CHANGHONG MEILING

CO., LTD.

Annual Report 2025

Section I Important Notice, Contents and Interpretation

Board of directors, all directors and senior executives of Changhong Meiling Co., Ltd.(hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements,misleading statements, or important omissions carried in this report, and shall take allresponsibilities, individual and/or joint, for the reality, accuracy and completion of the wholecontents.Mr. Li Xiaodong, Chairman of the Company, Mr. Yang Bing, person in charge of accountingwork and Mr. Hu Xiangfei, person in charge of accounting organ (accountant in charge) herebyconfirm that the Financial Report of 2025 Annual Report is authentic, accurate and complete.The Company did not have directors and senior executives of the Company could notguarantee the reality, accuracy and completion of the whole contents or have objections.All the directors attended the board meeting to deliberating the Report.Modified audit opinions notes

□ Applicable √ Not applicable

Pan-China Certified Public Accountants LLP issued a standard unqualified audit opinion forthe Company’s 2025 annual financial report.

Significant internal control deficiency notes

□ Applicable √ Not applicable

During the reporting period, the Company had no significant internal control deficiencies.

Risk warning of concerning the forward-looking statements with future planning involved inthe annual report

√ Applicable □ Not applicable

Concerning the forward-looking statements with future planning involved in the Report, theydo not constitute a substantial commitment for investors, investors and the person concernedshould maintain adequate risk awareness, furthermore, differences between the plans, forecast andcommitments should be comprehended. Investors are advised to exercise caution of investmentrisks.

Investors are advised to read the full text of the annual report, and pay particular attention tothe following risk factors:

More details about the possible risks and countermeasures in the operation of the Companyare described in the Report “XI. Outlook for the Company’s Future Development” of “Section III

Management Discussion and Analysis”. Investors are advised to read the relevant content.Securities Times, China Securities Journal and Juchao Website (www.cninfo.com.cn) are themedia for information disclosure for year of 2026 that appointed by the Company. All publicinformation under the name of the Company disclosed on the above said media and website shallprevail, and investors are advised to exercise caution.Does the Company need to comply with disclosure requirements of the special industry: NoProfit distribution pre-plan or capital reserve capitalization pre-plan deliberated by the boardof directors in the reporting period

√ Applicable □ Not applicable

Is the statutory reserve capitalized into share capital?

□ Yes √ No

The profit distribution proposal approved by the 28th meeting of the 11th Board of Directorsis as follows: Based on the total share capital of the Company, which is 1,029,923,715 shares, lessthe number of shares held in the dedicated securities account for share repurchase, a cash dividendof RMB 2.10 (including tax) will be distributed to all shareholders for every 10 shares. No bonusshares will be issued, and no capital reserves will be converted into share capital.As of the end of the reporting period, the parent company had unabsorbed losses.

□ Applicable √ Not applicable

Contents

Section I Important Notice, Contents and Interpretation ...... 2

Section II Company Profile and Main Financial Indexes ...... 8

Section III Management Discussion & Analysis ...... 15

Section IV Corporate Governance, Environmental and Social Responsibility ...... 57

Section V Important Events ...... 92

Section VI Changes in Shares and Shareholders ...... 184

Section VII Bond Related Situation ...... 195

Section VIII Financial reporting ...... 196

Documents Available for Reference

I. Financial statement carrying the signatures and seals of the Chairman, principal of theaccounting works and person in charge of accounting organ;II. The original audit report stamped by the accounting firm and signed and stamped by thecertified public accountant.III. Original documents of the Company and manuscripts of public notices that disclosed inthe website designated by CSRC in the reporting period.

Definition

to

Section II Company Profile and Main Financial IndexesI. Company Profile

II. Person/Way to Contact

Tel.

III. Information Disclosure and Storage Location

IV. Changes in Registration

Company’s total share capital) and became the Company’s third-largest shareholder.

6. On October 29, 6.2008, Changhong Group and Sichuan Changhong entered into the EquityTransfer Agreement of Hefei Meiling Co., Ltd., pursuant to which Changhong Group transferred32,078,846 restricted tradable A shares of Meiling Electric to Sichuan Changhong by agreement.On December 23, 2008, the transfer was approved by the State-owned Assets Supervision andAdministration Commission of the State Council in the Reply on Issues Concerning the Transfer ofShares Held by State-owned Shareholders of Hefei Meiling Co., Ltd. (G.Z.C.Q. [2008] No. 1413).On January 21, 2009, the securities transfer registration procedures were completed with the ChinaSecurities Depository and Clearing Corporation Limited Shenzhen Branch, and Sichuan Changhongbecame the Company’s largest shareholder.

7. Sichuan Changhong increased its shareholding in the Company through participation in theCompany’s targeted additional issuance and through secondary market purchases of the Company’sshares by Sichuan Changhong and its concerted party, Hong Kong Changhong. As of December 31,2025, Sichuan Changhong and its concerted party, Hong Kong Changhong, collectively held281,832,434 shares of the Company, representing 27.36% of the Company’s total share capital.Sichuan Changhong directly holds 248,457,724 A-shares, representing 24.12% of the Company’stotal share capital, and Hong Kong Changhong holds 33,374,710 B-shares, representing 3.24% ofthe Company’s total share capital (of which Hong Kong Changhong holds 6,296,913 B-sharesthrough Phillip Securities (Hong Kong) Limited, representing 0.61%).

Company’s total share capital) and became the Company’s third-largest shareholder.

6. On October 29, 6.2008, Changhong Group and Sichuan Changhong entered into the EquityTransfer Agreement of Hefei Meiling Co., Ltd., pursuant to which Changhong Group transferred32,078,846 restricted tradable A shares of Meiling Electric to Sichuan Changhong by agreement.On December 23, 2008, the transfer was approved by the State-owned Assets Supervision andAdministration Commission of the State Council in the Reply on Issues Concerning the Transfer ofShares Held by State-owned Shareholders of Hefei Meiling Co., Ltd. (G.Z.C.Q. [2008] No. 1413).On January 21, 2009, the securities transfer registration procedures were completed with the ChinaSecurities Depository and Clearing Corporation Limited Shenzhen Branch, and Sichuan Changhongbecame the Company’s largest shareholder.

7. Sichuan Changhong increased its shareholding in the Company through participation in theCompany’s targeted additional issuance and through secondary market purchases of the Company’sshares by Sichuan Changhong and its concerted party, Hong Kong Changhong. As of December 31,2025, Sichuan Changhong and its concerted party, Hong Kong Changhong, collectively held281,832,434 shares of the Company, representing 27.36% of the Company’s total share capital.Sichuan Changhong directly holds 248,457,724 A-shares, representing 24.12% of the Company’stotal share capital, and Hong Kong Changhong holds 33,374,710 B-shares, representing 3.24% ofthe Company’s total share capital (of which Hong Kong Changhong holds 6,296,913 B-sharesthrough Phillip Securities (Hong Kong) Limited, representing 0.61%).

V. Other Relevant Information(I) Accounting firm engaged by the Company

(II) Sponsor engaged by the Company for continuous supervision during the reportingperiod

□ Applicable √ Not applicable

(III) Financial advisor engaged by the Company for continuous supervision during thereporting period

□ Applicable √ Not applicable

VI. Main Accounting Data and Financial Indexes

Does it have retroactive adjustment or re-statement on previous accounting data?

□ Yes √ No

Retroactive adjustment or re-statement

with the sameperiod of theprevious year

The Company's net profit before and after deducting non-recurring gains and losses for thelast three accounting years has been negative, and the most recent audit report indicatesuncertainty regarding the Company’s ability to continue as a going concern

□ Yes √ No

During the reporting period, the lowest of the audited total profit, net profit, and net profitafter deducting non-recurring gains and losses was negative.

□ Yes √ No

VII. Accounting Data Difference under Domestic and Foreign Accounting Standards(I) Difference of the net profit and net assets disclosed in financial report, under bothIAS (International Accounting Standards) and Chinese GAAP (Generally AcceptedAccounting Principles)

□ Applicable √ Not applicable

The Company has no difference of the net profit and net assets disclosed in financial report,under both IAS (International Accounting Standards) and Chinese GAAP (Generally AcceptedAccounting Principles) in the reporting period.(II) Difference of the net profit and net assets disclosed in financial report, under bothforeign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable

The Company had no difference of the net profit or net assets disclosed in financial report,under either foreign accounting rules or Chinese GAAP (Generally Accepted AccountingPrinciples) in the reporting period.

(III) Reasons for the differences of accounting data under accounting rules in and outof China

□ Applicable √ Not applicable

VIII. Key Financial Indicators by Quarter

Unit: RMB

Do the above financial indicators or their totals differ significantly from the relevantfinancial indicators disclosed in the Company’s quarterly or semi-annual reports?

□ Yes √ No

IX. Items and Amounts of Non-recurring Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Details of other gains/losses items that meets the definition of non-recurring gains and losses:

□ Applicable √ Not applicable

There are no other gains/losses items that meet the definition of non-recurring gains andlosses in the Company.Explain the items defined as recurring gains and losses according to the lists of non-recurringgains and losses in Q&A Announcement No.1 on Information Disclosure for Companies OfferingTheir Securities to the Public --- Non-recurring Gains and Losses

□ Applicable √ Not applicable

There are no items defined as recurring profit (gain)/loss according to the lists of non-recurring gains and losses in Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Non-recurring Gains and Losses.

Section III Management Discussion & Analysis

I. Principal Business of the Company During the Reporting PeriodThe Company is one of the important electrical appliance manufacturers in China, with fourdomestic manufacturing bases in Hefei, Mianyang, Jingdezhen, and Zhongshan, as well asoverseas manufacturing bases in countries such as Indonesia. After more than 40 years ofdevelopment, the Company has evolved from a single refrigerator product line to a new multi-category collaborative ecosystem encompassing refrigerators (freezers), air conditioners, washingmachines, major kitchen appliances, small home appliances, and biomedical cryogenic storageequipment.

The Company is a national level benchmark enterprise for technological innovation,carefully building its core competitiveness through technological and product innovation. Withthe advanced R&D team and advanced technology accumulation, Meiling has made continuousbreakthroughs in key technological fields, such as intelligence, preservation, thin wall,odourlessness, energy saving, air cooling, deep cooling, simulation, ultra-thin, cleaning andclothing care. The Company has a comprehensive system for technological innovation and qualitycontrol. Based on international management system certifications such as ISO9001 and ISO14001,and relying on multiple national core platforms and qualifications, the Company continues tostrengthen its R&D and manufacturing capabilities. The Company possesses a National-levelEnterprise Technology Center, a National-level Industrial Design Center, and holds titlesincluding National Technology Innovation Demonstration Enterprise, National Industrial ProductGreen Design Demonstration Enterprise, and National Postdoctoral Research Workstation. It hasalso established a 5G Industrial Internet Innovation Application Lab and founded AnhuiProvince's first RoHS Public Testing Center, Anhui Green & Energy-Efficient RefrigeratorEngineering Technology Research Center, Anhui Energy-Saving & Freshness-Preserving GreenRefrigerator Engineering Research Center, and Anhui Smart Home Appliance ManufacturingInnovation Center, ensuring full-chain quality assurance in R&D and manufacturing. In addition,the Company also operates provincial-level innovation platforms such as the Anhui Green &Energy-Efficient Refrigerator Engineering Technology Research Center. In addition, the Companyalso operates provincial-level innovation platforms such as the Anhui Green & Energy-EfficientRefrigerator Engineering Technology Research Center. It has also obtained industry-leadingcertifications, including AAA-Level Excellence in the Upgraded Integration of Informatizationand Industrialization Management System and a spot among China's Top 50 IndustrialDigitalization Leading Enterprises, further strengthening its technological leadership, R&Defficiency, and smart manufacturing capabilities.In recent years, the Company has won multiple national honors such as the "Smart

Refrigerator Intelligent Manufacturing Pilot Demonstration Project", "National Green Factory","National Quality Leader in Home Appliances", "National Technology Innovation DemonstrationEnterprise", and "China Industry-University-Research Collaborative Innovation DemonstrationEnterprise". In 2025, the Ministry of Industry and Information Technology (MIIT) announced thefirst batch of "China Consumer Premium Brands", and Changhong Meiling was successfullyselected. At the same time, with its strong innovation, product strength, and brand power, theCompany received multiple honors for technological and product innovation, continuouslyshowcasing its capabilities in smart innovation technology. At the 2025 Digital EcosystemConference, the Company won two prestigious "Top Cloud Connect Awards" for its outstandingperformance in technological breakthroughs and product innovation, namely "2025 EcosystemBrand" and "2024-2025 Trending Product." At the 2025 Refrigerator Industry DevelopmentConference, the National Household Appliance Industry Information Center officially awardedthe Company the title of "Healthy and Smart Manufacturing Brand," further highlighting theCompany’s comprehensive brand development strength.Since 2025, the Company's M-Fresh Premium Five-Door Refrigerator (511WQ6F) featuringindustry-leading "Fresh-Lock" Technology (Water Molecule Activation Preservation) has won theAWE Innovation Award for its groundbreaking innovation that extends rose preservation to 33days, driving industry upgrades in fresh-keeping technology; the Company's newly launched SlimZero-Embed Refrigerator (BCD-507WPU9CDZX/BCD-503WPU9CDZX) received theprestigious iF Design Award; Meiling 10KG Flush-Embedded As Hand Washing Drum Washer(RS21H100D/RS11H100D) was certified as a "Good Product" by China Household ElectricAppliance Research Institute (CHEARI); Its Living Room Pro Shared Air Conditioner achieved"Annual Energy-Saving & Low-Carbon Product" recognition from Chinese Association ofRefrigeration (CAR) for its ultra-grade-I efficiency (APF 5.20) and AI cloud energy-savingtechnology, saving 759kWh/year and reducing 757kg carbon emissions per unit, and setting thenew "Smart Cooling & Low-Carbon" industry benchmark with its green design; Meiling's GasWater Heater (JSQ30-MR-BS16A3) won two 2025 FT Quality Awards for "Energy EfficiencyBenchmark" and "Usage Comfort"; Meiling Range Hood (CXW-188-MY-KD615Pro) securedtwo 2025 FT Quality Awards for "Low-Noise Benchmark" and "Power-Saving Benchmark".

The Company has continuously achieved breakthrough results in the fields of refrigerators,freezers, air conditioners, washing machines, major kitchen appliances, small home appliancesand biomedicine, progressively establishing a dominant industrial matrix centered on large whitegoods. Looking ahead, the Company will adhere to the business policy of "innovation-drivendevelopment, resource integration, industrial synergy, marketing transformation and digitaltransformation" to continuously lead industry upgrading and strengthen market foundations.

During the reporting period, the Company's revenue was primarily generated from itsrefrigerator (freezer), air conditioner, washing machine, major kitchen appliance, small home

appliance, and biomedical equipment businesses, with a total revenue reaching RMB 30.133billion, accounting for 99.09% of the Company's total operating revenue.II. Industry Overview During the Reporting Period(I) Refrigerator industryIn the domestic market, the home appliance sector entered a deep consolidation period in2025, impacted by both policy adjustments and industry transformation. Although nationalsubsidy policies have driven an upgrade in demand for replacements, the overall market continuesto face pressure as the policy benefits gradually decline. According to data from AVC, the totalretail sales of refrigerators across all channels in 2025 amounted to RMB 127.1 billion, a decreaseof 11.5% year-on-year. Against this backdrop, corporate strategies are rapidly shifting towardslong-termism and structural restructuring. The core of competition has evolved from a price battleon hardware to a deeper alignment with user emotions and value recognition. In the face ofchannel fragmentation and consumer transformation, achieving precise reach through new retailmodels and adapting to the full range of consumer needs has become a critical path for companiesto reshape the industry landscape and build a sustainable business logic.In terms of exports, according to ChinaIOL data, the export volume of refrigerators in 2025was 54.04 million units, a year-on-year increase of 4.2%. Global demand shows a polarization:

Demand in Europe and the U.S. has weakened due to high inflation, while emerging marketsmaintain strong growth momentum. Among them, South America saw stable growth due to easinginflation, though there are policy uncertainties in 2026; Africa's growth rate has slowed; SoutheastAsia’s demand continues to increase, but competition from local manufacturers and Chineseexports is intensifying. Meanwhile, the industry structure continues to move upwards, with globalnew standards accelerating the adoption of energy-saving and variable-frequency technologies.Trends toward product upgrades and larger capacities are ongoing, and AI smart applications andChina’s flush-embedded design philosophy are gaining traction globally. Overall, the exportmarket faces multiple competitive pressures but also presents new opportunities for growth inemerging markets and industry upgrades.(II) Air conditioning industryIn 2025, the domestic air conditioning industry experienced significant fluctuations,characterized by a "high first and low later trend with rapid changes in both cooling and heatingdemands". In the first half of the year, high temperatures and strong subsidy policies for replacingold units drove a strong market growth. However, starting from March 15, a price war erupted inthe industry and continued to intensify, reaching unprecedented levels by June 18. In the secondhalf of the year, demand was severely depleted, and with weaker subsidies, the market situationdeteriorated rapidly. Despite large-scale promotions during the Double Eleven Shopping Festival,consumer sentiment showed signs of fatigue, and the year overall exhibited a clear "high first and

low later" pattern. According to AVC data, the total retail sales of air conditioners across allchannels in 2025 amounted to RMB 235.7 billion, a slight decrease of 0.4% year-on-year.In terms of exports, China’s air conditioning export market showed a "high first, low later"trend in 2025. In the first half of the year, influenced by the expected increase in U.S. tariffs,companies rushed to ship goods in advance to avoid risks, creating a peak in export activity. Thistemporarily boosted export figures but also exhausted future demand, leading to a sharp increasein inventory levels across major overseas markets. As tariffs were fully implemented, and withinventory levels in key markets such as Europe and Latin America at high levels, export growthslowed sharply in the second half of the year, resulting in a prolonged year-on-year decline.According to ChinaIOL data, the total export volume of air conditioners in 2025 was 82.28million units, a decrease of 3.2% year-on-year.(III) Washing machine industryIn 2025, the home appliance industry accelerated its restructuring. Adjustments in nationalsubsidy policies had a significant impact on the domestic market, leading to a "high first, lowlater" trend in washing machine sales. According to AVC data, the total retail sales of washingmachines in 2025 amounted to RMB 96.3 billion, a decrease of 4.6% year-on-year. In terms ofexports, the washing machine industry faced significant pressure from factors such as globaleconomic downturn, U.S. tariff hikes, and geopolitical conflicts, leading to a slowdown in exportorder growth. According to ChinaIOL data, the total export volume of washing machines in 2025was 51.21 million units, an increase of 13.5% year-on-year.

III. Core Competitiveness Analysis(I) Brand influenceThe Company is one of the well-known electrical appliance manufacturers in China, with acomprehensive industrial portfolio covering refrigerators, freezers, air conditioners, washingmachines, major kitchen appliances, small home appliances, and biomedical equipment. In 2025,the Company continued to deepen its "Brand Revitalization" strategy, focusing on the brandproposition of "Beautiful China, Fresh Meiling," adhering to the principle of prioritizing productexcellence and leveraging innovation to shape the image, promoting steady progress in brandrecognition.

1. Deepening the Brand Proposition and Planting the Seed of “Freshness" inConsumers' MindsIn 2025, by developing the freshest products, it will aim to plant the seed of "freshness" inconsumers' minds, continuously molding the brand association of "Meiling = Fresh." In its brandcommunication, the Company consistently implemented the brand mission "Meiling, BringingGoodness to Life," continuously enhancing brand awareness, reputation, and loyalty, making the

brand a bridge connecting users with a better life.

2. Expanding Communication Channels and Enhancing Brand InfluenceIn 2025, the Company continued to increase its brand promotion efforts, expanding diversecommunication channels, and innovating brand marketing methods to improve the quality ofbrand operations. CCTV featured a special report on Meiling's product innovations, enhancing thebrand's authoritative image. The Company implemented targeted brand advertising in subways,light rails and airports to enhance brand awareness, conducted nationwide agricultural supportinitiatives through social welfare programs to boost brand reputation. On the new media front, theCompany deepened content operations and precise promotion capabilities. Meiling accelerated itslocalized service offerings on the Douyin platform and collaborated with influencers for targetedcampaigns; on the Xiaohongshu platform, multi-dimensional content engagement was employedto boost user interaction and brand penetration, achieving a multi-dimensional leap in brandinfluence.

3. Maintaining a Focus on Technological Leadership While Accelerating ProductInnovationIn 2025, the Company remained focused on user-centered design and technology leadership,accelerating the transformation of innovation results. This year, the Company launched severaldifferentiated innovative products with competitive advantages, including the M-Fresh Ultra570SRefrigerator, the As Hand Washing Great Whale Drum Washer, the Landscape View Series airconditioners, the Fresh Water 3.0 Tea Dispenser, and the Ice Lined Refrigerator YC-125EW,among others. The product line continued to expand, and the structure was optimized, furtherenhancing the brand's core competitiveness and providing continuous brand momentum for theCompany’s high-quality development.(II) Product capabilityThe Company adheres to the product planning philosophy of "captivating with aesthetics,earning respect through quality, winning with value-for-money, and securing loyalty viaexperience," with the development goal of "making good products and doing products well," andbuilds a whole-chain innovation system of "Technical route + Product route + Promotion route." Ithas established an integrated collaborative mechanism for the entire chain of "sales, research,production, and supply” and continuously optimized its SKU structure, which enhances thesuccess rate of product launch and the value contribution within the product lifecycle. On thisbasis, the Company focuses on enhancing product bundling capabilities, shifting from single-product sales to bundled product combinations and scene-based solutions. Simultaneously, theCompany actively explores the empowerment of product innovation through AI technology,integrating artificial intelligence into key areas such as technological research and development,interactive experiences, and intelligent services, continuously enhancing the product's

differentiated competitiveness and user value.Refrigerator (Freezer) Products: By establishing a comprehensive product platform matrix,upgrading exterior/interior designs, and implementing tiered freshness/odor-removal solutions, theCompany meets diverse consumer needs, enhances product portfolio competitiveness, andexpands market coverage to drive sales growth. In 2025, the Company completed the layout of 7platform refrigerator bodies ranging from 600mm to 900mm in width, and launch 5 M-Freshmodels, including 570S. It innovated defrosting technology, comprehensively upgraded all-scenario freshness preservation, and introduced differentiated products such as the FrozenFreshSongya 551S and the 70cm Little Certainty 505/420 French style. MNC+PRO active sterilizationand deodorization technology were comprehensively upgraded. The e-commerce platform was thefirst to apply the "AI Smart Assistant" function, further, comprehensively consolidating itsindustry leadership in "fresh, thin, narrow, and embedded design". The freezer has undergone full-scale inverter and air cooling upgrades, launching new products such as the inverter frost-freemaster and energy-saving master, while establishing high-end brand recognition through productslike the M-Fresh Bar Freezer, establishing a high-end brand image. Additionally, the Company isintroducing the industry's first inverter commercial kitchen cabinet.Air Conditioner Products: We focused on user scenarios and create three flagship products:

"All Dust-Free," "Kitchen and Dining Cabinets," and "Panda Lazy." In 2025, we launched newproducts such as the "Landscape View" high-end wall-mounted unit and "Giant Energy SavingPRO" floor-standing series, deeply integrating AI algorithms and fresh air technology to achieve avalue upgrade from temperature control to air management.Washing Machine Products: The Company focused on core mid-tier products and created a"star series" matrix. All drum washing machines were upgraded to flush-embedded designs. TheCompany launched the As Hand Washing Flush-Embedded series and the As Hand Washing GreatWhale series, both featuring 3x washing technology. The product line has expanded to include a12kg capacity and energy efficiency has been improved across the entire range. Additionally, theCompany innovated with compact high-capacity products, optimizing the product structure.

Kitchen and Small Home Appliances: In major kitchen appliances, the Company deepenedits research into the fields of gas water heating and water purification, introducing its 3.0Honeycomb Sealed Stable-Combustion Energy Chamber technology and creating "AI HealthyKitchen", "Fresh Kitchen”, "Whole-house Water Supply” and other scenario-based solutions. Inthe small home appliance sector, the Company expanded its cooperation with academia andresearch institutes, developing second-generation strontium-rich mineral filter. The Fresh Waterseries became a benchmark for tea drink products, and the Company’s mini kitchen appliancesranked among the top three in the industry, further elevating its brand influence.Biomedical Products: Focusing on low-temperature storage, laboratory equipment, and

automation applications, the Company drives product upgrades through technological innovation.In the field of cryogenic storage, the Company made in-depth advances focusing on "intelligence,energy efficiency, safety, and scalability". The YC-125EW Ice Lined Refrigerator introduced in2025, became the first product globally to be certified by the WHO’s latest standards, providingcrucial support for expanding the global public health market. The Company also launchedintelligent inverter refrigerators, -40°C frost-free cryogenic storage units and other products,significantly enhancing storage efficiency and safety. In the laboratory equipment sector, theCompany expanded its product matrix with biosafety cabinets and centrifuges, creating newgrowth points. In the automation applications field, the Company focused on developing fully-automated ultra-low temperature storage systems and biobank solutions, creating a closed loop forthe accurate storage of samples and smart management throughout the process, addressingtraditional efficiency pain points and providing high-standard technical support for precisionmedicine.(III) Operational capabilityThe Company continues to improve its operational management system guided by strategyand centered on value creation, and effectively drives the achievement of business objectives andoperational quality improvement through deep linkage of objective management, value chaincollaboration, comprehensive budget and performance management. In terms of objectivemanagement, the Company strictly aligns with strategic and business policies, establishing aclosed-loop mechanism of "target setting-process monitoring-deviation correction-resultevaluation" following SMART principles to drive continuous improvement in operational quality;for value chain coordination, it clarifies authority-responsibility-benefit boundaries acrossbusiness units to activate internal vitality while strengthening collaboration throughout theindustrial chain, building an integrated, efficient operating mechanism with aligned objectives,streamlined processes, and co-created value; in budget management, it implementscomprehensive closed-loop control throughout the budgeting process, adopting dynamic budgetadjustments and rolling forecast mechanisms to provide precise, timely financial support anddecision-making basis for resource allocation optimization, risk prevention, and strategic goalachievement; in terms of performance management, it advances whole-process performancemanagement, enhances communication and feedback to effectively align employee growth withcorporate development, fully stimulate value creation momentum, and drive business unitperformance fulfillment.(IV) Marketing capabilityThe Company has established a nationwide marketing network and service system thatpromotes online and offline collaborative development. It drives scalable expansion through fourstrategic pillars of "innovative super-product development, precision channel operations, tieredregional upgrades, and focused brand-building". In terms of products, the Company focuses on

introducing differentiated trend products, amplifying product mindshare through integratedonline-offline campaigns to promote premium offerings. In terms of channels, it adheres to atiered high-quality operation approach, increasing investment in KT channels and scaling up thosechannels with positive marginal contributions. It accelerates the integration of refrigerator andkitchen appliances, builds and operates exclusive stores, and enhances operator quality in basicchannels. Online, the Company strengthens the operation of mainstream channels, expandsemerging channels, and strengthens the entry of large stores and underdeveloped regional marketsin the sinking channels. In terms of the traffic and user operation front, it implements a user-oriented approach, strengthening brand building and content operations. In terms of organization,it resolutely drives marketing transformation and accelerates new retail capability enhancement.At the same time, the Company continues to advance its B2B business system transformation witha strong focus on 'customer-centricity,' focusing on improving product quality and deliverycapabilities, and continuously pushing for the internationalization of domestic marketingcapabilities. It also strengthens information technology construction and AI applications, buildingan agile mechanism capable of quickly responding to market changes.IV. Main Business Analysis(I) OverviewIn 2025, facing the challenges of intensified competition in the home appliance industry, thecompany adhered to the business philosophy of 'innovation-driven, internal and externalintegration, industrial synergy, marketing transformation, and digital and intelligenttransformation,' achieving steady progress. During the reporting period, the company's operatingrevenue reached 30.408 billion yuan, an increase of 6.32% year-on-year; affected by multiplefactors such as intensified domestic market competition, the decline of national subsidy policiesleading to weak terminal demand, and fluctuations in bulk material prices, net profit was 410million yuan, a year-on-year decrease of 41.31%, with overall operations remaining stable.

1. Refrigerator (Freezer) industry

In the domestic market, the Company focused on "users and traffic" by transitioning frombusiness customers to business users, acquiring users through "digital platforms, grassroots andomnichannel scenario marketing", while driving conversion via "premium product evaluation,flagship model promotion, and precision operations" to achieve integrated online/offline trafficconvergence. On the channel front, the Company is focusing on integrated refrigerator-kitchensolutions, transitioning from standalone appliance operations to complete white goods suiteofferings. On the product front, it adheres to an emotion-driven marketing approach that guidesproduct design, adhering to the user-centric approach, to build a differentiated product portfolio,such as M-Fresh, FrozenFresh, and Little Certainty as three major IP products for both online andoffline channels. The Company’s strategic channel layout of differentiated products, coupled with

exceptional product experiences, has garnered market recognition. Additionally, the Company isfurther leveraging its industrial synergy to achieve a "dual-engine drive" in the refrigerator-washer industry, accelerating brand business growth and strengthening internal and externalcollaboration. With a user-centric approach, the Company is not only driving product scalegrowth but also accelerating the transformation towards high-end products. By strengtheningcustomer support and achieving breakthroughs with key clients in core markets, the Companyaims for sustained and stable growth in scale.

During the reporting period, the Company's refrigerator (freezer) business realized anincome of about RMB 8.946 billion, with a year-on-year decrease of 6.42%.

2. Air conditioning industry

In terms of domestic market, the Company consistently implements its core business strategyof "product excellence, brand prioritization, channel co-creation, and direct-to-consumer", stayinguser-centered while continuously enhancing product strength. Key new products such as the"Landscape View"-EA wall-mounted unit, "Living/Dinning Room Pro"-BFB floor-standing unit,and "Giant Energy Saving PRO"-BEW/BGW floor-standing unit, and "Panda Lazy" XS-ULTRAunit were successfully launched. These products deeply integrated AI and health technologies,reinforcing the product brands of "Dust-Free, Kitchen and Dining Cabinets, and Panda Lazy" andsupporting market competition through differentiated innovation. In terms of branding, theCompany strengthened its brand influence through public relations activities, self-mediaoperations, macro advertising, and new media marketing campaigns. For channel operations, theCompany adhered to an integrated online and offline approach, advancing channel expansion andrefining operations. At the same time, it optimized service experiences and reinforced itsoperational foundation to maintain business stability and growth amid industry fluctuations. Interms of overseas markets, the Company maintained its five-pillar business strategy of "qualityfoundation strengthening, brand momentum building, production capacity synergy, operationalefficiency enhancement, and talent excellence cultivation", to continuously drive sustainablebusiness growth. In terms of brand building, the Company concentrated on deep cultivation of itsIndonesian market to achieve steady growth in brand business scale. In market expansion, theCompany strengthened its service capabilities for key large customers, breaking revenue recordswith the TOP10 customers of the year. It also increased efforts to expand core regional markets,steadily boosting sales and providing strong support for overall business growth.

During the reporting period, the Company's air-conditioning business realized an income ofabout RMB 17.381 billion , with a year-on-year increase of 12.81%.

3. Washing machine industry

The washing machine industry adhered to a differentiated competition strategy, staying user-centered and focusing on products to build core industry competitiveness. In the domestic market,the Company deepened channel transformation, driving continuous optimization of productstructure through both product and technology advancements. With trends such as flush-embedded and large-capacity models, the Company further solidified its mid-range productofferings, emphasizing the competitive advantages of "BlueOxygen As Hand Washing," "AsHand Washing," and "Hercules." New products like the "As Hand Washing Flush-Embedded"and "As Hand Washing Great Whale" were launched, and the Company built a series of washingand drying product bundles based on core mid-tier models, further strengthening its market shareand influence in the mid-to-high-end market. The Company also focused on key regions and corecustomers, collaborating on the development of new appearance drum washers to enhancemarket share. Breakthroughs were achieved in dryer control technology and energy efficiency,accelerating market expansion. The Company initiated dual-basis layouts in Hefei and Mianyang,with the Mianyang factory focusing on creating a digital, intelligent, and green manufacturingpark. The integration of "AI + manufacturing" helped build a lean and flexible factory, fillinggaps in the western high-end laundry industry and empowering regional manufacturing upgrades.

During the reporting period, the Company's washing machine business realized an income ofabout RMB 2.207 billion , with a year-on-year increase of 26.33%.

4. Major kitchen appliance and small home appliance industry

In the major kitchen appliance and small home appliance sector, the Company executes athree-pronged strategy of transformation, focus, and efficiency enhancement, yielding substantialimprovements. In terms of strategy, the Company continues to drive industrial convergence, whilein terms of market, it reinforces strategic home market development to solidify regional marketcompetitiveness. The Company accelerates its omnichannel integration strategy, enhancing onlineexperiences through digital marketing and deep platform collaborations while establishingscenario-based offline experiential stores to optimize consumer experiences, achievingsynchronized cross-channel inventory sharing and consumer mode convergence. In terms ofproduct innovation, technological advancements have driven the successful launch of the FreshWater Series, which received widespread praise from users, and the small kitchen appliancescategory saw record sales. In terms of market services, the Company maintains its user-centricapproach, relied on an efficient management platform to quickly respond to user needs, enhancedthe professionalism of after-sales teams, and steadily improved user service experiences andsatisfaction.

During the reporting period, the Company's major kitchen appliance and small homeappliance business realized an income of about RMB 1.444 billion, with a year-on-year decreaseof 3.19%.

5. Biomedical industry

In the domestic market, staying user-centered, the Company continued to drive channelorganization reforms and deepened its "market segmentation + scenario-based engagement"approach to accurately identify user needs. The Company continuously improved the channelsystem in the life sciences field, optimizing regional layouts and partner structures, significantlyenhancing its user coverage and penetration in key markets. It also launched "LingXin Service"nationwide maintenance campaign and after-sales skills enhancement initiative to elevatecustomer satisfaction and brand trust through professional and standardized services. TheCompany enhanced its brand influence in scientific research and industry by establishinguniversity scholarships, organizing industry strategy alliance meetings, and actively promoting theconstruction of an industry talent ecosystem, fostering industry chain collaboration and high-quality, win-win development. In the overseas market, the Company focused on both quality andquantity to solidify its channel foundation, building a more comprehensive channel network. Byfocusing on developed markets and breaking into emerging markets, and utilizing internationalexhibitions and on-site visits for diversified promotion, the Company expanded the marketinfluence of its core products. Simultaneously, it gradually strengthened its localized layout,continuously improving market response capabilities and delivery efficiency. The Companyworked to create a competitive edge across the entire product lifecycle, from promotion to after-sales service, ultimately forming a global channel system based on customer loyalty and win-wincooperation.

During the reporting period, the Company's biomedical business realized an income of aboutRMB 305 million , with a year-on-year increase of 15.61%.

(II) Revenue and cost

1. Constitute of operating revenue

Unit: RMB

conditioners

2. The industries, products, regions or sales models that accounting for over 10% of theCompany’s operating revenue or operating profit

√ Applicable □ Not applicable

Unit: RMB

Under circumstances of adjustment in reporting period for statistic scope of main businessdata, adjusted main business based on latest one year’s scope at the end of the reporting period

□ Applicable √ Not applicable

3. Does the Company’s Revenue from Physical Sales Exceed Service Revenue?

√ Yes □ No

appliancemanufacturingindustry

Reason for more than 30% year-on-year change in relevant data

□ Applicable √ Not applicable

4. Performance of Major Sales and Procurement Contracts Signed by the Company asof the Reporting Period

□ Applicable √ Not applicable

5. Composition of operating costs

Industry classification

Unit: RMB

Note: None

6. Changes in the Scope of Consolidation During the Reporting Period

√ Yes □ No

For detailed information, please refer to "Section VIII Financial Report" of the Report,specifically “7. Changes in the Consolidation Scope" and “8. Equity in Other Entities".

7. Significant Changes or Adjustments in Business, Products, or Services During theReporting Period

□ Applicable √ Not applicable

8. Major sales customers and suppliers

(1) Major sales customers

Top 5 major customers

sales

Other remarks on major customers

□ Applicable √ Not applicable

Major suppliers

Top 5 major suppliers

Other remarks on major suppliers

□ Applicable √ Not applicable

Proportion of trade business revenue in total operating revenue exceeding 10% during thereporting period

□ Yes □ No √ Not applicable

(III) Expenses

Unit: RMB

rate fluctuations losses

(IV) R&D investment

√ Applicable □ Not applicable

70cm Ultra-Thin FrenchMulti-DoorRefrigeratorProject

outlet generatesover 100 millionnegative ions, withthe room’snegative ionconcentration farhigher than that offorest oxygen bars,offering users a"Immersion inNature"comfortableexperience.

4. Used in mid-to-

high-end productseries ranging from12K to 27K

Washingmachine drumcleaningtechnology

MY-NBJ90 AIInstant HotWaterDispenser

equipment's smart upgrade,independently develop key datacollection components, fullyenhance the IoT connectivityand intelligent control level ofthe products, and boost thecompetitiveness andprofitability of the liquidnitrogen biological storagecontainer market while realizingremote real-time monitoring ofequipment operation, intelligentwarnings, and digitalmanagement

The Company’s R&D Personnel

The Company’s R&D Investment

Reasons and Impacts of Significant Changes in R&D Personnel Composition

□ Applicable √ Not applicable

Reasons for Significant Changes in the Proportion of Total R&D Investment in Operating

Revenue Compared to the Previous Year

□ Applicable √ Not applicable

Explanation for the Large Fluctuation in R&D Investment Capitalization Rate and ItsReasonableness

□ Applicable √ Not applicable

(V) Cash flow

Unit: RMB

Explanation of Major Influencing Factors for Significant Year-on-Year Changes in RelatedData

√ Applicable □ Not applicable

The significant change in net cash flows from operating activities is primarily due to anincrease in the cash paid by the Company for purchasing goods and receiving services comparedto the same period last year.

The significant change in the net increase in cash and cash equivalents is mainly due to anincrease in cash outflows from operating activities compared to the same period last year.

Explanation of reasons for significant discrepancies during the reporting period between net

cash flow from operating activities and net profit for the year

√ Applicable □ Not applicable

Mainly due to an increase in operating payables at the end of the reporting period comparedto the beginning of the period.V. Analysis of Non-main Business

√ Applicable □ Not applicable

Unit: RMB

VI. Analysis of Assets and Liabilities

(I) Major changes of assets composition

Unit: RMB

points

points

A relatively high proportion of foreign assets

□ Applicable √ Not applicable

(II) Assets and liability measured by fair value

√ Applicable □ Not applicable

Unit: RMB

Other changesOther changes in receivables financing are due to the decrease in notes receivable with theobjective of both collecting contractual cash flow (collections) and selling (endorsement ordiscounting).Other changes in other non-current financial assets are caused by the recovery of the cost ofSichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership

Enterprise (Limited Partnership) and Changhong Group Sichuan Shenwan Hongyuan StrategicNew Industrial Parent Fund Partnership (Limited Partnership).Are there major changes in measurement attributes for main assets of the Company in thereporting period?

□ Yes √ No

3. Assets right restricted at the end of the reporting period

At the end of the reporting period, the Company has no major assets that were seized,detained, frozen, mortgaged or pledged. As for other assets with restricted rights, see more inrelevant content of “24. Assets with Restricted Ownership or Use Rights” in “VII. Notes to MajorItems of Consolidate Financial Statement” under “Section VIII Financial Report” in the Report.VII. Investment Analysis(I) Overall situation

√ Applicable □ Not applicable

(II) The major equity investment obtained during the reporting period

√ Applicable □ Not applicable

Unit: RMB

SmartHomeAppliancesCo.,Ltd.

3. The material non-equity investment during the reporting period

√ Applicable □ Not applicable

On June 18, 2025 and November 24, 2025, the Company held the 18th meeting of the 11thBoard of Directors and the second extraordinary shareholders’ meeting for 2025. During thesemeetings, the Proposal on the Investment and Construction of the Smart Home AppliancesIndustrial Park Project by Subsidiaries was reviewed and approved. The Company agreed to allowits subsidiary Hefei Industrial to invest in and build the Smart Home Appliances Industrial ParkProject with a total investment of RMB 877.05 million. The details were disclosed by theCompany on June 19, 2025, and November 25, 2025, in the designated information disclosuremedia Securities Times, China Securities Journal, and Juchao Website (www.cninfo.com.cn)through announcements (No. 2025-045, No. 2025-046, and No. 2025-082).

Details of the Company's production capacity expansion project can be found in Section V“XVII. Explanation of Other Significant Matters" and “XVIII. Significant Matters of the

Company's Subsidiaries."As of the end of the reporting period, the project construction was still in progress and hadnot yet been completed or transferred, with the related project contract amount exceeding RMB200 million.

□ Yes □ No √ Not applicable

(IV) Financial assets investment

1. Securities investment

□ Applicable √ Not applicable

The Company had no securities investment in the reporting period.

2. Derivative investment

√ Applicable □ Not applicable

(1) Derivatives investment for hedging purposes during the reporting period

√ Applicable □ Not applicable

Unit: RMB 10,000

profit and lossduring the reportingperiod

Disclosure date forapproval from boardof shareholders forinvestment ofderivatives (ifapplicable)

(2) Derivative investments for speculation during the reporting period

□ Applicable √ Not applicable

The Company had no derivative investment in the reporting period.VIII. Sales of Major Assets and Equity(I) Sales of major assets

□ Applicable √ Not applicable

No major assets were sold in the reporting period.(II) Sales of major equity

□ Applicable √ Not applicable

IX. Analysis of Main Holding and Participating Companies

√ Applicable □ Not applicable

(I) Particular about main subsidiaries and participating companies with net profit over10%

Unit: RMB

Electric Co.,Ltd.

(II) Subsidiary obtained and disposed in the reporting period

√ Applicable □ Not applicable

(III) Description of holding and participating companies

□ Applicable √ Not applicable

X. Structured Entities Controlled by the Company

□ Applicable √ Not applicable

XI. Outlook for the Company's Future Development(I) Macro environment analysisIn 2026, the complexity of the macro environment will further intensify, with globaleconomic growth diverging and regional geopolitical conflicts intertwining, leading to significantfluctuations in the prices of key raw materials like copper, further increasing cost pressures in themanufacturing sector. At the same time, the international foreign exchange market will experiencemore volatility, posing higher demands on businesses' overseas operations and exchange rate riskmanagement. Domestically, under the policy support, the market is entering a "consolidationperiod." The "trade-in" policy, which was previously concentrated, is losing momentum, and thenew demand generated by the real estate market adjustment is weak. The overall market is

shifting from total expansion to structural upgrading. Against this backdrop, the acceleratedpopularization of artificial intelligence (AI) is profoundly transforming the industrial landscape.From upgrading end-user intelligent experiences and personalized scenario customization toreshaping manufacturing and supply chain efficiency, AI technology is being fully integrated intoproduct innovation and operational processes. It has become a core driving force for the homeappliance industry to explore new growth points, navigate economic cycles, and achieve high-quality development amidst a competitive landscape.(II) Industry environment analysis

1. Refrigerator (Freezer) industry

The refrigerator industry is undergoing profound transformation. In the domestic market, thedemand for both essential and premium products is expected to remain weak. Amid rising pricesof raw materials such as copper and aluminum, pressure on enterprises is increasing. The markethas fully shifted to a replacement-driven model, with the proportion of high-end modelsincreasing against the trend. Driven by both policy and technological advancements, the industryis transforming towards "green, intelligent, and high-end" features, and market share isaccelerating toward leading, ecosystem-oriented enterprises. At the same time, the globalinfluence of Chinese home appliance brands and the expansion of Chinese channels worldwideprovide new opportunities for business expansion. On the technological front, the rapiddevelopment of inverter technologies, driven by global standard upgrades, has led to theaccelerated popularization of inverter products. AI applications are driving the rapid accelerationof home appliance intelligence and the rise of smart and connected products, further upgrading theindustrial structure.

2. Air conditioning industry

The domestic market is expected to enter a period of deep adjustment and consolidation. Dueto macroeconomic factors, consumer confidence, and the real estate sector, market demand facessignificant pressure. The industry will simultaneously face challenges of "high inventory, highcosts, and weak demand." In this context, industry reshuffling may intensify, and marketcompetition will comprehensively shift towards technical value, supply chain efficiency, andbrand resilience. Market share is expected to further concentrate on leading enterprises. In theoverseas market, global energy efficiency and environmental protection standards arecontinuously upgraded, while trade barriers and high costs have become significant features.Market demand shows clear regional differentiation and structural growth trends, with consumersincreasingly focusing on energy-saving, smart connectivity, and customized solutions for specificusage scenarios. From a competitive standpoint, the core focus has shifted from capacity and pricecompetition to global battles centered on brand power, localized operations, and comprehensivetechnical solutions.

3. Washing machine industry

The domestic market is expected to enter a deep consolidation phase under policy supportand a competitive landscape, with growth momentum shifting from total expansion to structuralupgrades. Policy-wise, the new round of "trade-in" policies focuses on grade-I energy-efficientproducts, forcing enterprises to accelerate their transition to greener and higher-end products. Interms of products, AI technology is evolving from "passive operation" to "active intelligence."Intelligent washing machines with visual recognition and self-learning algorithms have becomemainstream, enabling automatic identification of fabric materials and dynamic optimization ofwashing programs. Meanwhile, multi-tub washing models continue to penetrate, responding tospecific scenarios such as pet care and maternal and child needs. On the market side, simple pricewars are no longer sustainable. Solution sets are gradually replacing single-function products.Enterprises must explore new growth spaces in the stock market through green and intelligentupgrades and deep engagement with different scenarios. Globally, energy efficiency upgrades andthe rapid development of smart technologies are driving structural upgrades. After three years ofrapid growth, export volumes are at a high point, and growth has slowed due to overseas tariffsand geopolitical friction.

4. Major kitchen appliance and small home appliance industry

In 2025, the industry faces demand exhaustion and a shift in momentum. The future directionwill focus on personalization, scenario-based solutions, and health upgrades, with smart and greeninnovations at the core.

The kitchen and bathroom markets are generally weak, with both volume and value decliningacross multiple categories. Replacement and structural upgrades are becoming the core focus. Onthe demand side, the replacement rate exceeds 50%, and users are increasingly segmented, withoffline channels being the main purchase scene. On the product side, the industry is shifting fromparameter competition to value competition. The implementation of new national standards acrosscategories will drive energy efficiency and safety upgrades. The competitive environment isintensifying, with the "Matthew effect" making survival space for small and medium brandsincreasingly squeezed.

The small home appliance market is seeing slower growth in traditional categories, withemerging categories such as tea dispensers and small health appliances becoming the core growthdrivers. The fusion of the Internet of Things (IoT) and AI chips is enabling small home appliancesto achieve precise connectivity and proactive intelligence. Emerging e-commerce remains thegrowth engine, with leading brands accelerating their omnichannel layout. Brand competition isfierce, with concentration among top brands increasing, and small and medium brands focusingon niche markets for breakthroughs.

5. Biomedical industry

Under the national strategies of "Healthy China 2030" and "Developing New QualityProductive Forces," the biomedical industry is at a key stage of advancing domestic replacement.Policies have not only provided legal guarantees and tax incentives for technological innovationin domestic equipment but have also optimized the review and approval mechanisms, creatingunprecedented market opportunities for leading enterprises with core technologies. Currently, thecore of industry competition has shifted from simple price wars to comprehensive strengthcompetitions based on independent innovation, reliable quality, and full-lifecycle service.(III) 2026 Business Plan

1. Business strategy

In 2026, the Company will continue to focus on five core initiatives—innovation-drivendevelopment, resource integration, industrial synergy, marketing transformation and digitaltransformation—to accelerate high-quality development. The goal for the year is to achieve bothscale and profit growth.

(1) Innovation-driven industry capability building

The Company will focus on four key dimensions—technology innovation, productinnovation, manufacturing innovation, and management innovation—to continually enhance coreindustrial competitiveness. The Company will stay committed to the core business, avoidingmerely following trends, and instead lead with innovation to build differentiated competitiveadvantages. It will strengthen its core business foundation, foster innovation ecosystems, andensure a symbiotic relationship between innovation and the main business to jointly buildcompetitive advantages.

(2) Resource integration for industrial ecosystem

The Company will continue to advance the dual circulation strategy (domestic andinternational), fostering synergy between domestic and international operations. In the overseasmarket, it will leverage its strong overseas customer base to accelerate the expansion of itsindustrial matrix and cultivate a solid second growth curve. In the domestic market, it will convertthe innovation and efficiency capabilities honed in the domestic market into a powerful supportfor international expansion. Looking to the future, in the face of ecological competition, theCompany will build on its foundation in the refrigerator-washer industry, promote thecollaborative development of new product categories, establish a sustainable industry ecosystem,and continuously strengthen its global competitive capabilities.

(3) Industrial synergy to accelerate industrial development

The Company will focus on technological and R&D collaboration, lean manufacturing,supply chain management, and quality improvement to achieve coordinated breakthroughs andsystem integration. By sharing methodologies and reusing platform capabilities, the Company will

break down industry boundaries and optimize resource allocation. The Company will enhanceorganizational efficiency through system collaboration and accelerate development by promotingintegration and mutual growth among different business segments.

(4) Marketing transformation to create a user-centric ecosystem

The Company will steadily build a user-centered ecosystem driven by dual efforts inrefrigerator-washer integration, kitchen-refrigerator integration, and retail transformation. Startingfrom product differentiation, the Company will enhance user connection and traffic managementthrough differentiated IP strategies, accumulating brand momentum. The Company will pursue adual approach: B2B with a focus on customer needs, and B2C with a focus on user needs,collaborating to drive user-centric marketing across all channels, continually improving userengagement and operational effectiveness.

(5) Digital transformation to enhance operational efficiency

The Company will view efficiency as a strategic advantage and utilize digital transformationto improve quality and efficiency across the entire value chain. The Company will focus on itscore business, reduce SKUs, and optimize resource allocation. It will strengthen human resourcemanagement and organizational effectiveness, adopting a "simplification" approach to redesignprocesses and improve operational efficiency. Through digital tools, the Company will create aseamless end-to-end operation system, injecting strong momentum for sustainable development.

3. Market strategy

(1) Refrigerator (Freezer) industry

The Company will implement the "1+3+4" core strategy, focusing on "user-centric" andintegrating the three key elements of "people, product, and place." The Company will executefour key actions: "digital platforms, grassroots, value creation, and flagship model promotion."The goal is to move from managing customers to managing users. The Company will focus onintegrating online and offline channels, expanding the multi-dimensional approach to "people,product, and place" from a singular focus. This will involve transitioning from passive traffic toasset-driven customer engagement, from a single channel to a full-scenario experience, andupgrading from functional value to emotional value. In terms of channels, the Company willpromote the refrigerator-washer product integration, deepen efforts in key home markets, andbuild up brands through investment and exclusive store development. The Company willstrengthen online operations on platforms like Douyin, Xiaohongshu, and live streaming, focusingon creating private user pools. It will integrate content-driven and business-driven strategies tooptimize brand image, focusing on the "freshness" proposition and emphasizing high-end marketpositioning. Product-wise, the Company will focus on trends such as "large capacity, inverter, andAI," with mid-range products highlighting differentiation and low-end products optimizing costs.

It will continue to deepen mature markets while expanding emerging markets and strengtheningthe online and R&D capabilities to drive user-oriented transformation across the entire supplychain.

(2) Air conditioning industry

In the domestic market, the Company will adhere to the business strategy of "productexcellence, brand prioritization, channel co-creation, and direct-to-consumer". On the product side,the Company will focus on user needs and drive product iteration and upgrades throughtechnological innovation, enhancing the smart product label. On the channel side, the Companywill maintain diversified and collaborative development, strengthen online and offline integration,and continue improving channel efficiency and coverage quality. On the user side, the Companywill steadily promote marketing transformation, enhance user direct access, and serviceexperience while increasing brand influence. In the overseas market, the Company will implementthe "Three Increases and One Strengthening" strategy to expand market growth potential. Thisincludes increasing the product lineup with window and mobile air conditioners, implementingtargeted marketing strategies based on the characteristics of different regional markets, expandingmarket share in key customer segments, solidifying existing partnerships, seeking furtherbreakthroughs, and acquiring orders from new markets and clients, with an emphasis on engagingmainstream customers in potential markets. Additionally, the Company will strengthen support formid-tier customers and stabilize order volumes from this group, consolidating the overall businessfoundation.

(3) Washing machine industry

In the domestic market, the focus for drum washing machines will be on expanding the12KG large-capacity series around the “As Hand Washing” and “BlueOxygen As Hand Washing”models to enhance the competitiveness of mid-tier products. High-end products will rely on ultra-thin flush-embedded technology to expand fully flat flush-embedded designs, AI laundry care,and integrated product solutions. The Company will develop products and technologies for nichemarkets, such as multi-drum washing, heat pump washing and drying integration, and integratedpartition washing, to expand the high-end product lineup and enhance brand value. For thepulsator washing machines, the Company will rely on the Hercules technology to advance theHercules PRO line, creating a competitive edge. The Company will focus on key home marketssuch as Anhui and Sichuan-Chongqing, and build retail capabilities around core stores to increasemarket share. The Company will continue to focus on key regions, target key customers, enhanceproduct competitiveness, and expand product categories by increasing product supply andupgrading energy efficiency to meet differentiated needs, aiming to build a leading global brandfor drum washing machines.

(4) Major kitchen appliance and small home appliance industry

The Company remained user-centric, focusing on kitchen and lifestyle scenarios, andpromote multi-category, all-channel integrated operations to steadily build industrial capabilitiesand inject continuous power for high-quality industry development. Technological innovation willdrive product upgrades, with AI technology deeply integrated, while fresh water technology willundergo iterative upgrades to strengthen the product lineup. The Company will reinforce productlabels focused on “freshness,” “health,” and “intelligence.” Category collaboration will deepen,and dual-line integration will create a full-channel matrix to enhance ecological cooperation andstrengthen brand influence. The Company will continue to leverage digitalization to improvequality and efficiency, continuously optimize the supply chain and after-sales service system, andbuild a closed-loop service process, creating user trust and enhancing brand reputation withprofessional services.

(5) Biomedical industry

The Company will focus on opportunities in the field of life sciences, continuing to deepenits business philosophy of "technology-based, product-based, market-oriented and customer-centered development”, relying on the product strategy of “vertically expanding sample banks andhorizontally expanding laboratories” to promote the simultaneous scaling and qualitydevelopment of various services. In terms of market expansion, the Company will continue tostrengthen service capabilities and channel system development, optimizing domestic marketchannels to enhance user coverage and penetration in key areas. For the overseas market, theCompany will focus on both developed and emerging markets, advancing a strategy of “scalingup old customers and strengthening new customer outreach.” The Company will further build aclear, comprehensive distribution network, significantly enhancing overall marketcompetitiveness.

(IV) Potential risks and countermeasures

In 2026, facing intensified competition and rising uncertainty in the external environment,the Company may face the following key risks:

1. Industry competition and demand fluctuation risk

The domestic home appliance industry is experiencing increased competition with a highdegree of product homogeneity. With the diminishing marginal effect of the “trade-in” policy andthe shift in consumption towards quality and scenario-based upgrades, the Company will continueto strengthen its technology-driven innovation, use AI to empower product iteration and enhanceuser experience, and plan ahead with product development and all-channel operations to strive forincreased market share in the midst of competition.

2. Exchange rate fluctuation risk

Potential significant exchange rate fluctuations may arise from evolving global dynamics.

The Company adheres to a prudent business approach, with ongoing close monitoring ofexchange rate fluctuations and cautious exchange rate operations to minimize adverse impacts ofexchange rate fluctuations.

3. Risk of fluctuations in bulk material prices

The main raw materials of the Company's products include steel, copper, aluminum, plasticsand chemical materials, etc. If the prices of the said bulk raw materials fluctuate greatly, it willhave a certain impact on the related costs and operating performance of the Company. TheCompany will continue to strengthen monitoring of bulk materials and take timely measures tocontrol cost fluctuations.

4. Trade frictions and geopolitical impacts

The Company pays close attention to the impact of international trade frictions andgeopolitical uncertainties on its global business. It makes relevant plans in advance, takes variousrisk response measures, responds quickly, and mitigates the impact.

In 2026, the Company will focus on the business philosophy of "innovation-drivendevelopment, resource integration, industrial synergy, marketing transformation and digitaltransformation" to actively respond to market changes. Through early product, technology, andmarket positioning, the Company aims to drive its transformation toward high-end, intelligentproducts, continually optimize its product structure, enhance operational efficiency, and improveoverall competitiveness, striving to provide better products and services for consumers and creategreater value for shareholders.

XII. Research, Communication, Interviews, and Other Activities During the ReportingPeriod

√ Applicable □ Not applicable

January 14,2025

=2025-05-07%2018:26

Securities, ChinaMerchants Securities,Shenwan HongyuanSecurities, GuotaiHaitong Securities,China InternationalCapital Corporation(CICC), ZhongtaiSecurities, CaitongSecurities, TFSecurities, SinolinkSecurities and HuaxiSecurities

XIII. Formulation and Implementation of Market Value Management System andValuation Boost PlanHas the Company established a market value management system?

□ Yes √ No

Has the Company disclosed plans for valuation increase?

√ Yes □ No

From February 27, 2025, to February 27, 2026, Changhong Meiling's B-share stock hasclosed below the most recent audited net assets per share attributable to the shareholders of thelisted company for each trading day over the past 12 months. According to the Listed CompanySupervision Guidelines No. 10 – Market Value Management, this situation requires theformulation of a valuation enhancement plan. The 28th meeting of the 11th Board of Directors ofthe Company approved the Proposal on the B-Share Valuation Enhancement Plan.

For the year 2026, the Company plans to enhance its investment value through improving itsoperational capabilities, establishing a sound medium- and long-term incentive mechanism, cashdividends, strengthening investor relations management, and ensuring the quality of informationdisclosure.

For specific details, please refer to the Announcement of Changhong Meiling Co., Ltd. on B-share Valuation Enhancement Plan (Announcement No.: 2026-022) disclosed on April 3, 2026, on

the Juchao Website (www.cninfo.com.cn) and other designated information disclosure media.

XIV. The Implementation of the Action Plan of "Double Improvement of Quality andReturn"Has the Company disclosed the action plan of "double improvement of quality and return”?

□ Yes √ No

Section IV Corporate Governance, Environmental and Social

ResponsibilityI. Overview of Corporate Governance(I) Corporate governance overviewThe Company strictly adheres to the Company Law, Securities Law, the CSRC’s Guidelineson Listed Company Governance, the Listing Rules of Stocks on the Shenzhen Stock Exchangeand the Self-Regulation Guidelines of the Shenzhen Stock Exchange for Listed Companies No. 1– Standard Operations for Companies Listed on the Main Board, along with other relevant lawsand regulations. The Company continuously improves its corporate governance structure,enhances its internal control system, and elevates the standardization of its operations, forming adecision-making and management structure led by the board of shareholders, the board ofdirectors, and management team. The Company's board of shareholders, board of directors, andmanagement team each have clear responsibilities, ensuring scientific decision-making andcoordinated operations, laying a solid foundation for the Company's continued, stable, and healthydevelopment.During the reporting period, the Company revised and issued documents such as the Articlesof Association, the Rules of Procedure for the Board of Shareholders, and the Rules of Procedurefor the Board of Directors. Overall, the Company's governance complies with the relevantnational laws and regulations, as well as the guidelines issued by the CSRC and the ShenzhenStock Exchange concerning listed company governance.

1. Shareholders and the Board of Shareholders

The Board of Shareholders is the highest authority of the Company. The Company iscommitted to safeguarding the legitimate rights and interests of shareholders, and shareholdersexercise their powers through the shareholders' meeting. The Company strictly adheres to theprovisions of the Articles of Association, the Rules of Procedure for the Board of Shareholders,and other systems regarding the convening, holding, and voting procedures of shareholders'meetings. It treats all shareholders, especially minority shareholders, equally and ensures that allshareholders have an equal standing and can fully exercise their rights. The Company highlyvalues shareholder returns and strictly follows the Guidelines for Listed Company SupervisionGuidelines No. 3 – Cash Dividends of Listed Companies and other relevant provisions. TheCompany has established and implemented a consistent and reasonable profit distribution plan,maintaining the consistency and rationality of its dividend policy. During the reporting period, theCompany held four shareholders' meetings. In addition to physical meetings, the Company also

provided a secure, economical, and convenient online voting method to facilitate shareholders'participation. The shareholders' meetings were held in compliance with relevant laws andregulations, and all matters submitted for the approval of the board of shareholders wereseparately counted for minority investors' votes. The results of the vote counting were promptlydisclosed, effectively protecting the rights of minority shareholders and ensuring that allshareholders, especially minority shareholders, could fully exercise their shareholder rights.

2. The Company and Controlling Shareholder

The Company has independent and complete business and autonomous operationalcapabilities, and operates independently from the controlling shareholder in terms of business,personnel, assets, organization, and finances. During the reporting period, the Company'scontrolling shareholder adhered to the Guidelines on Listed Company Governance, theCompany's Articles of Association, and the Company's Related Party Transaction ManagementSystem. The controlling shareholder strictly regulated its actions and exercised its rights throughthe shareholders' meetings in accordance with the law. There were no instances of the controllingshareholder or its affiliates intervening directly or indirectly in the Company's decision-making oroperations. Additionally, there were no instances of the controlling shareholder or its affiliatesoccupying the Company's funds or assets.

3. Directors and board of directors

The Company strictly follows the provisions of the Articles of Association and the Rules ofProcedure for the Board of Directors to convene and hold board meetings. The procedures forboard decision-making and information disclosure comply with the relevant provisions. All of theCompany’s directors are able to carry out their work in accordance with the Rules of Procedurefor the Board of Shareholders and the Independent Director System. They diligently attend boardand shareholder meetings, exercise their powers in accordance with the law, and perform theirduties responsibly. The Company’s independent directors strictly adhere to the ManagementMeasures for Independent Directors of Listed Companies of the China Securities RegulatoryCommission ("CSRC") and the Company’s Independent Director System and IndependentDirector Special Meeting Working System. They maintain full independence in their work and,with a diligent, conscientious, and loyal work attitude, actively participate in the Company'sdecision-making. Independent directors engage in various forms of participation, includingattending meetings, on-site investigations, reviewing documents, and listening to reports anddiscussions. They thoroughly review various proposals, such as related party transactions and cashdividends, and convene special meetings to deliberate on these matters. Independent directorsfully exercise their supervisory and check-and-balance roles, safeguarding the interests of theCompany and all shareholders, especially minority shareholders. The board of directors hasestablished five specialized committees: the Strategy Committee, Compensation and AppraisalCommittee, Audit Committee, Nomination Committee, and ESG Management Committee. Each

committee is responsible for discussing, making decisions on, supervising, and evaluatingsignificant company matters, based on the corresponding implementation guidelines. Thesecommittees play a crucial role in supporting the board in making scientific decisions, enhancingdecision-making efficiency and quality.

4. Performance Evaluation and Incentive Mechanism

According to the Articles of Association, the Company’s board of directors decides on theappointment or dismissal of the Company’s president, vice presidents, CFO, board secretary andother senior executives, as well as on their remuneration and reward/punishment matters. Theboard, based on the president's nominations, decides on the appointment or dismissal of theCompany's vice presidents, CFO, board secretary and other senior executives, and determinestheir compensation and reward/punishment matters. The performance evaluations of directors andsenior executives are conducted by the Company’s Human Resources Department on a daily basis.At the end of the year, the Company’s Compensation and Appraisal Committee assesses andevaluates their performance. In accordance with the Corporate Governance Code for ListedCompanies (Revised in October 2025), the performance-based remuneration for directors andsenior executives should account for no less than 50% of the total of their base salary andperformance-based compensation. The Company has established and continually improved fairand transparent performance evaluation standards for directors and senior executives, along withan incentive and restraint mechanism.

5. Stakeholder Interests

The Company fully respects and protects the legitimate rights and interests of relevantstakeholders, strengthening communication and dialogue with all parties to achieve a balancedcoordination of interests among society, shareholders, the Company, and employees, therebypromoting the Company’s sustained, stable, and harmonious development. In safeguardingshareholders' interests, the Company strictly adheres to the relevant regulations, treating allshareholders equally, especially minority shareholders. By standardizing the convening, holding,and voting procedures of the shareholders’ meetings, the Company ensures that all shareholdershave equal rights and the opportunity to fully exercise their rights. In safeguarding employeerights and interests, the Company, based on its strategic and business development needs,continuously advances and refines talent mechanisms, including talent pipeline development,learning and development, career pathways, end-to-end performance management, andcompensation and incentive systems. It regularly evaluates and monitors employee engagement,satisfaction levels, and corporate culture indices, continuously improves areas of employeeconcern, fully leverages employee capabilities, and stimulates employee vitality, therebyachieving organizational objectives while supporting employees in realizing their personaldevelopment goals. For the protection of consumers' rights and interests, the Company hasenhanced the functionality of official channel service platforms such as 4008 service hotline,

brand official website, WeChat official account, to ensure timely response to user needs and issues.Additionally, the Company has launched services like the M-Fresh preservation commitment forrefrigerators to improve consumer satisfaction. In safeguarding supplier rights and interests, theCompany has established a comprehensive procurement management system, regularly optimizedand updated procedural documents, standardized digital system tools, and exercised strict controlover every stage of the procurement process. It cultivates core and strategic suppliers, implementsa high-end supply chain development program, and fosters a collaborative, cooperative, andmutually beneficial relationship with suppliers. In safeguarding the interests of stakeholders, theCompany, based on the principle of equality and mutual benefit, promotes two-waycommunication and information sharing, striving to establish a win-win cooperation model ofshared development and growth with its stakeholders.

6. Information Disclosure and Transparency

During the reporting period, the Company strictly adhered to the Listing Rules of Stocks onthe Shenzhen Stock Exchange and its Information Disclosure Management System, strengtheningthe management of information disclosure matters and actively fulfilling its informationdisclosure obligations. The Company used Securities Times, China Securities Journal, and theJuchao Website (www.cninfo.com.cn) as its designated media for information disclosure. Duringthe reporting period, the Company implemented the Insider Information Registration System,Insider Information Confidentiality System, and External Information Reporting and UsageManagement System. The Company maintained strict confidentiality procedures for significantunpublished insider information, controlling the scope of individuals with access to suchinformation. The Company diligently fulfills its obligations to provide true, accurate, timely, andcomplete information disclosure, ensuring that all investors have equal access to information andother legal rights.

7. Investor Relations Management

The Company continuously improves its investor communication mechanisms, deepens itsengagement with investors, and enhances their understanding and recognition of the Company,thereby effectively protecting the legitimate rights and interests of investors. During the reportingperiod, the Company strengthened its interactions with investors in various forms, activelyresponding to their concerns and ensuring smooth communication channels. This helped establishan efficient and fair communication bridge between the Company, investors, and the public.

The Company engaged with investors via the Shenzhen Stock Exchange's "Easy Interaction"platform (irm.cninfo.com.cn), carefully listening to their opinions and suggestions, and ensuringthat the interests of minority shareholders were well-protected. The Company also standardized thereception of investor visits, telephone inquiries, and responses to faxes and emails. Additionally, theCompany prudently handled media reports and treated all investors and institutional research visits

and consultations in a fair, just, and transparent manner. All communications related to investorinteractions were promptly disclosed, ensuring that all investors enjoyed equal access toinformation and other legal rights. Moreover, the Company maintained regular communication withinvestors through telephone conferences, participation in investment strategy meetings, and otherchannels. These efforts further increased investors' understanding of the Company and continuouslyimproved transparency in the Company's operations.

To help investors gain a better understanding of the Company's performance, financial status,and other key aspects, the Company organized the 2024 annual online performance briefing. Thisprovided investors with a more comprehensive understanding of the listed company, enhancedtransparency, and helped safeguard investors' legal rights. The Company remains committed tomaintaining shareholders' equity, upholding the principle of returning value to shareholders, andproviding long-term, steadily increasing dividend returns. During the reporting period, theCompany referred to the Return Plan for Shareholders for the Next Three Years (2024-2026) andimplemented the 2024 profit distribution plan, sharing the development achievements with itsshareholders.(II) Actual corporate governance status and compliance with legal, administrativeregulations, and CSRC requirements

□ Yes √ No

There are no significant discrepancies between the Company’s governance practices and therelevant laws, administrative regulations, and the governance standards issued by the CSRC.

II. Independence of the Company from the controlling shareholder and actual controllersin assets, personnel, finances, organizational structure, and business operations

The Company and its controlling shareholder and actual controller are completely separatedin terms of business, personnel, assets, organizational structure, and finances, each maintainingindependent accounting, assuming their own responsibilities and risks, and possessing fullyindependent business operations and self-sufficient management capabilities.

1. Business independence: The Company possesses independent and complete businessoperations as well as self-sufficient management capabilities. It has dedicated departments forprocurement, production, technology, sales, and human resources, managing its operationsautonomously, with production and operational personnel operating independently from thecontrolling shareholder and their affiliated entities. The Company's business operations are notinfluenced by or dependent on the controlling shareholder or its affiliates.

2. Personnel independence: The Company's personnel, labor, human resources, and payrollare entirely independent. The President, Vice Presidents, CFO, Board Secretary ad other seniorexecutives work exclusively for the Company and receive compensation directly from it. They do

not hold any non-directorial administrative positions in the controlling shareholder or its affiliatedentities and do not receive compensation from them.

3. Asset independence: The Company owns independent production and operational facilitiesfrom the controlling shareholder, with a complete asset structure, including production systems,auxiliary production systems, supporting facilities, land use rights, and property ownership. TheCompany also has independent procurement and sales systems, and there are no instances ofassets or funds being occupied by the controlling shareholder or its affiliates.

4. Organizational independence: The Company has established an organizational structurethat is fully independent of the controlling shareholder. The board of shareholders, board ofdirectors, and internal departments operate independently without interference from thecontrolling shareholder in the Company's operational decisions. The Company has strengthenedits power-checking mechanism through the board of shareholders, board of directors, independentdirectors, and various specialized committees, ensuring an effective corporate governancestructure.

5. Financial independence: The Company has an independent financial managementdepartment, with its own accounting system and financial management policies. It operatesseparate bank accounts and files tax returns independently. The Company does not share bankaccounts with the controlling shareholder or any other entity controlled by them. As anindependent taxpayer, the Company fulfills all tax reporting and payment obligations as requiredby law.

III. Same-Industry Competition

□ Applicable √ Not applicable

IV. Board of Directors and Senior Executives

(I) Basic information

President

g

Note: In accordance with the Company Law and Guidelines for Listed Companies, the Company willimplement a reform of the board of supervisors by eliminating the board and supervisory roles starting fromSeptember 2025.

1. Resignation of Directors and Senior Executives During the Reporting Period

√ Yes □ No

(1) On June 17, 2025, Mr. Pang Haitao resigned from his position as CFO and any otherpositions due to a job transfer. Currently holds a position in an entity related to the controllingshareholder.

(2) On October 21, 2025, Ms. Li Xia resigned from her position as the Board Secretary dueto job adjustments, but she continued to serve as the Vice President, Chief Compliance Officer,and General Counsel. On January 21, 2026, Ms. Li Xia resigned from her position as the VicePresident, Chief Compliance Officer, General Counsel, and all other positions due to a job transfer.Currently holds a position in an entity related to the controlling shareholder.

(3) On November 25, 2025, Mr. Zhong Ming resigned from his position as Director, Memberof the Strategy Committee, Nomination Committee, ESG Management Committee, and all otherpositions of the 11th Board of Directors due to a job transfer.,Still holding a position in a relatedparty entity.

(4) On January 26, 2026, Mr. Wu Dinggang resigned from his positions as Director,Chairman, Chair of the Strategy Committee, Member of the Audit Committee, Member of theNomination Committee, Member of the Compensation and Appraisal Committee, Chair of theESG Management Committee, and all other positions of the 11th Board of Directors due to a jobtransfer, Still holds a position in the controlling shareholder's entity.

(5) On April 1, 2026, due to the restructuring of the Company's governance, Mr. Cheng Pingno longer serves as a Director of the 11th Board of Directors, Member of the Strategy Committee,

Member of the ESG Management Committee, or holds any other position in the Company. Hestill holds a position at the controlling shareholder’s related entity.

(6) On April 1, 2026, Mr. Hu Zhaogui resigned from his position as Vice President due to ajob transfer but continued to serve as the Chairman of the Company's subsidiary, SichuanChanghong Air Conditioner Co., Ltd.

(7) On April 1, 2026, Mr. Kou Huameng resigned from his position as Vice President and allother positions due to a job transfer. Currently serving in related positions at affiliated units.

(8) On April 1, 2026, Mr. Wang Xiaocheng resigned from his position as Vice President dueto a job transfer. Continued to hold a position at the company afterward.

2. Changes in directors and senior executives

√ Applicable □ Not applicable

approval until the expiration of the 11th Board ofDirectors' term.

ComplianceOfficer

(II) Employment information

1. Professional Background, Key Work Experience, and Current Responsibilities of theCompany’s Current Directors and Senior Executives

(1) Li Xiaodong, male, Tibetan, born in April 1984 in Pingwu, Sichuan, a member of theCommunist Party of China, with a graduate degree in Business Administration from theUniversity of Electronic Science and Technology of China, holding a Master's degree in BusinessAdministration. Mr. Li has held various positions including Business Manager at SichuanChanghong Air Conditioner Co., Ltd.; Office Supervisor at Sichuan Changhong ElectronicsHolding Group Co., Ltd.; Head of Operations Management Department at Mianyang Science &Technology City Big Data Technology Co., Ltd.; Director of the Mass Organization Office andSecretary of the Youth League Committee at Sichuan Changhong Electronics Holding Group Co.,Ltd.; Director of the Corporate Planning Department at Sichuan Changhong Electric Co., Ltd.;and Senior Expert and Convener of the Thought Laboratory, Director of the Party CommitteeOrganization Department, Director of the Talent Development Department, and Director of theChanghong Training Center at Sichuan Changhong Electronics Holding Group Co., Ltd. Hecurrently serves as a Member of the Party Committee of Sichuan Changhong Electronics HoldingGroup Co., Ltd. and Chairman of the Company.

(2) Tang Youdao, male, Han, born in July 1970 in Xuancheng, Anhui, a member of theCommunist Party of China, with a Bachelor's degree in Industrial Management Engineering fromWuhan University of Technology. Mr. Tang has held various positions including OverseasMarketing Manager, Marketing Department Head, Overseas Marketing Department Head,General Manager of the Overseas Business Division, General Manager of the Refrigerator-washerDivision Headquarters, and General Manager and Vice President of the International Refrigerator-washer Division. He currently serves as a director and president of the Company, and Chairman ofZhongke Meiling Cryogenic Technology Co., Ltd.

(3) Zhao Qilin, male, Han, born in September 1975 in Nanjiang, Sichuan, a member of theCommunist Party of China, with a Bachelor's degree in Rural Finance from Southwest Universityof Finance and Economics. He has held various positions, including Accountant and InvestmentProject Manager in the Finance Department, Manager of the Asset Management Division andInvestment Management Division, Securities Affairs Representative, and Director of the AssetManagement Department at Sichuan Changhong Electric Co., Ltd.; Financial Manager at SichuanChanghong Innovation Investment Co., Ltd.; Chief Financial Officer of Sichuan Broadcasting &Television Starry Sky Changhong Digital Mobile TV Co., Ltd.;and Financial Director and Joint

Company Secretary at Changhong Jiahua Holdings Co., Ltd. He currently serves as the BoardSecretary, Chief Compliance Officer, General Counsel, Director of the Board Office, ESGManagement Office Director, and Comprehensive Management Department Head at SichuanChanghong Electric Co., Ltd., Chairman of Sichuan Changhong Minsheng Logistics Co., Ltd. andDirector of the Company.

(4) Yi Suqin, female, Han, born in August 1978 in Xiantao, Hubei, a member of theCommunist Party of China. She holds a master’s degree in Business Administration (MBA) fromthe University of Electronic Science and Technology of China and a bachelor’s degree inInternational Accounting from Zhongnan University of Economics and Law. She is a senioraccountant. She has held various positions at Sichuan Changhong Electric Co., Ltd., includingSupervisor Accountant at the Jining Sales Branch and Shijiazhuang Sales Branch, Marketing andFinancial Supervisor, and Cost and Expense Manager at the Multimedia Company, Tax Managerand Head of the Tax Department at the Finance Department, Senior Manager of Tax andComprehensive Affairs, and Deputy Director of the Financial Management Department. Shecurrently serves as Financial Department Director at Sichuan Changhong Electronics HoldingGroup Co., Ltd., Director of Sichuan Changhong Group Finance Co., Ltd., Director of MianyangInvestment Holding (Group) Co., Ltd., and Director of the Company.

(5) Lu Haiyang, male, Han, born in October 1984 in Ji'an, Jiangxi, a member of theCommunist Party of China, with a Bachelor's degree from Zhejiang University of Technology. Mr.Lu has served as the Head of the Economic Audit Section at the Mianyang Audit Bureau andDeputy Director of the Audit Department at Sichuan Changhong Electronics Holding Group Co.,Ltd. He currently serves as the Employee Director and Union Chairman of the Company.

(6) Fang Wei, male, Han, born in September 1969 in Wuhu, Anhui, a member of theCommunist Party of China, a Senior Accountant with a diploma. Mr. Fang has held variouspositions including Section Chief of the Finance Department at Hefei Sifang Chemical Group Co.,Ltd.; Deputy Director and Director of the Financial Planning Department at Hefei IndustrialInvestment Holding Co., Ltd.; and General Manager of the Financial Planning Department atHefei Industry Investment Holding (Group) Co., Ltd. He currently serves as the Chief Economistat Hefei Industrial Investment Holding Co., Ltd. and as a director of the Company.

(7) Mou Wen, female, Han, born in September 1965 in Hengshan, Hunan, with a Master'sdegree in Business Administration from Sichuan University. She has held positions as a Lecturerand Associate Professor in Accounting at the Business School, Sichuan University. She has alsoserved as an Independent Director at companies including Tibet Mining Development Co., Ltd.,Sichuan Jinlu Group Co., Ltd., Changhong Huayi Compressor Co., Ltd., Jinhui Liquor Co., Ltd.,Sichuan Teway Food Group Co., Ltd., Hebei Baoli Engineering Equipment Group Co., Ltd., FulinPrecision Machining Co., Ltd., and Chengdu Silicon Treasure Technology Co., Ltd. Additionally,she has been an Independent Director at Sichuan Joyou Digital Technology Co., Ltd., a member

of the Investment Decision-Making Advisory Committee at Sichuan Chuanjiao Road & BridgeCo., Ltd., and a Financial Advisor to Sichuan Daka Electric Co., Ltd. She is currently an AssociateProfessor of Accounting and a Master's Supervisor at the Business School, Sichuan University.She also serves as an Independent Director at Tibet Mining Development Co., Ltd., ChengduRuixue Fengtai Precision Electronics Co., Ltd., and as an Independent Director at the Company.

(8) Hong Yuanjia, male, Han, born in February 1975 in Shantou, Guangdong, with a Master'sdegree, graduated from Shanghai University of Finance and Economics with a major inInternational Business Management, and a Master's degree in MPAcc (Master of ProfessionalAccounting) from Fudan University. He is a Certified Public Accountant, InternationalAccountant (AIA), Intermediate Accountant, and Intermediate Economist. Mr. Hong has heldvarious positions including Foreign Currency Payable Supervisor and Investment Supervisor atChina Eastern Airlines Corporation Limited, Deputy Manager of the Finance Department atSancheng Hongji (Hong Kong) Co., Ltd. Shanghai Representative Office, Accounting Manager atGE Lighting Co., Ltd., Accounting Manager at G&E Industrial Supplies Co., Ltd., and FinancialDirector at Lineage Power. He currently serves as the APAC Financial Director at Elo TouchSolutions (Shanghai) Co., Ltd. and as an Independent Director of the Company.

(9) Cheng Wenlong, male, Han, born in September 1969 in Ningguo, Anhui, with a Doctoraldegree, graduated from the University of Science and Technology of China with a Ph.D. inEngineering Thermophysics. Mr. Cheng has held various academic positions at the University ofScience and Technology of China, including Assistant Professor, Lecturer, Associate Professor,and Professor. He has also served as an Independent Director at Beijing Jones Tech Co., Ltd. Hecurrently serves as a Professor and Doctoral Supervisor at the School of Engineering Science,University of Science and Technology of China, and as the Vice President of the AnhuiAssociation of Refrigeration, in addition to being an Independent Director of the Company.

(10) Huang Herong, male, Han, born in October 1975 in Lichuan, Jiangxi, a member of theCommunist Party of China, graduated from Zhejiang University with a major in Refrigeration andCryogenic Technology and earned an MBA from Sun Yat-sen University. Mr. Huang has heldpositions such as Head of the Technical Development Department, General Manager of theMarketing Company, Vice General Manager, and General Manager at Zhongshan ChanghongElectric Co., Ltd. He has also served as Vice General Manager and General Manager of theCentral Air Conditioning Division of Sichuan Changhong Air Conditioner Co., Ltd., Vice GeneralManager of the International Division at Changhong Meiling. Currently, he serves as the VicePresident of the Company and General Manager of Sichuan Changhong Air Conditioner Co., Ltd.

(11) Tang Shenjie, male, Han, born in October 1987 in Lu'an, Anhui, with a Bachelor'sdegree from Anhui University of Engineering, a Senior Engineer. Mr. Tang has held variouspositions including Product Manager at Changhong Meiling User and Product Center, Director ofthe Standardized Operations Platform, Director of the Product Competitiveness Platform, and

Assistant General Manager. He currently serves as the Vice President of the Company andGeneral Manager of the Refrigerator (Freezer) Division.

(12) Zhang Hao, male, Han, born in February 1987 in Xuancheng, Anhui, with a Bachelor'sdegree from Hefei University of Technology. Mr. Zhang has held various positions includingProduct Planning Manager of the Washing Machine Division, General Manager of the User andProduct Center, and Vice General Manager of the Washing Machine Division at ChanghongMeiling Co., Ltd.. He currently serves as the Vice President of the Company and GeneralManager of the Washing Machine Division.

(13) Yang Bing, male, Han, born in December 1974 in Xichong, Sichuan, a member of theCommunist Party of China, a Senior Accountant with a Bachelor's degree, graduated from ShanxiUniversity of Finance and Economics. Mr. Yang has held various positions including FinancialSupervisor at the Marketing Department, Audit Accountant, Manager of the Internal ControlDepartment, Manager of the General Ledger Department, General Manager of the CapitalManagement Center at Sichuan Changhong Electric Co., Ltd., CFO at Zhongshan ChanghongElectric Co., Ltd., Vice General Manager and Financial Director at Sichuan Changhong AirConditioner Co., Ltd., and CFO at Sichuan Zhiyijia Network Technology Co., Ltd. He currentlyserves as the CFO of the Company and as a Director of Zhongke Meiling Cryogenic TechnologyCo., Ltd.

(14) Yang Liuxu, female, Han, born in January 1985 in Qingyang, Gansu, with a Bachelor'sdegree in Accounting from Northeast Agricultural University, and a Mid-level Accountant. Ms.Yang has held positions such as Accountant in the Finance Department at Sichuan HuafengEnterprise Group Co., Ltd., Asset Management Project Manager, Financing and Mergers &Acquisitions Manager, Restructuring and Reform Manager, Supervisor of the Board Office, andSecurities Affairs Representative at Sichuan Changhong Electric Co., Ltd. She currently serves asthe Board Secretary of the Company and a Director of Zhongke Meiling Cryogenic TechnologyCo., Ltd.

2. Situation where the controlling shareholder and actual controller concurrently serveas the chairman and CEO of the listed company

□ Applicable √ Not applicable

3. Employment status at shareholder units

√ Applicable □ Not applicable

Zhao Qilin

4. Employment status at other units

√ Applicable □ Not applicable

In addition to their positions at the Company and its subsidiaries, the current directors andsenior executives of the Company hold the following positions in other units:

Changhong Jiahua Holdings Limited

Hefei Xingmei Asset ManagementCo., Ltd.

5. Penalties imposed by securities regulatory authorities on current and past directorsand senior executives in the last three years

□ Applicable √ Not applicable

(III) Compensation of directors and senior executives

1. Decision-making process, basis, and actual payment of compensation for directorsand senior executives

The Company’s board of directors has set up a Compensation and Appraisal Committee, whichis responsible for formulating the evaluation criteria for directors and senior executives, andconducting the evaluations. The committee is also responsible for formulating and reviewing thecompensation policies and plans for directors and senior executives and reports to the board ofdirectors. The Compensation and Appraisal Committee proposes the compensation amount andreward methods for directors and senior executives based on their performance evaluations and theCompany’s senior executives incentive plans. The Company determines the compensation based onoperational performance and other factors.

2. Compensation of directors and senior executives during the reporting period

Unit: RMB 10,000

Hong Yuanjia

Note: 1. During the reporting period, the total pre-tax remuneration received by directors and seniormanagement from the company decreased by approximately 31.88% year-on-year compared with 2024.

2. In the table above, the total pre-tax compensation received by Mr. Tang Youdao, Mr. Hu Zhaogui, Mr.Kou Huameng, Ms. Li Xia, and Mr. Pang Haitao from the company includes the salary already paid in 2025, aswell as deferred 2024 performance incentives and part of the performance annual salary. Mr. Tang Youdao:

RMB 622,600; Mr. Hu Zhaogui: RMB 636,500; Mr. Kou Huameng: RMB 358,700; Ms. Li Xia: RMB 222,700；and Mr. Pang Haitao: RMB 272,400.

3.Mr. Yang Bing has served as CFO since June 18, 2025.

4. Ms. Yang Liuxu has served as the Board Secretary since October 22, 2025.

5. Mr. Pang Haitao served as CFO from January 1, 2025, to June 17, 2025.

6. Mr. Wang Xiaocheng has served as the Vice President of our company since May 28, 2025.

directors and senior executives at the end of the reportingperiod

Explanation of other information

□ Applicable √ Not applicable

V. The Performance of Directors' Duties During the Reporting Period(I) Attendance of directors at Board and shareholders’ meetings

Explanation for Not Attending Two Consecutive Board Meetings in Person

During the reporting period, no director of the Company failed to attend two consecutiveboard meetings in person.(II) Objections raised by directors on the Company’s mattersDid directors raise objections to the Company’s relevant matters?

□ Yes √ No

During the reporting period, no objections were raised by the directors regarding theCompany’s matters.

(III) Other explanations regarding the performance of directors' duties

Were directors' suggestions accepted by the Company?

√ Yes □ No

During the reporting period, the Company’s directors strictly followed the requirements ofrelevant laws and regulations, such as the Company Law, Securities Law, the Listing Rules ofStocks on the Shenzhen Stock Exchange and the Self-Regulation Guidelines of the Shenzhen StockExchange for Listed Companies No. 1 – Standard Operations for Companies Listed on the MainBoard, actively attended board meetings, and participated in shareholders’ meetings. They diligentlyand conscientiously fulfilled their duties, made prudent and scientific decisions on various mattersdiscussed by the board of directors, and proposed relevant opinions and suggestions. All theopinions and suggestions raised by the directors on the Company’s major decisions have beenadopted.

VI. Activities of the Board’s Special Committees During the Reporting Period

May 21,2025

of Directors fordeliberation.

June 16,2025

November3, 2025

VII. Work of the Audit CommitteeDuring the reporting period, the Audit Committee examined whether the Company faced anyrisks

□ Yes √ No

The Audit Committee has no objections regarding the supervisory matters during the reportingperiod.VIII. Company Employees(I) Number of employees, professional composition, and education level

Category of profession

(II) Compensation policyThe Company strictly complies with relevant national laws and regulations, and, in line withits strategic development needs, continuously builds a compensation management system thatensures internal equity and external competitiveness, providing strong support for the Company’ssustainable development.

1. Establishing a scientific compensation system to strengthen value orientationThe Company has established a comprehensive compensation management system andperformance management framework, clearly defining directions for employee performanceimprovement. This effectively guides employees to proactively identify gaps, address weaknesses,and continuously enhance their professional skills and work efficiency. Regarding job valueassessment, the Company has developed evaluation models covering key positions, scientificallymeasuring them across dimensions such as job responsibilities, required competencies, and level ofcontribution. Based on these assessments, fair and reasonable compensation standards aredetermined. At the same time, a salary adjustment mechanism aligned with employee growth levelshas been established, reinforcing the compensation management philosophy of “value-based onposition and performance-oriented”, ensuring the internal fairness and external competitiveness ofthe compensation system.

2. Implementing differentiated incentives to stimulate organizational vitalityTo promote the achievement of performance targets across business units, the Companydesigns differentiated reward programs tailored to the characteristics of each business, balancingsystemic fairness while ensuring the effectiveness of positive guidance, thereby effectivelystimulating operational vitality. At the same time, a diversified incentive system has beenestablished, focusing on four core dimensions: growth incentives, welfare incentives, recognition

incentives, and emotional incentives, comprehensively enhancing employee motivation and senseof belonging.

3. Opening career development pathways to promote talent growthDuring the reporting period, the Company further optimized its position promotion andevaluation mechanisms, refining the position system and hierarchical promotion channels. Throughmechanisms such as point-based evaluations and competency growth frameworks, aligned withdynamic salary adjustments, team vitality is effectively stimulated. The Company continues toadvance full-process performance management, enhancing digital tools for performancecommunication and feedback, and implements performance assessments, communication, andfeedback at different cycles according to business characteristics. Performance evaluation methodsare continuously optimized, enforcing rigid performance standards and “survival of the fittest”management models, and strengthening the application of performance results in areas such asposition promotion and demotion, talent selection, talent mobility, salary adjustment, and annualawards. These measures promote an optimized talent structure and facilitate the joint developmentof employees and the Company.(III) Training planAiming to build a learning-oriented organization, the Company has systematically developeda talent development system that covers all employees and spans the entire employment lifecycle.Based on the annual talent development and training framework, the Company has further refinedthe standards and competency models for each talent stream, launched the Meiling Learning Map,and continuously extracted and consolidated internal experience and professional capabilities,promoting close integration of training with employee growth and career development.

1. Strengthening the construction of the talent succession pipeline to consolidate thefoundation for sustainable development

The Company has established a clear talent standard evaluation model and completed thedevelopment of talent standards for management positions, supervisory positions, andprofessional positions across all streams. A talent succession map has been created for keypositions, systematically reviewing the current capabilities of existing talent and clarifying futuresuccession paths. Special attention has been given to optimizing the structure of the “YongquanProgram” talent reserve pipeline. Through the selection of young reserve cadres and regularreview and assessment of the talent pool, the Company dynamically adjusts the reserve databasefor mid-to-senior management, the A-level successor pool, the A-level growth pool, the B-levelsupervisory pool, and the pool of outstanding university graduates, forming a well-structured andadequately stocked talent pipeline. Simultaneously, a readiness assessment model for the talentsuccession pipeline has been developed, comprehensively evaluating candidates across multipledimensions, including values, performance, career experience, competency for target positions,

and leadership. This allows precise measurement of talent readiness and the targeted assignmentof development plans aligned with their career paths.

2. Implementing targeted development programs to enhance training effectivenessClosely aligned with business development needs, the Company has built a multi-level,multi-category talent development system. Training engagement and professional horizons arestimulated through project-based exercises, industry exchanges, and similar activities. To addresscommon team deficiencies and individual skill gaps, targeted development programs areformulated using methods such as external course enrollment, internal course development,corporate visits, and internalization of expert experience. For critical positions, a promotion-oriented learning map has been established to clarify growth pathways and professionaldevelopment trajectories.A training organizational support system has been established, forming a classified andhierarchical talent training framework. Mechanisms such as career planning analysis, targetedcourse recommendations, milestone monitoring, project reviews, and effectiveness evaluationseffectively guide employees in both vertical promotions and horizontal rotations (e.g., multi-skilled development), resulting in comprehensive employee development. Training outcomes andthe number of promoted talents have steadily increased.

3. Enriching knowledge asset management to promote experience transfer andprofessional developmentThe Company continuously optimizes its knowledge asset management system, redefiningknowledge asset standards and organizational support frameworks. Efforts are made to enrich andupdate the educational materials within knowledge asset libraries such as the Meiling TechnicalAcademy, Management Academy, Manufacturing Academy, Quality Academy, Safety andEnvironmental Academy, and Party Building Academy. Building on the “Internal TrainerCertification System” and the “Benchmark Position Knowledge Extraction Project”, professionallive-stream courses are optimized and internalized to form a standardized talent knowledgerepository, facilitating the transfer and sharing of experience. In parallel, the Company plans andimplements the Learning Map Project, systematically designing sequences for areas such asprocess, structure, and finance, closely linking job qualifications with learning pathways. Thiscreates an integrated connection between talent development and learning growth, promoting thescientific, systematic, and efficient cultivation of professionals across all sequences. Focusing onkey position sequences, a phased micro-course resource library for learning maps is developed tosupport the deepening professionalization of the talent pipeline.

4. Labor outsourcing

□ Applicable √ Not applicable

IX. Company Profit Distribution and Capital Reserve-to-Share Capital Conversion(I) Profit distribution policy during the reporting period, particularly the formulation,implementation, or adjustment of cash dividend policy

√ Applicable □ Not applicable

During the reporting period, the Company strictly implemented its profit distribution policyin accordance with the Articles of Association and the Return Plan for Shareholders for the NextThree Years (2024 -2026). The formulation and execution of the Company’s cash dividend policycomplied with the provisions of the Articles of Association, the Three-Year Shareholder ReturnPlan (2024–2026), and the resolutions of the Board of Shareholders. Dividend standards andratios were clearly defined, relevant decision-making procedures and mechanisms were well-established, and the responsibilities of independent directors were clearly defined and effectivelyfulfilled. Minority shareholders had sufficient opportunities to express opinions and make requests,ensuring that their legitimate rights and interests were protected.

During the reporting period, the Company implemented the 2024 annual profit distributionplan. Based on the total share capital of 1,029,923,715 shares as of the record date for the 2024equity distribution plan (comprising 881,733,881 A shares and 148,189,834 B shares), a cashdividend of RMB 3.30 per 10 shares (inclusive of tax) was distributed to all shareholders, totalingRMB 339,874,825.95. The dividend accounted for 48.60% of the net profit attributable toshareholders of the listed company in 2024.

(II) Whether the company was profitable during the reporting period with positivedistributable profit of the parent company but did not propose a cash dividend plan

□ Applicable √ Not applicable

(III) Profit distribution and capital reserve-to-share capital conversion during thereporting period

√ Applicable □ Not applicable

the Articles of Association, taking into account the interests of shareholders and the Company’slong-term development needs, it is proposed that: The Company based the distribution on thetotal share capital of 1,029,923,715 shares, excluding shares held in the special securities accountfor repurchase. A cash dividend of RMB 2.10 per 10 shares (inclusive of tax) was distributed toall shareholders. No bonus shares were issued, and no shares were converted from the capitalreserve. The total cash dividend is expected not to exceed RMB 211,831,650.45 (inclusive of tax,based on the estimated number of shares repurchased as of March 31, 2026). After thisdistribution, the remaining undistributed profits of the parent company will be carried forward fordistribution in subsequent years.If the total share capital of the company changes or the number of shares in the repurchasespecial securities account changes between the announcement of the company's profit distributionplan and the record date for the implementation of the equity distribution, the total distributionamount shall be adjusted accordingly according to the principle of 'unchanged per-sharedistribution ratio'.

the Articles of Association, taking into account the interests of shareholders and the Company’slong-term development needs, it is proposed that: The Company based the distribution on thetotal share capital of 1,029,923,715 shares, excluding shares held in the special securities accountfor repurchase. A cash dividend of RMB 2.10 per 10 shares (inclusive of tax) was distributed toall shareholders. No bonus shares were issued, and no shares were converted from the capitalreserve. The total cash dividend is expected not to exceed RMB 211,831,650.45 (inclusive of tax,based on the estimated number of shares repurchased as of March 31, 2026). After thisdistribution, the remaining undistributed profits of the parent company will be carried forward fordistribution in subsequent years.If the total share capital of the company changes or the number of shares in the repurchasespecial securities account changes between the announcement of the company's profit distributionplan and the record date for the implementation of the equity distribution, the total distributionamount shall be adjusted accordingly according to the principle of 'unchanged per-sharedistribution ratio'.

X. Implementation of the Company’s Equity Incentive Plans, Employee Stock OwnershipPlans, or Other Employee Incentive Measures

□ Applicable √ Not applicable

During the reporting period, the Company had no equity incentive plans, employee stockownership plans, or other employee incentive measures, nor any implementation thereof.

XI. Construction and Implementation of Internal Control Systems during the ReportingPeriod

(I) Construction and implementation of internal control

In accordance with the Basic Standards for Enterprise Internal Control and its supportingguidelines, as well as relevant regulations such as the CSRC and Ministry of Finance jointlyissued Rules for the Compilation and Disclosure of Information by Companies Publicly IssuingSecurities No. 21—General Provisions on Annual Internal Control Evaluation Reports, and basedon the Company’s internal control system and internal control evaluation methods, the Companyhas organized and carried out internal control work, effectively implementing internal controls.The Company continuously improves and optimizes its internal control system to adapt to theevolving requirements and changes of internal and external environments.

The Company’s 2025 Annual Internal Control Self-Evaluation Report fully, truthfully, andaccurately reflects the actual status of the Company’s internal controls. The units, businessactivities, and matters included within the scope of the evaluation, as well as high-risk areas,cover the main aspects of the Company’s operations and management. The Company has

maintained effective internal controls in high-risk areas and across all material aspects. During thereporting period, no material or significant deficiencies in internal control were identified.(II) Specific instances of material deficiencies in internal control identified during thereporting period

□ Yes √ No

XII. Management and Control of Subsidiaries during the Reporting Period

Abnormalities in the management and control of subsidiaries

□ Yes √ No

XIII. Internal Control Evaluation Report or Internal Control Audit Report(I) Internal control evaluation report

Category

misstatement ﹤ 0.1%.

(II) Internal control audit report

√ Applicable □ Not applicable

Whether the accounting firm issued a non-standard opinion on the internal control auditreport

□ Yes √ No

Consistency between the accounting firm’s internal control audit report and the board’s self-evaluation report

√ Yes □ No

Whether a non-standard internal control audit opinion was issued in the reporting period orthe previous year

□ Yes √ No

XIV. Rectification Status of Issues Identified in the Special Self-Inspection on ListedCompany Governance

√ Yes □ No

For details, please refer to Item 15 of Chapter 4, Rectification of Issues Identified in theSpecial Self-Inspection on Listed Company Governance, in the Company’s 2022 Annual Report.As of now, the following issues identified during the Company’s self-inspection and reviewprocess have not yet been fully rectified:

(I) Subsidiaries’ holdings of the Company’s shares and rectification status

1. The Company’s wholly-owned subsidiary, Meiling Group, holds 1,141,053 restrictedshares of the Company. These restricted shares held by Meiling Group represent the equityconsideration it advanced on behalf of other non-tradable shareholders under the Company’sShare Reform Plan. In March 2016, pursuant to the approval of the SASAC, 49,477,513 state-owned shares of the Company originally held by the former shareholder Hefei Xingtai HoldingGroup Co., Ltd. (including 47,823,401 shares already held and 1,654,112 shares advanced onbehalf of other non-tradable shareholders under the Share Reform Plan, along with related rightsto the equity consideration) were transferred free of charge to Industry Investment Group.Therefore, the restricted shares of the Company held by Meiling Group should be transferred toIndustry Investment Group free of charge.

2. According to the approval of the SASAC and relevant regulations, Meiling Group isrequired, after recovering all 1,654,112 shares of equity consideration advanced on behalf of othershareholders, to transfer the advanced shares and related rights it holds to Industry InvestmentGroup free of charge in a single transaction. Currently, Meiling Group has only recovered1,141,053 shares, while the holders of the remaining equity consideration shares have beenrepeatedly and unsuccessfully unreachable over the years, making the timeline for full recovery ofthe advanced shares highly uncertain. Nevertheless, the Company will continue to activelypromote the recovery of the advanced shares by Meiling Group and, upon full recovery of allequity consideration shares, will promptly complete the relevant free transfer procedures. Untilthen, the restricted shares of the Company held by Meiling Group will not confer any shareholderrights during the holding period, including voting rights, dividend rights, or other entitlements.

XV. Environmental Information Disclosure

Whether the listed company and its major subsidiaries are included in the list of enterpriseslegally required to disclose environmental information

√ Yes □ No

XVI. Social Responsibility

For detailed information in this section, please refer to the 2025 Environmental, Social andCorporate Governance (ESG) Report of Changhong Meiling Co., Ltd. disclosed by the Companyon the same day on the Juchao website.

XVII. Efforts to Consolidate and Expand Poverty Alleviation Achievements and PromoteRural Revitalization

The Company has consistently and resolutely implemented the decisions and deployments ofthe CPC Central Committee and the State Council regarding rural revitalization, activelyresponding to national calls and contributing corporate strength to rural development. During thereporting period, the Company’s initiatives to support farmers extended to eight provinces andmunicipalities in China, focusing on local specialty agriculture and the real needs of farmers.These efforts assisted over 1,000 farmers in addressing the challenges of unsold local fruits andvegetables, bringing fresh and sweet produce from remote areas to consumers’ tables. TheCompany’s farmer-support initiatives not only continuously enhance brand value and fulfillcorporate social responsibility but also serve as an important emotional bridge connecting thebrand with its users, strengthening public recognition and trust in Changhong Meiling. At thesame time, these initiatives help local specialty products reach a national market, showcasing thediversity and cultural charm of China’s rural areas and reinforcing cultural confidence. Lookingahead, the Company will continue to expand the scope of its farmer-support initiatives to helpmore farmers overcome the challenges of unsold agricultural products.

Section V Important EventsI. Fulfillment of Commitment Matters(I) Commitment matters fulfilled during the reporting period and those not yet fulfilledas of the end of the reporting period by the Company’s actual controller, shareholders, relatedparties, acquirers, and other relevant parties

√ Applicable □ Not applicable

Commitment andguarantee in theAcquisitionReport of HefeiMeiling Co., Ltd.regarding theavoidance ofcompetitionwithin the sameindustry

regarding thereduction andregulation ofrelated partytransactions withMeiling Electric

Commitmentregardingnon-reductionofshareholding

If any commitments remain unfulfilled beyond theagreed period, the specific reasons for non-fulfillment and the next steps shall be detailed

N/A

Note: Commitments that have been fully fulfilled will no longer be disclosed in the next periodicreport.(II) The Company has profit forecasts for certain assets or projects, and the reportingperiod is still within the forecast period; the Company shall provide an explanation ofwhether the original profit forecasts have been achieved and the reasons thereof

□ Applicable √ Not applicable

(III) The Company is involved in performance commitments

□ Applicable √ Not applicable

II. Non-Operational Fund Occupation from Controlling Shareholders and Its RelatedParty

□ Applicable √ Not applicable

No non-operational fund occupation from controlling shareholders and its related party in thereporting period.

III. External Guarantee out of the Regulations

□ Applicable √ Not applicable

No external guarantee out of the regulations occurred in the reporting period.IV. Board of Directors’ Explanation Regarding the Most Recent “Non-Standard AuditReport”

□ Applicable √ Not applicable

V. Explanation by the Board of Directors and Independent Directors (If Any) on theAccounting Firm’s “Non-Standard Audit Report” for the Current Reporting Period

□ Applicable √ Not applicable

VI. Explanation of Changes in Accounting Policies, Accounting Estimates, or Correctionsof Material Accounting Errors Compared with the Previous Year’s Financial Report

□ Applicable √ Not applicable

The Company had no changes in accounting policies or estimates, nor any corrections ofmaterial accounting errors during the reporting period.

VII. Explanation of Changes in the Scope of Consolidated Financial StatementsCompared with the Previous Year’s Financial Report

√ Applicable □ Not applicable

The Company’s consolidated financial statements cover 25 subsidiaries, including SichuanChanghong Air Conditioner Co., Ltd., Zhongshan Changhong Electric Co., Ltd., and ZhongkeMeiling Cryogenic Technology Co., Ltd. Compared with the previous year, during the reportingperiod, one new subsidiary, Mianyang Changhong Smart Home Appliances Co., Ltd., was addedto the scope of consolidation, and 1 subsidiary, Hefei IoT Technology Co., Ltd., was deregistered.For detailed information, please refer to Section VIII "Financial Report" of this report,specifically “IX. Changes in the Consolidation Scope" and “X. Equity in Other Entities".

VIII. Appointment and Dismissal of Accounting Firms

(I) Currently appointed accounting firm

Foreign accounting firm remuneration (RMB 10,000)(if any)

(II) Change of accounting firm during the period

□ Yes √ No

Engagement of internal control audit firm, financial advisor, or sponsor

√ Applicable □ Not applicable

During the reporting period, the Company engaged Pan-China Certified Public AccountantsLLP as its internal control audit firm, paying RMB 300,000 for internal control audit services.IX. Risk of Delisting After the Annual Report Disclosure

□ Applicable √ Not applicable

X. Matters Related to Bankruptcy Reorganization

□ Applicable √ Not applicable

The Company did not experience any matters related to bankruptcy reorganization during thereporting period.

XI. Major Litigation and Arbitration Matters

√ Applicable □ Not applicable

according to statistics, Tianjin Pengsheng,the defendant, still owed Zhiyijia a paymentof RMB 96,174,308.42. Based on this,Zhiyijia, the plaintiff brought a lawsuitagainst Tianjin Pengsheng, the defendant tothe People's Court of Mianyang High-techIndustrial Development Zone, andrequested the court to order TianjinPengsheng to immediately pay the plaintiffRMB 96,174,308.42 and the correspondingliquidated damages for overdue payment,and bear the related litigation costs andproperty preservation guarantee fees.

Note: An estimated liability of RMB 33,463,900 was recognized in 2025. For details, pleaserefer to “Section VIII Financial Report”, “V. Notes to Major Items of Consolidate FinancialStatement”, specifically “40. Estimated liabilities” in this report.

Note: The Company's shareholding in Zhiyijia is 50%, and the products are sold throughZhiyijia's smart trading platform. The customers, channels and sales transactions corresponding tothe products sold are controlled and docked by the company itself, and the external transactionobject is Zhiyijia, and related party transactions are formed between the Company and Zhiyijia. Interms of payment settlement, the Company and Zhiyijia follow the principle of "external customeraccount period is Zhiyijia's account period to the Company, and external customer payment isZhiyijia's payment to the Company, which is not allowed to be remained or transited at Zhiyijia".The amounts involved in this case are all accounts receivable and liquidated damages for overduepayment caused by the Company's sales through the smart trading platform of Zhiyijia, but thesubject of the agreement is Zhiyijia, and this lawsuit will be filed by Zhiyijia. The Company andits associate Zhiyijia will claim their legitimate rights and interests according to law and activelytake relevant measures to safeguard the legitimate rights and interests of the Company, Zhiyijiaand the investors.

XII. Penalty and Rectification

□ Applicable √ Not applicable

XIII. Integrity of the Company and Its Controlling Shareholders and Actual Controllers

√ Applicable □ Not applicable

During the reporting period, the Company and its controlling shareholders and actualcontrollers maintained a good integrity status, with no instances of failing to comply witheffective court judgments or defaulting on significant debts upon maturity.

XIV. Major Related Party Transaction(I) Related party transaction with routine operation concerned

√ Applicable □ Not applicable

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Sichuan Changhong and its subsidiaries will not exceed RMB 6 million (excluding tax). The actual amount incurred during the reporting period was RMB 10.8644million. Although the actual amount incurred during the reporting period was RMB 10.8644 million, the total actual amount of routine related party transactionsbetween the Company and Sichuan Changhong and its subsidiaries did not exceed the estimated total amount, which complies with Article 25 of the Self-RegulatoryGuidelines No. 7 of the Shenzhen Stock Exchange for Listed Companies — Transactions and Related Party Transactions.

(II) Related party transactions arising from asset or equity acquisitions and disposals

□ Applicable √ Not applicable

No related party transactions involving asset or equity acquisitions or disposals occurredduring the reporting period.(III) Related party transactions involving joint external investments

□ Applicable √ Not applicable

No related party transactions involving joint external investments occurred during thereporting period.

(IV) Related party creditor’s rights and debts

√ Applicable □ Not applicable

Whether there are non-operating related party creditor’s rights and debts

□ Yes √ No

There were no non-operating related party creditor’s rights and debts during the reportingperiod.

(V) Transactions with financial companies with related party relationships

√ Applicable □ Not applicable

Deposit business

Credit facilities or other financial services

Finance Co., Ltd.

Note 1: Zhongke Meiling, a subsidiary of the Company, is a company listed on the BeijingStock Exchange. For its transactions with related financial companies, please refer to ZhongkeMeiling’s 2025 Annual Report.Note 2: As of the end of the reporting period, Changhong Finance Company had a registeredcapital of RMB 2,693,938,365.84. The Company and Changhong Huayi each held 14.96% equityinterests in Changhong Finance Company, while the Company’s controlling shareholder, SichuanChanghong Electric Co., Ltd., and its controlling shareholder, Sichuan Changhong ElectronicsHolding Group Co., Ltd., each held 35.04% equity interests in Changhong Finance Company.Note 3: On October 16 and November 3, 2023, the Company convened the 35th meeting ofthe 10th Board of Directors and the 2nd extraordinary general meeting of shareholders of 2023,respectively, and approved the continuation of financial service cooperation with ChanghongFinance Company and the renewal of the Financial Services Agreement for a term of three years.Within its business scope, Changhong Finance Company provides a series of financial services,including deposit and loan services, to the Company and its subsidiaries (excluding ZhongkeMeiling and its subsidiaries) in accordance with their requirements.(VI) Transactions between the Company’s controlled financial company and relatedparties

□ Applicable √ Not applicable

There were no deposit, loan, credit, or other financial service transactions between theCompany’s controlled financial company and related parties.

(VII) Other significant related party transactions

√ Applicable □ Not applicable

1. On May 23, 2025, upon deliberation and approval at the 16th meeting of the 11th Board ofDirectors and the 10th meeting of the 11th Board of Supervisors, it was agreed to increase theestimated amount of routine related party transactions for the Company to sell goods to SichuanChanghong in 2025 by no more than RMB 12.5 million (excluding tax). After this increase, it is

estimated that the total amount of routine related party transactions between the Company and itssubsidiaries and Sichuan Changhong in 2025 for the sale of goods and provision of fuel andpower will not exceed RMB 17.5 million (excluding tax).

2. On May 23, 2025, upon deliberation and approval at the 16th meeting of the 11th Board ofDirectors and the 10th meeting of the 11th Board of Supervisors, in accordance with theCompany’s strategic development plan and the operational needs of its subsidiary ZhongshanChanghong, and in order to meet the production capacity demand for overseas air-conditioningsales, the Board of Directors approved that Zhongshan Changhong invest approximately RMB

296.42 million of self-raised funds to construct an air-conditioning project with an annual outputof 4 million units per single shift (hereinafter referred to as the “Air-Conditioning Project”). Tomeet the site requirements for the implementation of the Zhongshan Changhong Air ConditionerProject, following on-site investigation, repeated demonstration and evaluation, and with thesupport of the Company’s controlling shareholder, Zhongshan Changhong intends to enter into anIndustrial Plant Lease Intention Agreement with Guangdong Changhong Electronics Co., Ltd.(hereinafter referred to as “Guangdong Changhong”), a subsidiary of Sichuan Changhong.Guangdong Changhong will construct new plant facilities to be leased by Zhongshan Changhongfor the implementation of the Air-Conditioning Project. The intended lease term is five years(from January 1, 2027 to December 31, 2031). Upon expiration of the lease term, both parties willnegotiate subsequent leasing arrangements. The lease price shall be determined with reference tomarket prices. The preliminary intended monthly rent is set at RMB 20 per square meter(excluding tax, inclusive of rent and security fees, etc.). Based on this, the total rent for 5 years isestimated not to exceed RMB 212.30 million. The actual amount will be determined based onmarket conditions after completion of the plant.

3. On November 5 and November 24, 2025, upon deliberation and approval at the 23rdmeeting of the 11th Board of Directors and the 2nd extraordinary meeting of Board ofShareholders of 2025, it was agreed to increase the estimated related party transaction limits for2025 as follows: transactions for the Company and its subsidiaries to purchase goods fromSichuan Aichuang Technology Co., Ltd. shall not exceed RMB 140 million (excluding tax);transactions to purchase goods from Sichuan Changhong Jijia Fine Co., Ltd. shall not exceedRMB 50 million (excluding tax); transactions to sell goods to CHANGHONG (HK) TRADINGLIMITED shall not exceed RMB 195 million (excluding tax); and transactions involving leasingand lease-in with Sichuan Changhong Electric Co., Ltd. and its subsidiaries shall not exceed RMB12 million (excluding tax). After this increase, it is estimated that in 2025 the total amount ofroutine related-party transactions between the Company and its subsidiaries and ChanghongGroup and its subsidiaries (excluding Sichuan Changhong Electric Co., Ltd.) will not exceedRMB 4,200 million, and the total amount of routine related party transactions with SichuanChanghong and its subsidiaries (excluding Changhong Huayi Compressor Co., Ltd.) will not

exceed RMB 21,575.50 million.

4. On November 28 and December 16, 2025, upon deliberation and approval at the 24thmeeting of the 11th Board of Directors and the 3rd extraordinary meeting of Board ofShareholders of 2025, it was agreed that the total amount of routine related party transactionsbetween the Company and its subsidiaries and related parties in 2026 shall not exceed RMB27,514 million (excluding tax); it was also agreed that the Company will continue to carry outrelated party financial service transactions such as deposits and loans with Sichuan ChanghongGroup Finance Co., Ltd. in 2026.

5. On December 19, 2025, upon deliberation and approval at the 25th meeting of the 11thBoard of Directors, it was agreed to extend the operating term of Sichuan Hongyun NewGeneration Information Technology Venture Capital Fund Partnership Enterprise (LimitedPartnership) (hereinafter referred to as the “Hongyun Fund”) by one year, bringing the cumulativeoperating term to 11 years (i.e., extended to October 18, 2026), and to execute the Amendment tothe Partnership Agreement of Sichuan Hongyun New Generation Information Technology VentureCapital Fund Partnership Enterprise (Limited Partnership) to revise the operating term of theHongyun Fund.

Relevant inquiry on websites for disclosure of interim reports on significant related partytransactions

Extraordinary Meeting of Board ofShareholders of 2025 (2025-082)

XV. Significant Contracts and Their Performance(I) Custody, contracting, and leasing

1. Custody

□ Applicable √ Not applicable

The Company had no custody arrangements during the reporting period.

2. Contracting

□ Applicable √ Not applicable

The Company had no contracting arrangements during the reporting period.

3. Leasing

√ Applicable □ Not applicable

Description of leasing arrangementsFor the Company’s operating lease arrangements, please refer to the relevant contents under“Investment Property”, “Fixed Assets”, “Right-of-Use Assets”, “Leases to Related Parties”, and“Leases from Related Parties” in the notes to the financial statements.Projects generating profit or loss accounting for more than 10% of the Company’s total profitduring the reporting period

□ Applicable √ Not applicable

The Company had no leasing projects generating profit or loss accounting for more than 10%of its total profit during the reporting period.

(II) Significant guarantees

√ Applicable □ Not applicable

Unit: RMB 10,000

Announcements No. 2024-067,2024-068, 2024-071, and 2024-076 dated December 12 andDecember 28, 2024.

Announcements No. 2024-067,2024-068, 2024-071, and 2024-076 dated December 12 andDecember 28, 2024.

Total approved guarantee limit for subsidiaries atthe end of the reporting period (B3)

Announcements No. 2025-083,2025-087, and 2025-095 datedNovember 29 and December 17,

2025.

Explanation of cases where guarantee liabilities occurred during the reporting period forguarantees not yet due, or where there is evidence indicating the possibility of joint andseveral repayment obligations (if any)

Note: For the purpose of currency consolidation, the exchange rate used herein is USD to RMB at 7.0288 as of December 31, 2025.The above guaranteed parties are wholly-owned and controlled subsidiaries of the Company. These subsidiaries are operating normally,with no overdue loan repayments, and the guarantee risks are controllable. During the reporting period, the Company and its subsidiaries did notprovide any external guarantees; however, there were guarantees provided by the Company to its subsidiaries and by subsidiaries to theirrespective subsidiaries.As of the end of the reporting period, the total approved guarantee limit for guarantees provided by the Company to its subsidiaries and bysubsidiaries to their subsidiaries amounted to RMB 1,830.00 million; the total actual amount incurred was RMB 1,954.7514 million; and thetotal actual guarantee balance was RMB 915.7514 million, representing 15.05% of the Company’s net assets at the end of the latest reportingperiod.Explanation of guarantees provided in composite forms: N/A

(III) Entrusted cash asset management

(1) Entrusted wealth management

√ Applicable □ Not applicable

Overview of entrusted wealth management during the reporting period

Unit: RMB 10,000

Specific circumstances where the Company, as a single principal, entrusts financialinstitutions to conduct asset management, or invests in high-risk entrusted wealth managementproducts with lower safety and liquidity

√ Applicable □ Not applicable

Unit: RMB 10,000

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Bank ofCommunicationsCo., Ltd.Zhongshan Branch

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