GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.

AnnualReport2024

【DateofDisclosure】18March2025

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

MessagetoOurShareholders

Withthepastyearbeingafruitfulone,wearereadytoembraceanewchapter.2024markedthebeginningofaglobaleconomicshiftandrestructuring.Amidtheconvergenceofmultiplevariables,theupgradingoftraditionalindustriesdrivenbytechnologicalinnovationandtheartificialintelligencerevolutionshapedthepathforglobaldevelopment.Inthistransformativeera,DongfangPrecisionhassteadfastlyimplementedits“1+N”developmentstrategyandthepathof“theprincipalbusinessesasthecore+extendedinvestmentasthesupport”.Throughthedualenginesoforganicgrowthandexternalexpansion,wecontinuetostrengthenourpositionintheglobalhigh-endequipmentmanufacturingsectorwhileactivelyadvancingintechnology.

Atthesametime,wehaveproactivelyanticipatedindustrialtransformationtrends,makingforward-lookinginvestmentsinfieldssuchasrobotics,artificialintelligence,nuclearpower,andaerospace.Theseinvestmentshaveinfusedcutting-edgetechnologicalinnovationintoDongfangPrecision,drivingustoaccelerateourevolutionandgraduallyrealizethetransitionfromintelligentequipmentmanufacturingtothehigh-qualitydevelopmentofdigitalintelligence,aswellasachievingacomprehensivebreakthroughinour“digitalandintelligent”strategy.

In2024,DongfangPrecisionachievedtotaloperatingrevenueofRMB4.78billion,anetprofitofRMB500million,andapeakmarketvalueexceedingRMB20billion,presentingareporttoallshareholdersthatreflectsbothstrategicstabilityandinnovativebreakthroughs.

SustainedAdvancementofDualMainBusinesses,StrengtheningtheFoundation

Sinceitsfounding29yearsago,DongfangPrecisionhasremainedfocusedonthehigh-endequipmentmanufacturingsectorandcontinuouslyexpandedbothupstreamanddownstreamalongtheindustrialchainwiththeempowermentofthecapitalmarkets.Throughyearsofexperience,wehavedevelopedstrategicmanagementanddeepintegrationcapabilitiesinourcorebusinesssectors,achievingefficientintegrationofouracquisitionactivitiesandcontinuouslygeneratingsynergisticeffectswithintheindustrialchain.

Inthefieldofintelligentpackagingequipment,wehavebuiltacomprehensiveindustrialchainthatencompassessmartcorrugatedpackagingequipment,digitalprinters,andindustrialInternetindustrysolutions,alongsideaglobalnetworkforresearch,manufacturing,andsales.Wehavebeen

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

attheforefrontofdrivingdigitalandintelligenttransformation,continuouslyenhancingthetechnologicalcontentandaddedvalueofourproducts.In2024,DongfangPrecision’sintelligentpackagingequipmentsegmentachievedarecordhighinannualrevenue.OurmarketshareinsmartcorrugatedpackagingequipmentcontinuedtorankfirstinChinaandsecondglobally.Thehigh-endbrandFosbersawitsmarketshareinNorthAmericasurpass50%.Despiterisingsupplychaincostpressuresandheightenedglobalmarketfluctuations,wesuccessfullystrengthenedourgloballeadershippositioninintelligentpackagingmachinery,becomingatrustedindustrybenchmarkandpreferredpartnerforinternationalcustomers.

Inthefieldofwaterpowersportsequipment,weovercamekeytechnologicalchallengesinoutboardmotorsandofficiallylaunchedandmass-produceda300-horsepowergasolineoutboardmotorthatmeetsinternationaladvancedstandards.ThismarksanothersignificantachievementforDongfangPrecision,followingoursuccessfulbreakthroughsin2021and2023,whenwedisruptedthelong-standingmonopolyofAmericanandJapanesebrandsinthe115-horsepowerand130-horsepowergasolineoutboardmotormarkets.Currently,internationalcompetitionhasentereddeeperwaters,andChinaisgraduallytransitioningfrom“passivedefense”to“activebreakthrough”.Domesticsubstitutionisaccelerating.Inthiscontext,companiesthatcanbreakforeigntechnologicalblockadeswillbenefitfrombothindustrygrowthanddomesticsubstitution.Asarepresentativeoftheriseofdomesticoutboardmotorbrands,wewillleverageoursolidtechnologicalfoundation,activelypromoteR&Dinnovation,andsystematicallyexpandwaterpowersportsproductscenteredaroundoutboardmotors,injectingnewvitalityintotheChineseeconomy.Today,DongfangPrecisionthrivesonthestrongmomentumofitstwomainbusinesses—”intelligentpackagingequipment”and“waterpowersportsequipment”—positioningitselfasanindustryleaderintermsofmarketshare,industrialchainlayout,customersatisfaction,andoverallcompetitiveness.Thisisthemoatthatenablesustoeffectivelyrespondtovariousunknownchallengesinaneraofuncertainty.Italsoservesasthesolidfoundationforourongoingexternalexpansionanddrivesthecompanytowardahigherstageofqualitydevelopment.

ClearExternalExpansionStrategy,Multi-dimensionalEfforts

Lookingback,ourunwaveringstrategicvisionhasalwaysbeen“togrowlarger,notjuststronger”.Tothisend,wehavecraftedaclearexternalexpansionstrategy,whichhasbeen

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

implementedthroughthreekeyinitiatives:“expandingcorebusinessesandintegratingtheindustrialchain”,“strategicinvestmentsthatalignwithcorebusinesses”,and“exploringemergingindustriesthroughequityinvestments”.Theseinitiativesareactivelynurturingnewgrowthdrivers.

Inthisprocess,wefullyleveragetheadvantagesofourlistedcompany’sbrandplatform.Bycombiningourdeepintegrationandstrategicmanagementcapabilities,wecontinuetoenhanceourpositioninintelligentequipmentmanufacturingbyincubatingcompanieswithacorefocusontechnologicalinnovation,hightechnicalbarriers,andpromisingdevelopmentprospects.“Buildingmountainsfromaccumulatedearth,creatingseasfromaccumulatedwater”.Withthetechnologicaldepthachievedthroughourexternalexpansionstrategy,wehavemadebreakthroughsinseveralcoretechnologies.In2024,theCompanylaunchedtheindustrial-gradehigh-definitioncolordigitalprinter,markingthefirstuseofhigh-speeddigitalinkjetprintingtechnologywitharesolutionof1800NPIintheindustrial-gradepaperpackagingprintingfield.Additionally,theindustrialInternetbusinessintroducednewproductsandmodules,suchas“InterLink,”“MicroMes,”andthe“EquipmentAfter-SalesServiceManagementSystem,”whichnotonlyempowertheiterationandupgradeofourownproductsbutalsoenhancethelevelofdigitalintelligenceintheexistingproductionlinesofcorrugatedpackagingandcompositepaperboardindustries.Today,companiesundertheFosber,Tiru?a,ParsunPower,WonderDigital,DongfangDigicom,andotherbrandserieshavefullyintegratedintothelistedcompany’sdevelopmentsystem,becomingkeycomponentsofourcorebusinessandprofitgeneration.Ourforward-lookinginvestmentsinJatenRobot,RuoyuTechnology,AerospaceXinli,andothercompaniesareshowingstrongdevelopmentinrobotics,artificialintelligence,andnewmaterials.Theseventureslayasolidfoundationforexpandingtheapplicationofour“intelligentequipmentmanufacturing”strategyandopenupnewindustrialopportunitiesfortheGroup’sfuture.

MovingForwardwiththeTimes,ThrivingwiththeNation

Frominitiallyfocusingontheintelligentpackagingequipmentbusinesstoenteringthewaterpowersportsequipmentsectorandbecomingaleadingsupplier,andnowacceleratinggrowthwithnewengineslikerobotics,artificialintelligence,andnewmaterials—DongfangPrecisionhasconsistentlystrengtheneditsforward-lookingplanning,strategiclayout,andinnovativebreakthroughsinlinewithindustrialdevelopmenttrends,creatingmulti-dimensionalcorecompetitiveadvantages.

Inthepast,whentheera’sdividendsexploded,wechosetochallengethe“impossible”.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Fearlessly,wetransformedfromanindustryfollowertoaleaderthroughorganicgrowthandstrategicmergersandacquisitions.Wehaveledthedomestichigh-endequipmentmanufacturingindustrytowarddeeperinnovationandhigh-qualitydevelopment.

Lookingahead,theinevitabletrendoftechnologicalinnovationisintegration.Leveragingourleadingadvantagesintechnologicalresearchanddevelopment,wewillcontinuetopushforwardwithinnovation,consolidatingtheaccumulatedsparksof29yearsofprogressintoaninexhaustiblesourceofDongfangPrecision’shigh-qualitygrowth.Wewillworkhandinhandwithupstreamanddownstreampartnersacrossvariousbusinessfieldstohelprealizethenation’stechnologyself-reliancestrategy,makingDongfangPrecisionaproudrepresentativeofChinesenationalbrands.

Theachievementsof2024areatestamenttothetrustofourshareholdersandthehardworkofourteam.WearedeeplygratefulforyourunwaveringsupportandtrustinDongfangPrecision’sdevelopment.Facingthenewchallengesahead,wewillremaincommittedtoourmissionto“deepenourbusinessoperations”,accelerateinnovationandtransformationwithcapitalasthelink,expandmarketswithaglobalperspective,andcontinuetocreategreatervalueforinvestorsinthecapitalmarkets.

Thankyou!

ChairmanoftheBoard:TangZhuolin

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PartIImportantNotes,TableofContentsandDefinitions

TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagementofGuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethatthecontentsofthisReportaretrue,accurateandcompleteandfreeofanymisrepresentations,misleadingstatementsormaterialomissions,andcollectivelyandindividuallyacceptlegalresponsibilityforsuchcontents.TangZhuolin,theCompany’slegalrepresentative,ShaoYongfeng,theCompany’sChiefFinancialOfficer,andChenLin,theHeadoftheCompany’sAccountingDepartment(equivalenttoFinancialManager)herebyguaranteethatthefinancialstatementscarriedinthisReportaretruthful,accurateandcomplete.

AlldirectorsoftheCompanyattendedinpersontheboardmeetingfortheapprovalofthisReport.

Thefuturedevelopmentstrategies,businessplans,andotherforward-lookingstatementsmentionedinthisReportshallbedeemedasuncertainplansinsteadofpromisestoinvestors.Therefore,investorsareremindedtoexercisecautionwhenmakinginvestmentdecisions.

ForpossibleriskswithrespecttotheCompany,pleasereferto“(III)PossibleRisksandCountermeasures”in“XIProspects”of“PartIIIManagementDiscussionandAnalysis”herein.Andinvestorsarekindlyadvisedtoreadthroughtheaforesaidcontents.

TheCompanyplannednottodistributecashdividends,giveawaybonusshares,orcapitalizefrompublicreserve.

ThisReporthasbeenpreparedinChineseandtranslatedintoEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

TableofContents

PartIImportantNotes,TableofContentsandDefinitions ...... 5

PartIICorporateInformationandKeyFinancialInformation ...... 10

PartIIIManagementDiscussionandAnalysis ...... 15

PartIVCorporateGovernance ...... 78

PartVEnvironmentalandSocialResponsibilities ...... 108

PartVISignificantEvents ...... 110

PartVIIShareChangesandShareholderInformation ...... 120

PartVIIIPreferenceShares ...... 129

PartIXCorporateBonds ...... 130

PartXCorporateFinancialStatement ...... 131

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

DocumentsAvailableforReference

1.ThefinancialstatementssignedandsealedbytheCompany’slegalrepresentative,ChiefFinancialOfficer,andtheperson-in-chargeofthefinancialorgan.

2.TheoriginaloftheAuditor’sReportsealedbytheCPAfirmaswellassignedandsealedbythecertifiedpublicaccounts.

3.AlltheoriginalsoftheCompany’sannouncementsanddocumentsthatweredisclosedtothepublicduringtheReportingPeriodonthemediadesignatedbytheCSRCforinformationdisclosure.

4.The2024AnnualReportcarryingthesignatureofthelegalrepresentative.

5.ThedocumentsabovearelodgedintheSecuritiesDepartmentoftheCompany,18A,ChinaMerchantsPlaza,1166WanghaiRoad,Shekou,ShuiwanCommunity,ZhaoshangStreet,NanshanDistrict,ShenzhenCity,GuangdongProvince,China.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Definitions

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Term

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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integratespre-feeding,printing,grooving,diecutting,formingandpackagingfunctionsinwholeorinpart,whichishighlyfunctionallyintegrated,highlyautomatedandhighlytechnical,cansavethecapitalandmanpowerinvestment,reduceworkers'workloadandimprovetheproductionefficiencyofboxmanufacturers,andrequiresequipmentmanufacturerstobehighlycompetentindesign,technologicalinnovation,assemblyandfinishingofparts.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PartIICorporateInformationandKeyFinancialInformation

ICorporateInformation

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Stockname

IIContactInformation

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

IIIMediaforInformationDisclosureandPlacewherethisReportIsLodged

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NewspapersdesignatedbytheCompanyforinformationdisclosure

IVChangetoCompanyRegisteredInformation

VOtherInformation

TheindependentauditorhiredbytheCompany:

TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:

□Applicable√NotapplicableTheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:

□Applicable√NotapplicableVIKeyFinancialInformation

Indicatewhetherthereisanyretrospectivelyrestateddatuminthetablebelow.

□Yes√No

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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company’sshareholders(RMB)

Indicatewhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegativeforthelastthreeaccountingyears,andthelatestindependentauditor’sreportindicatedthattherewasuncertaintyabouttheCompany’sabilitytocontinueasagoingconcern.

□Yes√NoIndicatewhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegative.

□Yes√No

VIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards

1.NetProfitandEquityunderCASandIFRS

□Applicable√NotapplicableNodifferencefortheReportingPeriod.

2.NetProfitandEquityunderCASandForeignAccountingStandards

□Applicable√NotapplicableNodifferencefortheReportingPeriod.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

VIIIKeyFinancialInformationbyQuarter

Unit:RMB

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Q1

IndicatewhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorinterimreports.

□Yes√No

IXExceptionalGainsandLosses

√Applicable□Notapplicable

Unit:RMB

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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thantheabove

Detailsofotherprofitandlossitemsthatmeetthedefinitionofnon-recurringprofitorloss.

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:

□Applicable√NotapplicableNosuchcasesintheReportingPeriod

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PartIIIManagementDiscussionandAnalysis

ITheindustryinwhichthecompanyprincipallyoperatesduringtheReportingPeriod(I)IndustriesinwhichtheCompanyprincipallyoperatesAccordingtotheClassificationofStrategicEmergingIndustries(2018)andtheIndustrialClassificationforNationalEconomicActivities(GB/T4754-2017),theindustriesinwhichtheCompanyprincipallyoperatesareshownbelow:

TheCompany’sPrincipalBusinessDivisionsandTheirIndustries

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Strategicemergingindustry

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Strategicemergingindustry

(II)Industryoverview

1.TheIndustriestowhichtheCompany'sIntelligentPackagingEquipmentBusinessSegmentBelongs

1.1Demandside—customers

TheintelligentpackagingequipmentdivisionoftheCompanyprimarilyservesB-endcustomerssuchascorrugatedcardboardandcorrugatedboxmanufacturers.TheCompanyprovidesvarioussinglemachineandcompleteproductionlineproductsforcardboardandboxproduction.Enddemandforcorrugatedpackagingisgrowing:.Corrugatedpackagingproductsareusedinavastnumberoffields,includingfoodandbeverage,householdchemicals,electronicproducts,ande-commerceexpressdelivery,andareinelasticallydemandedbyconsumers.Electronicproducts,food,beverage,andexpressdeliverytakeup26%,20%,21%,and13%respectivelyofthedownstreamapplicationmarketofpaperpackaging.China’sexpressmarketandtherelevantfieldssuchase-commerceandlogisticsshowanincreasingdemandforcorrugatedboxandboardpackaging,whichwilldrivetheexpansionofthecapacityofcorrugatedpackagingenterprisesandthusincreasethedemandforcorrugatedpackagingmachinery.

Guidedbythe“large-scaleequipmentrenewal”policy,aswiftaccelerationinequipmentupgradesisanticipatedwithinthedomesticcorrugatedpackagingsector.

In2024,theCentralFinancialandEconomicAffairsCommissiondecidedtopromoteanewroundoflarge-scaleequipmentrenewal,explicitlymentioningtheneedto“promotetherenewalandtechnologicaltransformationofvarioustypesofproductionequipmentandserviceequipment”.TheStateCouncilexecutivemeetingconsideredandpassedtheIssuingtheActionPlanforPromotingLarge-scaleEquipmentRenewalsandConsumerGoodsTrade-ins,proposingto“promotetheproportionofadvancedproductioncapacitytocontinuetoincrease”.

Overtheyears,China'scorrugatedpackagingsectorhaslargelyconsistedofnumeroussmall-andmedium-sizedboxmanufacturersdominatedbylow-endproductioncapacities,leadingtoahighlydecentralisedmarketandrelativelylowindustryconsolidation.RespondingtothePartyCentralCommitteeandStateCouncil's“large-scaleequipmentrenewal”policydirective,thecorrugatedpackagingindustryanticipatesaheightenedpaceofequipmentmodernisationthroughoutthe14thFive-YearPlanperiod,withanexpectedsurgeinmedium-tohigh-endproductioncapacityproportions.

Inthecorrugatedpackagingindustry,marketconcentrationandthephase-outoflow-endproductioncapacityisaninevitabletrend,duetomarketcompetition,capacityupgrading,M&A,etc.Itisestimatedthatthelinemachinerythatismoreintelligentandproductivewillreplacetheexistingcorrugatedcardboardproductionlinesandcorrugatedboxprintingandpackagingproductionlineequipmentintheupcomingfivetotenyears.Bystatistics,thereareover6,000existingcorrugatedcardboardproductionlinesinthe

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

domesticmarket,andmorecorrugatedboxprintingandpackagingmachinery.

Digitalandintelligentupgradingbringsnewdevelopmentopportunities.The“strategyofrobotassemblingline”and“smartfactory”areincreasinglyrecognizedbytheindustry.Additionally,leadingpackagingenterprises,includingXiamenHexingPackagingPrintingCo.,Ltd.(HXPP),MYSGroupCo.Ltd.(MYS),ShenzhenYUTOPackagingTechnologyCo.,Ltd.,andShenzhenJinjiaGroupCo.,Ltd.,havesuccessivelyenteredmarketssuchasintelligentmanufacturingoneafteranother.Thecapacityupgradeinthepaperpackagingandprintingindustrycontinuestodeepen.Againstthebackdropofintelligentmanufacturing,leadingenterprisesinthecorrugatedpaperpackagingequipmentindustryarealsoexpectedtoembracenewopportunitiesfordevelopment.Overseasdemandisgrowingsteadily:Inrecentyearswhenenvironmentalpollutionbecomesmoreandmoreserious,growingenvironmentalawarenesshasledto“plasticbansandrestrictions”acrosstheworld,providingamajorboosttopaperasanalternativetoplastic.TheglobalgreenpackagingmarketisprojectedtogrowfromUSD262.27billionin2023toUSD381.98billionin2028,withacompoundannualgrowthrateof7.81%duringtheforecastperiod(2023-2028).

Thecorrugatedcardboardproducedbycorrugatedcardboardproductionlinesisusedtomakevariouscorrugatedboxes,corrugatedcartonsandothercorrugatedpackagingmaterials,whicharerigidconsumerproductsinEuropeanandAmericancountries.Thephilosophyof“sustainability”isgaininggroundintheEuropeanandUSconsumergoodspackagingmarkets.Withthegrowingtrendof"replacingplasticswithpaper"inthepackagingindustry,demandforcorrugatedpackagingmaterialsintheEuropeanandUSconsumergoodsmarketscontinuestogrowsteadily,helpingtodrivedemandforcorrugatedpackagingproductionlineequipment.

Therapiddevelopmentofdigitalprintingbringsmoredevelopmentopportunitiesfortheindustry.AccordingtothelatestreportbySmithersPira,theinkjetprintingmarkethasgrownstronglyoverthepast5years.Thereportforecaststhatgrowthofinkjetprintinginpackagingwillbemostrapidfrom2022to2027,withexpectedcompoundannualgrowthratesof17.7%byshipmentquantityand16.3%byvalue.

1.2Supplyside——theCompany’sWorld-leadingcomprehensivestrength

Inthefieldofintelligentpackagingequipment,DongfangPrecisionhasacompletelayoutandhasformedamulti-segmentbusinesssystemcoveringcorrugatedcardboardproductionlines,corecomponentsofcorrugatedboardproductionlines,cartonprintingandpackaginglinesaswellasdigitalprintingequipment.Relyingonitscomprehensiveindustrialchainlayoutandstrongtechnologicalstrength,thecompany,withitswiderangeofproductsandadvancedtechnologies,providesglobalcustomerswithone-stopandall-roundintelligentpackagingequipmentsolutions.

Corrugatedcardboardproductionlines:MajormanufacturersofcorrugatedcardboardproductionlinesaroundtheworldincludeFosberGroup,BHS,Marquip,andJ.S.Machine.Amongthem,FosberGroupanditsmajorrival,BHS.FosberGroupholdsapproximately30%oftheglobalmiddle-andhigh-endcorrugatedcardboardproductionlinemarketandmorethan50%oftheNorthAmericanmarket.

Corrugated&pressurerollers,keycomponentsofcorrugatedcardboardproductionlines:ThesubsidiaryTiru?aGrouphasmorethan40yearsofexperienceinthecorrugatedandpressurerollersegmentandisrenownedinEuropeasaworld-leadingspecialistinthissegment.

Corrugatedboxprintingandpackagingproductionlineequipment:MajormanufacturersinthisfieldincludeDongfangPrecision,Bobst,Gopfert,Ward,DingLong(Shanghai),andGuangzhouKeshenglong.Withanadvantageinglobalresourcecoordination,leadingdesignconcept,excellentoverallR&Dstrength,andaproductsystemfeaturingcompletecategoriesandrichspecifications,DongfangPrecisionisanindustryleaderinChinaandiscompetitivewiththeglobalindustryleader,Bobst,from

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Switzerland.Digitalprinters:MajormanufacturersincludeHP,EFI,Koenig&BauerDurst,WonderDigital,HanhuaGongye,andAtexco,amongothers.WonderDigital,amajority-ownedsubsidiaryofDongfangPrecision,isaleaderinthedomesticdigitalprinterindustry,andhasbeencommittedtoextendingdigitalprintingtechnologytosuchfieldsaspaperpackaging(colourprinting&pre-printing),advertising,homefurnishing,buildingmaterials,andlabelprinting.DongfangPrecisionleadstheworldintermsofitscomprehensivestrengthinsmartcorrugatedpackagingequipmentbusinessandcanprovidedownstreamcustomerssuchascardboardplantsandboxplantswith“one-stop”machineryandservicesupportthatcoverseachproductionprocess,includingcorrugatedcardboardproduction,corrugatedboxproduction,andpre-printingandpost-printingproductionprocesses,anddifferenttechnologyroadmaps,includingflexographicprintinganddigitalprinting.

ThevalueoftheglobalcorrugatedpackagingequipmentmarketisestimatedtobeaboutRMB30-40billion.Intermsofoperatingrevenue,DongfangPrecisionaccountsforapproximately15%oftheglobalcorrugatedpackagingequipmentmarket,rankingfirstamongdomesticenterprisesofthesametypeandsecondintheglobalmarket.

2.Theindustrytowhichthecompany'sindustrialInternetindustrysolutionsbusinessbelongs

Policyside:.Foreightconsecutiveyearsfrom2018to2025,"IndustrialInternet"hasappearedinthegovernmentworkreporteveryyear.Thegovernmentworkreportin2025putforwardtheideaof"vigorouslypromotingnewindustrializationandacceleratingtheinnovativedevelopmentoftheIndustrialInternet".The"14thFive-YearPlanfortheIn-depthIntegrationofInformatizationandIndustrializationDevelopment"proposedthatby2025,informatizationandindustrializationwouldachieveintegrateddevelopmentonabroaderscale,atadeeperlevelandatahigherlevel.Undertheguidanceandsupportofaseriesofpolicies,theIndustrialInternetandsmartfactorieshavealwaysbeenimportantdirectionsforthetransformationandupgradingofthemanufacturingindustry.

Marketside:ChinaistheonlycountryintheworldwhoseindustriescoverallindustrialcategoriesintheUnitedNations’industrialclassification.Concurrently,itisexpectedtogrowintotheworld’slargestindustrialdigitalizationmarket.ForthecurrentmanufacturingindustryofChina,digitaltransformationisnolongeran“option”buta“compulsorycourse”thatiscriticaltoitssurvivalandlong-termdevelopment.

AccordingtotheBluebookontheDigitalTransformationofEnterprises--EmpoweringtheLow-carbonandGreenTransformationoftheRealEconomywithNewITreleasedbytheChinaAcademyofInformationandCommunicationsTechnology,afterrelevantmanufacturingenterprisescompletedigitaltransformation,onaverage,theirproductionefficiencywillbeboosted,theiroperatingexpenseswillbelowered,andtheirenergyutilisationratewillbeimproved.Concurrently,withtherapiddevelopmentandcontinuousiterationofthenew-generationinformationtechnology,thecostofdigitaltransformationofenterprisesisgraduallydecreasing.

AccordingtothedatareleasedbyFrost&Sullivan,thescaleofthemarketofindustrialInternetplatformsandrelevantsolutionsinChinaby2025isestimatedtoreachRMB193.12billion.TheScaleoftheMarketofIndustrialInternetPlatformsandRelevantSolutionsandForecastbetween2020and2025

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Supplyside:ThekeytechnologiesandindustriesthattheindustrialInternetinvolvesareextensiveandcomplexandcanhardlybefullycoveredbyenterprises.Thus,developingtheindustrialInternetbyrelyingonindustrialmanufacturingenterprisesbecomesatypicaldevelopmentpathofindustrialInternetenterprises,suchasRootCloud,MideaCloud.Inthepackagingfield,majormanufacturersthatprovideindustrialInternet-relatedproductsandsolutionsservicesincludeYunyin,DongfangDigicom,andShanghaiWantit.

ThesubsidiaryDongfangDigicom,carryingDongfangPrecision’smissionsofexpandingintotheindustrialInternetindustryandimplementing“digitalandintelligenttransformationstrategies”,wasestablishedin2020.Withthevision“tobecomeaworld-leadingproviderofindustrialInternetindustrysolutions”,DongfangDigicomisengagedinbuildingindustrialInternetplatformsforindustriesusingnew-generationinformationtechnologies,suchastheIoT,cloudcomputing,bigdata,andartificialintelligencetofacilitatedigitalandintelligentupgrading.

3.TheIndustriestowhichthecompany'swaterpowerproductssegmentbelongs

3.1Demandside——customers

Outboardmotorsarethekeyauxiliaryequipmentforsmall-andmedium-sizedshipsandarecharacterizedbytheircompactstructures,lightweights,convenientinstallationandmaintenance,easyoperations,andlownoise.Thedownstreamoftheoutboardmotorindustryinvolvestheshipbuildingindustry,primarilyappliedinareassuchasyachts,sailboats,andothervessels,encompassingapplicationsinrecreationalsports,commercialoperations,andmilitarymaritimeactivities.

ApplicationsofParsunPower’sOutboardMotors

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Field

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Recreational

GlobalMarket:AccordingtoareportbytheinternationalmarketresearchagencyGMI,theglobalmarketsalesforoutboardmotorsareexpectedtoreachUSD15,975millionby2030,withacompoundannualgrowthrate(CAGR)of5.35%from2023to2030.ByApplicationField:Therecreationalboatingsectoristhelargestdownstreamapplicationmarketforoutboardmotors.By2030,itisexpectedthatthemarketshareofoutboardmotorsusedinwater-basedleisure

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

sportswillaccountfor73.22%globally.Yachtsareoneofthemaindownstreamproductsequippedwithoutboardmotors.Inrecentyears,theglobalyachtindustryhasshownatrendofexpandingscale.AccordingtoareportbytheChinaAssociationoftheNationalShipbuildingIndustry,thegloballeisureboatmarketsizeisexpectedtogrowfromUSD16.4billionin2021toUSD23.6billionin2027,withaCAGRofapproximately6.20%.Benefitingfromtherapidgrowthofthedownstreamyachtmarket,theglobaloutboardmotormarketforwaterleisuresportsisexpectedtogrowsteadily.

ByPowerSize:Themarketshareofmid-to-highpoweroutboardmotorsaccountsformorethanthree-quartersofthetotalmarket.In2023,themid-to-highpoweroutboardmotormarketshareintheglobaloutboardmotormarketwas79.72%.NorthAmericaandEuropearethemainmarketsformid-to-highpoweroutboardmotors.From2023to2030,thecompoundannualgrowthrate(CAGR)ofthemid-to-highpoweroutboardmotormarketintheAsia-Pacificregionisexpectedtoreach8.97%.

ByPowerType:Gasolineoutboardmotorsarethemainstreammodelintheglobaloutboardmotorconsumptionmarket.By2030,itisexpectedthatthemarketshareofgasoline,diesel,andelectricoutboardmotorsgloballywillbe80.21%,11.49%,and8.30%,respectively.Dieselengineshavecertainmarketspaceinspecificfields.Electricoutboardmotorsareprimarilyusedforlowhorsepower,withahigherpricebutfeaturessuchasgreaterenvironmentalfriendlinessandeasiermaintenance.Withincreasinglystringentenvironmentalregulationsinvariouscountriesandcontinuousadvancementsinbatterytechnology,theapplicationofelectricoutboardmotorsisbecomingmorewidespread.

ChineseMarket:By2030,themarketsizeofoutboardmotorsinChinaisexpectedtoreachUSD588million,withacompoundannualgrowthrate(CAGR)of9.79%from2022to2030,significantlyhigherthantheglobalCAGR.BenefitingfromtherapidgrowthofChina’seconomyandchangesinresidents’recreationalhabits,Chinahasbecomeoneofthefastest-growingcountriesintheglobaloutboardmotormarket.

Domesticsubstitutionhasbecomethemainstreamtrendinthedevelopmentofthedomesticoutboardmotorindustry.AccordingtoChina’scustomsimportandexportdata,theimportvalueofoutboardmotorsintoChinareachedRMB1,283millionin2023.Inthepublicserviceandmilitaryfields,China’smilitaryoutboardmotorsinthemid-to-highpowerrangeprimarilyuseoverseasbrands.Againstthebackdropofthenationalpolicyencouragingdomesticequipmenttoreplaceimports,withtheriseofdomesticoutboardmotorcompanies,Chinaisexpectedtoenteranewstageofprosperousdevelopmentfordomesticoutboardmotorcompanies.Leadingdomesticoutboardmotorcompanieswillbenefitfromboththeindustry’srapidgrowthanddomesticsubstitution.

PolicySupport:Inrecentyears,withthedevelopmentofChina’swatertourismandleisureindustryandthecountry’semphasisonmarinerights,variousgovernmentdepartmentshaveprovidedsignificantpolicysupportforthedevelopmentoftheboatingindustry.

3.2Supplyside——theCompany’spresenceintheindustry

ThemajorparticipantsintheglobaloutboardmotormarketareJapaneseandAmericanbrands,includingYamahaandSuzukifromJapan,andMercuryfromtheUnitedStates.Comparedtointernationalcompetitors,ParsunPower,relyingonitsproductperformancethatisclosetothecompetitors’anditsclearpriceadvantage,competesgloballywithAmericanandJapanesemanufacturersbyofferinghighcost-performanceproducts.

ParsunPower,aholdingsubsidiary,isaleadingcompanyinthedomesticoutboardmotorindustry.From

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

2020to2022,ParsunPower’soutboardmotorproductsrankedfirstinmarketshareinChinaforthreeconsecutiveyears.Thecompanyisanational“LittleGiant”enterprisespecializingininnovation,anationalhigh-techenterprise,theJiangsuProvinceOutboardMotorEngineeringTechnologyResearchCenter,arecognizedenterprisetechnologycenterinJiangsuProvince,aleadingenterpriseintheChineseinternalcombustionengineindustry,andamemberunitoftheSmallGasolineEngineBranchoftheChinaInternalCombustionEngineIndustryAssociation.Atthesametime,itsoutboardmotorproductshavealsoreceivedvarioushonors,includingtheNationalTorchProgramIndustrializationDemonstrationProjectCertificate,ChinaMachineryIndustryInnovativeProducts,JiangsuProvinceFamousBrandProducts,andSuzhouCityFamousBrandProducts.TheleadingcomprehensivetechnicalR&DcapabilitiesinthedomesticindustryarethemaincompetitiveadvantageofParsunPowerintheoutboardmotorindustry.In2021and2023,ParsunPowersuccessfullybeganmassproductionof115-horsepowerand130-horsepowergasolineoutboardmotors,respectively.InMarch2024,ParsunPowerreleaseditsfirstdomesticallyproduced300-horsepowergasolineoutboardmotor.Thesecoretechnologies,withindependentcontrolanddomesticallysourcedmanufacturingsupplychains,representamilestoneinthelocalizationofhigh-endequipmentmanufacturingintheoutboardmotorsector.ThisbreakthroughisofepochalsignificanceforthedevelopmentofChina’sdomesticoutboardmotorindustry.ItsuccessfullybreaksthemonopolyofAmericanandJapanesemanufacturersinthehigh-power,large-horsepoweroutboardmotorsegment,markingtheleapofChina'shigh-endequipmentmanufacturingindustryfroma“follower”toa“competitor”inthehigh-endlarge-horsepoweroutboardmotorfield.Itannouncesthatdomesticoutboardmotorswillfullyentertheglobalhigh-endmainstreammarketandcompetewithinternationalbrandsworldwide.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

IIPrincipaloperationsoftheCompanyintheReportingPeriod

With“intelligentequipmentmanufacturing”asitsprimarystrategicfocus,DongfangPrecisionconcentratesonthemanufacturingofhigh-endintelligentequipment.Itsprincipaloperationsinclude“intelligentpackagingequipment”and“waterpowersportsequipment”.The“intelligentpackagingequipmentbusiness”consistsofsmartcorrugatedpackagingequipment,digitalprinters,andindustrialInternetindustrysolutions.

BusinessDivisionsandEntitiesofDongfangPrecision

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

(I)TheintelligentpackagingequipmentdivisionTheintelligentpackagingequipmentdivisionconsistsofsmartcorrugatedpackagingequipment,digitalprinters,andindustrialInternetindustrysolutions,whichcoverthemostimportantlinksinthevaluechainofcorrugatedpackagingproduction(asshownbelow).

RelationshipbetweenCorrugatedPackagingManufacturingValueChainandtheCompany'sSmartCorrugatedPackagingEquipment

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

A.Smartcorrugatedpackagingequipmentbusiness

(1)Corrugatedcardboardproductionlines(includingcorrugatedrollers)ThecorrugatedcardboardproductionlinesbusinessofDongfangPrecisionisengagedincorrugatedcardboardproductionlines(underthebrandsofFosberandQuantum)aswellascorrugatedandpressurerollers(undertheTiru?abrand),whicharekeycomponentsofcorrugatedcardboardproductionlines.WiththeoverseasFosberGroup(underit,FosberItaly,FosberAmerica,QCorr,andTiru?aGroup)aswellasthedomesticFosberAsiaandTiru?aAsia,DongfangPrecisionisabletoprovideproductsandservicesforcustomersaroundtheworld.

(1)Overseas,FobserGroupprimarilyserveslarge-andmedium-sizedmanufacturersinEurope,NorthAmerica,LatinAmericaandothercountriesandregions.AllthebusinessunitsandprofitcentresofFosberGrouphavetheirbusiness,assetsandstafflocatedinEuropeandNorthAmerica.Theyadoptalocalmanagementandoperationmodel,anddesign,developandmanufacturetheirproductslocally.FosberGrouphasestablishedstablepartnershipswithmajormanufacturersinthecorrugatedpackagingindustryinEuropeandtheUS.

(2)Domestically,Fosber’scorrugatedlineshavebeendesignedandadaptedtotheneedsofcustomersintheChinesemarket.SupportedbyChina’smostcompletesupplychainacrossallindustrialsectorsglobally,aswellasthecompetitiveedgeofmanufacturing,over90%ofthecomponentsofthecorrugatedlinesaremanufactureddomestically.Theseproducts,whicharehigh-tech,high-performanceandcost-efficientfortheyaremadeinChina,areprovidedforcorrugatedpackagingmanufacturersinChina,Asia(EastAsia,SoutheastAsia,SouthAsia,andtheMiddleEast),Africa,Russia,andLatinAmerica.Since2022,theCompanyhasfurtherintroducedTiru?a’scorrugatedandpressurerollerstoChinafordomesticdesignandlocalproduction.WhilecateringtotheneedsofFosberAsia’scorrugatedlinesforcorrugatedandpressurerollers,Tiru?aisalsodevelopingnewmarketsinChinaandtherestofAsiaforitsproducts.

(2)Corrugatedboxprintingandpackagingproductionlines

Domestically,DongfangPrecision(China)isresponsibleforbusinessoperationsassociatedwithcorrugatedboxprintingandpackagingequipment,whileintheoverseasmarket,itisDongfangPrecision(Europe).

TheproductmatrixofDongfangPrecision(China)includescorrugatedconvertinglineandsinglemachineproductsthatareofdozensofspecificationsanddifferentmarketpositioning,featuringfixedtype/open-closetype,topprinting/bottomprinting,andothertechnologies.Theseproductsmainlyinclude“DongfangStar”QuicksetTopPrintingFFGandTopPrintingOpen-CloseTypeFFGInline,aswellas“AsiaStar”BottomPrintingDieCutterStripperVacuumStackerConvertingLine,BottomPrintingOpen-CloseTypeFFGInlineandBottomPrintingOpen-ClosedType/FFG&Stitcher.DongfangPrecision(China)isaprofessionalmanufacturerwithanearlystartandastrongfoundationamongdomesticfellowcompanies,enjoyinghighbrandawarenessandcustomerrecognitionintheindustry.Theproductsarehighlypopularnotonlyinthedomesticmarketbutalsoexportedtoover60countriesandregionsworldwide.

DongfangPrecision(Europe)specializesinhigh-endcorrugatedconvertinglineproducts.Itsprimaryproductsinclude“FD”QuicksetTopPrintingFFG,“HGL”QuicksetBottomPrintingFFG,andQuicksetBottomPrinting/DieCutterStripperVacuumLine.Theseproductsaredesignedwithnoncrushfeederdesign,fullservocontrol,andfullyautomaticcontrolfeatures,makingthemmoresuitableforhigh-definitionprinting.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PrimaryProductPortfolioofDongfangPrecision’sintelligentpackagingEquipmentBusiness-CorrugatedCardboardProductionLines

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DomesticLine:

Width:2.2m~3.15mDesignspeed:270-370meters/minuteSingletile,doubletile,tripletilewetsectionWetsectionwithoutbelttechnologyCadrewithoutlubricationtechnologyHighboardqualityIndustry-leadingSyncrosystemcontrolProcessControlSupervision(PCS)DataTrackingSupervision(DTS)

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Corrugated&

pressurerollers

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PrimaryProductPortfolioofDongfangPrecision’sSmartCorrugatedPackagingEquipmentBusiness-CorrugatedBoxPrintingandPackagingProductionLineEquipment

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B.DigitalprintersThebusinessisprimarilyledbythesubsidiaryShenzhenWonderDigitalTechnologyCo.,Ltd.,whichprovidessolutionsforcustomersinthedigitalprintingindustry,includingdigitalprinters,ink,accessories,andprofessionalservices.WonderDigitalhasintroducedavarietyofdigitalprinterstomeetthediverseneedsofdifferentmarketsegmentsandcustomerlevels,including:

(1)MultiPassdigitalprinterseriesapplicableforsmall-batchpaperpackagingprinting

(2)SinglePassdigitalprinterseriesapplicableforlarge/medium/smallbatchpaperpackagingprinting

(3)SinglePassdigitalseriesapplicableforpre-printingonrawpaper

(4)HybridprinterseriesthatcombinesMultiPasshigh-precisionprintingandSinglePasshighspeedprintingintoone.WonderDigitaloffersadiverserangeofproductsthatcovervarioustypesandspecifications,frompostprintingtopre-printing,fromwater-baseddye/pigment,water-basedinktospotcolourUVink,fromboxes,offsetcartonstosheetmetal.Theproductsalsosupportarangeofapplicationmodesandscenarios,fromsingle-sheetprintingtoexchangeordersseamlesslywithvariabledataprinting,andfromsinglemachineprintingtointegrationwithERPsystems.

Apartfromdigitalprinters,WonderDigitalalsosellssupportingunitsafterprintingsectionincludingslottingandvarnishcoatingunits,aswellasspecialinkproductsthatarecompatiblewithitsown-brandequipment.Thesespecialinkproducts,includingwater-baseddyeink,water-basedpigmentink,andUVink.WonderDigital’shighcost-performancedigitalprintingsolutionprovidescustomerswithcost-effectiveconfigurationplansfordigitalinkjetprintingequipmentandinkformulationplans.

Basedonaccumulatedknow-howandexperience,WonderDigitalprovidesdigitalprintersforadvertising,homedecoration,andotherfields,includingflatbedprintingandrolltorollprintingtechnologies.Theflatbedmodelscanbeusedfordigitalprintingonmaterialssuchasaluminumpanels,glass,metalplates,acrylicsheets,andalucobondpanels,whiletheroll-to-rollmodelsareapplicablefordigitalprintingoncorrugatedcardboard,vehiclepastepaper,lampboxfabric,PVCfilm,decoratedpaper,andsheetmetallikealuminumsheets,amongothers.Additionally,WonderDigitalalsooffersdigitalprintersforthelabelprintingindustry.

Withitscomprehensiveproductmatrix,WonderDigitalprovidespaperpackagingdigitalprintersthatmeettheiverseneedsofindustrycustomerswithdifferentmarketpositionsandlevels.Sinceitsestablishmentin2011,WonderDigital’sdigitalprintershavebeenexportedtocountriesandregionssuchasEurope,America,MiddleEast,LatinAmerica,andSoutheastAsia,withover1,600unitsofequipmentinstalledworldwide.

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PrimaryProductPortfolioofDongfangPrecision’sintelligentpackagingEquipmentBusiness–DigitalPrinters

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C.IndustrialInternetindustrysolutionsDongfangDigicom,asubsidiaryofDongfangPrecision,servesastheprimarybusinessentityfor“industrialInternetindustrysolutions”.BasedontheextensiveindustryexperienceofDongfangPrecisionspanningoverthreedecadesinthefieldofcorrugatedpackagingequipment,aswellasguidedbytheGroup’sstrategies,thesubsidiaryDongfangDigicom,leveragingcutting-edgetechnologiessuchastheInternetofThings(IoT),cloudcomputing,bigdata,5G,andartificialintelligence(AI),hasdevelopediDataPioneer,anindustrialInternetplatformforthepackagingindustryinabroadsense.

One-StopDigitalFactoryOverallSolutionArchitectureDiagram

In2024,DongfangDigicomupgradeditscapabilitiesfrom“platform/softwareproducts”toafull-stacksolutionof“platform+softwarecustomization+services+consulting.”Thebusinessmodelhasbecomefurtherclarified,providingproductsandservicestolargepackagingindustryclientsthatcoverintelligentproductionlines,integratedproductionoperations,andintelligentbusinessdecision-making.

DongfangDigicomhaslaunchedcustomizedproductsforpackagingindustryclients,including“InterLink,”“MicroMes,”and“EquipmentAfter-SalesServiceManagementSystem.”TheseproductscanbeembeddedintothesaleofnewmachinesundertheDongfangPrecisionbrand,enhancingproductvalue.Theycanalsobesoldindependently,supportingtheupgradeofexistingequipmentandcompatiblewithmultiplebrands,thusmeetingthediverseneedsofindustryclientswithflexiblebusinessmodels.

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

“InterLink”isanintelligentproductionmanagementsystemdesignedforDongfangPrecision’scorrugatedboxprintingandpackagingequipment.ItfullyutilizestheecologicalresourceadvantagesofDongfangPrecision'scorrugatedpackagingequipment,improvingmachineoperationefficiency,orderprocessingcapacity,reducingordermanagementcosts,andenhancingthemarketcompetitivenessofmachineproducts.“MicroMes”isanintegratedapplicationsolutionbasedontheintelligentproductionmanagementsystemandenterpriseERP,achievingclosed-loopmanagementfromordercreation,scheduling,productionissuancetoreporting.Itenhancesthedigitalizationlevelofproductionprocesscontrol.The“EquipmentAfter-SalesServiceManagementSystem”focusesontheafter-salesserviceofpackagingprintingequipment.Itenablesthereuseofunderlyingtechnologiesandrealizesthedigitalizationofequipment“points,rounds,inspections,”andmaintenancethroughsystematicafter-salesservices,onlinesparepartsmanagement,fulllifecyclemanagementofequipmentrecords,andremotemaintenance.

DongfangDigicomalsoprovidesdigitaldiagnosticconsultingservicesforlargepackagingindustryclients.Throughdigitaltransformationconsulting,itdrivesproductsales,creatinga“servicesolution-drivenproductsales”closedloop.

D.BusinessModel

R&Dmodel:TheCompanyhasindustry-leadingindependentdesignandR&Dcapabilities,continuallyestablishinghigh-levelR&Dinnovationmanagementmechanisms.TheR&Dteam,spearheadedbyindustryexperts,employsablendoflongandshort-termproductR&Dplanning,supportedbyamarket-orientedR&Dmechanism.Additionally,arobustR&DtalentincentivemechanismenhancestheCompany’soveralltechnicalproficiency,cementingitsleadershippositionintheindustry.

Procurementandproductionmodel:TheCompanyprocuresrawmaterials,suchassteelplates,metalcomponents,andelectricalparts(suchasmotorsandPLCs),fromexternalsuppliers,whileproducingsomecorecomponentsandcorrugatedrollersin-house.

ThemajorityoftheCompany’sequipmentproductsadheretoa“made-to-orderproduction”model.Uponreceivingordersandpartialdepositsfromcustomers,theCompanypurchasesrawmaterialsfromsuppliersbasedonspecificcustomerrequirementsandinventorylevels,anddevelopsproductionplansandschedules.TheCompanyadvocatesa“leanproduction”modelforproductionandoperationalmanagement,ensuringprecisecontroloverBOMcostsandmanufacturingexpenses,whilecontinuouslyenhancingoperationalefficiency.

In2024,thedeliveryperiodforordersofcorrugatedboardproductionlinesundertheFosberGroupwasfurthershortenedfrom9monthsinthesecondhalfof2023toabout6months.ThedeliveryperiodforordersofcorrugatedboxprintingandpackagingcompletemachineequipmentundertheDongfangPrecisionbrandwas3to6months,andthedeliveryperiodforordersofdigitalprintingequipmentundertheWonderDigitalbrandwas1to3months.

MarketingModel:TheCompanyemploysa“directselling+distribution”marketingmodel.Itutilizesadirectsalesapproachforthedomesticmarketandacombinationofdirectsalesandagentdistributionforoverseasmarkets,tailoringthestrategytosuittheuniqueneedsofdifferentcountriesandregions.Thisapproachnotonlywidensthescopeofsaleschannelsandincreasessalesvolumebutalsoreducesmarketexpansionandsalescosts.

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

TheCompany’scompleteproductionlineandsingle-machineproductsaretypicallyone-timesales,withmoresignificanttransactionamounts.However,accessories,software,andservicescanbesoldmultipletimesthroughoutthelife-cycleofthecompleteproductionlineorsingle-machineproducts.Thegrowingnumberofexistingequipmentsoldinthedownstreamindustrymarketpresentsasteadystreamofsalesopportunitiesforaccessories,software,andservices.Additionally,providinghigh-qualitytechnicalsupportandserviceshelpstopromotethesalesofcompleteproductionlineproducts.

Intermsofthesettlementoforders,theCompanyenjoysahighbrandawarenessandsuperiorbargainpowerintheindustry,soitcollectsdownpaymentinadvanceandpaymentbystagesforthesalesofcorrugatedcardboardproductionlinesandcorrugatedboxprintingandpackagingequipment.Generally,80%to90%ofthesalespaymentcanbecollecteduponthedeliveryofproducts.

(II).Thewaterpowersportsequipmentdivision

ThemainproductsofParsunPower,asubsidiary,areoutboardmotorsofvariousspecificationsandseries.Theproductpowerrangeisbroad,coveringfrom2horsepowerto300horsepower.Theproductsareofstablequalityandreliableperformance,withsomeproductsofferingcomprehensiveperformancecomparabletointernationallyrenownedbrands,andemissionsmeetingEuropeanandAmericanstandards.MostmodelshavepassedtheChinaClassificationSociety(CCS)certification,EuropeanCEcertification,andU.S.EPAcertification.Theseproductsarewidelyusedinwaterleisuresports,fisheries,watertransportation,emergencyrescue,coastallanding,maritimepatrol,andotherfields,andareexportedglobally.

(1)Outboardmotors

ParsunPowerhasachievedacompleteproductlinelayoutof“gasoline—diesel—electric”outboardmotors.Leveragingitsyearsofexperienceandleadingmarketshareinthegasolineoutboardmotorsector,thecompanyisnowadvancingtowardshigh-powerdieselandelectricoutboardmotors.Inthefuture,ParsunPower'soutboardmotorproductswillgraduallyfocusonmid-to-highpower,whileexpandingtheelectricoutboardmotorproductlinetocontinuesolidifyingitspositionasaleadingdomesticoutboardmotorbrand.

GasolineoutboardmotorsarethemostdiverseproductrangeinParsunPower’sportfolio,coveringfrom20horsepowerto300horsepower,includingtwo-strokeandfour-strokemodels.ParsunPowerhasaccumulatedextensiveexperienceinthisfieldovermanyyears,developingproprietarytechnologiesthatareappliedtoitsproducts.In2021,ParsunPowerachievedmassproductionandsalesofa115-horsepowergasolineoutboardmotor,successfullybreakingthelong-standingmonopolyofinternationallyrenownedbrandsinthispowersegment.In2023,itachievedmassproductionandsalesofa130-horsepowergasolineoutboardmotor,andin2024,itreleaseda300-horsepowergasolineoutboardmotor,markingtheformalentryofChineseenterprisesintotheglobalhigh-endmainstreamoutboardmotormarket.

Electricoutboardmotorsuserechargeablebatteriesasanenergysourceandconvertelectricalenergyintokineticenergyviaanelectricmotor.Comparedwithfuel-poweredoutboardmotors,theyfeaturezeroemissions,lowernoise,andareeasiertooperate.ParsunPower’selectricoutboardmotorsprimarilyfocusonsmalltomediumhorsepower,mainlyusedinenvironmentallysensitiveareassuchastouristresorts.

Dieseloutboardmotorsretaintheadvantagesofgasolineoutboardmotors,suchaseaseofinstallation,

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

maintenance,andoperation,whilealsoofferinggreaterfuelefficiency,loweremissions,highertorque,enhancedsafety,andeasiermaintenance.ParsunPower’sown-branddieseloutboardmotorsarestillunderdevelopment.TheexistingdieseloutboardmotorproductlineincludestheagencysaleofSwedishbrandOXEMarinemotors,primarilyfortheChinamainlandmarket.Modelsinclude150horsepower,175horsepower,200horsepower,and300horsepowerdieseloutboardmotors,mainlyusedincommercialtransport,offshoreoilextraction,andpubliclawenforcementfields.

ParsunPower’sMainGasolineOutboardMotorModels

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Model

(2)GeneralmachinesParsunPower’sgeneralmachineproductsmainlyincludegasolineengines,gasolinegeneratorsetsandgasolinewaterpumpsets.Gasolineengines,primarilysingle-cylinderfour-strokeunits,utilizegasolineasfuelandareadaptableforuseinagriculturalmachinery,gardeningequipment,andothersmallmachineryapplications.Gasolinegeneratorsetscombinetheseengineswithgenerators,functioningasstandbypowersources.Thegasolinewaterpumpsetsfeaturecentrifugalpumpsdrivenbygasolineenginesandareextensivelyutilizedinagriculturalirrigation,livestockwatering,andsimilardomains.

(3)TheoperationalmodelofthewaterpowersportsequipmentbusinessParsunPowerfollowsanindustry-standardsalesmodelthatprimarilyreliesondistribution,supplementedby

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

directselling.Thedemandforoutboardmotors,whicharethecompany’smainproduct,ismainlydistributedoverseas,withendcustomersscatteredthroughouttheworld.Adoptingadistribution-centricsalesmodelenablesParsunPowertoreachendcustomerstothefullestextentpossible.ParsunPowerproducesoutboardmotorproductsindependently,utilizingsalesdemandforecasts,customerorders,productinventorystatus,materialdeliveryprogress,andproductproductioncyclestoformulateproductionplans.Thecompanythenorganizestheproductionofcomponentsinaccordancewithspecializedprocessesandprocedures.Inprocurement,ParsunPowerfollowingtheprincipleof“salesdetermineproduction,productiondeterminesprocurement,”ParsunPowerdeterminestheprocurementrequirementsforitsoutboardmotorbusiness,whilealsotakingintoaccountreasonablesafetystock.

IIICoreCompetitivenessAnalysis

TheanalysisoftheCompany’scorecompetitivenessintheReportingPeriodisasfollows:

(I)Industry-leadingtechnologyandstrongcapabilitiesofR&DandinnovationTheCompany’soverallR&Dcapabilitiesrankamongthetopindomesticenterprisesofthesametype.Bytheendof2024,theCompanyhadbeengranted491patents,anincreaseof71comparedtothepreviousyear;ithadalsobeengranted84softwarecopyrights,anincreaseof9comparedtothepreviousyear.

1.Thesmartcorrugatedpackagingequipmentbusiness:

Thehigh-endcorrugatedcardboardproductionlinesundertheFosberGroup,asubsidiary,isindustry-leadingintermsofspeed,width,accuracy,reliability,andlevelofintelligence.Ithasearnedglobalrecognitionfromcustomersforitshighquality,reliability,andintelligentsoftwaresystems.BasedonIndustry4.0technology,FosberGrouphaslaunchedacorrugatedcardboardproductionlinecontrolsystem,whichincludesmodulessuchasPro/Syncro,Pro/Care,andPro/Quality.Usingsensors,AR,AIanalytics,bigdata,andcloudcomputingtechnologies,itenableshighprecisionandintelligentmanagementofproductionlines.Amongthem,Pro/Syncroachieveshigh-speed,high-quality,andlow-energyconsumptionproduction;Pro/Careprovidesintelligentdiagnosticstoreduceequipmentdowntime;andPro/Qualityperformsreal-timedefectdetectionandqualitytraceability.FosberalsooffersremoteservicessuchasPro/VisionairandRemoteControl,significantlyreducingafter-salescostsandimprovingcustomerefficiency.FosberAsia,asubsidiary,hasintroducedandappliedthe“InstantSet”dual-moduleslitterincorrugatedcardboardproductionlines.Byindependentlycontrollingthecuttingbladesandcreaserswithservomotors,itreducestheorderchangeovertimefromtheindustryaverageof8-15secondstounder3seconds,makingitparticularlysuitableforChina’s“smallbatch,diverseproduct”ordercharacteristics.

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

HowFosberGroup’sPROSeriesIntelligentProductionManagementInformationTechnologySystemWorks

WonderDigital,aholdingsubsidiary,isanationalhigh-techenterpriseanda“LittleGiant”Enterprisewithspecialties,refinedmanagement,uniquetechnologiesandinnovation.Itconnectsthephysicalanddigitalworldsthroughacompletedigitalprintingmatrix,offeringcomprehensivesolutions.WonderDigital’sbrandUVdigitalcolorprintersandhigh-speeddigitalprintersachieveaprintingaccuracyof1800NPI,withcolorprintingqualitycomparabletotraditionaloffsetprinting.ThenewproductWONDERINNOPROSINGLEPASSlaunchedin2024representsatechnologicalbreakthroughindigitalprinting,extendingfromcolortohigh-definitioncolors.Itslarge-width,roll-to-rollhigh-speeddigitalprintingmachineisleadinginChina,offeringadvantagesinsize,energyconsumption,andcost-effectiveness.

2.Thewaterpowersportsequipmentbusiness:

ParsunPowerisanational-level“LittleGiant”withspecialties,refinedmanagement,uniquetechnologiesandinnovationandahigh-techenterprise.Ithaslongfocusedontheresearchanddevelopmentofdomesticoutboardmotors,accumulatingrichinnovativeachievements.Bytheendof2024,thecompanyhadaccumulated114intellectualpropertyrightsandparticipatedintheformulationofseveralindustrystandards.IthasalsowonthesecondprizeoftheChinaMachineryIndustryScienceandTechnologyAwardtwice.In2021and2023,ParsunPowersuccessfullyachievedmassproductionof115-horsepowerand130-horsepowergasolineoutboardmotors.InMarch2024,ParsunPowerreleaseditsfirstdomesticallyproduced300-horsepowergasolineoutboardmotor,realizingindependentcontrolofkeycoretechnologiesforhigh-poweroutboardmotors.Thecompanysuccessfullydesignedahigh-powergasolineoutboardmotorwithalargedisplacementV6in-lineenginestructure,innovativelyapplyingengineeringcombustiontheorytooptimizecombustionandemissionsinoutboardmotors.Thesecoretechnologies,withindependentcontrolanddomesticmanufacturingsupplychains,markamilestoneinthelocalizationofhigh-endequipmentmanufacturingintheoutboardmotorsector.Thisachievementisofepochalsignificanceforthedevelopmentofthedomesticoutboardmotorindustry.

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

(II)CompletelayoutinthecorrugatedpackagingmachineryindustrychainandthemostcompleteandrichestproductportfoliointheindustryAmongdomesticcompaniesinthecorrugatedpackagingequipmentsector,DongfangPrecisionistheenterprisewiththemostcompleteandcomprehensiveindustrialchainlayout.Itsproductscoverthefieldsofcorrugatedcardboardproduction,cartonprintingandpackaging,anddigitalprinters.Thecompany'sbusinessencompassesallkeylinksinthecorrugatedpackagingproductionandprocessingvaluechain,anditpossessesthemostcomprehensiveanddiverseproductportfolioofcorrugatedpackagingproductionlineequipmentintheindustry.Thisenablesthecompanytomeettheneedsofdifferentmarketsegmentsandvarioustypesofcustomers,offeringdozensofdifferentspecificationsandmodelsoffull-lineandstandaloneproducts,makingittheleaderinthedomesticmarket.

1.Corrugatedcardboardproductionlines

Inthefieldof“High-EndIntelligentCorrugatedcardboardproductionlines“:FosberGroup,asubsidiary,offersthreemajorseriesofproductsofcorrugatedcardboardproductionlines:S/Line,Pro/Line,andQuantumLine,alongwithkeycomponentsforcorrugatedcardboardproductionlines,suchascorrugatingrollsandpressurerolls.Theseproductsaredesignedformediumtolarge-sizedenterprisesintheglobalcorrugatedcardboardproductionandprocessingindustry,providingmid-to-high-endcorrugatedcardboardproductionlinesinvariousspecifications,types,anddifferentpositioninglevels.

TheS/LineandPro/Lineareprimarilysuitablefortheproductionofcorrugatedcardboardwithathicknessof2mmto13mm.Thistypeofcorrugatedcardboardisknownforitsstrongload-bearingcapacity,excellentshockresistance,highplasticity,andenvironmentalfriendliness.Itiswidelyusedinlogisticsandexpressdelivery,furnitureandhomeappliances,andelectronicspackaging.TheQuantumLineismainlysuitablefortheproductionofsolidfiberboardunder2mmthickandmicro-corrugatedcardboard.Thistypeofcardboardislightweight,highinstrength,moisture-resistant,andenvironmentallyfriendly.Itiswidelyusedinpackagingforcolorboxes,high-endproducts,electronics,andculturalandartisticitems.TheTiru?abrand’scorrugatingrollsandpressurerollsarecompatiblewithvariousbrandsanddifferentspecificationsofcorrugatedcardboardproductionlines.Theycanbecustomizedbasedonthetypeofcorrugatedline,coatingrequirements,andapplicablepapertypes.

2.Corrugatedboxprintingandpackagingproductionlines

DongfangPrecision(China)andDongfangPrecision(Europe)offerhigh-qualitycorrugatedboxprintingandpackagingproductionlinesandstandaloneequipmentforboththeChineseandoverseasmarkets.Theyofferdozensofdifferentspecificationsandmarketpositioningproducts,coveringfixed/open-closetype,top-print/bottom-print,full-line(line)/standalonemodels,makingthemthemostcomprehensiveanddiversesuppliersofproductsinthisfieldglobally.

3.Digitalprinters

WonderDigitaloffersfourmajorseriesofdigitalprintingmachines,coveringawiderangeoftypesandspecifications,frompost-printingtopre-printing,fromwater-basedinkstodyesandpigments,fromwater-basedspotcolorstoUVspotcolors,andfromcartonsandcolorboxestocoiledmaterials.Themachinessupportvariousapplicationmodesandscenarios,includingsingle-sheetprintingtovariabledataseamlessjobchangeover,

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

standaloneprintingtoERPintegration,amongothers.WonderDigitalpositionsitselfasa“digitalprintersupermarket,”meetingtheneedsofdifferentmarketsandindustrycustomersatvariouslevelsfordigitalprintingproduction.(III)ProfoundKnow-HowexperienceandexperiencedteamintheindustryDongfangPrecisionhasateamwithdeepindustryKnow-howandextensiveexperience.Withover20yearsofexperienceinbothdomesticandinternationalmarkets,theteamhasaprofoundunderstandingoftheindustrylayout,developmentplanning,R&Droadmap,productionoperations,marketing,andteammanagementinthefield;Thecoremanagementteamhasabroadvisionandisabletodeeplygrasptheoveralldevelopmenttrendsofthesmartcorrugatedpackagingequipmentmanufacturingindustry.Throughforward-lookingstrategicplanningandlayout,thesteadyandsustainabledevelopmentoftheCompanyisachieved.Furthermore,theCompanypracticesaprofessionalmanagermanagementmodel,continuouslyimprovingorganizationalstructure,managementauthority,incentivesystems,andculturaldevelopment.ThesemeasureshelptheCompanyattracttalentandenhancetheteam’scombateffectiveness.

(IV)HighbrandpopularityandcustomerrecognitionworldwideIntelligentPackagingEquipmentSector:TheFosberbrandcorrugatedlines,Quantumcorrugatedlines,Tiru?abrandcorrugatingrollsandpressurerolls,aswellasDongfangPrecisionbrandcorrugatedboxprintingandpackaginglines,andWonderDigitalbranddigitalprinters,arewell-knownandinfluentialbothdomesticallyandinternationally.FosberGroup,asubsidiary,wasfoundedin1978andisoneofthetwocompanieswiththestrongestcomprehensivestrengthinthehigh-endcorrugatedlinesectorworldwide.TheFosberbrandenjoysahighlevelofrecognitionandreputationinthecorrugatedpackagingindustrymarketsinEurope,NorthAmerica,andLatinAmerica.Tiru?aGroup,anothersubsidiary,hasnearly40yearsofexperienceinthefieldofcorrugatingrollsandpressurerolls,withitsproductsbeingsoldinover60countriesandregions.Qcorr,asubsidiaryformerlyknownastheItaliancorrugatedlinesupplierAgnati,hasover80yearsofindustryexperience.DongfangPrecisionbrand’scorrugatedboxprintingandpackaginglinesaresoldinmorethan60countriesandregions.TheholdingsubsidiaryWonderDigitalisinthetoptierofthedomesticdigitalprinterfield,withitsproductssoldinover80countriesandregionsandamarketstockofover1,600units.

WaterPowersportsEquipmentSector:ParsunPower,asubsidiary,isaleadingcompanyinthedomesticoutboardmotorindustry.From2020to2022,ParsunPower’soutboardmotorproductsmaintainedthehighestnationalmarketshareforthreeconsecutiveyears.TheParsunPowerbrandhasreceivednumeroushonors,including“JiangsuProvinceFamousBrandProduct”and“SuzhouFamousBrandProduct”.Overseas,ParsunPower’ssalesnetworkcoversmorethan100countriesandregions,establishingbusinesspartnershipswithnumerouscustomersworldwide.

(V)Globallayoutofbusinessassets

TheCompanymainlyservescustomersinthecorrugatedpackagingindustryworldwide,andhasrealizedthegloballayoutofitsbusinessassets:

InAsia,theCompanyhasthreeR&Dandmanufacturingbases,locatedinFoshan,Suzhou,andShenzhen.InEurope,theCompanyhasfourR&Dandmanufacturingbases,locatedinItalyandSpain.Additionally,theCompanyhasproductionbasesandserviceoutletsintheUnitedStatesandMexico.Theinternationalmarketing

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

andservicenetworkenablestheCompanytoprovideproducts,equipment,andtechnicalservicestoindustryclientsinover100countriesandregions.Italsohelpsintegrateglobalresources,improveresourceallocationefficiency,achievecomplementaryadvantages,reducecosts,andrealizethebenefitsofoptimalresourcedistribution.

GlobalDistributionDiagramoftheCompany’sBusinessAssetsandMarketingNetwork

(VI)StrongcapabilitiesofstrategiccontrolandintegrationSincegoingpublic,DongfangPrecisionhascontinuouslyexpandedupstreamanddownstreaminitscoreindustries.Overmanyyearsofpractice,theCompanyhasdevelopedstrongstrategiccontrolanddeepintegrationcapabilitiesacrossitsbusinesssegments,accumulatingrichexperienceandpracticalknowledge.StrategicmanagementcapabilitieshavebecometheCompany'scorestrengthinsuccessfullymanagingitsvariousbusinessentities.Inpractice,theCompanyhasdevelopedasetofeffectivepost-investmentintegrationmanagementmethodsbydeeplyunderstandingtheindustry,forecastingindustrytrends,andfocusingonstrategicgoals.Thesemethodsincludecorporategovernancestandardizationpolicy,the“BoardofDirectors-SupervisoryCommittee-GeneralMeeting”operationmechanism,thestrategicandfinancialcontrolsystem,decentralizedauthorizationmanagement,completeaudits,andmanagementincentives,formingasetofmeasuresforeffectivecontrolsforpost-investmentintegrationwiththeCompany’sowncharacteristicstosecuretheeffectiveimplementationofthestrategicplan.?Corrugatedcardboardproductionlines:FosberGrouprecordedacompoundannualgrowthrate(CAGR)ofnetprofitof25%overthepastfiveyearsSinceacquiringthecontrollingstakeinFosberItalyin2014,DongfangPrecisionanditsmanagementteamhaveimplementedaseriesofeffectiveintegrationmeasures,includingadjustingstrategicplanning,businessstrategies,standardizingthemanagementsystem,managementincentives,andstrengtheningfinancialcontrol.ThesemeasuressuccessfullyenergizedFosberGroup,achievingacompoundannualrevenuegrowthrateofabout12%andacompoundannualnetprofitgrowthrateof25%from2020to2024.

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

?Waterpowersportsproducts:ParsunPower’sCAGRsofoperatingrevenueandnetprofitachieved22%overthepastfiveyearsSinceacquiringthecontrollingstakeinParsunPowerin2015,DongfangPrecisionhashelpedParsunPowerenhanceitsR&D,marketing,supplychain,andmanufacturingthroughstrategicadjustmentsandtheintroductionofoutstandingtalent.Between2020and2024,ParsunPowerachievedacompoundannualgrowthrateof22%inbothrevenueandnetprofit.?Revitalizingestablishedenterprises:Tiru?aGroupandQCorrFrom2019to2020,DongfangPrecisioncompletedtheacquisitionofTiru?aGroupandQcorr(formerlyItaly’sAgnati)throughitssubsidiaryFosberGroup.Duringthepost-investmentintegrationphase,continuousoptimizationandadjustmentsinstrategy,R&D,marketpositioning,production,andtalentmanagementeffectivelyrevivedthesetwolong-establishedEuropeancompanies.In2024,bothQCorrandTiru?aGroupachievedgoodannualnetprofitgrowth,settingtheirbestperformancesincebecomingpartofDongfangPrecision.

Relyingonstrongstrategicmanagementandintegrationcapabilities,andbasedonmutualrespectandmutualtrustwithanopenmindset,theCompanyhassuccessfullyintegrateditsbusinessentities.Thesynergiesalongtheindustrialchaincontinuetobereleased,contributingtotheactivepracticeofChina’sprivateenterprisesgoingglobal,accumulatingvaluableexperience,andprovidingstrongsupportfortheCompany’ssustainableandsteadydevelopment.

(VII)Goingglobalandbringingin,integratingdomesticandinternationalindustrialChainadvantages,andstrengtheningthecompetitivemoat

Overtheyears,DongfangPrecisionhasactivelyimplementedthe“GoGlobal,BringIn”strategyinthecorrugatedpackagingequipmentsector,throughearlyoverseasexpansionanddomesticmanufacturingupgrades.Whilemaintainingtechnologicalleadershipintheindustry,theCompanyeffectivelyreducescostsbyleveragingtheadvantagesofChinesemanufacturing,improvingproductcost-effectivenessandmarketadaptability,therebyenhancingthecompetitiveadvantageofitsproductsandcontinuouslybuildingamoatinthedomestichigh-endcorrugatedpackagingequipmentsector.

SubsidiariesFosberAsiaandTiru?aAsiahaveintroducedFosber’scorrugatedcardboardproductionlinesandTiru?a’scorrugatingrollsandpressurerolls,adaptingandupgradingthemtomeettheactualneedsoftheChinesemarket.Thishasachievedtechnologylocalizationandmanufacturingdomestication,fullyleveragingChina’sadvantageastheworld’smostcompleteindustrialandmanufacturingsupportnetwork,significantlyloweringproductioncostsandimprovingproductcompetitiveness.Fosber’sdomesticmanufacturingrateformid-to-high-endcorrugatedlineshasreached90%,andTiru?aAsiadelivereditsfirstbatchofmass-producedcorrugatingrollsandpressurerollsin2024.Thedevelopmentofbothcompaniesfullyembodiestheintegrationofdomesticandforeignindustries,creatingdifferentiatedcompetitiveadvantagesfordomestichigh-endsmartequipment,andexpandingintonewmarketsinChinaandregionslikeSoutheastAsiaandSouthAsia.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

IVAnalysisofPrincipalOperations

(I)OverviewIn2024,China’snationaleconomydemonstratedadevelopmenttrendof“steadyimprovementandprogresswhileaccumulatingstrength”.AccordingtodatafromtheNationalBureauofStatistics,China’sGDPgrewby5%year-on-yearin2024.Theaddedvalueoftheequipmentmanufacturingindustryhasmaintainedagrowthratehigherthanthatofallindustrialsectorsaboveadesignatedsizefor15consecutivemonths.Theintelligenttransformationandupgradingofthemanufacturingindustryhascontinuedtodeepen,andnewproductiveforceshavecontinuedtodevelopandgrow.

UnderthestrongleadershipoftheBoardofDirectorsandmanagementteam,allemployeesin2024workeddiligentlyandmadecontinuousefforts.Asaresult,theCompanyachievedsteadyrevenueandsignificantgrowthinnetprofitinitscorebusinessoperations.

In2024,theCompanyachievedtotaloperatingrevenueofapproximatelyRMB4,778million,whichremainedstablecomparedto2023;ItachievedanetprofitattributabletoshareholdersofthelistedcompanyofapproximatelyRMB500million,ayear-on-yearincreaseof15.54%.Thenetprofitattributabletoshareholdersofthelistedcompany,excludingnon-recurringgainsandlosses,wasapproximatelyRMB527million,ayear-on-yearincreaseof44.42%.ThenetcashflowgeneratedfromoperatingactivitieswasRMB703million,ayear-on-yearincreaseof44.21%.

Unit:RMB’0,000

/

Businessdivision

Note:

ExplanationoftheGrossProfitMarginChange:OnDecember6,2024,theMinistryofFinanceissuedtheExplanationNo.18oftheAccountingStandardsforBusinessEnterprises,whichstipulatesthat,fromthedateofissuance,companiesshouldaccountforestimatedliabilitiesarisingfromqualityguaranteesthatdonotconstituteaseparateperformanceobligationunder“mainbusinesscosts”or“otherbusinesscosts”.Ifacompanyhaspreviouslyaccountedforsuchestimatedliabilitiesrelatedtoqualityguaranteesunder“salesexpenses”,itmustmakeretrospectiveadjustmentswhenfirstimplementingthisstandard.TheCompanyhasimplementedtheaboveregulationsand,in2024,includedtherelevantestimatedliabilitiesrelatedtoqualityguaranteeprovisionsinthemainbusinesscosts,makingretrospectiveadjustmentstotherelevantaccountingtreatmentforthe2023fiscalyear.This

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

retrospectiveadjustmenthasledtoachangeinthegrossprofitmarginfor2023usedinthe2024AnnualReportcomparedtothegrossprofitmargindatadisclosedinthe2023AnnualReport.Thischangeisduetotheexecutionofthenewaccountingpolicyandtheretrospectiveadjustmentofpreviousaccountingtreatment.TheCompanyhasuniformlycomparedthegrossprofitmarginsforthetwoyearsaccordingtothenewaccountingpolicy,moreaccuratelyreflectingthetrendintheCompany’sgrossprofitmarginchanges.(II)PerformanceofprincipaloperationsduringtheReportingPeriod

1.ThebusinessdivisionofintelligentpackagingequipmentIn2024,theCompany’sintelligentpackagingequipmentsegmentachievedtotaloperatingrevenueofRMB4,021million,whichremainedstablecomparedto2023.Thegrossprofitmarginincreasedby3.74percentagepointsyear-on-year,andtheoverallprofitabilityofthesegmentimprovedcomparedto2023.A.ThesegmentofcorrugatedcardboardproductionlinesIn2024,FosberGroup,asubsidiary,achievedtotaloperatingrevenueofRMB2,975million,representinga2%year-on-yearincrease.From2020to2024,FosberGroup’scompoundannualrevenuegrowthratewas12%,andthecompoundannualnetprofitgrowthratewas25%(theaboveoperatingrevenueandnetprofitfiguresarebasedonFosberGroup’sconsolidatedfinancialstatements).?StableOverallRevenue,StrengtheningtheEuropeanandAmericanMarketBase,ExpandingEmergingGrowthAreasInitscoremarkets(EuropeandNorthAmerica),FosberGrouphasmaintainedclosecooperationwithleadingcompaniesandlargeenterprisesinthecorrugatedpackagingindustryformanyyears,earningstrongcustomerrecognitionandbecomingalong-term,stablepartner.DespitemergersandacquisitionsamongmajorcorrugatedpackagingcompaniesinEuropeandNorthAmericain2024,whichslightlyslowedtheindustry’scapitalexpenditurepace,FosberGroupmaintainedstablerevenuegrowthin2024.Thisstabilitywasattributedtoitsexcellentreputation,solidmarketposition,andimprovementsinorderproductionanddeliverytimes(reducingfull-lineorderdeliveryfrom9monthsinthesecondhalfof2023toabout6monthsin2024).Inresponsetoslowergrowthincoremarkets,FosberactivelyexpandedintoemergingmarketssuchasLatinAmericaandAfrica,adding15newcustomersinthesemarkets;In2024,FosbercompletedtheestablishmentofFosberMexico,whichwillenabletheCompanytoofferhigher-qualityandmoreefficientservicestoLatinAmericancustomersstartingin2025.

FosberAsia,asubsidiary,leveragesindustry-leadingdomesticmid-to-high-endcorrugatedlineproductsandfocusesonregionalmarketsalesstrategies,providinghigh-qualitydomesticcorrugatedcardboardproductionlinestocustomersinChinaandSoutheastAsia.?UnlockingInternalGrowthPotential,SignificantProfitMarginImprovementIn2024,FosberGroupimplementedaseriesofcost-reductionandefficiency-improvementmeasurestooptimizecostcontrolthroughefficientoperations.Thesemeasuresincludedextensiveadoptionof“leanproduction”,furtherstreamlininginventory,implementingcollaborativeprocurement,enhancingsupplychain

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

responsiveness,andstrengtheningexpensecontrol.Additionally,thedeclineininflationintheEurozonesinceearly2024andthefallinrawmaterialandenergypricesprovidedafavorableexternalenvironmentforgrossmarginimprovement.DuringtheReportingPeriod,FosberAsialaunchednewproducts,includinga3-meterwidecorrugatedline,SF5Bbelt-typesinglefacer,andS/Line370wetendcorrugatedline.Thenewbelt-typesinglefacerusesgloballyleadingpatentedpressuredesigntoenhanceoperationalspeed.TheS/Line370wetendcorrugatedlinerealizesthelocalizeddevelopmentandmanufacturingofcorecorrugatorcomponents.FosberAsiacontinuedtoimproveoperationalefficiencyin2024,withthedeliverytimeforitscoreproduct,theS/Line,reducedfrom9monthsin2023toaround6monthsin2024,achievingamorethan20%improvementinefficiency;TheimplementationofTotalQualityManagement(TQM)improvedmaterialquality,inventoryturnover,andreducedperiodexpenses.In2024,theoverallgrossmarginandnetprofitmarginwerehigherthanthefive-yearaverage.Withboth“high-endtechnologicalbreakthroughs”and“domesticmanufacturingcostreduction”,FosberAsia’smarketcompetitivenesscontinuestostrengthen.?After-SalesandSparePartsBusinessBecomeKeyGrowthDriversTheafter-salesbusinessforcorrugatedlines(includingsparepartssalesandtechnicalsupport)isoneofFosberGroup’scorecompetitiveadvantagesintheindustrymarket.Overtheyears,FosberGrouphasprovidedexcellentsupportservicestoindustryclientsthroughleadingindustrialInternettechnologies,helpingcustomersenhanceproductivity.Amidtheglobalmacroeconomicslowdownandaslowdownincapitalexpenditures,somecustomershaveoptedtoextendthelifespanofexistingequipment,drivinggrowthindemandforsparepartsandmaintenanceservices.In2024,FosberGroup’safter-salesbusinessshareinoverallrevenueincreased.IntheNorthAmericanmarket,FosberUSAprovidescomprehensiveservicesthroughouttheentireprojectlifecycle,buildingdifferentiatedcompetitiveadvantages,becomingakeybarrierwithamarketshareexceeding50%inNorthAmerica.

Tiru?aGroup,asubsidiary,hasintensifiedeffortstoexpanditssparepartsbusinessforcorrugatedpackagingequipment.AsacoresupplierofcorrugatingrollsandpressurerollsforFosberbrandcorrugatedlines,Tiru?aGroupalsoprovideshigh-performancecorrugatingrollsandpressurerollstothird-partycustomersinEuropeandtheAmericas(includingothercorrugatedcardboardproductionlinesmanufacturersandcorrugatedpackagingmanufacturers).In2024,Tiru?aGroupachievedbothrevenueandordergrowth,markingitsfifthconsecutiveyearofrevenuegrowthsince2020.Theexpansionofthird-partycustomerbusinesswasparticularlysuccessful,enhancingitscompetitivenessintheEuropeanandAmericanindustrymarkets.WiththestableimplementationofTiru?aGroup’sbusinessplanandthedeepeningofleanproductionpractices,itsproductioncapacityhassteadilyincreased,andcost-reductionandefficiency-improvementresultsarevisible.In2024,Tiru?aGroup’snetprofitsawamorethan45%growth.

Tiru?aAsia,asubsidiaryresponsibleforthedomesticproductionofTiru?abrandcorrugatingrollsandpressurerolls,completedequipmentcommissioningandprocessverificationin2024atitsnewfactory.Itnowhasthecapacitytodelivermass-producedcorrugatingrollsandpressurerolls,whichwillbecomeanimportantpartofthedomesticcorrugatedpackagingequipmentsparepartsbusinessinthefuture.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

B.ThebusinessofcorrugatedboxprintingandpackagingproductionlinesIn2024,DongfangPrecision(China)achievedayear-on-yearrevenuegrowthof10.81%,withexportrevenueaccountingforapproximately83%oftotalrevenue(anincreaseof10percentagepointscomparedto2023).ThepenetrationofDongfangPrecisionbrandcorrugatedboxprintingequipmentintheinternationalmid-to-high-endmarketcontinuedtorise.Inthecontextofmanydomesticpeersexpandingoverseas,DongfangPrecisionhasstrengtheneditsadvantagesinmarketssuchasEuropeandNorthAmericathroughyearsofaccumulatedgoodwill,leadingtechnologylevels,excellentproductquality,andarobustsalesandservicesystem.In2024,theCompanyachieveditsfirstsaleofnewfixed-typefull-lineproductsintheEuropeanmarket.DuringtheReportingPeriod,DongfangPrecision(China)implementedjointvisitstooverseascustomersandstrengtheneditsoverseasafter-salessupportsystem,offeringacomprehensivesuiteofservicescoveringtheentireproductlifecycle,includingmachineequipment,spareparts,softwareupgrades,after-salessupport,andtraining,therebyconsolidatingandenhancingcustomerloyalty.DuringtheReportingPeriod,high-value-addedfull-lineequipmentbecamethecorerevenuesourceforDongfangPrecision(China).In2024,DongfangPrecision(China)launchedhigh-endfull-lineproductsintegratedwiththeInterlinkintelligentproductionmanagementsystemdevelopedbyDongfangDigicom,helpingindustryclientsimproveintelligentproductionmanagementlevelsandfurtherenhancingproductionlineproductivity.

The“SmartLogisticsSolution”achieveditsfirstten-million-levelproject.In2024,theCompany’sinvestmentandeffortsinthesmartlogisticssegmentwerevalidatedbythemarket,withtwosmartlogisticsprojectscompletedandacceptedwithintheyear.Thismarkedanewlevelofmarketcompetitiveness.DongfangPrecision’ssmartlogisticssolutioncoverstwomajorscenarios:rawpaperlogisticsandcardboardlogistics,integratingvariousadvancedtechnologies,includingautomationequipment,intelligentalgorithms,anddigitalmanagementplatforms.Ithelpsindustryclientsbuilddigitalfactories/workshops,achievingcostreduction,qualityimprovement,andefficiencyenhancementwhileupgradingtointelligentsystems.Thesmartlogisticssolutionalignsdeeplywiththecompany’soveralldevelopmentstrategyandisexpectedtobecomeakeycomponentinthefuturedevelopmentofthecorrugatedpackagingequipmentbusinesssegment.

Grossmargincontinuedtoimprove,withsupplychainoptimizationandcostcontroleffortsachievingdoubleeffects.DuringtheReportingPeriod,DongfangPrecision(China)achievedadecreaseincorecoststhroughdomesticsubstitutionandoptimizedprocurementmanagement.TheCompanyalsoimplementedrefinedproductionschedulingtoimproveinventoryturnoverandstrengthenedexpensecontrol,whicheffectivelyreducedtheperiodexpenseratio.Multiplecostreductionandefficiency-enhancementmeasuresledtosignificantimprovements.In2024,bothgrossmarginandnetprofitmarginreachedhigherlevelsthaninrecentyears.

C.Thebusinessofdigitalprinters

In2024,theholdingsubsidiaryWonderDigitalachievedoperatingrevenueofapproximatelyRMB186million,ayear-on-yearincreaseofabout20%.

LaunchofHigh-EndNewProducts,EnteringtheHigh-DefinitionColorPrintingMarket:In2024,WonerDigitalgloballylaunchedtheWONDERINNOPROindustrial-gradehigh-definitionprinterwithabenchmark

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

accuracyof1800npi.Thisproductisdesignedforthecolorprintingpackagingsectorandusesnewtechnologytoenhanceprintingprecisionandcolorreproduction.Itcanachievehighspeed,highprecision,andexcellentimagequality,offeringahigh-definitioncolordigitalprintingdevicethatrivalstheeffectsofoffsetprinting.Additionally,WonderDigitallaunchedtheWD250PRINTMASTERwide-formatdigitalinkjetprinter,whichcaterstohigh-endcolorprintingoncardboardandcoatedpaper,aswellasyellowandwhitekraftpaperprinting.ImprovementinRevenueStructure:In2024,WonderDigitallaunchedtheupgraded“All-in-OneDigitalPrintingMachine.”Withitsinnovative“dual-modeintegratedtechnology”,itmeetsthediverseprintingneedsofdifferentsizesandhelpscustomersreducecostsandimproveefficiency.Thisproductquicklygainedpopularityinthedomesticmarketandbecameasaleshit.Thesalesofink,consumables,accessories,andservicesgrewbyover40%,andthematchingeffectofthemachinesbecamemoreapparent.Thevolumeofhigh-endcolorprintingproductsgraduallyincreased,helpingtoenhanceWonderDigital’srevenuescaleandgrossmarginlevels.OptimizationofProductionManufacturingandSupplyChainManagement:In2024,WonderDigitalmadesignificanteffortstooptimizeitsproductionprocesses,improveproductstandardizeddesign,andimplementmaterialclassificationmanagement.Asaresult,inventoryturnoversignificantlyimproved,obsoleteinventorycontinuedtodecrease,andtheefficiencyofmachineequipmentorderdeliverywasnotablyenhanced.Throughsupplychaincollaborationoptimization,theprocurementcostofkeycomponentssuchasprintheadswasreduced.

TheCompanyachievedaperiodexpenseratiolowerthantheaveragelevelofthepastthreeyears(sinceWonderDigitalwasincludedinDongfangPrecision’sconsolidatedfinancialstatementsin2022).Throughthesemeasures,WonderDigital'snetprofitreturnedtoagrowthtrendin2024.

2.Thebusinessdivisionofwaterpowersportsequipment

In2024,theholdingsubsidiaryParsunPowerachievedoperatingrevenueofapproximatelyRMB757million,ayear-on-yearincreaseofabout2.7%.

BreakingintotheHigh-EndOutboardMotorMarket,Domestic300-HorsepowerModelLaunchesStrongly:

ParsunPowersuccessfullylauncheditsfirstdomesticallyproduced300-horsepowergasolineoutboardmotor,whichhasbeencertifiedbytheChinaClassificationSociety(CCS)andtheEuropeanCEcertification.Thisproducthasachievedindependentcontrolovercoretechnologiesandthesupplychain,withitscoreperformancereachinginternationaladvancedlevels.

Thereleaseofthisproductbreaksthelong-standingmonopolyofbrandslikeYamahaandMercuryinthehigh-powersegment,fillingthegapinthedomesticmarketforhigh-horsepowergasolineoutboardmotors.The300-horsepoweroutboardmotorbelongstothehigh-powersegmentandcoversawiderangeofapplications,includingleisure,commercial,andprofessionalusessuchasseafishing,surfing,offshorecruising,fishing,watertransport,maritimelawenforcementpatrols,andsearescue.Itstechnicalpositioningisattheforefrontoftheoutboardmotorindustry,applyingadvancedtechnologiessuchasfour-strokeengines,electronicfuelinjection(EFI),lightweightmaterials,andintegratedelectroniccontrolsystems.Thisproductrepresentshigh-end,high-value-addedproductsintheglobaloutboardmotormarket.

AsaChinesemanufacturer,ParsunPower’sbreakthroughinthelarge-horsepowermodelallowsittodirectlytargethigh-valuemarkets,competinggloballywiththecoreadvantagesofChinesemanufacturing.ParsunPower

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

ispoisedtobecomeoneofthecorecompetitorsintheglobalhigh-endoutboardmotormarket,layingthefoundationforitsentryintotheglobalhigh-endleisureyachtmarketandbecomingakeydriveroffuturerevenuegrowth.

R&DandCapacitySynergyLayout:ParsunPowercontinuestodeepenits“gasoline+electric+diesel”full-tracklayout,advancingthedevelopmentofelectricanddieselmodels;Thecompanyisfocusingonexpandingitsproductlayoutincorewaterleisurescenarios,initiatingnewprojectslikethetop-tierenginedevelopment;Asoftheendof2024,ParsunPowerhasaccumulated114intellectualpropertyrights.Intermsofproductioncapacity,ParsunPower’sintelligentnewfactoryconstructionprojectcompleteditsmainengineeringconstructionin2024,withtrialproductionexpectedin2025,whichwillsignificantlyincreaseitsproductioncapacity.“SupplyChainOptimization+ExpenseControl,”AchievingSimultaneousImprovementinQualityandEfficiency:In2024,ParsunPowerstrengtheneditseffortstoimprovequality,reducecosts,andincreaseefficiency.Itoptimizedprocurementmanagementandimprovedinventoryturnover,resultinginoverallcostreductionswhileenhancingthequalityofitsfuel-poweredmodels;Thecompanyalsostrengthenedexpensecontrol,achievingayear-on-yeardecreaseintheperiodexpenseratio.(III)Analysisofkeyfinancialindicators

1.RevenueandCostAnalysis

(1)BreakdownofOperatingRevenue

Unit:RMB

/

2024

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

productsandgeneralmachines

(2)OperatingDivision,ProductCategoryorOperatingSegmentContributingover10%ofOperatingRevenueorOperatingProfit

√Applicable□Notapplicable

Unit:RMB

UnderthecircumstancesthatthestatisticalcaliberoftheCompany'smainbusinessdataisadjustedintheReportingPeriod,the

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Company'smainbusinessdatathatadjustedaccordingtothecaliberattheendoftheReportingPeriod

□Applicable√Notapplicable

(3)WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue

√Yes□No

/

Operatingdivision

Corrugatedboxprintingandpackagingproductionlineequipment

Waterpowersportsproductsandgeneralmachines

Anyover30%YoYmovementsinthedataaboveandwhy:

√Applicable□NotapplicableTheover30%YoYdecreasesintheinventoryofwaterpowersportsproductsandgeneralmachinesareprimarilydrivenbythecentralizedshipmentattheendof2024.

(4)ExecutionProgressofMajorSignedSalesContractsintheReportingPeriod

□Applicable√Notapplicable

(5)BreakdownofCostofSales

Unit:RMB

Unit:RMB

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

category

(6)ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod

□Yes√No

(7)MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod

□Applicable√Notapplicable

(8)MajorCustomersandSuppliers

Majorcustomers:

Topfivecustomers:

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Otherinformationaboutmajorcustomers:

□Applicable√NotapplicableMajorsuppliers:

/

Totalpurchasesfromtopfivesuppliers(RMB)

Topfivesuppliers:

Otherinformationaboutmajorsuppliers:

□Applicable√Notapplicable

2.Expenses

Unit:RMB

3.R&DInvestments

√Applicable□Notapplicable

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

productionline

DetailsaboutR&Dpersonnel:

DetailsaboutR&Dinvestments:

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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2024

ReasonsforanysignificantchangetothecompositionofR&Dpersonnelandtheimpact:

□Applicable√NotapplicableReasonsforanysignificantYoYchangeinthepercentageofR&Dinvestmentsinoperatingrevenue:

□Applicable√NotapplicableReasonforanysharpvariationinthepercentageofcapitalizedR&Dinvestmentsandrationale:

√Applicable□NotapplicableMainlyduetothecompletionofR&Dforcapitalizedprojects.

4.CashFlows

Unit:RMB

Explanationofwhyanyofthedataabovevariessignificantlyonayear-on-yearbasis:

√Applicable□Notapplicable

(1)NetcashgeneratedfromoperatingactivitieswasRMB702.5554million,primarilydrivenbythedecreaseincashexpendituresarisingfromoperatingactivitiesduringthisreportingperiod.

(2)NetcashusedininvestingactivitieswasRMB541.5014million,primarilydrivenbythecompanycarriedoutfinancialasset

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

investmentsduringthisreportingperiod.

(3)NetcashgeneratedfromfinancingactivitieswasRMB155.3505million,primarilydrivenbythecompany'srepaymentofloansduringthisreportingperiod.

(4)NetincreaseincashandcashequivalentswasRMB20.2241million,primarilydrivenbythecashflowfromfinancingactivitieswasinanoutflowstateduringthisreportingperiod.Explanationofwhythenetcashgeneratedfrom/usedinoperatingactivitiesvariessignificantlyfromthenetprofitoftheReportingPeriod:

□Applicable√Notapplicable

VAnalysisofNon-CoreBusinesses

√Applicable□Notapplicable

Unit:RMB

/

Amount

VIAnalysisofAssetsandLiabilities

1.SignificantChangesinAssetComposition

Unit:RMB

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

Cashandbankbalances

OverseasassetsthattakeupalargepercentageoftheCompany’snetassetvalue:

√Applicable□Notapplicable

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

Asset

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

2.AssetsandLiabilitiesatFairValue

√Applicable□Notapplicable

Unit:RMB

/

Item

Particularsaboutotherchanges:Otherchangesaremainlyexchangemovements.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

IndicatewhetheranysignificantchangeoccurredtothemeasurementattributesofthemajorassetsintheReportingPeriod.□Yes√No

3.AssetstowhichtheCompany’sRightsWereRestrictedasatthePeriod-End

Unit:RMB

/

Item

VIIInvestmentsMade

1.TotalInvestmentAmount

√Applicable□Notapplicable

2.SignificantEquityInvestmentsAcquiredintheReportingPeriod

□Applicable√Notapplicable

3.SignificantNon-EquityInvestmentsofwhichtheAcquisitionWasUncompletedintheReportingPeriod

□Applicable√Notapplicable

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

4.FinancialInvestments

(1)SecuritiesInvestments

√Applicable□Notapplicable

Unit:RMB

/

Securitytype

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

trading

(2)InvestmentsinDerivativeFinancialInstruments

√Applicable□Notapplicable

1)DerivativeInvestmentsforHedgingPurposesintheReportingPeriod

√Applicable□Notapplicable

Unit:RMB'0,000

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

significantchangesinaccountingpoliciesandspecificfinancialaccountingprinciplesinrespectoftheCompany'shedgesfortheReportingPeriodascomparedtothepriorreportingperiod

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

announcementabouttheboard’sconsentforthederivativeinvestment(ifany)

2)DerivativeInvestmentsforSpeculativePurposesintheReportingPeriod

√Applicable□Notapplicable

Unit:RMB'0,000

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

(Includingbutnotlimitedtomarketrisk,liquidityrisk,creditrisk,operationalrisk,legalrisk,etc.)

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

used,andrelevantassumptionandparametersettingsshallbedisclosedforanalysisoffairvalueofderivatives

5.UseofRaisedFunds

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

VIIISaleofMajorAssetsandEquityInvestments

1.SaleofMajorAssets

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

2.SaleofMajorEquityInvestments

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IXPrincipalSubsidiariesandJointStockCompanies

√Applicable□NotapplicablePrincipalsubsidiariesandjointstockcompanieswithanover10%effectontheconsolidatednetprofit:

Unit:RMB

/

Name

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

/

shareholderofParsunPower.

XStructuredBodiesControlledbytheCompany

√Applicable□Notapplicable

1.InMarch2021,theCompanyestablishedTianjinHangchuangZhijinInvestmentPartnership(LimitedPartnership)(the"TianjinHangchuangFund"orthe"Partnership")withAVICInnovationCapitalManagementCo.,Ltd.TheCompany,asthesoleLPoftheFund,subscribedforthePartnership'scontributionshareofRMB20,000,000.TheFundisaspecialfundwhichistoinvestintheequityofSichuanDajinStainlessSteelCo.,Ltd.(nowrenamedasChengduDajinAero-TechCo.,Ltd.).ThisinvestmentisinlinewiththeCompany’sdevelopmentstrategyconsideringtheFund’sinvestmentdirection,decision-making,management,incomedistribution,lossallocation,etc.Fromtheperspectiveofbusinessnature,theCompanyprovidesmuchofthecapitaloftheTianjinHangchuangFund,soitisreasonabletoincludetheFundintheCompany’sconsolidatedfinancialstatementsoftheReportingPeriod.

2.InMarch2022,thewhollyownedsubsidiaryYinengInvestmentindirectlyinvestedinBeijingSinoscienceFullcryoTechnologyCo.,Ltd.(referredtoas"Fullcryo"inthisReport)andSinoscienceFullcryo(Zhongshan)EquipmentManufacturingCo.,Ltd.bymakingacapitalcontributiontoalimitedpartnershipandobtainednon-controllinginterestsofthetwocompanies.Asoneofthelimitedpartnersofthepartnership,YinengInvestmentaccountsfor94.86%ofthetotalcapitalcontributions.Consideringthepartnership'sagreementsoninvestmentorientation,investmentdecisions,operationandmanagement,incomeapportionment,andlossbearing,andthefactthatYinengInvestmentaccountsforthemajorityofthecapitalcontributionstothepartnership,thepartnershipisincludedintheconsolidatedstatementsofDongfangPrecisionasa"structuredbodycontrolledbytheCompany"fromtheperspectiveofcommercialsubstanceandaftercomplyingwiththeAccountingStandardforBusinessEnterprisesandreferringtotheprofessionalopinionsoftheindependentauditor.

XIProspects

(I)TheCompany'sdevelopmentstrategy

1.CompanyvisionBusinesspurposesoftheCompany:Tobecomeanindustrialgroupwithhighinfluenceinitsareas,trustfromcustomersandshareholders,andrespectfromemployees;upholdthebusinessphilosophiesof"Integrity,InnovationandExcellence",andachievemutualbenefitswithcustomers,shareholders,employeesandthesociety.

2.CorporatestrategyIn2022,theCompanycompleteditsstrategicplanforthethirdfive-yearperiod(2018-2022).Lookingbackatthepastfiveyears,theCompanyachieved100.1%ofitsstrategicobjectivesofoperatingrevenueand96.9%of

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

itsstrategicobjectivesofnetprofit.Tobespecific,theCompany'sannualoperatingrevenue(excludingtheimpactofPride)hasexpandedfromRMB2,377millionin2018toRMB3,893millionin2022,representingacompoundannualgrowthrateofapproximately13.13%,anditsannualnetprofit(excludingtheimpactofPride)hasincreasedfromRMB209millionin2018toRMB484millionin2022,withacompoundannualgrowthrateofapproximately23.24%.TheseresultsdemonstratethestrongcapabilitiesoftheCompany’smanagementteaminscientificdecision-makingandstrategicplanning,aswellasthecompetenceofefficientstrategicexecutionandrealizationofallstaffoftheCompany.ThesecapabilitiesareasolidfoundationfortheCompany'ssoundandsustainablegrowthinthefuture.Currently,theCompanyhasformulateditsstrategicplanforthefourthfive-yearperiod(2023-2027).Duringtheperiodfrom2023to2027,theCompanywilladheretothestrategyof"awealthoftalent"and"culturalguidance"asthesolidsupport,andpromotethefivestrategiesof"businessconcentration","extendedinvestment","globalization","digitalization"and"collaboration",underthecoordinationoftheendogenouscapabilitiesandextensionexpansionbythe"1+N"developmentmodel,toachievethegoalof"tobecomeanindustrialgroupwithhighinfluenceinitsareas,trustfromcustomersandshareholders,andrespectfromemployees"..

TheCompany'sstrategicplanforthefourthfive-yearperiod(2023-2027)

Detailsareasfollows:

?Businessconcentrationstrategy:Focusonthecoremainbusinessof"high-endintelligentequipment",

targetthedualmainaxesof"intelligentpackagingequipment"and"marinepowerequipment",positionthe"marinepowerequipment"businessasakeyfirstlevelofthecoremainbusiness,continuouslyoptimizetheinternaldrivingforce,buildaleaderindomestichigh-endoutboardmotorsandastrongcompetitorintheglobaloutboardmotormarket,andcreatehardcorecompetitivenessinthefieldofhigh-endintelligentequipment.

/

Tobecomeanindustrialgroup

with

"1+N"developmentmodel

"1+N"developmentmodel

Businessconcentrationstrategy

Businessconcentration

strategy

Focuson

"integrated

corrugated

packagingsolutions",carryonwiththespin-off

listingofthebusinessof"water

powersportsequipment",and

continuouslyoptimizecapitaloperation

Focuson

"integrated

corrugatedpackagingsolutions",carryonwiththespin-off

listingofthebusinessof"water

powersportsequipment",and

continuouslyoptimizecapitaloperation

Extended

investment

strategy

Extended

investment

strategy

Followtheguidance

oftheGroup'sstrategicplan,seekbusinesssynergies,explorenewbusiness

opportunities,andfacilitatetheGroup'srobustdevelopmentwiththeprincipalbusinessesasthecore

andextended

investmentasthesupport

Followtheguidance

oftheGroup's

strategicplan,seek

businesssynergies,explorenewbusiness

opportunities,andfacilitatetheGroup's

robustdevelopment

withtheprincipalbusinessesasthecore

andextended

investmentasthesupport

Globalization

Digitalization

Collaboration

Collaboration

Realizeclose

collaborationamongallbusinessdivisionsbygivingplaytotheGroup

Headquarters’

functions

Realizeclose

collaborationamongallbusinessdivisionsbygivingplaytotheGroup

Headquarters’

functions

"AwealthofTalent"×"CulturalGuidance"

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

?Globalizationstrategy:Committedtotheglobalizationofthemarketingnetwork,managementandoperationandthebusinessportfolio.?Digitalizationstrategy:Internally,continuetoenhancetheITsystemtoimprovemanagementeffectivenessandsupporttheimprovementofoperationalefficiency;externally,builddigitalfactoriesasabenchmarkintheequipmentmanufacturingindustry,providemodulardigitalfactorysolutions,andfacilitatethedigitaltransformationoftheindustrialchain.?Collaborationstrategy:Acceleratethebuildingofathree-tiergroupoperationstructureof"Group

Headquarters+BusinessDivisions+ProfitGeneratingUnits",realizeclosecollaborationamongallbusinessdivisionsbygivingplaytotheGroupHeadquarters’functions,aswellasstrengthentheorganizingabilityandthecollaborationmechanismforgroupoperation?Awealthoftalentstrategy:Enhancecross-cultureleadership,optimizethetalentmanagementsystem,buildanexcellentmanagementteam,etc.?Culturalguidancestrategy:EstablishcommongoalsandvaluesfortheGroup,buildtheGroupasaninternationalfamily,andleadtheGroupandsubsidiariestowardscommongrowth.?“1+N”DevelopmentModelandExternalExpansionStrategy:

Whilefocusingonthetwocorebusinesssegments,theCompanyplaceshighimportanceonexternalexpansionthroughequityinvestments.Adheringtotheprincipleof“theprincipalbusinessesasthecore+extendedinvestmentasthesupport”,theCompanyleadsandcoordinates“organicgrowth+externalexpansion”withthe“1+N”developmentmodel.

“1”referstofocusingonthecorebusinessesofhigh-endintelligentequipmentmanufacturing(corrugatedpackagingequipment+waterpowersportsequipment),firmlyestablishingitsfoundationalposition,continuouslystrengtheningandexpanding,andenhancingcorecompetitivenesstomaintainandincreasemarketshareamidstthetrendsofdigitalizationandintelligence.

“N”referstoexternalexpansion,whichcanincludethefollowingthreeaspects:

1.DeepeningChainExtension:MergersandAcquisitionsSynergy,StrengtheningCoreMoat

BuildingontheadvantagesofDongfangPrecision'smainbusiness,theCompanyfocusesonacquiringhigh-qualitycompanieswithinthesameindustrychainglobally.Byverticallyintegratingthesupplychain,itimplementsprecisemergersandacquisitionsofhigh-qualitytargetsinrelatedfields.Aftertheacquisition,theCompanyperformsdeepintegration,outputskeycapabilities,andstimulatesinternalindustrychainsynergiestofurtherstrengthenitscorebusinesses.In2022,withthefullcoverageandpenetrationofe-commerce,theCompanykeenlyrecognizedthetechnologicalinnovationsinthepackagingindustryafterconductingthoroughmarketresearch.Therapidresponseandflexibleproductionschedulingofdigitalprintingperfectlymatchedtheneedsforpersonalizedandflexibleproductionine-commercefast-movingconsumergoodspackaging.Asaresult,theCompanyacquiredWonderDigitalearlyin2022,effectivelyexpandingitscoreproductlinesandfurtherenhancingDongfangPrecision’spositioninthepackagingequipmentsector,openingupspaceforthecontinuedexpansionofitscorebusinesses.

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

2.BreakingBoundariesforEcologicalCo-Creation:StrategicInvestmentandCo-CreationofStrategicEmergingIndustry“NewProductivePowerClusters”Steppingbeyondtraditionalboundariesandcloselyfollowingthenationalstrategyofdevelopingnewproductiveforces,theCompanywillemployacluster-basedstrategicinvestmentapproachtodeeplyintegrateintotheentireindustrychainofnewproductiveforces.Specifically,theCompanyplanstoinvestinareassuchasembodiedintelligence,robotics,andcommercialaerospace,formingacomprehensiveindustrychaininvestmentlayoutinthesekeyareas.Inthe2025governmentworkreport,Chinawillinclude“embodiedintelligence”and“intelligentrobots”askeyareasfornurturingfutureindustries,markingnewopportunitiesforintelligentupgradesinChinesemanufacturing.Asaleadingenterpriseinthehigh-endequipmentmanufacturingsector,theCompanywillalignitselfwithnationalstrategicguidance,deepenitsindustriallayoutinroboticsandembodiedintelligence,andbuilda“softandhardintegrated”intelligentindustrialecosystemthroughtechnologicalbreakthroughs,sceneimplementation,andecologicalcollaborationtocreateatruenewproductivepowerindustrycluster.TheCompanywillalsocontinuetoleverageitsadvantageinhigh-endequipmentmanufacturing,utilizingitsdeepengineeringcapabilitiesaccumulatedintraditionalhigh-endequipmentmanufacturingtocollaborateactivelywithinvestedenterprises.Withinitsreach,theCompanywillacceleratetheapplicationofartificialintelligenceandrelatedproductsintheinvestedenterprises,trulypracticingthe“strategicinvestment+industrycollaboration”investmentlogicandrealizingcooperationandwin-winresultsacrosstheentireindustrychain.Inrecentyears,theCompanyhasmadeinitialinvestmentsintheintelligentroboticssector,suchasinJatenRobotandRuoyuTechnology.JatenRobotisoneofthetoptendomesticandagloballeaderinintelligentindustrialrobotsandsmartlogisticssystems.Overthepasttwodecades,ithasaccumulatedawealthofindustryKnow-how;RuoyuTechnologyfocusesontheindustrializationofmultimodallargemodelsinembodiedintelligenceforrobots.Itnotonlyprovidesrobotswithanext-generationmultimodalsmartbrainbutalsoendowsrobotswithhigher-dimensionalautonomousreasoningabilitiesandbroadertaskgeneralizationcapabilities.Inresponsetothenewwaveoftechnologicalrevolutionandindustrialtransformation,theCompanyrecognizestheneedtoseizeopportunities,increaseinnovationefforts,nurtureemergingindustries,andacceleratethedevelopmentofnewproductiveforces.Throughin-depthcooperationwithRuoyuTechnologyandthestrongacademicfoundationofHarbinInstituteofTechnology(Shenzhen),theCompanycanprovidemoreexplorationofapplicationscenariosforRuoyuTechnology’slargemodels.Atthesametime,theCompanyexpectstoleverageRuoyuTechnology’sAIcapabilitiestobetterachievebreakthroughsindigitalizationandintelligence,ensuringtheCompany’shigh-qualitydevelopment.

3.PositioningonKeyCoreTracks:Forward-lookingInvestmenttoBuildFutureCompetitiveness

Underthenational“14thFive-YearPlan”strategicguidance,thesubsidiaryYinengInvestmentcontinuestofocusonDongfangPrecision’sfourthFive-Yeardevelopmentplananddeepenitsstrategiclayoutinemergingindustries.TheCompanyfocusesonhard-techfieldswithsignificanttechnologicalbarriersandnationalstrategicvalue,suchasartificialintelligence+,aerospacetechnology,andnewmaterials,tobuildcorecompetitivenessthroughforward-lookingindustrialinvestments.Inrecentyears,YinengInvestmenthasinvestedintheaerospacesector,includingSichuanTengdunUAVandCASICRocket,completingitslayoutinaerospacetechnology.Inthenewmaterialssector,YinengInvestmenthasinvestedinYunnanYuzeSemiconductorandGuizhou

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

AerospaceXinli,targetingkeytechnologicalareasinphotovoltaicsemiconductorsandcontrollednuclearfusionstructuralmaterialstosecuretechnologicalleadership.Goingforward,YinengInvestmentwillcontinuetofocusonnationalstrategicneedsandinvestinembodiedintelligenceandrobotics-relatedindustries.Itwillcontinuetoexplorevaluegapsintheindustrialchain,nurturegloballycompetitiveleadingtechnologycompanies,andprovidetechnologicalreservesandindustrialsupportfortheCompany’shigh-qualitydevelopment.(II)TheCompany'smainbusinessplanfor2025

1.Newcapacitytobegraduallyreleased,empoweringperformancegrowthA.FosberGroup’sNewEuropeanHeadquartersProjectIn2024,FosberGroupofficiallylaunchedthenewEuropeanheadquartersproject,withabuildingareaofapproximately35,000to40,000squaremeters.Uponcompletion,itwillintegrateexistingcapacitiesandformtheheadquartersforFosberGroup’sEuropeanmanufacturingbase,withatotalplannedinvestmentofoverEUR40million.Theprojectisexpectedtobecompletedbytheendof2026.ThisprojectisasignificantinvestmentbyDongfangPrecisionaimedatsteadygrowthandsustainabledevelopment.Oncecompleted,itwillfurthersolidifyFosberGroup’scorepositioninthecorrugatedpackagingequipmentmanufacturingindustry.

B.FosberAsia’sIntelligentCorrugatedcardboardproductionlinesFactoryConstructionProjectFosberAsia’snewintelligentcorrugatedcardboardproductionlinesfactoryislocatedinSongxiaIndustrialPark,NanhaiDistrict,FoshanCity,GuangdongProvince,coveringanareaofapproximately80acres.WithaplannedinvestmentofRMB500million,theprojectwillprimarilyserveastheresearch,development,production,andservicebasefordomestichigh-endcorrugatedboardproductionequipment.Afterthenewfactoryiscompleted,FosberAsia'sproductioncapacitywillincreasemorethantwofold.Thenewfactorypassedallgovernmentjointinspectionsinearly2025andisexpectedtobeputintouselaterintheyear.

C.Tiru?a’sCorrugatingRollandPressureRollProductionBaseProjectTiru?a’scorrugatingrollandpressurerollproductionbaseislocatedinNanhaiDistrict,FoshanCity,GuangdongProvince,covering30acres,withaplannedtotalinvestmentofoverRMB100million.ThisbasefullyleveragesChina’smanufacturingadvantagesgloballytoachievethelocalizationofcorecomponents(corrugatingrollsandpressurerolls)forTiru?abrandcorrugatedcardboardproductionlines.ItwillsupplycorrugatingrollsandpressurerollstobothinternalcustomersofDongfangPrecision’scorrugatedpackagingequipmentbusinessandthird-partyexternalcustomers,expandingTiru?a’smarketinChinaandAsia.Thisproductionbasewasputintooperationin2024,andTiru?aAsiahasalreadyachievedmassproductionofthefirstbatchofcorrugatingrollsandpressurerolls.

D.ParsunPower’sDigitalizedFactoryConstructionProjectParsunPower’sdigitalizedfactoryprojectislocatedinSuzhou,JiangsuProvince.Theinfrastructurewascompletedin2024,andthesiteisreadyforacceptanceandproductionlineinstallation.Afterthecompletionofremainingconstructionworkonthefactoryandofficebuildingsin2025,itwillbeoperational.ThecompletionofthisprojectwilllayasolidfoundationforParsunPower’sfuturedevelopment.

2.Smartcorrugatedpackagingequipmentbusiness:enhancingindustrialsynergiesanduncoveringgrowthpotential

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

Thecorebusinessofsmartcorrugatedpackagingequipmentcoversallmajorkeylinksinthecorrugatedpackagingproductionandprocessingvaluechain.Withacompleteindustrialchainlayoutandmanysimilaritiesandsynergiesinproducttechnology,salesnetworks,andsupplychainsacrossdifferentbusinesssegments,theCompanyprovidesexcellentconditionsfordeeperintegrationandresourcesharingamongvariousbusinessunits.TheinternalcollaborationbetweenFosberbrandcorrugatedline,Quantumbrandcorrugatedline,andFosberAsia’sdomesticallyproducedmid-to-high-endcorrugatedlinecontinuestodeepen,improvingsynergiesinR&D,design,productionmanufacturing,andsupplychainsharing.FosberAsia,aspartofthedomesticbusinessunit,implementsthe“goglobal,bringin”strategy,introducingindustry-leadinghigh-endintelligentcorrugatedlineproductsfromFosberGroupintoChinaandupgradingthemaccordingtomarketneedsinChinaandAsia.Thishassuccessfullyachievedthelocalizationofseveralhigh-endpiecesofequipment,effectivelyenhancingmarketcompetitiveness.

DongfangPrecision(China)andDongfangPrecision(Europe)’scorrugatedboxprintingandpackagingbusinesscontinuestodeepencollaborationinR&Ddesign,manufacturing,andsupplychaincoordination.Tiru?aAsia'sdomesticproductionbaseforcorrugatingrollsandpressurerollswascompletedandoperationalin2024.TheCompanynowhasbothoverseasanddomesticproductionbasesforcorrugatingrolls,withcollaborationbetweentheoverseasanddomesticcorrugatingrollbusinessescontinuingtodeepen.

In2024,theCompanypromoteddeepercollaborationamongitsdomesticandoverseasbusinessunitsinsupplychain,productionmanufacturing,andsalesnetworks,achievingresourcesharing,complementingadvantages,andimprovingoveralloperationalefficiency.Thishasledtoasignificantincreaseinthegrossmarginandnetprofitmarginofthe“corrugatedpackagingequipment”businesssegment,alongwithanoticeablereductioninoverallexpenseratios.Inthefuture,theCompanywillcontinuetodigdeeperintointernalgrowthpotential,improvingprocessmanagementinmajorvaluechainsegmentstocontinuouslyenhancequalityandefficiency,optimizingmanagementtoreducecosts,andfurtherreleasinginternalprofitgrowthpotential.

3.Waterpowersportsequipmentbusiness:breakingintoglobalmarkets,improvingR&Dandcapacity

ParsunPower,aholdingsubsidiary,focusesonmarketexpansion,productR&D,andcapacityconstructiontoenhanceitscorecompetitivenessintheglobaloutboardmotormarket.Onthemarketexpansionfront,thecompanyissimultaneouslystrengtheningitspenetrationinmainstreammarketsinEuropeandNorthAmerica,aswellasemergingregions.Itisboostingthepenetrationofitsmid-to-high-powerandelectricproductsinmaturemarketsinEuropeandNorthAmerica,whilealsoexpandingintoemergingmarketsinAfricaandAsia.Bybuildinga“distributor+directsales”salessystem,optimizingproductlayoutandpositioning,andusingadifferentiatedstrategytocompetewithleadingbrandsindifferentmarkets,thecompanyisbuildingstrongafter-salesservicecapabilities.Thiswillhelpachievethestrategicgoalofbecomingaleadingbrandintheglobaloutboardmotormarket.IntermsofproductR&D,thecompanyisestablishingasolidmoatbyfocusingonboth“traditional+electric”technologies,horizontallyexpandingtheproductlinewithbreakthroughsinhigh-powerfuelenginemodels,andverticallylayingoutproductsthroughbreakthroughsinelectricmodels.Itisstrengtheningcoretechnologyin-houseapplicationsandimprovingproducttechnologypremiums.Thenewfactorywilldrivethemassproductionofallproductcategories,andtheeconomiesofscalewillsupportleapfrog

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

growth.Afterthenewfactoryisputintoproductionin2025,ParsunPowerwillfocusonmid-to-high-powerandelectricproducts,applyingadvancedproductionmanagementmodelsandintelligentmanufacturingtechnologiestocreatecoreprocessesandimproveefficiency.ThenewfactorywillprovideasolidfoundationforParsunPower’sexpansionintheglobalwaterpowersportsequipmentmarketandproductlineextension.

4.Digitalprinterbusiness:expandingnewapplicationscenariosandoptimizingproductstructureIntermsofapplicationscenarios,WonderDigital,asubsidiary,launchednewproductsin2024aimedatthehigh-definitioncolorprintingsector.Thedownstreamapplicationscenariosofdigitalprinterhavefurtherexpanded,openingupmoredevelopmentspaceforitscorebusiness.Intermsofproductstructure,WonderDigitaloptimizeditsproductstructurein2024byincreasingresourceinvestmentinhigh-enddigitalprinterlineproductswhilealsostrengtheningitsinkandconsumablesbusiness.In2025,WonderDigitalwillfurtherincreasetheproportionofhigh-endequipmentproductsandinkconsumables,thusimprovingitsrevenuestructure.Thecompanywillcontinuetostrengthenitsmarketexpansioninthehigh-definitioncolorprintingfield,whilealsooptimizingsalesmodelsandafter-salesservicestofurtherincreasemarketshare.

5.Deepeningexplorationof“AI+SmartFactories”DongfangDigicom,asubsidiary,empowersthedomesticlargepackagingindustryandaimstohelpcustomersachievefull-processdatavisualizationandAI-drivendecision-makinginproduction.

DongfangDigicomhasstartedtointroduceAItechnologyintothedigitalfactoryfieldofthepackagingindustry.Thecompanyisattemptingbreakthroughsinthe“AI+”areaofthepackagingindustrybyembeddingitsaccumulatedindustryknow-howandhigh-qualityproductionlinecapabilitiesintoitsequipmentviaedge-sideAIdeployment.Itwillalsoprovidecustomerswithacompleteintelligentfactorydeploymentsolution,enhancingproductivityandvalueforindustryclients.Inthefuture,DongfangDigicomwillcollaboratewithRuoyuTechnologyandJatenRobottoexploretheapplicationmodesofcutting-edgetechnologiessuchasAI+roboticsinthesmartfactoryfield.Thecompanywillofferaone-stopservicefromdatacollectionandintegrationofconnecteddevicestodataanalysisandsmartapplications,helpingcustomersachieveintelligentmanufacturing.

Withitsflexiblebusinessmodel,DongfangDigicomstrengthenscollaborationwithDongfangPrecision’scorrugatedpackagingequipmentbusinessunit.ItprovidesindustrialInternetplatforms,customizedsystemsoftware,anddigitalandAIupgradesolutionsforthepackagingindustry.ThecompanywillcontinuetoincreaseitsR&Dinvestmentinthisfield,leadingtheindustry’sintelligenttransformation,trulyenablingthepackagingindustrywithAI+,andbecomingasupportivepartnerinthecustomers’developmentpath,growingtogetherwiththem.

(III)Possiblerisksandcountermeasures

1.Risksarisingfromfluctuationsinexchangerates

ThemainsettlementcurrencyandrecordingcurrencyofFosberGroup,theprincipaloverseasbusinessentityoftheCompany,areeuros,whiletherevenueofFosberAmericaanddomesticentitiesfromexportismainlysettledwiththeUSdollar.FluctuationsintheUSdollarandeuroexchangeratesdonotsignificantlyimpacttheroutineoperationofoverseasbusinessentitiesbutexertcertainimpactsonthepresentationoftheirassetsandoperatingresultsintheconsolidatedfinancialstatements.

GuangdongDongfangPrecisionScience&TechnologyCo.,LtdAnnualReport2024

In2024,theRMBexchangerateexhibiteda“risefirst,thenfall”curve.Factorssuchasdomesticmacroeconomicconditionsandpolicies,changesintheFederalReserve’sinterestratecutexpectations,globalgeopoliticalandtradesituationchanges,centralbankmonetarypolicychanges,internationalbalanceofpayments,inflationrates,andinterestlevelscanallaffecttheRMBexchangerate.Underthecomprehensiveinfluenceofmultiplecomplexfactors,thevolatilityoftheRMBforeignexchangemarkethassignificantlyincreased.

Countermeasures:

TheCompanycancloselytracktheglobalfinancialmarketandnationalexchangeratepolicies,maketimelydecisionstoselectproperexchangeratemanagementtoolstomanageexchangeraterisksactively.ItcanalsoreduceriskexposureandincreaseexchangegainsbyincreasingdebtsofforeigncurrencyandrelyonGroupmanagementtostrengthenthelevelofcapitalcoordinationindifferentcountriesandregions,balance,andoffsetfluctuationrisksattheGrouplevel.

2.Potentialrisksoffinancialinvestmentbusiness

Inrecentyears,theCompanyhasarrangedsomeofitsidleownedfundstocarryoutfinancialinvestmentbusinesssuchassecuritiesinvestmentandentrustedwealthmanagementinanappropriatemanner,basedontheactualanddevelopmentneeds.Therearecertainrisksofcarryingouttheabovebusinessduetofluctuationsinthefinancialmarketanduncertaintyofincome;andtheriskthattheCompanymaysuffercertaininvestmentlossesincaseofriskeventsintheprocessofwealthmanagementactivitiesintermsofinvestmentstrategiesanduseoffunds.

Countermeasures:

Onthepremisethatthefundsrequiredforthedailyoperationofthemainbusinesswillnotbeaffected,theCompanyreasonablycontrolsthecapitalscaleforfinancialinvestment;itestablishesandimprovestheinternalcontrolsystemandmechanismstandardsforsecuritiesinvestmentandentrustedfinancialmanagement,andstrengthenstheriskcontrolmanagementofsecuritiesinvestmentbusiness,safeguardthesafetyofinvestmentfunds,andstrictlycontroltheriskexposure.Inaccordancewiththeeconomicsituationandchangesinthefinancialmarket,itcontinuouslytracksandanalysestheprogressofsecuritiesinvestmentandtheinvestmentoffunds,theprogressofprojectinvestmentandtheperformanceofthecapitalmarket,andtimelytakescorrespondingpreservationmeasurestocontrolinvestmentrisks.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

XIICommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviews

√Applicable□Notapplicable

/

Date

IntroductionoftheCompany'soperation,competitiveadvantages,industrydevelopmenttrendandfuturestrategicplanningandansweringinvestorquestions

IntroductionoftheCompany'soperation,competitiveadvantages,industrydevelopmenttrendandfuturestrategicplanningandansweringinvestorquestions

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

Date

IntroductionoftheCompany'soperation,competitiveadvantages,industrydevelopmenttrendandfuturestrategicplanningandansweringinvestorquestions

IntroductionoftheCompany'soperation,competitiveadvantages,industrydevelopmenttrendandfuturestrategicplanningandansweringinvestorquestions

IntroductionoftheCompany'soperation,competitiveadvantages,industrydevelopmenttrendandfuturestrategicplanningandansweringinvestorquestions

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Date

IntroductionoftheCompany'soperation,competitiveadvantages,industrydevelopmenttrendandfuturestrategicplanningandansweringinvestorquestions

XIIIImplementationofthe“QualityandEarningsDualImprovement”ActionPlan

IndicatewhethertheCompanyhasdisclosedthe“QualityandEarningsDualImprovement”ActionPlan.

□Yes√No

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PartIVCorporateGovernanceIGeneralInformationofCorporateGovernance

DuringtheReportingPeriod,theCompanystrictlyabidedbylawsandregulationsandrulesandnormativedocumentsofregulatoryauthorities,includingtheCompanyLaw,theSecuritiesLaw,theCodeofCorporateGovernanceforListedCompanies,theRulesforStockListingofShenzhenStockExchangeandtheShenzhenStockExchangeGuidelineNo.1fortheSelf-regulationofListedCompanies-StandardizedOperationofListedCompaniesontheMainBoard,continuedtoimprovetheCompany'scorporategovernancestructure,refineinternalmanagementandcontrolpolicies,andfurtherstrengthentheCompany'scapabilityofgovernance.

(I)Shareholdersandgeneralmeeting

DuringtheReportingPeriod,theCompanyconvenedandheldgeneralmeetingsinastandardmannerinstrictaccordancewithlawsandregulations.Theconveningandholdingproceduresofgeneralmeetings,thequalificationsofattendantstothemeetingsandthevotingproceduresofthemeetingsmettheprovisionsoftheCompanyLaw,RulesfortheShareholders'MeetingsofListedCompanies,ArticlesofAssociationsandRulesofProcedureforGeneralMeeting.Lawyerswereengagedtowitnessthegeneralmeetingsofshareholdersandissuedlegalopinionsontheirlegitimacytoensurefairtreatmenttowardandfullyexecutionofrightsofallshareholders,especiallyminorityshareholders.

(II)TheCompanyandcontrollingshareholders

DuringtheReportingPeriod,theCompanyproperlyhandledtherelationshipbetweenitandthecontrollingshareholdersinaccordancewiththeCompanyLaw,SecuritiesLaw,ArticlesofAssociationandrelevantprovisionsofthesecuritiesregulatoryauthority.ThecontrollingshareholdersoftheCompanyactedinanormativemanner,couldexercisetheirrightsandassumetheirobligationsaccordingtolaw,didnotdirectlyorindirectlyinterferewiththedecision-makingandbusinessactivitiesoftheCompanybeyondthegeneralmeetingofshareholders.TheCompanywasindependentofthecontrollingshareholdersintermsofbusiness,staffing,assets,organizationandfinance,andhadanindependentandcompletebusinesssystemandcapabilitytooperateindependently.TheBoardofDirectors,SupervisoryCommitteeandinternalorgansoftheCompanyoperatedindependently.

(III)DirectorsandtheBoardofDirectors

DuringtheReportingPeriod,directorsoftheCompanywereelectedinstrictaccordancewiththedirectorelectionprocedurespecifiedintheArticlesofAssociation.TheBoardofDirectorsoftheCompanywascomposedofsevendirectors,includingthreeindependentdirectors,andthenumberofmembersandcompositionofitmetlegalandregulatoryrequirements.DuringtheReportingPeriod,alldirectorsoftheCompanyactivelyandstrictlycompliedwiththeCompanyLaw,ArticlesofAssociationandRulesofProcedurefortheBoardofDirectors,earnestlyattendedmeetingsoftheBoardofDirectorsandgeneralmeetingsofshareholders,andtookanactivepartinrelevanttrainingtoimprovetheirbusinessskill,andwerediligentandresponsible.Theconvening,holdingandvotingprocedureanddailyoperationofthemeetingsoftheBoardofDirectorsoftheCompanycompliedwithrelevantregulations.

(IV)SupervisorsandtheSupervisoryCommittee

DuringtheReportingPeriod,supervisorsoftheCompanywereelectedinstrictaccordancewiththesupervisorelectionprocedurespecifiedintheArticlesofAssociation.TheSupervisoryCommitteeoftheCompanywascomposedofthreesupervisors,

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

includingonesupervisingemployeerepresentative,andthenumberofmembersandcompositionofitmetlegalandregulatoryrequirements.Thesupervisorsconscientiouslyperformedtheirdutiesand,inlinewiththeattitudeofbeingresponsibletoshareholders,supervisedthefinancialaffairsoftheCompanyaswellasthelegalityandcomplianceoftheperformanceofdutiesbydirectorsandseniormanagersoftheCompany,andsafeguardedthelegitimaterightsandinterestsoftheCompanyandshareholders.Theconvening,holdingandvotingproceduresofthemeetingsoftheSupervisoryCommitteeoftheCompanycompliedwiththeCompanyLaw,ArticlesofAssociationandRulesofProcedurefortheSupervisoryCommittee.(V)IndependentdirectorsandspecialcommitteesoftheBoardofDirectorsDuringtheReportingPeriod,independentdirectorsoftheCompanyhonestly,diligentlyandindependentlyperformedtheirdutiesinaccordancewiththeCompanyLawandregulations,normativedocumentsandimplementationrulesofotherdepartments,activelyattendedrelevantmeetings,earnestlydeliberatedtheproposalsoftheBoardofDirectors,gaveindependentadviceaboutthemajorissuesoftheCompany,effectivelyprotectedtheinterestsoftheCompanyandshareholders,especiallysmallandmediumshareholders,andwellplayedtheirroletosuperviseasindependentdirectors.Inaddition,theCompanyhasrevisedits‘WorkingRulesforIndependentDirectors’atthecompanylevelandthe"ImplementationRules"oftheAuditCommittee,theNominationCommittee,andtheCompensationandAppraisalCommitteeundertheBoardofDirectorsinaccordancewiththe"AdministrativeMeasuresforIndependentDirectorsofListedCompanies"issuedbytheChinaSecuritiesRegulatoryCommission,soastoensurethelegalityandcomplianceofthecompany'sinternalsystems.

(VI)InformationdisclosureandtransparencyDuringtheReportingPeriod,theCompanyperformeditsobligationofinformationdisclosureinstrictaccordancewithlawsandregulationsandtheManagementMeasuresforInformationDisclosure,anddisclosedinformationinatrue,accurate,completeandtimelymannerandmadenofalserecords,misleadingstatementsormajoromissions,bywhichitensuredthatallinvestorsandstakeholdershadequalopportunitiestoobtaintheCompany'sinformation,increasedtheCompany'sinformationtransparency,andeffectivelyplayeditsroleinprotectingtherighttoknowofsmallandmediuminvestors.InDecember2024,thecompanyhasupdatedthe"InformationDisclosureManagementMeasures"atthecompanyleveltobeconsistentwiththerelevantprovisionsofthecurrenteffectivedepartmentalregulations,regulatorydocuments,andbusinessrulesoftheCSRCandtheSZSE.Moreover,basedonthecompany'sinternallatestmanagementrequirementsandinternalprocessesforinformationdisclosurework,thecompanyhasmadeadjustmentsandupdatestomatterssuchastheinternalreviewproceduresforinformationdisclosureannouncementsandthemanagementanduseofdigitalcertificatesintheidentityauthenticationsystem.Werethereanysignificantdifferencesbetweentheactualsituationofthecorporategovernanceandtheapplicablelawsandregulations,aswellasrulespublishedbyChinaSecuritiesRegulatoryCommissiononthegovernanceoflistedcompanies?

□Yes√NoTherewerenotsignificantdifferencesbetweentheactualsituationofthecorporategovernanceandtheapplicablelawsandregulations,aswellasrulespublishedbyChinaSecuritiesRegulatoryCommissiononthegovernanceoflistedcompanies.

IITheIndependenceoftheCompanyfromControllingShareholdersandActualControlleronAssets,Personnel,Finance,Structure,andBusiness

Sinceestablishment,theCompanyhasbeenoperatinginstrictaccordancewiththeCompanyLaw,SecuritiesLawandArticlesofAssociation,andhasestablishedandimproveditscorporategovernancestructure.TheCompanyiscompletelyindependentofitscontrollingshareholdersandactualcontrollerintermsofbusiness,staffing,assets,organizationandfinance,andhasanindependentandcompletebusinesssystemandcapabilitytooperateindependentlyinthemarket.Allproductionoperationsandmajorissuesof

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

theCompanywerediscussedanddeterminedbytheManagement,theBoardofDirectorsandthegeneralmeetingsofshareholdersinaccordancewiththeArticlesofAssociationandrelevantpolicies,andnoneofthemwascontrolledbyanycontrollingshareholderortheactualcontroller.

1.AssetindependenceTheCompanywasfoundedontheoverallchangeofalimitedliabilitycompany.Allitsassetsandpersonnelbeforethesharerestructuringjoinedthejointstockcompany.TheCompanyhasindependentandcompleteoperatingassets.Aftertheoverallchange,theCompanyownsalltheproductionandoperationalassetsneededforproductionandoperation,andthereisnodisputeoverpropertyrights.TheCompanyownsproductionsystems,auxiliaryproductionsystemsandsupportingfacilitiesrelatedtoitsproductionandoperation,andhasindependentrawmaterialprocurementandproductsellingsystems.AssetsoftheCompanyarestrictlyseparatedfromthoseofshareholdersandtheactualcontroller,andnoassetsoftheCompanyarebeingoccupiedbyshareholdersortheactualcontroller.

2.PersonnelindependenceTheCompanyhascompletelyindependentlabour,personnelandsalarymanagementsystemsandindependentstaffteams,andhassignedlabourcontractswithitsemployeesinaccordancewiththeLabourLawandtheCompany'spoliciesonlabourmanagement.Directors,supervisorsandseniormanagersoftheCompanywereelectedinstrictaccordancewiththeCompanyLawandArticlesofAssociation,andseniormanagers,includinggeneralmanagers,deputygeneralmanagers,financialdirectors,andsecretariestotheBoardofDirectorsareworkingfulltimeintheCompanyandgettingpaidbytheCompany.MrTangZhuolin,theactualcontrolleroftheCompany,isservingastheChairmanoftheBoardofDirectors,andhasbeenlegallyexercisingitsfunctionsandpowersaccordingtotheCompanyLawandArticlesofAssociationinengagingintheCompany'smanagement.

3.FinanceindependenceTheCompanyhasanindependentfinancialdepartmentandfull-timefinancialpersonnel,andhasestablishedanindependentandfinefinancialaccountingsystemandstandardizedfinancialpolicies.Ithasimplementedaneffectivefinancialsupervisionandmanagementsystemandaninternalcontrolsystem,anditiscapableofmakingindependentfinancialdecisions,carryingoutindependentaccountingandassumingsoleresponsibilityforitsprofitsandlossesaccordingtotheArticlesofAssociationanditsownsituation.TheCompanyhasanindependentbankaccountandisnotsharinganyaccountofcontrollingshareholdersortheactualcontrollerand,asanindependenttaxpayer,declarestaxesandfulfilstaxpaymentobligationsindependentlyaccordingtolaw,andhasneverpaidtaxestogetherwithshareholders'companies.

4.OrganizationindependenceTheCompany,inaccordancewiththeCompanyLawandArticlesofAssociation,hassetuptheGeneralMeetingofShareholdersasthehighestauthority,theBoardofDirectorsasthedecision-makingbody,andtheSupervisoryCommitteeasthesupervisorybody,andhasacompletecorporategovernancestructure.TheCompanyhasacompleteinternalmanagementsystemandcorrespondingofficesandoperatingdepartments.Thefunctionaldepartmentsworkaccordingtorespectivedutiesandcooperatewitheachother,makingtheCompanyanorganicandindependentoperatingentityfreefromtheinterventionofcontrollingshareholdersandtheactualcontroller.

5.BusinessindependenceTheCompanyhasitsbusinessindependentofcontrollingshareholders,hasindependentandcompletesupply,productionandsalessystems,andiscapableofindependentdecision-makingonbusinesspoliciesandbusinessplans,independentallocationanduseofpersonnel,moneyandmaterials,andsuccessfulorganizationandimplementationofproductionandbusinessactivities.TheCompanyiscompletelyindependentinbusinessandisnotrelyingonthefirstmajorityshareholderandtheactualcontroller.The

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

controllingshareholdersarenotconductingbusinessofhorizontalcompetitionwiththatoftheCompany,andhaveundertakennottoconductanybusinessthatmaybeofhorizontalcompetitionwiththatoftheCompany.IIIHorizontalCompetition

□Applicable√Notapplicable

IVAnnualandExtraordinaryGeneralMeetingsConvenedduringtheReportingPeriod

1.GeneralMeetingConvenedduringtheReportingPeriod

/

Meeting

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Meeting

2.ExtraordinaryGeneralMeetingsConvenedattheRequestofPreferenceShareholderswithResumedVotingRights

□Applicable√Notapplicable

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

VDirectors,SupervisorsandSeniorManagement

1.GeneralInformation

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Name

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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ChenHuiyi

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Indicatewhetheranydirector,supervisororseniormanagementresignedorwasdismissedbeforetheendoftheirtenureduringtheReportingPeriod.

□Yes√NoChangesofdirectors,supervisorsandseniormanagement:

?Applicable□Notapplicable

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Name

2.BiographicalInformation

Professionalbackgrounds,majorworkexperienceandcurrentpostsintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:

1.MembersoftheBoardofDirectorsMr.TangZhuolin,Chinese,hasnorightofpermanentresidenceabroad.Heisamemberofthe12

thPeople'sPoliticalConsultativeConferenceofNanhaiDistrict,FoshanCity,GuangdongProvince,ManagingDirectorofthe9thCouncilofChinaPackagingFederation,ManagingDirectorofGuangdongFoodandPackagingMachineryAssociation,VicePresidentofFoshanMachineryEquipmentIndustryAssociation,HonoraryPresidentofFoshanNanhaiDistrictMachineryEquipmentTradeAssociation,VicePresidentofFoshanHigh-techZoneChamberofCommerce,andVicePresidentofFoshanNanhaiDistrictListedCompanyAssociation.HeoncewasHeadofNanhaiGuichengdongPlasticandTextileFactoryNo.2,HeadofNanhaiGuichengdongPrintingMachineryFactoryNo.2,andSupervisorofShenzhenZhiquanVentureCapitalCo.,Ltd.HeusedtoserveasDongfangPrecision'sGeneralManagerandChiefEngineersince1996,andiscurrentlyChairmanoftheBoardofDongfangPrecision,DirectorofDongFangPrecision(HK)Limited,DirectorofGuangdongFosberIntelligentEquipmentCo.,Ltd.,DirectorofSuzhouParsunPowerMachineCo.,Ltd.,ExecutiveDirectorandGeneralManagerofSuzhouShunyiInvestmentCo.,Ltd.,ExecutiveDirectorandGeneralManagerofHainanYinengInvestmentCo.,Ltd.,SupervisorofDongfangDigicomTechnologyCo.,Ltd.,SupervisorofDongfangDigicomTechnology(Guangdong)Co.,Ltd.,ExecutiveDirectorandManagerofDongfangYinengInternationalHoldingCo.,Ltd.,ChairmanoftheBoardofShenzhenWonderDigitalTechnologyCo.,Ltd.,ChairmanoftheBoardofFosberS.p.A.,DirectorofEDFEuropeS.r.l.,DirectorofFosberAmerica,Inc.,DirectorofTiru?aS.L.U.,DirectorofQuantumCorrugatedS.r.l.,ExecutiveDirectorandGeneralManagerofShenzhenXianglinVentureCapitalCo.,Ltd.,SupervisorofShenzhenShenghuiVentureCapitalCo.,Ltd.,andSupervisorofFoshanHengbaoTaishengTradeCo.,Ltd.Ms.QiuYezhi,Chinese,hasnorightofpermanentresidenceabroad,MBA,NationalModelWorker,Memberofthe12

thPeople'sPoliticalConsultativeConferenceofFoshanCity,GuangdongProvince,andDeputytothe17

thPeople’sCongressofNanhaiDistrict,FoshanCity,GuangdongProvince.SheservedsuccessivelyasDongfangPrecision'sDirectoroftheGeneralManager'sOffice,GeneralManagerofOperationsandGeneralManagersince1996,andasDongfangPrecision'sGeneralManagerandBoardSecretaryfromJuly2010toOctober2013.Currently,sheisDongfangPrecision'sDirectorandGeneralManager,ChairmanoftheBoardofGuangdongFosberIntelligentEquipmentCo.,Ltd.,DirectorofShenzhenWonderDigitalTechnologyCo.,Ltd.,SupervisorofHainanYinengInvestmentCo.,Ltd.,SupervisorofDongfangYinengInternationalHoldingCo.,Ltd.,ViceChairmanoftheBoardofFosberS.p.A.,DirectorofFosberAmerica,Inc.,DirectorofTiru?aS.L.U.,DirectorofEDFEuropeS.r.l.,DirectorofTiru?aAmericainc.,DirectorofDongFangPrecision(Netherland)CooperatiefU.A.,ExecutiveDirectorandGeneralManagerof

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

ShenzhenShenghuiVentureCapitalCo.,Ltd.,andSupervisorofShenzhenXianglinVentureCapitalCo.,Ltd.Mr.XieWeiwei,Chinese,hasnorightofpermanentresidenceabroad,MBA,Memberofthe14

thPeople'sPoliticalConsultativeConferenceofNanhaiDistrict,FoshanCity,GuangdongProvince,graduatedfromHuazhongUniversityofScienceandTechnologyin2008.OnceservedastheStandingDeputyGeneralManagerofFoshanMultimodalTransportCorp.,ChairmanoftheBoardofFoshanDonghuochangRailwayLogisticsCo.,Ltd.,DeputyChiefoftheReformandDevelopmentDivisionofFoshanSASAC,andDeputyHeadoftheInvestmentDepartmentandHeadoftheAssetManagementDepartmentofFoshanFinancialInvestmentHoldingsCo.,Ltd.CurrentlytheCompany'sDirectorandDeputyGeneralManager,ExecutiveDirectorandGeneralManagerofDongfangDigicomTechnologyCo.,Ltd.,ExecutiveDirectorandGeneralManagerofDongfangDigicomTechnology(Guangdong)Co.,Ltd.,DirectorofSuzhouParsunPowerMachineCo.,Ltd.,andDirectorofthejoint-stockcompanyGuangdongJatenRobot&AutomationCo.,Ltd.Ms.FengJia,Chinese,hasnorightofpermanentresidenceabroad.SheisDoctorofEngineeringofZhejiangUniversity,PostdoctoralFellowofGuangzhouInstituteofEnergyConversionofChineseAcademyofSciences,andIntermediateEngineer.SheusedtoworkasAssociateResearcheratGuangzhouInstituteofEnergyConversionofChineseAcademyofSciencesfrom2014to2018,SeniorManagerintheResearchandDevelopmentDepartmentofChinaSecuritiesCo.,Ltd.from2018to2019,andAssistanttoPresident&BoardSecretaryofTianjinLVYINLandscapeandEcologyConstructionCo.,Ltd.from2019to2021.JoiningtheCompanyinSeptember2021,sheisnowDirector,VicePresidentandBoardSecretaryoftheCompany,thesupervisorofShenzhenWonderDigitalTechnologyCo.andthejoint-stockcompanyGuangdongJatenRobot&AutomationCo.,Ltd.Mr.LiKetian,Chinese,hasnorightofpermanentresidenceabroad.GraduatedfromSouthChinaUniversityofTechnologywithadoctoraldegreeandaprofessionaltitleofprofessorofmechanicalengineering.Onceservedasaworker,technicianandengineerattheWuhanCameraFactoryfrom1974to1989andasalecturer,associateprofessorandprofessoratGuangdongUniversityofTechnologyfrom1992to2020.CurrentlytheIndependentDirectorofDongfangPrecision.Mr.FengZhidong,Chinese,hasnorightofpermanentresidenceabroad.GraduatedfromRenminUniversityofChinawithbachelorofinternationalaccounting&economics,andfromSouthChinaUniversityofTechnologywithmasterofbusinessadministration,holdinganintermediate-levelprofessionalaccountingqualificationcertificate.OnceservedasthedeputygeneralmanageroftheCapitalOperationDepartmentofYuexiuEnterprises(Group)Co.,Ltdfrom2009to2016,thegeneralmanageroftheInvestorRelationsDepartmentofYuexiuPropertyCo.,Ltd.(StockCode:123.HK).from2012to2016.CurrentlythechairmanofGuangzhouAirparkingNetworkTechnologyCo.,Ltd,andtheIndependentDirectorofDongfangPrecisionsince2September2024.Inthelastfiveyears,hehasservedastheIndependentDirectorofSocieteGeneraleIoTServicesGroupCo.,Ltd.(StockCode:9916.HK)andtheIndependentDirectorofJianhongGroupHoldingsCo.,Ltd.(StockCode:1557.HK),andandanindependentdirectorofXindaInvestmentHoldingsCo.,Ltd.(StockCode:1281.HK).Mr.TuHaichuan,Chinese,hasnorightofpermanentresidenceabroad.GraduatedfromShanghaiUniversityofFinanceandEconomics.Bachelordegree.Acertifiedpublicaccountant.OnceservedastheAuditManagerofGuangdongDahuaDelvCertifiedPublicAccountantsfrom2004to2009,InvestmentDirectorofGuangxiSaifuInvestmentCo.,Ltd.in2010,FinancialManager,ChiefFinancialOfficerandAssistanttotheChairmanofGuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.fromDecember2010toSeptember2016.CurrentlytheExecutiveDirectorandGeneralManagerofShenzhenChangheCapitalManagementCo.,Ltd.Inthelastfiveyears,hehasbeentheDirectorofGuangzhouShoulianEnvironmentGroupCo.,Ltd.andShenzhenAiwenCultureDevelopmentCo.,Ltd.,andIndependentDirectorofDongfangPrecision.

2.MembersoftheSupervisoryCommitteeMs.ChenHuiyi,Chinese,withauniversitydegree,hasnorightofpermanentresidenceabroad.OnceservedastheassistantoftheQualityControlDepartmentofDongfangPlasticProductsCo.,Ltd.fromSeptember2008toDecember2009,currentlytheChairman

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

oftheSupervisoryCommitteeandSecretarytoGeneralManagerofDongfangPrecision,aswellasSupervisorofthesubsidiarySuzhouParsunPowerMachineCo.,Ltd.Mr.HeBaohua,Chinese,withauniversitydegree,hasnorightofpermanentresidenceabroad.JoinedGuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.in2002,engagedinafter-salesmanagementandprojectmanagement,currentlytheCompany'ssupervisorandSeniorProjectManageroftheProjectManagementDepartment.Mr.ZhaoXiuhe,Chinese,withatechnicalsecondaryschooldegree,hasnorightofpermanentresidenceabroad.JoinedDongfangPrecisioninFebruary2006,currentlytheCompany'sDirectoroftheAdministrationDepartment.ServedastheCompany'sEmployeeSupervisorsinceJune2016.

3.SeniormanagementMs.QiuYezhi,currentlytheCompany'sGeneralManager.Herresumeisdetailedin"1.MembersoftheBoardofDirectors".Mr.XieWeiwei,currentlytheCompany'sDeputyGeneralManager.Hisresumeisdetailedin"1.MembersoftheBoardofDirectors".Ms.FengJia,currentlytheCompany’sBoardSecretaryandVicePresident.Herresumeisdetailedin"1.MembersoftheBoardofDirectors".Mr.ShaoYongfeng,Chinese,hasnorightofpermanentresidenceabroad.Graduatedwithabachelor'sdegreefromZhongnanUniversityofEconomicsandLaw,aPRCcertifiedpublicaccountantandPRCcertifiedpublicassetsestimator.ServedasFinancialManagerandFinancialDirectorofTCLMultimediaTechnologyHoldingsLimitedfrom2001to2010,joinedHaierEuropein2015andservedsuccessivelyasthecompany'sFinancialDirectorandCFOofEurope,joinedShenzhenSmooreTechnologyLimitedandservedasFinancialDirectorfrom2016to2017,servedasVicePresidentFinanceinShenzhenCIMCTiandafrom2017to2020,andjoinedGuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.inApril2020.CurrentlytheCompany'sChiefFinancialOfficerandVicePresident,andtheCFOofthesubsidiariesofDongfangDigicomTechnologyCo.,Ltd.,DongfangDigicomTechnology(Guangdong)Co.,Ltd,HainanYinengInvestmentCo.,Ltd.,DongfangYinengInternationalHoldingCo.,Ltd,Tiru?a(Guangdong)IntelligentEquipmentManufacturingCo.,Ltd.Officesheldconcurrentlyinshareholdingentities:

□Applicable√NotapplicableOfficesheldconcurrentlyinotherentities:

√Applicable□Notapplicable

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Name

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Name

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Name

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Name

Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:

□Applicable√Notapplicable

3.RemunerationofDirectors,SupervisorsandSeniorManagementFollowingtheapprovaloftheRemunerationandAppraisalCommittee,theremunerationsfordirectors,supervisorsandseniormanagementaresubmittedtotheBoardofDirectorsandtheSupervisoryCommitteeforfurtherapproval.Theremunerationsofdirectorsandsupervisorsaresubjecttofinalapprovalbythegeneralmeeting,andthoseofseniormanagementaresubjecttotheBoardofDirectors.Thedecision-makingproceduresareincompliancewiththeCompanyLaw,theCompany’sArticlesofAssociation,andtheCompany’sSpecificImplementationRulesfortheRemunerationandAppraisalCommitteeundertheBoardofDirectors.IntheReportingPeriod,theactualpaymentsofremunerationfordirectors,supervisorsandseniormanagementwereconsistentwiththeresolutionsofthegeneralmeetingandtheBoardofDirectors.Remunerationofdirectors,supervisorsandseniormanagementfortheReportingPeriod

Unit:RMB'0,000

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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andVicePresident

VIPerformanceofDutybyDirectorsintheReportingPeriod

1.BoardMeetingsConvenedduringtheReportingPeriod

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Meeting

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Meeting

2.AttendanceofDirectorsatBoardMeetingsandGeneralMeetings

Whyanydirectorfailedtoattendtwoconsecutiveboardmeetings:N/A

3.ObjectionsRaisedbyDirectorsonMattersoftheCompanyIndicatewhetheranydirectorsraisedanyobjectionsonanymatteroftheCompany.

□Yes√NoNosuchcasesintheReportingPeriod.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

4.OtherInformationaboutthePerformanceofDutybyDirectors

IndicatewhetheranysuggestionsfromdirectorswereadoptedbytheCompany.

√Yes□NoSuggestionsfromdirectorsadoptedornotadoptedbytheCompany:

DuringtheReportingPeriod,thedirectorsandindependentdirectorsoftheCompanyworkedinstrictaccordancewiththerequirementsoftheCompanyLaw,theSecuritiesLaw,ShenzhenStockExchangeSelf-RegulatoryGuidelinesforListedCompaniesNo.1-StandardizedOperationofMainBoardListedCompanies,theArticlesofAssociation,theRulesofProcedurefortheBoardofDirectors,theRulesforIndependentDirectorsandotherrelevantlawsandregulations,earnestlyattendedtheBoardmeetingsandtheGeneralMeetings,andwerediligentandresponsible.TheyhavemaderelevantsuggestionsonthemajorgovernanceandoperationdecisionsoftheCompany.TheindependentdirectorsactivelygottoknowtheoperationoftheCompanyanddelivereddifferentopinionsonmajormattersoftheCompany,givingbetterplaytotheirsupervisoryroleandeffectivelymaintainingtheinterestsoftheCompanyanditsshareholders.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

VIIPerformanceofDutybySpecialCommitteesundertheBoardintheReportingPeriod

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Committee

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Committee

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Committee

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

VIIIPerformanceofDutybytheSupervisoryCommittee

IndicatewhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.

□Yes√NoNosuchcasesintheReportingPeriod.

IXEmployees

1.Number,FunctionsandEducationalBackgroundsofEmployees

/

Numberofin-serviceemployeesoftheCompanyastheparentattheperiod-end

2.EmployeeRemunerationPolicy

TheCompanyremunerationpolicyin2024continuedtobebasedonpostsandperformanceandsubjecttototalcontrol.AcomprehensiveremunerationsystemwasestablishedandfurtherimprovedtoretainandattracttalentsneededfortheCompany'ssustainabledevelopment.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

1.Paidremunerationbasedonposts:Therelativevalueofapostwasdeterminedbasedonitsduties,andtheremunerationrageofthepostwasdeterminedbasedontherelativevalueandaccordingtotheCompany'svalueorientation.

2.Paidremunerationbasedonperformance:TheCompanydeterminedthebasicremunerationbasedontherelativevalueofapostandpersonalcompetence,determinedtheperformancebonusinanemployee'sremunerationbasedonhis/herperformance,andadjustedtheremunerationbasedonhis/herpersonalcompetenceandoverallperformance.

3.Changedremunerationwiththechangeinpost:Theremunerationwasstrictlyfittedtothepost,andifthepostchanged,theremunerationchanged,sothattheremunerationsystemcansupportthecareerdevelopmentofemployees.

4.Totalcontrol:ThetotalamountofremunerationwascontrolledwithinthescoperecognizedbytheCompany,andthegrowthrateofremunerationshouldbelowerthanthatofsalesrevenueandprofit.TheCompany'saffordabilitywastakenintoaccountsothattheCompany'sbusinessperformancecansupportthegrowthofthetotallabourcost.

5.Theremunerationsystemofpaymentbypieceisappliedtofirst-lineworkersofdomesticbusinessentities,sothattheycouldbepaidmorebybeingmoreprofessionandworkingharder,soastoreflectaninternallyfairremunerationpolicybasedondifferentialskillscoring.Overseasbusinessentities:

Theremunerationsystemforeachoverseasbusinessentityisputinplaceinaccordancewiththelocallaborlawandotherapplicablelaws.

3.TrainingPlan

1.Activelyintroducediversifiedtrainingresourcesandinnovativetrainingorganizationforms,suchassandtablesimulationsandworkshops,toempowercoreemployeesandsharethegroup'strainingresources.Strengthenthefollow-upoftheearlycommunication,returnvisits,andfeedbackforkeytrainingprojectstocontinuouslyimprovetheimplementationeffectoftraining.

2.Optimizetheinternaltrainingmanagementsystemofthegroup,makefulluseoftheinternalresourcesofthegroup,takeinventoryofandsortouttheinternaltrainerteamsofthegroupheadquartersanditssubsidiaries,andpromotetheaccumulationandprecipitationofthegroup'sinternalknowledgeresources.

3.Implementandcompletecustomizedindividualtrainingplansforemployees,organizetheemployeesofthegroupheadquarterstoformulateandcompletepersonalinternaltraining,externaltraining,andinternaltrainingteachingplans,ensurethemaximumutilizationoftrainingresources,andenhanceemployees'professionalskillsandcomprehensivequalitiesinatargetedmanner.

4.Continuouslypromotecross-organizationaltalentcultivationwithinthegroup,facilitateknowledgesharingandtechnicalexchangeswithinthegroup,andimprovetheoveralltechnicallevelandinnovationabilityofthegroup.

5.Overseassubsidiariesalwaysattachgreatimportancetoemployees'careerdevelopmentandpersonalgrowth,andactivelycarryouttrainingprogramsincludingprofessionalandtechnicaltraining,leadershiptraining,safetyandhealthtraining,languagetraining,andsoftskillstraining.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

4.LaborOutsourcing

√Applicable□Notapplicable

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Totalhoursoflaboroutsourced

XProfitDistributionstoOrdinaryShareholders(intheFormofCashand/orStock)

Theprofitdistributionpolicyforshareholders,especiallytheformulation,implementationandamendmentstothecashdividendpolicy,intheReportingPeriod:

√Applicable□Notapplicable

Articles183and186oftheArticlesofAssociationofGuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.hasspecifiedthemethodofprofitdistributionandtheconditions,scheduleandproportionofcashdividend,aswellastheprocedurestodecideandadjustorchangeprofitdistribution,inordertofullyprotectthelegitimaterightsandinterestsofinvestors.TheprofitdistributionpolicyoftheCompanyremainedunchangedintheReportingPeriod.

Duringthereportingperiod,itwasprofitableandtheprofitavailablefordistributiontoshareholdersoftheparentcompanywaspositive,butnocashdividenddistributionplanwasproposed

□Applicable√NotapplicableThesituationofprofitdistributionandconversionofcapitalreserveintosharecapitalduringthisreportingperiod.

□Applicable√NotapplicableThecompanyplanstodonotdistributecashdividends,issuebonusshares,orconvertcapitalreserveintosharecapitalintheplannedyear.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

XIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees

√Applicable□Notapplicable

1.EquityIncentivesTheimplementationsoftheabove-mentionedincentiveplansduringtheReportingPeriodareasfollows:

1.On5February2024,theProposalontheSatisfactionoftheUnlockingConditionsforthe3rdUnlockingPeriodfortheReservedRestrictedSharesunderthe2020RestrictedShareIncentivePlanwasapprovedatthe2nd(Extraordinary)Meetingofthe5thBoardofDirectorsandthe2nd(Extraordinary)Meetingofthe5thSupervisoryCommittee.On26February2024,1,632,000sharesheldby17awardeeswereunlockedforpublictradinginthe3rdunlockingperiodforthereservedrestrictedsharesunderthe2020RestrictedShareIncentivePlan.

2.On9May2024,TheProposalontheNon-FulfillmentoftheReleaseConditionsfortheSecondRelease-RestrictionPeriodoftheFirst-GrantedPortionunderthe2022RestrictedStockIncentivePlanandtheRepurchaseandCancellationofSomeRestrictedStockswasapprovedatthe5th(Extraordinary)Meetingofthe5thBoardofDirectorsandthe5th(Extraordinary)Meetingofthe5thSupervisoryCommittee.

On27May2024,TheProposalontheNon-FulfillmentoftheReleaseConditionsfortheSecondRelease-RestrictionPeriodoftheFirst-GrantedPortionunderthe2022RestrictedStockIncentivePlanandtheRepurchaseandCancellationofSomeRestrictedStockswasapprovedatthefirstExtraordinaryGeneralMeetingof2024.TheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedconfirmedthatithadcompletedtherepurchaseandcancellationofsomeofthecompany'srestrictedsharesonJanuary13,2025.

3.On13December2024,TheProposalontheRepurchaseandCancellationofSomeRestrictedStockswasapprovedwasapprovedatthe11th(Extraordinary)Meetingofthe5thBoardofDirectors,andwasapprovedbythe5thExtraordinaryGeneralMeetingon30December2024.Inviewofthefactthatoneoftheoriginalequityincentiverecipientshasterminatedthelaborcontractrelationshipwiththecompanyandnolongermeetstheconditionsforthecompany'sequityincentive,thecompanyplanstorepurchaseandcancel400,000restrictedsharesthathavebeengrantedtotheabove-mentionedpersonbuthavenotyetbeenreleasedfromtherestrictions.TheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedconfirmedthatithadcompletedtherepurchaseandcancellationofsomeofthecompany'srestrictedsharesonJanuary13,2025.Equityincentivesreceivedbydirectorsandseniormanagement:

√Applicable□Notapplicable

Unit:share

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Name

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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tingPeriod

Appraisalofandincentiveforseniormanagement:

TheCompanyhasestablishedasoundperformanceappraisalandremunerationpolicyforseniormanagers,anddeterminedkeyperformanceindicators(KPIs)matchingdifferentposts,whichlinkedtheincomeoftheCompany'smanagersandemployeesatdifferentlevelstotheirworkperformance.DuringtheReportingPeriod,theCompanyassessedandappraisedtheworkability,dutyperformanceandcompletionofresponsibilitygoalsofseniormanagersbasedontheKPIs,andcloselylinkedtheirremunerationlevelswiththeCompany'sbusinessperformance.

2.ImplementationofEmployeeStockOwnershipPlans

?Applicable□NotapplicableThesituationofalleffectiveemployeestockownershipplansduringthereportingperiod

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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managersandcorebusiness(technical)personnelwhoareemployedbythecompanyoritscontrolledsubsidiaries

Theshareholdingofdirectors,supervisorsandseniormanagementpersonnelintheemployeestockownershipplanduringthereportingperiod

Changesinassetmanagementinstitutionsduringthereportingperiod

□Applicable√NotapplicableChangesinequitycausedbyholders'disposalofshares,etc.duringthereportingperiod

□Applicable√NotapplicableThesituationoftheexerciseofshareholders'rightsduringthereportingperiod.

□Applicable√NotapplicableOtherrelevantmattersregardingtheemployeestockownershipplanduringthereportingperiod

□Applicable√NotapplicableChangesinthemembersofthemanagementcommitteeoftheemployeestockownershipplan

□Applicable√NotapplicableThefinancialimpactoftheemployeestockownershipplanonthelistedcompanyduringthereportingperiodandrelevantaccountingtreatments?Applicable□NotapplicableAccordingto"AccountingStandardsforBusinessEnterprisesNo.11-Share-basedPayments",forequity-settledshare-basedpaymentsinexchangeforemployees'servicesthatcanonlybeexercisedwhentheservicesduringthewaitingperiodarecompletedorthestipulatedperformanceconditionsaremet,oneachbalancesheetdateduringthewaitingperiod,theservicesobtainedinthecurrentperiodshouldbeincludedinrelevantcostsorexpensesandcapitalreservebasedonthebestestimateofthenumberofexercisableequityinstrumentsandinaccordancewiththefairvalueoftheequityinstrumentsonthegrantdate.Theamortizationexpenseofthecompany'semployeestockownershipplanin2024was7.8788millionyuan,whichwasincludedinrelevantexpenseaccountsandcapitalreserve。Thesituationoftheterminationoftheemployeestockownershipplanduringthereportingperiod.

□Applicable√Notapplicable

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

3.OtherIncentiveMeasuresforEmployees

□Applicable√Notapplicable

XIIFormulationandImplementationofInternalControlSystemduringtheReportingPeriod

1.InternalControlFormulationandImplementation

InaccordancewiththeprovisionsoftheBasicCodeforInternalControlofEnterprisesanditssupportingguidelinesandotherregulatoryrequirementsforinternalcontrol,theCompanyhassetuparelativelycompletecorporategovernancestructureandinternalcontrolmanagementsysteminlinewithitsactualoperation,whichisinlinewiththeneedsoftheCompany'soperationandmanagement.TheCompanyhasestablishedinternalcontroloverthebusinessesandmattersincludedinthescopeofevaluationforeffectiveimplementation.Theobjectiveofinternalcontrolhasbeenbasicallyachievedwithnomaterialweakness.TheBoardofDirectorsoftheCompanyisresponsibleforestablishingsoundandeffectiveinternalcontrolsandevaluatingtheireffectivenessinaccordancewiththeprovisionsofthestandardsystemforenterpriseinternalcontrol.TheSupervisoryCommitteesupervisedtheestablishmentandimplementationofinternalcontrolsbytheBoardofDirectors.TheCompanywouldensurelegalcomplianceinoperationandmanagement,assetssafety,truthfulnessandintegrityoffinancialreportsandrelatedinformationthroughthesoundandeffectiveimplementationofinternalcontrolstoimproveoperationalefficiencyandeffect,andpromotethedevelopmentstrategy.

2.SignificantDefectsinInternalControlIdentifiedduringtheReportingPeriod

□Yes√NoXIIISubsidiaryManagementduringtheReportingPeriod

/

Subsidiary

XIVSelf-AssessmentReportandIndependentAuditor’sReportonInternalControl

1.InternalControlSelf-AssessmentReport

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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assetsintheCompany'sconsolidatedfinancialreport

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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keyposts;d.Failuretotimelyremedytheimportantdefectsidentifiedininternalsupervisionofinternalcontrol;e.OthercircumstancesthathaveanegativeimpactontheCompany.3)Generaldefectsreferredtothecontroldefectsotherthansignificantandimportantdefectsmentionedabove.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

2.IndependentAuditor’sReportonInternalControl

√Applicable□Notapplicable

/

Opinionparagraphintheindependentauditor’sreportoninternalcontrol

Indicatewhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.

□Yes√NoIndicatewhethertheindependentauditor’sreportontheCompany’sinternalcontrolisconsistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoardofDirectors.

√Yes□No

XVRectificationsofProblemsIdentifiedbySelf-inspectionintheSpecialActionforListedCompanyGovernanceN/A

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PartVEnvironmentalandSocialResponsibilities

ISignificantEnvironmentalIssuesWhetherthelistedcompanyanditssubsidiariesfellintomajorpollutant-dischargeenterprisesandinstitutionspublishedbynationalenvironmentalprotectionauthorities.

□Yes√NoBeingsubjecttoadministrativepenaltiesduetoenvironmentalissuesduringthereportingperiod.

CompanyName

MeasurestakentoreducecarbonemissionsintheReportingPeriodandtheimpact:

√Applicable□NotapplicableThesubsidiaryFosberItalyhasestablishedandimplementedasustainabilitymanagementsystemandiscertifiedtothefollowinginternationalstandards:ISO45001:2018,ISO9001:2015,ISO14001:2015,EMAS(EUEco-ManagementandAuditSystem),andSA8000:2014.Reasonsfornon-disclosureofotherenvironmentalinformation

□Applicable√NotapplicableForotherenvironmentalinformation,pleasereferto“IISocialResponsibilities”below.IISocialResponsibilitiesTheCompanyattachedimportancetofulfillingsocialresponsibilityindailyoperations,intendingtopromoteharmonyandco-prosperitybetweenitandpartiesrelatedtoitsinterests.TheCompanyalsotookactivemeasuresintheprotectionoftherightsandinterestsofshareholders,creditors,employees,suppliers,customers,andconsumers,environmentalprotection,sustainabledevelopment,publicrelations,andsocialpublicwelfareundertakings,andstrivedtomaximizecomprehensivesocialbenefitsincludingthesustainabledevelopmentofitself.

(1)Corporategovernance:DuringtheReportingPeriod,theCompanystrictlyabidedbytheCompanyLaw,theSecuritiesLawandCodeofCorporateGovernanceforListedCompanies,continuedtorefinethecorporategovernancestructure,improvetheinternalcontrolsystem,formedthedecision-makingsystemcomprisingtheShareholders'GeneralMeeting,theBoardofDirectors,theSupervisoryCommitteeandtheManagement,andtimelyfulfilleditsobligationofinformationdisclosureaccordingtolawsandregulationsandeffectivelysafeguardedtherightsandinterestsofallshareholders.

(2)Rightsandinterestsofemployees:TheCompanyprovidedemployeeswithwelfareandcarebyprovidingholidaygiftsandholdingemployeebirthdayparties,annualmeetings,andteam-buildingactivities,improvedemployees'professionalcompetencebyofferingregularorirregulartrainingtoemployeesintheheadquartersanddomesticandforeignbranchesandsubsidiaries,andcontinuedtoimprovethecompetitivecomprehensiveremunerationsystemtoretainandattracttalentsneededfortheCompany'ssustainabledevelopment.

(3)Relationshipwithcustomersandsuppliers:Longadheringtotheprincipleof"honestbusiness"and"mutualbenefitandwin-win",theCompanytooktheinitiativetoconstructanddevelopastrategicpartnershipwithsuppliersandcustomersandjointlybuiltaplatformoftrustandcooperation,andearnestlyfulfilleditssocialresponsibilitiestosuppliers,customersandconsumers.TheCompanyhasbeenwell-performingcontractswithsuppliersandcustomersandensuringthattherightsandinterestsofallpartiesarehighlyvaluedanddulyprotected.

(4)Productionsafety:TheCompanystrictlyabidedbytheLabourLawandtheLabourContractLaw,adheredtothe"people-oriented"principle,attachedimportancetotheneedsofemployees,strivedtoimprovetheworkingandlivingenvironmentsofemployees,andhassetupalabouruniontoeffectivelyprotecttheinterestsofemployees.Italsoprovidedlabourprotectionsuppliesaccordingtotheriskfactorsofdifferentposts,organizedoccupationalhealthexaminationsforemployees(beforetakingthepost,onthepostandbeforeleavingthepost),andboughtsafetyliabilityinsuranceforemployeesonhighlyriskyposts.In2020,DongfangPrecisionextendeditsGradeIIProductionSafetyStandardizationCertificateforMachineryEnterprises,andParsunPowerandFosberAsiaweregrantedtheGradeIIIProductionSafetyStandardizationCertificateforMachineryEnterprises.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

(5)Environmentalprotection:DongfangPrecisionwasgrantedtheNationalPollutantDischargePermitandregularlycompletesthefillingofdataforpost-licensemonitoringoftheNationalDischargeLicense.Itcommissionedthequalifiedthird-partyenvironmentalprotectionagenciestocompiletheContingencyPlansforEnvironmentalEmergenciesandupdateitonaregularbasis.TheCompanyestablishedthe"EnvironmentalSelf-MonitoringProgramme",entrustedathirdpartytoinstallandoperate24-hoursewageon-lineflowmonitoringequipment,andentrustedathird-partymonitoringorganisationtocarryoutquarterlytestingofwastewater,exhaustgasandnoiseandissuethird-partytestreports.Moreover,theCompany’senvironmentalprotectionfacilitiespassedthequalificationre-examinationonOHSAS18001:2007OccupationalHealthandSafetyManagementSystemsandISO14001:2005EnvironmentalManagementSystem..

(6)Anti-fraud:TheGroupcompliedathoroughinternalauthorizationmanualthatdetailedprovisionsoninternalauthorizationprocessofmajormatterstoensureappropriateinternalcontrolandreducetheriskoffraud.Inordertocreateafair,just,honestandnon-corruptinternalbusinessenvironmentandstrengtheninternalmonitoring,theCompanyalsoestablishedandlaunchedtheanti-fraudreportingplatformtoencourageemployeestoreportfraudfindings.

(7)Socialhonour:DongfangPrecisionisaState-levelHigh-techEnterpriseandwonhonorarytitlesincluding"Top500PrivateManufacturingEnterprisesinChina","LeadingEnterprisesinSubdividedIndustriesinFoshan",and"GuangdongProvincialIndustrialDesignCentre".ThesubsidiaryFosberAsiawonhonorarytitlesincluding"GuangdongDemonstrationEnterpriseofIntellectualProperty".ThesubsidiaryWonderDigitalhasbeensuccessfullyselectedasaState-level"LittleGiant"enterprisewithspecialties,refinedmanagement,uniquetechnologiesandinnovation.ThesubsidiaryParsunPowerisaState-level"LittleGiant"enterprisewithspecialties,refinedmanagement,uniquetechnologiesandinnovation,aState-levelHigh-techEnterpriseanengineeringtechnologyresearchcentreforoutboardmotorsinJiangsuProvince,anenterprisetechnologycentrerecognisedbyJiangsuProvince,aleadingenterpriseinChina'sinternalcombustionengineindustryandadirectorunitoftheSmallGasolineEngineBranchofChinaInternalCombustionEngineIndustryAssociation.TheoutboardmotorsofParsunPowerhavealsowonmanyhonourssuchasthecertificateofindustrialisationdemonstrationprojectofnationaltorchplan,innovativeproductofChinamachineryindustry,famousbrandproductofJiangsuprovinceandfamousbrandproductofSuzhoucity.IIIEffortsinPovertyAlleviationandRuralRevitalizationTheCompanydidnotconductactivitiesrelatedtotargetedpovertyalleviationintheReportingYear,nordiditdevelopanysubsequentplanfortargetedpovertyalleviation.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PartVISignificantEvents

IFulfillmentofUndertakings

1.UndertakingsoftheCompany’sActualController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandotherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-end

√Applicable□Notapplicable

Causeofundertakings

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Causeofundertakings

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Causeofundertakings

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Causeofundertakings

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Causeofundertakings

2.WheretherehadbeenanearningsforecastforanassetorprojectandtheReportingPeriodwasstillwithintheforecastperiod,explainwhytheforecasthasbeenreachedfortheReportingPeriod.

□Applicable√NotapplicableIIOccupationoftheCompany’sCapitalbytheControllingShareholderorItsRelatedPartiesforNon-OperatingPurposes

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IIIIrregularitiesinProvisionofGuarantees

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IVExplanationsGivenbytheBoardofDirectorsRegardingtheLast“ModifiedOpinion”onFinancialStatements

□Applicable√Notapplicable

VExplanationsGivenbytheBoardofDirectors,theSupervisoryCommitteeandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod

□Applicable√NotapplicableVIYoYChangestoAccountingPoliciesandEstimatesandCorrectionofMaterialAccountingErrors

√Applicable□Notapplicable

OnDecember6,2024,theMinistryofFinanceissuedthe"InterpretationNo.18oftheAccountingStandards",whichfurtherstandardizedandclarifiedtheaccountingtreatmentofwarranty-typequalityguaranteesthatarenotsingle-performanceobligations.Thisinterpretationshallcomeintoforcefromthedateofitsissuance,andenterprisesareallowedtoimplementitinadvancefromtheyearofitsrelease.Whenanenterpriseaccountsfortheestimatedliabilityarisingfromawarranty-typequalityguaranteethatisnotasingle-performanceobligation,itshall,inaccordancewiththerelevantprovisionsofthe"AccountingStandardforEnterprisesNo.13-ContingentEvents",debittheaccountssuchas"mainbusinesscost"and"otherbusinesscost"forthedeterminedamountoftheestimatedliability,andcreditthe"estimatedliability"account,andaccordinglypresentitinthe"operatingcost"itemintheincomestatementandtheitemssuchas"othercurrentliabilities","non-currentliabilitiesduewithinoneyear",and"estimatedliability"inthebalancesheet.

Whenanenterprisefirstimplementsthecontentofthisinterpretation,iftheoriginalprovisionforwarrantytypequalityguaranteesisincludedinthe"sellingexpenses",itshalltreatthechangesasachangeinaccountingpoliciesandmakeretroactiveadjustments.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Thecompanyhasimplementedtheabove-mentionedprovisions.In2024,theestimatedliabilityarisingfromtheprovisionforqualityguaranteefundsthatmeetstherequirementsisincludedinthemainbusinesscost,andtherelevantaccountingtreatmentin2023isretroactivelyadjustedasachangeinaccountingpolicies.VIIYoYChangestotheScopeoftheConsolidatedFinancialStatements

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

VIIIEngagementandDisengagementofIndependentAuditorCurrentindependentauditor:

Nameofthedomesticindependentauditor

IndicatewhethertheindependentauditorwaschangedfortheReportingPeriod.

□Yes√NoIndependentauditor,financialadvisororsponsorhiredfortheauditofinternalcontrol:

√Applicable□NotapplicableErnst&YoungHuaMingLLPwasappointedastheindependentauditorofinternalcontrolfortheCompanyfor2024forafeeofRMB300,000.IXPossibilityofDelistingaftertheDisclosureofthisReport

□Applicable√Notapplicable

XInsolvencyandReorganization

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XISignificantLegalMatters

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIPunishmentsandRectifications

□Applicable√Notapplicable

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

XIIICreditQualityoftheCompanyaswellasItsControllingShareholderandActualController

□Applicable√Notapplicable

XIVSignificantRelated-PartyTransactions

1.ContinuingRelated-PartyTransactions

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInvestments

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

3.Related-PartyTransactionsRegardingJointInvestmentsinThirdParties

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

4.AmountsDuetoandfromRelatedParties

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

5.TransactionsbetweentheCompanyandRelatedFinancialCompanies

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

6.TransactionsbetweenFinancialCompaniesControlledbytheCompanyandRelatedParties

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

7.OtherSignificantRelated-PartyTransactions

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVSignificantContractsandExecutionthereof

1.Entrustment,ContractingandLeases

(1)Entrustment

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

(2)Contracting

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

(3)Leases

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

2.SignificantGuarantees

√Applicable□Notapplicable

Unit:RMB'0,000

GuaranteesprovidedbytheCompanyastheparentanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries)

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

guaranteetookeffectto30June2024

3.CashEntrustedtoOtherEntitiesforManagement

(1)CashEntrustedforWealthManagement

√Applicable□NotapplicableOverviewofwealthmanagemententrustmentsintheReportingPeriod:

Unit:RMB’0,000

High-riskwealthmanagementtransactionswithasignificantsingleamountorwithlowsecurityandlowliquidity:

□Applicable√NotapplicableWealthmanagementtransactionswheretheprincipalisexpectedlyirrecoverableoranimpairmentmaybeincurred:

√Applicable□Notapplicable

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

AsoftheendoftheReportingPeriod,theunrecoveredamountoftrustproductswasRMB3.5862million,forwhichanimpairmentallowanceofRMB3.5862millionwasestablished.

(2)EntrustedLoans

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

4.OtherSignificantContracts

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIOtherSignificantEvents

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XVIISignificantEventsofSubsidiaries

□Applicable√Notapplicable

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PartVIIShareChangesandShareholderInformationIShareChanges

1.ShareChanges

Unit:share

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Before

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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individuals

Reasonsforsharechanges:

√Applicable□Notapplicable

1.Cancellationof21,572,060repurchasedsharesOnFebruary1,2024,thecompanydisclosedthe"AnnouncementontheCompletionoftheShareRepurchaseImplementationandShareChanges",announcingthecompletionoftheimplementationofthe2023annualsharerepurchaseplanlaunchedinJanuary2023.Duringtheimplementationperiodofthissharerepurchase,thecompanycumulativelyrepurchasedapproximately21,572,060sharesofthecompanythroughcentralizedbiddingtransactions,accountingforapproximately1.74%ofthecompany'stotalsharecapital.Thehighesttransactionpricewas4.89yuanpershare,thelowesttransactionpricewas4.50yuanpershare,andthecumulativetotalpaymentamountwasapproximately100.7755millionyuan(excludingtransactionfees).OnMarch4,2024,thecompanyreleasedthe"AnnouncementontheCompletionoftheRepurchasedShareCancellationandShareChanges".Theabove-mentioned21,572,060repurchasedpublicshareshadbeencancelled.

2.Unlockingofsomerestrictedshares

(1)UnlockingofrestrictedsharesundertheequityincentiveplanOnFebruary26,2024,thesharessubjecttotheunlockingofthethirdrestrictedshareunlockingperiodofthereservedgrantportionofthecompany's2020RestrictedStockIncentivePlanwerereleased,andthetotalnumberofsharesreleasedwas1,632,000shares.

(2)ChangesinlockedsharesheldbyseniorexecutivesInMarch2024,thetermofofficedetermineduponMr.ZhouWenhui'sassumptionofofficeasadirectorhadexpiredandsixmonthshadpassedsincetheexpiration.Thesharesheldbyhimwerelegallyunlockedandbecametradableshares.Approvalofsharechanges:

√Applicable□NotapplicableDuringthereportingperiod,formatterssuchas"thereleasefortradingofthesharessubjecttotheunlockingofthethirdrestrictedshareunlockingperiodofthereservedgrantportionofthe2020RestrictedStockIncentivePlan"and"thecancellationoftherepurchasedshares",thecompanyhasfulfilledthenecessaryapprovalproceduresofthegeneralmeetingofshareholdersandtheboardofdirectorsinaccordancewithlaws,regulationsandtheprovisionsoftheArticlesofAssociationoftheCompany.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Transferofshareownership:

√Applicable□NotapplicableIntheReportingPeriod,withrespecttothetransfersofshareownershipinvolvedinthe“cancellationofsomerepurchasedshares”,theCompanycompletedthetransferswiththeShenzhenbranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.aftertheywereapprovedbytheShenzhenStockExchange.Effectsofsharechangesonthebasicearningspershare,dilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:

□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:

□Applicable√Notapplicable

2.ChangesinRestrictedShares

√Applicable□Notapplicable

Unit:share

/

Shareholder

3.ChangesinRestrictedSharesbetweentheEndoftheReportingPeriodandtheDateofThisReportDisclosureInJanuary2025,duetothefailuretoachievethecompany-levelperformanceassessmenttargetsforthesecondrestrictedshareunlockingperiodoftheCompany's2022restrictedstockincentiveplan,880,000restrictedshareswererepurchasedandcancelled.Meanwhile,asoneemployeewhoparticipatedintheequityincentiveplanterminatedthelaborrelationshipwiththecompany,another400,000restrictedshareswererepurchasedandcancelled.Afterthecompletionofthisrepurchaseandcancellation,thetotalsharecapitalofthecompanywaschangedfrom1,219,046,340sharesto1,217,766,340shares.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

IIIssuanceandListingofSecurities

1.Securities(ExclusiveofPreferenceShares)IssuedintheReportingPeriod

□Applicable√Notapplicable

2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures

□Applicable√Notapplicable

3.ExistingStaff-HeldShares

□Applicable√NotapplicableIIIShareholdersandActualController

1.ShareholdersandTheirShareholdingsatthePeriod-End

Unit:share

/

Numberofordinaryshareholdersattheperiod-end

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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Limited

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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includingthespecialaccountofrepurchasedshares(ifany)

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

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business(ifany)

Shareholdersholdingmorethan5%ofshares,thetop10shareholdersandthetop10unrestrictedtradableshareholdersparticipatingintherefinancingshareslendingbusiness.

□Applicable√NotapplicableThetop10shareholdersandthetop10unrestrictedtradableshareholdershavechangedcomparedwiththepreviousperiodduetothelending/returningreasonsintherefinancingshareslendingbusiness.

□Applicable√NotapplicableIndicatewhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanyagreedrepurchasetransactionsduringtheReportingPeriod.

□Yes√NoNosuchcasesintheReportingPeriod.

2.ControllingShareholderNatureofthecontrollingshareholder:controlledbyanindividualTypeofthecontrollingshareholder:individual

business(ifany)Nameofthecontrollingshareholder

ChangeofthecontrollingshareholderintheReportingPeriod:

□Applicable√NotapplicableNosuchcasesintheReportingPeriod.

3.ActualControllerandActing-in-ConcertPartiesNatureoftheactualcontroller:domesticindividual

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

TheactualcontrolleroftheCompanyremainedunchangedduringtheReportingPeriod.OwnershipandcontrolrelationshipbetweentheactualcontrollerandtheCompany:

IndicatewhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.

□Applicable√Notapplicable

4.SharesCumulativelyPutinPledgebytheCompany’sControllingShareholderorBiggestShareholderandItsActing-in-ConcertPartiesAccountingfor80%ofTheirShareholdingsintheCompany

□Applicable√Notapplicable

5.Other10%orGreaterCorporateShareholders

□Applicable√Notapplicable

6.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers

□Applicable√Notapplicable

IVShareRepurchaseintheReportingPeriod

Progressonanysharerepurchase:

√Applicable□Notapplicable

/

Disclosuredateoftherepurchaseplan

TangZhuomian

GuangdongDongfangPrecisionScience&

TechnologyCo.,Ltd.

GuangdongDongfangPrecisionScience&

TechnologyCo.,Ltd.

21.44%

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

/

andnomorethanRMB200million(inclusive)

Progressonreducingtherepurchasedsharesbywayofcentralizedbidding:

□Applicable√Notapplicable

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PartVIIIPreferenceShares

□Applicable√NotapplicableNopreferencesharesintheReportingPeriod.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PartIXCorporateBonds

□Applicable√Notapplicabl

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

PartXCorporateFinancialStatement

I.Auditor’sReport

TypeofAuditOpinion

Auditor’sReport

Ernst&YoungHuaMing(2025)Auditor’sReportNo.70022785_G01

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.

TotheShareholdersofGuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.,I.OpinionWehaveauditedthefinancialstatementsofGuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.(hereinafterreferredtoasthe“Company”),whichcomprisetheconsolidatedandtheCompany’sbalancesheetsasat31December2024,theconsolidatedandtheCompany’sincomestatements,theconsolidatedandtheCompany’sstatementsofchangesinequityandtheconsolidatedandtheCompany’sstatementsofcashflowsfortheyearthenended,andnotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedandtheCompany’sfinancialpositionasat31December2024,andtheconsolidatedandtheCompany’sfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprises(“ASBEs”).II.BasisforOpinionWeconductedourauditinaccordancewithChina’sStandardsonAuditing“CSAs”.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewithChinaCodeofEthicsforCertifiedPublicAccountants(the“Code”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.III.KeyAuditMatterKeyauditmatteristhematterthat,inourprofessionaljudgment,wasofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thismatterwasaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthismatter.Forthematterbelow,ourdescriptionofhowourauditaddressedthematterisprovidedinthatcontext.WehavefulfilledourresponsibilitiesdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport,includinginrelationtothesematters.Accordingly,ourauditincludedtheperformanceofproceduresdesignedtorespondtoourassessmentoftherisksofmaterialmisstatementsofthefinancialstatements.Theresultsofourauditprocedures,includingprocedures

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

performedtoaddressthematterbelow,providethebasisforouropinionontheaccompanyingfinancialstatements.

Keyauditmatter:

IV.OtherInformationThemanagementoftheCompanyisresponsiblefortheotherinformation.Theotherinformationcomprisesalloftheinformationincludedintheannualreport,otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsThemanagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewithASBEs,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoensurethepreparationoffinancialstatementstobefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernand

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

usingthegoingconcernbasisofaccounting,unlessthemanagementeitherintendstoliquidateortoceaseoperations,orhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.VI.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholeare

freefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithCSAs,weexerciseprofessionaljudgmentandmaintain

professionalskepticismthroughouttheaudit.Wealso:

(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherdueto

fraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignaudit

proceduresthatareappropriateinthecircumstances.

(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessof

accountingestimatesandrelateddisclosuresmadebythemanagement.

(4)Concludeontheappropriatenessofthemanagement’suseofthegoingconcernbasisof

accountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,andifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.

(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthe

disclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

(6)Obtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesor

businessactivitieswithintheCompanytoexpressanauditopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.VI.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements(Cont’d)Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards(ifapplicable).Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethematterthatwasofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandisthereforethekeyauditmatter.Wedescribethismatterinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.AnnualReport2024

Ernst&YoungHuaMingLLP

ImportantNoticeThisauditor’sreportisanEnglishtranslationoftheauditor’sreportfortheauditengagementswhichadoptCSAs.IncasetheEnglishversiondoesnotconformtotheChineseversion,theChineseversionprevails.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.ConsolidatedBalanceSheetAsat31December2024ExpressedinRenminbiYuan

/

Assets

Currentassets

Totalcurrentassets

Non-currentassets

Totalnon-currentassets

Totalassets

Theaccompanyingnotestothefinancialstatementsformanintegralpartofthefinancialstatements.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.ConsolidatedBalanceSheetAsat31December2024ExpressedinRenminbiYuan

/

Liabilitiesandequity

Currentliabilities

Totalcurrentliabilities

Non-currentliabilities

Totalnon-currentliabilities

Totalliabilities

Theaccompanyingnotestothefinancialstatementsformanintegralpartofthefinancialstatements.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.ConsolidatedBalanceSheetAsat31December2024ExpressedinRenminbiYuan

/

Liabilitiesandequity

Equity

Totalequityattributabletoownersoftheparent

Non-controllinginterests

Totalequity

Totalliabilitiesandequity

Thefinancialstatementshavebeensignedby:

Legalrepresentative:TangZhuolinChiefFinancialOfficer:ShaoYongfengHeadofAccountingDepartment:ChenLinTheaccompanyingnotestothefinancialstatementsformanintegralpartofthefinancialstatements.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.ConsolidatedIncomeStatement2024ExpressedinRenminbiYuan

/

NoteV

Operatingrevenue

Operatingprofit

Profitbeforeincometaxes

Netprofit

Netprofitclassifiedbycontinuingoperations

Netprofitclassifiedbyattributionofownership

Theaccompanyingnotestothefinancialstatementsformanintegralpartofthefinancialstatements.

GuangdongDongfangPrecisionScience&TechnologyCo.,Ltd.ConsolidatedIncomeStatement2024ExpressedinRenminbiYuan

/

NoteV

Othercomprehensiveincome,netoftax

Othercomprehensiveincomeattributabletoownersoftheparent,netoftax

Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss

Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss

Othercomprehensiveincomeattributabletonon-controllinginterests,netoftax

Totalcomprehensiveincome

Earningspershare

Theaccompanyingnotestothefinancialstatementsformanintegralpartofthefinancialstatements.

ConsolidatedStatementofChangesinEquityYearended31December2024ExpressedinRenminbiYuan

2024

Equityattributabletoownersoftheparent

I.

II.

III.

ConsolidatedStatementofChangesinEquity(Cont’d)Yearended31December2024ExpressedinRenminbiYuan

IV.

Theaccompanyingnotestothefinancialstatementsformanintegralpartofthefinancialstatements.

ConsolidatedStatementofChangesinEquity(Cont’d)Yearended31December2024ExpressedinRenminbiYuan

2023

Equityattributabletoownersoftheparent

I.

II.

(I)

ConsolidatedStatementofChangesinEquity(Cont’d)Yearended31December2024ExpressedinRenminbiYuan

III.

Theaccompanyingnotestothefinancialstatementsformanintegralpartofthefinancialstatements.

ConsolidatedStatementofCashFlowsYearended31December2024ExpressedinRenminbiYuan

/

NoteV

Proceedsfromsaleofgoodsandrenderingofservices

Subtotalofcashgeneratedfromoperatingactivities

Paymentsforgoodsandservices

Subtotalofcashusedinoperatingactivities

Netcashgeneratedfromoperatingactivities

II.

Proceedsfromdisinvestment

Subtotalofcashgeneratedfrominvestingactivities

Paymentsfortheacquisitionoffixedassets,intangibleassetsandotherlong-livedassets

Subtotalofcashusedininvestingactivities

Netcashgeneratedusedininvestingactivities

Theaccompanyingnotestothefinancialstatementsformanintegralpartofthefinancialstatements.

ConsolidatedStatementofCashFlows(Cont’d)Yearended31December2024ExpressedinRenminbiYuan

/

NoteV

III.

Borrowingsraised

Subtotalofcashgeneratedfromfinancingactivities

Repaymentofborrowings

Subtotalofcashusedinfinancingactivities

Netcashgeneratedfrom/usedinfinancingactivities

IV.

V.

VI.

Theaccompanyingnotestothefinancialstatementsformanintegralpartofthefinancialstatements.

BalanceSheet31December2024ExpressedinRenminbiYuan

/

Assets

Currentassets

Totalcurrentassets

Non-currentassets