Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Annual Report

Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Annual Report1Zhejiang Sanhua Intelligent Controls Co., Ltd.2024 Annual ReportMarch 2025Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Annual Report22024 Annual ReportSection I Important Notes, Contents and DefinitionsThe Board of Directors, Board of Supervisors, Directors, Supervisors and Senior Managementof Zhejiang Sanhua Intelligent Controls Co., Ltd. (hereinafter referred to as the “Company”) herebyguarantee that the information presented in this report shall be authentic, accurate, complete andfree from material misstatement whether due to false record, misleading statement or significantomission, and they will undertake both individual and joint legal liabilities.Zhang Yabo, the Company's legal representative, Yu Yingkui, the person in charge of theaccounting work, and Li Zhimi, the person in charge of accounting department (Accounting Officer)hereby declare and warrant that the financial statements in this report are authentic, accurate andcomplete.All directors attended the board meeting to review this report.The forward-looking descriptions of future plans, development strategies, and other aspectsinvolved in this report do not constitute a substantial commitment of the Company to investors.Investors are kindly advised to pay attention to investment risks.The Company describes in detail concerning the possible risks and countermeasures in SectionXI “Outlook for the Future Development of the Company” under Section III “Management’sDiscussion and Analysis of Operations”. Please pay attention to relevant contents.The profit distribution proposal approved by the board of directors is set out as follows: Basedon the provisional share capital of 3,730,997,314 shares, cash dividend of RMB 2.50 (tax inclusive)will be distributed to all shareholders for every 10 shares. The Company will not distribute bonusshares or convert capital reserves to share capital.Note: The Company has the total share capital of 3,732,389,535 shares, including 1,392,221 repurchased shares held in thebuyback account. Pursuant to the Company Law, shares repurchased and held by listed companies through dedicated repurchaseaccounts shall not be entitled to dividend eligibility or capital reserve capitalization.In the event of changes in the Company's total share capital due to share repurchases, exercisesof equity incentive schemes, H-share offerings and listings, or other similar circumstances prior toZhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Annual Report3the implementation of the distribution plan, the total distribution amount shall be proportionallyadjusted in accordance with the principle of maintaining constant distribution ratios.Zhejiang Sanhua Intelligent Controls Co., Ltd. 2024 Annual Report4CONTENTSSection I Important Notes, Contents and Definitions..................................................................................................2Section II Corporate Profile and Key Financial Ind