.62 1,174,016.39

Description for basis of determining the group:

For further details, please see Note V. 10. ''Impairment of financial assets''.

If the provision for bad debts on accounts receivable is based on the general model of expected credit losses, please disclose

information about the provision for bad debts by referring to the disclosure of other receivables:

 Applicable  Not applicable

Disclosed by age of accounts receivable

Unit: RMB

Aging Book balance

Within 1 year (including 1 year) 14,532,856,996.39

1 to 2 years 10,227,450.14

2 to 3 years 638,249.98

Over 3 years 1,471,433.27

3 to 4 years 1,397,650.48

4 to 5 years 0.00

Over 5 years 73,782.79

Total 14,545,194,129.78

(2)Accrual, recovery or return of bad debt reserve in current period

Provision for bad debts of the current period:

Unit: RMB

Changes in amount of the current period

Category Opening balance Accrual Withdrawal or Write-off Other Closing balance
write-back

Accounts
receivable with

bad debts 126,326,184.81 16,834,146.02 -5,853,016.02 149,013,346.85
reserves by
group

Total 126,326,184.81 16,834,146.02 -5,853,016.02 149,013,346.85

Among them, significant information of bad debt reserves withdrawn or written back in the current period:

None
Other explanations:

Bad debt provision for factoring receivables accrued, reversed or recovered during the period


First stage Second stage Third stage

Expected credit loss Expected credit loss Expected credit loss

Bad-debt provision for the entire duration for the entire duration Total

over the next 12 (credit impairment (credit impairment has

months not occurred) occurred)

Balance at the end of the 840,826.27 840,826.27
previous year

In the current period, the

balance at the end of the

previous year:

- Transferred to second stage

- Transferred to third stage

- Reversed to second stage

- Reversed to first stage

Accrual in the current period 333,190.12 333,190.12

Current reverse
Current resale

Amount written off in the

current period
Other changes

Closing balance 1,174,016.39 1,174,016.39

(3)Accounts receivable actually written off in current period

None

(4)Accounts receivable of the 5 highest closing balance by debtor

Unit: RMB

Company name Closing balance of accounts Proportion of total closing Closing balance of bad debt
receivable balance of accounts receivable provision

Customer 1 6,320,677,712.98 43.46% 63,206,777.13

Customer 2 1,852,535,914.15 12.74% 18,525,359.14

Customer 3 882,328,281.57 6.07% 8,823,282.81

Customer 4 868,620,745.78 5.97% 8,686,207.46

Customer 5 835,789,178.64 5.74% 8,357,891.79

Total 10,759,951,833.12 73.98%

(5)Amount of assets and liabilities formed by transferring accounts receivable and continuing to be

involved
None

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

Unit: RMB

Transfer method of financial assets Amount of accounts receivable recognized at the end of the period Gains or losses related
to derecognition

Buyout factoring 5,303,127,647.05 -23,037,232.06

5. Financing receivables

Unit: RMB

Item Closing balance Opening balance

Notes receivable 22,375,874.12 14,575,230.24

Total 22,375,874.12 14,575,230.24

Changes in the current period of financing receivables and changes in fair value

 Applicable  Not applicable

If the provision for impairment of financing receivables is accrued according to the general model of expected credit loss, please

refer to the disclosure methods for other receivables when disclosing information related to provision for impairment:

 Applicable  Not applicable
6.Advances to suppliers

(1) Presentation of advances to suppliers by aging

Unit: RMB

Aging Closing balance Opening balance

Amount Proportion Amount Proportion

Within 1 year 50,645,746.34 99.98% 85,353,901.12 87.50%

1 to 2 years 10,407.09 0.02% 12,190,916.86 12.50%

Total 50,656,153.43 97,544,817.98

Explanation of reasons why advances to suppliers aged more than 1 year with significant amount are not settled in time:

None

(2)Advance payment in the five highest closing balance by seller

Company name Book balance Percentage of total balance of

(RMB) prepayment (%)

Company 1 7,987,275.00 15.77

Company 2 6,666,720.00 13.16

Company 3 5,847,378.37 11.54

Company 4 3,869,299.47 7.64

Company 5 2,306,248.20 4.55

Total 26,676,921.04 52.66

7. Other receivables

Unit: RMB

Item Closing balance Opening balance

Other receivables 96,442,803.18 374,669,355.98

Total 96,442,803.18 374,669,355.98

(1) Interest receivable
None
(2) Dividends receivable
None
(3) Other receivables

1) Classification of other receivables by nature of payment

Unit: RMB

Nature of payment Closing book balance Opening book balance

Tax refund for export receivable 1,541,663.86 107,739,537.40

Security deposit 56,247,217.13 90,839,988.55

Current account 9,261,136.47 164,646,290.05

Withholding and remitting social 53,852,019.34 39,293,343.86
insurance and housing provident fund

Other 572,915.09 815,580.66

Total 121,474,951.89 403,334,740.52

2) Provision for bad debts

Unit: RMB

First stage Second stage Third stage

Bad-debt provision Expected credit loss Expected credit loss for the Expected credit loss for the Total

over the next 12 months entire duration (credit entire duration (credit

impairment not occurred) impairment has occurred)

Balance as of January 1, 28,665,384.54 28,665,384.54
2022:

Balance as of January 1,

2022 in the current
period

- Transferred to third -894,232.57 894,232.57

stage

Accrual in the current -3,024,992.01 411,441.91 -2,613,550.10
period

Amount written off in 970,882.57 970,882.57
the current period

Other changes 48,803.16 48,803.16

Balance as of December 24,697,356.80 334,791.91 25,032,148.71
31, 2022:

Significant changes in the carrying value of changes in the allowances for losses in the current period

 Applicable  Not applicable

Disclosed by age of accounts receivable

Unit: RMB

Aging Book balance

Within 1 year (including 1 year) 84,047,670.81

1 to 2 years 10,851,113.92


2 to 3 years 11,279,658.86

Over 3 years 15,296,508.30

3 to 4 years 3,010,094.34

4 to 5 years 6,358,648.54

Over 5 years 5,927,765.42

Total 121,474,951.89

3)Accrual, recovery or return of bad debt reserve in current period

Provision for bad debts of the current period:

Unit: RMB

Changes in amount of the current period

Category Opening balance Accrual Withdrawal or Write-off Other Closing balance
write-back

Accounts
receivable with

bad debts 28,665,384.54 -2,613,550.10 970,882.57 48,803.16 25,032,148.71
reserves by
group

Total 28,665,384.54 -2,613,550.10 970,882.57 48,803.16 25,032,148.71

Among them, significant amount in bad debt reserves written back or withdrawn in the current period:

None

4) Other receivables actually written off in the current period

Unit: RMB

Item Written off amount

Other receivables actually written off 970,882.57

Among them, write-off of other significant receivables:

None

5) Other receivables of the 5 highest closing balance by debtor

Unit: RMB

Ratio in the total Closing balance of
Company name Nature of payment Closing balance Aging closing balance of bad debt provision
other receivables

Withholding and

remitting social

1 insurance and 53,852,019.34 Within 1 year 44.34% 538,520.19
housing provident

fund

2 Security deposit 6,634,710.00 Over 3 years 5.46% 6,634,710.00

3 Earnest money 6,522,194.38 Over 3 years 5.37% 6,522,194.38

4 Security deposit 6,213,130.31 2-3 years 5.11% 3,106,565.16

5 Earnest money 6,000,000.00 Within 1 year, 1-2 4.94% 930,000.00
years

Total 79,222,054.03 65.22% 17,731,989.73


6) Other receivables involving government subsidies

None

7) Other receivables derecognized due to transfer of financial assets

None

8)Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
None
8. Inventories

Whether the Company needs to comply with disclosure requirements of real estate industry

No
(1) Inventory classification

Unit: RMB

Closing balance Opening balance

Inventory

Inventory falling falling price

price reserves or reserves or

Item provision for provision for

Book balance impairment of Book value Book balance impairment of Book value

contract contract

performance cost performance

cost

Raw 6,446,001,906.31 258,676,409.56 6,187,325,496.75 5,166,920,234.13 110,350,236.94 5,056,569,997.19
materials

Products 2,676,387,256.76 565,750,473.85 2,110,636,782.91 2,315,184,723.77 59,814,311.48 2,255,370,412.29
in process

Goods in 8,733,573,211.28 246,557,267.39 8,487,015,943.89 4,408,510,122.04 59,150,749.51 4,349,359,372.53
stock

Revolving 563,692,521.03 563,692,521.03 421,008,703.37 421,008,703.37
materials

Total 18,419,654,895.38 1,070,984,150.80 17,348,670,744.58 12,311,623,783.31 229,315,297.93 12,082,308,485.38

(2) Inventory falling price reserves or provision for impairment of contract performance cost

Unit: RMB

Increased amount in the Decreased amount in the current period

Item Opening balance current period Closing balance
Accrual Other Write-back or Other

resale

Raw materials 110,350,236.94 349,831,755.11 201,853,198.93 -347,616.44 258,676,409.56

Products in 59,814,311.48 601,865,519.43 97,356,053.87 -1,426,696.81 565,750,473.85
process

Goods in stock 59,150,749.51 251,582,163.71 68,213,059.58 -4,037,413.75 246,557,267.39

Total 229,315,297.93 1,203,279,438.25 367,422,312.38 -5,811,727.00 1,070,984,150.80


(3) Explanation of the closing balance of inventory containing the capitalized amount of borrowing costs

None

(4) Explanation of amortization amount of contract performance cost in current period

None

9. Current portion of non-current assets

Unit: RMB

Item Closing balance Opening balance

Current portion of non-current assets 70,302,566.25

Total 70,302,566.25

Significant debt investments/other debt investments
None
10. Other current assets

Unit: RMB

Item Closing balance Opening balance

Input tax retained for VAT 288,229,492.06 326,273,163.10

Input tax to be verified and to be deducted 74,879,772.45 129,974,831.71

Advance payment of enterprise income tax 152,235,755.00 6,833,590.83

Other 15,646,416.05 12,690,641.96

Total 530,991,435.56 475,772,227.60

11. Long-term equity investments

Unit: RMB

Increase or decrease in the current period

Opening Recognized Closing Closing
Invested balance investment Other Other Cash Provision balance balance of
entity (book Investment Investment gain and loss comprehensive changes dividends for Other (book impairment
value) addition reduction under equity income in equity or profits impairment value) provision
method adjustments declared reserve

I. Joint Venture
II. Affiliated enterprises

AKM -

Industrial 318,147,44 325,487,19 9,868,272.14 -15,493,341.86 4,520,134 17,484,

Company 3.07 9.68 .39 960.72

Limited
Qingdao

Virtual 39,212,455 - 38,076,72

Reality .60 1,135,734.37 1.23

Institute
Co., Ltd.

Enkris 80,042,305 50,000,000 - 130,626,7

Semicondu .24 .00 1,260,535.68 676,054.1 86.73

ctor Inc. 9

Beijing

Uphoton 200,000,00 - 192,305,1

Technolog 0.00 7,694,836.13 63.87

y Co., Ltd.


437,402,20 250,000,00 325,487,19 - 4,520,134 - 361,008,6

Sub-total 3.91 0.00 9.68 2,298,237.32 -15,493,341.86 676,054.1 .39 17,484, 71.83

9 960.72

437,402,20 250,000,00 325,487,19 - 4,520,134 - 361,008,6

Total 3.91 0.00 9.68 2,298,237.32 -15,493,341.86 676,054.1 .39 17,484, 71.83

9 960.72

12. Investments in other equity instruments

Unit: RMB

Item Closing balance Opening balance

Investment projects of the Fund Company 399,417,490.79 318,163,764.54

Mobvoi Inc. 139,292,000.00 127,514,000.00

Shenzhen New Radio Technology Co., 20,000,000.00 20,000,000.00
Ltd.

Nanjing Xinshijie Microelectronics 50,000,000.00

Technology Co., Ltd.

KOLMOSTAR (CAYMAN) LIMITED 34,823,000.00

EMPOWER SEMICONDUCTOR, INC. 55,716,771.45

Total 699,249,262.24 465,677,764.54

Disclose investments in non-trading equity instruments of the period by item

Unit: RMB

Reasons for Reasons for
Amount of other designation of other

Dividend Accumulative Accum comprehensive financial assets at fair comprehensive
Name of project income gains ulative income transferred to value through other income

recognized losses undistributed profits comprehensive transferred to
income undistributed
profits

Investment projects 63,867,720.18 54,204,866.03 Non-trading equity Disposal of

of the Fund Company instrument equity

Mobvoi Inc. Non-trading equity

instrument

Shenzhen New Radio Non-trading equity

Technology Co., Ltd. instrument

Nanjing Xinshijie Non-trading equity

Microelectronics instrument

Technology Co., Ltd.

KOLMOSTAR Non-trading equity

(CAYMAN) instrument

LIMITED

EMPOWER Non-trading equity

SEMICONDUCTOR instrument

, INC.

Total 63,867,720.18 54,204,866.03

Other explanations:

The accumulative gain from the disposal of the equity held by the fund company is RMB 93,489,685.96, of which RMB 54,204,866.03
is transferred to undistributed profits, and equity attributable to other partners of the fund company is RMB 39,284,819.93.

13. Other non-current financial assets

Unit: RMB

Item Closing balance Opening balance

Financial assets classified as measured at

fair value with changes recorded in current 318,661,575.31 201,430,042.13
profits and losses

Total 318,661,575.31 201,430,042.13

14. Fixed assets

Unit: RMB

Item Closing balance Opening balance

Fixed assets 21,459,756,268.25 18,123,352,480.76

Total 21,459,756,268.25 18,123,352,480.76

(1) Overview of fixed assets

Unit: RMB

Item Houses and Production Test equipment Office equipment Transportation Total

buildings equipment equipment

I. Original book
value:

1. Opening 8,908,580,031.83 14,760,235,631.6 2,270,622,048.27 627,324,825.83 23,392,392.51 26,590,154,930.0
balance 0 4

2. Amount

increased in 954,037,962.29 5,342,238,805.29 653,888,026.10 143,902,249.49 1,442,342.86 7,095,509,386.03
current period

(1) Purchase 28,931,306.90 1,738,835,094.71 232,984,667.73 135,329,066.20 1,376,826.86 2,137,456,962.40

(2) Transfer from

construction in 822,311,194.19 3,484,350,588.69 407,795,051.27 4,334,451.45 4,718,791,285.60
progress
(3) Increase in
business
combinations
(4) Impact of
difference from

translation of 49,073,587.67 118,860,328.51 13,108,307.10 4,238,731.84 65,516.00 185,346,471.12
statements in
foreign currency
(5) Provisional

estimate 53,721,873.53 192,793.38 53,914,666.91
adjustment

3. Amount

decreased in 15,780,124.16 600,452,131.25 229,656,360.99 41,007,602.48 518,730.34 887,414,949.22
current period

(1) Disposal or 59,825.50 483,700,868.86 99,169,031.48 40,998,358.50 518,730.34 624,446,814.68
scrapping
(2) Transfer to

construction in 116,400,876.14 130,487,329.51 246,888,205.65
progress

(3) Provisional

estimate 15,720,298.66 350,386.25 16,070,684.91
adjustment
(4) Others -

disposal of 9,243.98 9,243.98
subsidiaries

4. Closing 9,846,837,869.96 19,502,022,305.6 2,694,853,713.38 730,219,472.84 24,316,005.03 32,798,249,366.8
balance 4 5

II. Accumulated
depreciation

1. Opening 1,322,505,674.30 5,970,789,207.13 831,755,135.49 325,266,424.92 16,486,007.44 8,466,802,449.28
balance

2. Amount

increased in 307,373,203.80 2,055,865,192.39 297,801,645.96 104,812,884.43 1,818,061.66 2,767,670,988.24
current period

(1)Accrual 304,074,483.41 2,033,456,070.43 295,499,133.96 102,518,087.30 1,806,379.33 2,737,354,154.43

(2) Impact of
difference from

translation of 3,298,720.39 22,409,121.96 2,302,512.00 2,294,797.13 11,682.33 30,316,833.81
statements in
foreign currency

3. Amount

decreased in 28,416.95 343,711,613.31 107,419,493.15 23,829,173.94 456,563.23 475,445,260.58
current period

(1) Disposal or 28,416.95 325,835,508.12 66,818,768.54 23,828,640.60 456,563.23 416,967,897.44
scrapping
(2) Transfer to

construction in 17,876,105.19 40,600,724.61 58,476,829.80
progress
(3) Others -

disposal of 533.34 533.34
subsidiaries

4. Closing 1,629,850,461.15 7,682,942,786.21 1,022,137,288.30 406,250,135.41 17,847,505.87 10,759,028,176.9
balance 4

III. Impairment
provision

1. Opening
balance

2. Amount

increased in 568,248,570.99 8,918,010.08 2,298,340.59 579,464,921.66
current period

(1)Accrual 568,248,570.99 8,918,010.08 2,298,340.59 579,464,921.66

3. Amount
decreased in
current period
(1) Disposal or
scrapping

4. Closing 568,248,570.99 8,918,010.08 2,298,340.59 579,464,921.66
balance

IV. Book value

1. Book

value at the end 8,216,987,408.81 11,250,830,948.4 1,663,798,415.00 321,670,996.84 6,468,499.16 21,459,756,268.2
of the reporting 4 5
period

2. Opening 7,586,074,357.53 8,789,446,424.47 1,438,866,912.78 302,058,400.91 6,906,385.07 18,123,352,480.7
book value 6

(2) Fixed assets temporarily idle

Unit: RMB

Item Original book value Accumulated Depreciation Book value Notes

depreciation reserves

Houses and 510,898,895.26 83,167,961.06 427,730,934.20

buildings

Production 2,851,846,929.06 195,002,843.55 568,248,570.99 2,088,595,514.52

equipment

Test equipment 81,518,296.69 16,004,787.81 8,918,010.08 56,595,498.80

Office equipment 37,679,813.88 11,594,110.80 2,298,340.59 23,787,362.49

Total 3,481,943,934.89 305,769,703.22 579,464,921.66 2,596,709,310.01

(3) Fixed assets leased out through operating leases

Unit: RMB

Item Book value at the end of the reporting period

Houses and buildings 320,815,654.11

Production equipment and other equipment 324,777,276.11

Total 645,592,930.22

(4) Overview of the fixed assets for which certificates of title to be obtained

Unit: RMB

Item Book value Reasons for not obtaining the certificate of
title

9# Factory building 144,927,930.97 Property rights certificate under

processing

55# Factory building 89,166,685.42 Property rights certificate under

processing

56# Factory building 88,849,225.81 Property rights certificate under

processing

52#Apartment 185,265,107.54 Property rights certificate under

processing

23#Apartment 2,597,183.74 Property rights certificate under

processing

E area carport 42,025,112.90 Property rights certificate under

processing

Total 552,831,246.38

(5) Liquidation of fixed assets
None

15. Construction in progress

Unit: RMB

Item Closing balance Opening balance

Construction in progress 2,276,965,736.33 2,127,055,853.77

Construction materials 147,478,039.00

Total 2,424,443,775.33 2,127,055,853.77

(1) Overview of construction in progress

Unit: RMB

Closing balance Opening balance

Item Depreciatio Depreciatio

Book balance n reserves Book value Book balance n reserves Book value

Unaccepted 530,677,599.03 530,677,599.03 705,426,549.35 705,426,549.35
equipment

2# Office 287,041,263.11 287,041,263.11 160,023,622.42 160,023,622.42
building

Self-made 239,378,426.17 239,378,426.17 453,794,330.67 453,794,330.67
equipment

Sporadic projects 183,389,745.14 183,389,745.14 155,430,727.09 155,430,727.09

63# Factory 158,512,473.50 158,512,473.50 38,623,187.09 38,623,187.09
building

Infrastructure 147,355,671.17 147,355,671.17 1,614,213.25 1,614,213.25
construction

39# Factory 111,488,614.81 111,488,614.81 106,641,302.22 106,641,302.22
building

72# Factory 78,813,471.88 78,813,471.88 12,277,054.11 12,277,054.11
building

74# Factory 64,820,307.60 64,820,307.60 17,779,539.88 17,779,539.88
building

64# Factory 59,007,078.74 59,007,078.74 8,103,133.65 8,103,133.65
building

75# Factory 57,780,367.36 57,780,367.36 15,726,428.05 15,726,428.05
building

76# Factory 54,322,988.22 54,322,988.22 22,751,748.04 22,751,748.04
building

65# Factory 37,794,076.56 37,794,076.56 4,363,631.55 4,363,631.55
building

66# Factory 37,772,311.18 37,772,311.18 4,361,621.04 4,361,621.04
building

67# Factory 36,939,485.41 36,939,485.41 12,688,314.15 12,688,314.15
building

68# Factory 34,968,643.25 34,968,643.25 13,063,930.16 13,063,930.16
building

69# Factory 34,606,945.61 34,606,945.61 13,084,558.18 13,084,558.18
building

73# Factory 34,217,551.92 34,217,551.92 18,061,783.67 18,061,783.67
building


77# Factory 26,720,487.51 26,720,487.51

building

70# Factory 21,058,712.36 21,058,712.36 6,883,803.12 6,883,803.12
building

71# Factory 18,649,051.46 18,649,051.46 5,376,869.24 5,376,869.24
building
Reconstruction

and expansion of 10,924,075.53 10,924,075.53

factory buildings

80# Factory 5,762,284.64 5,762,284.64

building

78# Factory 4,873,511.68 4,873,511.68

building

79# Factory 90,592.49 90,592.49

building

52# Factory 77,142,513.20 77,142,513.20
building

46# Factory 56,866,174.61 56,866,174.61
building

38# Factory 27,185,507.14 27,185,507.14
building

37# Factory 65,991,667.31 65,991,667.31
building

47# Factory 8,653,090.45 8,653,090.45
building

49# Factory 10,804,751.93 10,804,751.93
building

43# Factory 17,137,354.45 17,137,354.45
building

48# Factory 9,111,894.09 9,111,894.09
building

42# Factory 78,086,553.66 78,086,553.66
building

Total 2,276,965,736.33 2,276,965,736.33 2,127,055,853.77 2,127,055,853.77

(2) Increase or decrease of significant construction in progress in current period

Unit: RMB

Includin

Amount Accumula g:

Increased transferred Other Proportion ted Amount Interest

Name of Budget Opening amount in to fixed amount Closing of total Project amount of of capitalization Source
project amount balance the assets in decreased balance project progress interest interest rate for of
current current in current input to capitalizat capitaliz current period funds
period period period budget ion ation in

current

period

Unaccepted 705,426,5 1,721,559, 1,900,211,0 - 530,677,

equipment 49.35 636.32 48.64 3,902,462 599.03 Other
.00

2# Office 357,080, 160,023,6 127,017,6 287,041, 80.39% 90% Other


building 000.00 22.42 40.69 263.11

Self-made 453,794,3 1,781,853, 1,996,269,0 239,378, Other
equipment 30.67 138.27 42.77 426.17

Sporadic 155,430,7 304,476,8 106,291,620 170,226,2 183,389, Other
projects 27.09 42.17 .80 03.32 745.14

63# Factory 172,939, 38,623,18 119,889,2 158,512, 91.66% 95% Other
building 700.00 7.09 86.41 473.50

Infrastructu 1,614,213. 177,455,5 31,714,061. 147,355,

re 25 19.34 42 671.17 Other
construction

39# Factory 133,327, 106,641,3 4,847,312. 111,488, 83.62% 85% Other
building 700.00 02.22 59 614.81

72# Factory 92,834,0 12,277,05 63,863,68 - 78,813,4

building 00.00 4.11 0.13 2,672,737 71.88 84.90% 75% Other
.64

74# Factory 67,737,0 17,779,53 44,908,35 - 64,820,3

building 00.00 9.88 2.41 2,132,415 07.60 95.69% 85% Other
.31

64# Factory 77,500,0 8,103,133. 50,903,94 59,007,0 76.14% 90% Other
building 00.00 65 5.09 78.74

75# Factory 59,965,0 15,726,42 40,156,28 - 57,780,3

building 00.00 8.05 1.49 1,897,657 67.36 96.36% 85% Other
.82

76# Factory 56,401,0 22,751,74 29,580,86 - 54,322,9

building 00.00 8.04 3.46 1,990,376 88.22 96.32% 95% Other
.72

65# Factory 90,000,0 4,363,631. 33,430,44 37,794,0 41.99% 43% Other
building 00.00 55 5.01 76.56

66# Factory 90,000,0 4,361,621. 33,410,69 37,772,3 41.97% 43% Other
building 00.00 04 0.14 11.18

67# Factory 39,464,0 12,688,31 22,969,77 - 36,939,4

building 00.00 4.15 4.41 1,281,396 85.41 93.60% 85% Other
.85

68# Factory 40,951,0 13,063,93 20,664,42 - 34,968,6

building 00.00 0.16 9.06 1,240,284 43.25 85.39% 85% Other
.03

69# Factory 41,006,0 13,084,55 20,290,89 - 34,606,9

building 00.00 8.18 9.38 1,231,488 45.61 84.39% 83% Other
.05

73# Factory 51,949,0 18,061,78 14,805,45 - 34,217,5

building 00.00 3.67 1.98 1,350,316 51.92 65.87% 70% Other
.27

77# Factory 36,041,4 26,720,48 26,720,4 74.14% 90% Other
building 84.00 7.51 87.51

70# Factory 25,857,0 6,883,803. 13,453,45 - 21,058,7

building 00.00 12 4.81 721,454.4 12.36 81.44% 85% Other
3

71# Factory 19,454,0 5,376,869. 12,973,74 - 18,649,0

building 00.00 24 1.55 298,440.6 51.46 95.86% 85% Other
7

Reconstruct

ion and 82,160,27 71,236,202. 10,924,0

expansion 8.33 80 75.53 Other
of factory
buildings


80# Factory 187,000, 5,762,284. 5,762,28 3.08% 3% Other
building 000.00 64 4.64

78# Factory 155,382, 4,873,511. 4,873,51 3.14% 2% Other
building 125.40 68 1.68

79# Factory 330,260, 90,592.49 90,592.4 0.03% Other
building 781.60 9

52# Factory 204,098, 77,142,51 108,612,7 185,755,295 91.01% 100% Other
building 200.00 3.20 81.92 .12

46# Factory 94,000,0 56,866,17 62,049,63 118,915,808 126.51% 100% Other
building 00.00 4.61 4.16 .77

38# Factory 62,493,2 27,185,50 38,231,13 65,416,645. 104.68% 100% Other
building 72.60 7.14 8.08 22

37# Factory 99,990,0 65,991,66 31,150,04 97,141,713. 97.15% 100% Other
building 00.00 7.31 5.73 04

47# Factory 24,500,0 8,653,090. 17,771,28 26,424,375. 107.85% 100% Other
building 00.00 45 4.55 00

49# Factory 32,000,0 10,804,75 6,021,972. 16,826,724. 52.58% 100% Other
building 00.00 1.93 30 23

43# Factory 18,670,0 17,137,35 592,457.5 17,729,812. 94.96% 100% Other
building 00.00 4.45 9 04

48# Factory 9,200,00 9,111,894. - 6,748,078.3

building 0.00 09 2,363,815. 8 73.35% 100% Other
71

42# Factory 82,826,8 78,086,55 24,303.71 78,110,857. 94.31% 100% Other
building 67.00 3.66 37

Total 2,752,92 2,127,055, 5,020,208, 4,718,791,2 151,507,1 2,276,96

8,130.60 853.77 341.69 85.60 73.53 5,736.33

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

None
(4) Construction materials

Unit: RMB

Closing balance Opening balance

Item Book balance Depreciation Book value Book balance Depreciation Book value

reserves reserves

Construction 147,478,039.00 147,478,039.00

materials

Total 147,478,039.00 147,478,039.00

16. Right-of-use assets

Unit: RMB

Item Houses and buildings Total

I. Original book value

1. Opening balance 441,665,247.28 441,665,247.28

2. Amount increased in current period 396,364,758.73 396,364,758.73

(1) New leases in the current period 387,332,676.00 387,332,676.00

(2) Impact of difference from translation 9,032,082.73 9,032,082.73
of statements in foreign currency

3. Amount decreased in current 42,555,571.38 42,555,571.38

period

(1) Disposal 42,555,571.38 42,555,571.38

4. Closing balance 795,474,434.63 795,474,434.63

II. Accumulated depreciation

1. Opening balance 110,868,726.62 110,868,726.62

2. Amount increased in current period 135,485,658.48 135,485,658.48

(1)Accrual 132,043,964.75 132,043,964.75

(2) Impact of difference from

translation of statements in foreign 3,441,693.73 3,441,693.73
currency

3. Amount decreased in current 31,055,873.20 31,055,873.20
period

(1) Disposal 31,055,873.20 31,055,873.20

4. Closing balance 215,298,511.90 215,298,511.90

III. Impairment provision

1. Opening balance

2. Amount increased in current period

(1)Accrual

3. Amount decreased in current

period

(1) Disposal

4. Closing balance

IV. Book value

1. Book value at the end of the 580,175,922.73 580,175,922.73
reporting period

2. Opening book value 330,796,520.66 330,796,520.66

17. Intangible assets
(1) Overview of intangible assets

Unit: RMB

Item Land-use right Patent right Non-patent Other Total

technology

I. Original book
value

1. Opening 1,439,499,400.79 8,964,410.00 3,305,496,457.05 235,180,322.80 4,989,140,590.64
balance

2. Amount

increased in current 132,428,026.82 479,056,102.14 36,282,298.76 647,766,427.72
period

(1) Purchase 116,914,980.00 36,367,588.82 153,282,568.82

(2) Internal R&D 479,056,102.14 479,056,102.14

(3) Increase in
business
combinations

(4) Impact of 15,513,046.82 -85,290.06 15,427,756.76
difference from

translation of
statements in
foreign currency

3. Amount

decreased in current 218,038,817.46 218,038,817.46
period

(1) Disposal 216,021,931.15 216,021,931.15

(2) Others - disposal 2,016,886.31 2,016,886.31
of subsidiaries

4. Closing 1,571,927,427.61 8,964,410.00 3,566,513,741.73 271,462,621.56 5,418,868,200.90
balance
II. Accumulated
amortization

1. Opening 175,704,043.04 2,838,729.83 1,910,763,604.90 137,040,424.02 2,226,346,801.79
balance

2. Amount

increased in current 29,177,012.50 896,441.00 623,541,411.21 35,546,615.63 689,161,480.34
period

(1)Accrual 28,116,040.52 896,441.00 623,541,411.21 35,606,271.90 688,160,164.63

(2) Impact of
difference from

translation of 1,060,971.98 -59,656.27 1,001,315.71
statements in
foreign currency

3. Amount

decreased in current 217,433,751.91 217,433,751.91
period

(1) Disposal 216,021,931.15 216,021,931.15

(2) Others 1,411,820.76 1,411,820.76

4. Closing 204,881,055.54 3,735,170.83 2,316,871,264.20 172,587,039.65 2,698,074,530.22
balance
III. Impairment
provision

1. Opening
balance

2. Amount
increased in current
period
(1)Accrual

3. Amount
decreased in current
period
(1) Disposal

4. Closing
balance
IV. Book value

1. Book value

at the end of the 1,367,046,372.07 5,229,239.17 1,249,642,477.53 98,875,581.91 2,720,793,670.68
reporting period


2. Opening 1,263,795,357.75 6,125,680.17 1,394,732,852.15 98,139,898.78 2,762,793,788.85
book value

At the end of this period, the proportion of intangible assets created through internal research and development of the Company to

the balance of intangible assets is 59.21%.

(2) Overview of land-use right without certificates of title

Unit: RMB

Item Book value Reasons for not obtaining the certificate of
title

Land use right 1 58,449,401.70 Property rights certificate under

processing

Land use right 2 58,270,720.00 Property rights certificate under

processing

18. Development costs

Unit: RMB

Increased amount in the Decreased amount in the current period

Item Opening balance current period Closing balance
Internal Other Recognized as Transfer to current

development costs intangible assets profit and loss

Self-developed

technologies for 242,956,092.44 5,198,312,190.48 479,056,102.14 4,601,034,068.87 361,178,111.91
electroacoustic
products

Total 242,956,092.44 5,198,312,190.48 479,056,102.14 4,601,034,068.87 361,178,111.91

19. Goodwill

(1) Original book value of goodwill

Unit: RMB

Increase in the current period Decrease in the current

Name of the invested entity Opening balance period Closing balance
or matter forming goodwill Formed by business

combinations Other Disposal Other

Goertek Electronics, Inc. 1,743,540.56 1,743,540.56

Weifang Goertek

Communication 15,115,644.52 15,115,644.52
Technology Co., Ltd.

GoerTek 8,831,473.29 8,831,473.29
Audio TechnologiesAps

Total 25,690,658.37 25,690,658.37

(2) Impairment provision for goodwill

Unit: RMB

Increase in the current Decrease in the

Name of the invested entity or matter Opening period current period Closing balance
forming goodwill balance Accrual Other Disposal Other

Goertek Electronics, Inc.
Weifang Goertek Communication
Technology Co., Ltd.

GoerTek Audio TechnologiesAps 8,831,473.29 8,831,473.29

Total 8,831,473.29 8,831,473.29

Information about the asset group or portfolio of asset groups of goodwill

As of December 31, 2021, the net value of goodwill was RMB 16,859,185.08, of which RMB 15,115,644.52 was related to the
acquisition of Weifang Goertek Communication Technology Co., Ltd. No goodwill impairment was recognized in the year, as the
recoverable amount of the relevant group of assets valued under the equity method was higher than its carrying value (including part
of carrying value of goodwill apportioned).

Explain the goodwill impairment test process, key parameters (such as the forecast period growth rate, stable period growth rate,

profit rate, discount rate, forecast period, etc. when the present value of the future cash flow is expected) and the recognition method
of goodwill impairment loss
None
Impact of goodwill impairment test
None
20. Long-term prepaid expenses

Unit: RMB

Item Opening balance Increased amount in Amortized amount Other decreased Closing balance
the current period in the current period amount

Expenditure on 192,445,511.85 184,443,025.84 75,544,265.81 -2,093,031.38 303,437,303.26
house improvement

IT project service 4,439,272.89 28,477,398.48 5,832,519.69 27,084,151.68
fee

Design fee 350,431.01 7,872,669.14 1,435,531.03 6,787,569.12

Financing guarantee 1,767,500.00 1,515,000.00 252,500.00
fee

Bank commission 8,192,774.50 8,643,038.50 -450,264.00

and arrangement fee

Total 207,195,490.25 220,793,093.46 92,970,355.03 -2,543,295.38 337,561,524.06

21. Deferred tax assets/liabilities

(1) Deferred tax assets not offset

Unit: RMB

Closing balance Opening balance

Item Deductible temporary Deductible temporary

difference Deferred tax assets difference Deferred tax assets

Provision for 1,714,479,986.93 259,912,213.28 286,270,259.14 45,253,703.58
impairment of assets

Unrealized profit from 1,106,784,542.91 182,217,984.94 1,058,642,169.31 161,021,024.99
internal transaction

Deductible loss 4,978,155,153.32 825,412,239.76 1,291,424,655.49 204,109,171.19

Government subsidies 303,540,279.67 47,040,683.06 299,191,717.99 46,916,190.75

Financial assets held for

trading - changes in fair 52,130,372.98 7,819,555.95

value of equity

instrument

Changes in the fair value

of derivative financial 182,318,270.45 29,492,906.86 15,190,564.34 2,285,343.12
instruments

Temporary differences 42,335,704.66 6,350,355.70 46,297,192.22 6,944,578.83
of fixed assets

Expenses of share-based 75,231,226.39 11,284,683.96 190,629,395.67 28,594,409.35
payment

Total 8,454,975,537.31 1,369,530,623.51 3,187,645,954.16 495,124,421.81

(2) Deferred tax liabilities not offset

Unit: RMB

Closing balance Opening balance

Item Taxable temporary Deferred tax liabilities Taxable temporary Deferred tax liabilities
difference difference

Asset appreciation after
re-evaluation following

the combination with an 4,126,637.34 1,031,659.32 4,338,259.81 1,084,564.94
enterprise under
different control

Changes in the fair value

of derivative financial 185,939,899.60 27,939,770.90 29,721,944.30 4,739,855.81
instruments
Difference in time point

for recognition of 5,039,047.50 1,259,761.87 5,581,895.45 1,395,473.86
interest income of
factoring business
Difference between the

book value of fixed 4,664,457,309.75 783,266,986.21 2,536,133,275.63 380,419,991.34
assets and their tax bases

Financial assets held for

trading - changes in fair 17,469,694.02 2,620,454.10 15,290,023.02 2,293,503.45
value of equity
instrument

Total 4,877,032,588.21 816,118,632.40 2,591,065,398.21 389,933,389.40

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

Unit: RMB

Amount of deferred tax Closing balance of Amount of deferred tax Opening balance of
Item assets and liabilities deferred tax assets or assets and liabilities deferred tax assets or
mutually offset at the liabilities after offsetting mutually offset at the liabilities after offsetting
end of the period beginning of the period

Deferred tax assets 1,369,530,623.51 495,124,421.81

Deferred tax liabilities 816,118,632.40 389,933,389.40

(4) Details of unrecognized deferred tax assets

Unit: RMB

Item Closing balance Opening balance


Deductible temporary difference 108,002,751.78 98,037,802.83

Deductible loss 1,113,018,229.33 916,176,966.88

Government subsidies 8,950,659.40 3,972,247.35

Unrealized profit from internal transaction 228,644,722.04 198,600,822.88

Total 1,458,616,362.55 1,216,787,839.94

(5) Deductible loss of unrecognized deferred tax assets will expire in the following years

Unit: RMB

Year Closing balance Opening balance Notes

2022 9,008,881.10

2023 42,489,136.50 58,999,159.63

2024 55,578,667.67 77,929,325.94

2025 115,720,117.70 160,630,241.51

2026 129,251,092.62 172,308,560.69

2027 104,866,432.82 718,056.78

2028 44,300,430.49 37,679,003.68

2029 84,671,122.89 76,312,985.99

2030 131,354,916.79 125,931,259.51

2031 215,711,939.66 196,659,492.05

2032 189,074,372.19

Total 1,113,018,229.33 916,176,966.88

22. Other non-current assets

Unit: RMB

Closing balance Opening balance

Item Depreciation Depreciation

Book balance reserves Book value Book balance reserves Book value

Contract assets 119,469.27 1,194.69 118,274.58 119,469.27 1,194.69 118,274.58

Prepayment for 269,755,356.88 269,755,356.88 366,744,190.26 366,744,190.26
long-term assets
Input tax to be
deducted but

expected not to 17,036,311.11 17,036,311.11
be deducted
within one year
Large-
denomination

certificates of 655,000,458.30 655,000,458.30 122,540,194.44 122,540,194.44
deposit issued by
banks
Prepaid long-

term borrowings 101,102,677.91 101,102,677.91

financing costs
Equity

investment 8,461,633.81 8,461,633.81

transfer
receivable

The portion due

within one year -70,303,760.94 -1,194.69 -70,302,566.25

(Note VII. 9)

Total 964,135,835.23 964,135,835.23 506,440,165.08 1,194.69 506,438,970.39

23. Short-term borrowings
(1) Types of short-term borrowings

Unit: RMB

Item Closing balance Opening balance

Secured borrowings 508,878,860.80 1,008,216,693.01

Credit borrowings 6,611,967,165.87 3,276,642,654.01

Total 7,120,846,026.67 4,284,859,347.02

Explanation of the types of short-term borrowings:

The year-end balance of guaranteed loan is RMB 508,878,860.80 (principal: RMB 507,522,000.00; interest: RMB 1,356,860.80). A
part of the principal, RMB 487,522,000.00, is secured by a guarantee provided by Goertek Group Co., Ltd., and the remainder is
secured by a guarantee provided by its subsidiary, Goertek (HongKong) Co.,Limited.

(2) Short-term borrowings that are overdue and not repaid

None

24. Financial liabilities held for trading

Unit: RMB

Item Closing balance Opening balance

Financial liabilities held for trading 202,293,742.46 15,190,564.34

Including:

Derivative financial liabilities 202,293,742.46 15,190,564.34

Total 202,293,742.46 15,190,564.34

25. Notes payable

Unit: RMB

Type Closing balance Opening balance

Commercial acceptance notes 170,000,000.00

Bank acceptance notes 4,269,924,397.04 2,742,876,464.23

Domestic letter of credit 410,573,849.04

Total 4,850,498,246.08 2,742,876,464.23

The amount of notes payable due and unpaid at the end of this period is RMB 0.00.

26.Accounts Payable
(1) Presentation of accounts payable

Unit: RMB

Item Closing balance Opening balance

Material cost and others 23,460,996,615.58 16,391,404,094.29

Payment for equipment 1,794,480,008.06 1,663,151,657.69

Payment for construction projects 493,281,646.55 475,053,903.42


Total 25,748,758,270.19 18,529,609,655.40

(2) Important accounts payable aged above 1 year

Unit: RMB

Item Closing balance Reasons for outstanding or carry-over

Payment for construction projects 12,117,672.27 Unsettled

Payment for construction projects 6,935,430.37 Unsettled

Payment for material 5,835,592.51 Unsettled

Payment for construction projects 4,690,057.47 Unsettled

Payment for construction projects 3,456,102.47 Unsettled

Payment for material 3,079,988.19 Unsettled

Payment for construction projects 2,767,116.22 Unsettled

Payment for equipment 2,743,629.95 Unsettled

Payment for construction projects 2,500,498.78 Unsettled

Payment for construction projects 2,250,000.00 Unsettled

Payment for material 2,172,999.02 Unsettled

Total 48,549,087.25

27. Contract liabilities

Unit: RMB

Item Closing balance Opening balance

Advance payment received for products 2,295,347,547.31 2,210,825,761.69

Total 2,295,347,547.31 2,210,825,761.69

Amount and causes of significant changes in book value during the reporting period

None
28. Employee benefits payable

(1) Presentation of employee benefits payable to employees

Unit: RMB

Item Opening balance Increase in the current Decrease in the current Closing balance

period period

I. Short-term payroll 1,066,570,159.63 8,623,115,311.57 8,690,667,606.34 999,017,864.86

II. Post-employment

benefits—defined 710,631,079.84 710,631,079.84

contribution plans

II. Dismission welfare 59,659,156.13 19,105,242.60 40,553,913.53

Total 1,066,570,159.63 9,393,405,547.54 9,420,403,928.78 1,039,571,778.39

(2) Presentation of short-term payroll

Unit: RMB

Item Opening balance Increase in the current Decrease in the current Closing balance

period period

1. Salaries, bonuses, 1,054,909,054.85 7,549,129,018.00 7,620,021,779.44 984,016,293.41
allowances and subsidies

2. Employee welfare fee 458,239,229.72 458,239,229.72


3. Social insurance 337,929,585.44 337,817,349.72 112,235.72
premium

Incl.: Medical 317,618,738.11 317,541,288.91 77,449.20
insurance premium

Work injury 18,650,439.40 18,650,439.40

insurance premium

Maternity 1,660,407.93 1,625,621.41 34,786.52
insurance premium

4. Housing provident fund 259,098,144.56 259,098,144.56

5. Labor union expenditure

and employee education 11,661,104.78 18,719,333.85 15,491,102.90 14,889,335.73
expenses

Total 1,066,570,159.63 8,623,115,311.57 8,690,667,606.34 999,017,864.86

(3) Presentation of defined contribution plans

Unit: RMB

Item Opening balance Increase in the current Decrease in the current Closing balance

period period

1. Basic endowment 684,904,874.52 684,904,874.52

insurance premium

2. Unemployment 25,726,205.32 25,726,205.32

insurance premium

Total 710,631,079.84 710,631,079.84

Other explanations:

TheGroup contributestomandatorypensionprogramand unemployment benefitprogramsestablished bygovernment authority. Under
these programs, the Group makes monthly contributions to these programs at certain percentages according to the social insurance
contribution base for 2022. Except the above monthly contributions, the Group is not under other payment obligations. Corresponding
expenditures are recorded in the current profits and losses, or related asset costs when incurred.

29. Taxes payable

Unit: RMB

Item Closing balance Opening balance

VAT 38,043,970.81 35,791,727.76

Enterprise income tax 174,981,926.24 254,141,624.62

Personal income tax 11,883,118.28 9,980,898.05

City maintenance and construction tax 10,809,326.00 19,989,711.74

Education surcharge 3,269,592.35 8,056,604.31

Local education surcharges 3,106,645.36 5,766,024.57

Housing property tax 19,768,868.36 16,792,720.42

Land use tax 2,934,841.41 2,926,628.84

Stamp duties tax 20,091,251.59 3,141,644.18

Water resource tax 48.00 20.00

Environmental protection tax 22,179.18 5,024.73

Withholding taxes 17,371.06

Total 284,911,767.58 356,610,000.28

30. Other payables

Unit: RMB

Item Closing balance Opening balance

Other payables 78,974,306.79 80,187,733.17

Total 78,974,306.79 80,187,733.17

(1) Interest payable
None
(2) Dividends payable
None
(3) Other payables

1) Presentation of other payables by nature of payment

Unit: RMB

Item Closing balance Opening balance

Current accounts payable 19,961,968.64 30,175,265.11

Employee benefits payable 3,334,897.96 4,246,920.21

Deposit payable 46,944,671.46 44,029,093.10

Various security deposits payable 8,732,768.73 1,736,454.75

Total 78,974,306.79 80,187,733.17

2) Other important payables aged above 1 year

None

31. Current portion of non-current liabilities

Unit: RMB

Item Closing balance Opening balance

Long-term borrowings due within one 992,791,555.56 400,000,000.00
year (Note VII, 33)

Lease liabilities due within one year 102,826,772.18 101,408,170.04
(Notes VII, 34)

Total 1,095,618,327.74 501,408,170.04

32. Other current liabilities

Unit: RMB

Item Closing balance Opening balance

Notes receivable endorsed, undue and not 1,709,928.75
de-recognized

VAT payable—tax on items to be resold 4,252,178.60 13,134,430.26

Total 4,252,178.60 14,844,359.01

Change in short-term debentures payable:
None

33. Long-term borrowings
(1) Types of long-term borrowings

Unit: RMB

Item Closing balance Opening balance

Secured borrowings 1,100,982,361.11 1,613,294,229.18

Credit borrowings 2,097,809,194.45 990,921,555.56

Long-term borrowings due within one -992,791,555.56 -400,000,000.00
year (Note VII, 31)

Total 2,206,000,000.00 2,204,215,784.74

Description of types of long-term borrowings:

The year-end balance of guaranteed loan is RMB 1,100,982,361.11, consisting of RMB 1,100,000,000.00 of principal and RMB
982,361.11 of interest. The borrowing is secured by a guarantee provided by Goertek Group Co., Ltd.

Other explanations, including interest rate range:

The interest rate range for long-term borrowings is 2.65%-3.7% on Dec. 31, 2022. (2.7%-3.7% on December 31, 2021).

34. Lease liabilities

Unit: RMB

Item Closing balance Opening balance

Lease payment 639,092,280.68 327,964,908.57

Unrecognized financing fees -65,561,000.75 -16,346,783.13

Lease liabilities due within one year -102,826,772.18 -101,408,170.04
(Notes VII, 31)

Total 470,704,507.75 210,209,955.40

35. Deferred income

Unit: RMB

Item Opening balance Increase in the Decrease in the Closing balance Cause of formation
current period current period

Government 540,321,080.65 158,061,363.10 166,008,299.37 532,374,144.38

subsidies

Total 540,321,080.65 158,061,363.10 166,008,299.37 532,374,144.38 --

Items involving government subsidies:

Unit: RMB

Amount

Amount of included in Amount Amount of

Liability Opening new non- included in cost offset in Other Closing Asset-

item balance subsidies in operating other income current changes balance related/incom
current revenue of in current period e-related
period the current period

period

Special
funding for

corporate 500,221,040.0 55,206,363.1 61,526,672.7 493,900,730.

innovation, 5 0 1 44 Asset-related
technical
transformat
ion and

industrial
upgrading
Awards and

subsidies 38,473,413.9

for public 40,100,040.60 1,626,626.66 4 Asset-related
leasehold
houses
Subsidies

for R&D 102,855,000. 102,855,000. Income-

projects, 00 00 related

etc.

Total 540,321,080.6 158,061,363. 166,008,299. 532,374,144.

5 10 37 38

36. Other non-current liabilities

Unit: RMB

Item Closing balance Opening balance

Equity of other partners of the fund 172,261,037.39

company

Total 172,261,037.39

37. Share capital

Unit: RMB

Increase or decrease in the change (+, -)

Opening balance Bonus Transferred Closing balance
New shares shares from reserves Other Sub-total

Total shares 3,416,321,036.00 4,082,164.00 4,082,164.00 3,420,403,200.00

Other explanations:

(1) The Company's initial grant of certain stock options under the 2021 Stock Option Incentive Plan entered its first exercise period on
June 24, 2022. Due to employees' exercise of the right, the Company issued 4,082,164 Class A Shares to the incentive targets. The
share capital of the Company has been changed to RMB 3,420,403,200.

(2) As of December 31, 2022, the 93,500,000 shares of the Company held by the controlling shareholders and their persons acting in
concert have been pledged, representing 2.73% of total shares of the Company. Specifically:

Mr. Jiang Long, a shareholder of the Company, pledged his 93,500,000 shares of the Company. Among them, 16,500,000 shares are
pledged to China Merchants Securities Asset Management Co., Ltd., and the pledge period is fromNovember 1, 2022 to June 13, 2023;
33,000,000 shares are pledged to China Merchants Securities Asset Management Co., Ltd., and thepledge period is fromJune 13, 2022
to June 13, 2023; 16,000,000 shares are pledged to Zhongtai Securities (Shanghai) Co., Ltd., and the pledge period is from November
1, 2022 to June 13, 2023; 28,000,000 shares are pledged to Zhongtai Securities (Shanghai) Co., Ltd., and the pledge period is from
June 13, 2022 to June 13, 2023.

38. Capital surplus

Unit: RMB

Item Opening balance Increase in the current Decrease in the current Closing balance

period period

Capital premium (Share 8,673,556,974.68 771,293,555.91 9,444,850,530.59
capital premium)

Other capital surplus 804,549,219.62 648,749,842.09 617,490,341.27 835,808,720.44

Total 9,478,106,194.30 1,420,043,398.00 617,490,341.27 10,280,659,251.03


Other explanations, including the increase and decrease in the current period and explanation of reasons for changes:

(1) Capital surplus: Share capital premium increased by RMB 771,293,555.91 this year. Reasons: a. The initial grant of stock options
under the 2021 Stock Option Incentive Plan has entered the first exercise period, and the additional issuance of shares increased the
capital surplus by RMB 114,831,273.32; b. As the employee stock ownership plan has reached the release stage and the initial grant of
the 2021 stock options has entered the first exercise period. For this batch, other capital surplus of RMB 561,573,669.78 recognized
during the waiting period is transferred to share capital premium; c. Premium contribution by minority shareholders of the subsidiary
Goertek Optical Technology Co., Ltd increased the capital surplus by RMB 94,888,612.81.

(2) Capital surplus: Other capital surplus increased by RMB 648,749,842.09 this year, all of which were formed by share-based
payment. For details, please refer to Note XIII, Share-based Payment 1. The overall situation of share-based payment.

(3) Capital surplus: Other capital surplus decreased by RMB 617,490,341.27 this year. Reasons: a. As the employee stock ownership
plan has reached the release stage and the initial grant of the 2021 stock options has entered the first exercise period, a capital surplus
of RMB 561,573,669.78 is transferred to share capital premium; b. Under the equity method, changes in other shareholders’ equity in
the investment unit resulted in a decrease of RMB 55,916,671.49.

39. Treasury stock

Unit: RMB

Item Opening balance Increase in the current Decrease in the current Closing balance

period period

Shares of the Company

repurchased for employee 2,291,973,146.75 2,291,973,146.75
stock programs or equity
incentives

Total 2,291,973,146.75 2,291,973,146.75

Other explanations, including the increase and decrease in the current period and explanation of reasons for changes:

As of December 31, 2022, there were cumulatively 74,265,451 treasury stock, representing 2.17% of the total share capital of the
Company.
40. Other comprehensive income

Unit: RMB

2022

Less: Less:

Recorded in Recorded in

other other

Amount comprehensive comprehensive Less: Attributed

Item Opening incurred before income for the income for the Amount after tax Closing

balance income tax in previous previous Income attributable to the after tax to balance

the current period and period and tax parent company minority

period transferred in transferred in expenses shareholders

profit or loss undistributed

for the current profits for the

period current period

I. Other
comprehensive
income that

cannot be 46,931,445.38 96,344,086.62 93,489,685.96 2,195,604.99 658,795.67 49,127,050.37
subsequently
reclassified
into profit and
loss

Changes

in the fair 46,931,445.38 96,344,086.62 93,489,685.96 2,195,604.99 658,795.67 49,127,050.37
value of
investments in

other equity
instruments
II. Other
comprehensive

income that -

will be 147,078,214.95 244,763,633.22 11,857,998.44 220,328,498.94 12,577,135.84 73,250,283.99
reclassified
into profit or
loss
Including:
other
comprehensive
income that

can be 27,351,340.30 -15,493,341.86 11,857,998.44 -27,351,340.30

converted into
gains and
losses under
the equity
method

Difference
from

translation of -

financial 174,429,555.25 260,256,975.08 247,679,839.24 12,577,135.84 73,250,283.99
statements in
foreign
currency

Total other -

comprehensive 100,146,769.57 341,107,719.84 11,857,998.44 93,489,685.96 222,524,103.93 13,235,931.51 122,377,334.36
incomes

Other explanations, including the adjustment of the effective part of cash flow hedging gains and losses into the initially recognized
amount of the hedged item:

(1) Other comprehensive income that cannot be subsequently reclassified into profit and loss: Under the item of changes in the fair
value of investments in other equity instruments, RMB 658,795.67 is attributable to minority shareholders after tax, which is the equity
of other partners of the fund company. The statement is presented in other non-current liabilities.

(2) Other comprehensive income that will be reclassified into profit or loss: Under the item of difference from translation of financial
statements in foreign currency, RMB 12,577,135.84 is attributable to minority shareholders after tax. Of which, RMB 10,012,201.30
is the equity of other partners of the fund company. The statement is presented in other non-current liabilities.

41. Surplus reserve

Unit: RMB

Item Opening balance Increase in the current Decrease in the current Closing balance

period period

Statutory surplus reserve 1,446,536,121.51 1,446,536,121.51

Total 1,446,536,121.51 1,446,536,121.51

Explanation of surplus reserve, including the increase and decrease in the current period and explanation of reasons for changes:

According to the Company Law and the Articles of Association, the Company allocates 10% of net profits to the statutory surplus
reserve. The Companydoes not need to allocate further amounts if the cumulative amount ofthe statutorysurplus reserve reaches more
than 50% of the registered capital.

The Company may extract any surplus reserve after extracting the statutory surplus reserve. Any surplus reserve may be used to cover
the losses of previous years or increase the share capital after approval.

42. General risk reserve

Items Balance at the end of the Increase in the current Decrease in the current Closing
previous year period period balance

Reserve for risks in financing 6,081,200.00 6,081,200.
factoring business 00

Other explanations:

According to the Notice by the General Office of the China Banking and Insurance Regulatory Commission of Strengthening the
Supervision and Administration of Commercial Factoring Enterprises (YBJBF [2019] No. 205), the Group allocates 1% of the closing
balance of financing factoring business to the provision for risks.

43. Undistributed profits

Unit: RMB

Item 2022 2021

Undistributed profits at the end of last period 15,372,823,358.48 11,500,277,791.35
before adjustment

Undistributed profits at the beginning of the 15,372,823,358.48 11,500,277,791.35
period after adjustment

Plus: net profit attributable to the owner of 1,749,181,131.83 4,274,702,999.38
the parent company in the current period

Less: Withdrawal of statutory surplus reserve 75,858,016.34

Common stock dividends payable 668,411,117.00 499,658,337.75

Add: Disposal of investments in other equity 54,204,866.03 173,358,921.84
instruments

Undistributed profits at the end of the period 16,507,798,239.34 15,372,823,358.48

Details of the adjustment of the undistributed profits at the beginning of the period:

1) The undistributed profits affected by the retroactive adjustment in accordance with Accounting Standards for Business Enterprises
and the related new regulations at the beginning of the period is RMB 0.00.

2) The undistributed profits affected by the changes in accounting policy at the beginning of the period is RMB 0.00.

3) The undistributed profits affected by the correction of major accounting errors at the beginning of the period is RMB 0.00.

4) The undistributed profits affected by the change of combination scope caused by the common control at the beginning of the

period is RMB 0.00.

5) The undistributed profits affected by other adjustments at the beginning of the period is RMB 0.00.

44. Operating revenue and operating cost

Unit: RMB

Item 2022 2021

Income Cost Income Cost

Main business 102,966,939,788.80 91,509,198,680.69 76,946,324,805.73 66,054,072,404.35

Other business 1,927,384,373.46 1,724,277,862.59 1,275,093,812.29 1,113,594,255.31

Total 104,894,324,162.26 93,233,476,543.28 78,221,418,618.02 67,167,666,659.66

Whether the lower of the audited net profit before and the audited net profit after deducting non-recurring profits and losses is

negative
 Yes No
Revenue related information:

Unit: RMB

Classification of contracts Division 1 Total

Product types
Including:

Precision components 14,003,616,502.68 14,003,616,502.68

Smart audio device 25,880,868,282.31 25,880,868,282.31

Smart hardware 63,082,455,003.81 63,082,455,003.81

Other business income 1,927,384,373.46 1,927,384,373.46

By business regions

Including:

Domestic 9,182,257,334.82 9,182,257,334.82

Overseas 95,712,066,827.44 95,712,066,827.44

By sales channel

Including:

Direct selling 104,414,898,362.49 104,414,898,362.49

Distribution 479,425,799.77 479,425,799.77

Total 104,894,324,162.26 104,894,324,162.26

Information about performance obligations:
None

Information about the trading price apportioned to remaining performance obligations:

None
45. Taxes and surcharges

Unit: RMB

Item 2022 2021

City maintenance and construction tax 66,516,485.50 66,914,986.17

Education surcharge 20,113,757.39 25,069,506.18

Housing property tax 72,739,156.82 62,157,864.15

Land use tax 12,404,902.13 4,928,054.01

Vehicle and vessel use tax 50,823.89 52,964.86

Stamp duties tax 75,852,578.16 45,106,860.23

Local education surcharges 19,015,218.97 17,398,626.51

Local water conservancy construction 160,251.76 220,917.98
fund

Water resource tax 230.00 15,694.00

Environmental protection tax 77,095.67 26,511.41

Total 266,930,500.29 221,891,985.50

46. Selling expenses

Unit: RMB

Item 2022 2021

Employee remuneration 377,301,268.94 269,460,139.20

Share-based apportioned payment 44,473,697.53 63,634,538.59

Rental fees 5,212,260.22 4,474,361.06

Sales commission 19,599,978.50 13,450,128.71


Insurance expenses 17,874,354.85 21,984,424.28

Entertainment expenses 15,172,602.51 12,782,841.89

Travel expenses 16,715,766.24 11,173,815.95

Office expenses 21,541,427.80 14,724,830.06

Depreciation cost 14,823,196.77 14,204,718.91

Other expenses 15,584,288.69 18,980,178.43

Total 548,298,842.05 444,869,977.08

47. General and administrative expenses

Unit: RMB

Item 2022 2021

Employee remuneration 1,167,274,863.96 917,532,446.14

Share-based apportioned payment 465,535,747.22 495,415,756.61

Office expenses 165,198,225.61 110,998,813.33

Consulting fees 54,679,471.16 50,040,642.58

Depreciation cost 99,094,366.24 113,225,494.49

Amortization of intangible assets 59,414,772.34 49,984,739.09

Recruitment and training fees 49,182,108.76 36,270,849.32

Rental fees 13,335,129.18 7,451,592.83

Entertainment expenses 27,173,035.83 17,746,437.84

Travel expenses 29,354,745.57 21,380,866.38

Security expenses 40,398,042.61 22,040,105.21

Property insurance 8,548,266.15 9,898,802.88

Other expenses 115,316,870.83 99,671,226.62

Total 2,294,505,645.46 1,951,657,773.32

48. Research and development expenses

Unit: RMB

Item 2022 2021

Employee remuneration 2,210,936,970.20 1,816,259,331.16

Direct input cost 1,822,282,210.46 1,321,811,155.22

Amortization of intangible assets 628,118,767.01 534,352,849.63

Depreciation cost 165,357,575.09 115,335,756.86

Share-based apportioned payment 126,807,377.90 237,184,411.36

Design fees 33,121,202.94 15,289,807.24

Other expenses 239,901,051.39 129,840,970.63

Total 5,226,525,154.99 4,170,074,282.10

49. Financial expenses

Unit: RMB

Item 2022 2021

Interest expense 303,539,076.90 213,431,869.57

Less: Interest income 189,356,256.02 91,492,632.72

Less: Amount of interest capitalized 3,809,576.72

Exchange gains and losses -21,268,273.24 27,313,452.95


Item 2022 2021

Less: Amount of foreign exchange

gain/loss capitalized

Other 56,208,534.10 21,656,869.28

Total 149,123,081.74 167,099,982.36

50. Other income

Unit: RMB

Sources of other income 2022 2021

Government subsidies 351,383,799.43 464,119,437.91

Tax benefit included 15,097,894.50 1,044,485.08

Return of individual tax handling fee 6,724,169.25 1,558,878.12

Total 373,205,863.18 466,722,801.11

51. Investment income

Unit: RMB

Item 2022 2021

Return on long-term equity investments 2,298,237.32 23,111,753.41
measured by the equity method

Investments income from disposal of long-term 287,784,190.15 6,872,916.88
equity investments

Investment income from disposal of financial -309,999,635.90 425,908,909.46
assets held for trading

Investment income from products such as 20,466,167.48 20,903,469.99
certificates of deposit

Profits or losses arising from derecognised -23,037,232.06 -7,852,608.05
financial assets at amortised cost

Discount losses of financing receivables that -13,755,696.61

meet the conditions for derecognition

Other 295,443.10

Total -36,243,969.62 469,239,884.79

52. Gains on changes in fair value

Unit: RMB

Sources of gains on changes in fair value 2022 2021

Financial assets held for trading 98,748,584.12 -41,409,120.87

Including: Gains on changes in fair

value due to derivative financial 164,830,672.72 -104,999,182.31
instruments

Financial liabilities held for trading -171,961,305.71 -8,763,505.06

Other non-current financial assets 16,131,386.62 1,324,000.00

Total -57,081,334.97 -48,848,625.93

53. Credit impairment losses

Unit: RMB

Item 2022 2021


Credit impairment losses on bad debts of 2,613,550.10 -10,478,144.68
other receivables

Credit impairment losses on bad debts of -16,834,146.02 -19,215,532.99
accounts receivable

Total -14,220,595.92 -29,693,677.67

54.Asset impairment losses

Unit: RMB

Item 2022 2021

I. Loss on bad debts

II. Loss of inventory falling price and

impairment loss of contract performance -1,203,279,438.25 -241,076,190.54
cost

III. Impairment loss of long-term equity

investments

IV. Impairment loss of investment

properties

V. Fixed assets impairment losses -579,464,921.66

VI. Impairment loss from construction

materials

VII. Impairment loss of construction in

progress

VIII. Impairment loss of bearer biological

assets

IX. Impairment loss of oil and gas assets

X. Impairment loss of intangible assets

XI. Impairment loss of goodwill

XII. Impairment loss of contract assets 684.09

XIII. Others

Total -1,782,744,359.91 -241,075,506.45

55. Gains on disposal of assets

Unit: RMB

Source of income from disposal of assets 2022 2021

Gains on disposal of fixed assets -47,534,013.23 -31,557,333.48

Income from disposal of intangible assets -7,866.28

Income from disposal of right-of-use -364,926.50 385,373.77
assets

Total -47,898,939.73 -31,179,825.99

56. Non-operating income

Unit: RMB

Item 2022 2021 Amount recorded in current
non-recurring profits and losses

Gains from damage and

liquidation of non-current 464,291.05 50,066.59 464,291.05
assets


Other 21,013,169.39 22,394,671.59 21,013,169.39

Total 21,477,460.44 22,444,738.18 21,477,460.44

Government subsidies included in current profit and loss:

None
Other explanations:

Non-operating income: The others are mainly unpayable amounts and liquidated damages, etc.

57. Non-operating expenses

Unit: RMB

Item 2022 2021 Amount recorded in current non-
recurring profits and losses

Donation given 4,251,201.32 2,304,955.25 4,251,201.32

Losses from damage and

liquidation of non-current 117,427,303.86 91,018,949.18 117,427,303.86
assets

Other 1,051,865.31 6,535,044.63 1,051,865.31

Total 122,730,370.49 99,858,949.06 122,730,370.49

58. Income tax expenses
(1) Income tax expense statement

Unit: RMB

Item 2022 2021

Current income tax expenses 164,522,364.79 451,539,809.11

Deferred income tax expenses -446,312,602.15 -152,697,496.47

Total -281,790,237.36 298,842,312.64

(2)Adjustment process of accounting profit and income tax expenses

Unit: RMB

Item 2022

Total profit 1,509,228,147.43

Income tax expense calculated at statutory/applicable tax rate 226,384,222.11

Impact of different tax rates applied to subsidiaries -189,362,810.30

Impact of adjusting income tax in previous periods 5,094,761.83

Impact of non-taxable income -47,193,013.18

Impact of non-deductible costs, expenses and losses 9,644,530.80

Impact of deductible loss of unrecognized deferred tax assets in previous -24,531,504.83
period

Impact of deductible temporary differences or deductible losses of 59,052,399.11
unrecognized deferred tax assets in current period

Changes in balance of beginning deferred tax assets/liabilities due to tax rate 11,813,185.71
adjustment

Impact of the weighted deduction of research and development expenses -386,478,046.71

The impact of weighted deduction of depreciation of fixed assets for high-tech -37,683,420.89
enterprises

Impact of share-based payment 91,469,458.99


Income tax expenses -281,790,237.36

59. Other comprehensive income

For details, see Note VII. 40. Other comprehensive income.

60. Cash flow statement items

(1) Cash received relating to other operating activities

Unit: RMB

Item 2022 2021

Government subsidies 343,436,863.16 465,518,187.04

Current account 1,258,014,604.41 3,315,066,295.04

Interest income 183,221,677.04 79,467,922.20

Other 139,368,250.38 156,626,681.14

Total 1,924,041,394.99 4,016,679,085.42

(2) Cash paid relating to other operating activities

Unit: RMB

Item 2022 2021

Research and development expenses 2,084,157,358.43 1,462,687,665.98

Current account 1,129,587,037.65 3,404,842,851.48

Office expenses 186,739,653.41 125,723,643.39

Rental fees 18,547,389.40 11,925,953.89

Consulting fees 54,679,471.16 50,040,642.58

Entertainment expenses 42,345,638.34 30,529,279.73

Travel expenses 46,070,511.81 32,554,682.33

Insurance expenses 26,422,621.00 31,883,227.16

Sales commission 19,599,978.50 13,450,128.71

Other 239,051,045.79 255,037,716.46

Total 3,847,200,705.49 5,418,675,791.71

(3) Cash received relating to other investing activities

Unit: RMB

Item 2022 2021

Unexpired option premium received 21,653,530.71 9,258,951.92

Total 21,653,530.71 9,258,951.92

(4) Cash paid relating to other investing activities

Unit: RMB

Item 2022 2021

Net cash paid for disposal of subsidiaries 10,363,395.50

and other business units

Total 10,363,395.50


(5) Cash received relating to other financing activities

Unit: RMB

Item 2022 2021

Various securities in other currencies 2,601,999,441.96 1,380,340,710.98
recovered

Interest income on raised funds 6,134,578.99 12,024,710.52

Contributions from other partners of the 75,765,967.07

fund company

Subscription of employee stock ownership 110,000,000.00
plan

Borrowing of accounts receivable 5,000,000.00
factoring

Total 2,683,899,988.02 1,507,365,421.50

(6) Cash paid relating to other financing activities

Unit: RMB

Item 2022 2021

Various security deposit payments for 3,078,483,092.56 1,416,013,727.89
other monetary capital

Rental fees payment 128,750,261.16 102,991,821.74

Financing expense paid with borrowings 103,495,260.30

Listing expense of the Goertek 4,263,871.42 8,983,655.49
Microelectronics subsidiary

Repurchase of treasury stock 1,999,998,595.63

Buy-out factoring fee 7,852,608.05

Intermediary fee of issuance of bonds 1,940,000.00

Total 3,314,992,485.44 3,537,780,408.80

61. Supplementary information for cash flow statement

(1) Supplementary information for cash flow statement

Unit: RMB

Supplementary information Amount of current period Amount in previous period

1. Reconciliation of net profit to cash flow

from operating activities

Net profit 1,791,018,384.79 4,307,066,484.34

Add: Provision for impairment of assets 1,782,744,359.91 241,075,506.45

Credit impairment losses 14,220,595.92 29,693,677.67

Depreciation of fixed assets,

depletion of oil and gas assets and 2,737,354,154.43 2,117,567,273.70
depreciation of bearer biological assets

Depreciation of right-of-use assets 132,043,964.75 122,484,411.95

Amortization of intangible assets 688,160,164.63 588,754,476.68

Long-term prepaid expenses 92,970,355.03 89,042,424.24

Losses on disposal of fixed assets, 47,898,939.73 31,179,825.99
intangible assets and other long-term


assets (Use "-" for gain)

Loss on retirement of fixed assets 116,963,012.81 90,968,882.59
(Use "-" for gain)

Loss on changes in fair value (Use 57,081,334.97 48,848,625.93
"-" for gain)

Financial expenses (Use "-" for -67,001,475.56 214,683,875.67
gain)

Investment loss (Use "-" for gain) -548,959.05 -469,239,884.79

Decrease in deferred tax assets -874,406,201.70 -219,564,976.07
(Use "-" for gain)

Increase in deferred tax liabilities 426,185,243.00 66,867,479.60
(Use "-" for decrease)

Decrease in inventory (Use "-" for -6,108,031,112.07 -3,013,184,423.74
increase)

Decrease of operating receivable -2,061,081,561.57 -1,591,304,230.95
items (Use "-" for increase)

Increase in operational payables 8,882,166,156.12 5,072,167,615.36
(Use "-" for decrease)

Other 659,376,008.54 871,368,483.26

Net cash flow from operating 8,317,113,364.68 8,598,475,527.88
activities

2. Significant investing and financing

activities that do not involve cash receipts

and payments:

Debts transferred to capital

Convertible corporate bonds due within

one year

Fixed assets under finance lease

3. Net changes in cash and cash

equivalents:

Closing balance of cash 10,799,993,468.81 9,137,900,902.04

Less: Opening balance of cash 9,137,900,902.04 6,913,191,984.54

Add: Closing balance of cash

equivalents

Less: Opening balance of cash

equivalents

Net increase in cash and cash 1,662,092,566.77 2,224,708,917.50
equivalents

(2) Net cash paid for the acquisition of subsidiaries in the current period

None

(3) Net amount of cash received for disposal of subsidiaries in the current period

Unit: RMB

Amount

Cash or cash equivalents received in the current period from the 1,487,700.00
disposal of subsidiaries

Including:

Shenzhen Mototek Smart Technology Co., Ltd. 1,397,700.00

Qingdao Resonance Venture Capital Management Co., Ltd. 90,000.00

Less: cash and cash equivalents held by the Company on the date 11,528,130.34
of loss of control
Including:

Shenzhen Mototek Smart Technology Co., Ltd. 1,074,734.84

Qingdao Resonance Venture Capital Management Co., Ltd. 10,453,395.50

Including:

Net cash received on disposal of subsidiaries -10,040,430.34

Other explanations:

The net amount ofcash received fromthe disposal of subsidiaries isRMB -10,040,430.34. As shown in the statement, net cash received
from disposal of subsidiaries and other business units is RMB 322,965.16, and cash received relating to other investing activities is
RMB 10,363,395.50.

(4) Composition of cash and cash equivalents

Unit: RMB

Item Closing balance Opening balance

I. Cash 10,799,993,468.81 9,137,900,902.04

Including: Cash on hand 33,671.21 160,703.83

Bank deposits that can be used for 10,799,959,797.60 9,137,740,198.21
payment at any time
II. Cash equivalents

III. Closing balance of cash and cash 10,799,993,468.81 9,137,900,902.04
equivalents

62.Assets with restricted ownership or right to use

Unit: RMB

Item Book value at the end of the reporting Reasons for restrictions

period

Cash at bank and on hand 1,392,748,538.84 Deposit for bills and borrowings

Notes receivable 5,848,815.01 Bill pledge and others

Current portion of non-current assets 70,184,291.67 When large-denomination certificates of

deposit is pledged to the bank, the bank

Other non-current assets 544,796,722.20 will issue financing guarantees, notes and
so on

Total 2,013,578,367.72

63. Foreign currency monetary items
(1) Foreign currency monetary items

Unit: RMB

Item Closing foreign currency Converted exchange rate Closing converted RMB

balance balance

Cash at bank and on hand 5,214,817,550.47

Including: USD 721,965,497.12 6.9646 5,028,200,901.24


Item Closing foreign currency Converted exchange rate Closing converted RMB

balance balance

EUR 405,195.97 7.4229 3,007,729.17

HKD 6,941,764.38 0.89327 6,200,869.87

JPY 286,096,106.00 0.052358 14,979,419.92

KRW 41,603,189.63 0.005523 229,774.42

NTD 12,940,036.00 0.227060 2,938,164.57

VDN 526,837,230,968.00 0.000295 155,416,983.14

DKK 3,850,242.00 0.998303 3,843,708.14

Accounts receivable 12,360,319,597.57

Including: USD 1,773,906,842.40 6.9646 12,354,551,594.58

EUR

HKD

JPY 14,403,528.61 0.052358 754,139.95

KRW 1,029,775.74 0.005523 5,687.45

NTD 8,572,715.01 0.227060 1,946,520.67

VDN 10,348,213,427.08 0.000295 3,052,722.96

DKK 8,947.14 0.998303 8,931.96

Other receivables 26,812,047.16

Including: USD 156,444.76 6.9646 1,089,575.18

JPY 153,881,253.00 0.052358 8,056,914.64

KRW 56,661,531.91 0.005523 312,941.64

NTD 3,339,993.00 0.227060 758,378.81

VDN 55,780,573,284.01 0.000295 16,455,269.12

DKK 139,204.00 0.998303 138,967.77

Short-term borrowings 2,820,642,774.42

Including: USD 390,366,793.00 6.9646 2,718,748,566.53

VDN 345,404,094,537.49 0.000295 101,894,207.89

Accounts payable 15,723,817,308.55

Including: USD 2,235,704,428.62 6.9646 15,570,787,063.57

EUR 213,478.00 7.4229 1,584,625.85

JPY 117,563,703.96 0.052358 6,155,400.41

KRW 116,634.40 0.005523 644.17

NTD 72,614.00 0.227060 16,487.73

VDN 492,451,141,765.14 0.000295 145,273,086.82

Other payables 10,948,533.09

Including: USD 347,299.40 6.9646 2,418,801.40

JPY 20,642,447.72 0.052358 1,080,797.28

KRW 3,582,778.82 0.005523 19,787.69

NTD 14,341,665.33 0.227060 3,256,418.53

VDN 12,024,034,599.82 0.000295 3,547,090.21

DKK 626,701.49 0.998303 625,637.98

Current portion of non-current 34,475,504.62
liabilities

Including: USD 560,377.09 6.9646 3,902,802.28


Item Closing foreign currency Converted exchange rate Closing converted RMB

balance balance

JPY 135,528,112.75 0.052358 7,095,980.93

VDN 79,582,106,482.23 0.000295 23,476,721.41

Lease liabilities 87,442,458.88

Including: USD 583,928.07 6.9646 4,066,825.44

JPY 187,325,864.03 0.052358 9,808,007.59

VDN 249,381,782,531.75 0.000295 73,567,625.85

(2) Explanation of overseas operating entities, including, the main overseas operating places, bookkeeping
base currency and selection basis for important overseas operating entities, and the reasons for changes in
bookkeeping base currency.
 Applicable  Not applicable

Main Whether there is any

Name of the important overseas operating entity location of Accounting Accounting currency change in the accounting
business currency selection basis currency

operation

Legal currency of the

Goertek Vina Co., Ltd Vietnam VDN country where it is No

registered

Legal currency of the

Goertek Technology Vina Company Limited Vietnam VDN country where it is No

registered

Currency adopted in

Goertek (HongKong) Co.,Limited Hong Kong USD business receipts and No

payments

64. Government subsidies

(1) Basic information of government subsidies

Unit: RMB

Type Amount Reported items Amount recorded in current
profits and losses

Income-related 185,375,500.06 Other income 185,375,500.06

Income-related 102,855,000.00 Deferred income 102,855,000.00

Asset-related 55,206,363.10 Deferred income 1,975,233.51

Total 343,436,863.16 290,205,733.57

(2) Refund of government subsidies
 Applicable  Not applicable
65. Others
None

VIII. Change of combination scope

1. Business combination not under common control

None

2. Business combination under common control

None
3. Counter purchase
None
4. Disposal of subsidiaries

Whether there is a situation where a single disposal of investment in a subsidiary result in loss of control

 Yes  No

Unit: RMB

The

difference The
between amount of
the other
disposal Determina comprehe
price and tion nsive
the share Percentag Book Gains or method income
The basis of the net e of value of Fair value losses and main related to
for assets of equity equity of equity arising assumptio the

Name of Equity Equity Equity Point of determini the remainin remaining remaining from ns of the original
subsidiary disposal disposal disposal loss of ng the subsidiary g on the on the on the remeasure fair value subsidiary
price ratio method control point of at the date of date of date of ment of of the equity
loss of consolidate loss of loss of loss of remaining remaining investmen
control d financial control control control equity at equity on t

statement fair value the date of transferre
level loss of d to
correspond control investmen
ing to the t profit
disposal of and loss
the

investment

Shenzhen

Mototek 1,397,70 Equity November Transfer

Smart 0.00 100.00% transfer 7, 2022 of control 243,183.53

Technology
Co., Ltd.
Qingdao
Resonance

Venture 2,295,00 51.00% Equity December Transfer -

Capital 0.00 transfer 27, 2022 of control 466,685.97

Managemen
t Co., Ltd.

Whether there is any step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control in the

current period
 Yes  No

5. Change of combination scope for other reasons

Explain the changes in the combination scope caused by other reasons (such as newly established subsidiaries, liquidation

subsidiaries, etc.) and relevant information:

During the current period, the Company acquired 8 subsidiaries through establishment. They are respectively Goertek Optical
Technology (Qingdao) Co., Ltd, Goertek Optical Technology (Shanghai) Co., Ltd, Qingdao Resonance Venture Capital Management
Co., Ltd., Qingdao Resonance Phase I Venture Capital Fund Partnership (Limited Partnership), Weifang Goertek Electronics Co., Ltd.,
Qingdao Goertek Horizons Technology Co., Ltd, Weifang High-tech Zone Goertek Education Center and GOERTEK
MICROELECTRONICS VIETNAM COMPANY LIMITED.
6. Others
None
IX. Interests in other entities
1. Interests in subsidiaries
(1) Composition of the Group

Name of Main location of Registration Percentage Acquisition
subsidiary business place Business nature method

operation Direct Indirect

Business

Weifang Goertek combination

Electronics Co., Weifang Weifang Production 100.00% involving

Ltd. enterprises under
common control

Goertek R&D, production

Microelectronics Qingdao Qingdao & sales 85.90% Establishment

Inc.
Qingdao Goertek

Microelectronics R&D, production

Research Qingdao Qingdao & sales 85.90% Establishment

Institute Co.,
Ltd.

Qingdao Goertek R&D, production

Intelligent Qingdao Qingdao & sales 85.90% Establishment

Sensor Co., Ltd.

Business

Weifang Goertek R&D, production combination not
Microelectronics Weifang Weifang & sales 85.90% involving

Co., Ltd. enterprises under
common control

Rongcheng

Goertek Rongcheng Rongcheng R&D, production 85.90% Establishment

Microelectronics & sales

Co., Ltd.
Beijing Goertek

Microelectronics Beijing Beijing Sales 85.90% Establishment

Co., Ltd.
Shenzhen

Goertek Shenzhen Shenzhen R&D and sales 85.90% Establishment

Microelectronics
Co., Ltd.

Wuxi Goertek

Microelectronics Wuxi Wuxi R&D 85.90% Establishment

Co., Ltd.
Shanghai

Goertek Shanghai Shanghai R&D 85.90% Establishment

Microelectronics
Co., Ltd.
Goertek

Microelectronics Hong Kong Hong Kong Investment 85.90% Establishment

Holdings Co.,
Ltd.
Goertek

Microelectronics Hong Kong Hong Kong Trade 85.90% Establishment

(Hong Kong)
Co., Ltd.
GOERTEK

MICROELECT USA USA R&D and sales 85.90% Establishment

RONICS
CORPORATION
Goertek

Microelectronics Korea Korea R&D and sales 85.90% Establishment

Korea Co., Ltd.
Goertek

Microelectronics Production &

Vietnam Vietnam Vietnam sales 85.90% Establishment

Company
Limited

Weifang Goertek Weifang Weifang Import and 100.00% Establishment

Trading Co., Ltd. export trade

Yishui Goertek Production &

Electronics Co., Yishui Yishui sales 100.00% Establishment

Ltd.

Yili Precision Production &

Manufacturing Weifang Weifang sales 100.00% Establishment

Co., Ltd.

Weifang Goertek Business

Communication Production & combination not
Technology Co., Weifang Weifang sales 100.00% involving

Ltd. enterprises under
common control

Business

Goertek Optical Production & combination not
Technology Co., Weifang Weifang sales 65.10% involving

Ltd enterprises under
common control

Goertek

Technology Co., Qingdao Qingdao R&D 100.00% Establishment

Ltd.

Beijing Goertek Business

Technology Co., Beijing Beijing R&D 100.00% combination

Ltd. involving


enterprises under
common control

Qingdao Goertek

Acoustics Qingdao Qingdao R&D and trading 100.00% Establishment

Technology Co.,
Ltd.

Shenzhen Business

Goertek combination

Technology Co., Shenzhen Shenzhen R&D and design 100.00% involving

Ltd. enterprises under
common control

Shanghai

Goertek Shanghai Shanghai R&D 100.00% Establishment

Technology Co.,
Ltd.
Nanjing Goertek

Technology Co., Nanjing Nanjing R&D 100.00% Establishment

Ltd.

Weifang Lokomo Business

Precision Production & combination

Industry Co., Weifang Weifang sales 100.00% involving

Ltd. enterprises under
common control

Goertek

Investment Co., Shanghai Shanghai Investment 100.00% Establishment

Ltd.
Beijing Goertek

Investment Beijing Beijing Investment asset 100.00% Establishment

Management management

Co., Ltd.
Olive Smart

Hardware Qingdao Qingdao Equity 100.00% Establishment

Investment investment

Center LP
Dongguan

JoyForce R&D, production

Precision Dongguan Dongguan & sales 100.00% Establishment

Manufacturing
Co., Ltd.
Goertek

Intelligence Dongguan Dongguan R&D, production 100.00% Establishment

Technology Co., & sales

Ltd.
Rongcheng

Goertek Rongcheng Rongcheng R&D, production 100.00% Establishment

Technology Co., & sales

Ltd.
Qingdao Goertek

Commercial Qingdao Qingdao Commercial 100.00% Establishment

Factoring Co., factoring

Ltd.

Kunshan

Goertek Kunshan Kunshan R&D 100.00% Establishment

Electronics Co.,
Ltd

Nanning Goertek R&D, production

Electronics Co., Nanning Nanning & sales 100.00% Establishment

Ltd

Nanning Goertek Nanning Nanning Trade 100.00% Establishment

Trading Co., Ltd.
Xi’an Goertek

Electronic Xi'an Xi'an R&D 100.00% Establishment

Technology Co.,
Ltd.
Yishui TECO

Electronic Yishui Yishui R&D, production 100.00% Establishment

Technology Co., & sales

Ltd.
Goertek Optical

Technology Qingdao Qingdao R&D, production 65.10% Establishment

(Qingdao) Co., & sales

Ltd
Goertek Optical

Technology Shanghai Shanghai R&D, production 65.10% Establishment

(Shanghai) Co., & sales

Ltd
Qingdao
Resonance Phase

I Venture Capital Qingdao Qingdao Investment 72.00% Establishment

Fund Partnership
(Limited
Partnership)

Weifang Goertek Production &

Electronics Co., Weifang Weifang sales 100.00% Establishment

Ltd.
Qingdao Goertek

Horizons Qingdao Qingdao Production & 100.00% Establishment

Technology Co., sales

Ltd
Weifang High-

tech Zone Weifang Weifang Education and 100.00% Establishment

Goertek training

Education Center

Goertek Vina Vietnam Vietnam Production & 98.00% 2.00% Establishment

Co., Ltd sales

Goertek

Technology Korea Korea R&D and trading 100.00% Establishment

Korea Co., Ltd.
Goertek

(HongKong) Hong Kong Hong Kong Trade investment 100.00% Establishment

Co.,Limited

Goertek

Technology Vina Vietnam Vietnam Production & 100.00% Establishment

Company sales

Limited
Goertek

Precision Production &

Industry Vietnam Vietnam Vietnam sales 100.00% Establishment

Company
Limited
GoerTek Audio

Technologies Denmark Denmark Sales services 100.00% Establishment

Aps

Goertek Seiki R&D, production

Technology Co., Japan Japan & sales 100.00% Establishment

Ltd.
OPTIMAS

CAPITAL Hong Kong Hong Kong Investment 76.92% Establishment

PARTNERS
FUND LP

Business

Goertek Electron combination not
ics, Inc. USA USA R&D and trading 100.00% involving

enterprises under
common control

Goertek

Technology Taiwan Taiwan Trade 100.00% Establishment

Taiwan Co., Ltd.
Goertek

Technology Japan Japan R&D and trading 100.00% Establishment

Japan Co., Ltd.
Goertek

Technology Hong Kong Hong Kong Trade investment 100.00% Establishment

(Hong Kong)
Co.,Limited

Explanation of the shareholding ratio in subsidiaries different from the voting ratio:

The percentages of indirect shareholdings are equal to the sum of all the share proportions of entities within the Group which hold the
equity of the subsidiary.

Basis for holding half or less of the voting power but still controlling the investee, and holding more than half of the voting rights but
not controlling the investee:
None

Basis for controlling important structured entities included in the combination scope:

None

Basis for determining whether a company is an agent or a principal:

None
(2) Important non-wholly-owned subsidiary

Unit: RMB

Shareholding ratio of Gain or loss which Dividends declared and Balance of minority
Name of subsidiary minority shareholders belongs to minority distributed to minority interest at the end of the
shareholders in the shareholders in the period


current period current period

Goertek 14.10% 45,892,240.23 588,098,360.72
Microelectronics Inc.

Explanation of the shareholding ratio of minority shareholders in subsidiaries different from the voting ratio:

None

(3) Main financial information of major non-wholly-owned subsidiaries

Unit: RMB

Closing balance Opening balance

Name of Non- Non- Non- Non-

subsidiary Current current Total Current current Total Current current Total Current current Total
assets assets assets liabilities liabilities liabilities assets assets assets liabilities liabilities liabilities

Goertek 3,280,736 1,912,061 5,192,798, 719,627, 302,828, 1,022,456, 3,719,286, 1,449,333, 5,168,619, 1,116,518, 278,293, 1,394,811,
Microelectr ,543.83 ,705.04 248.87 589.92 445.93 035.85 194.06 493.18 687.24 234.62 567.19 801.81
onics Inc.

Unit: RMB

2022 2021

Name of Total Cash flows Total Cash flows
subsidiary Operating Net profit comprehensive generated from Operating Net profit comprehensive generated from
revenue income operating revenue income operating
activities activities

Goertek 3,125,294,5 3,345,124,962. -
Microelectronics 45.15 325,529,492.08 343,719,098.17 694,417,027.98 51 329,435,281.13 326,211,317.42 174,770,880.10
Inc.

(4) Major restrictions on using the Group's assets and paying off the Group's debts

None

(5) Financial support or other support provided to structured entities included in consolidated financial statements

None

2. The share of owner's equity in the subsidiary has changed and still controls the transactions of the
subsidiary

(1) Explanation of changes in the share of shareholders’equity in subsidiaries

In June 2022, Goertek Group Co., Ltd., Zhuoguang Tonghe Technology (Tianjin) Partnership (Limited Partnership), Zhuoguang
Hongda Technology (Tianjin) Partnership (Limited Partnership), Zhuoguang Jiacheng Technology (Tianjin) Partnership (Limited
Partnership), Zhuoguang Xiangrong Technology (Tianjin) Partnership (Limited Partnership), Jiang Bin, and Jiang Long increased the
capital of the subsidiary, Goertek Optical Technology Co., Ltd, by RMB 513.74 million. Of which, RMB 321.68 million was included
in the newly added registered capital, and the rest was included in the capital surplus. After the capital increase, the Company's
shareholding in Goertek Optical Technology Co., Ltd changed from 100.00% to 65.10%. As of the end of the period, Goertek Optical
Technology Co., Ltd had received a capital increase of RMB 274,153,071.55 from minority shareholders. The premium contribution
of minority shareholders increased the capital surplus by RMB 94,888,612.81.

(2) The impact of transactions on minority’equity and the equity attributable to the parent company

Unit: RMB

Goertek Optical Technology Co., Ltd

Purchase cost/disposal consideration 274,153,071.55

—Cash 274,153,071.55

—Fair value of non-cash assets


Total purchase cost/disposal consideration 274,153,071.55

Less: The net asset share of a subsidiary calculated according to 179,264,458.74
the proportion of the equity acquired/disposed

Difference 94,888,612.81

Including: Adjustment of capital surplus 94,888,612.81

Adjusted surplus reserve

Undistributed profits after adjustment

3. Rights and interests in joint venture arrangements and associated enterprises

(1) Important joint ventures and associated enterprises

None

(2) Main financial information of important joint ventures

None

(3) Main financial information of important associated enterprises

None

(4) Summary of financial information of unimportant joint ventures and associates

Unit: RMB

Closing balance/amount incurred in Opening balance/amount incurred in

current period previous period

Joint ventures:

The total of the following items calculated

according to the shareholding ratio

Associated enterprises:

Total book value of investment 361,008,671.83 437,402,203.91

The total of the following items calculated

according to the shareholding ratio

—Net profit 2,298,237.32 23,111,753.41

—Other comprehensive income -15,493,341.86 1,189,723.34

—Total comprehensive income -13,195,104.54 24,301,476.75

(5) Statement of important restrictions on the ability of joint ventures or associates to transfer capital to the
Company
None

(6) Excess losses incurred by joint ventures or associated enterprises

None

(7) Unrecognized commitments related to the investment in joint ventures

None

(8) Contingent liabilities related to the investment in joint ventures or associates

None

4. Important joint operation
None

5. Rights and interests in structured entities not included in consolidated financial statements

Explanation of structured entities not recorded in the consolidated financial statements:

None
6. Others
None

X. Risks related to financial instruments

The major financial instruments of the Group include equity investments, accounts receivable, borrowings and accounts payable, etc.
For details on the financial instruments, please see this Note VII. Relevant Items. Risks related to the financial instruments and the
Group’s risk management policy used for reducing these risks is stated as follows. The Group’s management manages and monitors
these exposures to ensure that these risks are controlled within a limited scope.

The Group analyzes the reasonableness of risk variables and the impact of potential changes on current loss or profit or shareholder’s
equity using sensitivity analysis techniques. As risk variables rarely change in isolation, and the correlation between any two of the
risk variables will have a great effect on the final impact amount of a certain risk variable, the following disclosures are made assuming
that each variable changes in isolation.

(I) Risk management goals and policies

The Group’s risk management aims to reach appropriate balancing between risks and benefits, to minimize the negative impact of risks
on the Group's operating results, and to maximize the interests of shareholders and other equity investors. Based on these risk
management goals, the Group’s basic strategy for risk management is to determine and analyze various risks faced by the Group,
establish an appropriate risk tolerance bottom line and conduct risk management, and supervise various risks in a timely and reliable
manner to control the risks within a limited scope.

1. Market risk
(1) Foreign exchange risk

Foreign exchange risk refers to the risk of loss due to exchange rate change. The Group’s exposureto foreign exchange mainly involves
US dollars. Except that the Company and its subsidiaries purchase and sell in USD, EUR, JPY, VND, DKK, HKD, NTD and KRW,
other main business of the Group is measured and settled in RMB. As of December 31, 2022, the foreign currency monetary items of
the Company are detailed in Note VII. 63. Except that the assets or liabilities, financial assets held for trading, financial liabilities held
for trading, some investments in other equity instruments, some other non-current financial assets, and some other non-current assets
mentioned in the table are foreign currency balances, the Group's assets and liabilities are mainly recorded in RMB. The foreign
exchange risks arising from the assets and liabilities denominated in foreign currencies may have an impact on the operating results of
the Group.

The Group closely monitors the impact of exchange rate changes on the Group's foreign exchange risks. The Company has large
volume of export sales, and needs to import some raw materials. Some equipment for research, development, production and testing
of the Company also needs to be purchased from abroad. The Company's export sales and imported raw materials are mainly settled in
USD. The depreciation of USD and the appreciation of RMB will reduce theprocurement cost ofimported raw materials, but adversely
affect the competitiveness of the Company's products in overseas markets. Considering the import of raw materials and export of
products, the appreciation of RMB against USD will affect the Company's profitability to some extent.

Sensitivity analysis over foreign exchange risks:

When other variables remain unchanged, the possible reasonable changes in USD currency rate may have the following effects on
current profits and losses, as well as shareholders' equity:

Unit: RMB

2022 2021

Item Change in exchange

rate Impact on net profit Impact on Impact on net profit Impact on

shareholders' equity shareholders' equity

USD 3% appreciation -17,700,129.48 -20,864,011.13 74,152,124.92 71,951,894.19
against RMB

USD 3% depreciation 17,700,129.48 20,864,011.13 -74,152,124.92 -71,951,894.19
against RMB

(2) Interest rate risk - cash flow change risk

The Group's risk of cash flow changes of financial instruments arising from interest rate changes mainly involves floating rate bank
borrowings. At present, the interest rate of the Group's bank borrowings is mainly floating rate.

Interest rate risk sensitivity analysis:

The sensitivity analysis over interest rate risks is conducted based on the following assumptions:

Changes in market interest rates affect the interest income or expense of financial instruments with variable interest rates;

For fixed-rate financial instruments measured at fair value, changes in market interest rates onlyaffect their interest income or expense;
For derivative financial instruments designated as hedge instruments, changes in market interest rates affect their fair value, and all
interest rate hedging is expected to be highly effective;

Changes in fair values of derivative financial instruments and other financial assets and liabilities are calculated using the discounted
cash flow method at the market interest rate on the balance sheet date.

On the basis of the above assumptions, when other variables remain unchanged, the possible reasonable changes in interest rates may
have the following effects on current profits and losses, as well as shareholders' equity:

Unit: RMB

Interest rate 2022 2021

Item change Impact on Impact on

Impact on net profit shareholders' equity Impact on net profit shareholders' equity

Bank Float up by -24,185,541.46 -24,185,541.46 -16,563,847.02 -16,563,847.02
borrowings 10%

Bank Float down by 24,185,541.46 24,185,541.46 16,563,847.02 16,563,847.02
borrowings 10%

(3) Other price risks
None
2. Credit risk

As of December 31, 2022, the maximum credit risk exposure that may cause the Group's financial loss resulted from the loss in the
Group's financial assets caused by the counterparty's failure to perform its contractual obligations.

In order to reduce credit risk, the Group sets up a team to determine the credit limit, conduct credit approval, and implement other
monitoring procedures to ensure that necessary measures are taken to recover overdue claims. Additionally, the Company cooperates
with commercial insurance institutions to insure for high-risk customers, so as to reduce the risk of bad debts from credit sale. In
addition, the Group reviews the recovery of each individual receivable on each balance sheet date to ensure that adequate bad debt
provision is made for unrecoverable amounts. Therefore, theGroup’s management believes that the credit riskundertaken bytheGroup
has been greatly reduced.

The Group has put in place necessary policies to ensure that all its customers have good credit records.

The Group's non-cash cash at bank and on hand are mainly deposited with financial institutions with good credit. The management
believes that there is no significant credit risk, and it is expected that the default of counterparty will not cause significant losses to the
Group.

(1) There is no overdue and undepreciated amount in the Group's receivables;

(2) The analysis of financial assets with individual impairment involves the judgment on the factors to be considered in the impairment
of the financial assets
None

3. Liquidity risk

When managing liquidity risk, the Group maintains and monitors cash and cash equivalents the management deems sufficient to meet
the Group's business needs and reduce the impact of cash flow fluctuations. The management of the Group monitors the use of b ank
borrowings and ensure the compliance with borrowing agreements.

The Group uses bank borrowings and equityinstruments as its main sources offunds. As ofDecember 31, 2022, the unused bank credit
line of the Group was RMB 31.583 billion (December 31, 2021: RMB 27.495 billion).

(II) Transfer of financial assets

1. The financial assets transferred but not derecognized

None

2. The financial assets transferred and derecognized

Items Amount recognized at the end of the period (RMB)

Notes receivable 2,371,001.15

(III) Offset of financial assets and financial liabilities

None
XI. Disclosure of fair value

1. The ending fair value of assets and liabilities measured at fair value

Unit: RMB

Fair value of closing

Item The first level of fair The second level of fair The third level of fair Total

value measurement value measurement value measurement

I. Continuous fair value -- -- -- --

measurement

(I) Financial assets held for 32,722,198.06 185,939,899.60 120,000,000.00 338,662,097.66
trading

1. Financial assets measured at

fair value through profit and 32,722,198.06 185,939,899.60 120,000,000.00 338,662,097.66
loss

(2) Equity instrument 32,722,198.06 120,000,000.00 152,722,198.06
investment

(3) Derivative financial assets 185,939,899.60 185,939,899.60

(II) Other debt investments 22,375,874.12 22,375,874.12

(III) Investments in other 699,249,262.24 699,249,262.24
equity instruments
(IV) Investment properties
(V) Biological assets

(VI) Other non-current 318,661,575.31 318,661,575.31
financial assets

Total assets consistently 32,722,198.06 185,939,899.60 1,160,286,711.67 1,378,948,809.33
measured at fair value

(VII) Financial liabilities held 202,293,742.46 202,293,742.46
for trading

Derivative financial 202,293,742.46 202,293,742.46
liabilities
(VIII) Financial liabilities

designated to be measured at


fair value through profit and

loss

Total liabilities continuously 202,293,742.46 202,293,742.46
measured at fair value

II. Non-continuous fair value -- -- -- --

measurement

2. Determination basis for the market price of continuous and non-continuous first-level fair value
measurement items

The closing price at the end of the year is used as the basis for determining the market price of the shares of foreign listed companies
held by the Company.

3. Qualitative and quantitative information on the valuation techniques and important parameters used in
continuous and non-continuous second-level fair value measurement items

Directly or indirectly observable input values of related assets or liabilities except first-level inputs.

4. Qualitative and quantitative information on the valuation techniques and important parameters used in
continuous and non-continuous third-level fair value measurement items

Basis for determining fair value according to the value assessed under the income method and the asset-based method and the net book
asset.

5. Adjustment information and sensitivity analysis of non-observable parameters between beginning and
closing book value for continuous third-level fair value measurement items

None

6. Conversion among different levels in the current period, reasons for conversion and the policy for
determining conversion time points in continuous fair value measurement items,

None

7. Changes in valuation techniques during the current period and reasons for changes

None

8. Fair value of financial assets and financial liabilities not measured at fair value

None
9. Others
None

XII. Related parties and related transactions

1. Information about the parent company of the Company

Shareholding ratio Proportion of voting
Parent company Registration place Business nature Registered capital of the Company to rights of the

name the Company Company in the
Company

Goertek Group Co., Weifang Equity investment RMB 100 million 14.84% 14.84%
Ltd. management, etc.


Explanation of the parent company of the Company

The Company’s parent company and final parent company is Goertek Group Co., Ltd.

The final controller of the Company is Goertek Group Co., Ltd.

2. Information on subsidiaries of the Company

See Note IX. 1. Interests in subsidiaries for details of the subsidiaries of the Company

3. Information on joint ventures and associated enterprises of the Company

See Note IX. 3. Rights and interests in joint venture arrangements and associated enterprises for details of the important joint

ventures or associated enterprises of the Company

4. Information on other related parties

Name of other related parties Relationship between other related parties and the Company

Jiang Bin Actual controller and board chairman of the Company

Hu Shuangmei Person acting in concert with the actual controller

Shanghai Goertek Robot Co., Ltd. Associate of the parent company

Weifang ShiXiang Real Estate Co., Ltd. Associate of the parent company

Weifang Goer Farm Co., Ltd. Business of the same actual controller

Weifang Goer Manor Trading Co., Ltd. Business of the same actual controller

Weifang Goer Manor food & Beverage Co., Ltd. Business of the same actual controller

Weifang Goer Property Service Co., Ltd. Business of the same actual controller

Weifang Point Hotel Management Co., Ltd. Business of the same actual controller

Weihai Goer Ecological Agriculture Co., Ltd. Business of the same actual controller

Dotcom Investment Co., Ltd. Enterprise controlled by an affiliated natural person

Beijing Bubble Lab Co., Ltd. Enterprise controlled by an affiliated natural person

Weifang Daozao Catering Company Co., Ltd. Business of the same actual controller

Weifang Goer Real Estate Co., Ltd. Business of the same actual controller

Weifang Dotcom Catering Management Co., Ltd. Enterprise controlled by an affiliated natural person

Qingdao Dotcom Catering Management Co., Ltd. Enterprise controlled by an affiliated natural person

BUAAGoertek (Weifang) Intelligent Robot Co., Ltd. Business of the same actual controller

Weifang Goer School Business of the same actual controller

Weifang High-Tech Zone Yasong Linju Kindergarten Business of the same actual controller

Weifang High-Tech Zone Goer Kindergarten Business of the same actual controller

Dynaudio (Shanghai) Co,.Ltd Enterprise controlled by an affiliated natural person

Dynaudio HoldingA/S Enterprise controlled by an affiliated natural person

Beijing Xiaoniao Tingting Technology Co., Ltd Parent company's associate, de-registered on December 8, 2022

Qingdao Point Hotel Management Co., Ltd. Business of the same actual controller

Wemake (Weihai) Digital Creative Technology Co., Ltd. Business of the same actual controller

Wemake (Qingdao) Digital Creative Technology Co., Ltd. Business of the same actual controller

Weifang Hanzhi Enterprise Management Co., Ltd. Business of the same actual controller

Weihai Point Hotel Management Co., Ltd. Business of the same actual controller

Weifang Goerdyna Technology Co., Ltd. Enterprise controlled by an affiliated natural person

Shandong Goer Education Group Co., Ltd. Business of the same actual controller

Weifang Hanhui Enterprise Management Co., Ltd. Business of the same actual controller

Wemake (Beijing) Digital Creative Technology Co., Ltd. Business of the same actual controller


Weifang Gudian Garden Floriculture Co., Ltd. Enterprise controlled by an affiliated natural person

Little Bird Co., Ltd Enterprise controlled by an affiliated natural person

Jiaxing Yuguang Opto-electronic Technology Co, Ltd. The subsidiary of a joint venture

Anqiu Wenge Vocational Training School Co., Ltd. Business of the same actual controller

Gongqingcheng Zhuiyuan Phase II Venture Capital Partnership An enterprise actually controlled by Mr. Liu Chengmin, the

(Limited Partnership) former director of the Company and a joint investor of

GravityXR Electronics and Technology Co., Ltd.

Shenzhen Zhuiyuan Fortune Investment Partnership (Limited An enterprise actually controlled by Mr. Liu Chengmin, the

Partnership) former director of the Company and a joint investor of Beijing
Uphoton Technology Co., Ltd

GoerDyna Technology Co., Ltd. Enterprise controlled by an affiliated natural person

Jiang Long Affiliated natural person

Zhuoguang Xiangrong Technology (Tianjin) Partnership An entity controlled by affiliated natural persons as managing

(Limited Partnership) partners

5. Related party transactions

(1) Related transactions involving commodity purchase, and rendering and receipt of services

Statement of purchasing goods/accepting labor services

Unit: RMB

Related parties Related transactions 2022 Approved trading Exceed the trading 2021

limit limit or not

AKM Industrial Purchasing raw 203,633,398.93 300,000,000.00 No 108,622,154.32
Company Limited materials

Weifang Goer Farm Purchasing goods and 49,549,859.14 No 11,559,035.68
Co., Ltd. services

Weifang Point Hotel Purchasing goods and 16,117,887.30 No 14,774,953.49
Management Co., Ltd. services

Qingdao Virtual Reality Purchasing goods and 11,968,898.11 13,674,912.95
Institute Co., Ltd. services

Weifang Goer Property Purchasing goods and 8,688,125.52 No 6,399,062.47
Service Co., Ltd. services

Weifang Goer Manor Purchasing goods 8,499,702.97 No 2,279,607.11
Trading Co., Ltd.

Weifang Goerdyna Purchasing goods 7,057,138.25 No 12,059,629.96
Technology Co., Ltd.

Goertek Group Co., Purchasing goods and 7,040,506.52 No

Ltd. services

Qingdao Point Hotel Receiving labor 4,594,268.33 No 1,973,014.81
Management Co., Ltd. service

BUAAGoertek Purchasing goods and

(Weifang) Intelligent services 3,960,783.47 No 2,016,497.00
Robot Co., Ltd.

Shanghai Goertek Purchasing goods and 3,722,511.29 7,345,708.62
Robot Co., Ltd. services

Weifang Dotcom Purchasing goods and

Catering Management services 2,752,240.44 No 30,550,429.90
Co., Ltd.

Weifang Goer Manor

food & Beverage Co., Purchasing goods 2,643,410.57 No 2,125,413.79
Ltd.

Beijing Bubble Lab Purchasing goods and 2,312,197.60 No 2,068,337.18
Co., Ltd. services

Weihai Goer Ecological Purchasing goods 1,778,882.75 No 632,726.75
Agriculture Co., Ltd.
Beijing Xiaoniao

Tingting Technology Purchasing goods 1,768,403.43 9,895,201.01
Co., Ltd

Little Bird Co., Ltd Purchasing goods 1,023,036.15

Dotcom Investment Purchasing goods and 1,015,175.98 No 1,397,275.64
Co., Ltd. services

Weifang Daozao Purchasing goods and

Catering Company Co., services 303,917.60 No 485,022.00
Ltd.

Wemake (Weihai) Purchasing goods and

Digital Creative services 256,136.46 No 261,489.60
Technology Co., Ltd.

Wemake (Qingdao) Purchasing goods and

Digital Creative services 74,709.16 No

Technology Co., Ltd.

Weifang Goer School Receiving labor 65,140.00 No

service

Wemake (Beijing) Receiving labor

Digital Creative service 61,072.39 No

Technology Co., Ltd.
Qingdao Dotcom

Catering Management Purchasing goods 21,818.80 No

Co., Ltd.
Weifang Gudian

Garden Floriculture Purchasing goods 17,463.00 No

Co., Ltd.

Dynaudio HoldingA/S Purchasing goods and 13,356.22 No 10,088,269.89
services

Weifang Goer Real Receiving labor 3,600.00 No

Estate Co., Ltd. service

Weifang ShiXiang Real Purchasing goods and 800.00
Estate Co., Ltd. services

Dynaudio (Shanghai) Purchasing goods No 454,032.00
Co,.Ltd

Qingdao Pico Purchasing goods 8,172,060.06
Technology Co., Ltd.

Weihai Point Hotel Receiving labor 14,876.00 No 38,750.94
Management Co., Ltd. service

Statement of sales of goods/rendering of services

Unit: RMB

Related parties Related transactions 2022 2021

Weifang Goerdyna Technology Sales of goods and services 29,201,690.39 18,684,849.56

Co., Ltd.

Little Bird Co., Ltd Sales of goods 11,728,490.03

Beijing Xiaoniao Tingting Sales of goods 8,203,382.90 43,567,472.65
Technology Co., Ltd

AKM Industrial Company Sales of goods 7,937,930.55 1,134,756.63
Limited

Goertek Group Co., Ltd. Sales of goods and services 3,136,184.07 1,790,210.80

Qingdao Virtual Reality Sales of goods and services 2,011,217.85 1,405,755.94
Institute Co., Ltd.

Shanghai Goertek Robot Co., Sales of goods and services 1,535,597.08 114,747.48
Ltd.

Weifang Goer Farm Co., Ltd. Sales of goods 1,121,814.20

Weifang Dotcom Catering Sales of goods and services 719,821.85 1,477,900.21
Management Co., Ltd.

BUAAGoertek (Weifang) Sales of goods 677,865.74 12,156.24
Intelligent Robot Co., Ltd.

GravityXR Electronics and Sales of goods 578,775.60

Technology Co., Ltd.

Jiaxing Yuguang Opto- Sales of goods 424,929.60

electronic Technology Co, Ltd.

Dynaudio (Shanghai) Co,.Ltd Sales of goods and services 132,629.36 7,809,105.05

Weifang Goer Manor Trading Sales of goods 128,364.96 154,535.59
Co., Ltd.

Anqiu Wenge Vocational Sales of goods 22,641.51

Training School Co., Ltd.

Dynaudio HoldingA/S Sales of goods 22,683.88 835,047.55

Weifang Goertek Home

Decoration Engineering Co., Rendering of service 1,691,619.08
Ltd.

Wemake (Beijing) Digital Rendering of service 42,000.00
Creative Technology Co., Ltd.

Qingdao Point Hotel Rendering of service 238,490.57
Management Co., Ltd.

Qingdao Pico Technology Co., Sales of goods 164,082,292.53
Ltd.

Weifang Goer School Sales of goods 29,339.62

Weifang Point Hotel Sales of goods 1,460.18
Management Co., Ltd.

Explanation of related party transactions in purchasing and selling goods, rendering and receiving labor services

For details about the Company's and its subsidiaries' estimated trading limit of daily transactions with Goertek Group and its
subsidiaries, please see the Announcement of Goertek Inc. on Estimated Daily Related Transactions in 2022, issued through
information disclosure media on March 30, 2022.

(2) Related entrusted management/contracting and entrusted management/outsourcing

None
(3) Information of related lease

The Company acts as the lessor:


Unit: RMB

Name of lessee Type of leased Lease income recognized Lease income recognized in
assets in current period last period

Weifang Goerdyna Technology Co., Ltd. Building 5,489,586.84 2,407,111.58

Weifang Point Hotel Management Co., Ltd. Building 317,976.42 248,794.77

BUAAGoertek (Weifang) Intelligent Robot Co., Building 175,318.29 186,382.10
Ltd.

Weifang High-Tech Zone Yasong Linju Building 152,190.47 43,885.72
Kindergarten

Anqiu Wenge Vocational Training School Co., Building 114,285.71

Ltd.

Dotcom Investment Co., Ltd. Building 39,633.03

Weifang Dotcom Catering Management Co., Ltd. Building 39,633.03

Wemake (Weihai) Digital Creative Technology Building 28,899.08

Co., Ltd.

Goertek Group Co., Ltd. Building 12,735.85

Weifang Goer School Building 91,721.99

Weifang High-Tech Zone Goer Kindergarten Building 22,400.00

Weifang Hanzhi Enterprise Management Co., Building 39,633.03
Ltd.

Shandong Goer Education Group Co., Ltd. Building 7,840.44

The Company acts as the lessee:

Unit: RMB

Rental charges for Variable lease payments

simplified treatment of not included in the Interest expenses Increased right-
Type of short-term leases and low- Rent paid incurred on lease

Name of lessor leased value asset leases (if measurement of lease liabilities of-use assets
assets applicable) liabilities (if applicable)

2022 2021 2022 2021 2022 2021 2022 2021 2022 2021

Goertek Group Building 224,177.95 224,177.95 668,878.77 444,700.82 7,519.10 22,557.29 286,441.75
Co., Ltd.
Qingdao Virtual

Reality Institute Equipment 615,087.00 615,087.00 615,087.00

Co., Ltd.

Weifang Goer Building 1,449,000.00 1,449,000.00 1,449,000.00

Farm Co., Ltd.
Weifang Hanhui

Enterprise Building 20,078.80 20,078.80 20,078.80

Management Co.,
Ltd.
(4) Related guarantees

The Company acts as the guarantor

Unit: RMB

Maturity date of Whether the

Guaranteed party Guarantee amount Starting date of guarantee guarantee guarantee has been
performed fully

Goertek (HongKong) 174,115,000.00 August 20, 2021 August 20, 2022 Yes

Co.,Limited

Goertek (HongKong) 69,646,000.00 September 10, 2021 September 10, 2022 Yes

Co.,Limited

Goertek (HongKong) 69,646,000.00 October 20, 2021 October 20, 2022 Yes

Co.,Limited

Goertek (HongKong) 793,790,285.00 January 16, 2020 January 16, 2023 Yes

Co.,Limited

Goertek (HongKong) 34,997,115.00 January 17, 2020 January 16, 2023 Yes

Co.,Limited

Goertek (HongKong) 494,486,600.00 February 24, 2020 January 16, 2023 Yes

Co.,Limited

Goertek (HongKong) 69,646,000.00 September 10, 2022 February 5, 2023 No

Co.,Limited

Goertek (HongKong) 69,646,000.00 October 20, 2022 February 5, 2023 No

Co.,Limited

Goertek (HongKong) 174,115,000.00 August 20, 2022 August 9, 2023 Yes

Co.,Limited

Goertek (HongKong) 205,455,700.00 May 17, 2022 April 26, 2023 No

Co.,Limited

Goertek (HongKong) 142,774,300.00 May 24, 2022 May 4, 2023 No

Co.,Limited

Goertek Technology Vina 23,000,000.00 June 6, 2021 June 5, 2022 Yes

Company Limited

Goertek Technology Vina 4,500,000.00 June 6, 2021 June 5, 2022 Yes

Company Limited

Goertek Technology Vina 496,413,129.00 July 30, 2021 July 29, 2022 Yes

Company Limited

Goertek Technology Vina 85,036,553.00 October 18, 2021 October 17, 2022 Yes

Company Limited

Goertek Technology Vina 55,000,000.00 August 1, 2021 July 30, 2022 Yes

Company Limited

Goertek Technology Vina 139,292,000.00 June 29, 2021 June 29, 2022 Yes

Company Limited

Goertek Technology Vina 11,732,000.00 June 22, 2022 June 21, 2023 No

Company Limited

Goertek Technology Vina 1,080,000.00 June 22, 2022 June 21, 2023 No

Company Limited

Weifang Goertek 5,000,000.00 March 27, 2021 March 26, 2022 Yes

Microelectronics Co., Ltd.

Weifang Goertek 3,000,000.00 May 12, 2022 May 11, 2023 No

Microelectronics Co., Ltd.

Rongcheng Goertek 3,000,000.00 May 12, 2022 May 11, 2023 No

Microelectronics Co., Ltd.

Goertek Microelectronics Inc. 20,893,800.00 November 19, 2021 November 18, 2022 Yes

Goertek Microelectronics Inc. 20,893,800.00 November 18, 2022 November 17, 2023 No

Goertek Intelligence 4,000,000.00 June 10, 2021 June 9, 2022 Yes

Technology Co., Ltd.

The Company acts as the guaranteed party

Unit: RMB

Guarantor Guarantee amount Starting date of guarantee Maturity date of Whether the guarantee has
guarantee been performed fully

Goertek Group Co., Ltd. 400,000,000.00 September 29, 2020 September 28, 2022 Yes

Goertek Group Co., Ltd. 200,000,000.00 April 1, 2021 March 31, 2022 Yes

Goertek Group Co., Ltd. 50,000,000.00 September 8, 2021 March 7, 2022 Yes

Goertek Group Co., Ltd. 10,920,000.00 September 28, 2021 January 25, 2022 Yes

Goertek Group Co., Ltd. 6,900,000.00 September 28, 2021 March 25, 2022 Yes

Goertek Group Co., Ltd. 9,980,000.00 September 28, 2021 February 25, 2022 Yes

Goertek Group Co., Ltd. 5,676,000.00 October 25, 2021 January 25, 2022 Yes

Goertek Group Co., Ltd. 300,000,000.00 October 29, 2021 October 28, 2022 Yes

Goertek Group Co., Ltd. 4,880,000.00 November 8, 2021 April 25, 2022 Yes

Goertek Group Co., Ltd. 4,550,000.00 November 8, 2021 February 25, 2022 Yes

Goertek Group Co., Ltd. 3,870,000.00 November 8, 2021 January 25, 2022 Yes

Goertek Group Co., Ltd. 50,000,000.00 November 18, 2021 May 17, 2022 Yes

Goertek Group Co., Ltd. 2,055,000.00 November 29, 2021 March 25, 2022 Yes

Goertek Group Co., Ltd. 1,560,000.00 November 29, 2021 April 25, 2022 Yes

Goertek Group Co., Ltd. 1,710,000.00 November 29, 2021 May 25, 2022 Yes

Goertek Group Co., Ltd. 4,770,000.00 November 29, 2021 May 25, 2022 Yes

Goertek Group Co., Ltd. 1,930,000.00 November 29, 2021 May 25, 2022 Yes

Goertek Group Co., Ltd. 10,249,000.00 November 29, 2021 May 25, 2022 Yes

Goertek Group Co., Ltd. 50,000,000.00 December 17, 2021 June 16, 2022 Yes

Goertek Group Co., Ltd. 4,800,000.00 January 11, 2022 June 27, 2022 Yes

Goertek Group Co., Ltd. 4,920,000.00 January 11, 2022 March 25, 2022 Yes

Goertek Group Co., Ltd. 2,000,000.00 January 11, 2022 March 25, 2022 Yes

Goertek Group Co., Ltd. 50,000,000.00 January 19, 2022 July 19, 2022 Yes

Goertek Group Co., Ltd. 200,000,000.00 March 29, 2022 March 29, 2027 No

Goertek Group Co., Ltd. 30,000,000.00 April 21, 2022 October 20, 2022 Yes

Goertek Group Co., Ltd. 40,000,000.00 May 18, 2022 November 18, 2022 Yes

Goertek Group Co., Ltd. 40,000,000.00 June 17, 2022 December 16, 2022 Yes

Goertek Group Co., Ltd. 200,000,000.00 June 24, 2022 March 29, 2027 No

Goertek Group Co., Ltd. 20,000,000.00 July 19, 2022 January 19, 2023 No

Goertek Group Co., Ltd. 30,000,000.00 July 26, 2022 September 25, 2022 Yes

Goertek Group Co., Ltd. 200,000,000.00 July 29, 2022 July 28, 2025 No

Goertek Group Co., Ltd. 500,000,000.00 September 19, 2022 September 19, 2025 No

Goertek Group Co., Ltd. 1,448,636.80 February 2, 2021 July 20, 2021 Yes

Goertek Group Co., Ltd. 15,000,000.00 March 23, 2022 May 31, 2023 Yes

Goertek Group Co., Ltd. 35,000,000.00 September 2, 2022 May 31, 2023 No

Goertek Group Co., Ltd. 9,000,000.00 March 23, 2022 May 31, 2023 No

Goertek Group Co., Ltd. 2,500,000.00 March 23, 2022 May 31, 2023 No

Goertek Group Co., Ltd. 146,256,600.00 April 11, 2022 July 31, 2023 Yes

Goertek Group Co., Ltd. 274,405,240.00 September 2, 2022 July 31, 2023 No

Goertek Group Co., Ltd. 130,000,000.00 September 2, 2022 May 31, 2023 No

Goertek Group Co., Ltd. 50,000,000.00 September 2, 2022 May 31, 2023 No

Goertek Group Co., Ltd. 26,000,000.00 September 2, 2022 May 31, 2023 No

Explanation of related guarantee


The borrowings of USD 113,975,000.00, USD 5,025,000.00, and USD 71,000,000.00 by a subsidiary, Goertek (HongKong)
Co.,Limited, were repaid in January and March 2022.

The borrowing of USD 25,000,000.00 by Goertek (HongKong) Co.,Limited, was repaid on December 23, 2022.

(5) Funds borrowed from related parties

None

(6) Transfer of assets and debt restructuring of related parties

Unit: RMB

Related parties Related transactions 2022 2021

Weifang Goer Real Estate Co., Ltd. Purchasing fixed 27,820,895.00

assets, etc.

Wemake (Weihai) Digital Creative Technology Purchasing fixed 9,513,110.31 56,603.77
Co., Ltd. assets, etc.

Weifang Goer Farm Co., Ltd. Purchasing fixed 3,453,438.60

assets, etc.

Qingdao Virtual Reality Institute Co., Ltd. Purchasing fixed 1,314,599.09 2,606,781.00
assets, etc.

Goertek Group Co., Ltd. Purchasing fixed 1,175,396.00 6,700,007.82
assets, etc.

Beijing Bubble Lab Co., Ltd. Purchasing fixed 592,444.40 1,845,155.05
assets, etc.

Dynaudio (Shanghai) Co,.Ltd Purchasing fixed 492,566.37

assets, etc.

Shanghai Goertek Robot Co., Ltd. Purchasing fixed 943,396.20
assets, etc.

Weifang ShiXiang Real Estate Co., Ltd. Purchasing fixed 387,250.60
assets, etc.

Wemake (Beijing) Digital Creative Technology Purchasing fixed 2,237,536.87
Co., Ltd. assets, etc.

Weifang Goertek Home Decoration Purchasing fixed 6,171,794.28
Engineering Co., Ltd. assets, etc.

Wemake (Qingdao) Digital Creative Purchasing fixed 215,405.66
Technology Co., Ltd. assets, etc.

Weifang Goerdyna Technology Co., Ltd. Disposal of fixed 6,676,812.63 9,295,634.00
assets

Goertek Group Co., Ltd. Disposal of fixed 249,760.94

assets

Qingdao Virtual Reality Institute Co., Ltd. Disposal of fixed 2,646.30 6,485,086.09
assets

Wemake (Weihai) Digital Creative Technology Disposal of fixed 478.33

Co., Ltd. assets

Weifang Point Hotel Management Co., Ltd. Disposal of fixed 4,760.77
assets

(7) Remuneration of key managers

Unit: RMB

Item 2022 2021

Remuneration of key managers 16,911,750.00 16,950,000.00

(8) Other related transactions

Unit: RMB

Item Related transactions Amount of current period Amount in previous
period

Beijing Uphoton Technology Co., Ltd. Equity investment 200,000,000.00

GravityXR Electronics and Technology Co., Ltd. Equity investment 90,000,000.00

Goerdyna Technology Co., Ltd. Equity transfer 1,397,700.00

Jiang Bin Capital increase to 64,290,000.00

subsidiaries

Jiang Long Capital increase to 64,290,000.00

subsidiaries

Goertek Group Co., Ltd. Capital increase to 64,000,000.00

subsidiaries

Zhuoguang Xiangrong Technology (Tianjin) Capital increase to 60,200,000.00

Partnership (Limited Partnership) subsidiaries

6. Receivables and payables of related parties

(1) Items with accounts receivable

Unit: RMB

Closing balance Opening balance

Name of Related parties Bad-debt

project Book balance provision Book balance Bad-debt provision

Accounts Weifang Goerdyna Technology Co., 10,399,970.66 103,999.71 10,925,126.65 109,251.27
receivable Ltd.

Accounts Little Bird Co., Ltd 2,181,873.05 21,818.73

receivable

Accounts AKM Industrial Company Limited 466,054.46 4,660.54 516,600.00 5,166.00
receivable

Accounts Shanghai Goertek Robot Co., Ltd. 186,792.73 1,867.93 78,523.44 785.23
receivable

Accounts Goertek Group Co., Ltd. 104,206.00 1,042.06

receivable

Accounts Weifang Dotcom Catering 81,198.36 811.98

receivable Management Co., Ltd.

Accounts Jiaxing Yuguang Opto-electronic 30,460.37 304.60

receivable Technology Co, Ltd.

Accounts Weifang Goer Manor Trading Co., 17,614.54 176.15

receivable Ltd.

Accounts Weifang High-Tech Zone Yasong 4,500.00 45.00

receivable Linju Kindergarten


Accounts Beijing Xiaoniao Tingting 9,233,053.25 92,330.53
receivable Technology Co., Ltd

Accounts Dynaudio (Shanghai) Co,.Ltd 189,133.13 1,891.33
receivable

Accounts Qingdao Point Hotel Management 252,800.00 2,528.00
receivable Co., Ltd.

(2) Items with accounts payable

Unit: RMB

Name of project Related parties Closing book balance Opening book balance

Accounts payable AKM Industrial Company Limited 48,787,168.95 39,135,420.36

Accounts payable Qingdao Virtual Reality Institute Co., Ltd. 6,797,327.04 4,925,805.03

Accounts payable Goertek Group Co., Ltd. 902,885.49

Accounts payable Weifang Goerdyna Technology Co., Ltd. 831,553.78 12,408,592.87

Accounts payable Weifang Goer Farm Co., Ltd. 640,072.69 1,747,498.74

Accounts payable Dynaudio (Shanghai) Co,.Ltd 556,600.00

Accounts payable Little Bird Co., Ltd 360,559.97

Accounts payable Weifang Point Hotel Management Co., Ltd. 331,842.00 98,568.00

Accounts payable Weifang Goer Manor Trading Co., Ltd. 264,603.04 212,941.81

Accounts payable Qingdao Point Hotel Management Co., Ltd. 258,802.92

Accounts payable Weifang Dotcom Catering Management Co., 237,005.09 260,375.00
Ltd.

Accounts payable Wemake (Qingdao) Digital Creative 172,083.50 404,150.41
Technology Co., Ltd.

Accounts payable Beijing Bubble Lab Co., Ltd. 165,554.34 46,561.60

Accounts payable BUAAGoertek (Weifang) Intelligent Robot 28,248.00

Co., Ltd.

Accounts payable Weihai Goer Ecological Agriculture Co., Ltd. 26,800.00 30,200.00

Accounts payable Weifang Goer Manor food & Beverage Co., 17,707.81 37,890.84
Ltd.

Accounts payable Weifang Gudian Garden Floriculture Co., Ltd. 7,296.00

Accounts payable Weifang Goer Property Service Co., Ltd. 1,542.00

Accounts payable Beijing Xiaoniao Tingting Technology Co., 2,757,461.08
Ltd

Accounts payable Wemake (Weihai) Digital Creative Technology 10,293.85
Co., Ltd.

Accounts payable Dotcom Investment Co., Ltd. 42,478.00

Contract liabilities Little Bird Co., Ltd 33.57

Other payables Weifang Goer Property Service Co., Ltd. 23,623.90

Other payables Weifang Goer Real Estate Co., Ltd. 805.20

Other payables BUAAGoertek (Weifang) Intelligent Robot 28,248.00
Co., Ltd.

7. Commitment of related parties
None

8. Others
None
XIII. Share-based payment
1. Overview of share-based payment
 Applicable  Not applicable

Unit: RMB

Total amount of equity instruments granted by the Company in the current 205,604,318.00
period

Total amount of equity instruments exercised by the Company in the 27,828,274.00
current period

Total amount of equity instruments of the Company which are invalid in 6,454,710.00
the current period

The range of exercise price of stock options issued by the Company at the See Explanation of Other Matters below

end of the period and their remaining period of contract

The range of exercise price of other equity instrument options issued by

the Company at the end of the period and their remaining period of See Explanation of Other Matters below

contract
Other explanations:

(1) The Company's outstanding stock options at the end of the year

① 2022 Stock Option Incentive Plan

To fully mobilize the employees for enthusiasm and creativity, attract and retain outstanding management talents and business
backbones, and improve the cohesion of employees and competitiveness of the Company, the "2022 Stock Option Incentive Plan" for
the key management backbones and business backbones (excluding directors and senior management) of the Company and its wholly-
owned and controlled subsidiaries was considered and approved at the 31st meeting of the 5th Board of Directors held on July 8, 2022,
and the 1st extraordinary general meeting of shareholders in 2022 held on July 26, 2022.

The exercise price of the initial grant and reserved portion of the stock options in this incentive plan is RMB 34.24 per share, which is
valid for 48 months from the date of the stock option grant to the date when all stock options are exercised or canceled. The waiting
periods for the initial grant of stock options and the reserved grant of stock options under this incentive plan are 21 months and 12
months after the grant date, respectively. The exercise periods begin after the expiration of the waiting periods. In the exercise period,
the grantees will exercise the options in two phases according to the exercise ratio of 50%:50% at exercisable dates.

The fair value of stock options shall be calculated and determined based on the Black Scholes option pricing model, the value of each
stock option for each phase of the initial grant is RMB 2.81 per share and RMB 4.73 per share respectively.

Under the Accounting Standards for Business Enterprises, the Company recognizes share-based payments paid in exchange for
employee services at 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 instruments on the grant date. And the payments are amortized over a set service period.
The share-based payment amortization expense recognized in 2022 is RMB 28,460,219.04 (RMB 28,460,219.04 in total). The amount
included under capital surplus- other capital surplus is RMB 28,450,585.73, and the minority shareholders' equity is RMB 9,633.31.
② 2021 Stock Option Incentive Plan

To fully arouse the enthusiasm and creativity of employees, attract and retain management talents and people who make up the
backbone of each department, and improve employee cohesion and the Company's competitiveness, according to the resolution of the
19th meeting of the 5th Board of Directors held on April 16, 2021 and the 2020 Annual General Meeting of Shareholders held on May
7, 2021, the Company shall implement the "2021 Stock Option Incentive Plan" for the important personnel in management and various
departments (excluding directors and senior management) of the Company and its wholly-owned and holding subsidiaries.

The exercise price of the initial grant and reserved portion of the stock options in this incentive plan is RMB 29.13 per share, which is
valid for 48 months from the date of the stock option grant to the date when all stock options are exercised or canceled. The 12 months
from the day when the stock options are granted initially or when the reserved stock options are granted under the Incentive Plan shall

be the waiting period, and the options may be exercised after the end of the waiting period. In the exercise period, the grantees will
exercise the options in two phases according to the exercise ratio of 50%:50% at exercisable dates.

The fair value of stock options shall be calculated and determined based on the Black Scholes option pricing model, the value of each
stock option for each phase of the initial grant is RMB 12.06 per share and RMB 14.50 per share respectively; and the value of each
stock option for each phase of the reserved grant is RMB 5.51 per share and RMB 7.14 per share respectively.

Under the Accounting Standards for Business Enterprises, the Company recognizes share-based payments paid in exchange for
employee services at 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 instruments on the grant date. And the payments are amortized over a set service period.
The share-based payment amortization expense recognized in 2022 is RMB 303,755,357.46 (RMB 565,880,477.99 in total). The
amount included under capital surplus- other capital surplus is RMB 302,029,060.59, and the minority shareholders' equity is RMB
1,726,296.87.

③ Goertek Microelectronics stock option incentive

According to the resolution of General Meeting dated September 29, 2020 and to the resolution of Board of Directors dated October
27, 2020, Goertek Microelectronics shall grant 17.335 million stock options to the directors, senior management and key backbones
(excluding supervisors and independent directors) of Goer Microelectronics and its holding subsidiaries to be exercised them in five
phases. The corresponding waiting periods are 18 months, 30 months, 42 months, 54 months and 66 months respectively from the date
of grant.

Goer Microelectronic applies the Black-Scholes option pricing model to measure and determine the fair value of stock options. The
values of stock options for the five phases are respectively RMB 3.41 per share, RMB 4.67 per share, RMB 5.53 per share, RMB 6.28
per share and RMB 7.45 per share.

Under the Accounting Standards for Business Enterprises, Goertek Microelectronics recognizes share-based payments based on the
best estimate of the number of exercisable equity instruments and the fair value of the equity instruments on the grant date. And the
payments are amortized over a set service period. The share-based payment amortization expense recognized in 2022 is RMB
3,568,283.61 (RMB 34,292,282.09 in total). The amount included under capital surplus- other capital surplus is RMB 3,065,116.37,
and the minority interests is RMB 503,167.24.

(2) The Company's other outstanding equity instruments at the end of the year

① ''Homeland No. 4'' Employee Stock Ownership Plan

To fully arouse the enthusiasm and creativity of employees, attract and retain management talents and people who make up the
backbone of each department, and improve employee cohesion and the Company's competitiveness, according to the resolution of the
5th meeting of the 5th Board of Directors held on April 21, 2020 and the 2019 Annual General Meeting of Shareholders held on May
8, 2020, the Company shall implement the “Homeland No.4” employee stock plan for certain directors (excluding independent
directors), supervisors and senior management as well as important personnel in management and various departments.

In order to ensure the efficiency of the incentives, the employee stock plan received the transfer of 49,270,100 shares in the Company’s
specific securities repurchase account at nil, and no employee was required to pay for the shares. The validity period of the “Homeland
No.4” employee stock plan is 48 months, and the shares shall be released in three stages. The time of release is the end of 12 months,
24 months or 36 months from the day when the Company declares the transfer of the last underlying shares of the Company to the
name of this employee stock plan.

Under the Accounting Standards for Business Enterprises, the Company recognizes share-based payments paid in exchange for
employee services at 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 instruments on the grant date. And the payments are amortized over a set service period.
The share-based payment amortization expense recognized in 2022 is RMB 138,693,750.47 (RMB 1,015,624,005.31 in total). The
amount is included under capital surplus- other capital surplus.

② ''Homeland No. 5'' Employee Stock Ownership Plan

To fully arouse the enthusiasm and creativity of employees, attract and retain management talents and people who make up the
backbone of each department, and improve employee cohesion and the Company's competitiveness, according to the resolution of the
19th meeting of the 5th Board of Directors held on April 16, 2021 and the 2020 Annual General Meeting of Shareholders held on May
7, 2021 to implement the “Homeland No.5” employee stock plan for certain directors (excluding independent directors), supervisors
and seniormanagement aswell asimportant personnelin management and variousdepartments who have madeimportant contributions
to the development of the Company.


The “Homeland No.5” employee stock plan received the transfer of shares in the Company’s special securities account for re-purchase
at RMB 10 per share. The shares under the employee stock plan will be released in two stages. The time of release is the end of 12
months or 24 months from the day of the transfer of the shares under the employee stock plan to this employee stock plan.

Under the Accounting Standards for Business Enterprises, the Company recognizes share-based payments paid in exchange for
employee services at 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 instruments on the grant date. And the payments are amortized over a set service period.
The share-based payment amortization expense recognized in 2022 is RMB 120,185,821.65 (RMB 231,219,021.65 in total). The
amount is included under capital surplus- other capital surplus.

③ ''Homeland No. 6'' Employee Stock Ownership Plan

To fully arouse the enthusiasm and creativity of employees, attract and retain management talents and people who make up the
backbone of each department, and improve employee cohesion and the Company's competitiveness, according to the resolution of the
2nd meeting of the 6th Board of Directors held on December 2, 2022 and the 3rd extraordinary general meeting of shareholders in
2022 held on 19 December 2022 to implement the ''Homeland No. 6'' employee stock plan for certain directors (excluding independent
directors), supervisors and senior management as well as important personnel in management and various departments who have made
important contributions to the development of the Company.

The “Homeland No.6” employee stock plan received the transfer of shares in the Company’s special securities account for re-purchase
at RMB 7 per share. The shares under the employee stock plan will be released in four stages. The time of release is the end of 18
months, 30 months, 42 months, or 54 months from the day of the transfer of the shares under the employee stock plan to this employee
stock plan.

Under the Accounting Standards for Business Enterprises, the Company recognizes share-based payments paid in exchange for
employee services at 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 instruments on the grant date. And the payments are amortized over a set service period.
The share-based payment amortization expense recognized in 2022 is RMB 8,469,500.90 (RMB 8,469,500.90 in total). The amount is
included under capital surplus- other capital surplus.

④ Goertek Microelectronics equity incentive by way of capital increase

According to the resolution of the General Meeting of Shareholders on September 29, 2020 and the amended Articles of Association
ofGoertekMicroelectronicsCo., Ltd., thenatural-person shareholdersMr. Jiang Longand Mr. SongQinglin subscribed for 21,500,000
shares of Goertek Microelectronics by way of capital increase. The capital increase price was RMB 2 per share, which was lower than
the fair value of Goertek Microelectronics shares, and the amount constituted a share-based payment.

Under the Accounting Standards for Business Enterprises, Goertek Microelectronics recognizes share-based payments based on the
best estimate of the number of exercisable equity instruments and the fair value of the equity instruments at the grant date. And the
payments are amortized over a set service period. The share-based payment amortization expense recognized in 2022 is RMB
49,923,000.00 (RMB112,702,882.19 intotal). Theamount included under capital surplus- other capital surplusis RMB 42,883,307.85,
and the minority interests is RMB 7,039,692.15.

⑤ Goertek Optical equity incentive by way of capital increase

According to the resolution of the General Meeting of Shareholders on June 20, 2022 and the amended Articles of Association of
Goertek Optical Technology Co., Ltd., the natural-person shareholders Mr. Jiang Bin, Mr. Jiang Long, and Goertek Optical employee
shareholding platform subscribed for 257.16 million shares of Goertek Optical by way of capital increase. The capital increase price
was RMB 1.5 per share, which was lower than the fair value of Goertek Optical shares, and the amount constituted a share-based
payment.

Under the AccountingStandards for Business Enterprises, Goertek Optical recognizes share-based payments based on the bestestimate
of the number of exercisable equity instruments and the fair value of the equity instruments at the grant date. And the payments are
amortized over a set service period. The share-based payment amortization expense recognized in 2022 is RMB 6,320,075.41 (RMB
6,320,075.41in total). Theamount includedunder capital surplus- other capital surplusis RMB4,972,698.53, and theminorityinterests
is RMB 1,347,376.88.

2. Share-based payment settled with equity

 Applicable  Not applicable


Unit: RMB

Determination method of the fair value of equity instruments at Black-Scholes model and fair value of equity instruments at the
the date of grant date of grant

Basis for determining the quantity of equity instruments with The Company makes the determination according the equity

vesting instruments corresponding to the current target employees and

the forecast of the Company's performance in the next year, etc.

Reason for significant difference in estimation in the current None

period and estimation in the last period

Accumulative amount of equity-settled share-based payment 2,002,968,464.58
included in capital surplus

Total amount of share-based payment settled with equity in 659,376,008.54
current period

3. Cash-settled payment settled in cash

 Applicable  Not applicable

4. Modification and termination of share-based payment

On June 30, 2022, the Board of Directors of Goertek Microelectronics considered and approved the Proposal to adjust the "2020 Stock
Option Incentive Plan" and other proposals to adjust the relevant exercise dates. The grant date of the Stock Option Incentive Plan is
October 27, 2020. The granted stock options are to be exercised in five installments, and the corresponding waiting periods are 24
months, 36 months, 48 months, 60 months, and 72 months from the date of grant respectively.

Due to the substandard performance in 2022 and the failure to meet the exercise conditions for the second exercise period of the stock
option incentive plan, Goertek Microelectronics intends to cancel 2.668 million shares of stock options.

5. Others
None
XIV. Commitments and contingencies
1. Important commitments

Important commitments on the balance sheet date

None
2. Contingencies

(1) Important contingencies on the balance sheet date

① Contingent liability derived from pending litigations and arbitrations, and financial influence therefrom

None

② Contingent liabilities and financial impacts from debt guarantees for other organizations

Asofthereportdate, except that theguaranteesprovided bytheCompanyto itssubsidiariesGoertek(HongKong) Co.,Limited, Goertek
TechnologyVina CompanyLimited, Weifang Goertek Microelectronics Co., Ltd., Rongcheng Goertek Microelectronics Co., Ltd., and
Goertek Microelectronics Inc. are not fulfilled as specified in Note XII.5, there is no debt guarantees of the Company provided to other
entities.

③ Contingent liabilities related to investments in joint ventures or associates

None

④ Other contingent liabilities and financial impacts

None


(2) The Company shall make a statement even if it does not have important contingencies to be disclosed
There are no important contingencies to be disclosed in the Company.

3. Others
None

XV. Matters after balance sheet date

1. Important non-adjustment matters

Unit: RMB

Impacted amount on The reason why the impacted
Item Content financial conditions and amount cannot be estimated
operating results

Goertek Microelectronics Inc., a

The progress of listing of a subsidiary of the Company, plans to

subsidiary, Goertek be listed on the ChiNext of Shenzhen Not applicable

Microelectronics Inc. on SZSE Stock Exchange. At present, the

ChiNext review procedure for issuance and

listing is suspended.

2. Profit distribution

Unit: RMB

Profits or dividends to be distributed 340,516,294.90

Profits or dividend declared after 340,516,294.90
deliberation and approval

Based on the total share capital registered on the record date of equity distribution

minus the repurchased shares in the Company's specific securities repurchase account,
Profit distribution plan the Company will distribute cash dividend of RMB 1.00 (tax inclusive) for every 10
shares to all the shareholders, as well as 0 bonus shares (tax inclusive), and there is no
conversion of capital surplus into share capital.

3. Sales return
None

4. Explanation of other matters after the balance sheet date

On April 6, 2023, Mr. Jiang Long, Vice Chairman, Director, and President of the Company, resigned from the above position of the
Company for personal reasons. After his resignation, Mr. Jiang Long will serve as a senior advisor of the Company.

XVI. Other important matters

1. Correction of early accounting errors

None
2. Debt restructuring
None

3.Asset replacement
None
4.Annuity plan
None
5. Discontinued operation
None
6. Division information
None

7. Other important transactions and matters that have an impact on investors' decisions

None
8. Others
Lease
(1) The Group as lessee

① For information on right-of-use assets and lease liabilities, please see Note VII. 16 and 34.

② Information on items recorded in current profit or loss and relevant asset costs

Unit: RMB

Items Amount of current period Amount in previous period

Short-term lease expense (simplified treatment applies) 70,892,405.81 56,008,840.98

Interest on lease liabilities included in finance expenses 17,092,607.19 13,692,320.31

Income derived from the sublease of the right-of-use assets 1,196,937.46 3,465,424.78

③ Cash outflows related to leases

Unit: RMB

Items Category of cash flows Amount of current Amount in previous
period period

Cash for repayment of principal and interest of Cash outflows from 128,750,261.16 102,991,821.74
lease liabilities financing activities

Payment for short-term leases and leases for low- Cash outflows from 70,892,405.81 56,008,840.98
value assets (simplified treatment applies) operating activities

Total 199,642,666.97 159,000,662.72

(2) The Group as lessor
① Information on financing lease
None
② Information on operating lease

Unit: RMB

Items Reported items Amount of current period Amount in previous period

Lease income Other business income 148,658,794.96 53,039,818.78


XVII. Notes to major items in the financial statements of the parent company

1.Accounts receivable
(1)Accounts receivable disclosed by classification

Unit: RMB

Closing balance Opening balance

Category Book balance Bad-debt provision Book balance Bad-debt provision

Amount Proportion Amount Proportion of Book value Amount Proportion Amount Proportion of Book value

accrual accrual

Including:
Accounts
receivable

with bad 8,897,702,147.22 100.00% 27,102,669.02 0.30% 8,870,599,478.20 8,040,359,505.41 100.00% 31,185,331.21 0.39% 8,009,174,174.20
debts reserves
by group

Including:

Group by 2,686,302,309.44 30.19% 27,102,669.02 1.01% 2,659,199,640.42 3,118,533,121.24 38.79% 31,185,331.21 1.00% 3,087,347,790.03
aging

Related party 6,211,399,837.78 69.81% 6,211,399,837.78 4,921,826,384.17 61.21% 4,921,826,384.17
group

Total 8,897,702,147.22 100.00% 27,102,669.02 0.30% 8,870,599,478.20 8,040,359,505.41 100.00% 31,185,331.21 0.39% 8,009,174,174.20

Bad debt reserve grouping: Group by aging

Unit: RMB

Closing balance

Name Book balance Bad-debt provision Proportion of accrual

Within 1 year 2,685,475,944.16 26,854,759.44 1.00%

1 to 2 years 826,365.28 247,909.58 30.00%

2 to 3 years
Over 3 years

Total 2,686,302,309.44 27,102,669.02


Bad debt reserve grouping: Related party group

Unit: RMB

Closing balance

Name Book balance Bad-debt provision Proportion of accrual

Within 1 year 6,211,399,837.78

1 to 2 years
2 to 3 years
Over 3 years

Total 6,211,399,837.78

If the provision for bad debts on accounts receivable is based on the general model of expected credit losses, please disclose

information about the provision for bad debts by referring to the disclosure of other receivables:

 Applicable  Not applicable

Disclosed by age of accounts receivable

Unit: RMB

Aging Book balance

Within 1 year (including 1 year) 8,896,875,781.94

1 to 2 years 826,365.28

Total 8,897,702,147.22

(2)Accrual, recovery or return of bad debt reserve in current period

None

(3)Accounts receivable actually written off in current period

None

(4)Accounts receivable of the 5 highest closing balance by debtor

Unit: RMB

Company name Closing balance of accounts Proportion of total closing Closing balance of bad debt
receivable balance of accounts receivable provision

Company 1 3,248,732,170.92 36.51%

Company 2 1,370,781,730.38 15.41%

Company 3 544,455,732.91 6.12% 5,444,557.33

Company 4 521,513,579.22 5.86%

Company 5 457,118,861.92 5.14%

Total 6,142,602,075.35 69.04%

(5)Amount of assets and liabilities formed by transferring accounts receivable and continuing to be

involved
None

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

None
2. Other receivables

Unit: RMB

Item Closing balance Opening balance

Other receivables 7,549,205,233.13 3,927,667,930.14

Total 7,549,205,233.13 3,927,667,930.14

(1) Interest receivable
None
(2) Dividends receivable
None
(3) Other receivables

1) Classification of other receivables by nature of payment

Unit: RMB

Nature of payment Closing book balance Opening book balance

Current account 7,513,774,764.36 3,774,035,738.53

Security deposit 5,919,227.94 40,178,537.85

Tax refund for export receivable 91,830,238.29

Withholding and remitting social 30,376,964.77 25,693,583.89
insurance and housing provident fund

Total 7,550,070,957.07 3,931,738,098.56

2) Provision for bad debts

Unit: RMB

First stage Second stage Third stage

Bad-debt provision Expected credit loss Expected credit loss for Expected credit loss for the Total

over the next 12 the entire duration (credit entire duration (credit

months impairment not occurred) impairment has occurred)

Balance as of January 1, 2022: 4,070,168.42 4,070,168.42

Balance as of January 1, 2022

in the current period

Accrual in the current period -3,204,444.48 -3,204,444.48

Balance as of December 31, 865,723.94 865,723.94
2022:

Significant changes in the carrying value of changes in the allowances for losses in the current period

 Applicable  Not applicable

Disclosed by age of accounts receivable

Unit: RMB

Aging Book balance

Within 1 year (including 1 year) 7,416,585,872.52

1 to 2 years 133,312,317.97

2 to 3 years 3,266.41

Over 3 years 169,500.17

3 to 4 years 69,500.17

4 to 5 years 0.00

Over 5 years 100,000.00

Total 7,550,070,957.07


3)Accrual, recovery or return of bad debt reserve in current period

Provision for bad debts of the current period:

Unit: RMB

Changes in amount of the current period

Category Opening balance Withdrawal or Closing balance
Accrual write-back Write-off Other

Group by aging 4,070,168.42 -3,204,444.48 865,723.94

Total 4,070,168.42 -3,204,444.48 865,723.94

4) Other receivables actually written off in the current period

None

5) Other receivables of the 5 highest closing balance by debtor

Unit: RMB

Ratio in the total Closing balance of
Company name Nature of payment Closing balance Aging closing balance of bad debt provision
other receivables

Company 1 Current account 2,236,100,000.00 Within 1 year 29.62%

Company 2 Current account 2,025,329,657.63 Within 1 year 26.83%

Company 3 Current account 1,223,530,287.69 Within 1 year 16.21%

Company 4 Current account 705,971,412.50 Within 1 year 9.35%

Company 5 Current account 664,922,879.36 Within 1 year 8.81%

Total 6,855,854,237.18 90.82%

6) Other receivables involving government subsidies

None

7) Other receivables derecognized due to transfer of financial assets

None

8)Amount of assets and liabilities formed by transferring other receivables and continuing to be involved

None
3. Long-term equity investments

Unit: RMB

Closing balance Opening balance

Item Book balance Depreciatio Book value Book balance Depreciatio Book value

n reserves n reserves

Investment in 6,569,063,091.12 6,569,063,091.12 6,182,937,106.09 6,182,937,106.09
subsidiaries
Investment in

associated 192,305,163.87 192,305,163.87

businesses and
joint ventures

Total 6,761,368,254.99 6,761,368,254.99 6,182,937,106.09 6,182,937,106.09

(1) Investment in subsidiaries

Unit: RMB

Increase or decrease in the current period Closing
Opening balance Provision Closing balance balance of
Invested entity (book value) Investment Investment for Other (book value) impairment
addition reduction impairme provision
nt reserve

Weifang

Goertek 1,461,802,456.32 26,502,266.94 1,488,304,723.26

Electronics Co.,
Ltd.
Weifang

Goertek 50,369,428.17 1,176,985.98 51,546,414.15

Trading Co.,
Ltd.
Yishui Goertek

Electronics Co., 30,000,000.00 30,000,000.00

Ltd.
Yili Precision

Manufacturing 331,899,916.31 6,645,851.82 338,545,768.13

Co., Ltd.
Goertek Optical

Technology 596,988,221.40 10,061,801.21 607,050,022.61

Co., Ltd
Goertek

Technology 958,337,466.08 31,376,217.82 989,713,683.90

Co., Ltd.
Beijing Goertek

Technology 30,160,833.60 26,656,809.23 56,817,642.83

Co., Ltd.
Qingdao
Goertek

Acoustics 61,876,266.54 27,071,578.01 88,947,844.55

Technology
Co., Ltd.
Shenzhen

Goertek 66,492,459.02 18,144,699.48 84,637,158.50

Technology
Co., Ltd.
Shanghai

Goertek 19,953,450.46 9,948,636.18 29,902,086.64

Technology
Co., Ltd.
Nanjing

Goertek 50,591,085.07 375,419.79 50,966,504.86

Technology
Co., Ltd.
Shenzhen

Mototek Smart 4,002,592.81 8,000,000.00 12,002,592.81

Technology


Increase or decrease in the current period

Provision Closing
Invested entity Opening balance Closing balance balance of
(book value) Investment Investment for Other (book value) impairment
addition reduction impairme provision
nt reserve

Co., Ltd.
Weifang
Lokomo

Precision 50,632,152.89 1,299,249.01 51,931,401.90

Industry Co.,
Ltd.
Goertek

Investment Co., 78,000,000.00 5,000,000.00 83,000,000.00

Ltd.
Beijing Goertek

Investment 2,744,323.56 1,591,323.18 4,335,646.74

Management
Co., Ltd.
Dongguan
JoyForce

Precision 30,633,305.44 737,675.11 31,370,980.55

Manufacturing
Co., Ltd.

Goertek Vina 247,634,379.61 247,634,379.61

Co., Ltd
Goertek

Technology 66,743,212.77 66,743,212.77

Korea Co., Ltd.

Goertek Electro 206,204,739.77 4,622,220.97 210,826,960.74

nics, Inc.
Goertek

Technology 129,078,085.50 20,877.78 129,098,963.28

Taiwan Co.,
Ltd.
Goertek

Technology 114,559,591.29 19,669,345.44 134,228,936.73

Japan Co., Ltd.
Goertek Seiki

Technology 1,024,111.56 1,024,111.56

Co., Ltd.
Goertek

Intelligence 352,561,720.50 2,993,460.18 355,555,180.68

Technology
Co., Ltd.
Goertek

Microelectronic 819,445,743.75 819,445,743.75

s Inc.
Beijing Goertek

Microelectronic 5,053,458.52 5,053,458.52

s Co., Ltd.


Increase or decrease in the current period

Provision Closing
Invested entity Opening balance Closing balance balance of
(book value) Investment Investment for Other (book value) impairment
addition reduction impairme provision
nt reserve

Qingdao
Goertek

Microelectronic 460,436.04 460,436.04

s Research
Institute Co.,
Ltd.
Qingdao
Goertek

Intelligent 842,096.78 842,096.78

Sensor Co.,
Ltd.
Rongcheng

Goertek 524,895.84 524,895.84

Microelectronic
s Co., Ltd.
Shanghai

Goertek 2,758,811.23 2,758,811.23

Microelectronic
s Co., Ltd.
Shenzhen

Goertek 1,206,995.30 1,206,995.30

Microelectronic
s Co., Ltd.
Weifang

Goertek 17,208,205.72 17,208,205.72

Microelectronic
s Co., Ltd.
Wuxi Goertek

Microelectronic 940,460.62 940,460.62

s Co., Ltd.
Qingdao
Goertek

Commercial 50,802,186.89 972,645.57 51,774,832.46

Factoring Co.,
Ltd.
Kunshan

Goertek 152,443,503.48 152,443,503.48

Electronics Co.,
Ltd
Rongcheng

Goertek 100,696,635.98 4,041,660.58 104,738,296.56

Technology
Co., Ltd.
Nanning

Goertek 80,000,000.00 233,954.95 80,233,954.95

Electronics Co.,


Increase or decrease in the current period

Provision Closing
Invested entity Opening balance Closing balance balance of
(book value) Investment Investment for Other (book value) impairment
addition reduction impairme provision
nt reserve

Ltd
Xi’an Goertek

Electronic 8,263,877.27 664,747.07 8,928,624.34

Technology
Co., Ltd.
Weifang High-
tech Zone

Goertek 300,000.00 300,000.00

Education
Center
Qingdao
Resonance

Venture Capital 2,295,000.00 2,295,000.00

Management
Co., Ltd.
Qingdao
Resonance
Phase I Venture

Capital Fund 160,000,000.00 160,000,000.00

Partnership
(Limited
Partnership)
Qingdao
Goertek

Horizons 30,021,151.54 30,021,151.54

Technology
Co., Ltd

Total 6,182,937,106.09 400,423,577.84 14,297,592.81 6,569,063,091.12

(2) Investment in associated businesses and joint ventures

Unit: RMB

Increase or decrease in the current period

Recognize

Opening d Closing Closing
balance investment Other Other Cash Provision balance balance of
Investor (book Investment Investment comprehensi dividends for (book impairment
addition reduction gain and ve income changes or profits impairment Other

value) loss under in equity value) provision
equity adjustments declared reserve

method

I. Joint Venture
II. Affiliated enterprises

Beijing -

Uphoton 200,000,00 7,694,836. 192,305,16

Technology 0.00 13 3.87

Co., Ltd.

Sub-total 200,000,00 - 192,305,16

0.00 7,694,836. 3.87


13

200,000,00 - 192,305,16

Total 0.00 7,694,836. 3.87

13

(3) Explanation of other matters:
None

4. Operating revenue and operating cost

Unit: RMB

2022 2021

Item

Income Cost Income Cost

Main business 35,652,094,423.46 32,162,388,871.15 28,940,399,193.43 25,585,348,376.14

Other business 7,325,297,627.45 5,829,646,168.53 9,630,277,984.27 7,877,421,262.62

Total 42,977,392,050.91 37,992,035,039.68 38,570,677,177.70 33,462,769,638.76

Information about performance obligations:
None
5. Investment income

Unit: RMB

Item 2022 2021

Return on long-term equity investments -7,694,836.13

measured by the equity method

investments income from disposal of long- -10,604,892.81

term equity investments

Investment income from disposal of 9,695,767.32 197,230,152.13
financial assets held for trading

Dividend income from long-term equity 645,651,914.62

investments of subsidiaries

Investment income from products such as 20,466,167.48 2,488,497.76
certificates of deposit

Profits or losses arising from derecognised -2,297,194.72
financial assets at amortised cost

Discount losses of financing receivables -833,626.41

that meet the conditions for derecognition

Other 295,443.10

Total 656,680,494.07 197,716,898.27

6. Others
None
XVIII. Supplementary information

1. Statement of non-recurring profits and losses for the current period

 Applicable  Not applicable


Unit: RMB

Item Amount Explanation

Loss or gain from disposal of non-current assets 122,922,237.61 Mainly investment income from disposal of

equity owned in other companies

Tax refunds, reductions, and exemptions approved ultra

vires or without official approval documents

Government subsidies included in the current profits and

losses (except those closely related to the Company's Mainly special funds for enterprise innovation
normal business, comply with national policies and 351,383,799.43 and development and other government

regulations, and continuously grant in accordance with a subsidies

certain standard quota or quantity)

Fund occupancy fees charged to non-financial

enterprises that are included in current profit and loss

Income generated from the fair value of the identifiable

net assets of an investee that is enjoyed by the Company

when the investment cost of acquiring a subsidiary, joint

venture, or joint venture is less than the cost of acquiring

the investment

Profits and losses from exchange of non-monetary assets

Profits and losses from entrusting others to invest or

manage assets

Provisions for impairment of various assets due to force

majeure, such as natural disasters

Profits and losses from debt restructuring

Enterprise reorganization expenses, such as expenses for

relocating employees, integration expenses, etc.

Profits and losses in excess of the fair value arising from

a transaction with an apparently unfair price

Current net profits and losses of a subsidiary from the

beginning of the current period until the combination

date resulting from a business combination under

common control

Profits and losses arising from contingencies unrelated to

the normal operation of the Company

In addition to the effective hedging business related to

normal business of the Company, the profits and losses

from the changes in fair value arising from holding Mainly the gains from the fair value changes
financial assets held for trading and financial liabilities -367,080,970.87 and transaction of the Company's foreign

held for trading, as well as the investment income exchange derivatives

obtained from the disposal of financial assets held for

trading, financial liabilities held for trading and

available-for-sale financial assets

Reversal of provision for impairment of receivables

individually tested for impairment

Profits and losses on external entrusted loans

Profits and losses arising from changes in the fair value

of investment properties subsequently measured using a

fair value model


The impact of one-time adjustment on the current profits

and losses according to the requirements of tax,

accounting, and other laws and regulations

Custody fee income from entrusted operations

Other non-operating income and expenditures other than 15,710,102.76

those mentioned above

Other profit and loss items that meet the definition of Mainly tax benefits and investment income

non-recurring profit and loss 42,288,231.23 from large-denomination deposits and other

products

Less: Impact of income tax 26,114,589.64

Impact of minority interests 17,306,309.42

Total 121,802,501.10 --

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

 Applicable  Not applicable

Mainly tax benefits and investment income from large-denomination deposits and other products

Description of defining the non-recurring profit and loss items, which are listed in ExplanatoryAnnouncement No. 1 on Information
Disclosure for Companies with Public Offerings of Securities - Non-recurring Profit and Loss, as recurring profit and loss

 Applicable  Not applicable

2. Net assets income rate and earnings per share

Weighted average Earnings per share

Profit during the reporting period return on net assets Basic earnings per share (RMB Diluted earnings per share
/ share) (RMB / share)

Net profit attributable to ordinary 6.17% 0.52 0.52
shareholders of the Company

Net profit attributable to ordinary

shareholders of the Company after 5.74% 0.49 0.49
deducting non-recurring profits and losses

3. Differences in accounting data under domestic and foreign accounting standards

(1) Differences in net profits and net assets in the financial reports disclosed pursuant to international

accounting standards and Chinese accounting standards at the same time

 Applicable  Not applicable

(2) Differences in net profits and net assets in the financial reports disclosed pursuant to foreign accounting
standards and Chinese accounting standards at the same time

 Applicable  Not applicable

(3) Explanation of reasons for differences in accounting data under domestic and foreign accounting

standards; if the data audited by an overseas audit firm is adjusted for differences, the name of the overseas
firm shall be indicated.
None

4. Others
None

Goertek Inc.

Chairman: Jiang Bin

April 17, 2023