三花智控：Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Annual Report

2024AnnualReport March2025 2024AnnualReport SectionIImportantNotes,ContentsandDefinitions TheBoardofDirectors,BoardofSupervisors,Directors,SupervisorsandSeniorManagementofZhejiangSanhuaIntelligentControlsCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethattheinformationpresentedinthisreportshallbeauthentic,accurate,completeandfreefrommaterialmisstatementwhetherduetofalserecord,misleadingstatementorsignificantomission,andtheywillundertakebothindividualandjointlegalliabilities. ZhangYabo,theCompany'slegalrepresentative,YuYingkui,thepersoninchargeoftheaccountingwork,andLiZhimi,thepersoninchargeofaccountingdepartment(AccountingOfficer)herebydeclareandwarrantthatthefinancialstatementsinthisreportareauthentic,accurateandcomplete. Alldirectorsattendedtheboardmeetingtoreviewthisreport. Theforward-lookingdescriptionsoffutureplans,developmentstrategies,andotheraspectsinvolvedinthisreportdonotconstituteasubstantialcommitmentoftheCompanytoinvestors.Investorsarekindlyadvisedtopayattentiontoinvestmentrisks. TheCompanydescribesindetailconcerningthepossiblerisksandcountermeasuresinSectionXI“OutlookfortheFutureDevelopment oftheCompany”underSectionIII“Management’sDiscussionandAnalysisofOperations”.Pleasepayattentiontorelevantcontents. Theprofitdistributionproposalapprovedbytheboardofdirectorsissetoutasfollows:Basedontheprovisionalsharecapitalof3,730,997,314shares,cashdividendofRMB2.50(taxinclusive)willbedistributedtoallshareholdersforevery10shares.TheCompanywillnotdistributebonussharesorconvertcapitalreservestosharecapital. Note:TheCompanyhasthetotalsharecapitalof3,732,389,535shares,including1,392,221repurchasedsharesheldinthebuybackaccount.PursuanttotheCompanyLaw,sharesrepurchasedandheldbylistedcompaniesthroughdedicatedrepurchaseaccountsshallnotbeentitledtodividendeligibilityorcapitalreservecapitalization. IntheeventofchangesintheCompany'stotalsharecapitalduetosharerepurchases,exercisesofequityincentiveschemes,H-shareofferingsandlistings,orothersimilarcircumstancespriorto theimplementationofthedistributionplan,thetotaldistributionamountshallbeproportionallyadjustedinaccordancewiththeprincipleofmaintainingconstantdistributionratios. CONTENTS SectionIImportantNotes,ContentsandDefinitions..................................................................................................2SectionIICorporateProfileandKeyFinancialIndicators.........................................................................................7SectionIIIManagement’sDiscussionandAnalysisofOperations..........................................................................13SectionIVCorporateGovernance.............................................................................................................................46SectionVEnvironmentalandSocialResponsibility.................................................................................................80SectionVISignificantEvents....................................................................................................................................86SectionVIIChangesinSharesandInformationaboutShareholders.....................................................................107SectionVIIIInformationofPreferredShares..........................................................................................................122SectionIXBonds.....................................................................................................................................................122SectionXFinancialReport......................................................................................................................................123 DocumentsAvailableforInspection 1.The2024annualreportsignedbythechairmanoftheboard.2.ThefinancialreportsignedandsealedbytheCompany'slegalrepresentative,chieffinanceofficerandpersoninchargeofaccountingdepartment.3.Originalauditreportwiththesealoftheaccountingfirm,signatureandsealoftheregisteredaccountant4.ArticlesofAssociation5.Original copy of all the Company's documents and announcements published on the newspapersdesignatedbyCSRCwithinthereportingperiod.6.Otherdocumentsavailableforinspection. Definitions SectionIICorporateProfileandKeyFinancialIndicators I.CorporateInformation II.ContactsandContactInformation III.InformationDisclosureandPlaceoftheReport IV.CompanyRegistrationandAlteration V.OtherRelevantInformation SponsorinstitutionengagedbytheCompanytoperformthedutiesofcontinuoussupervisionduringthereportingperiod□Applicable√NotapplicableFinancialadvisorengagedbytheCompanytoperformthedutiesofcontinuoussupervisionduringthereportingperiod□Applicable√Notapplicable VI.KeyAccountingDataandFinancialIndicators WhethertheCompanyperformedaretrospectiveadjustmentorrestatementofpreviousaccountingdata□Yes√No TheCompany'snetprofitbeforeandafterdeductingnon-recurringprofitandlossinthelastthreefiscalyears,whicheverislower,isnegativeandtheauditreportofthelastyearshowsthattheCompany'sabilitytocontinueasagoingconcer