WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. ANNUAL REPORT 2023 1 WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. ANNUAL REPORT 2023 April 2024 WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. ANNUAL REPORT 2023 2 Section I. Important Notice, Contents and Interpretation Board of Directors, Board of Supervisory, all directors, supervisors and senior executives of Weifu High-Technology Group 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 all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents. Wang Xiaodong, Principal of the Company, and Rong Bin, person in charger of accounting works, and Wu Junfei, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of 2023 Annual Report is authentic, accurate and complete. All directors have attended the BoD Meeting for the Report deliberation. Non standard audit opinion reminder Applicable □Not applicable Gongzheng Tianye Certified Public Accountants (SGP) issued the audit report for the Company with an unqualified opinion with highlighted paragraphs, the Board of Directors and the Board of Supervisors of the Company have explained the relevant matters in detail, please read carefully. The forward-looking statements with future plans involved in the Report do not constitute a substantial commitment for investors. Investors and related parties should maintain sufficient risk awareness and investors are advised to exercise caution of investment risks. Main risks that the Company may face in future operation are described in the “Prospect of future development of the Company” under the “Discussion and Analysis of the Management” in the Report and investors are advised to check them out. The profit distribution plan that was deliberated and approved by the Board Meeting is: Based on total share capital of 977,162,793, distributed 10.00 yuan (tax included) bonus in cash for every 10-share held by all shareholders, 0 share bonus issued (tax included) and no transfer of capital reserve into share capital. When the profit distribution plan is implemented, if there is a change in the total amount of shares entitled to profit distribution, the total amount of shares entitled to profit distribution on the equity registration date at the time of implementation of the distribution plan WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. ANNUAL REPORT 2023 3 shall be adjusted based on the principle of unchanged distribution proportion. The Report is prepared in Chinese and English respectively. In the event of any discrepancy between the two versions, the Chinese version shall prevail. WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. ANNUAL REPORT 2023 4 Content Section I. Important Notice, Contents and Interpretation ................................................................................... 2 Section II Company Profile and Main Financial Indexes .................................................................................... 7 Section III Discussion and Analysis of the Management ..................................................................................... 11 Section IV. Corporate Governance ....................................................................................................................... 37 Section V. Environmental and Social Responsibility .......................................................................................... 56 Section VI. Important Matters ............................................................................................................................. 63 Section VII. Changes in Shares and Particulars about Shareholders ............................................................... 78 Section VIII. Preferred Stock ............................................................................................................................... 86 Section IX. Corporate Bonds ................................................................................................................................ 87 Section X. Financial Report .................................................................................................................................. 88 WEIFU HIGH-TECHNOLOGY GROUP CO., LTD. ANNUAL REPORT 2023 5 Documents Available for Reference I. Financial statement carrying the signatures and seals of person in charge of the company, principal of the accounting works and person in charge of accounting organ (accounting supervisor); II. Original audit report with the seal of accounting firm and signature and seal of the CPA; III. Original documents of the Company and manuscripts of public notices that were disclosed i