Earnings release
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(a joint stock limited company incorporated in the People’s Republic of China with limited liability) (於中華人民共和國註冊成立的股份有限公司 ) Stock Code 股份代碼: 02722 僅供識別 2025 INTERIM REPORT 中期報告 CHONGQING MACHINERY & ELECTRIC CO., LTD. 重慶機電股份有限公司INTERIM REPORT 中期報告 2025
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ࣘ2Corporate Information ࠅ7Results Highlights జѓ 8Chairman’s Statement ؓ19Management’s Discussion and Analysis ࣘ44Other Information ᄲቡజѓ 53Review Report on Interim Financial Information ڌ 55Interim Condensed Consolidated Statement of Financial Position ڌ57Financial Position Statement of the Company ڌ 59Interim Condensed Consolidated Comprehensive Income Statement ڌ61Income Statement of the Company ڌ 62Interim Condensed Consolidated Statement of Cash Flows ڌ64Cash Flows Statement of the Company ڌ 66Interim Condensed Consolidated Statement of Changes in Equity ڌ68Statement of Changes in Equity of the Company ൗ 70Notes to the Financial Statements ࣘ 348Supplementary Information to Consolidated Financial Statements ͦ CONTENTS
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2 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ࣘ CORPORATE INFORMATION ԫ ੂБԫ ͛ ͛ 2025ϋ6˜12˚ᐏ։ ੂБԫ ཤ 2025ϋ6˜12˚ᐏ։ ϡ ɾɻ ᘨ ͛ ᇹқᏵ͛ ੂБԫ ݚ ͛ 2025ϋ6˜12˚ᐏ։ 2025ϋ6˜12˚ᐏ։ 2025ϋ6˜12˚ᐏ։ ္ԫ ˮऎж͛ ጳᛆ͛ ݬ ͛ ᄎ༸ശ͛ ึ ࡰ 2025ϋ6˜12 ݚ ͛ ႈശዲɾɻ ᘨ ͛ DIRECTORS Executive Directors Mr. Yue Xiangjun Mr. Qin Shaobo Mr. Deng Rui (appointed on 12 June 2025) Non-executive Directors Mr. Lei Bin (appointed on 12 June 2025) Ms. Zhu Ying Mr. Dou Bo Mr. Cai Zhibin Independent Non-executive Directors Mr. Ke Rui Mr. Liu Lijun (appointed on 12 June 2025) Ms. Pu Huayan (appointed on 12 June 2025) Mr. Wong Chun Wa (appointed on 12 June 2025) SUPERVISORS Mr. Sun Wenguang (Chairman) Mr. Wang Haibing Mr. Cao Xingquan Mr. Duan Lian Mr. Liu Daohua COMMITTEES UNDER BOARD OF DIRECTORS Members of the Audit and Risk Management Committee (re-elected on 12 June 2025) Mr. Wong Chun Wa (Chairman) Mr. Ke Rui Ms. Pu Huayan Mr. Dou Bo
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2025 中報 重慶機電股份有限公司 ࣘ CORPORATE INFORMATION 3 ࡰ 2025ϋ6˜12 ݚ ͛ ശ͛ ཤ ⅳ͛ ࡰ 2025ϋ6˜12 ݚ ͛ ͛ ႈശዲɾɻ ࡰ 2025ϋ6˜12 ͛ ͛ ϡ ɾɻ ᇹқᏵ͛ ݚ ͛ ͛ ႈശዲɾɻ ɛ ͛ ࣣ ࢪࠇ Members of the Remuneration Committee (re-elected on 12 June 2025) Mr. Ke Rui (Chairman) Mr. Liu Lijun Mr. Wong Chun Wa Mr. Lei Bin Members of the Nomination Committee (re-elected on 12 June 2025) Mr. Yue Xiangjun (Chairman) Mr. Ke Rui Mr. Liu Lijun Ms. Pu Huayan Members of the Strategy Committee (re-elected on 12 June 2025) Mr. Yue Xiangjun (Chairman) Mr. Qin Shaobo Mr. Deng Rui Ms. Zhu Ying Mr. Cai Zhibin Mr. Ke Rui Mr. Liu Lijun Ms. Pu Huayan LEGAL REPRESENTATIVE Mr. Zhang Fulun COMPANY SECRETARY Ms. Chiu Hoi Shan (Practicing Solicitor) QUALIFIED ACCOUNTANT Mr. Kam Chun Ying, Francis (Certified Public Accountant)
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4 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ࣘ CORPORATE INFORMATION AUTHORIZED REPRESENTATIVES AND CONTACT INFORMATION Mr. Yue Xiangjun No. 60 Middle Section of Huangshan Avenue, New Northern Zone Chongqing City, the PRC Postal code: 401123 Tel.: (86) 023-63075752 Ms. Chiu Hoi Shan Room 1204-06, 12th Floor, The Chinese Bank Building, 61 Des Voeux Road Central, Central, Hong Kong Tel.: 852-2155 4820 ALTERNATE AUTHORIZED REPRESENTATIVE AND CONTACT INFORMATION Mr. Wong Chun Wa Room H, 20th Floor, Block 2, Laguna Verde, Hung Hom, Kowloon, Hong Kong Tel.: 852-60521176 REGISTERED OFFICE No. 60 Middle Section of Huangshan Avenue, New Northern Zone Chongqing City, the PRC ࣘ ͛ ᅅ̹ ݬ60 ඉᇜj401123 ཥ༑j(86) 023-63075752 ɾɻ ಥʕᐑ ᅃႾ༸ʕ61 ശɛვБɽข 12ᅽ1204-06܃ ཥ༑j852-2155 4820 ࣘ ശ͛ ⯰ ऎඅႴ2ࢭ 20ᅽH܃ ཥ༑j852-60521176 ൗ̅፬ԫஈ ᅅ̹ ̏อਜ ݬ60
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2025 中報 重慶機電股份有限公司 ࣘ CORPORATE INFORMATION 5 HONG KONG SHARE REGISTRAR Computershare Hong Kong Investor Services Limited Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong AUDITORS ShineWing Certified Public Accountants (Special General Partnership) 9th Floor, Block A, Fuhua Mansion, No. 8 Chaoyangmen Beidajie, Dongcheng District, Beijing LEGAL ADVISOR Chiu & Co.Б(As to Hong Kong Laws) Chongqing Jingsheng Law Firm (As to Chinese Law) PRINCIPAL PLACE OF BUSINESS IN HONG KONG Room 1204-06, The Chinese Bank Building, 61 Des Voeux Road Central, Central, Hong Kong WEBSITE OF THE COMPANY www.chinacqme.com ಥᗇՎ೮াஈ ʮ̡ ಥᝄ˺ ؇183 Υձʕː17ᅽ 1712-1716 ࢪ ౷ஷΥྫ ژ ̏ɽ8 బശɽขAࢭ9ᄴ ᚥਪ ᐄุήѧ ಥʕᐑ ᅃႾ༸ʕ61 ശɛვБɽข 1204-06܃ ʮ̡ၣѧ www.chinacqme.com
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6 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ࣘ CORPORATE INFORMATION PRINCIPAL BANKER China Merchants Bank Chongqing Shangqingsi Sub-branch 1st Floor, Zhong-an International Building, No.162 Zhongshan Third Road, Yuzhong District, Chongqing City, the PRC SHARE INFORMATION Listing Place The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) Stock Code 02722 FINANCIAL YEAR END 31 December ԸვБ ਠვБ ᅅɪυ˕Б ᅅ̹ಽʕਜ ʕʆɧ༩162 ʕτყɽข1ᅽ ࣘ ɪ̹ήᓃ ΅ᇜ 02722 ৌਕϋഐ˚ಂ ɤɚ˜ɧɤɓ˚
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2025 中報 重慶機電股份有限公司 7 ࠅ RESULTS HIGHLIGHTS ᅅዚཥ б˸ɨၝ f • ˜ಂගd ɛ͏࿆ 4,658.1ϵ ຬ ʩdˢ ߒ9.2%f • ˜ಂගd ɛ͏࿆ 799.8ϵຬʩdˢ̘ϋ ߒ10.4%f • ˜ಂගd ɛ͏࿆416.0ϵຬʩd ߒ53.8%f • ˜ಂගd ɛ͏࿆ 0.11ʩ d ˢ̘ϋΝ ߒ57.1%f • ˜ಂගd ɛ͏࿆ 2.41ʩ d ˢ̘ϋΝಂɪ ʺ5.2%f л ೯࿚Їɚཧɚʞϋʬ˜ɧɤ˚˟ʬ ɛ͏࿆ 0.01ʩ ў ࿚Їɚ ˜jೌ d˸࿚Їɚཧ ͉ 3,684,640,154 ɛ͏࿆ 36,846,401.54ɚཧ ɛ͏࿆ 0ʩ f ؇ٰࣛ ʕ ʚɚཧ f Chongqing Machinery & Electric Co., Ltd. (the “Company” or “CQME”) and its subsidiaries (collectively the “Group”) announce the highlights of the consolidated results as set out below. • Revenue of the Group for the six months ended 30 June 2025 amounted to approximately RMB 4,658.1 million, representing an increase of approximately 9.2% from the corresponding period of last year. • Gross profit of the Group for the six months ended 30 June 2025 amounted to approximately RMB799.8 million, representing an increase of approximately 10.4% from the corresponding period of last year. • Profit attributable to the shareholders of the Company for the six months ended 30 June 2025 amounted to approximately RMB416.0 million, representing an increase of approximately 53.8% from the corresponding period of last year. • Basic earnings per share for the six months ended 30 June 2025 amounted to approximately RMB0.11, representing an increase of approximately 57.1% from the corresponding period of last year. • Net assets per share for the six months ended 30 June 2025 amounted to approximately RMB2.41, representing an increase of 5.2% from the corresponding period of last year. INTERIM DIVIDEND The Board has recommended the payment of a interim dividend of RMB0.01 per share (tax inclusive) for the six months ended 30 June 2025 (for six months ended 30 June 2024: nil), which is calculated based on the total share capital of 3,684,640,154 shares for the six months ended 30 June 2025 totalling RMB36,846,401.54 (totalling RMB0 for six months ended 30 June 2024). Subject to the approval by shareholders of the Company (“Shareholders”) at the forthcoming extraordinary general meeting to be convened on 28 October 2025, the proposed interim dividend will be paid on 25 November 2025 to Shareholders whose names appear on the register of members of the Company on 11 November 2025.
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జѓ CHAIRMAN’S STATEMENT 8 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD j б͉ණྠ࿚Їɚ ٙ dШʊᄲ ͑ʕձึ ౷ஷΥྫ ᄲቡf ࠢ ණ ҦϞ ʮ̡100%͉ಂගʿɚཧɚ̬ϋϞ ͡ሜf ഄʿึ ɽᜊһf ɓe ɪ̒ϋყʫҖැΫᚥ ࿒ැ d ࿆ၾ яତထദձ ஷദ৷ ᒯᅊओତi ձ৷ஷദѢྤd˚ʩ൰ f ʱ ʩ һ ݁ Dear shareholders, The board of directors (the “Board”) of the Company is pleased to announce the interim results of the Group for the six-months period ended 30 June 2025 (the “Period”). The Group’s interim results have not been audited but have been reviewed by the audit and risk management committee and the Company’s auditor, ShineWing Certified Public Accountants (Special General Partnership). During the Period, the Company’s subsidiary Chongqing Machine Tool (Group) Co., Ltd. (the “Machine Tool Group”) acquired 100% of the equity interests in Chongqing Panlian Transmission Technology Co., Ltd. held by Chongqing Electromechanical Holding Group Asset Management Co., Ltd. Therefore, during the Period and in 2024, adjustments must be made to the relevant accounting items and consolidated reporting items. Except for the above changes, there have been no significant changes to the Group’s important accounting policies and accounting estimates during the Period. I. INTERNATIONAL AND DOMESTIC REVIEW FOR THE FIRST HALF OF THE YEAR In the first half of the year, the global economy continued its trend of low growth, with increasing divergence in monetary and trade policies. The U.S. economy exhibited characteristics of stagflation and monetary tightening, with a weakening trend in consumer momentum; the European economy showed moderate recovery, but significant internal divergence, with high inflation and sluggish recovery in the UK, and emerging concerns regarding debt sustainability in Southern Europe; Japan’s economy faced the dual challenges of weak growth and high inflation, with yen depreciation exacerbating import-driven inflationary pressures and hindering export competitiveness. The performance of other emerging economies has been varied, with some Asian economies benefiting from robust growth due to regional integration, while Latin America has been significantly impacted by fluctuations in the U.S. dollar. Since the beginning of this year, the Chinese government has implemented more proactive fiscal policies and moderately accommodative monetary policies, intensifying counter-cyclical adjustments, accelerating the promotion of
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2025 中報 重慶機電股份有限公司 9 జѓ CHAIRMAN’S STATEMENT “New Infrastructure and New Urbanization Initiatives” initiatives (a new round of large-scale equipment updates and trade- in of consumer goods) and “Major Implementation and Key Construction” constructions (implementation of major national strategies and enhancement of security capabilities in key areas), further boosting consumption, promoting technological innovation, and cultivating new productive forces, although the real estate sector remains in a period of adjustment; overall, the economic operation shows a trend of steady progress and positive development towards new goals, but growth momentum still needs to be continuously strengthened. In the first half of the year, China’s GDP grew by 5.3% year-on-year. II. OPERATIONAL REVIEW OF THE GROUP IN THE FIRST HALF OF THE YEAR In the first half of the year, the Group overcame numerous adverse factors such as intensified industry competition, actively integrating into the new development pattern, focusing on major national strategies such as green and low- carbon transformation and innovation-driven development and Chongqing’s modern manufacturing cluster system of “33618”. By breaking down traditional industry boundaries and integrating innovative development platforms, the Group accelerated the adjustment, transformation, upgrading and digital empowerment of traditional industries, carried out research on major technological equipment and industrialization applications of innovation achievements to enhance product added value and market competitiveness, continuously moving towards the high end of the value chain. Simultaneously, the Group continued to optimize in various aspects such as market expansion, brand building, R&D innovation, risk management, talent attraction and sustainable development strategy, improve quality and create efficiency and promote high-quality development. The scientific and technological applications and core competitiveness of the Group have been improved, laying the foundation for the comprehensive completion of the annual goals set by the Board. ഄd̋ɽմಂሜືd̋Ҟપආ Շอ อɓ ˸ᔚ౬อ ʈЪձ ᓃჯਹτΌঐ Ҧ௴อd ሜಂi ٙ ᚃ੶ʷ f ɪ̒ ϋdʕGDPڗ5.3%f ɚe ɪ̒ϋ͉ණྠ༶ᐄΫᚥ ̋ᄌഃመεʔ ҅ d ఖᔎၠ ଫ ᅅ̹ 33618 ତ˾Ⴁிุණ໊ӻ d ̨̻ d ̋ ʺॴձᅰο ҦҸᗫձ௴อ ձ̹ఙᘩ d ͉ණ ᎈ ࠦ Ҧ ҁϓԫึɨ༺ əਿᓾf
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10 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD జѓ CHAIRMAN’S STATEMENT I I I . OUTLOOK FOR INTERNATIONAL AND DOMESTIC SITUATION IN THE SECOND HALF OF THE YEAR In the second half of the year, global trade protectionism and geopolitical risks are expected to intensify, with adjustments and bargaining related to tariffs presenting further challenges to the global economy, thereby increasing the risks of economic downturn. The United States may continue its high tariff policies and escalate technology restrictions, while the European Union may follow suit with trade barrier measures, leading to further fragmentation of global supply chains. The ongoing strengthening of unilateralism could result in a restructuring of international trade rules. The uncertainty stemming from Trump’s policies has rendered the Federal Reserve’s interest rate policy unpredictable, disrupting the formulation and implementation of economic policies in other global economies and consequently exerting continuous pressure on global financial markets. Currently, external instability and numerous uncertainties prevail, while domestic effective demand remains insufficient, necessitating reinforcement and consolidation of the foundation for domestic economic recovery. In the second half of the year, the Chinese government will adhere to the overall principle of seeking progress while maintaining stability, fully and accurately implement the new development philosophy, accelerate the construction of a new development paradigm, coordinate domestic economic work with international trade struggles, further strengthen the domestic economic cycle, and respond to external uncertainties with the certainty of high-quality development, thereby promoting sustained, stable, and healthy economic growth. It is anticipated that China’s economy will maintain a stable and improving trend in the second half of the year. ɧe ૐ ᎈ ਗ਼࿁Ό ᎈ Ҧ d ԴΌଢԶ ਗ਼ ٙ ʔ̙ཫԈ ձྼ ᚃ Ϊ९༰ε d ცӋʔԑdʫΫʺΣλਿᓾ ᖢ ࿏อ೯ ҅ d ୕ᘪʫ dආɓӉਂ੶ʫɽ Ꮠ࿁̮ʔᆽ ʕ ᖢʕΣλf
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2025 中報 重慶機電股份有限公司 11 జѓ CHAIRMAN’S STATEMENT IV. DEVELOPMENT STRATEGIES AND WORK PRIORITIES OF THE GROUP FOR THE SECOND HALF OF THE YEAR Development strategies of the Group for the second half of the year are as follows: In the second half of the year, the Group will continue to focus on the important development opportunities of building a modern manufacturing cluster system in Chongqing. In line with the strategic planning and reform and development needs for the 2025-2027 period, the Group will strive to promote the transformation and upgrading of existing industries and the cultivation of new industries, with the aim of improving operational efficiency and effectiveness. Centering on the various goals and tasks assigned by the Board of the Company at the beginning of the year, the Group achieving results in aspects such as industrial development, innovation drive, capital operation, risk control and corporate governance, so as to advance the high-quality development of the Group and comprehensively and properly complete the work priorities in the second half of the year: ̬e ᓃʈЪ ഄଫj ତ˾Ⴁ ዚ༾ d ఖᔎ 2025Ñ 2027dഹɢપਗ ʺॴձᄣඎପุԃdрɢҷ ɨ༺ e ௴อᚨਗ e ༟͉ ഃҴ̈ϓ ਂλɨ̒ ᓃʈЪj
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12 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD జѓ CHAIRMAN’S STATEMENT Work priorities for the second half of the year: ( 1 ) Strengthening Market Expansion to Enhance Competitiveness First, the Group will leverage the role of a megamarketing platform to enhance the sharing of platforms, customers, resources, and information, developing a “technical marketing + service value-added” model. The Group will strengthen cooperation with central and local state- owned enterprises, high-quality private enterprises, and key overseas clients, deepening strategic customer partnerships. Second, the Group will capitalize on the advantages of our foreign trade network and collaborative efforts, relying on important customer resources from “One Belt One Road” countries to promote overseas deployment and distributor cultivation, expanding our international business. Third, the Group will drive business process reengineering, enhancing integration across research, production, and sales. The Group will improve demand- oriented R&D mechanisms and joint review systems for new product development, facilitating the deep involvement of technical departments in front-end product planning to respond rapidly to customer demands. The Group will actively shift market competition strategies from product competition to solution competition, further enhancing product competitiveness and profitability, accelerating the layout of intelligent and green new products, and forming differentiated competitive advantages. ᓃʈЪj ɓ ɢ ೯౨ɽᐄቖ̨̻Ъ͜d੶ʷ̨̻e Ҧஔᐄቖ + ᅼόd̋੶ၾ̯ήΆeᎴ dଉʷ ೯౨̮൱ၣഖᎴැ ˒༟๕dપਗऎ̮̺ᓃʿቖਠ ݴ dҁഛ ක೯ᑌΥ ਞၾቖਯ ˒ცӋfጐ Σ༆ ن лঐɢd̋Ҟ౽ঐʷeၠЍʷอ Ꮄැf
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2025 中報 重慶機電股份有限公司 13 జѓ CHAIRMAN’S STATEMENT (2) Promoting Resource Integration to Enhance Collaborative Value First, the Group will plan the “15th Five-Year” strategic framework, focusing on the development of high- end complete equipment such as clean energy and industrial mother machines, cultivating industries related to renewable energy sources like wind, solar, and hydrogen storage, accelerating the construction of high-end equipment system integration capabilities, and establishing ourselves as a comprehensive service provider for green energy. Second, the Group will strengthen industrial collaboration by integrating resources within the group, promoting subsidiaries to enhance communication and cooperation in areas such as industry chains, supply chains, marketing channels, and technological research and development, and establishing a sound capacity-sharing platform and collaborative value-sharing mechanism. Third, the Group will leverage the advantages of a centralized procurement platform to drive the collective procurement of bulk raw materials and outsourced machining, establishing a shortlist of core suppliers and an internal allocation system for idle materials, thereby improving supply chain resilience and bargaining power while shortening procurement delivery cycles. Fourth, the Group will enhance investment development by forming a cross-professional and cross- departmental investment team focused on industries, technology, finance, and risk control, establishing a research framework for new productive forces and future industries, and conducting specialized studies in key areas. ɚ ࠽ ࢝ ༀ௪d Έ૫ᎷഃΎ͛อঐ๕ପุd̋Ҟ ண৷၌ༀ௪ӻ୕ණϓঐɢd͂ிၠЍ ੶ʷପุΝd ᙮ʮ̡ίପุ ೯ഃ˙ ͭΌପঐԮ̻ ೯౨ණમ eዚ̋ʈ։ ːԶᏐਠΤఊձඛໄ ձ ੶ ˸ପุeҦஔeৌਕe ܔ ࣪ Ӻf
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14 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD జѓ CHAIRMAN’S STATEMENT (3) Focusing on Innovation-Driven Growth to Promote Research Collaboration and Transformation First, the Group will focus on upgrading our core business, particularly in areas such as production line automation transformation, digital workshop construction, and the establishment of benchmark intelligent factories, as well as in process technology improvements related to key process innovations, green process transformations, and quality enhancement. Second, the Group will use the opportunity of a new round of large-scale equipment updates to develop new products that meet market demands, continuously advancing the development of platform-level new products and enhancing market share through standardization, modularization, and serialization. Third, the Group will strengthen industry, academic and research collaborations, continuously enriching our pool of experts, enhancing the scientific and forward-looking nature of technical strategies and major project feasibility studies, and continuously strengthening exchanges and cooperation with universities and research institutions to promote the co-construction of innovation platforms and establish “industry, academia, research and application” innovation alliances, facilitating applied technology development and the transformation of scientific achievements. ɧ ᔷʷ ΣପᇞІਗ ணe͂ிᅺӅ౽ ঐʈᅀഃ౽ঐႡிʺॴᗳd˸ʿᗫᒟʈ อeၠЍʈᖵҷிeሯඎʺਖ਼ධ ݊ ዚdഹɢ ᚃપආ Ⴁd˸ᅺʷeᅼ෯ʷe ੶ʷପኪ d৷Ҧஔ ᓼ ΥЪdપ ͜ ௴อ Ҧϓ ᔷʷf
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2025 中報 重慶機電股份有限公司 15 జѓ CHAIRMAN’S STATEMENT (4) Enhancing Efficiency through Lean Management and Infusing Vitality through Digital Empowerment First, the Group will continue to deepen lean management in subsidiaries, continuously improving the management system. The Group will promote team capability building through lean Six Sigma green belt training and focus on the realization of green belt projects to efficiently achieve annual improvement targets. Second, the Group will conduct timely analysis and intervention on lagging items, perform regular financial analysis, and enhance the disaggregation and analysis of financial data at the business level; accurately grasping the rhythm of receipts and payments to improve operational cash flow. Third, the Group will maximize the effectiveness of “Digital Electromechanical”, accelerate the optimization of business-finance integration platforms, marketing collaboration platforms, and computability platforms, further empowering strategic decision-making, resource management, risk analysis, product innovation, manufacturing optimization, and service upgrades. Fourth, the Group will optimize and improve the talent sharing platform, strengthening talent recruitment and cultivation around the “five capabilities” of strategic leadership, capital operations, system integration, market expansion, and operational management, while enhancing the recruitment of high-level professionals in related fields and training existing talent to solidify our human resources foundation. ̬ ɢ ᙮ʮ̡ၚू၍ଣdʔᓙ ီၠ੭ɛ ணi˸ၠ ҷഛ e ʍཫထΧධ d ਂ d̋੶ৌਕᅰኽՑุਕ d ̂ʱ೯౨ ᅰο ঐ d ̋ҞᎴʷุৌፄΥ̨̻ e ᐄቖΝ̨̻eၑɢ̨̻dආɓӉረঐ ۜ Ꮄʷ ҁഛɛʑˏԃԮ̨̻dఖᔎଫ e ᐄ၍ଣ ʞɽঐɢ ੶ʷɛʑˏԃd̋ ᗫჯਹ৷ᄴϣਖ਼ุɛʑˏආձπඎ ɛʑቮdឝྼɛʑਿᓾf
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16 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD జѓ CHAIRMAN’S STATEMENT (5) Strengthening Risk Prevention and Control for Sustainable Development First, the Group will conduct two quarterly risk investigation, optimizing prevention and control measures, focusing on tackling medium and high-risk issues, and promoting the recovery of debts and the resolution of complex cases to safeguard the Group’s operational achievements and legal rights. Second, the Group will carry out self-inspection and self-assessment of the internal control systems of all subsidiaries by 2025, ensuring effective design and execution of these systems, addressing any gaps, and guaranteeing the smooth operation of internal controls. Third, the Group will enhance legal awareness through legal education campaigns for employees; the Group will strengthen compliance reviews to ensure comprehensive legal audits of three key areas to guarantee lawful and compliant operations. Fourth, the Group will conduct legal audits and supervise the rectification of issues, strictly implementing closed-loop management; the Group will carry out strategic audits to comprehensively review the “14th Five-Year” strategic plan, guiding the more scientific, objective, and reasonable formulation of the “15th Five- Year” strategic plan. Fifth, the Group will strictly implement safety production responsibility systems, leveraging HSE management system capabilities to resolutely prevent significant safety and environmental incidents. ʞ ࢝ dᎴʷԣછ ᎈԫධԣᇍʷ ʷ༆d ݊ ᙮ʮ̡ 2025ϋʫછՓ ࣖ ࣖ ج ɧ ج d ੂБௐᐑ၍ଣiක d࿁ ɤ̬ʞ ଫྌආБ ߅ ໝྼτ Ό͛ପபՓd೯౨HSEঐd f
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2025 中報 重慶機電股份有限公司 17 జѓ CHAIRMAN’S STATEMENT (6) Upgrading Governance to Strengthen Norms and Promote Value Creation for Win-Win Outcomes First, the Group will enhance the organic integration of the latest regulatory requirements with daily governance, actively responding to the latest corporate governance code requirements, providing training for directors, supervisors and senior management, and strictly adhering to information disclosure while increasing the frequency of voluntary disclosures. Second, the Group will systematically promote the enhancement of corporate value, strengthening multi-level and multi- channel interaction mechanisms with investors, actively listening to their demands and suggestions, improving the quality and effectiveness of communication with investors, and enhancing their sense of recognition regarding the company’s strategy and long-term value. Third, in line with the latest ESG regulatory requirements, the Group will further improve the ESG strategic framework and management mechanisms, optimizing various ESG objectives and indicators, and solidly promoting the enhancement of ESG governance. ʬ ᙊ ଣϞዚ Ӌd ᚣd Ϟҏપආʮ̡ ʺd੶ʷεᄴϣeεಬ༸ၾҳ༟ ൡӋ d Ⴉ ഐΥESGӋ d ආ ɓӉҁഛ ESGଫӻၾ၍ଣዚՓdᎴ ʷධ ESGᅺ d ˔ྼપආ ESG ଣʺf
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18 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD జѓ CHAIRMAN’S STATEMENT CONCLUSION The Group will remain confident and focus on its three-year strategic plan and reform and development needs, optimize resource allocation, improve lean management, promote industrial transformation and upgrading, cultivate and consolidate core industries, and ensure the implementation of business plans and action plans, striving to achieve the annual objectives and tasks, make greater contributions to achieving the vision of “becoming China’s first-class equipment group”. On behalf of the Board, I would like to extend my heartfelt gratitude to our shareholders for their support and trust. My sincere appreciation also goes to our directors, supervisors and all of our staff for their efforts in contributing to the Group. Yue Xiangjun Executive Director and General Manager (performing duties and powers of the chairman of the Board) Chongqing, the PRC 20 August 2025 ᐼഐ ೯ dᎴʷ༟๕ৣໄd৷ၚू၍ଣ˥̻d̋Ҟ ࠇ ҁϓΌϋͦᅺ ༀ௪ණྠ ᗴ౻Ъ ̈һɽ্ᘠf ˕ ʈ࿁͉ණ ˸ଉʲชᑽl ੂБԫcᐼଣ ࠏ֪ ᔖᛆ ʕ •ᅅ ɚཧɚʞϋɞ˜ɚɤ˚
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2025 中報 重慶機電股份有限公司 19 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS BUSINESS PERFORMANCE The table below sets forth the revenue, gross profit and segment results attributable to major business segments of the Group for the periods indicated: Note 1 – The Group included the industrial pumps, gas compressors and oil and gas businesses in general machinery business according to the principle of combination of similar categories. Note 2 – The Group grouped hydroelectric generation equipment and steering systems businesses into other products. ତ ุਕᐄʱᏐ Цϗɝeˣлʿʱุᐶj ϗɝ ˣл ʱุᐶ Revenue Gross Profit Segment Results ࿚Їʬ˜ɧɤ˚˟ಂග ࿚Їʬ˜ɧɤ˚˟ಂග ࿚Їʬ˜ɧɤ˚˟ಂග Period ended 30 June Period ended 30 June Period ended 30 June ɚཧɚʞϋ ɚཧɚ̬ϋ ɚཧɚʞϋ ɚཧɚ̬ϋ ɚཧɚʞϋ ɚཧɚ̬ϋ 2025 2024 2025 2024 2025 2024 (As restated) (As restated) (As restated) ɛ͏࿆ϵຬʩdϵʱˢৰ̮ (RMB in millions, except for percentage) ᆎঐ๕ༀ௪ุਕ Clean energy equipment business ஷ͜ዚൗ1 General machinery (Note 1) 1,112.5 1,118.6 264.9 318.7 85.8 128.3 ཥ˪ Wind power blades 1,295.9 1,119.1 165.8 118.1 28.0 32.8 ཥᇞཥ Electrical wires and cables 1,149.2 993.6 151.8 118.0 30.9 40.9 ൗ2 Other products (Note 2) 180.6 128.1 31.3 (18.3) 8.1 (157.2) Υ Total 3,738.2 3,359.4 613.8 536.5 152.8 44.8 Цᐼᕘϵʱˢ % of total 80.3% 78.8% 76.7% 74.0% 33.9% 13.5% ৷၌౽ঐༀ௪ุਕ High-end smart equipment business ౽ঐዚґ Smart machine tools 435.3 443.4 102.7 110.1 (22.3) 41.7 ౽ঐႡி Intelligent manufacturing 265.3 284.4 34.9 40.4 (15.6) 3.4 ൗ2 Other products (Note 2) 180.3 143.3 19.8 11.5 0.2 (6.8) Υ Total 880.9 871.1 157.4 162.0 (37.7) 38.3 Цᐼᕘϵʱˢ % of total 18.9% 20.4% 19.7% 22.4% (8.4%) 11.5% ਕุਕ Industrial services business ፄ Financial 28.2 25.6 21.7 22.7 14.9 28.9 Trade – 1.8 – 1.3 – (0.5) ਕ Other services 3.7 7.4 0.3 1.2 (3.0) (3.6) Υ Total 31.9 34.8 22.0 25.2 11.9 24.8 Цᐼᕘϵʱˢ % of total 0.7% 0.8% 2.8% 3.5% 2.6% 7.5% ᐼ Headquarters Υ Total 7.1 0.6 6.6 0.6 324.4 224.1 Цᐼᕘϵʱˢ % of total 0.1% 0.0% 0.8% 0.1% 71.9% 67.5% ࠇTotal 4,658.1 4,265.9 799.8 724.3 451.4 332.0 ൗ1Ñ eंᏀᐵዚձ f ൗ2Ñ ͉ණྠਗ਼˥ɢ೯ཥண௪ձᔷΣӻ୕ุਕίʱՉ˼ f
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20 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS BUSINESS REVIEW AND OUTLOOK CLEAN ENERGY EQUIPMENT (BUSINESSES INCLUDING WIND POWER BLADES, ELECTRICAL WIRES AND CABLES AND MATERIALS, INDUSTRIAL PUMPS, INDUSTRY BLOWERS, GAS COMPRESSORS, HYDROELECTRIC GENERATION EQUIPMENT AND OIL AND GAS SERVICE, ETC.) In the first half of 2025, the Group’s clean energy equipment segment seized market opportunities, further enhancing the stability of the customer structure in the wind power blade business, with market share remaining stable. The industrial pump business continued to deepen its engagement with major clients, securing a second-phase order for diaphragm pumps from a steel-aluminum integration industry in Hebei, exceeding RMB127 million. The market strategy advantages of the electrical wires and cables and materials business became apparent, successfully winning bids in multiple instances within the power sector, with contracts totalling over RMB120 million from six provincial grid companies. The refrigeration compressor business secured significant projects from Jiangsu Lanze Energy Technology Co., Ltd.*ҦϞ ʮ̡ dZhongfei Petrochemical Co., Ltd.*ʮ̡ d Hubei Yihua Chemical Industry Co., Ltd.*ப ʮ ̡ dJilin University of Chemical Technology*ʷʈኪ৫ , achieving orders worth over RMB57 million. The gas compressor business actively participated in the “Chengdu-Chongqing hydrogen corridor” project and successfully partnered with China Petroleum and Chemical Corporationʮ̡ to establish the first 1,000-kilogram hydrogen refueling station. The hydroelectric equipment business focused on industrial services, adding new orders exceeding RMB77 million, setting a historical high. In the first half of the year, this segments, except for the gas compressor business, experienced a year-on-year decline due to order delivery cycles concentrated in the second half of the year, achieved good growth compared to the same period last year. The overall operating income of this segment reached approximately RMB3,738.2 million, representing an increase of approximately 11.3% year-on-year. ૐ e ዚ e ंᏀᐵዚ e ˥ɢ೯ཥ ਕഃุਕ ෯Ҫ ආɓ ᚃଉ ɚಂd ఊ൴ɛ͏࿆ 127ุਕ̹ dϓ̌ʕᅺ 6ఊ൴ɛ͏࿆ 120ϵຬʩ i ႡиᏀᐵ ͩ ʷ ൴ɛ͏࿆ 57ϵຬʩiं Ꮐᐵዚุਕጐਞၾ ϓಽ૫Ԑ఼ ධͦdԨၾ ࡈ1,000 ਕd ఊ൴ɛ͏࿆ 77ϵຬʩd௴ዝ̦อ৷fɪ̒ϋ ණ ̮dՉቱΆ ෯ᐄุϗɝ ɛ͏࿆3,738.2ߒڗ11.3%f
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 21 During the Period, the gross profit of the clean energy equipment operating segment was approximately RMB613.8 million, representing an increase of approximately RMB77.3 million or approximately 14.4% as compared with approximately RMB536.5 million for the same period of last year. As of 30 June 2025, the profit of the clean energy equipment operating segment was approximately RMB152.8 million, representing an increase of approximately RMB108.0 million or approximately 241.1% as compared with approximately RMB44.8 million for the same period of last year, which was mainly due to the significant reduction in losses was the increase in the scale of the hydroelectric equipment business. In the first half of the year, the industrial pump business segment completed the construction of some test platforms for the Fourth Generation Nuclear Power Lead Bismuth Main Pump Project. The gas compressor business developed a high-flow low-temperature BOG compressor, finalizing the technical agreement for research and development in collaboration with Xi’an Jiaotong University. The wire and cable business completed sample testing for the dual-layer insulated waterproof B1-level cross-lined polyethylene insulation wire project, while the electromagnetic wire series products project is currently undergoing process validation. The hydroelectric business segment achieved technical development for high-altitude turbine generator units, completing the design of the ventilation system. ɛ͏ ࿆613.8ɛ͏࿆ 536.5ϵຬ ɛ͏࿆77.3ߒ14.4%f࿚ Їɚཧɚʞϋʬ˜ɧɤ˚˟ d ᆎঐ๕ༀ௪ᐄ ɛ͏࿆ 152.8ϵຬʩd༰̘ϋΝ ɛ͏࿆ 44.8ɛ͏࿆108.0ϵຬ ߒ241.1%˥ɢ೯ཥண௪ุਕɽ షಯᑦf ධ ݴ ඎЭ BOG೯ d ʊҁϓၾГτʹஷɽኪ f ཥᇞཥุਕᕐᄴഒ ᇝԣ˥B1ॴʹᑌၳଖὰഒᇝཥᇞධͦ d ʊҁϓᅵ ධͦd͍ආБʈᖵሞᗇf ೯d f
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22 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS In the second half of the year, the wind power blade business will strengthen new product development and innovation in new processes, advancing the development of a sharing platform in cooperation with customers, continuously optimizing product structures based on customer load requirements, and accelerating decision-making and optimization of construction plans for offshore wind power bases; the industrial pump business will continue to explore overseas markets, accelerating the establishment of overseas stationing and cultivating overseas distributors, establishing service points in Southeast Asia, and expanding distributors in South America, the Middle East, and Central Asia; the electrical wire and cable and materials business will build a diversified business model, accelerate the construction of electromagnetic wire projects, and speed up development in new sectors; the industrial blower business will focus on breakthroughs in the coking industry, mining, thermal power, and international trade to form new market support; the gas compressor business will implement a differentiated competitive strategy, enhancing demand development for key fields and customers, and vigorously promote R&D of new products like large-flow BOG compressors and 6M32 high-speed skid-mounted compressors; the hydroelectric equipment business will continue to deepen the industrial service market, increasing its share in the after-service market and continuously improving gross profit levels. It is expected that this segment will achieve steady growth throughout the year. Additionally, Chongqing Cummins Engine Co. Ltd. (“Chongqing Cummins”), a joint venture of the company, specializes in producing high-horsepower diesel engines. In the first half of the year, Chongqing Cummins accelerated the expansion of new products and new markets while strengthening internal management. On the product side, the Q60 engine has the capacity for mass supply; the development of the Q50 engine for power generation and the Q19 engine for industrial applications is progressing rapidly, with the methanol engine prototype successfully delivered. In terms of market performance, the power segment continued to show good growth, with high-horsepower product sales increasing by 8% year-on-year. On the management side, the company has been deepening lean management and initiating supply chain reforms, leading to significant improvements in operational performance. It is expected that the business performance will also maintain good growth in the second half of the year. ක೯ձอʈᖵ ܄ ࠬ ุ ऎ̮̹ఙ d ̋Ҟऎ̮̺ᓃʿऎ̮ eʕ ܔ ணd̋อᒄ ዚุਕ̋੶࿁ೊʷБุeᘤʆe˦ ॎdҖϓอ̹ఙ˕䏃iंᏀᐵዚ ࠠ ඎ BOGᏀᐵዚe 6M32೯i˥ɢ೯ཥ ਕ̹ ෯Όϋྼତ f ೯ eอ̹ ၌d Q60೯ਗዚՈ ௪ҭඎԶᏐঐɢi Q50೯ཥ͜೯ਗዚձ Q19ʈุᏐ ක೯ʈЪ̋પආ d ͠ቐ೯ਗዚᅵዚ ༰λ ڗ8%iί၍ଣ d੭ ɨ̒ϋ༈ุਕ f
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 23 HIGH-END SMART EQUIPMENT (BUSINESSES INCLUDING SMART MACHINE TOOLS, SMART SYSTEM INTEGRATION AND SMART ELECTRONICS, ETC.) In the first half of the year, the Group’s subsidiary, PTG in the UK, faced financial strain due to project delays from clients, coupled with exchange rate fluctuations, rising interest rates, and increasing energy prices, which eroded profit margins, leading to a decline in operational performance; the smart equipment system integration business experienced setbacks due to project delays from some clients, while the smart electronics business was affected by strategic adjustments from major clients and tariffs resulting from US-China trade tensions. However, the high-end CNC machine tool business saw good market growth in the first half, driving significant increases in products like grinding machines and CNC hobbing machines, leading to a notable improvement in operational profits and contributing to the overall segment achieving approximately RMB880.9 million in operating revenue, a slight year-on-year increase of about 1.1%. During the Period, the gross profit of the high-end smart equipment operating segment was approximately RMB157.4 million, representing a decrease of approximately RMB4.6 million or approximately 2.8% as compared with approximately RMB162.0 million for the same period of last year. For the six months ended 30 June 2025, the loss of the high-end smart equipment operating segment was approximately RMB37.7 million, compared to a profit of approximately RMB38.3 million in the same period of last year, representing an increase in losses. This was primarily due to a decline in PTG business during the Period, which exacerbated losses, as well as the impact of overseas trade friction on the intelligent manufacturing business. ৷၌౽ঐༀ௪ ౽ঐዚґe౽ঐༀ௪ӻ୕ණϓ ʿ౽ঐཥɿഃุਕ PTGಂ ɪ ᐄุᐶɨi౽ঐༀ௪ӻ d ౽ঐཥɿ ᗫᅂᚤ d ̈ ༰λd d ෯ྼତᐄ ɛ͏࿆ 880.9ߒ1.1%f ɛ͏ ࿆157.4ɛ͏࿆ 162.0ϵຬ ɛ͏࿆ 4.6א2.8%f ࿚Їɚཧ ˜৷၌౽ঐༀ௪ᐄʱ ɛ͏࿆ 37.7ޮ ɛ͏࿆ 38.3͉ಂග PTGุਕ̈ତɨᓒɽᑦฦ˸ʿ౽ঐႡிุਕա f
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24 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS During the Period, Chongqing Machine Tool Group acquired 100% equity interest in Chongqing Panlian Transmission Technology Co., Ltd. held by Chongqing Electromechanical Holding Group Asset Management Co., Ltd. This transaction was conducted under the same control, resulting in adjustments to the consolidation ratio during the Period and restatement of data for 2024. Concurrently, Chongqing Sino-Germany Smart Factory Solutions Co., Ltd ceased to be consolidated (For more details, please refer to the Company’s announcements respectively dated 27 February 2025, 18 March 2025 and 23 April 2025, which were published on the HKEXnews website of the Stock Exchange (www.hkexnews.hk)). In the first half of the year, the CNC machine tool business achieved qualified axial position accuracy measurements for the HG350C CNC profile grinding machine, reaching international advanced levels. The software project for the honing machine is progressing in collaboration with the UK, having completed the development of honing processing and correction algorithms. The YS7232GH high- precision grinding machine project entered the tool holder assembly design phase in June. The research on the integrated forming process of water-cooled nozzles for metal 3D printers successfully completed trial printing of four new parts, which have been delivered to customers for testing. The smart electronics business completed the main design of the three-axis motion platform. The research and application project for the collaborative robot automated handling platform has entered the process debugging stage. In the second half of the year, the Group’s CNC machine tool business will further strengthen technological innovation, accelerating the development of the next generation of high- performance grinding machines for new energy vehicles, hobbing machines for humanoid robots, and honing composite machines for precision reducers, while also focusing on overcoming key technologies such as powerful honing processes to achieve domestic substitution. The smart equipment system integration business will continue to deepen relationships with key existing customers such as China Railway Tunnel and State Energy Group, while accelerating the implementation of projects for new customers such as China Coal Research Institute and Tiandi Benniu. It is expected that this segment will maintain steady growth throughout the year. ණྠ ࠢ ʮ̡100%ᛆd᙮ΝɓછՓɨί͉ಂගሜΥԻ ᅅ˰ ʮ̡˟ၝΥɝ੮ Ϟᗫ༉ઋ༱ މ2025ϋ2˜27˚e2025ϋ3˜18˚ʿ 2025ϋ4˜23ၣ१ʮѓʫ f ɪ̒ϋdᅰછዚґุਕ HG350Cቃጋ d༺Ցყආ˥̻iᵀ ೯પආʕ d ʊҁϓᵀ ᇜႡi YS7232GHጋ ᙮ 3D Ӻҁϓ̬၇ ˒༊͜i౽ঐཥɿุ i ЪዚኜɛІਗ f ɨ̒ϋ d ͉ණྠᅰછዚґุਕਗ਼ආɓӉឝྼҦஔ ঐอঐ๕ԓ͜ጋዚe ɛҖዚኜɛ͜ဆዚ e ၚಯዚ͜ʫቃԓᵀ ልΥዚґක೯ d ̋Ҟ੶ɢᵀʈᖵഃᗫᒟҦஔҸ ᚃ ˒d̋Ҟપ i f
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 25 INDUSTRIAL SERVICES (BUSINESSES INCLUDING INDUSTRIAL EMPOWERMENT, FINANCING AND CENTRALIZED PROCUREMENT, ETC.) In the first half of the year, the overall operating income of industrial services reached approximately RMB31.9 million, representing a decrease of approximately RMB2.9 million as compared with approximately RMB34.8 million for the same period of last year. During the Period, the gross profit of the industrial services operating segment was approximately RMB22.0 million, representing a decrease of approximately RMB3.2 million or approximately 12.7% as compared with approximately RMB25.2 million for the same period of last year. For the six months ended 30 June 2025, the results of the industrial services operating segment was approximately RMB11.9 million, representing a decrease of approximately RMB12.9 million or approximately 52.0% as compared with approximately RMB24.8 million for the same period of last year, which was mainly due to impact of falling interest rates on financial business. It is expected that this segment will remain unchanged year-on-year. In the first half of the year, the industrial empowerment business continued to advance the construction of “digital electromechanical” systems, achieving phased results in R&D design, business control, and digital base. The integrated design simulation platform efficiently utilizes resources, enabling collaborative R&D among subsidiaries. The integration of finance and business completed pilot projects with two subsidiaries, laying the foundation for group-wide promotion. Project management and the HSE system standardized business processes, achieving digital management. The IoT platform connected over 1,900 devices, facilitating transparent management of equipment. The data platform deployed multiple standards, equipped with capabilities for massive data governance and analysis. Intelligent economic operation analysis covered 15 sectors and 180 indicators, providing data support for decision- making. The financial business accelerated the construction of the treasury management system, optimized the allocation of financial resources, and strengthened capital risk control to achieve efficient flow and reasonable allocation of funds. ፄeණમഃุਕ ɛ͏࿆ 31.9ɛ͏࿆ 34.8ϵຬʩdಯ ɛ͏࿆2.9ϵຬʩf ɛ͏࿆ 22.0 ɛ͏࿆ 25.2ߒ ɛ͏࿆3.2ߒ12.7%f࿚Їɚཧɚʞϋ ุᐶ ɛ͏࿆ 11.9ɛ͏࿆ 24.8ϵ ɛ͏࿆12.9ߒ52.0%d ؐ ̻f ணd d ᙮ʮ̡ྼ ᙮ʮ̡༊ᓃ d ਿᓾiධͦ၍ଣၾ HSEτᐑӻ୕ dྼତᅰοʷ၍ଣi IoTᑌၣ̨̻ ટɝ1,900ʷ၍ଣ i ᅰኽ ঐɢi ᔧႊ 15෯180Ӕ ၍ଣӻ ᎈ၍છd ਗၾΥଣৣໄf
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26 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS In the second half of the year, the procurement business will take the lead in creating an “Intelligent Business Travel Management Platform” for “CQME Mobility” designed for the Group’s internal travel procurement, expense control, and reconciliation in a one- stop digital management system. Utilizing intelligent methods, the platform aims to reduce costs, control expenses, and enhance lean management efficiency. The financial business will continue to strengthen innovation, complete the phased construction of the treasury, promote digital intelligent empowerment, and solidify risk compliance. It is expected that this segment will maintain stability throughout the year. RESULTS OVERVIEW Awards and Honours The Group focuses on the businesses of clean energy equipment and high-end intelligent equipment, conforms with the important development strategies of the state, i.e. “promote the high-end, intelligent, and green development of manufacturing”, and centered on the carbon peak and carbon neutrality goals of the state, and is committed to promoting green development of manufacturing, continue to cultivate brand culture. Many products of the Group have obvious competitive advantages in market segments and overseas markets. In the first half of the year, the Group obtained 33 new authorized patents, of which 29 were authorized invention patents. The Group participated in the formulation of 4 national standards and 3 industry standards. During the period, the subsidiaries of the Group were awarded the following awards: • Chongqing Pump Industry Co., Ltd. was successfully selected as one of the first 16 enterprises recognized by the Chongqing State-owned Assets Supervision and Administration Commission for building a first-class well-known brand. Its project on “Key Technologies and Applications of High- Performance Special Industrial Pumps” received a first prize from the Chongqing Science and Technology Progress. ɨ̒ϋdණમุਕଘ᎘͂ி ዚཥ̈Б ౽ঐʷਠ ණમe൬છe࿁ ࠥ ᚃ੶ʷ௴ ࠬ f ᐄΫᚥ ᆤධᚑ Υ પ ࡈ ᜑf ɪ̒ϋd͉ණྠอᄣબᛆਖ਼л 33 ਖ਼л29ᅺ4ධdБุᅺ3ධf ᙮ʮ̡બ˸ɨᆤධj • ᅅ̹ ҭ16ΆุdՉ ৷ ᅅ̹ ҦආӉɓഃᆤf
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 27 • Chongqing Pigeon Electric Wires & Cable Co., Ltd. was successfully selected as one of the first 16 enterprises recognized by the Chongqing State-owned Assets Supervision and Administration Commission for building a first-class well- known brand and awarded the title of Chongqing Industrial Design Center. • Chongqing Chengfei New Material Co., Ltd. was rated as a Specialized and New small and medium-sized enterprise in Chongqing. Its project on “Key Technology Development and Industrialization of Ultra-Large High-Modulus Glass Fiber Wind Power Blades” received the first prize from the Chongqing Science and Technology Progress. • Chongqing Machine Tool (Group) Co., Ltd. passed the re- evaluation for Specialized and New enterprises in Chongqing, and its project on “Key Technologies and Equipment for Precision Grinding of Gears for New Energy Automobile” received a first prize from the Chongqing Science and Technology Progress. • Chongqing Holoyd Precision Screw Manufacturing Co., Ltd. was recognized as Specialized and New small and medium- sized enterprise in Chongqing. SALES For the six months ended 30 June 2025, the Group’s total revenue amounted to approximately RMB4,658.1 million, representing an increase of approximately 9.2% as compared with approximately RMB4,265.9 million for the same period of last year. In general, revenue of the clean energy equipment segment was approximately RMB3,738.2 million (accounting for approximately 80.3% of the total revenue), representing an increase of approximately 11.3%; revenue of the high-end smart manufacturing segment was approximately RMB880.9 million (accounting for approximately 18.9% of the total revenue), representing an increase of approximately 1.1%; revenue of the industrial service segment was approximately RMB31.9 million (accounting for approximately 0.7% of the total revenue), representing a decrease of approximately 8.3%. • ᅅ̹ ҭ 16Άุiᐏ ʕːf • ᅅ̹ਖ਼ၚ ࠬ ᅅ ҦආӉɓഃᆤf • ᅅ̹ਖ਼ ᗫ ҦආӉɓഃ ᆤf • பʮ̡ᐏ ᅅ̹ਖ਼ၚतอʕʃΆุf ቖਯ ٙ ɛ͏࿆ 4,658.1ٙ ɛ͏࿆4,265.9ߒڗ9.2%f ɛ͏ ࿆3,738.2ߒ80.3%ߒڗ 11.3%ɛ͏࿆ 880.9ߒ18.9%ߒڗ1.1%i ɛ͏࿆ 31.9ϵຬʩ Цᐄ ߒ0.7%ߒࠥ8.3%f
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28 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS During the Period, the sales revenue of main business segments showed steady growth. It is expected that the overall sales revenue of the Group for the whole year of 2025 will achieve a steady growth. There has been no significant change in the possible future development of the Group’s business and the Group’s outlook for the financial year of 2025 since the publication of the Group’s annual report for the year ended 31 December 2024. GROSS PROFIT The gross profit for the six months ended 30 June 2025 was approximately RMB799.8 million, showing an increase of approximately RMB75.5 million or approximately 10.4% as compared with approximately RMB724.3 million for the same period of last year. The Group’s gross profit margin is expected to remain stable growth in the second half of 2025. OTHER INCOME Other income for the six months ended 30 June 2025 was approximately RMB54.2 million, showing a decrease of approximately RMB35.1 million or approximately 39.3% as compared with approximately RMB89.3 million for the same period of last year, mainly due to a 46.6% year-on-year decrease in government subsidy income during the Period. GAIN ON DISPOSAL OF ASSET Gain on disposal of assets for the six months ended 30 June 2025 was approximately RMB8.5 million. Details are set out in Note V.62 to the Condensed Consolidated Interim Financial Information. fཫ ɚཧɚʞϋ͉ණྠΌϋቖਯϗɝ̙˸ྼତ f జѓ ձ͉ණྠ࿁ ɽᜊਗf ˣл ɛ ͏࿆799.8ɛ͏࿆ 724.3ϵ ɛ͏࿆75.5ߒ10.4%f ֛ f Չ˼ϗू Չ˼ϗ ɛ͏࿆ 54.2ɛ͏࿆ 89.3ɛ͏࿆ 35.1ߒ 39.3%пϗɝΝˢಯˇ 46.6%f ༟ପஈໄϗू ༟ପஈໄ ɛ͏࿆ 8.5ΥԻ ൗʞe 62ʫf
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 29 SALES AND ADMINISTRATIVE EXPENSES The sales and administrative expenses for the six months ended 30 June 2025 were approximately RMB413.5 million, showing a decrease of approximately RMB9.3 million or approximately 2.2% as compared with approximately RMB422.8 million for the same period of last year. The ratio of sales and administrative expenses to sales decreased from approximately 9.9% in the same period last year to approximately 8.9%. A year-on-year increase in selling expenses of approximately RMB7.5 million was mainly due to the increase in sales service fee. Administrative expenses decreased by approximately RMB16.8 million year-on-year, mainly due to the change of performance calculation method by individual subsidiary and the deconsolidation of Chongqing Sino-Germany Smart Factory Solutions Co., Ltd.* during the Period. OPERATING PROFIT The operating profit for the six months ended 30 June 2025 was approximately RMB451.4 million, showing an increase of approximately RMB119.4 million or approximately 36.0% as compared with approximately RMB332.0 million for the same period of last year, mainly due to significant improvement in the operating performance of hydropower equipment business, and growth in investment income. FINANCE COSTS The net interest expenses for the six months ended 30 June 2025 were approximately RMB29.0 million, representing a significant decrease of approximately RMB16.6 million or approximately 36.4% as compared with approximately RMB45.6 million for the same period of last year, which was mainly due to the a significant decrease in interest expenses and bill discounting expenses compared to the same period last year. ቖਯʿ၍ଣ൬͜ ቖਯʿ၍ ɛ͏࿆ 413.5ɛ ͏࿆422.8ɛ͏࿆ 9.3ϵຬʩdಯష ߒ2.2%ˢଟ̘͟ϋ ߒٙ9.9%ߒ8.9%d ቖਯ൬͜Νˢɪʺ ɛ͏࿆7.5i ɛ͏࿆ 16.8ί ᅅ f ᐄุлᆗ ᐄุлᆗ ɛ͏࿆ 451.4ɛ͏࿆ 332.0ɛ͏࿆ 119.4ߒ 36.0% f ৌਕ൬͜ ක ɛ͏࿆ 29.0ɛ͏࿆ 45.6ɛ͏࿆ 16.6ϵຬʩdಯష ߒ36.4%˕̈˸ʿୃኽ൨ତ˕̈༰̘ f
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30 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS INVESTMENT INCOME For the six months ended 30 June 2025, the Group’s investment income was approximately RMB398.1 million, representing an increase of approximately RMB116.4 million or approximately 41.3% as compared with approximately RMB281.7 million for the same period of last year. This was mainly attributable to Chongqing Cummins’ performance, which increased by approximately RMB71.3 million or approximately 27.6% compared to the same period last year, followed by Chongqing Hitachi Energy’s performance, which increased by approximately RMB28.8 million or approximately 156.6% compared to the same period last year. Relevant details are set out in Note V.58 to the Condensed Consolidated Interim Financial Information. INCOME TAX EXPENSES The income tax expenses for the six months ended 30 June 2025 were approximately RMB22.6 million, representing a significant decrease of approximately RMB25.4 million as compared with approximately RMB48.0 million for the same period of last year, which was mainly due to income tax incentives enjoyed by individual companies and changes in deferred tax. Relevant details are set out in Note V.65 to the Condensed Consolidated Interim Financial Information. PROFIT ATTRIBUTABLE TO SHAREHOLDERS Profit attributable to shareholders for the Period was approximately RMB416.0 million, representing an increase of approximately RMB145.6 million or approximately 53.8% as compared with approximately RMB270.4 million for the same period of last year. Earnings per share increased from approximately RMB0.07 in the same period last year to approximately RMB0.11 in the Period. ҳ༟ϗू ˜ d ͉ණྠҳ ɛ͏࿆ 398.1ɛ ͏࿆281.7ɛ͏࿆ 116.4ߒא 41.3%ุᐶ༰̘ϋΝಂ ɛ͏࿆ 71.3ߒא27.6%ᅅ ɛ͏࿆ 28.8ϵຬʩ ߒא156.6%ΥԻʕಂৌ ൗʞe58ʫf ൬͜ ක ɛ͏࿆ 22.6ɛ͏࿆ 48.0ɛ͏࿆ 25.4ࠅ ධᜊ ڝࣘ ൗʞe65ʫf ᏐЦлᆗ ɛ͏࿆ 416.0ϵຬʩd ɛ͏࿆ 270.4ɛ͏ ࿆145.6ߒ53.8%л̘͟ϋΝ ɛ͏࿆0.07ɛ͏࿆ 0.11ʩf
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 31 SECURED ASSETS As at 30 June 2025, approximately RMB617.0 million of the Group was deposited with the banks with pledge or restriction for use (as of 31 December 2024, the amount was approximately RMB642.2 million). In addition, restricted notes receivable of certain subsidiaries of the Group by pledging notes with banks and financial institutes amounted to approximately RMB67.4 million. CASH FLOW As at 30 June 2025, the cash and bank deposits (including restricted cash) of the Group amounted to approximately RMB2,422.8 million (31 December 2024: approximately RMB2,744.9 million), representing a decrease of approximately RMB322.1 million or approximately 11.7%, which was mainly due to the decrease in operating cash flow. During the Period, the Group recorded a net cash outflow from operating activities of approximately RMB516.7 million (net cash outflow approximately RMB251.8 million for the same period of last year), a net cash inflow of investing activities of approximately RMB151.5 million (net cash outflow approximately RMB120.7 million for the same period of last year), and a net cash inflow of financing activities of approximately RMB66.0 million (net cash outflow approximately RMB431.7 million for the same period of last year). ڭ ɚཧɚʞϋʬ˜ɧɤ˚ d ͉ණྠვБπಛʕϞ ɛ͏࿆ 617.0ϵຬʩ ɛ͏࿆ 642.2ϵຬ ፄዚ ɛ͏࿆ 67.4 ϵຬʩf ر ʿვБπ ɛ͏࿆2,422.8ϵຬʩ ɚ ɛ͏࿆ 2,744.9ϵຬ ɛ͏࿆322.1ߒא11.7%ࠅ f ɛ͏࿆ 516.7ɛ͏࿆ 251.8 ɛ͏࿆151.5ϵຬ ɛ͏࿆120.7ϵຬʩ f ɛ͏࿆ 66.0ϵຬʩ ̘ϋΝ ɛ͏࿆ 431.7ϵຬʩ f
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32 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS ACCOUNTS RECEIVABLES AND OTHER RECEIVABLES As at 30 June 2025, the total accounts receivables and other receivables of the Group amounted to approximately RMB4,644.6 million, showing an increase of approximately RMB852.7 million as compared with approximately RMB3,791.9 million as at 31 December 2024, which was mainly due to an increase of approximately RMB495.3 million in the wind power blades business; an increase of approximately RMB197.5 million in the electrical wires and cables business. ACCOUNTS PAYABLES AND OTHER PAYABLES As at 30 June 2025, the total accounts payables and other payables of the Group amounted to approximately RMB3,667.8 million, showing an increase of approximately RMB543.8 million as compared with approximately RMB3,124.0 million as at 31 December 2024, which was mainly due to an increase of approximately RMB279.0 million in the wind power blades business and an increase of approximately RMB315.3 million in the machine tools business. ᏐϗሪಛʿՉ˼Ꮠϗಛ ɚཧɚʞϋʬ˜ɧɤ˚ d ͉ණྠᏐϗሪಛʿՉ ɛ͏࿆ 4,644.6ϵ ຬ ʩd༰ ɛ͏࿆ 3,791.9ϵ ɛ͏࿆852.7ཥ ɛ͏࿆ 495.3ϵຬʩiཥᇞཥุਕ ɛ͏࿆197.5ϵຬʩf Ꮠ˹ሪಛʿՉ˼Ꮠ˹ಛ ɚཧɚʞϋʬ˜ɧɤ˚ d ͉ණྠᏐ˹੮ಛʿՉ ɛ͏࿆ 3,667.8ϵຬʩ d ༰ɚཧ ɛ͏࿆ 3,124.0ϵຬʩd ɛ͏࿆ 543.8ཥ˪ุਕ ɛ͏࿆ 279.0ɛ ͏࿆315.3f
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 33 ව ɛ ͏࿆18,832.6ϵຬʩd༰ɚཧɚ̬ϋɤɚ˜ɧɤɓ ɛ͏࿆ 17,686.8ɛ͏࿆ 1,145.8ɛ͏࿆ 12,297.2 ɛ͏࿆ 11,314.6ɛ͏࿆982.6ϵຬʩdЦ༟ ߒٙ65.3%ɚཧɚ̬ϋɤɚ˜ɧɤɓ˚j ߒ64.0%f ɛ ͏࿆9,947.3ϵຬʩ d ༰ɚཧɚ̬ϋɤɚ˜ɧɤɓ ɛ͏࿆ 9,068.4ɛ͏࿆ 878.9 ɛ͏࿆ 8,795.1ϵຬʩ d ɛ͏࿆ 7,422.7 ɛ͏࿆ 1,372.4වᐼ ߒٙ88.4%ߒ 81.9%f ࠽ ɛ͏࿆ 3,502.1ϵຬʩ d ༰ɚཧɚ̬ϋɤɚ˜ ɛ͏࿆ 3,891.9ɛ͏ ࿆389.8ϵຬʩf ASSETS AND LIABILITIES As at 30 June 2025, the total assets of the Group amounted to approximately RMB18,832.6 million, showing an increase of approximately RMB1,145.8 million as compared with approximately RMB17,686.8 million as at 31 December 2024. The total current assets amounted to approximately RMB12,297.2 million, showing an increase of approximately RMB982.6 million as compared with approximately RMB11,314.6 million as at 31 December 2024, accounting for approximately 65.3% of the total assets (31 December 2024: approximately 64.0%). As at 30 June 2025, the total liabilities of the Group amounted to approximately RMB9,947.3 million, showing an increase of approximately RMB878.9 million as compared with approximately RMB9,068.4 million as at 31 December 2024. The total current liabilities amounted to approximately RMB8,795.1 million, showing an increase of approximately RMB1,372.4 million as compared with approximately RMB7,422.7 million as at 31 December 2024, accounting for approximately 88.4% of the total liabilities (31 December 2024: approximately 81.9%). As at 30 June 2025, the net current assets of the Group amounted to approximately RMB3,502.1 million, showing a decrease of approximately RMB389.8 million as compared with approximately RMB3,891.9 million as at 31 December 2024.
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34 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS CURRENT RATIO As at 30 June 2025, the current ratio (the ratio of current assets divided by current liabilities) of the Group was 1.40:1 (31 December 2024: 1.52:1). GEARING RATIO As at 30 June 2025, the Group’s gearing ratio is calculated by dividing borrowings by total capital, and the gearing ratio is 19.3% (31 December 2024: 20.3%). INDEBTEDNESS As at 30 June 2025, the Group had an aggregate bank and other borrowings of approximately RMB2,118.9 million, representing a decrease of approximately RMB82.8 million as compared with approximately RMB2,201.7 million as at 31 December 2024. Borrowings repayable by the Group within one year amounted to approximately RMB1,498.0 million, representing an increase of approximately RMB377.5 million as compared with approximately RMB1,120.5 million as at 31 December 2024. Borrowings repayable after one year amounted to approximately RMB620.9 million, representing a decrease of approximately RMB460.4 million as compared with approximately RMB1,081.3 million as at 31 December 2024. ਗˢଟ ਗˢଟ у މ1.40j1ɚ ཧ ٙ1.52j1f වˢଟ ܲ މ19.3%ɚ ཧ ɚ̬ϋɤɚ˜ɧɤɓ˚j 20.3%f ر ვБʿՉ˼ ɛ͏࿆ 2,118.9ϵຬʩ d ༰ɚཧɚ̬ϋ ɛ͏࿆ 2,201.7ϵຬʩ d ಯˇ ɛ͏࿆82.8ϵຬʩf ɛ͏࿆ 1,498.0ϵ ɛ͏࿆ 1,120.5ɛ͏࿆377.5 ɛ͏࿆ 620.9ϵຬʩd༰ɚཧ ɛ͏࿆ 1,081.3ϵຬʩd ɛ͏࿆460.4ϵຬʩf
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 35 SIGNIFICANT EVENTS Events in the Period (I) Change in Shareholding Structure of Controlling Shareholder The Company has received a notification from its controlling Shareholder, CQMEHG, on 26 February 2025: (i) Chongqing Yufu Holding Group Co., Ltd.*ʮ̡ (“Yufu Holding”) will make a capital increase to CQMEHG with a consideration of RMB5,000 million through cash and non-cash contribution methods. Upon completion of the capital increase, Yufu Holding will hold approximately 44.58% equity interest in CQMEHG (the “Capital Increase”); and (ii) Chongqing State-owned Assets Supervision and Administration Commission (“Chongqing SASAC”) agrees to gratuitously transfer its 35.42% equity interest in CQMEHG to Yufu Holding (the “Gratuitous Transfer”) (together with the Capital Increase, collectively referred to as the “Internal Restructuring”). Upon completion of the Internal Restructuring, Yufu Holding holds 80% equity interest in CQMEHG to be the direct controlling Shareholder of CQMEHG, and becomes the indirect controlling Shareholder of the Company, whereas CQMEHG remains the direct controlling Shareholder of the Company, and Chongqing SASAC remains the ultimate controlling Shareholder of the Company. Yufu Holding has applied for, and the Executive has granted, a waiver pursuant to Note 6(a) to Rule 26.1 of the Codes on Takeovers and Mergers and Share Buy-backs of the obligation of Yufu Holding to make a mandatory general offer for all the securities of the Company arising as a result of the Internal Restructuring. For more details, please refer to the Company’s announcements respectively dated 26 February 2025 and 29 April 2025, which were published on the HKEXnews website of The Stock Exchange of Hong Kong Limited (“Stock Exchange”) (www.hkexnews.hk). ɽԫධ ͉ಂගԫධ ɓ ᛆഐᜊһ 2025ϋ2˜26ᅅዚ d(i)ʮ̡ ਗ਼˸ɛ͏࿆500,000ຬʩ࿁ᄆ࿁ ږ Ϟ ߒ44.58%ᛆ ᄣ༟ԫධ i ʿ(ii)ᅅ ᅅዚཥණྠ 35.42% ೌᎵྌᔷ ଡ଼ ᅅዚཥණྠ 80%ٰ d Ԩ ᅅዚཥණ ᅅ̹ f ۆ26.1ൗᙑ6(a)͡ሗԨʊᐏ ࿁͉ʮ ϗᒅபf ၣ१(www. hkexnews.hk)މ2025ϋ2˜26 ˚ʿ2025ϋ4˜29ʮѓf
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36 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS (II) Connected Transactions Equity Transfer Agreement On 27 February 2025, Chongqing Machine Tools (Group) Co., Ltd.*பʮ̡ (“Chongqing Machine Tools Group”) (a wholly-owned subsidiary of the Company) and CQMEHG Asset Management Co., Ltd.*ණྠ༟ପ ʮ̡(“Asset Company”) (a wholly-owned subsidiary of the Controlling Shareholder of the Company) entered into the equity transfer agreement, pursuant to which Chongqing Machine Tools Group agreed to acquire and the Asset Company agreed to sell 100% equity interest in the Chongqing Panlian Transmission Technology Co., Ltd.*Ҧ ʮ̡, held by it at a consideration of RMB35,621,200. For more details, please refer to the Company’s announcements respectively dated 27 February 2025 and 18 March 2025, which were published on the HKEXnews website of the Stock Exchange (www.hkexnews.hk). (III) Continuing Connected Transaction 2026-2028 Master Sales Agreement On 7 April 2022, the Company entered into the existing master sales agreement, pursuant to which the Parent Company and its associates (“Parent Group”), excluding the Company and its associates (“Group”) agreed to sell materials, components, accessories or raw materials, finished goods and other relevant or similar items, power generation equipment and parts (including certain products such as control valves, parts for steering systems, gears, clutch, the BV series of electric cables) and other products, to the Parent Group. As the existing master sales agreement will expire on 31 December 2025, the Company renewed the existing master sales agreement with the Parent Company under the similar terms by entering into the 2026-2028 master sales agreement on 23 April 2025. ɚ ᛆᔷᜫᙄ 2025ϋ2˜27ப ᙮ʮ̡ ၾ ʮ̡ ༟ପ ᙮ʮ̡ ᖦ ᛆᔷᜫᙄ d ኽϤ d ዚґණྠΝจϗ ᅅᇂᑌෂ ٙ100%ɛ͏࿆ 3,562.12ຬʩf ၣ१ (www.hkexnews.hk)މ2025ϋ2˜ 27˚ʿ2025ϋ3˜18ʮѓf ɧ ɚཧɚʬЇɚཧɚɞϋᐼቖਯᙄ 2022ϋ4˜7ͭତϞᐼቖਯᙄf ኽϤd͉ණྠΝจΣ͎ʮ̡ʿՉᑌᖩɛ ˸ɨ ͉ʮ̡ʿՉᑌᖩɛ e e೯ཥண௪ʿ છՓუ e ᔷΣӻ୕ e ቃ e ᕎΥኜʿBVf 2025ϋ12˜31˚Ց ତϞᐼ 2025ϋ4˜23ͭɚཧɚʬ Їɚཧɚɞϋᐼቖਯᙄf
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 37 2026-2028 Master Supplies Agreement On 7 April 2022, the Company entered into the existing master supplies agreement with the Parent Company, pursuant to which the Parent Group agreed to supply the Group with intelligent equipment, component parts (such as standard component, electric machine, control cabinet, component parts, etc.) and other relevant or similar products, industry services (such as transport and storage services, contract energy management services) etc. As the existing master supplies agreement will expire on 31 December 2025, the Company renewed the existing master supplies agreement with the Parent Company under the similar terms by entering into the 2026-2028 master supplies agreement on 23 April 2025. 2026-2028 Master Leasing Agreement On 7 April 2022, the Company entered into the existing master leasing agreement with the Parent Company for the leasing of land and buildings from the Parent Group to the Group as offices, production facilities, workshops and staff quarters. As the existing master leasing agreement will expire on 31 December 2025, the Company renewed the existing master leasing agreement with the Parent Company under similar terms by entering into the 2026-2028 master leasing agreement on 23 April 2025. ɚཧɚʬЇɚཧɚɞϋᐼԶᏐᙄ 2022ϋ4˜7ͭତϞᐼ ԶᏐᙄ d ኽϤ d ͎ණྠΝจΣ͉ණྠԶᏐ ౽ঐண௪ e ཧ νᅺ e ཥዚ e છՓ eʈุ ਕ ഃf 2025ϋ12˜31˚Ց ତϞᐼ 2025ϋ4˜23ͭɚཧɚʬ ЇɚཧɚɞϋᐼԶᏐᙄf ɚཧɚʬЇɚཧɚɞϋᐼॡ༣ᙄ 2022ϋ4˜7˚ఱ͎ණྠΣ ࡰ ͭତϞᐼॡ༣ᙄf 2025ϋ12˜31˚Ց ତϞᐼ 2025ϋ4˜23ͭɚཧɚʬ Їɚཧɚɞϋᐼॡ༣ᙄf
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38 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS ݖ࣪ ᙄ 2025 ϋ12˜312025ϋ4˜23˚d͉ ʮ ̡ ʮ̡ ৌਕʮ ፄ ᙄ d ኽϤ d ৌਕʮ̡ਗ਼Σ͉ණྠ ڭ ҭ ɨdৌਕʮ̡ਗ਼Σ͉ණྠԶπಛ ਕf͉ණྠԨೌО່ਕІৌਕʮ̡ᐏ՟ ᐏ ਕf ݖ࣪ ᙄ 2025 ϋ12˜312025ϋ4˜23˚d͎ ʮ ̡ ͭɚཧɚʬЇɚཧɚɞϋ͎ණ ᙄ d ኽϤ d ৌਕʮ̡ਗ਼Σ ፄ ਕdίᐏዹͭ ɨdৌਕʮ̡ਗ਼Σ͎ණྠ ਕfৌਕʮ̡ԨೌО່ਕΣ͎ණ Չุਕ ਕf ၣ१ (www.hkexnews.hk)މ2025ϋ 4˜23˚ʿ2025ϋ6˜12ʮѓ d ˸ʿ2025 ϋ5˜22ஷՌf Major Transactions and Continuing Connected Transactions 2026-2028 Group Financial Services Framework Agreement As the existing group financial services framework agreement will expire on 31 December 2025, on 23 April 2025, the Company and the Chongqing Machinery and Electric Holding (Group) Finance Co., Ltd.* (“Finance Company”) entered into the 2026-2028 group financial services framework agreement, pursuant to which, the Finance Company will provide financial services to the Group, including loan services, non-financing guarantee letter services and other financial services. Subject to the approval of the independent Shareholders, the Finance Company will provide deposit services to the Group. The Group is not under any obligation to obtain any or all of the financial services from the Finance Company and may obtain relevant financial services based on its business needs. 2026-2028 Parent Group Financial Services Framework Agreement As the existing parent group financial services framework agreement will expire on 31 December 2025, on 23 April 2025, the Parent Company and the Finance Company entered into the 2026-2028 parent group financial services framework agreement, pursuant to which, the Finance Company will provide financial services to the Parent Group, including deposit services, non-financing guarantee letter services and other financial services. Subject to the approval of the independent Shareholders, the Finance Company will provide loan services to the Group. The Finance Company is not under any obligation to provide any or all of the financial services to the Parent Group and may provide relevant financial services based on its business needs. For more details, please refer to the Company’s announcements respectively dated 23 April 2025 and 12 June 2025, and circular dated 22 May 2025, which were published on the HKEXnews website of the Stock Exchange (www. hkexnews.hk).
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 39 ̬ ࠈࡌ 2025ϋ6˜12˚d͉ʮ̡̜ක2024؇ٰܓ ٙ f 2025ϋ6˜12ᗫӔᙄЪ̈ʘ f מה ၣ१ (www.hkexnews.hk)މ 2025ϋ5˜22މ2025ϋ6˜12 ʮѓf ʞ ᙮ʮ̡˟ၝΥɝ੮ பʮ̡ у͉ʮ̡Ό ࠠ ᙮ ʮ̡ d ˸ɨᔊ၈ ˰ီᅃʮ̡ ኹϞӔഄછ ʘ˚ у2025ϋ4˜23˚ ᇍ ʔᜊf ৌਕᅂᚤ ኽ˰ီᅃʮ̡ 2025ཫၑ d2025ϋዚґ ɛ͏࿆ 33.28ϵ ɛ͏࿆ 0.35ϵຬʩ f ϗɝЦ͉ණྠ࿚Їɚཧɚ̬ϋ ߒ0.5%f (IV) Amendment to the Articles of Association On 12 June 2025, the Company held an annual general meeting for the year 2024 to consider and approve the resolution to amend the Articles of Association. The above amendments came into effect on 12 June 2025, the date on which the relevant resolution was made. For the above-mentioned amendments to the Articles of Association, please refer to the circular dated 22 May 2025 and announcement dated 12 June 2025 published by the Company on the Stock Exchange’s HKEXnews website (www. hkexnews. hk). (V) Deconsolidation of Subsidiary of the Group Chongqing Machine Tool (Group) Co., Ltd.* (being the wholly- owned subsidiary of the Company, hereinafter referred to as “Machine Tool Group”), no longer exercised decision-making control over Chongqing Sino-Germany Smart Factory Solutions Co., Ltd.* (being the subsidiary of the Company, hereinafter referred to as “Smart Company”). Since the date of approval by the Board (being 23 April 2025), Machine Tool Group will remove Smart Company from the consolidated financial statements, but the shareholding ratio remains unchanged. Financial Impact According to Smart Company’s 2025 budget, Machine Tool Group’s revenue of consolidated level is expected to decrease by approximately RMB33.28 million, and total profit by approximately RMB0.35 million in 2025. Smart Company’s revenue accounted for approximately 0.5% of the Group’s total revenue for the year ended 31 December 2024.
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40 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS ͉ණྠ˟ၝΥɝ੮˰ ɛ͏࿆ 51.26ව ɛ͏࿆19.81ɛ͏࿆ 31.45ɛ͏࿆11.06ϵຬʩʿл ɛ͏࿆ 0.47މ ˟ၝΥɝ੮࿁͉ණྠ࿚Їɚཧɚʞϋʬ˜ ɧɤ˚˟6ɽ ᅂᚤf d˰ီᅃʮ̡ʘৌਕ ၝΥɝ ɪԨ͊ ҳ༟ϗूɝ੮f ່ ୋ 14d˟ၝΥɝ੮˰ီᅃ f จԈ Ϟᗫ˟ၝΥ מה d ˟ၝΥɝ੮ਗ਼ʔึ ிϓ ɽᅂᚤf ၣ१ (www.hkexnews.hk)މ2025ϋ4˜ 23ʮѓf Deconsolidation will result in the Group ceasing to consolidate Smart Company’s assets of approximately RMB51.26 million, liabilities of approximately RMB19.81 million, owners’ equity of approximately RMB31.45 million, revenue of approximately RMB11.06 million, and total profit of approximately RMB0.47 million. However, the Board considers that the deconsolidation does not have material impact on the Group’s consolidated financial statements for the six months ended 30 June 2025. After completion of the deconsolidation, Smart Company’s financial performance will no longer be consolidated into the Group’s consolidated financial statements. Despite this change, segment performance is largely unaffected, and future results will be recorded as investment income. Listing Rules Implications According to Chapter 14 of the Listing Rules, the deconsolidation of Smart Company does not constitute a disclosable transaction of the Company. Auditor’s Opinion The Company’s auditor has not informed the Company of any potential audit reservations regarding the deconsolidation. Saved as disclosed above, the Board is of the view that the deconsolidation will not materially affect the Group’s operations, cash flows, or financial position. For more details, please refer to the Company’s announcements dated 23 April 2025 which was published on the HKEXnews website of the Stock Exchange (www.hkexnews. hk).
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 41 ʬ ፯ᑘԫึe္ԫึ 2025ϋ6˜12˚̜ක2024؇ٰܓ ፯ᑘ ͛ʿ ԫึੂБԫi ͛ʿᇹқᏵ ശ ੂБԫf ္ԫึ ͉ʮ̡ୋ ͛ʿᄎ༸ശ 2025ϋ2މ ္ԫึᔖʈ္ԫf ၣ१ (www.hkexnews.hk)މ2025ϋ5˜ 22މ2025ϋ6˜12ʮѓ ʫ f dಂගʫ͉ʮ̡ԨೌОՉ ᚣf (VI) Re-election of the Board of Directors and Supervisory Committee The Company held its 2024 Annual General Meeting on 12 June 2025 to discuss and approve the re-election of directors and supervisors. Following the election, Mr. Yue Xiangjun, Mr. Qin Shaobo, and Mr. Deng Rui were appointed as executive directors of the Company’s seventh session of the Board. Mr. Lei Bin, Ms. Zhu Ying, Mr. Dou Bo, and Mr. Cai Zhibin were appointed as non-executive directors of the Company’s seventh session of the Board. Mr. Ke Rui, Mr. Liu Lijun, Ms. Pu Huayan, and Mr. Wong Chun Wa were appointed as independent non- executive directors of the company’s seventh session of the Board. Mr. Sun Wenguang was elected as the chairman of the Company’s seventh session of the supervisory committee. Mr. Wang Haibing and Mr. Cao Xingquan were appointed as independent supervisors of the seventh session of the supervisory committee. Mr. Duan Lian and Mr. Liu Daohua were elected as employee supervisors of the seventh session of the supervisory committee during the Company’s employee meeting in February 2025. (For more details, please refer to the Company’s circular dated 22 May 2025 and announcement dated 12 June 2025, which were published on the HKEXnews website of the Stock Exchange (www.hkexnews.hk).) Save as disclosed above, the Company had no other significant matters to report during this period.
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42 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS ԫධ ɽԫධf ව Ϟ වf ፕ ፕ ɛ͏࿆ 44.8ϵຬʩ ɚཧɚ̬ϋɤɚ˜ ɛ͏࿆35.7ϵຬʩ f ༟͉ක˕ ɛ͏࿆ 86.0ϵຬ ʺe͛ପண ʺ ࿚Їɚཧɚ̬ϋʬ˜ɧɤ ɛ͏࿆ 41.1ϵຬʩ f ഄ ৌ fԷνd d ፄʈՈf༈ഃ ᔷᜫ ᙮ʮ̡၍ଣ d Դ༈ഃ༟ପ̙˸͜Э ᙮ʮ̡ ࣛ ᄆ ɽʱf SUBSEQUENT EVENTS The Group does not have any significant events after the Period. CONTINGENT LIABILITIES As at 30 June 2025, the Group had no significant contingent liabilities. CAPITAL COMMITMENTS As at 30 June 2025, the Group’s total capital commitments amounted to approximately RMB44.8 million (31 December 2024: approximately RMB35.7 million). CAPITAL EXPENDITURE During the Period, the total capital expenditure of the Group was approximately RMB86.0 million, which was principally used for plant expansion, improvement of production technology and equipment upgrade and capacity improvement (for the six months ended 30 June 2024: approximately RMB41.1 million). TREASURY POLICIES The Group has adopted treasury policies, which concentrate the financial resources available to its different subsidiaries to meet the business needs of its different subsidiaries through the subsidiaries involved with financial services qualifications of the Group. For example, the Group has adopted a centralised approach in managing the funds available to subsidiaries involved, including cash, bank deposits, bills and other financial instruments. These assets, such as bills and financial instruments, are managed and arranged as short-term financing amongst subsidiaries with financial services qualifications of the Group through proper endorsements or transfers so that they can be fully utilized to meet payment obligations of the Group’s relevant subsidiaries with minimal financing cost. The Group closely monitors the level of use and the financial guarantees given by the Group at the time of financing and the value of each of the relevant transactions only represents an immaterial part of its total assets and business.
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2025 中報 重慶機電股份有限公司 ؓ MANAGEMENT’S DISCUSSION AND ANALYSIS 43 ʮ ձ ɚཧɚɧϋɤ˜ɤ˚Ϟ ᗫ̂ʮѓʫf ᎈ ᎈd ᎈԸІમ͜ʔ ڭ Ӌණྠɿʮ̡၍ଣၾՉ̌ঐ ʈ Ոf ʈ 6,188 ɛ ɚཧɚ̬ϋʬ˜ɧɤ˚6,720ɛ f͉ණྠᘱ ໌బϞҦஔʿ၍ଣ ʱ ܵڭ f Chongqing Machinery & Electric Holding Group Finance Co., Ltd., a subsidiary of the Group, provides financial services and establishes and improves risk management, loan impairment and credit approval policies, the contents of which are set out in the relevant supplemental announcement dated 10 October 2023. RISK OF FOREIGN EXCHANGE The Group is exposed to foreign exchange risk arising from various currencies, primarily with respect to the HKD, GBP and US dollar. Foreign exchange risk arises when future commercial transactions and recognized assets and liabilities are denominated in a currency that is not the Group’s functional currency. Management has set up a management system of foreign exchange hedges, requiring all subsidiaries of the Group to manage the foreign exchange risk against their functional currency and adopt foreign exchange tools recognized by the Group. EMPLOYEES As at 30 June 2025, the Group had a total of 6,188 employees (30 June 2024: a total of 6,720 employees). The Group will continue to upgrade its technical talent base, foster and recruit technical and management personnel possessed with extensive professional experiences, optimize the distribution system that links with the remuneration and performance reviews, improve training supervision on safety so as to ensure employees’ safety and maintain good and harmonious employee-employer relations.
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44 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ࣘ OTHER INFORMATION INTERESTS OF SUBSTANTIAL SHAREHOLDERS AND OTHER PERSONS IN SHARES AND UNDERLYING SHARES As at 30 June 2025, so far as the directors of the Company are aware, the following persons (not being a director, chief executive or supervisor of the Company) had interests in the shares of the Company as recorded in the register required to be kept under section 336 of the Securities and Futures Ordinance (“SFO”): Long positions in domestic shares of the Company with par value of RMB1.00 each (L) Long Position ᛆ ू ה ᐼ ΅ʕኹϞᛆूdϾ༈ഃᛆू ኽᗇՎʿಂૢԷ ᗇՎʿಂૢԷ ୋ336ٙ ೮া̅j ɛ͏࿆ 1.00ࡑ ΅ᗳй Ԓ΅ Цʊ೯Б ᐼᅰ ϵʱˢ Цʊ೯Б H΅ᐼᅰ ϵʱˢ Цʊ೯Б ΅ᐼᅰ ϵʱˢ Name of shareholders Number of shares Stock category Status Percentage of total issued domestic shares Percentage of total issued H shares Percentage of total issued shares ൗ Notes (%) (%) (%) ණྠ ʮ̡ 1,924,225,189ྼूኹϞɛ (1) 74.46(L) – 52.22 Chongqing Machinery and Electronic Holding (Group) Co., Ltd. Domestic shares Beneficial owner 92,670,000 HྼूኹϞɛ (1) – 8.42(L) 2.52 H shares Beneficial owner ʮ̡ 232,132,514ྼूኹϞɛ (1) 8.98(L) – 6.30 Chongqing Yufu Holding Group Co., Ltd. Domestic shares Beneficial owner ʮ̡ 232,132,514ྼूኹϞɛ (2) 8.98(L) – 6.30 Chongqing Construction Engineering Group Group Co., Ltd. Domestic shares Beneficial owner ʮ̡ 195,962,467ྼूኹϞɛ (3) 7.58(L) – 5.32 China CITIC Financial Asset Management Co., Ltd. Domestic shares Beneficial owner ึ 2,388,490,217ྠᛆू (1) 92.42(L) – 64.82 Chongqing State-owned Assets Supervision and Administration Commission Domestic shares Controlled corporation interest 92,670,000 HྼूኹϞɛ (1) – 8.42(L) 2.52 H shares Beneficial owner 195,962,467ྠᛆू (3) 7.58(L) – 5.32 Ministry of Finance of the PRC Domestic shares Controlled corporation interest (L) ܸ ࡑ
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2025 中報 重慶機電股份有限公司 ࣘ OTHER INFORMATION 45 ɛ͏࿆ 1.00ٙH΅ ΅ᅰඎ Ԓ΅ Цʊ೯Б Hᐼᅰ ϵʱˢ Цʊ೯Б ΅ᐼᅰ ϵʱˢ Name of shareholders Number of shares Status Percentage of total issued H shares Percentage of total issued shares ൗ Note (%) (%) The Bank of New York Mellon ၈The Bank of New York 87,276,000(L)၍ɛ 7.93(L) 2.37(L) 0(P) Custodian 0(P) 0(P) The Bank of New York Mellon Corporation 87,276,000(L)ᛆू (4) 7.93(L) 2.37(L) 87,276,000(P) Interest in corporation controlled by substantial shareholders 7.93(P) 2.37(P) (L) ܸ ࡑ S) ܸ ࡑ P) ܸ ΅ ൗj (1) ࠢ ٙ ͉ʮ̡ 1,924,225,189 ʿ 92,670,000ٰHձ232,132,514ʫ༟ ᛆ ूf (2) ᅅ̹Ϟ༟ପ္ຖ Ϟ Ϟ 76.53%ٰ ͉ʮ̡ 232,132,514Ꮠൖ ᛆूf H shares of the Company with par value of RMB1.00 each (L) Long Position (S) Short Position (P) Lending Pool Notes: (1) As Chongqing Machinery and Electronics Holding (Group) Co., Ltd. and Chongqing Yufu Holding Group Co., Ltd. are wholly owned by Chongqing State-owned Assets Supervision and Administration Commission, Chongqing State-owned Assets Supervision and Administration Commission is deemed to be interested in 1,924,225,189 domestic shares and 92,670,000 H shares as well as 232,132,514 domestic shares of the Company held by the two companies respectively. (2) Chongqing Construction Engineering Group Corporation Limited is held as to 76.53% by Chongqing State-owned Assets Supervision and Administration Commission through its wholly-owned subsidiary, Chongqing Construction Investment Holding Co., Ltd. Therefore, Chongqing State-owned Assets Supervision and Administration Commission is deemed to be interested in 232,132,514 domestic shares of the Company held by Chongqing Construction Engineering Group Corporation Limited.
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46 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ࣘ OTHER INFORMATION (3) China CITIC Financial Asset Management Co., Ltd. is held as to 63.36% directly by the Ministry of Finance of the People’s Republic of China and as to 4.22% indirectly by the Ministry of Finance of the People’s Republic of China through its wholly-owned subsidiary, China Life Insurance (Group) Company. Therefore, the Ministry of Finance of the People’s Republic of China is deemed to be interested in 195,962,467 domestic shares of the Company held by China CITIC Financial Asset Management Co., Ltd.. (4) The Bank of New York Mellon Corporation holds 100% interest in The Bank of New York Mellon (formerly known as “The Bank of New York”), which holds 87,276,000 H shares of the Company. The interest in 87,276,000 H shares relates to the same block of shares in the Company and includes a lending pool of 87,276,000 H shares of the Company. Save as disclosed above, the directors of the Company are not aware of any persons holding any interests or short positions in the shares or underlying shares which were required to be recorded in the register pursuant to Section 336 of the SFO as at 30 June 2025. INTERESTS OF THE DIRECTORS AND CHIEF EXECUTIVE IN THE SHARES AND UNDERLYING SHARES As at 30 June 2025, so far as the directors are aware, none of the directors, chief executive or supervisors of the Company had any interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which the directors or chief executive were taken or deemed to have under such provisions of the SFO), or which were required, pursuant to section 352 of the SFO, to be entered in the register referred to therein, or which were required to be notified to the Company and the Stock Exchange pursuant to the Model Code set out in Appendix C3 of the Stock Exchange Listing Rules. (3) ʕശɛ͏ Ϟ 63.36%ᛆձீཀՉΌ༟ኹϞ Ϟ4.22%ᛆd ͉ ʮ̡195,962,467ʕശɛ͏ձ ᛆूf (4) The Bank of New York Mellon CorporationϞ The Bank of New York Mellon၈The Bank of New Yorkٙ100%ᛆूdThe Bank of New York Mellon Ϟ 87,276,000͉ʮ̡ Hf87,276,000ٰHٰ ΅ 87,276,000͉ʮ̡Hf ϞОɛ ኽᗇՎʿಂૢ Էୋ336א f ᛆू d͉ʮ Չ ່ԈᗇՎʿಂૢԷୋ XVٙ ኽᗇՎʿಂૢ ԷୋXVୋ7ʿ8ܼ ༈ഃ ኽ ᗇՎʿಂૢԷୋ 352೮ C3ᅺ f
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2025 中報 重慶機電股份有限公司 ࣘ OTHER INFORMATION 47 COMPLIANCE WITH CORPORATE GOVERNANCE CODE During the Period, the Company has adopted and complied with the code provisions under the Corporate Governance Code set out in the Appendix C1 of the Listing Rules. MODEL CODE FOR SECURITIES TRANSACTIONS The Company has complied with the Model Code for Securities Transactions by Directors of Listed Companies (the “Model Code”) set out in Appendix C3 of the Listing Rules and has adopted procedures to regulate securities transactions by directors. The Company has obtained the respective confirmations by all directors that they have complied with the provisions of the Model Code for the six months ended 30 June 2025. PURCHASE, SALE OR REDEMPTION OF SECURITIES OF THE COMPANY During the six months ended 30 June 2025, neither the Group nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities. MATERIAL ACQUISITION AND DISPOSAL OF SUBSIDIARIES AND ASSOCIATED COMPANIES During the six months ended 30 June 2025, there was no material acquisition and disposal of subsidiaries and associated companies by the Group. SIGNIFICANT LITIGATION During the Period, the Company had no new significant litigation or arbitration matters that needed to be brought to the attention of directors and Shareholders of the Company. ۆ C1ה ૢ˖f ۆ C3ɪ̹ʮ̡ dમॶ ʘҏ f ͉ʮ̡ʊ՟Ό йᆽႩ d ᆽႩί࿚Їɚཧɚʞϋ f ᛙΫ͉ʮ̡ᗇՎ ˜ಂගʫ d ͉ ᛙΫО͉ ʮ̡ʘɪ̹ᗇՎf ᙮ʮ̡ʿᑌ᙮ʮ̡ ˜ಂගʫ d ͉ ᙮ʮ̡ʿᑌ᙮ʮ̡f ɽൡத ؇ٰ ɽൡதeԫධf
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48 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ࣘ OTHER INFORMATION INTERIM DIVIDEND The Company considers stable and sustainable returns to Shareholders to be our goal. Subject to compliance with the applicable laws, rules, regulations and the Articles of Association, in deciding whether to propose any dividend payout, the Board will take into account, among other things, the financial results, the earnings, losses and distributable reserves, the operations and liquidity requirements, the debt ratio and possible effects on the credit lines, and the current and future development plans of the Company. The Board will review the dividend policy from time to time and reserves its right in its sole and absolute discretion to update, amend, modify and/or cancel the dividend policy. There can be no assurance that dividends will be paid in any particular amount for any given period. The Board has recommended the payment of a interim dividend of RMB0.01 per share (tax inclusive) for the six months ended 30 June 2025 (for six months ended 30 June 2024: nil), which is calculated based on the total share capital of 3,684,640,154 shares for the six months ended 30 June 2025 totalling RMB36,846,401.54 (totalling RMB0 for six months ended 30 June 2024). Subject to the approval by Shareholders at the forthcoming extraordinary general meeting to be convened on 28 October 2025, the proposed interim dividend will be paid on 25 November 2025 to Shareholders whose names appear on the register of members of the Company on 11 November 2025 (“Record Date”). In order to ascertain the entitlements of the Shareholders to receive the proposed interim dividend, the register of members of the Company will be closed from Tuesday, 4 November 2025 to Tuesday, 11 November 2025 (both days inclusive), during which no transfer of shares will be registered. All transfer documents accompanied by share certificates of the Shareholders must be lodged with our H Share Registrar, Computershare Hong Kong Investor Services Limited at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong for registration no later than 4:30 p.m. on Monday, 3 November 2025. л ͦᅺf dԫึ ͉ eᐄ ̙ঐପ ྌf һอe ഒ࿁І˴ᛆ ೯Оत f ೯࿚Їɚཧɚʞϋʬ˜ɧɤ˚˟ʬ ɛ͏࿆ 0.01ʩ ў ࿚Їɚ ɛ͏࿆ 0ʩ d ͉ 3,684,640,154ɛ͏࿆36,846,401.54 ɛ͏࿆ 0ࣛ ʚɚཧɚʞϋɤɓ Τ̅ʘ f Τఊ d ͉ʮ̡ਗ਼ ಂɚ Їɚཧɚʞϋ ҈Շ˚ ᅲ ɚཧɚʞϋ ٰ ୃʹΫ͉ʮ̡ʘ H΅ཀ˒೮ Χ ؇183Υձʕː17ᅽ1712-1716⧕d፬ଣཀ ˒೮া˓ᚃf
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2025 中報 重慶機電股份有限公司 ࣘ OTHER INFORMATION 49 ה ͏ΆุΣྤ̮ Hٰ Ռ [2008]897ᛆ೮া˚Τΐ͉ʮ̡ HΤ̅ H؇ٰ dϞ່ਕ˾ϔ˾ᖮ 10% f ٙH͟ лਗ਼ ኽቇ͜ ϗτર νϞ ΣϞᗫਕዚᗫ͡ሗৗf࿁ ᛆ೮া˚Τΐ HΤ̅ʘІ್ɛ f ᛆ೮া˚೮াί HٙHٰ ؇ٰ ʿ͉ʮ f WITHHOLDING OF ENTERPRISE INCOME TAX FOR NON-RESIDENT CORPORATE SHAREHOLDERS Pursuant to the Enterprise Income Tax Law of the People’s Republic of China (“EIT Law”) and the implementation rules thereof and the Circular on Issues Concerning the Withholding of Enterprise Income Tax by PRC Resident Enterprises on Dividends Payable to H Share Non-resident Corporate Shareholders (Guo Shui Han [2008] No.897), the Company is liable to withhold and pay the enterprise income tax on dividends payable to non-resident corporate holders of H shares whose names appear on the register of holders of H shares of the Company (“H Share Register of Members”) on the Record Date at a rate of 10% prior to the payment of such interim dividends. Any H shares registered in the name of non-individual shareholders will be treated as being held by non-resident corporate shareholders and hence the dividends payable to them will be subject to the withholding of enterprise income tax. Non-resident corporate shareholders may apply to the relevant taxation authorities for tax refunds in accordance with the applicable tax treaty (if any). The interim dividends payable to natural person shareholders whose names appear on H Share Register of Members on the Record Date is not subject to the withholding of income tax by the Company. For interim dividends payable to resident corporate shareholders of H shares whose names appear on H Share Register of Members on the Record Date, the Company will not withhold enterprise income tax on such dividends, provided that a legal opinion is provided by a resident corporate shareholder within the prescribed period and confirmed by the Company.
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50 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ࣘ OTHER INFORMATION ОΤΐHίʕྤʫϓͭd ϓͭШྼყ၍ଣዚίʕ ࠑ10%ה ɧɤ ༺͉ʮ̡ Hಥʕ̯ᗇ ؇183Υձ ʕː17ᅽ1712-1716⧕ d ፬ଣཀ˒೮া˓ᚃя މ ʮ f ٙH΅ʘІ್ ה ᗫ HϞᛆᔷЇ ᗫ H ༺͉ ʮ̡H؇ٰ ਕᚥਪፔ༔ϞᗫኹϞʿஈໄ Hהٰ จԈf If any resident enterprise (as defined in the EIT Law) whose name appears on the H Share Register of Members which is duly incorporated in the PRC or under the laws of a foreign country (or a territory) but with a PRC-based de facto management body does not wish to have the 10% enterprise income tax to be withheld by the Company, it should lodge all transfers with and submit a legal opinion issued by a PRC certified lawyer (with affixation of common seal of the law firm thereto) that establishes its resident enterprise status to the Company’s H Share Registrars, Computershare Hong Kong Investor Services Limited at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong no later than 4:30 p.m. on 3 November 2025. Any natural person investor whose H shares are registered in the name of any such non-individual shareholders and who does not wish to have any enterprise income tax to be withheld by the Company may consider transferring the legal title of the relevant H shares into his or her own name and lodging all relevant transfer instruments accompanied by the H share certificates with the Company’s H Share Registrars for registration no later than 4:30 p.m. on 3 November 2025. Shareholders are recommended to consult their tax advisors regarding tax issues in respect of the ownership and disposal of H shares in the PRC and Hong Kong and other tax effects.
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2025 中報 重慶機電股份有限公司 ࣘ OTHER INFORMATION 51 ΅ཀ˒೮া˓ᚃ d ͉ ಂ̬ Їɚ ҈Շ˂ ΅ཀ˒೮া˓ᚃ f ሗਗ਼ ɚཧ ۃ ༺͉ʮ̡ Hಥʕ̯ᗇՎ೮ ؇183Υձʕː 17ᅽ1712-1716⧕d፬ଣཀ˒೮া˓ᚃf ึ ʿ͉ʮ ౷ஷΥྫ d ᄲ ึ d ᚣf CLOSURE OF REGISTER OF MEMBERS In order to ascertain the entitlements of the Shareholders to attend and vote in the extraordinary general meeting, the register of members of the Company will be closed from Thursday, 23 October 2025 to Tuesday, 28 October 2025 (both days inclusive), during which no transfer of shares will be registered. All transfers accompanied by the relevant share certificates must be lodged with the Company’s H Share Registrars, Computershare Hong Kong Investor Services Limited at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong not later than 4:30 p.m. on Wednesday, 22 October 2025. AUDIT AND RISK MANAGEMENT COMMITTEE The audit and risk management committee, the management and the Company’s auditor ShineWing Certified Public Accountants (Special General Partnership) have jointly reviewed the accounting standards adopted by the Company, laws and regulations and discussed internal control and financial reporting matters (including the review of the interim results) of the Group. The audit and risk management committee considered that the interim results are in compliance with the applicable accounting standards, laws and regulations, and the Company has made appropriate disclosures thereof.
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52 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ࣘ OTHER INFORMATION BOARD OF DIRECTORS AND SUPERVISORY COMMITTEE As at the date of this report, the executive directors of the Company are Mr. Yue Xiangjun, Mr. Qin Shaobo and Mr. Deng Rui; the non- executive directors are Mr. Lei Bin, Ms. Zhu Ying, Mr. Dou Bo and Mr. Cai Zhibin; and the independent non-executive directors are Mr. Ke Rui, Mr. Liu Lijun, Ms. Pu Huayan and Mr. Wong Chun Wa. As at the date of this report, the members of the supervisory committee of the Company are Mr. Sun Wenguang, Mr. Wang Haibing, Mr. Cao Xingquan, Mr. Duan Lian and Mr. Liu Daohua. The interim results announcement has been published on the website of the Company (http://www.chinacqme.com) and website of the HKEXnews of the Stock Exchange (www.hkexnews.hk). The interim report will also be available on the websites of the Company and the HKEXnews of the Stock Exchange on or around 10 September 2025 and will be despatched to the shareholders of the Company thereafter by the means of receipt of corporate communications they selected. By Order of the Board Chongqing Machinery & Electric Co., Ltd.* Mr. Yue Xiangjun Executive Director and General Manager (performing duties and powers of the chairman of the Board) Chongqing, the PRC 20 August 2025 * For identification purposes only ԫึʿ္ԫึ ͛ e ཤⅳ͛e ੂ ͛eႈശዲɾɻʿˮ ശ͛f ˖ᄿ ͛ʿᄎ༸ശ ͛f ͉ʮ̡ၣ१ (http://www.chinacqme.com)ၣ१ (www.hkexnews.hk)ɚཧɚʞϋ ၣ ˙όஈ f ԫึն ʮ̡ ੂБԫcᐼଣ ࠏ֪ ᔖᛆ ʕ •ᅅ ɚཧɚʞϋɞ˜ɚɤ˚ * සԶᗆй
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2025 中報 重慶機電股份有限公司 53 ᄲቡజѓ REVIEW REPORT ON INTERIM FINANCIAL INFORMATION ᄲቡజѓ XYZH/2025CQAA1B0502 ʮ̡ ʮ̡ԫึj ʮ̡ ˸ɨᔊ ܼ2025ϋ6˜30˚ d 2025ϋ1-6ΥԻ ձΥ ൗf ΅ʮ̡ ٙ ̈Ոᄲቡజѓf ୋ2101Ñৌ Ӌ щʔ ༔ਪ ҏ d Զ dΪϾʔ จԈf REVIEW REPORT XYZH/2025CQAA1B0502 Chongqing Machinery & Electric Co., Ltd To the board of directors of Chongqing Machinery & Electric Co., Ltd.: We have reviewed the accompanying financial statements of Chongqing Machinery & Electric Co., Ltd (the “Company”), which comprise the consolidated and the Company’s statement of financial position as at 30 June 2025, the consolidated and the Company’s statement of comprehensive income, the consolidated and the Company’s statement of cash flow and the consolidated and the Company’s statement of changes in equity for January-June 2025 and notes to financial statements. The management of the Company is responsible for fair presentation of these financial statements. Our responsibility is to issue our review report on these financial statements based on our review. We conducted our review in accordance with the “Review Standard for Chinese Certified Public Accountants No.2101-Review of Financial Statements”. The standard requires us to plan and conduct a review to obtain limited assurance as to whether financial statements are free from material misstatement. A review is primarily limited to inquire of company personnel and performing analytical procedures on financial data. A review provides less assurance than audit. We have not performed an audit and, accordingly, we do not express an audit opinion.
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ᄲቡజѓᚃ REVIEW REPORT ON INTERIM FINANCIAL INFORMATION (Continued) 54 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD จՑОԫධԴҢ Άุึ ΅ʮ̡ 2025ϋ6˜30˸ʿ 2025ϋ1-6 ඎf ShineWing Certified Public Accountants LLP CICPA: j CICPA: j China, Beijing 20 August 2025 ʕ • ̏ԯ ɚ´ɚʞϋɞ˜ɚɤ˚ Based on our review, nothing has come to our attention that causes us to believe that the financial statements do not present fairly, in all material respects, the consolidated and the Company’s financial position as at 30 June 2025, the consolidated and the Company’s results of operations and cash flows for six-month period then ended in accordance with Accounting Standards for Business Enterprises.
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ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 2025 中報 重慶機電股份有限公司 55 ڌ INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION ൗ 30/6/2025 31/12/2024 ධͦ Items Notes 30 June 2025 31 December 2024 (As restated) ਗ༟ପj Current assets ږCash and cash equivalents ʞe1 V.1 2,422,827,984.09 2,744,890,888.34 ፄ༟ପ Financial assets held for trade ʞe2 V.2 631,346,485.52 571,813,953.57 Ꮠϗୃኽ Notes receivable ʞe3 V.3 173,063,254.42 214,166,733.38 Ꮠϗሪಛ Accounts receivable ʞe4 V.4 4,269,403,218.44 3,353,221,618.15 Ꮠϗಛධፄ༟ Receivable financing ʞe6 V.6 552,279,765.06 635,619,888.90 ཫ˹ಛධ Prepayments ʞe7 V.7 197,676,510.82 187,576,858.21 Չ˼Ꮠϗಛ Other receivables ʞe8 V.8 375,196,522.60 438,631,705.26 л Including: Dividends receivable ʞe8.1 V.8.1 218,980,014.96 288,932,461.02 ൲ಛձྦಛ Loans and advances to customers ʞe12.1 V.12.1 468,964,281.73 375,714,067.65 π Inventories ʞe9 V.9 2,175,108,889.88 1,890,769,371.53 ΥΝ༟ପ Contract assets ʞe5 V.5 979,995,495.03 862,088,748.62 ਗ༟ପ Non-current assets due within one year ʞe10 V.10 18,330,399.68 17,998,806.45 ਗ༟ପ Other current assets ʞe11 V.11 32,992,385.75 22,146,100.99 ࠇTotal current assets 12,297,185,193.02 11,314,638,741.05 ਗ༟ପj Non-current assets ൲ಛձྦಛ Loans and advances to customers ʞe12.2 V.12.2 483,930,666.66 493,116,088.78 Չ˼වᛆҳ༟ Other debt investments ʞe14 V.14 32,422,242.33 – ಂᏐϗಛ Long-term receivables ʞe15 V.15 – 8,999,403.23 ᛆҳ༟ Long-term equity investments ʞe16 V.16 1,736,213,942.47 1,573,555,281.47 Չ˼ᛆूʈՈҳ༟ Other equity instruments investment ʞe13 V.13 177,599,858.68 164,319,503.68 ήପ Investment properties ʞe17 V.17 190,304,738.70 190,832,462.77 ༟ପ Property, plant and equipment ʞe18 V.18 2,604,067,092.08 2,598,427,309.26 ʈ Construction in progress ʞe19 V.19 113,769,282.72 125,535,386.16 Դ͜ᛆ༟ପ Right-of-use assets ʞe20 V.20 400,335,921.36 381,607,675.93 ೌҖ༟ପ Intangible assets ʞe21 V.21 411,403,293.90 415,060,747.34 ක೯˕̈ Development expenditures ʞe22 V.22 1,771,698.11 5,001,525.86 ਠᚑ Goodwill ʞe23 V.23 57,571,170.83 75,422,670.83 ᛅ൬͜ Long-term deferred expenses ʞe24 V.24 33,012,714.86 24,605,657.15 ༟ପ Deferred tax assets ʞe25 V.25 175,217,896.10 168,925,380.33 ਗ༟ପ Other non-current assets ʞe26 V.26 117,841,416.68 146,709,428.69 ࠇTotal non-current assets 6,535,461,935.48 6,372,118,521.48 ࠇTotal assets 18,832,647,128.50 17,686,757,262.53
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ᚃ INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued) ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 56 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ൗ 30/6/2025 31/12/2024 ධͦ Items Notes 30 June 2025 31 December 2024 (As restated) වj Current liabilities ಛ Short-term loans ʞe28 V.28 573,077,585.63 416,935,361.78 ׳Due to customers, banks and other financial institutions ʞe29 V.29 1,109,114,982.10 816,169,265.81 Ꮠ˹ୃኽ Notes payable ʞe30 V.30 1,618,083,927.18 1,451,609,682.01 Ꮠ˹੮ಛ Accounts payable ʞe31 V.31 3,077,235,713.26 2,729,113,660.66 ཫϗಛධ Advance from customers ʞe32 V.32 60,218.64 – ව Contract liabilities ʞe34 V.34 624,043,926.74 605,086,641.54 Ꮠ˹ᔖʈᑚཇ Employee benefits payables ʞe35 V.35 72,107,396.41 124,539,482.40 Ꮠʹ൬ Taxes and levies payables ʞe36 V.36 104,785,936.67 110,776,922.56 Չ˼Ꮠ˹ಛ Other payables ʞe33 V.33 590,581,040.37 394,896,077.03 л Including: Dividends payable ʞe33.1 V.33.1 159,373,353.67 44,010,810.13 ව Non-current liabilities due within one year ʞe37 V.37 944,285,177.10 723,590,380.09 ව Other current liabilities ʞe38 V.38 81,690,015.68 49,959,782.98 ࠇTotal current liabilities 8,795,065,919.78 7,422,677,256.86 වj Non-current liabilities ಛ Long-term loans ʞe39 V.39 620,871,316.66 1,081,259,202.78 ව Lease liabilities ʞe40 V.40 195,490,202.36 190,502,425.32 ಂᏐ˹ಛ Long-term payables ʞe41 V.41 3,112,936.00 3,893,230.00 ಂᏐ˹ᔖʈᑚཇ Long-term employee benefits payable ʞe42 V.42 5,559,526.87 5,256,000.00 ව Provisions ʞe43 V.43 66,073,496.86 73,980,194.67 ϗू Deferred revenue ʞe44 V.44 152,117,702.61 187,006,166.10 ව Deferred tax liabilities ʞe25 V.25 108,988,192.49 103,800,349.28 ࠇTotal non-current liabilities 1,152,213,373.85 1,645,697,568.15 ࠇTotal liabilities 9,947,279,293.63 9,068,374,825.01 ᛆूj Shareholder’s equity ͉ Share capital ʞe45 V.45 3,684,640,154.00 3,684,640,154.00 ༟͉ʮጐ Capital reserves ʞe46 V.46 71,477,815.41 99,207,782.69 Չ˼ၝΥϗू Other comprehensive income ʞe47 V.47 82,071,779.83 78,089,477.42 ਖ਼ධᎷ௪ Special Reserve ʞe49 V.49 12,628,461.20 5,635,596.35 ቱʮጐ Surplus reserves ʞe48 V.48 552,310,263.81 515,265,278.90 ͊ʱৣлᆗ Undistributed profit ʞe50 V.50 3,968,988,616.92 3,719,023,999.29 ࠇTotal equity attributable to shareholders of the Company 8,372,117,091.17 8,101,862,288.65 ᛆू Non-controlling interests 513,250,743.70 516,520,148.87 ࠇTotal shareholder’s equity 8,885,367,834.87 8,618,382,437.52 ࠇTotal liabilities and shareholder’s equity 18,832,647,128.50 17,686,757,262.53 Legal Representative: Person in charge of accounting function: Person in charge of accounting department: பɛj
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ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 2025 中報 重慶機電股份有限公司 57 ڌ FINANCIAL POSITION STATEMENT OF THE COMPANY ൗ 30/6/2025 31/12/2024 ධͦ Items Notes 30 June 2025 31 December 2024 ਗ༟ପj Current assets: ږCash and cash equivalents 1,184,512,775.22 1,080,848,826.94 Ꮠϗୃኽ Notes receivable 445,870.30 4,865,000.00 Ꮠϗሪಛ Accounts receivable 3,973,823.97 4,492,301.05 ཫ˹ಛධ Prepayments 111,744.27 99,550.64 Չ˼Ꮠϗಛ Other receivables ɤɖe1 XVII.1 347,589,217.56 443,225,062.75 л Including: Dividends receivable ɤɖe1.1 XVII.1.1 278,980,014.96 330,447,825.54 ਗ༟ପ Non-current assets due within one year 1,192,488,091.03 269,683,373.51 ਗ༟ପ Other current assets 4,363,283.03 3,341,922.04 ࠇTotal current assets 2,733,484,805.38 1,806,556,036.93 ਗ༟ପj Non-current assets: ಂᏐϗಛ Long-term receivables – 906,922,355.41 ᛆҳ༟ Long-term equity investments ɤɖe2 XVII.2 6,006,759,431.54 5,687,418,480.93 Չ˼ᛆूʈՈҳ༟ Other equity instruments investment 176,172,975.00 162,892,620.00 ήପ Investment properties 104,139,254.40 105,881,680.35 ༟ପ Property, plant and equipment 558,177,301.63 239,556,087.82 ʈ Construction in progress 17,962,255.69 8,540,391.03 Դ͜ᛆ༟ପ Right-to-use assets 2,039,414.74 4,078,829.49 ೌҖ༟ପ Intangible assets 149,459,319.22 97,395,363.83 ༟ପ Deferred tax assets 509,853.69 1,019,707.37 ࠇTotal non-current assets 7,015,219,805.91 7,213,705,516.23 ࠇTotal assets 9,748,704,611.29 9,020,261,553.16
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ᚃ FINANCIAL POSITION STATEMENT OF THE COMPANY (Continued) ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 58 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ൗ 30/6/2025 31/12/2024 ධͦ Items Notes 30 June 2025 31 December 2024 වj Current liabilities ಛ Short-term loans 185,109,013.89 50,230,555.56 Ꮠ˹੮ಛ Accounts payable 19,229,963.39 14,023,411.72 ཫϗಛධ Advance from customers 60,218.64 – ව Contract liabilities – 52,390.22 Ꮠ˹ᔖʈᑚཇ Employee benefits payables 7,914,527.63 5,448,026.31 Ꮠʹ൬ Taxes and levies payables 125,158.39 275,746.82 Չ˼Ꮠ˹ಛ Other payables 569,208,339.70 41,267,413.17 л Including: Dividends payable 128,962,405.39 – ව Non-current liabilities due within one year 823,416,706.60 572,623,429.28 ව Other current liabilities – 7,828.42 ࠇTotal current liabilities 1,605,063,928.24 683,928,801.50 වj Non-current liabilities ಛ Long-term loans 620,871,316.66 1,066,241,077.78 ව Deferred tax liabilities 41,246,882.19 38,436,647.12 ࠇTotal non-current liabilities 662,118,198.85 1,104,677,724.90 ࠇTotal liabilities 2,267,182,127.09 1,788,606,526.40 ᛆूj Shareholder’s equity ͉ Share capital 3,684,640,154.00 3,684,640,154.00 Չ˼ၝΥϗू Other comprehensive income 97,641,723.30 87,681,457.05 ቱʮጐ Surplus reserves 566,685,639.72 529,640,654.81 ͊ʱৣлᆗ Undistributed profit 3,132,554,967.18 2,929,692,760.90 ࠇTotal shareholder’s equity 7,481,522,484.20 7,231,655,026.76 ࠇTotal liabilities and shareholder ’s equity 9,748,704,611.29 9,020,261,553.16 Legal Representative Person in charge of accounting function: Person in charge of accounting department: பɛj
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ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 2025 中報 重慶機電股份有限公司 59 ڌ INTERIM CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT ൗ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Notes From January- June, 2025 From January- June, 2024 (As restated) ɓeᐄุᐼϗɝ 1. Total operating revenue ʞe51 V.51 4,658,076,541.58 4,265,890,940.36 Չʕjᐄุϗɝ Including: Operating revenue ʞe51 V.51 4,629,878,065.33 4,240,323,409.63 ϗɝ Interest income ʞe51 V.51 28,180,430.93 25,563,828.14 ϗɝ Transaction fees and commission income ʞe51 V.51 18,045.32 3,702.59 ɚeᐄุᐼϓ͉ 2. Total operating cost 4,570,904,795.95 4,241,712,079.65 Չʕjᐄุϓ͉ Including: Operating cost ʞe51 V.51 3,851,826,723.54 3,538,665,526.98 ˕̈ Interest expenses ʞe51 V.51 6,397,112.04 2,804,691.84 ˕̈ Transaction cost and commission fees ʞe51 V.51 101,920.42 73,441.71 ̋ Business taxes and surcharges ʞe52 V.52 30,244,717.29 33,424,647.82 ቖਯ൬͜ Selling and distribution expenses ʞe53 V.53 107,982,425.45 100,480,688.18 ၍ଣ൬͜ Administrative expenses ʞe54 V.54 305,461,251.71 322,285,862.75 ೯൬͜ Research and development expenses ʞe55 V.55 239,851,334.25 198,395,448.00 ৌਕ൬͜ Financial expenses ʞe56 V.56 29,039,311.25 45,581,772.37 ൬͜ Including: Interest expenses ʞe56 V.56 29,918,280.46 40,656,683.42 ϗɝ Interest income ʞe56 V.56 6,990,940.29 8,634,304.92 ̋jՉ˼ϗू Add: Other income ʞe57 V.57 54,225,731.41 89,284,316.61 ҳ༟ϗू ฦ̰˸ Ñ ෬ΐ Investment income (Loss listed with “-”) ʞe58 V.58 398,084,565.41 281,741,736.33 ٙ ҳ༟ϗू Including: Income from investments in associates and joint ventures ʞe58 V.58 389,133,395.15 285,368,786.74 ᜊਗϗू ฦ̰˸ Ñ ෬ΐ Gain arising from the changes in fair value (Loss listed with “-”) ʞe59 V.59 -4,498,257.68 5,997,041.06 ฦ̰ ฦ̰˸ - ෬ΐ Impairment loss of credit (Loss is listed by “-”) ʞe60 V.60 -36,112,951.56 -2,438,925.61 ฦ̰ ฦ̰˸ - ෬ΐ Impairment loss of assets (Loss is listed by “-”) ʞe61 V.61 -55,952,735.70 -7,306,247.75 ༟ପஈໄϗू ฦ̰˸ - ෬ΐ Gain on disposal of assets (Loss listed with “-”) ʞe62 V.62 8,529,202.73 -59,400,276.22 ɧeᐄุлᆗ ᑦฦ˸ Ñ ෬ΐ 3. Operating profit (Loss listed with “-”) 451,447,300.24 332,056,505.13 ̋jᐄุ̮ϗɝ Add: Non-operating income ʞe63 V.63 4,523,436.88 9,258,394.32 ಯjᐄุ̮˕̈ Less: Non-operating expenses ʞe64 V.64 2,768,269.77 2,902,980.82 ̬eлᆗᐼᕘ ᑦฦᐼᕘ˸ Ñ ෬ΐ 4. Total profit (Total loss listed with “-”) 453,202,467.35 338,411,918.63 ൬͜ Less: Income tax expenses ʞe65 V.65 22,582,816.10 48,006,569.55 ʞeଋлᆗ ଋᑦฦ˸ Ñ ෬ΐ 5. Net profit (Net loss listed with “-”) 430,619,651.25 290,405,349.08 ʱᗳ (1) Classification by continuing or discontinued operation 430,619,651.25 290,405,349.08 1.ᚃᐄଋлᆗ ଋᑦฦ˸ - ෬ΐ 1. Net profit attributable to continuing operation (Net loss listed with “-”) 430,619,651.25 290,405,349.08 2.˟ᐄଋлᆗ ଋᑦฦ˸ - ෬ΐ 2. Net profit attributable to discontinued operation (Net loss listed with “-”) – – Ϟᛆᓥ᙮ʱᗳ (2) Classification by ownership 430,619,651.25 290,405,349.08 1.ଋлᆗ 1. Net profit attributable to shareholders of the controlling company 415,972,007.93 270,407,916.25 2.ฦू 2. Net profit attributable to non-controlling interests 14,647,643.32 19,997,432.83
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ᚃ INTERIM CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT (Continued) ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 60 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ൗ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Notes From January- June, 2025 From January- June, 2024 (As restated) ଋᕘ 6. Net other comprehensive income after tax ʞe47 V.47 5,609,353.73 -15,791,572.53 ٙ ଋᕘ Net other comprehensive income after tax attributable to shareholders of the Company ʞe47 V.47 3,982,302.41 -16,132,785.48 Չ˼ၝΥϗू (1). Other comprehensive incomes that cannot be reclassified into profit or loss ʞe47 V.47 9,960,266.25 -5,513,062.50 Չ˼ၝΥϗू (2). Other comprehensive income that can be reclassified into profit or loss ʞe47 V.47 -5,977,963.84 -10,619,722.98 1.ᜊਗ 1. Fair value changes of other debt investments ʞe47 V.47 34,513.65 – 2.ɝՉ˼ၝΥ ᕘ 2. Amount of financial assets reclassified to other comprehensive income ʞe47 V.47 -463,702.66 – 3.ʱ 3. Effective part of cash flow hedging ʞe47 V.47 8,141,277.75 971,144.55 4.ᕘ 4. Translation differences of financial statements in foreign currencies ʞe47 V.47 -13,690,052.58 -11,590,867.53 ٙ ଋᕘ Net other comprehensive income after tax attributable to non-controlling interests ʞe47 V.47 1,627,051.32 341,212.95 ɖeၝΥϗूᐼᕘ 7. Total comprehensive income 436,229,004.98 274,613,776.55 ၝΥϗूᐼᕘ 1. Total comprehensive income attributable to shareholders of the Company 419,954,310.34 254,275,130.77 ၝΥϗूᐼᕘ 2. Total comprehensive income attributable to non-controlling interests 16,274,694.64 20,338,645.78 ϗूj 8. Earnings per share 1. Basic earnings per share 0.11 0.07 ϗू ʩ/ 2. Diluted earnings per share 0.11 0.07 Legal Representative Person in charge of accounting function: Person in charge of accounting department: ɛj பɛj பɛj
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ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 2025 中報 重慶機電股份有限公司 61 ڌ INCOME STATEMENT OF THE COMPANY ൗ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Notes From January- June, 2025 From January- June, 2024 ɓeᐄุϗɝ 1. Operating revenue ɤɖe3 XVII.3 7,138,439.21 4,168,227.86 ಯjᐄุϓ͉ Less: operating cost ɤɖe3 XVII.3 573,529.41 – ̋ Business taxes and surcharges 4,086,583.20 2,373,869.07 ቖਯ൬͜ Selling and distribution expenses 901,379.96 – ၍ଣ൬͜ Administrative expenses 49,687,425.17 38,260,913.04 ೯൬͜ Research and development expenses – 16,685,159.93 ৌਕ൬͜ Financial expenses 454,915.89 5,833,188.67 ൬͜ Including: Interest expenses 16,808,625.55 24,232,302.48 ϗɝ Interest income 15,112,615.33 18,863,654.43 ̋jՉ˼ϗू Add: Other income 15,906.56 25,608.21 ҳ༟ϗू ฦ̰˸ Ñ ෬ΐ Investment income (Loss listed with “-”) ɤɖe4 XVII.4 444,362,575.29 592,849,927.03 ٙ ҳ༟ϗू Including: Income from investments in associates and joint ventures ɤɖe4 XVII.4 384,353,682.47 284,127,804.28 ฦ̰ ฦ̰˸ Ñ ෬ΐ Impairment loss of credit (Loss is listed by “-”) 135,000.00 – ฦ̰ ฦ̰˸ Ñ ෬ΐ Impairment loss of assets” (Loss is listed by “-”) -26,381,091.72 – ༟ପஈໄϗू ฦ̰˸ Ñ ෬ΐ Gain on disposal of assets (Loss listed with “-”) -655,424.30 -200,035.80 ɚeᐄุлᆗ ᑦฦ˸ Ñ ෬ΐ 2. Operating profit (Loss listed with “-”) 368,911,571.41 533,690,596.59 ̋jᐄุ̮ϗɝ Add: Non-operating income 9,687.35 – ಯjᐄุ̮˕̈ Less: Non-operating expenses – – ɧeлᆗᐼᕘ ᑦฦᐼᕘ˸ Ñ ෬ΐ 3. Total profit (Loss listed with “-”) 368,921,258.76 533,690,596.59 ൬͜ Less: Income tax expenses 51,662.18 84,852.20 ̬eଋлᆗ ଋᑦฦ˸ Ñ ෬ΐ 4. Net profit (Net loss listed with “-”) 368,869,596.58 533,605,744.39 ᚃᐄଋлᆗ ଋᑦฦ˸ - ෬ΐ (1) Net profit attributable to continuing operation (Net loss listed with “-”) 368,869,596.58 533,605,744.39 ɚ ˟ᐄଋлᆗ ଋᑦฦ˸ - ෬ΐ (2) Net profit attributable to discontinued operation (Net loss listed with “-”) – – ଋᕘ 5. Net other comprehensive income after tax 9,960,266.25 -5,513,062.50 Չ˼ၝΥϗू 1. Other comprehensive incomes that cannot be reclassified into profit or loss 9,960,266.25 -5,513,062.50 1.ᜊਗ 1. Changes in fair value of other equity instrument investments 9,960,266.25 -5,513,062.50 Չ˼ၝΥϗू 2. Other comprehensive income that can be reclassified into profit or loss – – 1.ʱ 1. Effective portion of net investment hedging gains and losses – – 2.ᕘ 2. Translation differences of financial statements in foreign currencies – – ʬeၝΥϗूᐼᕘ 6. Total comprehensive income 378,829,862.83 528,092,681.89 Legal Representative: Person in charge of accounting function: Person in charge of accounting department: ɛj பɛj பɛj
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ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 62 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ڌ INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS ൗ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Notes From January- June, 2025 From January- June, 2024 (As restated) ݴږ1. Cash flows from operating activities ږCash received from sales of goods and rendering of services 3,462,914,025.04 3,787,649,930.58 ಛධଋᄣ̋ᕘ Net increase in customer deposits and interbank deposits 292,500,268.61 -251,135,183.61 ږCash received from interest, surcharges and commission fee 29,999,948.73 27,188,512.65 ᒔ Cash received from tax refund 14,454,534.79 15,895,094.82 ږCash received relating to other operating activities 231,995,241.94 489,722,378.73 ࠇSub-total of cash inflows from operating activities 4,031,864,019.11 4,069,320,733.17 ږCash paid for goods and services 3,346,699,988.67 3,257,945,858.86 ˒൲ಛʿྦಛଋᄣ̋ᕘ Net increase in loans and advances to customers 81,785,806.01 -177,574,697.67 ʕ̯ვБձΝุಛධଋᄣ̋ᕘ Net increase in central bank and interbank payments 3,078,625.18 -26,058,315.87 ږCash paid for interest, surcharges and commission fee 6,335,491.08 2,539,618.39 ږCash paid to and on behalf of employees 581,277,925.89 553,557,545.62 ධ൬ Payments of taxes and surcharges 157,190,025.52 138,752,760.10 ږCash paid relating to other operating activities 372,159,745.49 571,915,460.47 ࠇSub-total of cash outflows from operating activities 4,548,527,607.84 4,321,078,229.90 ඎଋᕘ Net cash flows from operating activities -516,663,588.73 -251,757,496.73 ඎj 2. Cash flows from investment activities ږCash received from return of investments 896,739,674.64 683,117,615.42 ږCash received from investments income 321,715,798.66 172,936,031.70 ༟ପeೌҖ༟ପձՉ˼ ଋᕘ Net cash received from disposal of fixed assets, intangible assets and other long-term assets 6,181,726.64 103,334,614.41 ږCash received relating to other investing activities 8,764,287.76 28,563,927.68 ࠇSub-total of cash inflows from investing activities 1,233,401,487.70 987,952,189.21 ༟ପeೌҖ༟ପձՉ˼ ږ Cash paid to acquire fixed assets, intangible assets and other long-term assets 86,702,944.97 94,800,785.73 ږCash paid for investments 984,973,068.82 1,013,806,186.60 ږCash paid relating to other investing activities 10,257,439.56 – ࠇSub-total of cash outflow from investing activities 1,081,933,453.35 1,108,606,972.33 ඎଋᕘ Net cash flows from investing activities 151,468,034.35 -120,654,783.12
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ᚃ INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Continued) ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 2025 中報 重慶機電股份有限公司 63 ൗ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Notes From January- June, 2025 From January- June, 2024 (As restated) ඎj 3. Cash flows from financing activities ږCash received from investments – – ҳ༟ ږ Including: cash received by subsidiaries from investment of non-controlling interests – – ږCash received from loans granted 732,919,522.23 445,762,905.60 ږ ږCash received relating to other financing activities – 2,335,000.00 ࠇSub-total of cash inflows from financing activities 732,919,522.23 448,097,905.60 ږCash paid for repayment of borrowings 603,899,681.47 774,733,019.47 ږCash paid for dividends, profits or payments of interests 55,245,798.16 60,860,435.35 ٙ؇ٰ лeлᆗ Including: dividends and profits paid to non- controlling interests by subsidiaries 15,923,582.24 21,167,733.68 ږCash paid relating to other financing activities 7,775,761.60 44,189,875.14 ࠇSub-total of cash outflows from financing activities 666,921,241.23 879,783,329.96 ඎଋᕘ Net cash flows from financing activities 65,998,281.00 -431,685,424.36 ᅂᚤ 4. Effects of changes in exchange rate on cash and cash equivalents 1,326,354.19 492,315.65 ଋᄣ̋ᕘ 5. Net increase in cash and cash equivalents -297,870,919.19 -803,605,388.56 ቱᕘ Add: opening balance of cash and cash equivalents 2,101,118,496.96 2,181,689,713.81 ቱᕘ 6. Balance of cash and cash equivalents at the end of this period ʞe 67(2) Ve 67(2) 1,803,247,577.77 1,378,084,325.25 Legal Representative Person in charge of accounting function: Person in charge of accounting department: ɛj பɛj பɛj
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ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 64 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ڌ CASH FLOWS STATEMENT OF THE COMPANY ൗ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Notes From January- June, 2025 From January- June, 2024 ඎj 1. Cash flows from operating activities ږCash received from sales of goods and rendering of services 2,317,723.38 – ᒔ Cash received from tax refund -49,793.44 27,144.70 ږCash received relating to other operating activities 53,053,945.16 13,570,548.14 ࠇSub-total of cash inflows from operating activities 55,321,875.10 13,597,692.84 ږCash paid for goods and services 566,509.41 – ږCash paid to and on behalf of employees 12,232,744.25 10,509,291.88 ධ൬ Payments of taxes and surcharges 3,517,732.83 2,373,869.07 ږCash paid relating to other operating activities 54,084,655.63 15,219,816.08 ࠇSub-total of cash outflows from operating activities 70,401,642.12 28,102,977.03 ඎଋᕘ Net cash flows from operating activities -15,079,767.02 -14,505,284.19 ඎj 2. Cash flows from investment activities ږCash received from return of investments – – ږCash received from obtaining investment returns 358,637,935.26 280,111,817.85 ಂ༟ପ ଋᕘ Net cash received from disposal of fixed assets, intangible assets and other long-term assets – – ږCash received relating to other investing activities 129,571,680.82 221,150,702.35 ࠇSub-total of cash inflows from investing activities 488,209,616.08 501,262,520.20 ಂ༟ପ ږ Cash paid to acquire fixed assets, intangible assets and other long-term assets 894,339.62 412,732.89 ږCash paid for investments 200,000,000.00 103,750,000.00 ږCash paid relating to other investing activities 107,127,282.00 384,773,208.28 ࠇSub-total of cash outflow from investing activities 308,021,621.62 488,935,941.17 ඎଋᕘ Net cash flows from investing activities 180,187,994.46 12,326,579.03
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ᚃ CASH FLOWS STATEMENT OF THE COMPANY (Continued) ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 2025 中報 重慶機電股份有限公司 65 ൗ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Notes From January- June, 2025 From January- June, 2024 ඎj 3. Cash flows from financing activities ږCash received from loans granted 400,000,000.00 50,000,000.00 ږCash received relating to other financing activities – – ࠇSub-total of cash inflows from financing activities 400,000,000.00 50,000,000.00 ږCash paid for repayment of borrowings 448,400,000.00 338,700,000.00 ږCash paid for dividends, profits or payments of interests 14,341,541.12 22,984,331.66 ږCash paid relating to other financing activities 24,976,039.98 1,481,746.80 ࠇSub-total of cash outflows from financing activities 487,717,581.10 363,166,078.46 ඎଋᕘ Net cash flows from financing activities -87,717,581.10 -313,166,078.46 ᅂᚤ 4. Effects of changes in exchange rate on cash and cash equivalents 1,297,261.96 3,461.87 ଋᄣ̋ᕘ 5. Net increase in cash and cash equivalents 78,687,908.30 -315,341,321.75 ቱᕘ Add: opening balance of cash and cash equivalents 880,834,203.18 1,338,979,037.28 ቱᕘ 6. Balance of cash and cash equivalents at the end of this period 959,522,111.48 1,023,637,715.53 Legal Representative Person in charge of accounting function: Person in charge of accounting department: ɛj பɛj பɛj
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ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 66 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ڌ INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 2025ϋ1-6˜ From January-June, 2025 ᛆू Equity attributable to the equity holders of the controlling Company ධͦ Items ͉ Share capital Չ˼ᛆूʈՈ ༟͉ʮጐ Capital reserves ٰ Less: treasury shares Չ˼ၝΥϗू Other comprehensive income ਖ਼ධᎷ௪ Special reserves ቱʮጐ Surplus reserves ᎈ௪ General risk provision ͊ʱৣлᆗ Retained profits ᛆू Non- controlling interests ࠇ Total equity Other equity instruments ٰ Preferred shares ͑ᚃව Perpetual bond Չ˼ Others ɓe2024ϋ12˜31˚ቱᕘ 1. Balance at 31 December 2024 3,684,640,154.00 – – – 59,627,880.07 – 78,089,477.42 5,149,959.17 515,265,278.90 – 3,726,134,583.84 516,520,148.87 8,585,427,482.27 ഄᜊһ Add: Changes in accounting policies – – – – – – – – – – – – – ፹һ͍ Correction of prior-period errors – – – – – – – – – – – – – ΝɓછՓɨΆุΥԻ Business combination under common control – – – – 39,579,902.62 – – 485,637.18 – – -7,110,584.55 – 32,954,955.25 Չ˼ Others – – – – – – – – – – – – – ɚe2025ϋ1˜1 2. Balance at 1 January 2025 (As restated) 3,684,640,154.00 – – – 99,207,782.69 – 78,089,477.42 5,635,596.35 515,265,278.90 – 3,719,023,999.29 516,520,148.87 8,618,382,437.52 ᕘ ಯˇ˸ Ñ ෬ΐ 3. Increase/Decrease for the period (Decrease listed with “-”) – – – – -27,729,967.28 – 3,982,302.41 6,992,864.85 37,044,984.91 – 249,964,617.63 -3,269,405.17 266,985,397.35 ɓ ၝΥϗूᐼᕘ (1) Total comprehensive income – – – – – – 3,982,302.41 – – – 415,972,007.93 16,274,694.64 436,229,004.98 ҳɝձಯˇ༟͉ (2) Capital contribution and reduction from shareholders – – – – -27,729,967.28 – – – – – – 13,757,958.80 -13,972,008.48 1.ٰ1. Common stock capital contribution from shareholders – – – – – – – – – – – – – 2.٫ ҳɝ༟͉ 2. Capital contribution from holders of other equity instruments – – – – – – – – – – – – – 3.؇ٰ ᕘ 3. Equity increase from Share- based payments – – – – – – – – – – – – – 4.Չ˼ 4. Others – – – – -27,729,967.28 – – – – – – 13,757,958.80 -13,972,008.48 ɧ лᆗʱৣ (3) Profit appropriations – – – – – – – – 37,044,984.91 – -166,007,390.30 -2,398,592.44 -131,360,997.83 1.ቱʮጐ 1. Appropriation to statutory reserve – – – – – – – – 37,044,984.91 – -37,044,984.91 – – 2.՟ᔖʈᆤᎸʿ ږ 2. Appropriation to staff bonus and welfare – – – – – – – – – – – – – 3.ʱৣ 3. Appropriation to shareholders – – – – – – – – – – -128,962,405.39 -2,398,592.44 -131,360,997.83 4.Չ˼ 4. Others – – – – – – – – – – – – – ᛆूʫഐᔷ (4) Transfer – – – – – – – – – – – – – 1.͉ 1. Transfer of capital reserves to share capital – – – – – – – – – – – – – 2.͉ 2. Transfer of surplus reserves to share capital – – – – – – – – – – – – – 3.ቱʮጐᏎᑦฦ 3. Surplus reserves transfer to make up for losses – – – – – – – – – – – – – 4.Չ˼ၝΥϗूഐᔷ वπϗू 4. Transfer other comprehensive income to retained earnings – – – – – – – – – – – – – 5.Չ˼ 5. Others – – – – – – – – – – – – – ʞ ਖ਼ධᎷ௪ (5) Special reserves – – – – – – – 6,992,864.85 – – – 83,828.11 7,076,692.96 1.͉ϋ՟ 1. Appropriation – – – – – – – 45,547,586.36 – – – 182,358.06 45,729,944.42 2.͉ϋԴ͜ 2. Used – – – – – – – 38,554,721.51 – – – 98,529.95 38,653,251.46 ʬ Չ˼ (6) Others – – – – – – – – – – – -30,987,294.28 -30,987,294.28 ̬e2025ϋ6˜30˚ቱᕘ 4. Balance at 30 June 2025 3,684,640,154.00 – – – 71,477,815.41 – 82,071,779.83 12,628,461.20 552,310,263.81 – 3,968,988,616.92 513,250,743.70 8,885,367,834.87
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ᚃ INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued) ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 2025 中報 重慶機電股份有限公司 67 2025ϋ1-6˜ From January-June, 2025 ᛆू Equity attributable to the equity holders of the controlling Company ධͦ Items ͉ Share capital Չ˼ᛆूʈՈ ༟͉ʮጐ Capital reserves ٰ Less: treasury shares Չ˼ၝΥϗू Other comprehensive income ਖ਼ධᎷ௪ Special reserves ቱʮጐ Surplus reserves ᎈ௪ General risk provision ͊ʱৣлᆗ Retained profits ᛆू Non- controlling interests ࠇ Total equity Other equity instruments ٰ Preferred shares ͑ᚃව Perpetual bond Չ˼ Others ɓe2024ϋ12˜31˚ቱᕘ 1. Balance at 31 December 2024 3,684,640,154.00 – – – 59,627,880.07 – 78,089,477.42 5,149,959.17 515,265,278.90 – 3,726,134,583.84 516,520,148.87 8,585,427,482.27 ഄᜊһ Add: Changes in accounting policies – – – – – – – – – – – – – ፹һ͍ Correction of prior-period errors – – – – – – – – – – – – – ΝɓછՓɨΆุΥԻ Business combination under common control – – – – 39,579,902.62 – – 485,637.18 – – -7,110,584.55 – 32,954,955.25 Չ˼ Others – – – – – – – – – – – – – ɚe2025ϋ1˜1 2. Balance at 1 January 2025 (As restated) 3,684,640,154.00 – – – 99,207,782.69 – 78,089,477.42 5,635,596.35 515,265,278.90 – 3,719,023,999.29 516,520,148.87 8,618,382,437.52 ᕘ ಯˇ˸ Ñ ෬ΐ 3. Increase/Decrease for the period (Decrease listed with “-”) – – – – -27,729,967.28 – 3,982,302.41 6,992,864.85 37,044,984.91 – 249,964,617.63 -3,269,405.17 266,985,397.35 ɓ ၝΥϗूᐼᕘ (1) Total comprehensive income – – – – – – 3,982,302.41 – – – 415,972,007.93 16,274,694.64 436,229,004.98 ҳɝձಯˇ༟͉ (2) Capital contribution and reduction from shareholders – – – – -27,729,967.28 – – – – – – 13,757,958.80 -13,972,008.48 1.ٰ1. Common stock capital contribution from shareholders – – – – – – – – – – – – – 2.٫ ҳɝ༟͉ 2. Capital contribution from holders of other equity instruments – – – – – – – – – – – – – 3.؇ٰ ᕘ 3. Equity increase from Share- based payments – – – – – – – – – – – – – 4.Չ˼ 4. Others – – – – -27,729,967.28 – – – – – – 13,757,958.80 -13,972,008.48 ɧ лᆗʱৣ (3) Profit appropriations – – – – – – – – 37,044,984.91 – -166,007,390.30 -2,398,592.44 -131,360,997.83 1.ቱʮጐ 1. Appropriation to statutory reserve – – – – – – – – 37,044,984.91 – -37,044,984.91 – – 2.՟ᔖʈᆤᎸʿ ږ 2. Appropriation to staff bonus and welfare – – – – – – – – – – – – – 3.ʱৣ 3. Appropriation to shareholders – – – – – – – – – – -128,962,405.39 -2,398,592.44 -131,360,997.83 4.Չ˼ 4. Others – – – – – – – – – – – – – ᛆूʫഐᔷ (4) Transfer – – – – – – – – – – – – – 1.͉ 1. Transfer of capital reserves to share capital – – – – – – – – – – – – – 2.͉ 2. Transfer of surplus reserves to share capital – – – – – – – – – – – – – 3.ቱʮጐᏎᑦฦ 3. Surplus reserves transfer to make up for losses – – – – – – – – – – – – – 4.Չ˼ၝΥϗूഐᔷ वπϗू 4. Transfer other comprehensive income to retained earnings – – – – – – – – – – – – – 5.Չ˼ 5. Others – – – – – – – – – – – – – ʞ ਖ਼ධᎷ௪ (5) Special reserves – – – – – – – 6,992,864.85 – – – 83,828.11 7,076,692.96 1.͉ϋ՟ 1. Appropriation – – – – – – – 45,547,586.36 – – – 182,358.06 45,729,944.42 2.͉ϋԴ͜ 2. Used – – – – – – – 38,554,721.51 – – – 98,529.95 38,653,251.46 ʬ Չ˼ (6) Others – – – – – – – – – – – -30,987,294.28 -30,987,294.28 ̬e2025ϋ6˜30˚ቱᕘ 4. Balance at 30 June 2025 3,684,640,154.00 – – – 71,477,815.41 – 82,071,779.83 12,628,461.20 552,310,263.81 – 3,968,988,616.92 513,250,743.70 8,885,367,834.87 2024ܓ From January-December, 2024 ᛆू Equity attributable to the equity holders of the controlling Company ධͦ Items ͉ Share capital Չ˼ᛆूʈՈ ༟͉ʮጐ Capital reserves ٰ Less: treasury shares Չ˼ၝΥϗू Other comprehensive income ਖ਼ධᎷ௪ Special reserves ቱʮጐ Surplus reserves ᎈ௪ General risk provision ͊ʱৣлᆗ Retained profits ᛆू Non- controlling interests ࠇ Total equity Other equity instruments ٰ Preferred shares ͑ᚃව Perpetual bond Չ˼ Others ɓe2023ϋ12˜31˚ቱᕘ 1. Balance at 31 December 2023 3,684,640,154.00 – – – 80,949,073.14 – 61,786,603.88 – 479,851,957.61 – 3,404,126,480.53 528,477,068.29 8,239,831,337.45 ഄᜊһ Add: Changes in accounting policies – – – – – – – – – – – – – ፹һ͍ Correction of prior-period errors – – – – – – – – – – – – – ΝɓછՓɨΆุΥԻ Business combination under common control – – – – 39,579,902.62 – – 569,425.11 – – -7,665,528.97 – 32,483,798.76 Չ˼ Others – – – – – – – – – – – – – ɚe2024ϋ1˜1 2. Balance at 1 January 2024 (As restated) 3,684,640,154.00 – – – 120,528,975.76 – 61,786,603.88 569,425.11 479,851,957.61 – 3,396,460,951.56 528,477,068.29 8,272,315,136.21 ᕘ ಯˇ˸ Ñ ෬ΐ 3. Increase/Decrease for the period (Decrease listed with “-”) – – – – -21,321,193.07 – 16,302,873.54 5,066,171.24 35,413,321.29 – 322,563,047.73 -11,956,919.42 346,067,301.31 ɓ ၝΥϗूᐼᕘ (1) Total comprehensive income – – – – – – 16,302,873.54 – – – 431,837,743.23 28,619,485.83 476,760,102.60 ҳɝձಯˇ༟͉ (2) Capital contribution and reduction from shareholders – – – – -21,321,193.07 – – – – – – -22,073,576.05 -43,394,769.12 1.ٰ1. Common stock capital contribution from shareholders – – – – – – – – – – – 9,500,000.00 9,500,000.00 2.٫ ҳɝ༟͉ 2. Capital contribution from holders of other equity instruments – – – – – – – – – – – – – 3.؇ٰ ᕘ 3. Equity increase from Share- based payments – – – – – – – – – – – – – 4.Չ˼ 4. Others – – – – -21,321,193.07 – – – – – – -31,573,576.05 -52,894,769.12 ɧ лᆗʱৣ (3) Profit appropriations – – – – – – – – 35,413,321.29 – -109,274,695.50 -18,502,829.20 -92,364,203.41 1.ቱʮጐ 1. Appropriation to statutory reserve – – – – – – – – 35,413,321.29 – -35,413,321.29 – – 2.՟ᔖʈᆤᎸʿ ږ 2. Appropriation to staff bonus and welfare – – – – – – – – – – -168,571.13 – -168,571.13 3.ʱৣ 3. Appropriation to shareholders – – – – – – – – – – -73,692,803.08 -18,502,829.20 -92,195,632.28 4.Չ˼ 4. Others – – – – – – – – – – – – – ᛆूʫഐᔷ (4) Transfer – – – – – – – – – – – – – 1.͉ 1. Transfer of capital reserves to share capital – – – – – – – – – – – – – 2.͉ 2. Transfer of surplus reserves to share capital – – – – – – – – – – – – – 3.ቱʮጐᏎᑦฦ 3. Surplus reserves transfer to make up for losses – – – – – – – – – – – – – 4.Չ˼ၝΥϗूഐᔷ वπϗू 4. Transfer other comprehensive income to retained earnings – – – – – – – – – – – – – 5.Չ˼ 5. Others – – – – – – – – – – – – – ʞ ਖ਼ධᎷ௪ (5) Special reserves – – – – – – – 5,066,171.24 – – – – 5,066,171.24 1.͉ϋ՟ 1. Appropriation – – – – – – – 18,456,097.87 – – – – 18,456,097.87 2.͉ϋԴ͜ 2. Used – – – – – – – 13,389,926.63 – – – – 13,389,926.63 ʬ Չ˼ (6) Others – – – – – – – – – – – – – ̬e2024ϋ12˜31˚ቱᕘ 4. Balance at 31 December 2024 (As restated) 3,684,640,154.00 – – – 99,207,782.69 – 78,089,477.42 5,635,596.35 515,265,278.90 – 3,719,023,999.29 516,520,148.87 8,618,382,437.52 Legal Representative Person in charge of accounting function: Person in charge of accounting department: ɛj பɛj பɛj
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ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 68 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ڌ STATEMENT OF CHANGES IN EQUITY OF THE COMPANY 2025ϋ1-6˜ From January-June, 2025 ͉ Share capital Չ˼ᛆूʈՈ ༟͉ʮጐ Capital reserves ٰ Less: treasury shares Չ˼ၝΥϗू Other comprehensive income ਖ਼ධᎷ௪ Special reserves ቱʮጐ Surplus reserves ͊ʱৣлᆗ Retained profits ࠇ Total equity Other equity instruments ٰ Preferred shares ͑ᚃව Perpetual bond Չ˼ Othersධͦ Items ɓe2024ϋ12˜31˚ቱᕘ 1. Balance at 31 December 2024 3,684,640,154.00 – – – – – 87,681,457.05 – 529,640,654.81 2,929,692,760.90 7,231,655,026.76 ഄᜊһ Add: Changes in accounting policies – – – – – – – – – – – ፹һ͍ Correction of prior-period errors – – – – – – – – – – – Չ˼ Others – – – – – – – – – – – ɚe2025ϋ1˜1˚ቱᕘ 2. Balance at 1 January 2025 3,684,640,154.00 – – – – – 87,681,457.05 – 529,640,654.81 2,929,692,760.90 7,231,655,026.76 ᕘ ಯˇ˸ Ñ ෬ΐ 3. Increase/Decrease for the period (Decrease listed with “-”) – – – – – – 9,960,266.25 – 37,044,984.91 202,862,206.28 249,867,457.44 ɓ ၝΥϗूᐼᕘ (1) Total comprehensive income – – – – – – 9,960,266.25 – – 368,869,596.58 378,829,862.83 ҳɝձಯˇ༟͉ (2) Capital contribution and reduction from shareholders – – – – – – – – – – – 1.ٰ1. Common stock capital contribution from shareholders – – – – – – – – – – – 2.٫ ҳɝ༟͉ 2. Capital contribution from holders of other equity instruments – – – – – – – – – – – 3.؇ٰ ᕘ 3. Equity increase from Share-based payments – – – – – – – – – – – 4.Չ˼ 4. Others – – – – – – – – – – – ɧ лᆗʱৣ (3) Profit appropriations – – – – – – – – 37,044,984.91 -166,007,390.30 -128,962,405.39 1.ቱʮጐ 1. Appropriation to statutory reserve – – – – – – – – 37,044,984.91 -37,044,984.91 – 2.ʱৣ 2. Appropriation to shareholders – – – – – – – – – -128,962,405.39 -128,962,405.39 3.Չ˼ 3. Others – – – – – – – – – – – ᛆूʫഐᔷ (4) Transfer – – – – – – – – – – – 1.͉ 1. Transfer of capital reserves to share capital – – – – – – – – – – – 2.͉ 2. Transfer of surplus reserves to share capital – – – – – – – – – – – 3.ቱʮጐᏎᑦฦ 3. Surplus reserves transfer to make up for losses – – – – – – – – – – – 4.ྌᜊਗᕘഐᔷ वπϗू 4. Transfer changes of defined benefit plan to retained earnings – – – – – – – – – – – 5.Չ˼ၝΥϗूഐᔷ वπϗू 5. Transfer other comprehensive income to retained earnings – – – – – – – – – – – 6.Չ˼ 6. Others – – – – – – – – – – – ʞ ਖ਼ධᎷ௪ (5) Special reserves – – – – – – – – – – – 1.͉ϋ՟ 1. Appropriation – – – – – – – – – – – 2.͉ϋԴ͜ 2. Used – – – – – – – – – – – ʬ Չ˼ (6) Others – – – – – – – – – – – ̬e2025ϋ6˜30˚ቱᕘ 4. Balance at 30 June 2025 3,684,640,154.00 – – – – – 97,641,723.30 – 566,685,639.72 3,132,554,967.18 7,481,522,484.20
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ᚃ STATEMENT OF CHANGES IN EQUITY OF THE COMPANY (Continued) ʮ̡ ఊЗjɛ͏࿆ʩ Prepared by: Chongqing Machinery & Electric Co., Ltd. Unit: RMB 2025 中報 重慶機電股份有限公司 69 2024ܓ From January-December, 2024 ධͦ Items ͉ Share capital Չ˼ᛆूʈՈ ༟͉ʮጐ Capital reserves ٰ Less: treasury shares Չ˼ၝΥϗू Other comprehensive income ਖ਼ධᎷ௪ Special reserves ቱʮጐ Surplus reserves ͊ʱৣлᆗ Retained profits ࠇ Total equity Other equity instruments ٰ Preferred shares ͑ᚃව Perpetual bond Չ˼ Others ɓe2023ϋ12˜31˚ቱᕘ 1. Balance at 31 December 2023 3,684,640,154.00 – – – 141,221,053.70 – 69,132,158.00 – 494,227,333.52 2,740,307,724.14 7,129,528,423.36 ഄᜊһ Add: Changes in accounting policies – – – – – – – – – – – ፹һ͍ Correction of prior-period errors – – – – – – – – – – – Չ˼ Others – – – – – – – – – – – ɚe2024ϋ1˜1˚ቱᕘ 2. Balance at 1 January 2024 3,684,640,154.00 – – – 141,221,053.70 – 69,132,158.00 – 494,227,333.52 2,740,307,724.14 7,129,528,423.36 ᕘ ಯˇ˸ Ñ ෬ΐ 3. Increase/Decrease for the period (Decrease listed with “-”) – – – – -141,221,053.70 – 18,549,299.05 – 35,413,321.29 189,385,036.76 102,126,603.40 ɓ ၝΥϗूᐼᕘ (1) Total comprehensive income – – – – – – 18,549,299.05 – – 355,713,465.44 374,262,764.49 ҳɝձಯˇ༟͉ (2) Capital contribution and reduction from shareholders – – – – -141,221,053.70 – – – – -57,222,304.31 -198,443,358.01 1.ٰ1. Common stock capital contribution from shareholders – – – – – – – – – – – 2.٫ ҳɝ༟͉ 2. Capital contribution from holders of other equity instruments – – – – – – – – – – – 3.؇ٰ ᕘ 3. Equity increase from Share-based payments – – – – – – – – – – – 4.Չ˼ 4. Others – – – – -141,221,053.70 – – – – -57,222,304.31 -198,443,358.01 ɧ лᆗʱৣ (3) Profit appropriations – – – – – – – – 35,413,321.29 -109,106,124.37 -73,692,803.08 1.ቱʮጐ 1. Appropriation to statutory reserve – – – – – – – – 35,413,321.29 -35,413,321.29 – 2.ʱৣ 2. Appropriation to shareholders – – – – – – – – – -73,692,803.08 -73,692,803.08 3.Չ˼ 3. Others – – – – – – – – – – – ᛆूʫഐᔷ (4) Transfer – – – – – – – – – – – 1.͉ 1. Transfer of capital reserves to share capital – – – – – – – – – – – 2.͉ 2. Transfer of surplus reserves to share capital – – – – – – – – – – – 3.ቱʮጐᏎᑦฦ 3. Surplus reserves transfer to make up for losses – – – – – – – – – – – 4.ྌᜊਗᕘ ഐᔷवπϗू 4. Transfer changes of defined benefit plan to retained earnings – – – – – – – – – – – 5.Չ˼ၝΥϗूഐᔷ वπϗू 5. Transfer other comprehensive income to retained earnings – – – – – – – – – – – 6.Չ˼ 6. Others – – – – – – – – – – – ʞ ਖ਼ධᎷ௪ (5) Special reserves – – – – – – – – – – – 1.͉ϋ՟ 1. Appropriation – – – – – – – – – – – 2.͉ϋԴ͜ 2. Used – – – – – – – – – – – ʬ Չ˼ (6) Others – – – – – – – – – – – ̬e2024ϋ12˜31˚ቱᕘ 4. Balance at 31 December 2024 3,684,640,154.00 – – – – – 87,681,457.05 – 529,640,654.81 2,929,692,760.90 7,231,655,026.76 Legal Representative Person in charge of accounting function: Person in charge of accounting department: ɛj பɛj பɛj
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2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 70 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ൗ NOTES TO THE FINANCIAL STATEMENTS ɓe ر ʮ̡ ˸ɨᔊ၈͉ʮ̡dί ᅅዚཥછ ᅅዚཥණྠ e ʮ̡ ˸ɨᔊ၈ ಽ ʮ ʮ̡ ˸ ٰ ʮ̡ ࠢ 2007ϋ7˜27ٙ ʕശɛ͏ձ ݬ60dᐼή ٰ މ2,679,740,154ɛ͏࿆1ʩf ึᗇ္̙ (2008)2852008ϋ6˜ 13ୃ H 1,004,900,000ࠢ ͉ᄣЇɛ͏ ࿆3,684,640,154ʩf ᅅዚཥ ᅅ ණ ʮ̡ f ࿚Ї 2025 ϋ6˜30ɛ͏࿆ 3,684,640,154෯Ϟ Ⴁி e ቖਯʿ ਕf 2025ϋ8˜20˚ జ̈f I. GENERAL INFORMATION Chongqing Machinery & Electric Co., Ltd. (hereinafter referred to as the Company, and collectively referred to as the Group when including subsidiaries) was established on 27 July 2007 as a joint share company with limited liability by Chongqing Machinery & Electronics Holding (Group) Co., Ltd. (“CQMEHG”), Chongqing Yufu Capital Operation Group Co., Ltd (“Yufu company”, previously named as Chongqing Yufu Assets Management Co., Ltd), China CITIC Financial Asset Management Co., Ltd. (“CITIC Company”, previously named as China Huarong Asset Management Co., Ltd.), and Chongqing Construction Engineering Group Co. Ltd. (“CCEG”, previously named as Chongqing Construction Engineering Group Corp., Ltd.). The address of the Company’s registered office is No. 60, Middle Section of Huangshan Avenue, New North Zone, Chongqing City, the PRC. The Company’s headquarter is located in Chongqing, the PRC. The Group was established with a registered capital of RMB2,679,740,154 (RMB1 per share). On 13 June 2008, the Company publicly issued 1,004.90 million H shares to foreign investors with approval of the Circular “Zhengjian Xuke [2008] No. 285” of the China Securities Regulatory Commission, and the shares were listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). After issuing the shares, the total share capital increased to RMB3,384,640,154. CQMEHG which is a registered company in China, is the parent company of the Company and Chongqing Yufu Holding Group Co., Ltd.*ʮ̡ which is a registered company in China, is the ultimate holding company of the Company. As at 30 June 2025, the registered capital of the Company was RMB3,684,640,154. The Group are mainly engaged in the manufacturing, sales and services of clean energy equipment and high-end intelligent equipment. The consolidated financial statements have been approved for issue by the Company’s board of directors (“Board”) on 20 August 2025.
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 71 ɚe ᇜՓਿᓾ 1. ᇜՓਿᓾ ձ ᗫ dʕᗇ ึ ˸ɨᔊ၈ ᗇ္ึ ᚣᇜజ ୋ15 2023 ಥ ʮ̡ૢ ࠅה ࠠ ഄ ᇜՓf 2. ᚃᐄ ͉ණྠ࿁І 2025ϋ6˜30˚ৎ12ٙ ܵ f ਿᓾΐజf II. BASIS FOR THE PREPARATION OF FINANCIAL STATEMENTS 1. Basis of preparation The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises – Basic Standard, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance (hereinafter referred to as “CAS”) and the disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15-General Rules on Financial Reporting issued by the China Securities Regulatory Commission (hereinafter referred to as “CSRC”). In addition to the above foundations, it also includes the relevant disclosures required by the Hong Kong Companies Ordinance and the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (“Listing Rules”), and is prepared based on the accounting policies and accounting estimates set out in “III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES” in this note. 2. Going concern The Group has evaluated its ability to continue operating for 12 months from 30 June, 2025, and has not found any significant doubts or circumstances regarding its ability to continue operating. This financial statement is presented on a going concern basis.
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 72 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES Specific accounting policies and accounting estimates are formulated by the Group based on actual manufacturing and operating characteristics including business cycle, recognition and measurement of provision for bad debts of accounts receivable, inventory cost flow assumptions, measurement of net realizable value of inventory, classification and depreciation method of fixed assets, amortization of intangible assets, capitalization of research and development expenses, recognition and measurement of revenue, etc. 1. Declaration on Compliance with CAS This financial statement complies with the requirements of the Accounting Standards for Business Enterprises and truthfully, accurately, and completely reflects the financial position of the Group as of 30 June, 2025, as well as relevant information such as operating results and cash flows from January 2025 to June 2025. 2. Accounting Period The Group’s accounting period is from 1 January to 31 December. 3. Business Cycle The Group treats 12 months as a business cycle and the criteria for classifying current and non-current assets and liabilities. ɧe ࠇ ኽ ഄձึ ٙ ඎ e π̙ᜊତଋ e ೌҖ ೯൬͜༟͉ʷૢ e ϗɝᆽႩ ඎഃf 1. Ӌd 2025ϋ6˜30˸ʿ 2025ϋ 1-6f 2. ಂග ʮ 1˜1˚Ї12˜ 31˚f 3. ᐄุմಂ މ12މ ྌʱᅺf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 73 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 4. Functional Currency The Group’s accounting base currency and the currency used in the preparation of these financial statements are both RMB. Unless otherwise specified, all units are expressed in RMB yuan. The subsidiaries, joint ventures, and associated enterprises of the Group shall determine their accounting base currency based on the main economic environment in which they operate. When preparing financial statements, they shall be converted into RMB according to the methods described III.9. 5. Method and selection basis for determining importance standards The preparation and disclosure of financial statements by the Group follows the principle of materiality. The Group assesses the importance of financial statement disclosures from both nature and amount perspectives. When determining the importance of the nature, the Group considers factors such as whether the matter belongs to its daily activities. When determining the importance of the amount, the Group determines based on whether the individual amount is greater than or equal to RMB5 million. ɧe ᚃ 4. া੮͉З࿆ הڌ ͪf ͉ණྠɨ᙮ɿʮ̡eΥᐄΆุʿᑌᐄΆ ᐑྤІ ࣛڌ ɧe9ɛ͏࿆f 5. ձ፯Աኽ ࠅࠠ к щ ᕘ ᕘ ≥500f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 74 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 6. Measurement for Business Combinations under Common Control and Business Combinations not under Common Control As the merging party, assets acquired and liabilities obtained by the Group through a business combination under common control shall be measured at their carrying amounts of the combined party in the ultimate controlling party’s consolidated financial statements at the consolidation date. The differences between the carrying amount of the net assets acquired and the carrying amount of the consideration paid should be adjusted in the capital reserve. If capital reserve is not sufficient for offsetting, the retained earnings shall be adjusted. The identifiable assets, liabilities and contingent liabilities acquired in the merger of enterprises not under the same control are measured at fair value on the acquisition date. The consolidation cost is the sum of fair value of cash paid or non-cash assets paid to get control of acquiree, liabilities issued or assumed, equity securities issued and all other direct costs during business combination (for those business combination achieved in stages, the consolidation cost equals to the sum of each transaction). The excess of consolidation cost over the fair value of net identifiable assets of the acquiree shall be recognised as goodwill. It should reassess the fair value of all identifiable assets achieved through business consolidation, liabilities or contingent liabilities, non-cash assets or equity securities issued if the consolidation cost is less than the fair value of net identifiable assets. After reassessment, if the consolidation cost is still less than the the fair value of net identifiable assets of the acquiree, the excess shall be recognised into non-operating income. ɧe ᚃ 6. ΝɓછՓɨΆุΥԻ ج ΥԻ˙dίΝɓછՓɨΆุ ܲ ሪ ၾ ᕘdሜ dሜ वπϗूf ᒅ වίϗ ͉ණ છՓᛆ וא ʮʪ ટ ʱӉྼତ ӊɓఊධʹ ΥԻʕ ࠽ ਠᚑiΥԻϓ͉ʃ ᒅ൯˙̙፫Ⴉଋ༟ପ ٙ ʮ א ආБᔧ ΥԻʕ ࠽ ɝΥԻಂᐄุ̮ ϗɝf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 75 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 7. Preparation of Consolidated Financial Statements The consolidated financial statements included all subsidiaries and special purpose entities that the Company has effective control. In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Group and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Group. All major internal transactions, current balances and unrealized profits within the scope of the merger shall be offset at the time of preparation of the consolidated statements. The share of the owner’s equity of a subsidiary that does not belong to the parent company and the current net profit and loss, other comprehensive income and the share of the total comprehensive income that belongs to the minority shareholders’ equity shall be listed as “Minority Interests”, “Non-controlling Interest” and “Other Comprehensive Income” attributable to “Non- controlling Interest and total comprehensive income” attributable to non-controlling interest in the consolidated financial statements. ɧe ᚃ 7. ج ɿʮ̡ॶɝΥԻৌ ᇍఖf dɿʮ̡ၾ͉ණ d ಂග࿁ɿʮ ሜf Ը ʚ ΅ᕘ˸ʿಂଋฦूeՉ˼ၝ ؇ٰ ˇ ᙮ ˇ ၝΥϗूᐼᕘ ධͦΐͪf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 76 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 7. Preparation of Consolidated Financial Statements (continued) For the subsidiaries consolidated under common control, its operating results and cash flows shall be included in the consolidated financial statements from the beginning of the consolidated period. When preparing comparative consolidated financial statements, Adjust the related items of prior year’s financial statements are adjusted. The reporting subject formed after the merger is always present since the time when the ultimate controlling party began to control. For the subsidiary acquired through the business combination not under common control, operating results and cash flows should be included in the consolidated financial statements from the date on which control is transferred to the Group. When preparing consolidated financial statements, it shall adjust the financial statements of the subsidiary company on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities determined on the acquisition date. The Group partially disposes of the long-term equity investments in subsidiaries without loss of control. In the consolidated financial statements, the difference between the disposal price and disposal of long-term equity investments shall be subject to the share of net assets that the subsidiaries continue to calculate from the date of purchase or the date of combination shall adjust capital premium or equity premium. If the capital is not sufficient for offsetting, the retained earnings shall be adjusted. ɧe ᚃ 7. ᚃ ɿʮ̡d ڋ fᇜՓˢ༰ΥԻৌਕ ᗫධͦආ జѓ˴І πίf ΝɓછՓɨΆุΥԻ՟ɿʮ̡d ඎІ͉ණྠ՟છՓ fίᇜՓΥ ධ̙ ࠽ ආБሜf ɨʱஈ ᛆҳ༟dίΥԻৌ ᛆҳ ΥԻ˚ ᕘd ͉๐ᄆd༟͉ʮጐʔ dሜवπϗूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 77 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 7. Preparation of Consolidated Financial Statements (continued) When disposing of part of the equity investment and losing control of the entity, the Group shall re-measure the fair value of the remaining equity investment subsequent to the disposal at the date when the Group lost control. when preparing the consolidated financial statements, The sum of the disposal consideration amount and the fair value of the remaining equity investment less the difference between the share of the net assets that the original subsidiary from the acquisition date or the combination date, the difference is recorded in the loss of control investment income in the current period and write down the goodwill. Other comprehensive income related to the equity investment of the original subsidiaries shall be transferred to investment profit and loss in the current period when the control was lost. The Group disposes of the equity investment in the subsidiary through multiple transactions until it loses control. When several transactions related to the disposal of equity investment in a subsidiary until the control over the subsidiary is lost belong to transactions in a basket, each of which is accounted for as disposal of a subsidiary with a transaction until the control over a subsidiary is lost; however, the different between the amount of disposal prior to the loss of control and the net assets of a subsidiary attributable to the disposal investment shall be recognized as other comprehensive income in consolidated financial statements and transferred to profit or loss at the time when the control is lost. ɧe ᚃ 7. ᚃ Ϊఄ̰ dίᇜՓΥԻ Չί ඎf ᛆʮʪᄆ ၑᏐԮϞ ᚃ ɝ әಯ Չ ಂҳ༟ฦूf ʱӉஈໄ࿁ɿʮ̡ ஈໄ dᏐਗ਼ධ ɓධஈໄɿʮ̡Ԩఄ̰છՓᛆ dίఄ̰છ ӊɓϣஈໄᄆಛၾஈໄҳ༟࿁ ᕘd Չ˼ၝΥϗूd ɓԨᔷɝఄ̰છՓᛆ ҳ༟ฦूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 78 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 7. Preparation of Consolidated Financial Statements (continued) All significant intra-group balances, transactions and unrealized profits are eliminated in the consolidated financial statements. The portion of subsidiaries’ equity and the portion of subsidiaries’ net profits and losses and comprehensive incomes for the period not attributable to the Company are recognized as non-controlling interests and presented separately in the consolidated financial statements under equity, net profits and total comprehensive income respectively. Unrealized profits and losses resulting from the sale of assets by the Company to its subsidiaries are fully eliminated against net profit attributable to shareholders of the Company. Unrealized profits and losses resulting from the sale of assets by a subsidiary to the Company are eliminated and allocated between net profit attributable to shareholders of the Company and minority interests in accordance with the allocation proportion of the parent in the subsidiary. Unrealized profits and losses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to shareholders of the Company and minority interests in accordance with the allocation proportion of the parent in the subsidiary. ɧe ᚃ 7. ᚃ ʿ͊ ת ᛆूeಂଋฦूʿ ʱ ฦू ၝΥϗूᐼᕘίΥ ᛆूeଋлᆗʿၝΥ ϗूᐼᕘධɨఊዹΐͪf͉ණྠΣɿʮ ฦ ଋл ٙ ͉ණྠ࿁༈ɿ ٙ؇ٰ ቖf ͊ྼତʫ ͎ʮ̡࿁̈ਯ˙ɿʮ ଋ ቖf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 79 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 8. Cash and Cash Equivalents Cash in the Group’s cash flows statement represents cash on hand and deposits that can be readily draw on demand. Cash equivalents in the cash flow statement represent short-term (3 months or less), and highly liquid investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value. 9. Foreign currency transactions and translation of financial statements denominated in foreign currency (1) Foreign currency transactions Foreign currency transactions are translated into RMB at the spot exchange rate of the transaction dates. On balance sheet date, foreign currency monetary items are translated into RMB at the spot exchange rate of balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction of qualifying assets, which are capitalised as part of the cost of those assets. ɧe ᚃ 8. ي ˸ ඎ ʔ൴ཀ 3ࡈ ᕘତ ҳ༟f 9. ұၑ (1) ٙ ɛ͏ ˚d̮࿆ у ұ ͛ପୌΥ༟ ̮࿆ਖ਼ ༟͉ʷ ɝಂฦूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 80 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 9. Foreign currency transactions and translation of financial statements denominated in foreign currency (continued) (2) Translation of foreign currency financial statements Asset and liability items in the balance sheet of foreign operations are translated at the spot exchange rates at the balance sheet date; equity items other than undistributed profits are translated at the spot exchange rates at the date of the transactions. Income and expense items in the income statements are translated at the spot exchange rate at the date of the transactions. The foreign currency statement translation difference arising from the above conversion shall be listed in other comprehensive income item. The impact of the foreign currency translation on the cash is presented in the cash flow statement separately. 10. Financial Assets and Financial Liabilities The Group recognizes a financial asset or liability when it enters a financial instrument contract. (1) Financial assets 1) Classification, recognition basis and measurement of financial assets Based on the business mode for management of the Group and cash flow characteristics of contracts, the financial assets are classified into the following categories: (i) financial assets measured at amortized cost; (ii) financial assets at fair value through other comprehensive income; (iii) financial assets at fair value through profit or loss. ɧe ᚃ 9. ұၑ ᚃ (2) ұၑ වᗳධ уಂිଟ ᛆूᗳධͦৰ ͊ʱ у ϗɝၾ൬ уಂි ڌ ᕘdίՉ˼ၝΥϗूධͦʕ ඎ уಂිଟұၑfිଟᜊਗ ʕ ఊዹΐͪf 10. ව ᆽႩ වf (1) ፄ༟ପ 1) ፄ༟ପʱᗳ e ᆽႩԱኽձ ج ٙ ΥΝ ፄ༟ପʱ ږٙ ඎ ɝՉ˼ၝΥϗू ࠽ ɝಂฦू ፄ༟ପf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 81 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 1) Classification, recognition basis and measurement of financial assets (continued) The Group classifies the financial assets into financial assets as subsequently measured at amortized cost if all the following conditions are met: a) The objective of the business model within which the asset is held is to hold assets in order to collect contractual cash flows, and b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding. Such financial asset is measured initially at its fair value, the relating transaction costs shall be recognized into the initial amount of the financial asset, and is subsequently measured at amortized cost. Except for the case that the financial asset is designated for hedging project, gain or loss arising from derecognition, impairment or amortization for the difference between the initial amount and the amount due using the effective interest method are recorded in current profit or loss. These financial assets include cash at bank and on hand, notes receivable, accounts receivable, other receivables, contractual assets, debt investments and long- term receivables. Debt investments and long- term receivables due within 1 year (inclusive) at the balance sheet date are listed as the current portion of non-current assets; at acquiring date, debt investments with maturities within one year (inclusive) are listed as other current assets. ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 1) ፄ༟ପʱᗳ e ᆽႩԱኽձ ᚃ ୌΥɨΐૢ ˸ᛅቱϓ ፄ༟ପ j Ǻ၍ଣ ˸ ͦᅺ f ΥΝૢಛ ږ ձ˸͊Ꮅ ٙࢹ ʮ ᗫ ᕘi ඎ f d ږڋ ᕘ d e ිгฦू˸ א ɝಂฦू f Ϥᗳ e Ꮠϗୃኽ e Ꮠϗሪಛ e Չ˼ Ꮠϗಛ e ΥΝ༟ପ e වᛆҳ ಂᏐϗಛഃ f ͉ණྠ ˚ৎɓϋʫ වᛆҳ༟ձ ɓϋʫ ࣛ ව ਗ༟ ପf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 82 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 1) Classification, recognition basis and measurement of financial assets (continued) The Group classifies the financial assets into financial assets as measured at fair value through other comprehensive income if all the following conditions are met: a) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Such financial asset is measured initially at its fair value, and the relating transaction costs shall be recognized into the initial amount of the financial asset. Gain or loss incurred by financial assets measured at fair value through other comprehensive income excepting the case that the financial asset is designated for hedging project shall be recognized in other comprehensive income except the impairment loss or gains, foreign exchange profit or loss, and interests calculated by the effective interest rate method of financial assets. When the financial asset is derecognized, accumulated gains or losses previously recognized in other comprehensive income shall be transferred to current profit or loss from other comprehensive income. These financial assets are listed as receivables financing and other equity instrument investments. ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 1) ፄ༟ପʱᗳ e ᆽႩԱኽձ ᚃ ୌΥɨΐૢ ˸ʮʪᄆ ɝՉ˼ၝ ፄ༟ପ j Ǻ၍ଣ ˸ ͦᅺɦ ͦᅺ f ΥΝૢಛ ږ ձ˸͊Ꮅ ٙࢹ ʮ ᗫ ᕘf d ࠽ ܲ ፄ Չ ɝՉ˼ ፄ༟ପ˟ᆽ ɝՉ˼ၝΥϗ ฦ̰Ꮠ ɝ ፄ༟ପΐ Ꮠϗಛධፄ༟ʿՉ˼ᛆ ूʈՈҳ༟f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 83 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 1) Classification, recognition basis and measurement of financial assets (continued) The Group lists those debt instruments that do not meet the criteria for amortised cost or fair value through other comprehensive income as financial assets held for trading that are measured at fair value through profit or loss. At the initial recognition, for eliminating or dramatically reducing accounting mismatch, the Group specifies parts of financial assets as those measured at fair value through current profit or loss. 2) Equity instruments The Group recognises its equity instruments that have no control, joint control and significant influence on the fair value through profit or loss and list them as financial assets held for trading; the equity instruments that are expected to be held for more than a year from the balance sheet date are listed as other non-current financial assets. ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 1) ፄ༟ପʱᗳ e ᆽႩԱኽձ ᚃ ඎձ˸ ɝ ፄ༟ପ̮d ፄ༟ ඎ˲ ፄ ؈ ፹ ৣ d ͉ණྠ̙˸ਗ਼͉Ꮠ˸ᛅ ࠇ࠽ ɝՉ˼ၝΥϗ ܸ ඎ˲Չᜊ ፄ༟ପf 2 ᛆूʈՈ ͉ණྠਗ਼ՉӚϞછՓ e Ν ᛆूʈՈ ඎ˲Չ މ ࠋ Ϟ൴ཀɓϋ ፄ ༟ପf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 84 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 2) Equity instruments (continued) Besides, the Group specifies certain non- tradable equity instrument investments as financial assets that are measured at fair value through other comprehensive income and presented as other equity instrument investments. The relevant dividend income of such financial assets is included in the current profit and loss. 3) Recognition basis and measurement of transferring financial assets The Group will derecognized the financial asset if one of the following conditions is satisfied: (a) The contractual rights to collect the cash flows from the financial asset terminate; (b) When the financial asset is transferred, and the Group transfers substantially all the risks and rewards of ownership of the financial asset; (c) When the financial asset is transferred, the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and has not retained control. ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 2 ᛆूʈՈ ᚃ ˸ʮ ɝՉ ፄ༟ପ d ΐ Չ˼ᛆूʈՈҳ༟ f ༈ ɝ ಂฦूf 3 ᆽႩԱኽձ ج ͉ණྠਗ਼တԑɨΐૢʘɓ ፄ༟ପ˟ᆽႩ j (1)ϗ Υ Νᛆл˟ i (2)ፄ༟ପ೯ ፄ ᎈ జཇ i(3)ፄ༟ପ೯͛ᔷ ӚϞᔷɰӚ Ϟᛆɪ ڭ f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 85 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 3) Recognition basis and measurement of transferring financial assets (continued) When a transfer of the financial asset qualifies for derecognition, the difference between the carrying amount of the financial asset transferred and the sum of the consideration received from the transfer and the cumulative amount of changes in fair value that has been previously recorded in other comprehensive income, is recorded in current profit or loss (the contractual terms of the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding). If a transfer of part of a financial asset qualifies for derecognition, the carrying amount of the entire financial asset transferred is allocated between the part that is derecognized and the part that continues to be recognized, based on the respective fair values of those parts. The difference between the sum of consideration received from the transfer and cumulative amount of changes in fair value that shall be allocated to the part derecognized which has been previously recognized in other comprehensive income and the above allocated carrying amount, is recorded in current profit or loss (the contractual terms of the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding). ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 3 ᆽႩԱኽձ ᚃ ፄ༟ପᔷတԑ˟ ږ d ၾΪᔷ ࠇ ࠽ ᕘʕ࿁Ꮠ˟ᆽႩ ፄ d ίत ඎ d ස ږږ ˕˹ ʘձ ɝಂฦूf ፄ༟ପʱᔷတԑ˟ ፄ d ί ˟ᆽႩʱձ͊˟ᆽႩ ࿁ʮ ආБʱᛅ d Ԩਗ਼Ϊᔷ ࿁ᄆʿᏐʱᛅЇ ɝՉ˼ ᜊਗଢ଼ ٙ ٙ ˚ಂ ࿁͉ ਿ ˕˹ ʘձdၾʱ ࠦ ɝಂฦूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 86 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 4) Impairment of financial assets The Group conducts impairment treatment and recognizes loss provisions for financial assets, contract assets, loan commitments, and financial guarantee contracts measured at amortized cost based on expected credit losses. Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the risk of default. Credit loss refers to the present value of all cash shortages, which is the difference between all contractual cash flows receivable under the contract and all expected cash flows received, discounted at the original effective interest rate by the Group. When considering the method of measuring expected credit losses, the Group reflects the following elements: (a) an unbiased probability weighted average amount determined by evaluating a series of possible outcomes; (b) The time value of money; (c) Reasonable and evidence-based information about past events, current conditions, and future economic conditions that can be obtained without incurring unnecessary additional costs on the balance sheet date. ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 4 ࠽ ਿ ږٙ ו ࠽ ஈଣԨᆽႩฦ̰௪f ˸೯͛ ፄʈ f ኽΥ ඎ ඎ f ͉ණྠϽᅇཫಂ ν ९ j Ǻஷཀ൙ᄆɓӻΐ ೌ฿ ࣛ ˚ ᕘ̮ϓ͉ Ϟᗫཀ̘ԫධe رً f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 87 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 4) Impairment of financial assets (continued) The Group evaluates the expected credit losses of financial instruments based on individual and combination evaluations. When evaluating on a combination basis, the Group divides financial instruments into different groups based on common credit risk characteristics. The common credit risk characteristics adopted by the Group include: financial instrument type, credit risk rating, overdue information, accounts receivable aging, etc. The Group’s assessment of impairment of financial instruments and contract assets using the expected credit loss model requires significant judgment and estimation, taking into account all reasonable and evidence- based information, including forward-looking information. When making these judgments and estimates, the Group infers expected changes in the debtor’s credit risk based on historical repayment data combined with economic policies, macroeconomic indicators, industry risks, and other factors. Different estimates may affect the provision for impairment, and the provision for impairment that has already been made may not be equal to the actual amount of future impairment losses. ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 4 ᚃ ఊධձଡ଼Υ൙П ͜ฦ̰ d d ᎈत ʔΝଡ଼йf ᎈ e e Ꮠϗಛධሪᙧഃf ͜ฦ̰ᅼ ٙ ɽ ϞΥ ۃܼ f ίਂ̈வԬкᓙ ኽዝ̦ ഄ e ҃ ᎈഃΪ ཫ ̙ঐึ ࠇ ᕘf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 88 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 4) Impairment of financial assets (continued) For accounts receivable, notes receivable, accounts receivable financing, contract assets, and other receivables that do not contain significant financing components formed from daily business activities such as selling goods and providing services, the Group adopts a simplified measurement method to measure the provision for losses based on the expected credit loss amount equivalent to the entire existence period. For accounts receivables containing significant financing components and contract assets, the Group chooses to use a simplified measurement method to measure loss provisions based on the expected credit loss amount equivalent to the entire duration. ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 4 ᚃ e Զ௶ਕ ʔў Ꮠϗሪಛ e Ꮠϗୃኽ e Ꮠϗಛධፄ༟ e ΥΝ༟ପഃᏐϗಛධ d ͉ණ ཫಂ ඎฦ̰௪f Ꮠ ϗಛධ˸ʿΥΝ༟ପ d ͉ණ d ٙ ඎฦ̰ ௪f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 89 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 4) Impairment of financial assets (continued) For accounts receivable, except for those with credit impairment that have been individually determined, credit losses are usually determined based on a combination of common credit risk characteristics. Considering the elements that should be reflected in the expected credit loss measurement method and referring to historical credit loss experience, a comparison table between accounts receivable aging and default loss rate is prepared to calculate expected credit losses based on this. If a customer’s credit risk characteristics are significantly different from those of other customers in the portfolio, or if the customer’s credit risk characteristics undergo significant changes, such as severe financial difficulties, and the expected credit loss rate of accounts receivable from the customer is significantly higher than the expected credit loss rate in the aging range, the Group shall make a provision for losses on a single item basis for the accounts receivable from the customer. ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 4 ᚃ Ꮠϗಛධ d ৰ࿁ʊ೯͛ Չ Ν ਿᓾɪd ج ڦ ͜ฦ᜕̰ d ᇜՓᏐϗሪಛ d ͜ฦ ᎈत ˒ᜑഹʔ ᎈतᅄ ˒೯ ܄ ͜ฦ̰ଟʊ ሪᙧਜග ͜ฦ̰ଟഃ d ͉ණ ఊ ฦ̰௪f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 90 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 4) Impairment of financial assets (continued) Ǻ The combination category and determination basis of accounts receivable (with contract assets) ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 4 ᚃ Ǻ Ꮠϗሪಛ ၾΥΝ༟ପ Աኽ ଡ଼ΥΤ၈ ଡ଼ΥྌʱԱኽ Name of groups Basis of determination of groups ಛධ Related company funds Funds formed from transactions with related companies ˒ Good combination of payments received within the credit period Customers who have received good payments within the credit period ˒ General customer fund combination Other general customers
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 91 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 4) Impairment of financial assets (continued) Ǻ The combination category and determination basis of accounts receivable (with contract assets) (continued) Based on information such as the age of accounts receivable (and contract assets), nature of payments, credit risk exposure, and historical collection status, this group is grouped according to the similarity and correlation of credit risk characteristics. a. The Group evaluates accounts receivable formed from transactions with related companies as having low credit risk and does not recognize expected credit losses; b. For customers who have received good payments within the credit period, our group evaluates such payments as having low credit risk and does not confirm expected credit losses; c. For other general customers, the Group determines that aging is the main influencing factor of their credit risk. Therefore, the Group evaluates their expected credit losses based on an aging combination. Our group determines the aging of accounts based on the invoicing date. ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 4 ᚃ Ǻ Ꮠϗሪಛ ၾΥΝ༟ପ Աኽ ᚃ ኽᏐϗሪಛ ၾ ሪᙧeಛධ ᎈɹ e މࢹڦ ᎈतᅄ ආБ ʱ ଡ଼fa.ၾᗫᑌʮ̡ʹ Ꮠϗಛධ d ͉ ණྠ൙ᄆ༈ᗳಛධՈϞ ᎈ d ʔᆽ ͜ฦ̰ i b.ί ٙ ˒ d ͉ණྠ൙ᄆ༈ᗳ ࠬ ͜ฦ ̰ic.܄ މ ᅂᚤΪ ९ d ΪϤ d ͉ණྠ˸ሪ ਿᓾ൙ПՉཫ ࣬ ሪᙧf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 92 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 4) Impairment of financial assets (continued) ǻ Combination categories and determination basis of accounts receivable ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 4 ᚃ ǻ ଡ଼Υᗳйʿ Աኽ ଡ଼ΥΤ၈ ଡ଼ΥྌʱԱኽ Name of groups Basis of determination of groups ᎈ༰ЭვБୃኽ Bank acceptance bill Bank notes with lower credit risk гୃኽ Related party acceptance bills Related party acceptance bills ୃኽ Other bill combinations Notes from other units
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 93 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 4) Impairment of financial assets (continued) ǻ Combination categories and determination basis of accounts receivable (continued) Based on the credit risk of the acceptor of accounts receivable as a common risk feature, the Group divides them into different combinations and determines the accounting estimation policy for expected credit losses: a. The acceptor is a bank acceptance bill of a commercial bank, and the Group evaluates this type of payment as having lower credit risk, but does not recognize expected credit losses; b. The group evaluates bills with related parties as having low credit risk and does not confirm expected credit losses; c. The acceptor shall recognize the expected loss rate and make provisions for losses in accordance with the Group’s accounts receivable policy for bills issued by other units, which shall be the same as the combination of accounts receivable. ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 4 ᚃ ǻ ଡ଼Υᗳйʿ Աኽ ᚃ ٙ ᎈतᅄ d ਗ਼Չྌʱ ཫ ݁ࠇ ഄja.ਠุვ гිୃ d ͉ ණྠ൙ᄆ༈ᗳಛධՈϞ ᎈ d ʔᆽ ͜ฦ̰ i b.ו ୃኽ d ͉ණྠ൙ᄆ༈ᗳಛධՈ ᎈ d ʔ ͜ฦ̰ic.ו ୃ ኽ d ਞ͉ණྠᏐϗሪ ഄᆽႩཫಂฦ̰ଟ ฦ̰௪ d ၾᏐϗ Νf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 94 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 4) Impairment of financial assets (continued) Impairment testing methods for loan commitments, and financial guarantee contracts Except for financial assets, loan commitments, and financial guarantee contracts that use simplified measurement methods, the Group adopts the general method (three-stage method) to calculate expected credit losses. On each balance sheet date, the Group assesses whether its credit risk has significantly increased since initial recognition. If the credit risk has not significantly increased since initial recognition and is in the first stage, the Group measures the provision for losses based on an amount equivalent to the expected credit loss for the next 12 months, and calculates interest income based on the book balance and actual interest rate; If credit risk has significantly increased since initial recognition but credit impairment has not yet occurred, in the second stage, the Group measures loss provisions at an amount ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 4 ᚃ ٙ ج ˸ ፕʿ ΥΝ d ͉ණྠમ͜ ཫ ࠋ ͜ щʊ ᎈІ ͊ᜑഹᄣ̋ d ஈ ͊Ը 12͜ ඎฦ̰௪ d ቱᕘձྼყлଟ ࠬ ʊᜑഹᄣ̋ d ஈ ͜
Page 96
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 95 loss provision is measured based on the amount of the loss and calculates interest income based on the book balance and actual interest rate; If credit impairment occurs after initial recognition, in the third stage, the Group measures the provision for losses at an amount equivalent to the expected credit loss for the entire existence period, and calculates interest income at amortized cost and actual interest rate. For financial instruments with lower credit risk on the balance sheet date, the Group assumes that their credit risk has not significantly increased since initial recognition. ඎฦ̰௪ d ቱᕘձྼყлଟ ᆽ ͜ฦ ඎฦ̰௪ d Ԩ ࠇ ව ٙ ڦ ͊ᜑഹ ᄣ̋f ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 4) ᚃ ٙ ᚃ III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 4) Impairment of financial assets (continued) Impairment testing methods for loan commitments, and financial guarantee contracts (continued)
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 96 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (1) Financial assets (continued) 4) Impairment of financial assets (continued) The expected credit loss for the entire expected lifespan of a financial instrument refers to the expected credit loss caused by all possible default events that may occur throughout the expected lifespan of the financial instrument. The expected credit loss within the next 12 months refers to the expected credit loss that may occur due to a default event of a financial instrument within the next 12 months after the balance sheet date (if the expected maturity of the financial instrument is less than 12 months, then the expected maturity), which is a part of the expected credit loss for the entire maturity period. Please refer to X, 1 for the disclosure of the criteria for significantly increasing credit risk and the definition of credit impairment assets that have occurred in the Group. ɧe ᚃ 10. ව ᚃ (1) ፄ༟ପ ᚃ 4 ᚃ ͜ฦ̰ d π ߒ ͜ฦ̰f ͊Ը12͜ฦ̰d ܝ12ࡈ πᚃ 12π ፄʈՈ༼ ͜ฦ ͜ ɓʱf ᎈᜑഹ ͜ ᚣਞԈ ൗɤe1f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 97 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (2) Financial liabilities 1) Classificatione recognition basis and measurement of financial liabilities The group classifies the financial liabilities upon initial recognition as financial liabilities measured at fair value through profit or loss and other financial liabilities. Financial liabilities measured at fair value through profit or loss, including financial liabilities held for trading and those designated as measured at fair value through profit or loss upon initial recognition, (relevant classification basis is disclosed according to the classification basis of financial assets), are measured subsequently at fair value, and profits or losses resulting from changes in fair value and dividends and interest expense related to financial liabilities are recognized in current profits and losses. ɧe ᚃ 10. ව ᚃ (2) ව 1) වʱᗳ e ᆽႩԱኽձ ج ᆽ ඎ ږٙ වf ࠇ ව d ̍ ᆽ ඎ ږٙ ږ ᚣ f ඎd א ᗫ ɝಂ ฦूf
Page 99
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 98 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (2) Financial liabilities (continued) 1) Classificatione recognition basis and measurement of financial liabilities (continued) Other financial liabilities, (specific disclosure of financial liabilities according to actual situation), are subsequently measured at amortized cost using effective interest method. The Group classify all financial liabilities as subsequently measured at amortised cost, except for: (a) Financial liabilities measured at fair value through profit or loss, including financial liabilities held for trading (including derivatives that are liabilities) and those designated as measured at fair value through profit or loss upon initial recognition; (b) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies. (c) financial guarantee contracts that do not satisfied (a) and (b), and commitments to provide a loan at a below-market interest rate that do not satisfied (a). The financial liability constituted by contingent consideration confirmed by the buyer through a business combination not under common control by the Group is measured at fair value through current profit or loss. ɧe ᚃ 10. ව ᚃ (2) ව ᚃ 1) වʱᗳ e ᆽႩԱኽձ ᚃ ኽྼყઋ වʫ ඎ f ৰ ፄ ඎ ࠽ ɝಂฦू ږ ࠃٙ ࠽ ɝಂฦू ව f ǻʔୌΥ˟ א ה ڭ ˸ɪǺઋ ٙ ፕf ٙ ᒅ൯˙ᆽႩ d ඎ˲Չᜊ ஈ ଣf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 99 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (2) Financial liabilities (continued) 2) Derecognition criteria of financial liabilities When the present obligation or a part of the present obligation of a financial liability is discharged, a financial liability or a part of a financial liability shall be derecognized. A contract is entered into between the Group and the creditor to replace the existing financial liability by a new financial liability. And if the contract terms of new financial liability are substantially different with those in existing financial liability, it shall derecognize the existing financial liability and recognize a new financial liability. When the Group performed substantive changes to all or part of the contract terms of the existing financial liabilities, the existing financial liabilities or part of it shall be derecognized. And financial liabilities after term revision will be recognized as a new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid is recognized in current profit or loss. ɧe ᚃ 10. ව ᚃ (2) ව ᚃ 2 ව˟ᆽႩૢ ່ਕΌ d ˟ᆽ ່ਕʊ༆ৰ ʱ f ͉ණྠၾවᛆɛʘ ፄ වd ࠋ d ව d Ԩ ව f ͉ණ ࡌ ࠋ ҷ ɓ ව f ˟ᆽႩ ࿁ᄆ ɝಂฦूf
Page 101
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 100 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (3) Methods for determination of the fair value of financial assets and financial liabilities The Group measures the fair value of financial assets and financial liabilities at the prices in principal market, or in the absence of a principal market, measures the fair value at the prices in the most advantageous market, and use valuation techniques that are appropriate in the circumstances and for which sufficient data and other information are available to measure fair value. The input value used in fair value measurement is divided into three levels: the first level of input value is the unadjusted quotation of the same assets and liabilities that can be obtained on the measurement day in the active market; the second level of input value is the direct or indirect observable input value of related assets and liabilities in addition to the first level input value; the third level of input value is the unobservable input level of related assets and liabilities. The Group prefers the first level of input values, and uses the third level of input values at last. Investment of other equity instruments uses the first level of input values. The level of fair value measurement results is determined by the lowest level of input values which are of great significance to fair value measurement as a whole. ɧe ᚃ 10. ව ᚃ (3) ᆽ ج ږ dʔ ٙ ٙ ቇ͜Ԩ˲ ˕ Դ ᄴϣdуୋɓ ٙ ᚔ̹ఙɪ͊ ݊࠽ א i ࠋא f͉ණྠᎴ ΎԴ͜ ٰ fʮʪ ᄴϣd͟࿁ʮ ɽจ f
Page 102
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 101 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (3) Methods for determination of the fair value of financial assets and financial liabilities (continued) The Group measures the investment of equity instruments at fair value. But in limited cases, if the short-term information used to determine fair value is insufficient, or if the possible estimated amount of fair value is widely distributed, and the cost represents the best estimate of fair value in the range, the cost can represent its proper estimate of fair value in the range of distribution. (4) Elimination between financial assets and financial liabilities The financial assets and liabilities of the Group are shown separately in the balance sheet and are not offset by each other. However, when the following conditions are met at the same time, the net amount offset shall be shown in the balance sheet: a) the Group has a statutory right to set off the recognized amount, and the statutory right is currently enforceable. b) the Group intends to settle its financial assets and liabilities in net amount, or liquidate the financial assets and settle the financial liabilities at the same time. ɧe ᚃ 10. ව ᚃ (3) ᆽ ᚃ ҳ༟˸ʮʪ ؈ ʔ ᕘ ə༈ᇍ d༈ Չί༈ʱбᇍఖʫ࿁ f (4) ቖ වί ת ʫ ΐͪj1)ږ ݊ i 2ྌ˸ ፄ༟ପ වf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 102 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (5) Difference between financial liabilities and equity instruments and relevant measurement The Group distinguishes between financial liabilities and equity instruments in accordance with the following principles: (1) If the Group cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other financial assets, the contractual obligation meets the definition of financial liability. Although some financial instruments do not explicitly contain terms and conditions for the obligation to deliver cash or other financial assets, they may indirectly form contractual obligations through other terms and conditions. (2) If a financial instrument is to be settled with the Group’s own equity instruments, it is necessary to consider whether the Group’s own equity instruments used to settle the instrument are to be used as a substitute for cash or other financial assets, or to enable the holder of the instrument to take residual equity in the assets after the issuer deducts all liabilities. If the former is the case, the instrument is the issuer’s financial liabilities. If the latter is the case, the instrument is the issuer’s equity instrument. In some cases, a financial instrument contract sets that the group shall use or use its own equity instruments to settle the financial instrument, in which the amount of contractual rights or obligations is equal to the number of its own equity instruments available or to be delivered multiplied by the fair value at the time of settlement, whether the amount of the contractual rights or obligations is fixed or changes totally or partially based on the division of this set variables other than the market price of the group’s own equity instruments (such as interest rates, the price of a commodity or the price of a financial instrument), the contract is classified as financial liabilities. ɧe ᚃ 10. ව ᚃ (5) ᗫ ج ࠋ වၾᛆूʈՈj 1)͉ණྠʔঐ Չ˼ ۆ ່f ᆽή̍ ፄ༟ପ່ਕ ૢಛձૢdШϞ̙ঐஷཀՉ˼ ૢಛձૢගટήҖϓΥΝ່ਕf 2̙͜ ͉ණྠІԒᛆूʈՈආБഐၑdც ͉ණྠІ ږ əԴ༈ʈ Ϟ ؈ ࠋ ೯Б˙ ɨdɓධ ̙ ፄʈՈd ᕘഃ ІԒᛆूʈ ʮʪᄆ ږٙ ʱήਿ ̹ఙ ၇ ፄ වf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 103 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 10. Financial Assets and Financial Liabilities (continued) (5) Difference between financial liabilities and equity instruments and relevant measurement (continued) In classifying financial instruments (or their components) in the consolidated statements, the Group takes into account all terms and conditions reached between the members of the Group and the holders of financial instruments. If the group as a whole assumes the obligation to deliver cash, other financial assets or settle accounts in other ways that result in the instrument becoming a financial liability, the instrument should be classified as a financial liability. Where financial instruments or their components are financial liabilities, the relevant interest, dividends (or stock bonus), gains or losses, as well as gains or losses arising from redemption or refinancing, shall be included in the profits and losses of the current period. Where a financial instrument or its components belong to an equity instrument, when it is issued (including refinancing), repurchased, sold or cancelled, the Group shall account as a change of equity, and shall not recognize the change of the fair value of the equity instrument. ɧe ᚃ 10. ව ᚃ (5) ᗫ ᚃ א d Ͻᅇə Ϟ˙ʘග ණྠ ዄ ˸ ٙ ༈ʈՈᏐ වf ࠋ e Ύፄ༟ପ ɝ ಂฦूf ᛆूʈ dՉ೯Б ўΎፄ༟ eΫᒅe ٙ ʮʪ ᜊਗf
Page 105
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 104 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 11. Inventories The inventory of the Group mainly includes raw materials, work in progress, inventory goods, turnover materials, commissioned processing materials, issued goods, contract performance costs, etc. Perpetual inventory system is adopted by the Group. Inventory is valued at actual cost when acquired. Weighted average method and individual valuation method are used to determine the actual cost of the inventory used or issued. Low-value consumption goods and packaging material are amortized at one time when they are used. The net realizable value of inventory of goods, products in progress, and materials used for sale, which are directly used for sale, is determined based on the age of the inventory or the estimated selling price of the inventory minus the estimated selling expenses and related taxes. The net realizable value of material inventory held for production is determined based on the age of the inventory or the estimated selling price of the produced products minus the estimated costs to be incurred until completion, estimated sales expenses, and related taxes. ɧe ᚃ 11. π e ༟e ϓ͉ഃf ܲࣛ ೯̈πdમ͜ Չྼყϓ મ͜ɓϣᔷቖ ආБᛅቖf ഃ πdՉ̙ᜊତଋ ਯᄆಯ ᕘ πdՉ ପ ࠅ ᗫ f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 105 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 12. Contract assets and Contract liabilities (1) Contract assets Contract assets refer to the Group’s right (depends on factors other than passage of time) to collect costs from customers in exchange for goods or services transferred by the Group. If the Group sells two clearly distinguishable goods to its customers, it has the right to collect payment for one of the goods delivered, but the collection depends on the delivery of another commodity, the Group regards the right to collect payment as a contractual asset. The method for determining the expected credit losses of the Group on the contract assets is as shown in note III.10. Financial Assets and Financial Liabilities (1) Financial assets 4) Impairment of financial assets. (2) Contract liabilities Contract liabilities reflect the obligation of the Group to transfer goods to customers for consideration received or receivable from customers. If the customer has already paid the contract consideration or the group has obtained the unconditional right to receive the contract consideration before transferring the goods to the customer, the contract liability shall be recognized based on the received or receivable amount at the earlier of the actual payment by the customer or the due payment. ɧe ᚃ 12. ව (1) ΥΝ༟ପ ˒ᔷ ᛆлd˲ Չ˼ ˒ቖਯՇධ̙ dΪʊʹ˹Չʕɓ ϾϞᛆϗ՟ಛධdШϗ՟༈ d ΥΝ༟ପf ͜ฦ ൗɧe 10ፄ ව (1)ፄ༟ପ 4ږ ࠽ 2) ව Ꮠϗ ٙۜ ʘ ͉ ණྠʊ՟əೌૢϗ՟ΥΝ ˒ྼყ˕˹ಛධ වf
Page 107
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 106 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 13. Contractual costs (1) Method for determining the amount of assets related to contractual costs The Group’s assets related to contractual costs include contract performance costs and contract acquisition costs. The cost of contract performance, that is, the cost incurred by the Group for the performance of the contract, does not fall within the scope of other enterprise accounting standards and meets the following conditions at the same time, is recognized as an asset as the cost of contract performance: the cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing costs (or similar costs), costs and other costs incurred solely as a result of the contract and is clearly undertaken by the customer. The cost increases the Group’s resources for future performance obligations; the cost is expected to be recovered. The acquisition cost of a contract, is the incremental cost expected to be recovered by the Group in order to obtain the contract, and is recognized as an asset as the acquisition cost of the contract; if the amortization period of the asset does not exceed one year, the profits and losses of the current period shall be included in the occurrence of the asset. Incremental cost refers to the cost (such as sales commission) that will not occur if the group does not obtain a contract. Expenditures incurred by the Group for the purpose of obtaining a contract other than the incremental costs expected to be recovered (e.g. travel expenses incurred regardless of whether the contract was acquired) are recorded in the current profits and losses at the time of occurrence, except those clearly undertaken by the customer. ɧe ᚃ 13. ΥΝϓ͉ (1) ֛ ج ༟ପ̍ ϓ͉ձΥΝ՟ϓ͉f ᄵБΥ Չ˼Άุึ တԑɨΐ މ ཫ ટ ᗳ ϓ͉ Չ˼ϓ ༟๕i༈ϓ͉ཫಂ ঐϗΫf ՟Υ ᄣඎϓ͉ཫಂঐϗΫ ɓධ ʔ൴ཀɓϋ ɝಂฦूfᄣඎ ͉ණྠʔ՟ΥΝఱʔ ഃ f eৰཫಂ Չ˼ щ՟ΥΝѩึ೯ ɝ ٙ ৰ̮f
Page 108
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 107 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 13. Contractual costs (2) Amortization of assets related to contractual costs The Group’s assets related to contract costs shall be amortized on the same basis as the commodity income recognition related to the assets, and shall be included in the current profits and losses. (3) Impairment of assets related to contractual costs In determining impairment losses of assets related to contract costs, the Group first determines impairment losses in accordance with other relevant enterprise accounting standards and other assets related to the contract; then determines impairment losses in accordance with their book value higher than the residual consideration expected by the Group for the transfer of commodities related to the asset and estimates the costs to be incurred for the transfer of the related commodities. If the difference between the two items exceeds the allowance for impairment, the provision for impairment shall be calculated and the impairment loss of assets shall be considered. After the factors of impairment in the previous period have changed, and the above-mentioned balance is higher than the book value of the asset, the provision for asset impairment which was originally calculated shall be transferred back to the current profit and loss, but the book value of the asset after the transfer shall not exceed the book value of the asset on the transfer date assumed that the provision for asset impairment is not included. ɧe ᚃ 13. ΥΝϓ͉ (2) ᛅቖ ༟ପમ ϗɝᆽႩ ɝಂฦ ूf (3) ࠽ ٙ Չ eၾΥ ฦ̰i ͉ණྠ ཫಂ ᔷᜫ ϓ͉ ฦ̰f ೯͛ᜊ ࠦ ࠽ ܝ ʔ ɨ༈༟ପίᔷ f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 108 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 14. Long-term Equity Investment Long-term equity investments of the Group comprise the investment towards subsidiaries and investments towards associates and joint ventures. The Group’s judgment on joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of parties sharing control. If the Group holds, directly or indirectly (e.g. through subsidiaries) more than 20% but lower than 50% of the voting power of the investee, it is presumed that the entity has significant influence. If the Group holds, directly or indirectly (e.g. Through subsidiaries) less than 20% of the voting power of the investee, the representation on the board of directors or equivalent governing body of the investee, or participation in financial and operation policy- making process, or the material transaction between the entity and the investee, or expedition of management personnel, or the provision of essential technical information will be considered. A subsidiary company of the Group is the entity that controls the invested unit. As for long-term equity investment acquired through a business combination under common control, the initial recognition are measured in accordance with the proportion of the book value of the owner’s equity of the merged party in ultimately control party’s consolidated financial statements. If the book value of the net assets of the merged party is negative on the date of merger, the cost of long-term equity investment shall be fixed at zero. ɧe ᚃ 14. ᛆҳ༟ ٙ ҳ༟ձ࿁ΥᐄΆุ ҳ༟f Ϟਞ ਞၾ˙ଡ଼ΥණછՓ༈τરdԨ ഄ̀ཀவԬ Νจf ஷཀɿʮ̡ගટኹϞҳ ༟ఊЗ20%50%Ӕ ɽ Ϟҳ༟ఊЗ20%Ӕᛆ ਞ ཀe א Σҳ ر ɽᅂᚤf ٙ ΆุΥԻ՟ ՟ ʕଋ༟ ᛆҳ༟ ٙ ᛆҳ f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 109 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 14. Long-term Equity Investment (continued) If a company acquires the equity of the invested entity under common control step by step through multiple transactions and eventually forms a merger, it shall supplement the method of dealing with the long-term equity investment disclosed in the financial statements of the parent company during the reporting period of acquiring the control right. For example, the investee’s equity is acquired step by step under common control through multiple transactions, and eventually the enterprise merges, which belongs to a package transaction. The Group will treat all transactions as a control transaction. If it does not belong to the package transaction, the initial investment cost of the long-term equity investment shall be the share of the net assets of the merged party in the book value of the final controlling party’s consolidated financial statements on the date of merger. The capital reserve is adjusted by the difference between the initial investment cost and the book value of the long-term equity investment before the merger, plus the sum of the book value of the new share payment on the merger day, and if the capital reserve is insufficient to be reduced, the retained earnings shall be reduced. The initial investment cost is the actual acquisition cost if the long-term equity investment is acquired through a business combination not under common control. ɧe ᚃ 14. ᛆҳ༟ ᚃ ʱӉ՟ΝɓછՓɨҳ d ᚣί ஈ ʱӉ՟ ᛆd௰Җ d͉ණ ʹ d ԮϞΥԻ˙ଋ ሪ ڋٙٙ ҳ༟ϓ͉ၾ༺ՑΥԻ ̋ɪΥԻ˚ ࠽ ᕘdሜ༟͉ʮጐd༟͉ʮጐ dәಯवπϗूf ڗٙ ҳ༟ ϓ͉f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 110 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 14. Long-term Equity Investment (continued) If a company acquires the equity of the invested entity not under common control step by step through multiple transactions and eventually forms a merger, it shall supplement the method of dealing with the cost of long-term equity investment disclosed in the financial statements of the parent company during the reporting period of acquiring the control right. For example, the investee’s shares are acquired step by step through multiple transactions, and eventually a merger of enterprises is formed, which belongs to a package transaction, the Group will treat all transactions as a control transaction. If the transaction does not belong to the package transaction, the initial investment cost shall be accounted for according to the book value of the original equity investment and the sum of the additional investment cost. If the equity held is accounted for by equity method before the acquisition date, the other comprehensive income accounted by the original equity method will not be adjusted temporarily, and when dealing with the investment, the same basis as the assets or liabilities directly disposed of by the invested entity shall be adopted for accounting treatment. If the equity held prior to the purchase date is accounted for at fair value in the financial assets available for sale, the cumulative changes in fair value originally included in other comprehensive gains are transferred to the current investment gains and losses on the consolidation date. ɧe ᚃ 14. ᛆҳ༟ ᚃ ΝɓછՓɨ d ᚣί ᛆҳ༟ϓ͉ ʱӉ՟ ᛆd௰ d ɓධ՟છՓᛆ ɓᜡɿʹ ࠽ ϓ͉ ܵۃ ج ᗫՉ˼ၝΥϗूᅲʔਂሜd ٜ ਿᓾආБ ᛆί̙ d ᜊ ਗίΥԻ˚ᔷɝಂҳ༟ฦूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 111 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 14. Long-term Equity Investment (continued) In addition to the above-mentioned long-term equity investments obtained through enterprise mergers, long- term equity investments obtained by paying cash shall be regarded as investment costs according to the purchase price actually paid; long-term equity investments obtained by issuing equity securities shall be regarded as investment costs according to the fair value of issuing equity securities; long-term equity investments invested by investors shall be regarded as investment costs in accordance with investment contracts or agreements. The Group adopts cost method to account for subsidiary investment and equity method to account for joint venture and joint venture investment. The book value of the cost of long-term equity investment which based on cost method in subsequent measurement will increase according to the fair value of the cost paid by the additional investment and the related transaction costs when additional investment is made. The cash dividend or profit declared by the invested entity shall be recognized as the current investment income according to the amount taken. ɧe ᚃ 14. ᛆҳ༟ ᚃ ᛆҳ ᛆҳ༟d ҳ༟ϓ͉ i ᛆҳ༟d ҳ ᛆҳ༟d ҳ ༟ϓ͉f ၑd ج ၑf ᛆҳ ̋ҳ༟˕˹ ൬ f лᆗd ಂҳ༟ϗूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 112 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 14. Long-term Equity Investment (continued) The book value of long-term equity investment which uses equity method in subsequent measurement will increase or decrease accordingly with the change of owner’s equity of other invested units. Among them, when confirming the share of the net profit and loss of the invested unit, based on the fair value of the identifiable assets of the invested unit at the time of acquiring the investment, and in accordance with the accounting policies and accounting period of the group, and offsetting the internal transaction gains and losses occurring between the joint venture and the joint venture, which belong to the invested enterprise according to the share-holding ratio, the net value of the invested unit shall be calculated. Profit is confirmed after adjustment. When the long-term equity investment is disposed, the difference between its book value and the actual price obtained shall be included in the current investment income. If a long-term equity investment calculated by the equity method is included in the owner’s rights and interests due to other changes in the owner’s rights and interests other than net profit and loss of the invested entity, the portion originally included in the owner’s rights and interests shall be transferred to the current investment profit and loss according to the corresponding proportion when disposing of the investment. ɧe ᚃ 14. ᛆҳ༟ ᚃ ᛆҳ ᜊ ٙ fՉʕίᆽႩᏐԮϞҳ༟ఊ ҳ މ࠽ ಂ ቖၾᑌᐄΆุʿΥᐄΆุʘග ၑ ʱd࿁ҳ༟ఊЗ ᆽႩf ၾྼყ ɝಂҳ༟ϗूf ᛆҳ༟dΪ Չ dஈໄ༈ධ ܲ ᏐˢԷᔷɝಂҳ༟ฦूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 113 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 14. Long-term Equity Investment (continued) If the joint control or significant influence on the invested unit is lost due to the disposal of part of the equity investment, the residual equity after disposal shall be accounted for financial assets available for sale. The difference between the fair value and book value of the remaining equity on the date of the loss of joint control or significant influence shall be included in the current profits and losses. The other comprehensive income of the original equity investment confirmed by the equity method shall be accounted for on the same basis as the assets or liabilities directly disposed of by the invested entity when the equity method is terminated. If the disposal of part of the long-term equity investment loses control over the invested entity, the residual equity after disposal can exercise joint control or exert significant influence on the invested entity, the balance between the book value of the disposal equity and the disposal consideration shall be accounted for as the investment income, and the residual equity shall be accounted for by the equity method after disposal. If the residual equity cannot exert joint control or exert significant influence on the invested unit, it shall be accounted for according to the relevant provisions of the financial assets available for sale. The difference between the book value of the disposal equity and the book value of the disposal equity shall be included in the investment income. The difference between the fair value of the residual equity on the day of losing control and the book value shall be included in the current investment profit and loss. ɧe ᚃ 14. ᛆҳ༟ ᚃ Ϊఄ̰ə࿁ dஈ ፄ༟ପ ɽ ٙ ᛆҳ༟Ϊમ͜ Չ˼ၝΥϗूdί મ͜ၾҳ༟ఊ ਿᓾ ஈଣf ᛆҳ༟ఄ̰ə࿁ҳ ᛆঐ ɽ ᛆሪ ɝҳ༟ϗूd уમ͜ᛆ ᛆ ̋ ٙ ࠦ ɝҳ༟ϗूd ၾ ɝಂҳ༟ฦूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 114 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 14. Long-term Equity Investment (continued) If the transaction from step-by-step disposal to the loss of controlling rights does not belong to the package of transaction, each transaction is accounted for separately. In a “package transaction”, transactions are treated as a transaction to dispose of subsidiaries and lose control rights. However, before the loss of control rights, the difference between the disposal price of each transaction and the book value of the long-term equity investment corresponding to the disposed equity is recognized as other comprehensive income, and when the control rights are lost, it will be transferred to current profits and losses of losing control rights. 15. Investment Properties Investment properties comprise land-use rights and buildings which are held for long-term rental yields and not occupied by the Group, and uncompleted buildings which are intended to hold for rent. Investment properties are initially recognized at cost. The subsequently costs shall be added to the initial costs of the investment properties when the economic benefit related is likely to realize and is measurable. Or else, it should be stated in current profit or loss. ɧe ᚃ 14. ᛆҳ༟ ᚃ ᛆ d࿁ӊ ɓ ɓධஈ ࠇ ӊɓϣ ڗٙ ᕘdᆽႩ Ύɓ ಂฦूf 15. ήପ ɺήԴ͜ᛆ ி d ήପ ܘ ࠇٙ d ɝಂฦूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 115 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 15. Investment Properties (continued) Depreciation (or amortization) of investment properties is calculated using a straight-line method to allocate the depreciable amounts (cost less residual value) over the estimated useful life. Below is the table of estimated useful lives, residual value rate and annual depreciation (amortization) rates: If the usage is changed into owner-occupied, the investment property is reclassified into a property, plant and equipment or an intangible asset since the day the change has been made. On the contrary, the fix or intangible asset is transferred into investment property if the usage of these properties is to earn rentals or capital appreciations. When a transfer occurs, the previous carrying amount shall be used as the new book value. The estimated useful lives, estimated residual value rates and depreciation method shall be annually reviewed and adjusted properly. ɧe ᚃ 15. ήପ ᚃ ̻ѩ ί ٙ ଟʿϋұᔚ ᛅ ቖ ଟΐͪνɨj ଟ(%) ϋұᔚଟ(%) Category Estimated useful life Estimated residual value rates (%) Annual depreciation rate (%) ي30-50ϋ 0.00-5.00 1.90-3.33 Buildings 30-50 years dІ މ ͜ dІҷ ೌҖ༟ପᔷ౬ d˸ᔷ౬ f ࠇ əආБ ԨЪቇሜf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 116 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 15. Investment Properties (continued) An investment property shall be derecognized on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The gains from sale, transfer, written-off or destroy of the investment properties less the carrying amount and relevant taxes shall be recognized in current profit or loss. When an investment property’s recoverable amount is lower than its carrying amount, the carry amount shall be decreased to the recoverable amount. 16. Property, Plant and Equipment (1) Recognition and Initial measurement of property, plant and equipment Property, plant and equipment comprise buildings, machineries, transportations, office equipments end etc. Property, plant and equipment of the group refer to the tangible assets with a service life of more than one year held for the production of goods, provision of labor services, lease or operation and management. Property, plant and equipment are recognized when it is probable that the future economic benefits associated with the assets will flow into the entity, and the cost of the asset can be measured reliably. It is recognized at purchase cost or construction cost for the initial cost. The state owned property, plant and equipment were recognized at the evaluation price during the system-changing of the state-owned enterprise. ɧe ᚃ 15. ήପ ᚃ ͑ɮৗ̈ ʔঐՉஈໄʕ՟л ήପfҳ ٙ ܝ ɝಂฦूf Չሪ ᕘf 16. ༟ପ (1) ඎ eዚኜ ண௪e༶፩ʈՈe፬ʮʿཥɿண௪ ՈϞ eԶ௶ dԴ ϞҖ༟ପf ܘ ɝ͉ණྠe˲Չϓ͉ঐ̙ ٙܔ ڋ ܔ ༟ପd ൙П f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 117 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 16. Property, Plant and Equipment (continued) (1) Recognition and Initial measurement of property, plant and equipment (continued) Subsequent recognition is recorded when the future economic benefits associated with the asset is likely to flow into the entity and the cost of the asset can be measured reliably. The value of the replaced part shall be derecognized its carrying amount. The other subsequent expenses are recognized in the current profit or loss. (2) Depreciation of property, plant and equipment Depreciation is calculated using a straight-line method to allocate the depreciable amounts (cost less residual value) over the estimated useful life. As for the property, plant and equipment with impairment provisions, the Depreciation is calculated using a straight-line method to allocate the depreciable amounts (cost less residual and impairment value) over the estimated useful life. ɧe ᚃ 16. ༟ପ ᚃ (1) ඎ ᚃ ᚃ˕̈dίၾ ɝ͉ ࠇ ϞՉ ɝಂฦूf (2) ج Ԩ ܝ࠽ ə ί͊Ըಂ ࠽ ұᔚᕘf ଟ(%) ϋұᔚଟ(%) Number Category Estimated useful lives (years) Estimated residual value (%) Annual depreciation rate (%) 1ي20-50 3.00-5.00 1.90-4.85 Buildings 2 ዚኜண௪ 7-28 5.00 3.39-13.57 Machinery equipments 3 ༶፩ʈՈ 6-12 5.00 7.92-15.83 Transportations 4 ፬ʮʿཥɿண௪ 3-14 5.00 6.79-31.67 Office equipments
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 118 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 16. Property, Plant and Equipment (continued) (2) Depreciation of property, plant and equipment (continued) The estimated useful lives, estimated residual value rate and depreciation method shall be annually reviewed and adjusted properly. When the recoverable amount of property, plant and equipment is lower than the carrying amounts, the carrying amounts shall be decreased to the recoverable amounts. (3) Disposal of property, plant and equipment The property, plant and equipment should be derecognized on disposal or when the property, plant and equipment is permanently withdrawn from use and no future economic benefits are expected from its disposal. The gains from sale, transfer, written- off or destroy of the property, plant and equipment less the carrying amount and relevant taxes shall be recognized in current profit or loss. 17. Construction in Progress Construction in progress is recognized according to the actual costs. The actual costs include construction cost, installment cost, borrowing costs eligible for capitalization and other necessary expenses incurred in order to make the construction in progress ready to use. When construction in progress reaches the predetermined usable state, it should be transferred to fixed asset and be depreciated from the next month. When the recoverable amount of construction in progress is lower than the carrying amount, the carrying amount shall be decreased to the recoverable amount. ɧe ᚃ 16. ༟ପ ᚃ (2) ᚃ ࠇ ԨЪቇሜf Չ ಯাЇ̙ϗ ᕘf (3) ஈໄ ཫಂஷཀ d ༟ପ̈ ஈໄϗɝ ٙܝ ɝಂฦूf 17. ʈ ࿒ʘ˚ৎd ʈྼყϓ͉ഃd ༟ପdϣ˜ৎක ܝ ମආБሜf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 119 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 18. Borrowings costs General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Capitalization should cease when substantially all of the activities necessary to prepare the asset for its intended use or sale are complete. Capitalization should be suspended during periods in which active development is interrupted abnormally for more than 3 months. And it recapitalized when the abnormal interruption is over. The actual interest costs incurred by the funds borrowed specifically less the interest earned by the unused part deposited in the bank or any income earned on the temporary investment shall be capitalized; where funds are part of a general pool, the eligible amount is determined by applying a capitalization rate to the expenditure on that asset. The capitalization rate will be the weighted average of the borrowing costs applicable to the general pool. ɧe ᚃ 18. ಛ൬͜ ̙Դ ಛ൬͜dί༟ Դ༟ପ ਗ ɝ༈༟ପ ̙Դ͜ ಛ൬ ਗ ගஹᚃ൴ ཀ3ٜ f ൬͜dϔ ٙ ҳ༟ ࣬ ༟ ಛ ᕘf༟͉ʷ f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 120 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 19. Right-of-use assets Right-of-use assets refer to the right of the Group as a lessee to use leased assets during the lease term. The types of leased assets of the Group mainly include buildings, machinery and equipment and site use rights. (1) Initial measurement At the start of the lease period, the Group initially measures the right-of-use asset at cost. The cost includes the following four items: (i) The initial measurement amount of the lease liability, that is, the present value of the outstanding lease payments is recognized as the lease liability, except for short- term leases and leases of low-value assets; (ii) Lease payments paid on or before the start of the lease period, where lease incentives exist, deduct the relevant amount of lease incentives already enjoyed; (iii) The initial direct costs incurred, that is, the incremental costs incurred to reach the lease; (iv) Expected costs incurred to demolish and remove leased assets, rehabilitate the site where the leased assets are located, or restore leased assets to the state agreed in the lease terms, except for costs incurred for the production of inventory. (2) Subsequent measurement After the start of the lease period, the Group adopts a cost model for subsequent measurement of the right-of-use asset, that is, the cost-of-use asset is measured at cost less accumulated depreciation and accumulated impairment losses. If the Group remeasures the lease liability in accordance with the relevant provisions of the lease standards, the book value of the right-of-use asset shall be adjusted accordingly. ɧe ᚃ 19. Դ͜ᛆ༟ପ ॡɛ̙ ᛆлf͉ණ e ዚኜண௪ʿఙήԴ͜ᛆf (1) ඎ ϓ͉ ඎf༈ϓ ڋٙ ॡ༣ වd ༟ପॡ༣ৰ̮iǻ ॡ dϔৰ ᕘiǼ೯ ༺ϓॡ༣ ՝ʿ ίఙ ూЇॡ༣ૢಛ ৰ̮f (2) ඎ d͉ණྠમ͜ϓ ࠇ ಯ ඎԴ͜ᛆ༟ପf ֛ࠠ ᏐሜԴ͜ f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 121 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 19. Right-of-use assets (continued) (3) Depreciation of right-of-use assets From the start of the lease period, the Group depreciates the right-of-use assets. The right-of- use asset is generally depreciated from the month in which the lease term begins. The amount of depreciation accrued is included in the cost of the relevant asset or the current profit or loss based on the use of the right-of-use asset. When determining the depreciation method of the right-of-use asset, the Group makes a decision based on the expected consumption of the economic benefits related to the right-of-use asset, and depreciates the right-of-use asset on a straight-line basis. When determining the depreciation period of the right-of-use asset, the Group adheres to the following principles: If it can reasonably determine the ownership of the leased asset at the end of the lease period, depreciation will be accrued within the remaining useful life of the leased asset; it cannot be reasonably determined that the lease can be obtained when the lease period expires For asset ownership, depreciation is accrued during the shortest period between the lease term and the remaining useful life of the leased asset. If the right-of-use asset is impaired, the Group depreciates the book value of the right-of-use asset after deducting impairment losses. ɧe ᚃ 19. Դ͜ᛆ༟ପ ᚃ (3) ұᔚ ˚ৎd͉ණྠ࿁Դ͜ ұᔚfԴ͜ᛆ༟ପஷ੬ ࠇ ٙ ಂฦूf ұᔚ˙ d ұᔚf ұᔚ jঐΥଣ ՟ॡ༣༟ପ dίॡ༣༟ପ௵ቱԴ͜ྪ ॡ༣ Ϟ dίॡ༣ಂၾॡ༣༟ପ௵ቱԴ ұᔚf d͉ණྠ Դ͜ᛆ ᚃұᔚf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 122 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 20. Intangible Assets Intangible assets comprise the land-use rights, technical know-how, brand, customer relationships, franchise rights and software etc, it is recognized at cost. The state-owned intangible assets were recognized at the evaluation price during the system-changing of the state-owned enterprise. (1) Categories of intangible assets 1) Land-use right Depreciation is calculated using a straight-line method to allocate the depreciable amounts over the useful life of 30 to 50 years. If it is difficult to identify the purchase price of the land-use right to that of the building, the whole price is recognized as a fixed asset. 2) Technical know-how The proprietary technology invested by the owner shall be recorded at the value confirmed by both parties at the time of investment, and shall be evenly amortized over an estimated useful life of 5-10 years. The proprietary technology acquired by the Group through external purchases is accounted for at the time of purchase and amortized on a straight-line basis over an estimated useful life of 5 to 10 years. ɧe ᚃ 20. ೌҖ༟ପ ɺήԴ͜ᛆeਖ਼ϞҦஔe eतᐄᛆʿழഃd ؇ٰٰ ژ f (1) ೌҖ༟ପᗳй 1) ɺήԴ͜ᛆ ࠢ30Ї 50ϋ̻ѩᛅቖ f ̮ᒅɺήʿ ᄆಛᗭ˸ίɺήԴ ʘගΥଣʱৣ ༟ପf 2 ਖ਼ϞҦஔ ࠽ ਖ਼ϞҦ ϓ͉ɝ੮f ࠢ5 Ї10ϋ̻ѩᛅቖf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 123 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 20. Intangible Assets (continued) (1) Categories of intangible assets (continued) 3) Brand and customer relationships The brand and customer relationships were mainly generated by the acquisition of subsidiaries by the Group, and were recorded based on the evaluation results at the time of acquisition. The trademark is an intangible asset with an uncertain useful life, which does not need to be amortized during the holding period and is subject to impairment testing in each accounting period; Customer relationships are amortized on a straight-line basis over an estimated useful life of 10-12 years. 4) Software Software licenses are capitalized by the purchase price and are amortized over their estimated useful lives of 2-10 years. ɧe ᚃ 20. ೌҖ༟ପ ᚃ (1) ೌҖ༟ପᗳй ᚃ 3 ڷ ͉ණ ϗ ɝ੮ f Չʕ ೌ Ϟಂගೌცᛅ ಂගආБಯ ᇞ ࠢ10-12ϋ̻ ѩᛅቖf 4 ழ ᄆ ࠢ 2-10ϋ̻ѩᛅቖf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 124 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 20. Intangible Assets (continued) (1) Categories of intangible assets (continued) 5) Franchise rights The Group engages in certain service concession arrangements in which the Group carries out construction work for the granting authority and receives in exchange a right to operate the assets concerned in accordance with the pre-established conditions set by the granting authority. The franchise rights are classified as intangible assets or accounts receivable from the granting authority. According to the contract, in a certain period after the construction, the Group is entitled to receive a certain amount of monetary resources or other financial assets from the granting authority; or when the charge for the user is lower than a certain limitation, the granting authority will compensate for the difference, which is shown as financial assets while the Group recognize the revenue. Also if the operator receives a right to charge user within a certain period, but the amount is uncertain and unable to claim a right for accounts receivable, it is stated as an intangible asset while recognizing the revenue. ɧe ᚃ 20. ೌҖ༟ପ ᚃ (1) ೌҖ༟ପᗳй ᚃ 5 तᐄᛆ ਕत બᛆ બᛆ ண d ˸౬՟ ᐄᛆ f त ೌҖ બ ಛධf ٙܝ ಂගʫ d ̙˸ೌૢή ٙ i ϗ൬Э ɨ d ப d ίᆽႩϗ ፄ༟ପf ܔ݄ ಂග ࿁ ᕘʔᆽ d ༈ᛆлʔϓɓධೌ ᛆл d ίᆽ ᆽႩೌҖ༟ପf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 125 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 20. Intangible Assets (continued) (1) Categories of intangible assets (continued) 5) Franchise rights (continued) If intangible assets model is applicable, the Group classifies the relevant non-current assets linked to the long-term investment in these franchise arrangements as “franchise rights” within under intangible assets classification on the consolidated balance sheet. Once the relevant infrastructure projects under the franchise arrangements have been completed, the franchise rights will be amortized over the term of the franchise period on the straight-line basis under the intangible assets model. If financial assets model is applicable, the Group classifies the assets under these franchise arrangements as financial assets on the consolidated balance sheet. Once the relevant infrastructure projects under the franchise arrangements have been completed, the interest of financial assets will be calculated using effective interest rate method and related gain/(loss) will be charged to the profit or loss within the franchise period. 6) Research and development Internal research and development costs will be separated into research expenditure and development cost based on their nature and whether there is great uncertainty of the research and development will finally form an intangible asset. ɧe ᚃ 20. ೌҖ༟ପ ᚃ (1) ೌҖ༟ପᗳй ᚃ 5 तᐄᛆ ᚃ ͉ ණྠึਗ਼༈ഃतᐄτર ༟ପ ʫΐЪೌҖ༟ପᗳй त ධͦ ࣬ ኽೌҖ༟ପᅼόίतᐄ ආБᛅቖf ͉ ණྠਗ਼༈ഃतᐄτરɨ ʫΐਂ तᐄτર ږ ԨᆽႩ ฦूf 6 Ӻၾක೯ ኽ ਗ௰Җ щՈϞ༰ɽʔ ˕ ˕̈f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 126 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 20. Intangible Assets (continued) (1) Categories of intangible assets (continued) 6) Research and development (continued) Research expenditure is recognized as expenses as incurred. Costs incurred on development projects are recognized as intangible assets when all the following criteria are fulfilled: (a) It is technically feasible to complete the intangible asset so that it will be available for use or sale; (b) Management intends to complete the intangible asset to use or sell it; (c) It can be demonstrated how the intangible asset will generate probable future economic benefits; (d) Adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available; (e) The expenditure attributable to the intangible asset during its development can be reliably measured. ɧe ᚃ 20. ೌҖ༟ପ ᚃ (1) ೌҖ༟ପᗳй ᚃ 6 Ӻၾක೯ ᚃ ࣛ ٙݬ d ʚ˸༟͉ʷj Ǻ ҁϓ༈ೌҖ༟ପ˸ԴՉ ̈ਯίҦஔ i ǻ ၍ଣᄴՈϞҁϓ༈ೌҖ จ ྡi Ǽ ༈ೌҖ༟ପਗ਼ νОପ͛лूi ǽ Ҧஔ e ৌਕ༟ d ˸ ක ̈ ਯ༈ೌҖ༟ପi Ǿ ༈ೌҖ༟ପක೯ ˕̈ঐ̙ቦή ඎf
Page 128
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 127 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 20. Intangible Assets (continued) (1) Categories of intangible assets (continued) 6) Research and development (continued) If development costs don’t meet the above criteria, they are recognized as an expense as incurred. Development costs previously recognized as an expense cannot be reclassified as an intangible asset in subsequent periods. Capitalized costs are recorded as development expenditures on balance sheet and are transferred into intangible assets only after technical and commercial feasibility of the asset for sale or use have been established. (2) Impairment of intangible assets When the recoverable amount is lower than its carrying amount, the carrying amount of the asset shall be written down to the recoverable amount. (3) Regular review of the useful lives and the amortization method As for intangible asset with a definite useful life, the useful lives and depreciation method shall be annually reviewed and adjusted properly. ɧe ᚃ 20. ೌҖ༟ପ ᚃ (1) ೌҖ༟ପᗳй ᚃ 6 Ӻၾක೯ ᚃ ݬ ɝಂ ɝฦू ࠠ ٙ ව ක೯˕̈ d І༈ ͜ʘ˚ৎᔷ ೌҖ༟ପf (2) ࠽ Չ ಯাЇ̙ϗ ᕘf (3) ج ཫ ӊϋϋ ԨЪቇሜf
Page 129
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 128 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 21. Impairment of long-term assets At the end of each reporting period, long-term equity investments, investment property carried at cost, property, plant and equipment, construction in progress, right-of- use asset, intangible assets with definite useful lives and operating lease assets are assessed for impairment by the Group when there is any indication that an asset may be impaired. Goodwill and intangible assets with indefinite useful lives shall be assessed for impairment at the end of each reporting period no matter there is any indication for impairment or not. The recoverable amount is the higher of an asset’s fair value less costs of disposal and its value in use. The recoverable amount should be determined for an individual asset. If it is not possible to determine the recoverable amount for an individual asset, the recoverable amount shall be determined for cash- generating units in which the asset included. The identification of an asset’s cash-generating unit shall be based on whether the main cash inflows generated by the asset’s cash-generating unit are independent of the cash inflows from other assets or cash-generating units. When the recoverable amount of an asset or a cash-generating unit is less than its carrying amount, the carrying amount shall be written down to its recoverable amount. The reduction shall be recognised as the current profit or loss, and the corresponding provision for impairment of assets is also recognised. ɧe ᚃ 21. ࠽ ᛆ ή ʈeԴ͜ᛆ༟ପe ೌҖ༟ପeᐄॡ༣༟ d ༊f࿁ਠᚑձԴ͜ྪ щπίಯ ༊f ಯ̘ஈ ݴږ f͉ණྠ ᕘi ࠇ ֛ d щዹͭ Ա ᕘЭ ࠽ ɝ ௪f
Page 130
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 129 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 21. Impairment of long-term assets (continued) When testing the impairment of relevant cash-generating units or groups of cash-generating units containing goodwill, if there are signs of impairment of cash- generating units or groups of cash-generating units related to goodwill, the impairment test of cash-generating units or cash-generating units without goodwill is carried out first, and the recoverable amount is calculated to confirm the corresponding impairment loss. Then the impairment test is carried out on the cash-generating units or groups of cash-generating units containing goodwill, and the carrying amount and the recoverable amount are compared. If the recoverable amount is lower than the carrying amount, the impairment loss is allocated first to reduce the carrying amount of goodwill allocated to the cash-generating units or groups of cash-generating units; and then, reduce the carrying amounts of the other assets included in the cash-generating units or groups of cash- generating units pro rata on the basis. Reversal of an impairment loss for the above assets is prohibited. 22. Long-term deferred expenses Long-term deferred expenses include the improvement expenditures of property, plant and equipment under operating lease, and other expenses which incurred in the current period but are required to be amortized for more than one fiscal period. Long-term deferred expenses are amortized on the straight-line basis over the expected benefit period and are recorded as the actual expenses less the accumulated amortization. As for the molds stated in the long-term deferred expenses, the service life average method is used to apportion them to the benefit period. ɧe ᚃ 21. ᚃ ༟ପଡ଼ଡ଼ ༟ d ༟ପଡ଼ ᕘd ࿁̍ўਠᚑ ༊d ᕘdν̙ϗ ᕘ ༟ପଡ଼ଡ଼Υ ٫א Չ˼ධ༟ ಯՉ f ܝ ಂගʔʚᔷΫf 22. ᛅ൬͜ ༟ପҷ ධ աूಂගʱಂ̻ѩᛅቖd ଋᕘΐ ͪf ࠢ ʱᛅЇաूಂගf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 130 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 23. Employee Benefits Employee benefits of the Group refer to rewards or compensations paid for services provided by employees or employer layoffs benefits, which include short-term employee benefits, post-employment benefits, termination benefits and other long-term employee benefits. Short-term employee benefits include salaries, bonus, allowance and subsidies, staff benefits, medical insurance, employment injury insurance, maternity insurance, housing fund, union and educational appropriations, short-term paid absences, etc. Short-term benefits are recognized as liabilities during the accounting period when employees render service to the Group. Employee benefits are recognized as profit or loss in the current period or allocated to the cost of related assets. The non-monetary benefits are measured at fair value. Post-employment benefit schemes are classified as defined contribution plan and defined benefit plan. Defined contribution plans of the Group are a kind of post-employment benefit scheme in which the Group pays fixed fees to an independent fund and is no longer obligated to make further payments. Defined benefit plans are post-employment benefit plans other than a defined contribution plans. The post-employment benefits of the Group mainly refer to basic pension and unemployment insurance during this reporting period, both of which belong to the defined contribution plan. ɧe ᚃ 23. ᔖʈᑚཇ ٙ ٙ ၅ ಂᔖʈ၅лഃf ൨ձ൨e ᎈ൬e eʈึձԃ ൬eಂ੭ᑚॹාഃf͉ණྠίᔖʈ א ܲ ඎf ྌ d ၅л ྌ జѓಂʫd ʈᖮॶ ண ྌf
Page 132
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 131 ɧe ᚃ 23. ᔖʈᑚཇ ᚃ ڭ ᎈf ᎈ ึਿ͉ ᎈ൬fᔖ Ϟ f ಂගdਗ਼ ᕘᆽ ᗫ༟ପ ϓ͉f ༆ৰၾ ོᎸᔖʈІᗴ ટաಯϾ̈ഗʚᎵdί͉ණྠʔ ಯ ࠠٙ ੑϘ˚dᆽႩ ഗʚᎵϾପ ɝಂฦूf III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 23. Employee Benefits (continued) Employees of the Group are all involved in employee’s endowment insurance policy implemented by local labour and social security department. The Group makes the monthly payment to the local institution of employee’s endowment insurance at a regulated base and proportion. After employees are retired, local labour and social security department has the obligation to pay their basic pension. The payment made according to the policy when employee render service to the Group is recognized as a liability and stated as profit or loss or allocated to the cost of related assets during the period. Termination benefits are the compensations made to employees when the Group terminates the employment relationship with employees prior to the expire of the employment contracts or provides compensations as an offer to encourage employees to accept voluntary layoffs. When the Group provides termination benefits, the employment benefit liabilities generated from termination benefits are recognized to profit or loss in the current period on the early date of the followings: (a) when the Group can no longer withdraw the offer of those benefits or layoff plans unilaterally; and (b) when the Group recognizes costs for a restructuring related to termination benefits.
Page 133
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 132 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 23. Employee Benefits (continued) The Group offers early retirement benefit for the employees who accept the internal retirement arrangement. Early retirement benefit refers to the wages and social insurance paid for the employees who do not attain the statutory retirement age and being approved by the Group’s management team for retirement. The Group will pay such retirement benefit for the early retired employee from the date of early retirement to date where statutory retirement age is attained. The basis of accounting treatment for early retirement benefits shall be the same as the termination benefits. If the recognition conditions for termination benefits were satisfied, the employment benefit liabilities generated from wages and social insurance paid for the early retired employees shall be recognized to profit or loss in the current period all at once. Any difference arising from the changes of actuarial assumptions or adjustment of the welfare standard shall be included to the profit and loss in the current period. ɧe ᚃ 23. ᔖʈᑚཇ ᚃ ᔖʈԶ dΣ͊༺Ց ৗ;ϋᙧe͉ණྠ၍ଣᄴҭ ʈ༟ ᎈ൬ഃf͉ණྠІ ʘ˚ৎЇᔖʈ༺Ց͍ ੬ৗ;ϋᙧ˟dΣʫৗᔖʈ˕˹ʫৗ ʫৗ၅лd͉ණྠˢᗘ ஈଣdίୌΥᗘৗ၅л ʫৗᔖ މ ɝಂฦूfʫৗ၅л ٙ ɝಂฦूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 133 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 24. Lease liabilities (1) Initial measurement The Group initially measures lease liabilities based on the present value of lease payments that have not been paid at the start of the lease period, except for short-term leases and leases of low-value assets. 1) Lease payment Lease payments refer to payments made by the Group to the lessor related to the right to use leased assets during the lease period, including: (i) fixed payments and substantial fixed payments, where lease incentives exist, deductions related to lease incentives; (ii) A variable lease payment that depends on the index or ratio, which is determined at the initial measurement based on the index or ratio on the start date of the lease period; (iii) The Group reasonably determines the exercise option purchase price when the purchase option is exercised; (iv) The lease term reflects the amount to be paid when the Group will exercise the option to terminate the lease; (v) The amount expected to be paid based on the residual value of the guarantee provided by the Group. ɧe ᚃ 24. ව (1) ඎ ͊˕ ࠋ ඎdಂॡ༣ձЭᄆ ༟ପॡ༣ৰ̮f 1) ॡ༣˹ಛᕘ ͉ණྠΣ ၾίॡ༣ಂʫ ٙ ˹ಛᕘ ˹ಛᕘ d πίॡ ˢ ̙ᜊॡ༣˹ಛᕘ d ༈ಛ ኽॡ༣ಂ i ਗ਼БԴᒅ ٙ ̈ ͉ණྠਗ਼БԴ˟ॡ༣፯ d БԴ˟ॡ༣፯ᛆ ኽ͉ණ Ꮠ˕ ಛධf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 134 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 24. Lease liabilities (continued) (1) Initial measurement (continued) 2) Discount rate In calculating the present value of lease payments, the Group uses the incremental borrowing rate as the discount rate because it cannot determine the interest rate inherent in the lease. The incremental borrowing interest rate refers to the interest rate payable by the Group to borrow funds with similar mortgage conditions in similar periods in order to obtain assets close to the value of the right-of-use asset in a similar economic environment. The interest rate is related to the following: (i) The Group’s own situation, namely the group’s solvency and credit status; (ii) The term of the “borrowing”, that is, the lease term; (iii) The amount of “borrowed” funds, that is, the amount of the lease liability; (iv) “Mortgage conditions”, that is, the nature and quality of the underlying assets; (v) Economic environment, including the jurisdiction in which the lessee is located, the currency of valuation, the time of signing the contract, etc. Based on the bank loan interest rate, the Group adjusted the above factors to obtain the incremental borrowing interest rate. ɧe ᚃ 24. ව ᚃ (1) ඎ ᚃ 2 ұତଟ d ॡ༣ʫў ಛлଟ ಛл ͉ණྠίᗳЧ ᐏၾԴ͜ᛆ༟ପ ༟ପ d ίᗳЧಂ ږ лଟ f ༈лଟၾɨ ᗫ j Ǻ͉ණྠІԒ Ꮅවঐɢձ d ٙږ ᕘ i ༟ପ ሯձሯඎiǾᐑྤd ၍ᒍ ࣛࠈ ගഃ f ͉ණྠ˸ვБ൲ಛл Ϊ९ආ ಛл ଟf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 135 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 24. Lease liabilities (continued) (2) Subsequent measurement After the start of the lease period, the Group conducts subsequent measurement of the lease liability according to the following principles: (i) When confirming the interest of the lease liability, increase the carrying amount of the lease liability; (ii) When paying the lease payment, reduce the carrying amount of the lease liability; (iii) When the lease payment changes due to revaluation or lease change, the book value of the lease liability is remeasured. The interest expense of the lease liability in each period of the lease period is calculated at a fixed periodic interest rate and is included in the current profit and loss, except for those that should be capitalized. Recurring interest rate refers to the discount rate used by the Group in the initial measurement of lease liabilities, or when lease payments need to be remeasured at a revised discount rate due to changes in lease payments or lease changes, The revised discount rate adopted by the group. ɧe ᚃ 24. ව ᚃ (2) ඎ ˸ɨ ඎjǺ dᄣ̋ॡ༣ ᕘiǻ˕˹ॡ༣˹ಛ ᕘi ߧ ඎ f ࠋ ൬͜d ٙ ͉ණྠ࿁ॡ ұ Ϊॡ༣˹ಛᕘ೯͛ᜊਗ ұ d ұତଟf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 136 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 24. Lease liabilities (continued) (3) Remeasurement After the start of the lease period, when the following circumstances occur, the Group remeasures the lease liability based on the changed lease payments and the present value calculated by the revised discount rate, and adjusts the book value of the right-of-use asset accordingly. If the carrying value of the right-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced, the Group will include the remaining amount in the current profit and loss. (i) Changes in the actual fixed payment amount; (ii) Changes in the expected payable amount of the residual value; (iii) Changes in the index or ratio used to determine the lease payment amount; (iv) The evaluation result of the purchase option changes; (v) Changes in the evaluation results or actual exercise of lease options. 25. Provisions Current obligations arising from external guarantees, pending litigation or arbitration, product quality assurance, acceptance bills converted into cash, etc., are recognized as estimated liabilities when the fulfillment of such obligations is likely to result in the outflow of economic benefits and the amount can be reliably measured. The amount recognized as a provision is the best estimate of the expenditure required to perform the present obligation. Lots of factors, such as risks and uncertainties that surround the underlying events and the time value of money etc, are taken into account. Where the effect of time value of money is material, the best estimate shall be the present value of the future cash flow. Where discounting is used, the increase of a provision to reflect the passage of time shall be recognized as borrowing costs. ɧe ᚃ 24. ව ᚃ (3) ඎ d೯͛ɨΐઋҖ ॡ༣˹ಛᕘ ࠠ࠽ ᏐሜԴ͜ ٙ ව d͉ණྠਗ਼௵ቱ ˹ Ꮠ ॡ༣ ˢଟ೯͛ᜊਗiǽ ೯͛ᜊʷi ٙ ೯͛ᜊʷf 25. ව ሯ ࣛ л d වf ც˕ ඎdԨၝΥ ֛ ࠽ ̈ ࣛ ࠇ ࢹ ൬͜f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 137 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 25. Provisions (continued) Provisions shall be reviewed as at balance sheet date and adjusted to reflect the current best estimates. Provisions expected to be paid within a year since balance sheet day are presented as current liabilities. 26. Revenue Recognition and Measurement The Group’s operating revenue mainly includes sales revenue of goods, revenue of providing services, revenue of EPC construction contract, interest income, revenue of leasing contract, etc. (1) Revenue recognition The Group shall recognize revenue when the Group satisfies the performance obligation of the contract, that is, the customer obtains control of relevant goods or services. Control of a good or service refers to the ability to direct the use of the good or service, and obtain substantially all of the benefits from the goods or services. When the contract contains two or more performance obligations, on the inception of the contract, the transaction price is allocated to each separate performance obligation in proportion to the stand- alone price of the promised goods or services, and the revenue is recognized according to the transaction price allocated to each performance obligation. ɧe ᚃ 25. ව ᚃ ᄆ ۃ ᅰf ٙ වf 26. ج ቖਯϗ ਕϗɝeEPCிΥΝϗɝe ϗɝeॡ༣ΥΝϗɝഃf (1) ۆࡡ ່ ਕ ᗫ ঐ˴ Զ лूf ່ਕ ࡈ ਕ ᄆ ʱ ࣸ ඎϗɝf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 138 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 26. Revenue Recognition and Measurement (continued) (1) Revenue recognition (continued) The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. The transaction price confirmed by the Group does not exceed the amount that is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. An entity shall recognize a refund liability if the entity expects to refund some or all of the consideration to the customer which is not included in the transaction price. Where there is significant financing component in the contract, the Group shall determine the transaction price on the basis of the amount payable in cash when the customer assumes control of the goods or services. The difference between the transaction price and the contract consideration shall be amortized by the effective interest rate method during the contract period. The Group shall not take into account the existence of a significant financing component in the contract if the Group expects, at contract inception, that the period between when the customer acquires the control of a promised good or service and when the customer pays for that good or service will be one year or less. If the customer is expected to acquire control of the goods or services more than one year after the customer pays the price, The Group shall consider the significant financing element in the contract. ɧe ᚃ 26. ᚃ (1) ᚃ ˒ᔷᜫ ࿁ ಛ ʔ൴ཀ ʊᆽႩ ږٙ މ fΥΝʕπί ֛ у ᄆ ٙ ᕘdίΥΝಂගʫમ͜ྼყлଟ ࠇ ܄ dʔ ɽፄ༟ϓʱi ਕછՓᛆ d ɽፄ༟ϓʱf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 139 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 26. Revenue Recognition and Measurement (continued) (1) Revenue recognition (continued) The Group satisfies a performance obligation over time, if one of the following criteria is met; otherwise, it satisfies a performance obligation at a point in time: (i) the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs; (ii) the customer can control the asset which is created by the Group’s performance; (iii) the Group’s performance does not create an asset with an alternative use and the Group has an enforceable right to payment for performance completed to date during the whole contract period. For a performance obligation satisfied over time, the Group shall recognize revenue over time by measuring the process towards complete satisfaction of the performance obligation. If the Group cannot be able to reasonably measure the progress towards complete satisfaction of a performance obligation and the costs incurred by the Group can be expected to be compensated, the revenue shall be recognized according to the costs incurred until such time that it can reasonably measure the process towards complete satisfaction of the performance obligation. ɧe ᚃ 26. ᚃ (1) ᚃ d ͉ණྠ᙮ ່ਕ i ່ у ٙ ˒ঐછՓ͉ණྠ fǼί͉ණ ՈϞ Υ Їʦʊҁϓ ʱϗ՟ಛධf ່ ߒ ֛ ֛ ঐ ϓ ঐ ˟f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 140 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 26. Revenue Recognition and Measurement (continued) (1) Revenue recognition (continued) For a performance obligation satisfied at a point in time, the Group shall recognize revenue when the customer obtains control of relevant goods or services. In judging whether customers obtain control of promised goods or services, the Group considers the following indications: (a) the Group has a present right to the payment for the goods or services; (b) the Group has transferred the legal title of the goods to customers; (c) the Group has transferred physical possession of the goods to customers; (d) the group has transferred the significant risks and rewards of the ownership to the customers; (e) customers have accepted the goods or services. (2) Specific accounting policies related to the Group’s main revenue-generating activities are described below: (a) Sales contracts Sales contracts between the Group and its customers usually contain only the performance obligation to transfer goods. The Group usually takes into account the following factors and identifies revenue at the time when the customer accepts the goods: the present right to the payment for the good; the transfer of the significant risks and rewards in the ownership of commodities; the transfer of legal ownership of commodities; the transfer of physical possession of the goods, and the acceptance of goods by customers. ɧe ᚃ 26. ᚃ (1) ᚃ ່ਕd ਕ ˒ d ͉ණྠϽᅇɨΐ༦jǺ͉ණྠఱ ϗಛᛆлi Ϟ ˒iǼ͉ණྠʊਗ਼༈ਠ ˒iǽ͉ණྠʊ ᎈձ ˒ʊટա༈ ਕഃf (2) ᗫ νɨj Ǻ ϗɝ ቖਯਠ ۜ ່ਕ f ͉ණྠஷ੬ί ਿᓾ ᓃᆽ ϗ ˴ ۜ ۜ ˒ટա f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 141 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 26. Revenue Recognition and Measurement (continued) (2) Specific accounting policies related to the Group’s main revenue-generating activities are described below: (continued) (b) Service contracts Services contracts between the Group and its customers usually include performance obligations such as technical services, product after-sales maintenance services, etc. Since the Group’s customers simultaneously receive and consume the benefits provided by the Group’s performance as the Group performs, and the Group has an enforceable right to payment for performance completed to date during the whole contract period, the Group will recognize it as a performance obligation satisfied over time and recognize revenue according to the progress of performance, except that the progress of performance cannot be reasonably determined. The Group determines the progress of service delivery according to the input method. If the costs incurred by the Group can be expected to be compensated, the revenue shall be recognized according to the costs incurred until such time that it can reasonably measure the process towards complete satisfaction of the performance obligation. ɧe ᚃ 26. ᚃ (2) ᗫ νɨj ᚃ ǻ ਕϗɝ ਕ e ່ ࣛ ˒у՟Ԩऊঃ͉ණྠᄵ лू d ˲͉ ΥΝಂගʫϞᛆ ʱϗɝಛධ d ͉ණྠਗ਼ՉЪ ߒ ᆽႩϗ ֛ ج f ֛ ϓ͉ ᕘᆽႩϗ ঐΥଣ ˟f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 142 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 26. Revenue Recognition and Measurement (continued) (2) Specific accounting policies related to the Group’s main revenue-generating activities are described below: (continued) (c) Revenue from construction contracts (Only applicable if control is transferred over a period of time) For the project business contracts between the Group and its customers, the Group recognizes revenue according to progress of performance within such period for satisfying such performance obligations during a period of time. Progress of performance refers to the contract cost actually incurred on a cumulative basis as of the balance sheet date as a percentage of the expected total cost under contract (the input method). Based on the progress of performance of the project, revenue from project business contracts is recognized as the contract cost actually incurred plus the gross profit margin under contract. If the total contract cost is likely to exceed total contract revenue, the expected loss is recognized as expenses for the current period immediately. If the sum of ɧe ᚃ 26. ᚃ (2) ᗫ νɨj ᚃ Ǽ છՓ ઋҖ ධͦ ʫᄵБ ᄵ ܓ ྼყ ࠇ ܲ d ͉ණྠ ΥΝϓ͉̋ɪ ධุͦਕΥ ̙ ঐ൴ཀΥΝᐼϗɝ d ͉ණྠ ಂ ϓ͉ၾ ΥΝˣлʘձ൴ཀ ൴ཀʱ
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 143 the cost actually incurred and the recognized gross profit margin under contract exceed the contract settlement fee, the excess is taken to contract assets. Where the contract settlement fee exceeds the sum of the cost actually incurred and the recognized gross profit margin under contract, the excess is taken to contract liabilities. When the progress of performance of project business contracts cannot be reasonably determined, if the costs incurred are expected to be compensated, the Group recognizes revenue based on the amount of costs incurred, until the progress of performance can be reasonably determined. If the costs incurred are not expected to be recovered, it is recognized as expenses for the current period immediately when the contract cost is incurred. For changes, claims and awards under contract, revenue is recognized only when it is likely to happen and the amount can be reliably estimated. ΥΝഐၑ ϓ͉ၾ ۆ ව f ආ d ͉ණྠ ঐ ٙ Ցᄵ ˟ f ʔ̙ d ͉ණྠίΥΝϓ ಂ൬ ΥΝᜊһe॰ሦeᆤ Ꮈഃ d ͉ණྠ̥ϞίՉ̙ঐ ࣛࠇ ϗɝf ɧe ᚃ 26. ᚃ (2) ᗫ νɨj ᚃ Ǽ છՓ ઋҖ ᚃ III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 26. Revenue Recognition and Measurement (continued) (2) Specific accounting policies related to the Group’s main revenue-generating activities are described below: (continued) (c) Revenue from construction contracts (Only applicable if control is transferred over a period of time) (continued)
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 144 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 26. Revenue Recognition and Measurement (continued) (2) Specific accounting policies related to the Group’s main revenue-generating activities are described below: (continued) (d) Warranty obligations In accordance with contractual arrangements and legal requirements, the Group provides warranty for goods that it sells and assets that it builds. For the guarantee-type warranties under which the Group warrants to the customers that the goods sold satisfy certain pre-set criteria, accounting treatments are as set out in Note IV.25. For the service-type warranties under which the Group provides a separate service in addition to the warranty to the customers that the goods sold satisfy certain pre-set criteria, it is treated as a standalone performance obligation and part of the transaction price is apportioned to the service-type warranty based on the proportion of the separate selling prices under the guarantee-type and service-type warranties, and revenue is recognized when the customer acquires control of the service. In assessing whether a separate service is provided to the customer in addition to the warranty that the goods sold satisfy certain pre- set criteria, the Group considers whether the warranty is a statutory requirement, the validity period of the warranty and the nature of the Group’s commitment to perform. ɧe ᚃ 26. ᚃ (2) ᗫ νɨj ᚃ ǽ ່ਕ ഃd האۜ ᗇf ٙ ᗇᗳ ̬ e 25Σ ୌΥ ᅺʘ̮Զəɓධఊ ᗇ d ɓධఊධᄵ ٙ ࣸ ᗇ d Ԩ ᆽ ݊ ۜ ᅺʘ̮Զəɓ d ͉ණྠϽᅇ Ӌe ו ሯഃΪ९f
Page 146
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 145 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 26. Revenue Recognition and Measurement (continued) (2) Specific accounting policies related to the Group’s main revenue-generating activities are described below: (continued) (e) Principal/Agent For the Group, after acquiring control of the goods from a third party, it transfers them to customers or integrates the purchased goods with other goods into a portfolio of output through the provision of significant services. The Group has the right to decide the price of the goods or services it trades independently, that is, it can control the goods or services before transferring them to customers. Therefore, the Group is the main principal, and revenue is recognized by the total consideration received or receivable. Otherwise, the Group, as an agent, shall recognize revenue in the amount of any fee or commission to which it expects to be entitled. The amount shall be determined based on net amount of total consideration received or receivable less amounts payable to other interested parties, or based on the established amount or proportion of commission. (f) Interest income It is calculated and determined according to the time when other people use the Group’s monetary fund and the actual interest rate. ɧe ᚃ 26. ᚃ (2) ᗫ νɨj ᚃ Ǿ பɛŊ˾ଣɛ ͉ණྠІୋɧ˙՟ਠ ˒d ਕਗ਼મ Υϓ ˒ d ͉ ਠ ܄ ঐછՓ༈ਠ ப Ꮠϗ࿁ᄆᐼ d ͉ණྠ ཫಂϞᛆϗ ᕘᆽ ʊ Ꮠϗ࿁ᄆᐼᕘϔৰᏐ˕ ٙܝ ږ f ǿ ϗɝ ˼ɛԴ͉͜ණྠ࿆༟ ၑᆽ f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 146 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 26. Revenue Recognition and Measurement (continued) (2) Specific accounting policies related to the Group’s main revenue-generating activities are described below: (continued) (g) Rental income The rental income of operating lease is recognized by the straight line method during each period of the lease term, and the contingent rental is included in the profits and losses of the current period when it actually occurs. 27. Government grants The Group’s government grants include tax return, financial subsidies etc. The Group’s government grants include government grants related to assets and government grants related to income. Government grants obtained by the Group which are relevant to purchase, construction or acquisition of long-term assets in other ways are classified as government grants related to assets; all other government grants are classified as government grants related to income. If the subsidies are not specified in the government documents, the Group judges them according to the above distinction principle. If it is difficult to distinguish, the whole is classified as government grants related to income. ɧe ᚃ 26. ᚃ (2) ᗫ νɨj ᚃ Ȁ ॡ༣ϗɝ ϗɝίॡ༣ ᆽ ࣛ ɝಂฦूf 27. п ݁ ൨ഃf ݁ٙ пfՉʕd ͉ණྠ՟ ಂ пʘ̮ ᆽ ۆࡡ ၾ пf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 147 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 27. Government grants (continued) If the government grants are monetary assets, it shall be measured according to the amount actually received. For the government grants allocated according to the fixed quota standard, or for the end of the year, when there is conclusive evidence that it meets the relevant conditions stipulated by the financial support policy and is expected to receive the financial support funds, it shall be measured according to the amount receivable. If the government grants are non-monetary assets, it shall be measured at fair value; if the fair value cannot be reliably obtained, it shall be measured at a nominal amount. Government grants related to assets shall be recognized as deferred income and amortized to profits or losses of the current period using the straight-line method within the useful life of the relevant assets. If the relevant assets are sold, transferred, scrapped or damaged before the end of their useful life, the balance of related deferred income that has not been allocated shall be transferred to the profits and losses of the current period of asset disposal. Government grants related to income, as compensation for costs and expenses in subsequent periods, are recognised as deferred income and shall be recorded in profit or loss over the period in which the relevant costs or losses are recognized. The government grants related to daily activities shall be recognized in other income or offset the relevant costs and expenses according to the essence of economic business. Those that are not related to daily activities shall be recognized in non-operating income and expenses. ɧe ᚃ 27. п ᚃ ྼყϗ ᕘᅺ ڌ ᗫૢ ܲ ࿆ ඎdʮʪᄆ ᕘ (1ʩ ඎf ϗ ݁ٙ ̻ ɝಂฦूf ̈ਯeᔷ ٙ ٙ ฦूf ܝ މ ฦ ࠇ ᗫϓ͉൬͜fၾ˚ ɝᐄุ̮ϗ ˕f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 148 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 27. Government grants (continued) If the Group obtains the policy-based preferential loan discount, it shall distinguish between the cases where the finance allocates the discount funds to the lending bank and that the finance allocates the discount funds directly to the Group. The accounting treatment shall be carried out according to the following principles: (1) If the finance allocates the discount funds to the lending bank and the lending bank provides loans to the Group at the policy-based preferential interest rate, the group shall use the amount actually received as the entry value of the loan, and then calculate the relevant borrowing costs according to the borrowing principal and the policy preferential interest rate (or use the fair value of the loan as the entry value of the loan and calculate the borrowing costs according to the effective interest method. The difference between the amount actually received and the fair value of the loan is recognized as deferred income. The deferred income is amortized by the effective interest method during the duration of the loan, and the related borrowing costs are reduced.) (2) The finance will directly allocate the discount funds to the Group, which will deduct the related borrowing costs from the corresponding discount. ɧe ᚃ 27. п ᚃ dਜ ᅡ˹ഗ൲ಛვБձৌ ટᅡ˹ഗ͉ණྠՇ၇ઋ ஈଣj (1) ᅡ˹ഗ൲ಛვБd ᎴлଟΣ d͉ණྠ˸ྼყ ɝ੮ Ꮄ ࠾ ɝ੮ᄆ ಛ൬ ಛʮʪᄆ ϗूf ಛπᚃಂʫમ͜ྼყ ಛ൬͜ f (2) ટᅡ˹ഗ͉ණ ᗫ ಛ൬͜f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 149 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 27. Government grants (continued) If the government grants confirmed by the Group needs to be returned, the accounting treatment shall be conducted in accordance with the following provisions in the current period in which it needs to be returned: 1) Adjust the book value of assets if the book value of the relevant assets is written off at the time of initial confirmation. 2) If there are related deferred incomes, the carrying amount of related deferred income shall be deducted and the excess part shall be included in the current profits and losses. 3) If it belongs to other circumstances, it shall be directly included in the profits and losses of the current period. ɧe ᚃ 27. п ᚃ d ֛ ஈଣj 1) ᄆ f 2 ᗫ ɝ ಂฦूf 3 ɝಂฦ ूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 150 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 28. Deferred tax assets and deferred tax liabilities Deferred tax assets and deferred tax liabilities are recognized based on the temporary differences between the tax bases and the carrying amount of assets and liabilities. A deferred tax asset shall be recognized for deductible losses to the extent that it is probable that tax profit will be available against which the deductible losses can be utilized in accordance with tax law Deferred tax liabilities for temporary taxable differences relating to goodwill are not recognized to the extent they arise from the initial recognition of goodwill. Deferred tax assets and liabilities are not recognized if the temporary differences arise from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. As at balance sheet date, deferred tax assets and deferred tax liabilities are determined using the applicable tax rates that are expected to apply when the related deferred income tax asset is realized, or the deferred income tax liability is settled. Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. ɧe ᚃ 28. ව ࠋ ࠦ ၑᆽႩf࿁ ಯᏐ ٙ ᆽႩ ַ лᆗɰ ٙ ව ମdʔᆽႩ ࠋ ༟ପ ཫಂϗΫ༈༟ ඎf ϔᅲ ͊ ༟ପf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 151 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 29. Lease On the contract start date, the Group evaluates whether the contract is a lease or includes a lease. If one party in the contract transfers the right to control the use of one or more identified assets within a certain period in exchange for consideration, the contract is a lease or contains lease. In order to determine whether the contract has given up the right to control the use of the identified assets within a certain period of time, the Group assesses whether the customers in the contract are entitled to receive almost all of the economic benefits arising from the use of the identified assets during the period of use and have the right to This use period dominates the use of identified assets. If the contract includes multiple separate leases, the Group will split the contract and account for each separate lease. If the following conditions are met at the same time, the right to use the identified assets constitutes a separate lease in the contract: – The lessee can profit from using the asset alone or with other resources that are readily available; – The asset is not highly dependent or highly related to other assets in the contract. Where the contract contains both the leased and non- leased parts, the group, as lessor and lessee, shall conduct accounting treatment after splitting the leased and non-leased parts. ɧe ᚃ 29. ॡ༣ މ ΥΝʕɓ˙ᜫನ εධʊᗆй ༈ΥΝ щ ಂගʫછՓʊᗆй༟ପԴ ݊ щϞᛆᐏίԴ͜ಂගʫΪԴ͜ʊᗆй ˷ΌлूdԨϞ Դ͜f d͉ණ dԨʱйධఊዹॡ d ɓ ධఊዹॡ༣j Ñ ਗ਼ Չ˼༟๕ɓৎԴ ͜ʕᐏлi Ñ Չ˼༟ପʔπ f d dਗ਼ॡ༣ ஈଣf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 152 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 29. Lease (continued) (1) Lessee The types of leased assets of the Group mainly include buildings, machinery and equipment and site use rights. (a) Initial measurement On the lease start date, the Group recognizes its right to use the leased asset during the lease term as a right-of-use asset, and recognizes the present value of outstanding lease payments as lease liabilities, except for short-term leases and leases of low-value assets. When calculating the present value of lease payments, the Group uses the embedded interest rate as the discount rate; if it cannot determine the leased interest rate, the lessee’s incremental borrowing interest rate is used as the discount rate. ɧe ᚃ 29. ॡ༣ ᚃ (1) ॡɛ ܼ eዚኜண௪ʿఙήԴ͜ ᛆf (a ඎ ˚ d ͉ණྠਗ਼Չ ̙ίॡ༣ಂʫԴ͜ॡ༣༟ପ Դ͜ᛆ༟ପ d ٙ ව d ಂ ༟ପॡ༣ৰ̮f d ұ ॡ༣ʫўл ಛ ұତଟf
Page 154
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 153 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 29. Lease (continued) (1) Lessee (continued) (a) Initial measurement (continued) The lease term is the period during which the Group is entitled to use the leased asset and is irrevocable. If the Group has a renewal option, that is, it has the right to choose to renew the asset and it is reasonably determined that the option will be exercised, the lease period also includes the period covered by the renewal option. The Group has the option to terminate the lease, that is, has the right to choose to terminate the lease of the asset, but it is reasonably determined that the option will not be exercised. The lease period includes the period covered by the termination lease option. If a major event or change occurs within the Group’s control and affects whether the Group is reasonably certain that the corresponding option will be exercised, the Group will reasonably determine whether it will exercise the lease renewal option, purchase option or not terminate the lease option Rights for reassessment. ɧe ᚃ 29. ॡ༣ ᚃ (1) ॡɛ ᚃ (a ඎ ᚃ ͉ණྠϞᛆԴ͜ॡ ಂග f ͉ණྠϞᚃॡ፯ᛆ d уϞ ᛆ፯ᚃॡ༈༟ପ d ˲Υଣ d ॡ ༣ಂᒔ̍ўᚃॡ፯ᛆႊ ಂග f ͉ණྠϞ˟ॡ༣ ፯ᛆ d уϞᛆ፯˟ॡ ਗ਼ʔ d ॡ༣ಂ ٙ ಂග f ೯͉͛ණྠ̙છᇍఖ ᜊʷ d ˲ᅂ ਗ਼Б d ͉ණྠ࿁ ਗ਼БԴᚃॡ ʔБ อ ൙Пf
Page 155
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 154 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 29. Lease (continued) (1) Lessee (continued) (b) Subsequent measurement The Group uses the straight-line method to depreciate the right-of-use assets. If it is reasonably possible to determine the ownership of the leased asset at the expiry of the lease term, the Group depreciates it over the remaining useful life of the leased asset. If it is not possible to reasonably determine that the ownership of the leased asset can be obtained when the lease term expires, the Group depreciates it within the shortest period between the lease term and the remaining useful life of the leased asset. The Group calculates the interest expense of the lease liability in each period of the lease period based on the cyclical interest rate of the fixed assets, and calculates it into the current profit and loss. The variable lease payments not included in the measurement of lease liabilities are included in the current profit and loss when they actually occur. ɧe ᚃ 29. ॡ༣ ᚃ (1) ॡɛ ᚃ (b) ඎ ࿁Դ ұᔚ f ঐΥ ՟ॡ d ͉ණྠί ࠇ ॡ༣ ঐ՟ॡ༣༟ପ d ͉ණྠίॡ༣ಂ ၾॡ༣༟ପ௵ቱԴ͜ྪնՇ ұᔚf մಂ වίॡ༣ ൬͜ d Ԩ ɝಂฦूf ̙ᜊ ࠇࣛ ɝಂฦूf
Page 156
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 155 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 29. Lease (continued) (1) Lessee (continued) (b) Subsequent measurement (continued) After the start of the lease period, when the actual fixed payment amount changes, the estimated residual payable amount of the guarantee changes, the index or ratio used to determine the lease payment amount changes, the purchase option, the lease renewal option, or the termination option evaluation When the result or the actual exercise situation changes, the Group remeasures the lease liability based on the present value of the changed lease payments and adjusts the book value of the right-of-use asset accordingly. If the book value of the right-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced, the Group will include the remaining amount in the current profit and loss. (c) Lease changes Lease changes are changes in the lease scope, lease consideration, and lease duration that are outside of the original contract terms, including adding or terminating the right to use one or more leased assets, extending or shortening the lease period stipulated in the contract. ɧe ᚃ 29. ॡ༣ ᚃ (1) ॡɛ ᚃ (b) ඎ ᚃ d ྼሯո ቱ ᕘ೯͛ᜊʷe ᅰ ˢଟ೯͛ᜊਗ e ᒅ൯፯ ˟፯ ྼყБᛆઋ ࠽ Ꮠ f ʊሜಯ වʥცආɓ ږ ɝಂฦूf (c) ॡ༣ᜊһ ΥΝૢಛʘ̮ ॡ༣ᇍఖ e ॡ༣࿁ᄆ e ॡ א ٙ ᐵΥΝ ॡ༣ಂഃf
Page 157
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 156 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 29. Lease (continued) (1) Lessee (continued) (c) Lease changes (continued) When a lease is changed and the following conditions are also met, the Group accounts for the lease change as a separate lease: – The lease change expands the scope of the lease by adding the right to use one or more lease assets; – The increased consideration is equivalent to the individual price of the enlarged part of the lease scope adjusted for the contract. If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the Group re-determines the lease term and uses the revised discount rate to discount the changed lease payment to remeasure the lease liability. In calculating the present value of lease payments after the change, the Group uses the leased interest rate in the remaining lease period as the discount rate; if it is not possible to determine the leased interest rate in the remaining lease period, the Group’s increment on the lease change effective date The borrowing rate is used as the discount rate. ɧe ᚃ 29. ॡ༣ ᚃ (1) ॡɛ ᚃ (c) ॡ༣ᜊһ ᚃ ୌΥɨ d ͉ණྠਗ਼༈ॡ༣ ɓධఊዹॡ༣ආБ ஈଣj Ñ ༈ॡ༣ᜊһஷཀᄣ̋ɓ Դ ͜ᛆϾᓒɽॡ༣ᇍఖi Ñ ࿁ᄆၾॡ༣ᇍఖ ܲࣸ ᕘ f ɓධఊዹॡ d ίॡ༣ อᆽ ٙܝࠈࡌ ॡ༣˹ಛ ඎॡ ॡ༣ d ͉ණྠમ ॡ༣ʫў ֛ ॡ༣ʫўл ˚ މ ұତଟf
Page 158
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 157 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 29. Lease (continued) (1) Lessee (continued) (c) Lease changes (continued) Regarding the impact of the above adjustments on lease liabilities, the Group distinguishes the following situations for accounting treatment: – If the lease change results in a reduction in the scope of the lease or a shortened lease term, the Group reduces the book value of the right-of-use asset to reflect the partial or complete termination of the lease. The Group counts the gains or losses related to the termination or partial termination of the lease in the current profit and loss. – For other lease changes, the Group adjusts the book value of the right-of-use asset accordingly. ɧe ᚃ 29. ॡ༣ ᚃ (1) ॡɛ ᚃ (c) ॡ༣ᜊһ ᚃ ᅂᚤd ͉ණྠਜʱ˸ɨઋҖආБึ ஈଣj Ñ ॡ༣ᇍఖ d ͉ණྠሜಯԴ͜ᛆ༟ପ ॡ ҁΌ ˟ f ͉ණྠਗ਼ʱ˟ ᗫ ɝಂฦ ूf Ñ Չ˼ॡ༣ᜊһ d ͉ණྠ ٙ f
Page 159
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 158 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 29. Lease (continued) (1) Lessee (continued) (d) Short-term leases and leases of low-value assets On the lease start date, the Group’s lease term does not exceed 12 months, and leases that do not include purchase options are considered short-term leases; leases whose single leased assets are brand new assets that do not exceed RMB30,000 are considered low- value asset leases. Where the Group subleases or anticipates subleasing leased assets, the original lease is not recognized as a low value asset lease. The Group does not recognize right-of-use assets and lease liabilities for short- term leases and leases of low-value assets. In each period of the lease term, the relevant asset costs or the current profit and loss are calculated in accordance with the straight-line method, and the contingent rent is included in the current profit and loss when it actually occurs. (2) Lessor During the reporting period of the Group, all leases were operating leases, and the rental income from operating leases was recognized in the current period’s profit and loss on a straight-line basis during each period of the lease term. Contingent rent was recognized in the current period’s profit and loss when it was actually incurred. ɧe ᚃ 29. ॡ༣ ᚃ (1) ॡɛ ᚃ (d) ༟ପॡ༣ ˚ d ॡ༣ ಂʔ൴ཀ 12˜ d ˲ʔ̍ў މ ʔ൴ཀɛ͏ ࿆30,000Э ༟ପॡ༣ f ͉ණྠᔷॡ ࡡ ༟ପॡ ༣ f ͉ණྠ࿁ಂॡ༣ձЭ ༟ପॡ༣፯ʔᆽႩԴ ව f ίॡ ج ಂฦ ࣛ ɝಂฦूf (2) ̈ॡɛ ᐄॡ༣d ࡈ א ɝಂฦूf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 159 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 30. Segment Information The Group determines the operating segment based on internal organizational structure, management requirements and internal reporting system. The reportable segment and disclosing the information are determined based on the operating segment. Operating segment refers to the components within the Group that satisfy all the following conditions: (1) the components can generate income and expenses in daily activities; (2) the operating results of the components are regularly reviewed by the management of the Group to make decisions about resources to be allocated to the segment and assess its performance; (3) Discrete financial information including the financial position, operating results and cash flow of the component is available. If two or more operating segments have similar economic characteristics and meet certain conditions, they can be merged into one operating segment. 31. Financial Guarantee Contracts Financial guarantee contracts are contracts that require the issuer to make specific payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due. Such financial guarantees are given to banks, financial institutions and other entities to secure related party’ loans, overdrafts and other bank facilities. ɧe ᚃ 30. ࢹڦ Ӌeʫ ᐄʱd˸ ᚣʱ f တԑɨΐૢ ଡ଼ϓʱj (1)༈ଡ଼ϓʱঐί˚ ਗʕପ͛ϗɝe೯͛൬͜i (2)͉ණ ΣՉৣໄ༟๕e൙ᄆՉ ุᐶi(3)ٙ ඎഃϞᗫ d ᐄʱf 31. ΥΝ Ϟɛ ɛՑಂʔঐ Ϟɛ ΥΝԶഗ ᗫᑌʮ Զ ᗇf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 160 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 31. Financial Guarantee Contracts (continued) The financial guarantee contract is initially recognized at fair value on the date the guarantee was given, and shall be subsequently measured at the higher of amortized value and the best estimate of the reserves required for the performance of the group’s guarantee obligations on balance sheet date. The increased liabilities associated with the contract and shall be recorded in current profit or loss. These estimates are based on similar business experience, past losses and management judgment. 32. Critical Accounting Estimates and Judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. ɧe ᚃ 31. ΥΝ ᚃ ࠽ ΥΝ ה ੑ৷ΐͪdၾ༈Υ fவ ᜕eཀ̘ฦ̰ዝ ̦ձ၍ଣᄴкᓙϾ̈f 32. ձкᓙ ܼ ࠠٙ ൙ᄆf͉ණྠ࿁ ձண̙ঐʔঐҁ ࠠ ɨɓ ࠠ ᎈj
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 161 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 32. Critical Accounting Estimates and Judgments (continued) (1) Taxation The Group is subject to various taxes in many countries, such as income tax and VAT. Significant judgment is required in determining the account for such taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. Based on the estimates of anticipated tax items, the Group determines whether additional taxes are required in the future to recognize the liabilities of tax items. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will affect the tax amount for the period in which the judgment is made. Deferred tax assets are recognized as management considers it is probable that future taxable profit will be available against which the temporary differences or tax losses can be utilized. Where the expectation is different from the original estimate, such differences will impact the recognition of deferred tax assets and income tax in the periods in which such estimate is changed. ɧe ᚃ 32. ձкᓙ ᚃ (1) ධ ቇ͜εධධd ֛ Ъ̈кᓙf ࠇ f͉ d ږ ༈ഃԫ ږ ᕘਗ਼ᅂᚤЪ̈кᓙϞ ධf ၍ ה ༈ഃ ࢨ הٙ ಛf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 162 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 32. Critical Accounting Estimates and Judgments (continued) (2) Method of ascertaining of performance progress for construction contracts (Only applicable to situations where control is transferred within a period of time) The input method is adopted by the Group to ascertain the progress of performance of construction contracts. Specifically, the construction costs actually incurred on a cumulative basis as a percentage of estimated total costs is used to ascertain progress of performance. Costs actually incurred on a cumulative basis include direct and indirect costs incurred by the Group in the course of transfer of goods to customers. The Group considers that the consideration of construction contracts signed with customers is determined based on construction costs. The construction costs actually incurred on a cumulative basis as a percentage of estimated total costs can practically reflect the progress of performance of the construction service. The Group determines progress of performance by referring to the construction costs actually incurred on a cumulative basis as a percentage of estimated total costs, and recognizes revenue accordingly. As the period of validity of construction contracts is relatively long and may span over a number of accounting periods, the Group shall review and revise budget as the duration of the construction contracts continues, and adjust the amount of recognized revenue accordingly. ɧe ᚃ 32. ձкᓙ ᚃ (2) ස ٙ ઋҖ ֛ dՈϾ ܔٙ ֛ ϓ͉̍ ཀʕ ટϓ͉ձගટϓ͉f͉ ிΥΝ dྼყ ٙ ᄵ ྼყ೯͛ ˢԷ dԨኽϤᆽႩϗɝf d̙ঐ ಂගd͉ණྠึᎇഹ ཫၑd ᕘf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 163 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 32. Critical Accounting Estimates and Judgments (continued) (3) Impairment of financial assets The Group uses the expected credit loss model to evaluate the impairment of financial instruments. The application of the anticipated credit loss model requires significant judgments and estimates. All reasonable and evidence-based information, including forward-looking information, should be taken into account. In making such judgments and estimates, the Group infers the expected changes in the debtor’s credit risk based on historical repayment data combined with economic policies, macroeconomic indicators, industry risks and other factors. The difference between the actual results and the original estimates will affect the carrying amount of financial assets and the provision or reversal for bad debts of financial assets during the estimated period of change. ɧe ᚃ 32. ձкᓙ ᚃ (3) ࠽ ࿁ ආБ൙ПdᏐ͜ཫ ɽк ϞΥଣ˲ϞԱ fίਂ ኽ ഄe҃ᝈ ᎈഃΪ९પᓙව ཫಂᜊਗf ମਗ਼ ፄ༟ ፄ༟ପᕸሪ ᔷΫf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 164 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 32. Critical Accounting Estimates and Judgments (continued) (4) Impairment of non-financial assets (a) Provision of impairment on goodwill The Group conducts an annual impairment test on goodwill. The recoverable amount of cash- generating units or groups of cash-generating units to which goodwill has been allocated is the present value of its future cash flows estimated on the basis of (Notes III(21)). If the management modified the gross profit rate used in the calculation of the future cash flow of cash-generating units or groups of cash- generating units, the Group shall recognize the provision of impairment on goodwill when the modified gross profit rate is lower than the current gross profit rate. If the management modified the pre-tax discount rate used for cash flow discounting, the Group shall recognize the provision of impairment on goodwill when the modified pre-tax discount rate is higher than the current discount rate. The provision of impairment on goodwill cannot be reversed if the actual gross profit rate or pre-tax discount rate is higher or lower than the estimates of the management. ɧe ᚃ 32. ձкᓙ ᚃ (4) ࠽ 1) ࠇ ࠽ ༟ପଡ଼ձ މ d ڝ ൗɧe21f ၍ଣᄴ࿁༟ପଡ଼ձ༟ପ ၑʕ d મ ˣлଟ d ͉ණྠ̙ঐც ௪f ݴږ ࠠ ұତ ұତଟ d ಯ ௪f ұତ d ٙ ฦ̰f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 165 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 32. Critical Accounting Estimates and Judgments (continued) (4) Impairment of non-financial assets (continued) (b) Impairment of long-term assets Long-term assets are reviewed for impairment annually according to the accounting policy of the Group. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs of disposal and the present value of the expected future cash flow. The calculation of value in use requires the company to estimate the future cash flows expected to be derived from the cash-generating unit and the appropriate discount rate based on the assumptions and estimates of the management. After sensitivity analysis, the management believes that the carrying amount of the asset will be fully recovered. If the management modified the gross profit rate used in the calculation of the future cash flow of cash-generating units or groups of cash- generating units, the Group shall recognize the provision of impairment on long-term assets when the modified gross profit rate is lower than the current gross profit rate. ɧe ᚃ 32. ձкᓙ ᚃ (4) ᚃ 2 ࠽ ٙ ಂ༟ପආБಯ ఊ ༟ପʮʪ ଋᕘ ٙ ၑf ኽ ࠇ ͊Ըତ ൨ତଟ f ਗ਼̙ ΌᅰϗΫf ၍ଣᄴ࿁༟ପଡ଼ձ༟ପ ၑʕ ࡌ મ͜ ಂ ௪f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 166 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 32. Critical Accounting Estimates and Judgments (continued) (5) Valuation of inventory Inventories are measured at the lower of cost and net realizable value. The net realizable value of inventory is determined by taking into account the age of the inventory and the estimated selling price of the inventory, minus the estimated costs to be incurred until completion, estimated sales expenses, and relevant taxes and fees. (6) Estimated use The Group reviews the estimated useful lives of fixed assets and intangible assets at least once at the end of the year. Estimated useful lives are determined by the management based on historical experience of similar assets and expected technological advancement. Corresponding adjustment to depreciation expenses for future periods will be made in case of substantial changes in previous estimates. (7) Quality warranty For groups of contracts with similar characteristics, the Group reasonably estimates maintenance fee charge based on historical data on and current situation of maintenance, and taking into account all relevant data including product upgrade and market changes. The Group re-assesses maintenance fee charge at least on every balance sheet date and determines accruals and provisions based on the re- assessed maintenance fee charge. ɧe ᚃ 32. ձкᓙ ᚃ (5) ᄆ ϓ͉ၾ̙ᜊତ ࠽ ਯᄆಯ̘ ϓ͉eП ٙܝ f (6) ̙Դ͜ ࠢ əd࿁ո Դ͜ྪ ၍ଣ ࿁Νᗳ༟ପዝ᜕̦Ԩഐ ֻ Ꮠሜ ұᔚʿᛅቖ൬͜f (7) ᗇ ΥΝଡ଼ ࡌڭۃ ҷආe̹ఙᜊʷഃ ൬ଟʚ˸ ӊɓ༟ପ อ൙ ൬ଟ වf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 167 III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED) 32. Critical Accounting Estimates and Judgments (continued) (8) Defined benefit plan The management of the Group determines the net liabilities of the defined benefit plan based on the present value of the defined benefit obligation minus the fair value of the planned assets calculated by the model. The calculation of the present value of the defined benefit obligation includes a number of assumptions, including the benefit period and the discount rate. If future events are inconsistent with these assumptions, they may lead to significant adjustments to the net liabilities of the defined benefit plan set on the balance sheet date. 33. Changes in critical accounting policies and estimates (1) There are no significant changes in accounting policies of the Group in the current period. (2) There are no significant changes in accounting estimates in the current period. (3) There are no major adjustments of prior accounting errors in the current period ɧe ᚃ 32. ձкᓙ ᚃ (8) ྌ ண ʮ වf ၑ̍ўε ʿұତଟf ͊Ըԫධၾ༈ഃணʔୌd̙ ա ɽሜf 33. ᜊһ (1) ഄᜊһ f (2) ᜊһ f (3) ፹ f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 168 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD IV. TAXATION 1. Main categories of tax and corresponding tax rate ̬e ධ 1. ၇ʿଟ Աኽ ଟ Category of tax Tax base Tax rate ʕΆุ Chinese enterprise ᕘ 15%d25%ʿ0% Enterprise income tax Taxable income ˸ቇ͜ଟ ၑ 13%e9%e6% Value-added tax (“VAT”) Taxable value-added amount (Tax payable is calculated using the taxable sales amount multiplied by the applicable tax rate less deductible VAT input of the current period) ᅄϗଟ 5%e3% VAT (easy to collect) Taxable value-added amount multiplied by VAT collection rate 5%ʿ7% City maintenance and construction tax Taxable amounts of VAT 2%ʿ3% Educational surcharge Taxable amounts of VAT ٙ࠽ࡡ70%ॡ༣ϗɝ 1.2%א12% Property tax 70% of the original value of the property or rental income ጐ ɛ͏࿆3.2ʩÑ20ʩ Ŋ̻˙ϷŊϋ Land use tax Land occupation area RMB3.2-20 yuan/m 2 /year ಥл – 16.5% Profit tax in Hong Kong л – 15%e16.5%e 19%e26%Profit tax for other regions/countries
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 169 IV. TAXATION (CONTINUED) 1. Main categories of tax and corresponding tax rate (continued) Explanation of taxpayers of different enterprise income tax rates: ̬eධ ᚃ 1. ၇ʿଟ ᚃ ഄ Taxpayers Income tax rate Income tax preference ʮ̡ 25% – Chongqing Machinery & Electric Co., Ltd. ΅ʮ̡ 25% – Chongqing Chengfei New Materials Co., Ltd. ʮ̡ 25% – Chongqing Machinery & Electric Holding Group Finance Co., Ltd. ʮ̡ 25% – Jilin Chengfei New Material Co., Ltd. ʮ̡ 15%ഄ (1) Chongqing CAFF Automotive Braking & Steering System Co., Ltd. Income tax preference (1) ʮ̡ 15%ഄ (1) Chongqing Pigeon Brand Electric Wire & Cable Co., Ltd. Income tax preference (1) ʮ̡ 15%ഄ (1) Gansu Chong Tong Chengfei New Material Co., Ltd. Income tax preference (1) ʮ̡ 15%ഄ (1) Xinjiang Chengfei New Material Co., Ltd. Income tax preference (1) பʮ̡ 15%ഄ (1) Chongqing Pump Industry Co., Ltd. Income tax preference (1) ʮ̡ 15%ഄ (1) Chongqing Mengxun Electronic & Technology Co., Ltd. Income tax preference (1) பʮ̡ 15%ഄ (2) Chongqing Machine Tool (Group) Co., Ltd. Income tax preference (2) ʮ̡ 15%ഄ (2) Chongqing Holroyd Precision Rotors Manufacturing Co., Ltd. Income tax preference (2) ʮ̡ 15%ഄ (2) Chongqing Pigeon Brand Electric Porcelain Co., Ltd. Income tax preference (2) பʮ̡ 15%ഄ (2) Chongqing Shunchang General Electric Equipment Co., Ltd. Income tax preference (2)
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 170 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ഄ Taxpayers Income tax rate Income tax preference பʮ̡ 15%ഄ (2) Chongqing Tool Factory Co., Ltd. Income tax preference (2) பʮ̡ 15%ഄ (2) Chongqing Water Turbine Works Co., Ltd. Income tax preference (2) பʮ̡ 15%ഄ (2) Chongqing General Industry (Group) Co., Ltd. Income tax preference (2) ʮ̡ 15%ഄ (2) Chong Tong Chengfei Wind Power Equipment Jiangsu Co., Ltd. Income tax preference (2) ʮ̡ 15%ഄ (2) Chongqing Machinery & Electronic Intelligent Manufacturing Co., Ltd. Income tax preference (2) பʮ̡ 15%ഄ (2) Chongqing Gas Compressor Factory Co., Ltd. Income tax preference (2) ʮ̡ 15%ഄ (2) Chongqing Industrial Enabling Innovation Center Co., Ltd. Income tax preference (2) ഄ (3) Xinjiang Fubaotian Cotton Harvesting Service Co., Ltd. Exemption Income tax preference (3) பʮ̡ 20%ഄ (4) Xinjiang Zhongxinhong Energy Service Co., Ltd. Income tax preference (4) PTGණ ྠ 19% – Precision Technologies Group (UK)) Limited. PTG 26% – Precision Technologies Group (US) Limited (PTG US) ʮ̡ 19% – Holroyd Precision Screw and Rotors Company ʮ̡ 19% – Milnrow Investments Ltd. ʮ̡ 19% – Precision Components Manufacturing Co., Ltd. PTGᅃʮ̡ 15% – PTG Deutschland GmbH ʮ̡ 16.50% – Precision Technology Group Investment Development Co., Ltd ̬eධ ᚃ 1. ၇ʿଟ ᚃ ᚃ IV. TAXATION (CONTINUED) 1. Main categories of tax and corresponding tax rate (continued) Explanation of taxpayers of different enterprise income tax rates: (continued)
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 171 ̬eධ ᚃ 2. ϗᎴ (1) ࢝ ᚃГɽක೯Άุ eਕ ։ʮѓ 2020ϋ ୋ23dІ2021ϋ1˜1˚Ї 2030ϋ12˜31˚d࿁ணίГήਜ ܲ15%ଟ Г ᅅ̹ ה ଟ15%ɿʮ̡dΪ˴ᐄุ ɽᜊʷd2025ᚃԮ ܲ15%ଟf (2) ᗫ ৷อҦஔ ഄd ܲ15%f IV. TAXATION (CONTINUED) 2. Corporate income tax preferences (1) According to the Announcement of the Ministry of Finance, the State Administration of Taxation, and the National Development and Reform Commission on Continuing the Enterprise Income Tax Policy for Western Development (Announcement No. 23 of 2020), from January 1, 2021 to December 31, 2030, the enterprise income tax will be levied at a reduced rate of 15% on encouraged industrial enterprises located in the western region. The Group has filed with the Chongqing State Taxation Bureau for a subsidiary enjoying a preferential corporate income tax rate of 15% for encouraged industrial enterprises in the western region. Due to no significant changes in the main business, the preferential corporate income tax rate of 15% will continue to apply in 2025. (2) According to the relevant tax preferential policies of the state for high-tech enterprises, certified high- tech enterprises can enjoy preferential policies of enterprise income tax and pay enterprise income tax at a reduced rate of 15%.
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 172 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD IV. TAXATION (CONTINUED) 2. Corporate income tax preferences (continued) (2) (continued) The following companies in this Group enjoy a preferential tax rate of 15% in this period because they have obtained the Certificate of High-tech Enterprises: ̬eධ ᚃ 2. ϗᎴ ᚃ (2) ᚃ ͉ණྠʫɨΐɿʮ̡Ϊ՟ ৷อ d ͉ϋԮա15%ٙ νɨj ᇜ Name Certificate of high-tech enterprises பʮ̡ GR202451102460 Chongqing Machine Tool (Group) Co., Ltd. ʮ̡ GR202351101402 Chongqing Holroyd Precision Rotors Manufacturing Co., Ltd. ʮ̡ GR202251101875 Chongqing Pigeon Brand Electric Porcelain Co., Ltd. பʮ̡ GR202351101160 Chongqing Shunchang General Electric Equipment Co., Ltd. பʮ̡ GR202251101839 Chongqing Tool Factory Co., Ltd. பʮ̡ GR202351102408 Chongqing turbine works Co., Ltd. பʮ̡ GR202351100798 Chongqing General Industry (Group) Co., Ltd. ʮ̡ GR202432000253 Chong Tong Chengfei Wind Power Equipment Jiangsu Co., Ltd. ʮ̡ GR202351102911 Chongqing Machinery & Electronic Intelligent Manufacturing Co., Ltd. பʮ̡ GR202451102575 Chongqing Gas Compressor Factory Co., Ltd. ʮ̡ GR202451101028 Chongqing Industrial Enabling Innovation Center Co., Ltd.
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 173 ̬eධ ᚃ 2. ϗᎴ ᚃ (3) ୋɚɤɖૢୋ ɓ ධ j ԫ༵e ̙˸е f͉ණྠɿʮ ʮ̡ ה f (4) ආɓӉ ࢝ ਕ ᐼ҅ʮѓ 2023ϋୋ12d࿁ ܲ25%ၑᏐॶ ܲ20%ה ᚃੂБЇ 2027ϋ12˜ 31˚f IV. TAXATION (CONTINUED) 2. Corporate income tax preferences (continued) (3) According to Article 27 (1) of the Enterprise Income Tax Law of the People’s Republic of China, income from agricultural, forestry, animal husbandry, and fishery projects can be exempted or reduced from enterprise income tax. The Group‘s subsidiary, Xinjiang Fubaotian Cotton-picking Service Co., Ltd. is engaged in agricultural machinery operations and its income is exempted from enterprise income tax. (4) According to the Announcement on Further Supporting the Development of Small and Micro Enterprises and Individual Businesses Regarding Tax and Fee Policies (Announcement No. 12 [2023] of the Ministry of Finance and the State Taxation Administration), the policy of calculating taxable income at a reduced rate of 25% and levying corporate income tax at a rate of 20% for small and low-profit enterprises will be extended and remain in effect until December 31, 2027.
Page 175
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 174 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ʞe ධͦൗᙑ ʘ ɛ͏࿆ʩf 1. ږ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) ږCash in hand 64,700.90 46,398.29 ვБπಛ Cash at bank 1,958,163,026.09 2,192,385,712.64 ږOther monetary assets 461,847,144.35 550,693,225.77 ࢹAccrued interest on cash at bank 2,753,112.75 1,765,551.64 ࠇTotal 2,422,827,984.09 2,744,890,888.34 ಛධᐼᕘ Including: cash deposited abroad 120,190,108.11 86,306,682.11 ൗj Փf 2. ፄ༟ପ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ࠇ ፄ༟ପ Financial assets at fair value through profit or loss 631,346,485.52 571,813,953.57 ՉʕjᛆूʈՈҳ༟ Including: Equity instrument investment 2,641,437.94 2,644,701.72 වՎ Bonds 529,091,184.78 440,716,755.27 Νุπఊ Interbank negotiable certificate of deposit 99,613,862.80 128,452,496.58 ࠇTotal 631,346,485.52 571,813,953.57 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS Unless otherwise stated, among the following disclosed data in the financial statements, currency unit is RMB. 1. Cash and Cash Equivalents Note: There is no limit on the remittance of the group’s overseas deposits. 2. Financial assets held for trade
Page 176
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 175 ʞe ධͦൗᙑ ᚃ 3. Ꮠϗୃኽ (1) Ꮠϗୃኽʱᗳΐͪ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) гිୃ Bank acceptance bills 67,441,885.63 34,874,135.84 гිୃ Commercial acceptance bills 108,584,517.04 181,515,003.21 ࠇTotal original value 176,026,402.67 216,389,139.05 ௪ Less: provision for bad debts 2,963,148.25 2,222,405.67 ࠇTotal 173,063,254.42 214,166,733.38 (2) ʱᗳΐͪ 2025ϋ6˜30˚ 30 Jun 2025 ቱᕘ ᕸሪ௪ Book Balance Provision for bad debts ᕘ ˢԷ(%)ᕘ ᕸሪ௪ˢԷ (%)࠽ ᗳй Items Amount Proportion (%) Amount Proportion of bad debt provision (%) Carrying amount ᕸሪ௪ Provision for bad debts by portfolio 176,026,402.67 100.00 2,963,148.25 1.68 173,063,254.42 гිୃ Including: Bank acceptance bill 67,441,885.63 38.31 – – 67,441,885.63 ɓছୃኽଡ଼Υ General bill combination 108,584,517.04 61.69 2,963,148.25 2.73 105,621,368.79 ࠇTotal 176,026,402.67 100.00 2,963,148.25 1.68 173,063,254.42 2024ϋ12˜31˚ 31 Dec 2024 (As restated) ቱᕘ ᕸሪ௪ Book Balance Provision for bad debts ᕘ ˢԷ(%)ᕘ ᕸሪ௪ˢԷ (%)࠽ ᗳй Items Amount Proportion (%) Amount Proportion of bad debt provision (%) Carrying amount ᕸሪ௪ Provision for bad debts by portfolio 216,389,139.05 100.00 2,222,405.67 1.03 214,166,733.38 гිୃ Including: Bank acceptance bill 34,874,135.84 16.12 – – 34,874,135.84 ɓছୃኽଡ଼Υ General bill combination 181,515,003.21 83.88 2,222,405.67 1.22 179,292,597.54 ࠇTotal 216,389,139.05 100.00 2,222,405.67 1.03 214,166,733.38 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 3. Notes receivable (1) Classification of notes receivable (2) Classified by bad debt provision method
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 176 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 3. Notes receivable (continued) (3) Provision for bad debts of notes receivable that are accrued, collected or transferred back in this period (4) The Group have pledged notes receivable at the end of the period ʞe ධͦൗᙑ ᚃ 3. Ꮠϗୃኽ ᚃ (3) Ꮠϗୃኽ ᕸሪ௪ ᕘ Change amount for the current period 2024ϋ12˜31 Չ˼ᜊਗ 2025ϋ6˜30˚ ᗳй Items 31 Dec 2024 Add: accrual Other changes 30 Jun 2025 (As restated) Ꮠϗୃኽᕸሪ௪ Provision for bad debts of notes receivable 2,222,405.67 740,742.58 – 2,963,148.25 ࠇTotal 2,222,405.67 740,742.58 – 2,963,148.25 (4) Ꮠϗୃኽ 2025ϋ6˜30˚ ᕘ 2024ϋ12˜31˚ ᕘ ධͦ Items Pledged amount on 30 Jun 2025 Pledged amount on 31 Dec 2024 гිୃ Bank acceptance bills 67,441,885.63 33,289,624.49 гිୃ Commercial acceptance bills – – ࠇTotal 67,441,885.63 33,289,624.49
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 177 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 3. Notes receivable (continued) (5) At the end of the period, the Group’s notes receivable have endorsed or discounted and have not matured (6) There are no notes receivable that have been actually written off by the Group this period (7) Aging of year-end notes receivable The age of accounts receivable for the above- mentioned year-end notes of the Group is within one year. ʞe ධͦൗᙑ ᚃ 3. Ꮠϗୃኽ ᚃ (5) ൨ତ˲ί༟ Ꮠϗୃኽj ᕘᕘ ධͦ Items Termination confirmation amount on 30 Jun 2025 The confirmed amount not terminated on 30 Jun 2025 гිୃ Bank acceptance bills – – гිୃ Commercial acceptance bills – 7,606,874.30 ࠇTotal – 7,606,874.30 (6) Ꮠϗୃኽ (7) ሪᙧ ሪᙧ ɓϋ˸ʫf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 178 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 4. Accounts receivable (1) Accounts receivable listed by aging ʞe ධͦൗᙑ ᚃ 4. Ꮠϗሪಛ (1) ሪᙧΐͪ 2025ϋ6˜30˚ 30 Jun 2025 Ꮠϗሪಛ ᕸሪ௪ ᕸሪ௪ˢԷ (%) ሪᙧ Aging Accounts receivable Provision for bad debts Percentage(%) 1ϋ˸ʫ Within 1 year 3,225,589,007.50 77,685,864.45 2.41 1-2ϋ 1-2 years 729,353,219.24 67,768,935.37 9.29 2-3ϋ 2-3 years 345,788,831.42 30,287,845.37 8.76 3ϋ˸ɪ Over 3 years 793,023,797.00 648,608,991.53 81.79 Չʕj3-4ϋ Including: 3-4 years 150,670,411.29 77,161,263.34 51.21 4-5ϋ 4-5 years 66,545,905.38 44,123,069.86 66.30 5ϋ˸ɪ Over 5 years 575,807,480.33 527,324,658.33 91.58 ࠇTotal 5,093,754,855.16 824,351,636.72 16.18 2024ϋ12˜31˚ 31 Dec 2024 (As restated) Ꮠϗሪಛ ᕸሪ௪ ᕸሪ௪ˢԷ (%) ሪᙧ Aging Accounts receivable Provision for bad debts Percentage(%) 1ϋ˸ʫ Within 1 year 2,612,068,394.35 86,777,798.81 3.32 1-2ϋ 1-2 years 586,730,951.39 40,052,361.92 6.83 2-3ϋ 2-3 years 228,510,811.18 51,921,232.77 22.72 3ϋ˸ɪ Over 3 years 701,023,130.56 596,360,275.83 85.07 Չʕj3-4ϋ Including: 3-4 years 93,091,679.59 46,038,132.12 49.45 4-5ϋ 4-5 years 192,426,995.93 156,944,817.62 81.56 5ϋ˸ɪ Over 5 years 415,504,455.04 393,377,326.09 94.67 ࠇTotal 4,128,333,287.48 775,111,669.33 18.87
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 179 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 4. Accounts receivable (continued) (2) Accounts receivable classified by bad debt provision method ʞe ධͦൗᙑ ᚃ 4. Ꮠϗሪಛ ᚃ (2) ʱᗳΐͪ 2025ϋ6˜30˚ 30 Jun 2025 ᕸሪ௪ˢԷ (%)࠽ ଡ଼Υʱᗳ Classification Original value Percentage(%) Provision for bad debts Carrying amount ᕸሪ௪ Provision for bad debts is recognized separately 592,247,507.85 87.57 518,607,125.22 73,640,382.63 ᕸሪ௪ Provision for bad debts is recognized by group 4,501,507,347.31 6.79 305,744,511.50 4,195,762,835.81 Չʕjᗫᑌʮ̡ಛධ Including: Related parties 82,251,608.60 – – 82,251,608.60 ͜ಂʫΫಛԄλଡ଼Υ Customers with good credit 1,520,000.00 – – 1,520,000.00 ˒ಛධଡ଼Υ General customers 4,417,735,738.71 6.92 305,744,511.50 4,111,991,227.21 Չʕj1 ϋ˸ʫ Including: Within 1 year 3,130,496,176.98 1.67 52,406,548.09 3,078,089,628.89 1-2ϋ 1-2 years 695,439,662.58 4.88 33,936,656.60 661,503,005.98 2-3ϋ 2-3 years 313,194,340.16 7.31 22,893,213.80 290,301,126.36 3-4ϋ 3-4 years 111,802,166.96 41.81 46,746,733.25 65,055,433.71 4-5ϋ 4-5 years 44,544,235.69 61.74 27,502,203.42 17,042,032.27 5ϋ˸ɪ Over 5 years 122,259,156.34 100.00 122,259,156.34 – ࠇTotal 5,093,754,855.16 16.18 824,351,636.72 4,269,403,218.44
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 180 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 4. Accounts receivable (continued) (2) Accounts receivable classified by bad debt provision method (continued) Note: The Group always measures the impairment allowance of accounts receivable at an amount equivalent to the expected credit loss over the entire duration, and calculates its expected credit loss based on the number of overdue days and the default loss rate. The LGD is calculated based on the actual credit loss experience in the past 3-5 years, and is based on the differences between the economic conditions during the historical data collection period, the current economic conditions, and the economic conditions estimated by the Group during the expected duration make adjustments. ʞe ධͦൗᙑ ᚃ 4. Ꮠϗሪಛ ᚃ (2) ʱᗳΐͪ ᚃ 2024ϋ12˜31˚ 31 Dec 2024 (As restated) ᕸሪ௪ˢԷ (%)࠽ ଡ଼Υʱᗳ Classification Original value Percentage(%) Provision for bad debts Carrying amount ᕸሪ௪ Provision for bad debts is recognized separately 576,974,139.90 87.95 507,449,020.75 69,525,119.15 ᕸሪ௪ Provision for bad debts is recognized by group 3,551,359,147.58 7.54 267,662,648.58 3,283,696,499.00 Չʕjᗫᑌʮ̡ಛධ Including: Related parties 69,409,302.55 – – 69,409,302.55 ͜ಂʫΫಛԄλଡ଼Υ Customers with good credit 1,800,000.00 – – 1,800,000.00 ˒ಛධଡ଼Υ General customers 3,480,149,845.03 7.69 267,662,648.58 3,212,487,196.45 Չʕj1 ϋ˸ʫ Including: Within 1 year 2,595,169,830.57 2.17 56,437,083.50 2,538,732,747.07 1-2ϋ 1-2 years 483,346,633.78 5.03 24,320,443.17 459,026,190.61 2-3ϋ 2-3 years 183,141,386.10 11.61 21,263,511.18 161,877,874.92 3-4ϋ 3-4 years 70,518,839.12 42.30 29,828,923.98 40,689,915.14 4-5ϋ 4-5 years 30,186,480.34 59.72 18,026,011.63 12,160,468.71 5ϋ˸ɪ Over 5 years 117,786,675.12 100.00 117,786,675.12 – ࠇTotal 4,128,333,287.48 18.78 775,111,669.33 3,353,221,618.15 ൗj πᚃ ඎᏐ ௪dԨ˸གྷಂ˂ ၑՉཫ ཀ ̘3-5ࠇ ٙ ၾ͉ ମආБሜf
Page 182
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 181 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 4. Accounts receivable (continued) (2) Accounts receivable classified by bad debt provision method (continued) 1) Accounts receivable are provisioned for bad debts on a single basis ʞe ධͦൗᙑ ᚃ 4. Ꮠϗሪಛ ᚃ (2) ʱᗳΐͪ ᚃ 1) ᕸሪ ௪ 2025ϋ6˜30˚ 30 Jun 2025 ቱᕘ ᕸሪ௪ ᕸሪ௪ˢԷ (%) ఊЗΤ၈ Company Book balance Provision for bad debts Percentage(%)ଣ͟ Reason for provision ʮ̡ NongHai Group Ltd. 134,569,934.02 80,815,988.22 60.06ΌᕘϗΫ Not expected to be fully recoverable ʮ̡ Beijing Wanyuan Industry Co., Ltd 70,692,679.52 70,692,679.52 100.00ϗΫ Not expected to be recoverable ʮ̡ Qijiang Gear Transmission Co., Ltd. 65,447,654.87 65,447,654.87 100.00ϗΫ Not expected to be recoverable ʮ̡ Huayi Wind Energy Co., Ltd. 34,705,986.18 34,705,986.18 100.00ϗΫ Not expected to be recoverable ཥண௪ႡிϞ ʮ̡ Gansu Aerospace Wanyuan Wind Power Equipment Manufacturing Co., Ltd. 29,799,733.97 29,799,733.97 100.00ϗΫ Not expected to be recoverable ʮ̡ Chongqing Adaman Technology Co., Ltd. 27,996,000.00 27,996,000.00 100.00ϗΫ Not expected to be recoverable ʮ̡ Shandong Guofeng Wind Power Equipment Co., Ltd. 12,598,900.00 12,598,900.00 100.00ϗΫ Not expected to be recoverable ʮ̡ Chengdu Mingran Intelligent Technology Co., Ltd. 12,493,959.01 6,325,016.67 50.62ΌᕘϗΫ Not expected to be fully recoverable ؇ ʮ̡ Chengdu Operations Office (Dongfang Electric corporation Dongfeng Electric Machinery Co., Ltd.) 11,151,012.11 11,151,012.11 100.00ϗΫ Not expected to be recoverable ʮ̡ Jilin Zhongtong Electric Power Engineering Co., Ltd. 10,528,389.04 10,528,389.04 100.00ϗΫ Not expected to be recoverable பʮ̡ Chongqing Jiangbei Machinery Co., Ltd. 10,187,071.36 10,187,071.36 100.00ϗΫ Not expected to be recoverable Water Gen Power S.r.l. (WGP) 8,343,351.78 8,343,351.78 100.00ϗΫ Not expected to be recoverable ʫႆ̚ঘ˂ຬ๕อঐ๕ක೯ ʮ̡ Inner Mongolia Aerospace Wanyuan New Energy Development Co., Ltd. 7,900,000.00 7,900,000.00 100.00ϗΫ Not expected to be recoverable ዚႡி ʮ̡ Tokto County Hongchang Machinery Manufacturing Co., Ltd. 7,011,308.09 5,609,046.47 80.00ΌᕘϗΫ Not expected to be fully recoverable ʮ̡ Chongqing Huahao Smelting Co., Ltd. 6,285,499.20 6,285,499.20 100.00ϗΫ Not expected to be recoverable ʮ̡ Chongqing Zhongzhan Commercial Co., Ltd. 5,048,726.50 5,048,726.50 100.00ϗΫ Not expected to be recoverable ʮ̡ Zhongdian Electric Machinery Co., Ltd. 5,044,520.63 5,044,520.63 100.00ϗΫ Not expected to be recoverable ਠ Total of other unimportant customers 132,442,781.57 120,127,548.70 90.70ΌᕘϗΫ Not expected to be fully recoverable ࠇTotal 592,247,507.85 518,607,125.22 87.57
Page 183
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 182 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 4. Accounts receivable (continued) (2) Accounts receivable classified by bad debt provision method (continued) 1) Accounts receivable are provisioned for bad debts on a single basis (continued) Note: The Group’s receivables based on single item provision for bad debts in this year are mainly due to financial difficulties of the debtor or a longer ageing of the account or a lower probability of full recovery. (3) Bad debt reserves provisioned, reversed (or recovered) this period ʞe ධͦൗᙑ ᚃ 4. Ꮠϗሪಛ ᚃ (2) ʱᗳΐͪ ᚃ 1) ᕸሪ ௪ ᚃ ൗj ᕸ ͟ א Όᕘ ༰Эಛධf (3) ᕸሪ ر ᕘ Movement in current period 2024ϋ12˜31˚ ਗ ௪ ቖ Չ˼ಯˇ 2025ϋ6˜30˚ ᗳй Items 31 Dec 2024 Provision The amount reclassified for impairment of other non-current assets Withdrawal or reversal Write-off Other decreases 30 Jun 2025 (As restated) Ꮠϗሪಛ ᕸሪ௪ Bad debt provision for accounts receivable 775,111,669.33 34,209,537.21 17,093,155.27 – 36,450.00 2,026,275.09 824,351,636.72 ࠇTotal 775,111,669.33 34,209,537.21 17,093,155.27 – 36,450.00 2,026,275.09 824,351,636.72
Page 184
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 183 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 4. Accounts receivable (continued) (4) Accounts receivable actually written off this period. Significant accounts receivable written-off particulars: ʞe ධͦൗᙑ ᚃ 4. Ꮠϗሪಛ ᚃ (4) Ꮠϗሪಛ ᕘ ධͦ Items Written-off Amount Ꮠϗሪಛ Actually written-off accounts receivable 36,450.00 j ቖҏ ପ ͛ Company Nature of Accounts Receivable Written-off Amount Reason for Written-off Written-off Procedures Performed Whether the payment arises from related- party transactions ʮ̡ ಛ 25,000.00ԫึ 2025ϋୋɓϣ ึᙄӔᙄ щ Chongqing Fitedon Electromechanical Equipment Co., Ltd Payment for goods Not expected to be recoverable Resolution of the First Interim Meeting in 2025 of the First Board of Directions No ಛ 7,350.00ԫึ 2025ϋୋɓϣ ึᙄӔᙄ щ Zhuzhou Qiaodong Hotel Payment for goods Not expected to be recoverable Resolution of the First Interim Meeting in 2025 of the First Board of Directions No ዚᅀ ಛ 4,100.00ԫึ 2025ϋୋɓϣ ึᙄӔᙄ щ Sahnxi Lishan Fan Factory Payment for goods Not expected to be recoverable Resolution of the First Interim Meeting in 2025 of the First Board of Directions No ࠇ36,450.00 Total
Page 185
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 184 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 4. Accounts receivable (continued) (5) Accounts receivable and contract assets of the top five period-end balances collected by the debtor ʞe ධͦൗᙑ ᚃ 4. Ꮠϗሪಛ ᚃ (5) ٙ ر Ꮠϗሪಛಂ͋ቱᕘ ΥΝ༟ପಂ͋ቱᕘ Ꮠϗሪಛձ ΥΝ༟ପಂ͋ᕘ ЦᏐϗሪಛձ ΥΝ༟ପಂ͋ቱᕘ ˢԷ Ꮠϗሪಛձ ΥΝ༟ପᕸሪ ௪ಂ͋ቱᕘ ఊЗΤ၈ Company The ending balance of accounts receivable The ending balance of contract assets The ending balance of accounts receivable and contract assets Proportion to the total ending balance of accounts receivable and contract assets The ending balance of bad debt provisions for accounts receivable and contract assets ʮ̡ʿ Չɿʮ̡ Goldwind Technology Co., Ltd. 806,489,779.69 205,664,478.33 1,012,154,258.02 16.37 10,970,201.70 ΅Ϟ ʮ̡ Yunda Energy Technology Group Co., Ltd. 172,821,680.00 24,393,970.00 197,215,650.00 3.19 2,129,929.02 ʈණྠʮ̡ China Shipbuilding Industry Corporation 63,901,835.59 86,905,158.56 150,806,994.15 2.44 1,508,069.94 ʮ̡ NongHai Group Ltd. 134,569,934.02 – 134,569,934.02 2.18 80,815,988.22 ʮ̡ʿ Չɿʮ̡ Beijing Wanyuan Industry Co., Ltd. and its subsidiaries 108,392,413.49 – 108,392,413.49 1.75 103,380,746.49 ࠇTotal 1,286,175,642.79 316,963,606.89 1,603,139,249.68 25.93 198,804,935.37
Page 186
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 185 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 5. Contract assets (1) The situation of contractual assets (2) The amount and reasons for significant changes in book value during this period. Except for transferring into account receivable due to the fulfillment of obligation or settlement procedure, the carrying amount of contractual assets has not changed significantly during this period. ʞe ධͦൗᙑ ᚃ 5. ΥΝ༟ପ (1) ر 2025ϋ6˜30˚ 30 Jun 2025 ࠽ ධͦ Items Book balance Provision for impairment Carrying amount ٙ ΥΝ༟ପ Contract assets related to construction contracts 23,075,674.63 – 23,075,674.63 ٙ ΥΝ༟ପ Contract assets formed by general business 1,064,581,854.41 107,662,034.01 956,919,820.40 ࠇTotal 1,087,657,529.04 107,662,034.01 979,995,495.03 2024ϋ12˜31˚ 31 Dec 2024 ࠽ ධͦ Items Book balance Provision for impairment Carrying amount ٙ ΥΝ༟ପ Contract assets related to construction contracts 18,321,668.60 – 18,321,668.60 ٙ ΥΝ༟ପ Contract assets formed by general business 941,480,154.12 97,713,074.10 843,767,080.02 ࠇTotal 959,801,822.72 97,713,074.10 862,088,748.62 (2) ږ Ϊ ഐၑ˓ᚃᔷ ᄆ ɽᜊਗf
Page 187
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 186 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 5. Contract assets (continued) (3) Contract assets are classified and presented according to the bad debt provision method ʞe ධͦൗᙑ ᚃ 5. ΥΝ༟ପ ᚃ (3) ʱᗳΐͪ 2025ϋ6˜30˚ 30 Jun 2025 ቱᕘ ᕸሪ௪ Book balance Provision for bad debts ᕘ ˢԷ(%)ˢԷ (%)࠽ ᗳй Items Amount Percentage(%) Amount Provision ratio (%) Carrying amount ᕸሪ௪ Provision for bad debts based on individual items 16,410,480.27 1.51 12,989,527.00 79.15 3,420,953.27 ˒ಛධଡ଼Υ Including: General customer fund combination 16,410,480.27 1.51 12,989,527.00 79.15 3,420,953.27 ᕸሪ௪ Provision for bad debts by combination 1,071,247,048.77 98.49 94,672,507.01 8.84 976,574,541.76 ٙ ΥΝ༟ପ Including: Contract assets related to construction contracts 23,075,674.63 2.12 – – 23,075,674.63 ˒ಛධଡ଼Υ General customer fund combination 1,048,171,374.14 96.37 94,672,507.01 9.03 953,498,867.13 ࠇTotal 1,087,657,529.04 100.00 107,662,034.01 9.90 979,995,495.03 2024ϋ12˜31˚ 31 Dec 2024 ቱᕘ ᕸሪ௪ Book balance Provision for bad debts ᕘ ˢԷ(%)ˢԷ (%)࠽ ᗳй Items Amount Percentage(%) Amount Provision ratio (%) Carrying amount ᕸሪ௪ Provision for bad debts based on individual items 15,479,220.22 1.61 15,479,220.22 100.00 – ˒ಛධଡ଼Υ Including: General customer fund combination 15,479,220.22 1.61 15,479,220.22 100.00 – ᕸሪ௪ Provision for bad debts by combination 944,322,602.50 98.39 82,233,853.88 8.71 862,088,748.62 ٙ ΥΝ༟ପ Including: Contract assets related to construction contracts 18,321,668.60 1.91 – – 18,321,668.60 ˒ಛධଡ଼Υ General customer fund combination 926,000,933.90 96.48 82,233,853.88 8.88 843,767,080.02 ࠇTotal 959,801,822.72 100.00 97,713,074.10 10.18 862,088,748.62
Page 188
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 187 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 5. Contract assets (continued) (3) Contract assets are classified and presented according to the bad debt provision method (continued) 1) Provision for bad debts on a single basis for contract assets ʞe ධͦൗᙑ ᚃ 5. ΥΝ༟ପ ᚃ (3) ʱᗳΐͪ ᚃ 1) ᕸሪ ௪ 2025ϋ6˜30˚ቱᕘ 30 Jun 2025 Τ၈ˢԷ (%)ଣ͟ Company Book balance Provision for bad debts Provision ratio (%) Reason for provision Sanima Middle Tamor Hydropower Limited SMTHL 8,256,083.85 4,835,130.58 58.56ΌᕘϗΫ Not expected to be recoverable பʮ̡ 6,600.00 6,600.00 100.00ϗΫ Shanghai Electric Power Construction Co., Ltd. Not expected to be recoverable ʮ̡ 479,040.30 479,040.30 100.00ϗΫ Taosha Village Development Co., Ltd. Not expected to be recoverable HPD Tan Loc JSC 1,324,814.13 1,324,814.13 100.00ϗΫ Not expected to be recoverable ʮ̡ 65,000.00 65,000.00 100.00ϗΫ Guizhou Zhongshui Construction Management Co., Ltd. Not expected to be recoverable ʮ̡ 389,000.00 389,000.00 100.00ϗΫ Youyang County Xingyuan Hydropower Development Co., Ltd Not expected to be recoverable பʮ̡ 5,700,000.00 5,700,000.00 100.00ϗΫ Lintan County Zibao Water Conservancy and Power Generation Co., Ltd Not expected to be recoverable ʮ̡ 189,941.99 189,941.99 100.00ϗΫ Shaanxi Praise Gas Industry Equipment Manufacturing Co., Ltd. Not expected to be recoverable ࠇ16,410,480.27 12,989,527.00 Total
Page 189
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 188 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 5. Contract assets (continued) (3) Contract assets are classified and presented according to the bad debt provision method (continued) 2) Provision for bad debts of contract assets by portfolio ʞe ධͦൗᙑ ᚃ 5. ΥΝ༟ପ ᚃ (3) ʱᗳΐͪ ᚃ 2 ᕸሪ ௪ 2025ϋ6˜30˚ 30 Jun 2025 ˢԷ (%) Τ၈ Company Book balance Provision for bad debts Provision ratio (%) ٙ ΥΝ༟ପ Contract assets related to construction contracts 23,075,674.63 – – ˒ಛධଡ଼Υ General customer fund combination 1,048,171,374.14 94,672,507.01 9.03 ࠇTotal 1,071,247,048.77 94,672,507.01 8.84 2024ϋ12˜31˚ 31 Dec 2024 ˢԷ (%) Τ၈ Company Book balance Provision for bad debts Provision ratio (%) ٙ ΥΝ༟ପ Contract assets related to construction contracts 18,321,668.60 – – ˒ಛධଡ଼Υ General customer fund combination 926,000,933.90 82,233,853.88 8.88 ࠇTotal 944,322,602.50 82,233,853.88 8.71
Page 190
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 189 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 5. Contract assets (continued) (4) The provision for bad debts of contract assets provisioned, recovered or reversed during this period. (5) Actual contract assets written off during this period. None. 6. Receivable financing ʞe ධͦൗᙑ ᚃ 5. ΥΝ༟ପ ᚃ (4) ٙ ر Provision for this period Recovered or reversed for this period Transfer or write off for this period Reason ධͦ ItemsΪ ΥΝ༟ପᕸሪ ௪ Bad debt provision for contract assets 9,053,364.80 – – Provision based on expected credit loss model ࠇTotal 9,053,364.80 – – – (5) ΥΝ༟ପ ೌf 6. Ꮠϗಛධፄ༟ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) ვБ гිୃ Banker’s acceptance measured at fair value 369,351,164.05 320,803,304.33 වᛆ ᔷᜫኯᗇ Debt assignment certificate measured at fair value 182,928,601.01 314,816,584.57 ࠇTotal 552,279,765.06 635,619,888.90
Page 191
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 190 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 6. Receivable financing (continued) (1) Changes in receivables financing and fair value fluctuations for the current period: Note 1: According to the needs of daily fund management, the Group classifies bank acceptance bills and the debt transfer certificate into financial assets measured at fair value and the changes of which are included in other comprehensive income. Since the change of fair value at the end of the period has little impact on the statements, the group presents receivables financing according to book value. Note 2: The debt transfer certificate refers to the digital debt certificates such as Yunxin and Rongxin obtained by the Group. ʞe ධͦൗᙑ ᚃ 6. Ꮠϗಛධፄ༟ ᚃ (1) Ꮠϗಛධፄ༟͉ಂගᄣಯᜊਗʿʮ j 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ϓ͉ Cost 552,898,035.28 635,619,888.90 ࠽Fair value 552,279,765.06 635,619,888.90 ٙ ᕘ Cumulative amount of fair value changes recognized in other comprehensive income -618,270.22 – ൗ1j d гිୃʿවᛆᔷᜫኯᗇ ඎ˲Չᜊਗ ፄ༟ପd ٙڌ ͉ණྠਗ਼Ꮠϗಛධ ΐͪf ൗ2j ٙ ഃᅰοʷවᛆኯᗇf
Page 192
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 191 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 6. Receivable financing (continued) (2) Accounts receivable financing is classified and presented by bad debt provision method Note: The Group does not have a single bank acceptance bill for impairment provision. At the end of the period, the Group measures bad debt provisions based on the expected credit losses throughout its lifetime. The Group believes that the bank acceptance bills held do not have significant credit risk and will not cause significant losses due to bank defaults. ʞe ධͦൗᙑ ᚃ 6. Ꮠϗಛධፄ༟ ᚃ (2) ʱᗳ ΐͪ 2025ϋ6˜30˚ 30 Jun 2025 ቱᕘ ᕸሪ௪ Book balance Provision for bad debts ᕘ ˢԷ(%)ˢԷ (%)࠽ ᗳй Items Amount Percentage(%) Amount Provision ratio (%) Carrying amount ᕸሪ௪ Provision for bad debts by combination 554,074,283.18 100.00 1,794,518.12 0.32 552,279,765.06 гිୃ Including: Bank acceptance bill 369,351,164.05 66.66 – – 369,351,164.05 වᛆᔷᜫኯᗇ Debt transfer certificate 184,723,119.13 33.34 1,794,518.12 0.97 182,928,601.01 Չʕjᗫᑌ˙ୃᗇଡ଼Υ Including: Combination of related party tickets 1,568,010.91 0.28 – – 1,568,010.91 ɓছୃᗇଡ଼Υ General ticket combination 183,155,108.22 33.06 1,794,518.12 0.98 181,360,590.10 ࠇTotal 554,074,283.18 100.00 1,794,518.12 0.32 552,279,765.06 2024ϋ12˜31˚ 31 Dec 2024 ቱᕘ ᕸሪ௪ Book balance Provision for bad debts ᕘ ˢԷ(%)ˢԷ (%)࠽ ᗳй Items Amount Percentage(%) Amount Provision ratio (%) Carrying amount ᕸሪ௪ Provision for bad debts by combination 638,910,758.89 100.00 3,290,869.99 0.52 635,619,888.90 гිୃ Including: Bank acceptance bill 320,803,304.33 50.21 – – 320,803,304.33 වᛆᔷᜫኯᗇ Debt transfer certificate 318,107,454.56 49.79 3,290,869.99 1.03 314,816,584.57 Չʕjᗫᑌ˙ୃᗇଡ଼Υ Including: Combination of related party tickets 944,660.87 0.15 – – 944,660.87 ɓছୃᗇଡ଼Υ General ticket combination 317,162,793.69 49.64 3,290,869.99 1.04 313,871,923.70 ࠇTotal 638,910,758.89 100.00 3,290,869.99 0.52 635,619,888.90 ൗj Ꮠ ඎᕸሪ ו ᎈdʔ ɽฦ̰f
Page 193
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 192 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 6. Receivable financing (continued) (3) The provision for bad debts in the annual provision, recovery or reversal of accounts receivable financing (4) Receivable financing already used for pledge at the end of the period None. (5) Receivable financing that have been endorsed or discounted by the Group and have not expired at the end of the period: ʞe ධͦൗᙑ ᚃ 6. Ꮠϗಛධፄ༟ ᚃ (3) ᔷ ر ᕘ Movement in current period 2024ϋ12˜31˚ቖ Չ˼ಯˇ 2025ϋ6˜30˚ ᗳй Items 31 Dec 2024 Provision Withdrawal or reversal Transfer or write off Other decreases 30 Jun 2025 ௪ Impairment provision 3,290,869.99 -1,368,351.87 – – 128,000.00 1,794,518.12 ࠇTotal 3,290,869.99 -1,368,351.87 – – 128,000.00 1,794,518.12 (4) Ꮠϗಛධፄ༟ ೌf (5) ൨ତ˲ί༟ Ꮠϗಛධፄ ༟ ᕘ ධͦ Items Termination confirmation amount The confirmed amount is not terminated гිୃ Bank acceptance bill 1,607,948,031.98 – වᛆᔷᜫኯᗇ Document of creditor’s rights transfer 251,637,277.43 29,504,806.00 ࠇTotal 1,859,585,309.41 29,504,806.00
Page 194
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 193 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 6. Receivable financing (continued) (5) Receivable financing that have been endorsed or discounted by the Group and have not expired at the end of the period: (continued) Note: As of the end of the period, the Group has endorsed unexpired trade receivables financing amounting to RMB1,859,585,309.41 to suppliers for payment of material purchase prices. The management of the Group is of the view that:(1) For bank acceptance bills that have been endorsed, transferred or discounted but not yet expired, the risks and rewards associated with the ownership thereof have been substantially transferred. Therefore, such trade receivables financing and payables to suppliers have been completely derecognized. The Group’s continuing involvement in such completely derecognized unexpired trade receivables financing is limited to the scenario where the issuing bank fails to settle the amount with the bill holder. The maximum possible loss that the Group may bear due to such continuing involvement is the ending balance of the unexpired trade receivables financing endorsed by the Group to suppliers, which is RMB1,859,585,309.41.(2) For debt transfer instruments (other than Yunxin, Dilian, etc.) that have been endorsed, transferred or discounted but not yet expired, since they are with recourse, such trade receivables financing and payables to suppliers have not been derecognized. ʞe ධͦൗᙑ ᚃ 6. Ꮠϗಛධፄ༟ ᚃ (5) ൨ତ˲ί༟ Ꮠϗಛධፄ ༟ ᚃ ൗj ʚԶਠ˸˕˹ Ꮠϗಛ ධፄ༟ɛ͏࿆ 1,859,585,309.41 j(1)ߠ ვБ ᎈʿΫజ ϾҁΌ˟ᆽႩ ༈ഃᏐϗಛධፄ༟ʿᏐ˹Զਠ ಛධd͉ණྠ࿁༈ഃҁΌ˟ᆽ ᘱᚃ Σୃኽ f͉ණྠᘱ ̙ঐ௰ɽฦ̰ ͊Ցಂ Ꮠϗಛධፄ༟ಛධಂ͋ɛ͏࿆ 1,859,585,309.41ʩi(2)ৰථ ൨ତШ Ͼ͊˟ᆽႩ༈ ഃᏐϗಛධፄ༟ʿᏐ˹Զਠಛ ධf
Page 195
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 194 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 6. Receivable financing (continued) (6) Financing of accounts receivable actually written off during the period. None. 7. Prepayments (1) Aging analysis Note: On 30 Jun 2025, the Group’s prepaid accounts with an age of more than one year were RMB22,381,776.68 (The beginning of the period: RMB13,744,159.97), which were mainly prepayments for materials, because the delivery cycle was long and the materials had not arrived. ʞe ධͦൗᙑ ᚃ 6. Ꮠϗಛධፄ༟ ᚃ (6) Ꮠϗಛධፄ༟ ೌf 7. ཫ˹ಛධ (1) ؓ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) 1ϋ˸ʫ Within 1 year 180,684,755.30 179,134,225.50 1-2ϋ 1-2 years 12,426,912.53 8,204,816.07 2-3ϋ 2-3 years 4,516,009.41 1,224,148.48 3ϋ˸ɪ More than 3 years 5,438,854.74 4,315,195.42 ࠇTotal 203,066,531.98 192,878,385.47 ௪ Less: Provision for diminution in value 5,390,021.16 5,301,527.26 ࠽Net value 197,676,510.82 187,576,858.21 ൗj ٙ މ22,381,776.68ʩ ᕘjɛ͏࿆13,744,159.97 ಛdԶ ͊Ցf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 195 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 7. Prepayments (continued) (2) Prepaid accounts with an aging of over 1 year and significant amounts (3) Provision made for bad debts, transferred or recovered this period. ʞe ධͦൗᙑ ᚃ 7. ཫ˹ಛධ ᚃ (2) ಂ͋ሪᙧ൴ཀ 1ཫ ˹੮ಛ වਕఊЗ 2025ϋ6˜30˚ ሪᙧ Цཫ˹ಛධϋ͋ቱᕘ ˢԷ (%) Name of debtors 30 Jun 2025 Aging Percentage (%) ᅃᔜдʮ̡ 8,852,531.38 1ϋ˸ʫ 4.36 Saker Germany Co., Ltd. Within 1 year ʮ̡ 8,417,900.44 1ϋ˸ʫ 4.15 Chongqing Xingteng Electromechanical Equipment Co., Ltd. Within 1 year ʮ̡ 8,242,360.04 1ϋ˸ʫ 4.06 Siemens (China) Co., Ltd Within 1 year ཥ 7,960,759.64 1ϋ˸ʫ 3.92 Shenyang Kejin Special Materials Co., Ltd. (Nuclear Power) Within 1 year ʮ̡ 6,551,576.00 1ϋ˸ʫ 3.23 Zenith Precision (Beijing) Technology Co., Ltd. Within 1 year ࠇ40,025,127.50 – 19.72 Total (3) ᕸሪ ௪ වਕఊЗ 2024ϋ12˜31ϗΫ ਗ༟ପ ʱᗳЇ ௪ 2025ϋ6˜30˚ Name of debtors 31 Dec 2024 Accrued Collected or transferred back Reclassification of other non-current assets impairment provisions to prepayments impairment provisions 30 Jun 2025 ཫ˹੮ಛᕸሪ௪ 5,301,527.26 -220,906.10 – 309,400.00 5,390,021.16 Prepayment account provision for bad debts ࠇ5,301,527.26 -220,906.10 – 309,400.00 5,390,021.16 Total
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 196 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 8. Other receivables 8.1 Dividend receivable (1) The classification of dividend receivable (2) The major dividend receivable aged over 1 year ʞe ධͦൗᙑ ᚃ 8. Չ˼Ꮠϗಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) л Dividend receivable 218,980,014.96 288,932,461.02 Չ˼Ꮠϗಛ Other receivables 502,784,303.98 490,315,670.13 ࠇTotal 721,764,318.94 779,248,131.15 ௪ Less: provision for bad debts 346,567,796.34 340,616,425.89 ଋᕘ Net value 375,196,522.60 438,631,705.26 8.1 л (1) лʱᗳ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ҳ༟ఊЗ Items (or Investees) 30 Jun 2025 31 Dec 2024 ʮ̡ Chongqing Cummins Engine Co., Ltd 217,042,558.58 286,995,004.64 ݖ ʮ̡ Chongqing Hongyan Fangda Automobile Suspension Co., Ltd. 1,937,456.38 1,937,456.38 ࠇTotal 218,980,014.96 288,932,461.02 (2) ሪᙧ൴ཀ 1ٰ л ҳ༟ఊЗ 2025ϋ6˜30˚ʿՉкᓙԱኽ Items (or investee) 30 Jun 2025 Aging The reason for not receiving Whether the impairment occurs and its judgment basis ʮ̡ 1,937,456.38 5͊˕˹ ʮ̡ᐄ͍੬dՈ௪˕˹ঐɢ Chongqing Hongyan Fangda Automobile Suspension Co., Ltd. Over 5 years No payment The enterprise operate normally and have the ability to pay ࠇ1,937,456.38 Total
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 197 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 8. Other receivables (continued) 8.2 Other receivables (1) Other receivables are classified by the nature of the amount listed below (2) Aging analysis ʞe ධͦൗᙑ ᚃ 8. Չ˼Ꮠϗಛ ᚃ 8.2 Չ˼Ꮠϗಛ (1) ሯʱᗳ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ሯ Nature 30 Jun 2025 31 Dec 2024 (As restated) ˾ϗ˾˹ಛධ Collection and payment on agency basis 202,993,937.83 202,728,461.68 ༟ପeɺήஈໄಛ Assets and land disposal receivable 20,576,671.73 12,327,550.00 ᗫᑌʮ̡ಛධ The related companies of other receivable 38,053,564.95 45,399,018.48 ࢹBorrowing and interest 90,421,799.69 88,531,658.42 ږDeposit receivable 51,417,384.18 47,502,011.70 ږHousing repair fund 25,227,726.41 25,168,211.66 ږImprest fund 8,586,157.56 8,594,215.06 ಛ Prepayment for house purchase 12,622,437.20 12,622,437.20 Չ˼ Others 52,884,624.43 47,442,105.93 ࠇTotal 502,784,303.98 490,315,670.13 ௪ Less: provision for bad debts 346,567,796.34 340,616,425.89 ࠇNet value 156,216,507.64 149,699,244.24 (2) νɨ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ሪᙧ Aging 30 Jun 2025 31 Dec 2024 (As restated) 1ϋ˸ʫ Within 1 year 81,443,019.32 82,481,031.44 1Ї2ϋ 1-2 years 29,719,456.92 19,959,559.27 2Ї3ϋ 2-3 years 9,997,624.12 27,933,983.15 3ϋ˸ɪ Over 3 years 381,624,203.62 359,941,096.27 Չʕj3 Ї4ϋ Including: 3-4 years 26,640,199.77 22,190,846.88 4Ї5ϋ 4-5 years 21,507,306.36 208,431,070.83 5ϋ˸ɪ Over 5 years 333,476,697.49 129,319,178.56 ࠇTotal balance of other accounts receivable 502,784,303.98 490,315,670.13 ಯjᕸሪ௪ Less: provision for bad debts 346,567,796.34 340,616,425.89 ࠇTotal net book value of other receivables 156,216,507.64 149,699,244.24
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 198 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 8. Other receivables (continued) 8.2 Other receivables (continued) (2) Aging analysis (continued) Note: The ageing of other receivables of the Group is calculated from the date when other receivables are recognized. (3) The other receivables recognized provision for bad debts according to expected credit risk characters ʞe ධͦൗᙑ ᚃ 8. Չ˼Ꮠϗಛ ᚃ 8.2 Չ˼Ꮠϗಛ ᚃ (2) νɨ ᚃ ൗj ͉ණྠՉ˼ᏐϗಛሪᙧІ ࠇ ၑf (3) ᕸ Չ˼Ꮠϗಛ ݬݬ ͊Ը12˜ ͜ฦ̰ πᚃಂ ͜ฦ̰ πᚃಂ ͜ฦ̰ ࠇ The First Stage The Second Stage The Third Stage ᕸሪ௪ Bad Debt provision Expected credit loss within 12 months Expected credit loss within the entire duration (No credit impairment has occurred) Expected credit loss within the entire duration (Credit impairment has occurred) Total 2024ϋ12˜31˚ Balance on 31 Dec 2024 1,026,648.04 9,444,876.76 330,144,901.09 340,616,425.89 2024ϋ12˜31˚Չ˼Ꮠϗ ቱᕘ ί͉ಂ The book balance of bad debt provision for other receivables as of December 31, 2024 in the current period – – – – ݬMoving on to the second stage – – – – ݬMoving on to the third stage – – – – ݬSwitch back to the second stage – – – – ݬSwitch back to the first stage – – – – Provision -1,000,722.39 9,377,544.40 -2,425,451.56 5,951,370.45 ͉ಂᔷΫ Transferred back – – – – ͉ಂᔷቖ Transfer – – – – ቖ Write-off – – – – Չ˼ᜊਗ Other changes – – – – 2025ϋ6˜30˚ Balance on 30 Jun 2025 25,925.65 18,822,421.16 327,719,449.53 346,567,796.34
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 199 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 8. Other receivables (continued) 8.2 Other receivables (continued) (3) The other receivables recognized provision for bad debts according to expected credit risk characters (continued) 1) The other receivables recognized provision for bad debts separately: Note: The provision for bad debts of the other receivable made individually during this period were mainly due to financial difficulties or long-aging accounts of the debtor. The management of the Group is expected to be unable to recover them or to recover them in full. ʞe ධͦൗᙑ ᚃ 8. Չ˼Ꮠϗಛ ᚃ 8.2 Չ˼Ꮠϗಛ ᚃ (3) ᕸ Չ˼Ꮠϗಛ ᚃ 1) ͜༊ ಛධ 2025ϋ6˜30˚ 30 Jun 2025 ቱᕘ ᕸሪ௪ ˢԷ(%) Τ၈ Name of debtors Book balance Provision for bad debts Percentage (%)ଣ͟ Reason ʮ̡ Chongqing GENERAL Trading Chemical Co., Ltd 287,276,230.04 287,276,230.04 100.00ϗΫ Not expected to be recoverable ʮ̡ Qijiang Gear Transmission Co., Ltd 19,325,365.24 19,325,365.24 100.00ϗΫ Not expected to be recoverable ʮ̡ ʈɽข Chongqing Gangtian Property Co., Ltd. (Huigong Building) 9,680,000.00 9,680,000.00 100.00ϗΫ Not expected to be recoverable ʮ̡ Chongqing Quanhai Machinery Co., Ltd 4,981,900.79 4,981,900.79 100.00ϗΫ Not expected to be recoverable Ϟ ʮ̡ Chongqing Major Hi Tech Property Development Co., Ltd 2,942,437.20 2,942,437.20 100.00ϗΫ Not expected to be recoverable ᅅཻ䆷ཥɢʈҦஔϞ ʮ̡ Chongqing Dingjin Power Engineering Technology Co., Ltd. 1,500,000.00 1,500,000.00 100.00ϗΫ Not expected to be recoverable Չ˼ఊЗ Other companies 2,013,516.26 2,013,516.26 100.00ϗΫ Not expected to be recoverable ࠇTotal 327,719,449.53 327,719,449.53 ൗj Չ˼Ꮠϗ වਕɛ ሪᙧ ಛධ d ͉ණྠ၍ א ΌᕘϗΫf
Page 201
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 200 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 8. Other receivables (continued) 8.2 Other receivables (continued) (4) Provision for bad debts that are accrued, collected or transferred back during this period: (5) Other receivables written off by the Group during this period None. ʞe ධͦൗᙑ ᚃ 8. Չ˼Ꮠϗಛ ᚃ 8.2 Չ˼Ꮠϗಛ ᚃ (4) ٙ ر ر Movement in current period 2024ϋ12˜31˚ቖ ʱᗳЇ ཫ˹੮ಛ Չ˼ಯˇ 2025ϋ6˜30˚ ᗳй Items 31 Dec 2024 Accrued Collected or transferred back Write-off Reclassified to prepaid accounts Other decreases 30 Jun 2025 Չ˼Ꮠϗሪಛ ᕸሪ௪ Provision for bad debts of other receivable 340,616,425.89 5,951,370.45 – – – – 346,567,796.34 ࠇTotal 340,616,425.89 5,951,370.45 – – – – 346,567,796.34 (5) Չ˼Ꮠϗ ر ೌf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 201 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 8. Other receivables (continued) 8.2 Other receivables (continued) (6) Top five debtors of other receivables collected according to the arrears ʞe ධͦൗᙑ ᚃ 8. Չ˼Ꮠϗಛ ᚃ 8.2 Չ˼Ꮠϗಛ ᚃ (6) ۃ ر ሯ 2025ϋ6˜30˚ ሪᙧ ЦՉ˼Ꮠϗಛ ٙ ˢԷ(%)ᕘ Name of debtors Nature 30 Jun 2025 Aging Percentage (%) Provision for bad debts amount ಛ ࢹ 287,276,230.04 5ϋ˸ɪ 57.14 287,276,230.04 Chongqing GENERAL Trading Chemical Co., Ltd. Advances, borrowings and interest arising from trading operations Over 5 years ࢹ19,841,743.24 4-5ϋe5 ϋ˸ɪ 3.95 19,841,743.24 Qijiang Gear Transmission Co., Ltd. Borrowing and interest 4-5 years, over 5 years ږ14,306,070.00 1-2ϋe2-3ϋ 2.85 – Rudong County Finance Bureau Land transfer fee 1-2 year, 2-3 years ږ14,282,903.32 1ϋ˸ʫe 1-2ϋe2-3ϋe 3-4ϋe4-5ϋe5 ϋ˸ɪ 2.84 – Chongqing Housing Provident Fund Management Center Housing repair fund Within 1 year, 1-2 year, 2-3 years, 3-4 years, 4-5 years, over 5 years ࡰ ึྌձІ್༟๕҅ ήᎵಛ 12,327,550.00 1ϋ˸ʫ 2.45 – Planning and Natural Resources Bureau of Chongqing High tech Industrial Development Zone Management Committee Compensation for land acquisition Within 1 year ࠇ348,034,496.60 69.23 307,117,973.28 Total
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 202 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 8. Other receivables (continued) 8.2 Other receivables (continued) (7) Reported as other receivables due to centralized fund management None. (8) Receivable employee loans ʞe ධͦൗᙑ ᚃ 8. Չ˼Ꮠϗಛ ᚃ 8.2 Չ˼Ꮠϗಛ ᚃ (7) Չ ˼Ꮠϗಛ ೌf (8) ر ʈ Name of borrower Employees under the Group ږ Usage of loan Imprest ᕘ – Loan amount Ñ͉ಂ ɛ͏࿆ʩ 8,586,157.56 – This period (RMB) Ñɪಂ ɛ͏࿆ʩ 8,594,215.06 – Last period (RMB) ᕘ ɛ͏࿆ʩ 2,789,918.66 Bad debt provision amount (RMB)
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 203 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 9. Inventory (1) Classification of inventory ʞe ධͦൗᙑ ᚃ 9. π (1) πʱᗳ 2025ϋ6˜30˚ 30 Jun 2025 ቱᕘ πൻᄆ௪ŊΥΝ ࠽ ධͦ Items Book balance Provision for impairment Carrying amount ࣘRaw materials 548,824,853.18 79,947,858.33 468,876,994.85 ۜWork in progress 870,910,050.60 195,060,777.17 675,849,273.43 ۜFinished goods 822,382,616.13 69,864,495.37 752,518,120.76 ࣘRevolving materials 7,064,734.83 – 7,064,734.83 ༟ Consigned processing materials 43,014,119.43 20,530.97 42,993,588.46 ۜRelease products 113,619,636.52 643,463.69 112,976,172.83 ϓ͉ Contract performance cost 114,830,004.72 – 114,830,004.72 ࠇTotal 2,520,646,015.41 345,537,125.53 2,175,108,889.88 2024ϋ12˜31˚ 31 Dec 2024 (As restated) ቱᕘ πൻᄆ௪ŊΥΝ ࠽ ධͦ Items Book balance Provision for impairment Carrying amount ࣘRaw materials 463,594,827.92 75,046,570.94 388,548,256.98 ۜWork in progress 801,655,818.78 182,484,855.24 619,170,963.54 ۜFinished goods 802,588,331.59 67,219,005.04 735,369,326.55 ࣘRevolving materials 5,565,993.19 – 5,565,993.19 ༟ Consigned processing materials 24,588,635.27 20,530.97 24,568,104.30 ۜRelease products 19,131,714.58 1,096,183.61 18,035,530.97 ϓ͉ Contract performance cost 99,511,196.00 – 99,511,196.00 ࠇTotal 2,216,636,517.33 325,867,145.80 1,890,769,371.53
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 204 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 9. Inventory (continued) (2) Provision of impairment that are accrued, collected or transferred back during this period: The provision standards for inventory depreciation reserves are as follows: (3) The situation where the end of period inventory balance of the Group does not include the capitalization amount of borrowing costs. (4) The performance cost of this contract in this period is amortized in the amount of RMB119,904,867.08. ʞe ධͦൗᙑ ᚃ 9. π ᚃ (2) π ر ͉ಂᄣ̋ ͉ಂಯˇ Increase Decrease 2024ϋ12˜31ᔷቖ Չ˼ᔷ̈ 2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Accrued Other Collected or Transferred Back Other transfers out 30 Jun 2025 (As restated) ࣘRaw materials 75,046,570.94 4,672,468.96 264,604.92 35,786.49 – 79,947,858.33 ۜWork in progress 182,484,855.24 12,714,478.71 – 65,701.78 72,855.00 195,060,777.17 ۜFinished goods 67,219,005.04 2,663,483.35 – 17,993.02 – 69,864,495.37 ༟ Consigned processing materials 20,530.97 – – – – 20,530.97 ۜRelease products 1,096,183.61 -61,688.31 – – 391,031.61 643,463.69 ࠇTotal 325,867,145.80 19,988,742.71 264,604.92 119,481.29 463,886.61 345,537,125.53 ᅺνɨj Ϊ Items The determine basic of net realizable value The reasons of collected and transferred back ٙ ϓ͉ ਯᄆɪပdൻᄆ௪ʚ˸ᔷΫf Raw materials Subtract the estimated cost incurred until completion from the estimated selling price based on inventory age and production of products The price of the final product rose, provision for impairment is transferred back ٙ ϓ͉ ਯᄆɪပdൻᄆ௪ʚ˸ᔷΫf Work in progress Subtract the estimated cost incurred until completion from the estimated selling price based on inventory age and production of products The price of the final product rose, provision for impairment is transferred back ɪʺ Finished goods Combining inventory age and the difference between the net realizable value and the book value of inventory goods The net realizable value of finished good with provision impairment for inventory in previous year is increased (3) ಛ൬͜ f (4) ᕘ މ119,904,867.08ʩf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 205 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 10. Non-current assets due within one year 11. Other current assets ʞe ධͦൗᙑ ᚃ 10. ਗ༟ପ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024ሯ Nature ಛ Loans due within one year 17,400,000.00 17,400,000.00ಛ Loans from joint ventures ࢹInterest on loans due within one year 930,399.68 598,806.45ࢹInterest on loans from joint ventures ࠇTotal 18,330,399.68 17,998,806.45 11. ਗ༟ପ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) Unused deductible VAT 32,231,114.34 19,164,847.95 Prepaid corporate income tax 756,200.24 2,822,067.50 Չ˼ධͦ Others 5,071.17 159,185.54 ࠇTotal 32,992,385.75 22,146,100.99
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 206 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 12. Loans and advances to customers 12.1 Loans and advances to customers aged within one year (1) Industrial-based classification of loans and advances to customer (2) Location-based classification of loans and advances to customer ʞe ධͦൗᙑ ᚃ 12. ൲ಛʿྦಛ 12.1 ൲ಛʿྦಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 Άุ൲ಛձྦಛ Loans and advances to corporations – – Ñ൲ಛ – Loans 456,522,320.00 379,522,320.00 Ñ൨ତ༟ପ – Deposit of capital discounted 24,105,478.94 7,319,672.93 ࢹAccrued interest 353,948.27 358,456.87 ൲ಛձྦಛᐼᕘ Total 480,981,747.21 387,200,449.80 ಯj൲ಛฦ̰௪ Less: Provision for impairment 12,017,465.48 11,486,382.15 ࠽Carrying amount 468,964,281.73 375,714,067.65 (1) Бุʱб ر 2025ϋ6˜30˚ ˢԷ(%) 2024ϋ12˜31˚ ˢԷ(%) Бุʱб Industry 30 Jun 2025 Percentage (%) 31 Dec 2024 Percentage (%) Ⴁிุ Manufacturing 480,981,747.21 100.00 387,200,449.80 100.00 ൲ಛձྦಛᐼᕘ Total 480,981,747.21 100.00 387,200,449.80 100.00 (2) ήਜʱб ر 2025ϋ6˜30˚ ˢԷ(%) 2024ϋ12˜31˚ ˢԷ(%) ήਜʱб Area 30 Jun 2025 Percentage (%) 31 Dec 2024 Percentage (%) ήਜ Southwest 480,981,747.21 100.00 387,200,449.80 100.00 ൲ಛձྦಛᐼᕘ Total 480,981,747.21 100.00 387,200,449.80 100.00
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 207 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 12. Loans and advances to customers (continued) 12.1 Loans and advances to customers aged within one year (continued) (3) Guarantee type based classification of loans and advances to customers (4) No overdue loans of both beginning balance and ending balance. (5) Provision of impairment that are accrued, collected or transferred back during this period: ʞe ධͦൗᙑ ᚃ 12. ൲ಛʿྦಛ ᚃ 12.1 ൲ಛʿྦಛ ᚃ (3) ˙όʱб ر 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ͜൲ಛ Unsecured loan 310,022,433.89 172,174,002.35 ᗇ൲ಛ Guaranteed loan 62,202,413.32 99,243,701.89 ൲ಛ Collateral loan 108,756,900.00 115,782,745.56 ൲ಛ Including: Mortgaged loan 108,756,900.00 115,782,745.56 ൲ಛձྦಛᐼᕘ Gross loans and advances 480,981,747.21 387,200,449.80 (4) ѩೌགྷಂ ൲ಛf (5) ٙ ر 2025ϋ1-6˜ 2024ϋ1-6˜ From Jan-Jun 2025 From Jan-Jun 2024 ͜ฦ̰͜ฦ̰ ධͦ Items Single item expected credit loss Single item Expected credit loss 2024ϋ12˜31˚ 31 Dec 2024 – 11,486,382.15 – 12,466,641.89 Add: Accrued in current period – 531,083.33 – -980,259.74 2025ϋ6˜30˚ 30 Jun 2025 – 12,017,465.48 – 11,486,382.15
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 208 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 12. Loans and advances to customers (continued) 12.2 Loans and advances to customers aged over one year: (1) Industrial-based classification of loans and advances to customer (2) Location-based classification of loans and advances to customer ʞe ධͦൗᙑ ᚃ 12. ൲ಛʿྦಛ ᚃ 12.2 ൲ಛʿྦಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 Άุ൲ಛձྦಛ Loans and advances to corporations – – Ñ൲ಛ –Loans 496,000,000.00 508,000,000.00 ࢹAccrued interest 330,666.66 454,850.00 ൲ಛձྦಛᐼᕘ Gross loans and advances 496,330,666.66 508,454,850.00 ಯj൲ಛฦ̰௪ Less: Provision for impairment 12,400,000.00 15,338,761.22 ࠽Carrying amount of loans and advance 483,930,666.66 493,116,088.78 (1) Бุʱб ر 2025ϋ6˜30˚ ˢԷ(%) 2024ϋ12˜31˚ ˢԷ(%) Бุʱб Industry 30 Jun 2025 Proportion (%) 31 Dec 2024 Proportion (%) Ⴁிุ Manufacturing 496,330,666.66 100.00 508,454,850.00 100.00 ൲ಛձྦಛᐼᕘ Total 496,330,666.66 100.00 508,454,850.00 100.00 (2) ήਜʱб ر 2025ϋ6˜30˚ ˢԷ(%) 2024ϋ12˜31˚ ˢԷ(%) ήਜʱб Area 30 Jun 2025 Proportion (%) 31 Dec 2024 Proportion (%) ήਜ Southwest 496,330,666.66 100.00 508,454,850.00 100.00 ൲ಛձྦಛᐼᕘ Total 496,330,666.66 100.00 508,454,850.00 100.00
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 209 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 12. Loans and advances to customers (continued) 12.2 Loans and advances to customers aged over one year: (3) Guarantee type based classification of loans and advances to customers (4) The beginning balance and ending balance of the group are no overdue loans. (5) Provision of impairment that are accrued, collected or transferred back during this period: ʞe ධͦൗᙑ ᚃ 12. ൲ಛʿྦಛ ᚃ 12.2 ൲ಛʿྦಛ (3) ˙ό ر 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ᗇ൲ಛ Guaranteed loan – – ͜൲ಛ Credit loans 496,330,666.66 508,454,850.00 ൲ಛձྦಛᐼᕘ Total 496,330,666.66 508,454,850.00 (4) ѩೌགྷಂ ൲ಛ (5) ٙ ر 2025ϋ1-6˜ 2024ϋ1-6˜ From Jan-Jun 2025 From Jan-Jun 2024 ͜ฦ̰͜ฦ̰ ධͦ Items Single item Expected credit loss Single item Expected credit loss 2024ϋ12˜31˚ 31 Dec 2024 – 15,338,761.22 – 9,756,043.40 Add: Accrued in current period – -2,938,761.22 – 5,582,717.82 2025ϋ6˜30˚ 30 Jun 2025 – 12,400,000.00 – 15,338,761.22
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 210 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 13. Other equity instruments investment (1) Investment situation of other equity instruments (2) There has been no termination of recognition of other equity instrument investments in the Group this year. ʞe ධͦൗᙑ ᚃ 13. Չ˼ᛆूʈՈҳ༟(1) ر ͉ಂᄣಯᜊਗ Increase or decrease in the current period ධͦ 2024ϋ12˜31˚ ̋ҳ༟ ಯˇҳ༟ ɝՉ˼ၝΥ л ɝՉ˼ၝΥ ฦ̰ Չ˼ 2025ϋ6˜30˚ л ϗɝ ɝ ٙ л ɝ ٙ ฦ̰ ˸ ඎ ɝ Չ˼ၝΥϗू Ϊ Items 31 Dec 2024 Additional investment Reduce investment Gains recognized in other comprehensive income Losses recognized in other comprehensive income Other 30 Jun 2025 Dividend income recognized this period Accumulated gains recognized in other comprehensive income at the end of this period Accumulated losses recognized in other comprehensive income at the end of this period Reasons for designating fair value measurement with changes recognized in other comprehensive income (As restated) ᛆ ҳ༟ Equity investment in Youyan Powder New Materials Co., Ltd 162,892,620.00 – – 13,280,355.00 – – 176,172,975.00 – 129,479,914.00 –ҳ༟ Non trading investments ɧΆุ၍ଣΥྫ Υྫ Chongqing Nengtou Runxin No.3 Enterprise Management Partnership Enterprise (Limited Partnership) 1,426,883.68 – – – – – 1,426,883.68 – – –ҳ༟ Non trading investments ࠇTotal 164,319,503.68 – – 13,280,355.00 – – 177,599,858.68 – 129,479,914.00 – (2) f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 211 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 14. Other debt investments (1) Other debt investment situations (2) Significant other debt investments at period-end ʞe ධͦൗᙑ ᚃ 14. Չ˼වᛆҳ༟ (1) ر 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 වՎ Bond 32,422,242.33 – ࠇTotal 32,422,242.33 – (2) Չ˼වᛆҳ༟ ࠽ ɝՉ˼ၝΥ ࠽ ᕘ ࠽ ᕘ Չ˼වᛆҳ༟ධͦ Items par value amortized cost fair value Accumulated amount of changes in fair value recorded in other comprehensive income The amount of impairment provision already made 25तйව 05(2500005) Extraordinarily long-term special treasury bond (2500005) 32,356,502.04 32,356,502.04 32,422,242.33 65,740.29 – ࠇTotal 32,356,502.04 32,356,502.04 32,422,242.33 65,740.29 –
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 212 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 15. Long-term receivable (1) Situation of Long-term receivable Note: In order to construct the R&D center of high-powered engine technology and production line project of high-powered engine, National Development Fund Co., Ltd entrusted China Development bank Co., Ltd to issue the entrusted loan to the Group for project capital investment. The total amount of this loan is RMB122,000,000 which is restricted to the construction of the R&D center of high-powered engine technology and production line project of high-powered engine. The term of the loan is from 14 March 2016 to 14 March 2026. The loan interest shall be calculated at the fixed annual rate of 1.2% and paid quarterly. Chongqing Cummins borrowed from the Group through shareholder loan. (2) Long term receivables provisioned for bad debts The Group’s long-term receivables are loans to related parties. According to the Group’s financial asset accounting policies, no provision for bad debts is made. ʞe ධͦൗᙑ ᚃ 15. ಂᏐϗಛ (1) ر 2025ϋ6˜30˚ 2024ϋ12˜31˚ 30 Jun 2025 31 Dec 2024 ࠽࠽ ධͦ Items Book balance Provision for Impairment Carrying amount Book balance Provision for impairment Carrying amount ಛ ൗ1) Receivable loans from related parties (Note 1) 17,400,000.00 – 17,400,000.00 26,100,000.00 – 26,100,000.00 ࢹReceivable interest on related party loans 930,399.68 – 930,399.68 898,209.68 – 898,209.68 ٙ ಂᏐϗಛ Less: long-term receivables due within one year 18,330,399.68 – 18,330,399.68 17,998,806.45 – 17,998,806.45 ࠇTotal – – – 8,999,403.23 – 8,999,403.23 ൗj ೯ʕ ːձɽ৵ɢ೯ਗዚ͛ପᇞධͦd ʮ̡Σ͉ණྠ ࿁ ᕘ ࠇ122,000,000މࠢ 2016ϋ 3˜14˚Ї 2026ϋ 3˜14 ɽ৵ɢ ೯ʕːձɽ৵ɢ೯ ணd൲ಛлଟ ϋлଟ 1.2%f ࠾؇ٰ f (2) ر ࠾ ݁ࠇ ᕸሪ௪f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 213 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 16. Long-term equity investment (1) Long term equity investment situation ʞe ධͦൗᙑ ᚃ 16. ᛆҳ༟(1) ر ͉ϋᄣಯᜊਗ Increase or decrease ˢԷ (%)ӔᛆˢԷ (%)ಯˇҳ༟ Չ˼ᛆूᜊਗ ٙ ଋฦू ٙݼ л Չ˼ ϋ͋ቱᕘ Name of investee Accounting method Percentage of shareholdings Voting rights Cost of investment 31 Dec 2024 Increase or decrease in investment Other changes in equity Investment gain or loss recognized under equity method Cash dividend declared Others 30 Jun 2025 ΥᐄΆุ Joint ventures – – – – – – – – – – – CQ Cumminsج Equity method 50 50 370,189,551.00 623,933,426.23 – – 329,003,500.00 217,042,558.56 – 735,894,367.67 ࠇSubtotal – – – 370,189,551.00 623,933,426.23 – – 329,003,500.00 217,042,558.56 – 735,894,367.67 ᑌᐄΆุ Associates – – – – – – – – – – – ʮ̡ ᅅABBʮ̡ Chongqing Hitachi Energy Transformer Co., Ltd. (Original name: Chongqing ABB Power Transformer Co., Ltd.) ج Equity method 37.8 37.8 236,651,166.00 409,122,632.21 – – 47,237,606.48 28,768,673.30 – 427,591,565.39 ʮ̡ Chongqing Hongyan Fangda AUTOMOBILE Suspension Co., Ltd. ج Equity method 44 44 51,306,166.00 123,098,842.33 – – -347,850.82 – – 122,750,991.51 ʮ̡ ൗ1 Exedy (Chongqing) Drive System Co., Ltd. (note1) ج Equity method 27 22.22 16,880,157.00 80,531,607.06 – – -6,161,939.40 1,350,000.00 – 73,019,667.66 ʮ̡ Knorr-Brem se Systems for Commercial Vehicles (Chongqing) Ltd. ج Equity method 34 34 44,231,369.00 74,965,087.95 – – 9,568,201.24 – – 84,533,289.19 பʮ̡ Chongqing jiangbei machinery Co., Ltd.ج Equity method 41 41 57,933,968.00 98,144,016.08 – – 3,618,422.25 – – 101,762,438.33 จɽл WPGൗ2 Italy WPG (note 2)ج Equity method 49 49 6,058,193.00 – – – – – – – ᅅ ʮ̡ ᅅग़ᇋӛԓෂਗ பʮ̡ Chongqing Arrows Auto Transmission Parts Co., Ltd.(Original name: Chongqing Shenjian Automotive Transmission Parts Co., Ltd.) ج Equity method 19.12 19.12 85,808,049.00 82,419,669.61 – 28,301.53 4,467,630.64 – – 86,915,601.78 பʮ̡ ൗ3 Minqin Guoneng Wind Power Co., Ltd. (note 3) ج Equity method 49 49 81,340,000.00 81,340,000.00 – – 1,435,742.72 – – 82,775,742.72 ʮ̡ Chongqing Sino-Germany Smart Factory Solutions Co., Ltd. ج Equity method 40 40 20,658,196.18 – 20,658,196.18 – 312,082.04 – – 20,970,278.22 ࠇSubtotal 600,867,264.18 949,621,855.24 20,658,196.18 28,301.53 60,129,895.15 30,118,673.30 1,000,319,574.80 ࠇTotal 971,056,815.18 1,573,555,281.47 20,658,196.18 28,301.53 389,133,395.15 247,161,231.86 1,736,213,942.47
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 214 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 16. Long-term equity investment (continued) (1) Long term equity investment situation (continued) Note 1: Difference between the percentage of shareholding and voting rights is derived from the difference between numbers of shareholders in the board of directors and the percentage of shareholding. Note 2: The Group has fully recognized the investment loss of Italian WGP equity investment in 2018. Due to WGP’s operating difficulties, the company has submitted a voluntary bankruptcy liquidation application to the relevant Italian court on August 6, 2019. The company has not completed liquidation on 30 June 2025. Note 3: According to the first meeting of the 6th Board of Directors of the Group in 2023, it was agreed that the Group and State Energy Group Gansu Electric Power Co., Ltd. would establish a joint venture company, Minqin Guoneng Wind Power Co., Ltd., with a registered capital of RMB166 million. Among them, the Group contributed RMB81.34 million in cash, accounting for 49%. As of June 30, 2025, the actual contribution was RMB81.34 million. ʞe ධͦൗᙑ ᚃ 16. ᛆҳ༟ ᚃ (1) ᚃ ൗ1j ମӻᛆ ମf ൗ2j ͉ණྠʊί 2018࿁จɽл WGPᛆҳ༟ΌᕘᆽႩҳ༟ฦ WGPᐄѢᗭ d ༈ʮ̡ 2019ϋ8˜6ᗫ ৫ʹІᗴॎପၑ͡ሗd࿚ ˟2025ϋ6˜30͊ ၑҁଭf ൗ3ԫึ 2023ϋ ʮ̡ϓͭ ࠢ பʮ̡ d ൗ̅༟͉ 1.66ᄂ ʩd ̈༟ 8,134ຬ ʩdЦ ˢ49%d࿚ ˟2025ϋ6˜30 ˚ྼყ̈༟8,134.00ຬʩf
Page 216
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 215 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 17. Investment property (1) Investment property at cost measurement model ʞe ධͦൗᙑ ᚃ 17. ήପ (1) ήପ ࠇ ධͦ Items Buildings Total ࠽ࡡࠦI. Book balance 2024ϋ12˜31˚ Balance on 31 Dec 2024 258,207,531.88 258,207,531.88 ᕘ Increase this period 11,364,106.49 11,364,106.49 ༟ପᔷɝ Including: transfer from fixed assets 9,405,808.69 9,405,808.69 ᒅɝ Purchase 1,958,297.80 1,958,297.80 ᕘ Reduced this period 11,332,045.21 11,332,045.21 ༟ପ Including: transferred to fixed assets 6,532,045.21 6,532,045.21 ᔷ̈ЇೌҖ༟ପ transferred to intangible assets 4,800,000.00 4,800,000.00 2025ϋ6˜30˚ Balance on 30 Jun 2025 258,239,593.16 258,239,593.16 ұᔚ II. Accumulated depreciation 2024ϋ12˜31˚ Balance on 31 Dec 2024 67,375,069.11 67,375,069.11 ᕘ Increase this period 5,316,404.47 5,316,404.47 ᛅቖ Including: accrued or amortized 3,381,865.03 3,381,865.03 ༟ପᔷɝ Transfer from fixed assets 1,934,539.44 1,934,539.44 ᕘ Reduced this period 4,756,619.12 4,756,619.12 ༟ପ Including: transferred to fixed assets 2,740,619.12 2,740,619.12 ᔷ̈ЇೌҖ༟ପ transferred to intangible assets 2,016,000.00 2,016,000.00 2025ϋ6˜30˚ Balance on 30 Jun 2025 67,934,854.46 67,934,854.46 ࠽III. Net carrying amount 1.2025ϋ6˜30˚ 1. Balance on 30 Jun 2025 190,304,738.70 190,304,738.70 2.2024ϋ12˜31˚ 2. Balance on 31 Dec 2024 190,832,462.77 190,832,462.77
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 216 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 17. Investment property (continued) (2) The Group had no investment real estate without a property right certificate on June 30, 2025. (3) There is no significant impairment in the group’s investment property and no accrued is made for related impairment on June 30, 2025. 18. Property, Plant and Equipment ʞe ධͦൗᙑ ᚃ 17. ήପ ᚃ (2) ҳ ήପf (3) ࠠ ༦f 18. ༟ପ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) ༟ପ PPE 2,604,067,092.08 2,598,427,309.26 ༟ପଣ Disposal of fixed assets – – ࠇTotal 2,604,067,092.08 2,598,427,309.26
Page 218
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 217 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 18. Property, Plant and Equipment (continued) 18.1 Property, Plant and Equipment (1) The situation of the Property, plant and equipment ʞe ධͦൗᙑ ᚃ 18. ༟ପ ᚃ 18.1 ༟ପ (1) ر ࠇ ධͦ Items Buildings Machinery Equipment Transportation Office Equipment Total ࠽ࡡࠦI. Book balance 1. 2024ϋ 12˜31 1. Balance on 31 Dec 2024 (As restated) 2,489,204,913.85 1,977,355,955.93 51,476,294.54 85,056,273.29 4,603,093,437.61 2. ᕘ 2. Increase 25,390,869.32 100,640,984.38 1,415,179.00 1,639,125.71 129,086,158.41 (1)ᒅໄ (1) Purchase 1,745,378.32 44,951,702.92 969,148.01 1,301,728.35 48,967,957.60 (2)ʈᔷɝ (2) Transfer from CIP 14,740,977.41 51,442,528.92 446,030.99 337,397.36 66,966,934.68 (3)ήପᔷɝ (3) Transfer from investment properties 6,532,045.21 – – – 6,532,045.21 (4)Չ˼ (4) Others 2,372,468.38 4,246,752.54 – – 6,619,220.92 3. ᕘ 3. Decreases 17,242,424.68 19,200,749.20 581,754.69 3,782,762.60 40,807,691.17 (1)జᄻ (1) Disposal or scrap 7,836,615.99 17,319,859.86 581,754.69 2,705,541.44 28,443,771.98 (2)ήପ (2) Transfer into Investment properties 9,405,808.69 – – – 9,405,808.69 (3)ʈ (3) Transfer into CIP – 354,437.56 – – 354,437.56 (4)Չ˼ (4) Others – 1,526,451.78 – 1,077,221.16 2,603,672.94 4. 2025ϋ 6˜30˚ 4. Balance on 30 Jun 2025 2,497,353,358.49 2,058,796,191.11 52,309,718.85 82,912,636.40 4,691,371,904.85 ұᔚ II. Accumulated depreciation and amortization 1. 2024ϋ 12˜31 1. Balance on 31 Dec 2024 (As restated) 636,105,206.75 1,255,532,227.02 39,158,331.17 59,727,688.74 1,990,523,453.68 2. ᕘ 2. Increase 39,210,457.48 61,155,278.88 986,872.66 2,465,185.21 103,817,794.23 (1) (1) Accrue 31,569,701.12 58,178,611.69 986,872.66 2,465,185.21 93,200,370.68 (2)ήପᔷɝ (2) Transfer from investment properties 2,740,619.12 – – – 2,740,619.12 (3)Չ˼ (3) Others 4,900,137.24 2,976,667.19 – – 7,876,804.43 3. ᕘ 3. Decreases 3,165,328.88 17,366,114.55 553,721.38 3,505,590.00 24,590,754.81 (1)జᄻ (1) Disposal or scrap 1,230,789.44 16,195,960.74 553,721.38 2,599,652.05 20,580,123.61 (2)ήପ (2) Transfer into Investment property 1,934,539.44 – – – 1,934,539.44 (3)ʈ (3Transfer into CIP – 301,990.29 – – 301,990.29 (4)Չ˼ (4) Others – 868,163.52 – 905,937.95 1,774,101.47 4. 2025ϋ 6˜30˚ 4. Balance on 30 Jun 2025 672,150,335.35 1,299,321,391.35 39,591,482.45 58,687,283.95 2,069,750,493.10 ௪ III. Provision for impairment 1. 2024ϋ 12˜31˚ 1. Balance on 31 Dec 2024 4,273,577.17 9,836,547.80 – 32,549.70 14,142,674.67 2. ᕘ 2. Increase 7,746,289.48 – – – 7,746,289.48 (1) (1) Accrue 7,746,289.48 – – – 7,746,289.48 3. ᕘ 3. Decreases 3,862,864.29 439,982.40 – 31,797.79 4,334,644.48 (1)జᄻ (1) Disposal or scrap 3,862,864.29 439,982.40 – 31,797.79 4,334,644.48 4. 2025ϋ 6˜30˚ 4. Balance on 30 Jun 2025 8,157,002.36 9,396,565.40 – 751.91 17,554,319.67 ࠽IV. Net carrying amount 1. 2024ϋ 12˜31 1. Balance on 31 Dec 2024 (As restated) 1,848,826,129.93 711,987,181.11 12,317,963.37 25,296,034.85 2,598,427,309.26 2. 2025ϋ 6˜30˚ 2. Balance on 30 Jun 2025 1,817,046,020.78 750,078,234.36 12,718,236.40 24,224,600.54 2,604,067,092.08
Page 219
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 218 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 18. Property, Plant and Equipment (continued) 18.1 Property, Plant and Equipment(continued) (1) The situation of the Property, plant and equipment (continued) Note: The other movements of property, plant and equipment in the current period were attributable to the exclusion of Chongqing Sino- Germany Smart Factory Solutions Co., Ltd. from the consolidation scope, asset category reclassification, and exchange rate fluctuations. (2) Temporarily idle property, plant and equipment (3) The property, plant and equipment leased out by the Group through operating leases this period None. (4) The property, plant and equipment without completed property ownership certificates None. ʞe ධͦൗᙑ ᚃ 18. ༟ପ ᚃ 18.1 ༟ପ ᚃ (1) ᚃ ൗj ༟ପՉ˼ᜊਗӻ ࠢ ʮ̡ʔॶɝΥԻᇍఖ e ༟ ʱᗳʿිଟᜊʷ f (2) ༟ପ ࠽ ධͦ Items Book balance Accumulated depreciation Provision for impairment Carrying amount ጘ Buildings 669,432.12 257,928.57 410,712.88 790.67 ዚኜண௪ Machinery equipment 19,892,107.30 10,779,218.87 9,024,772.49 88,115.94 ፬ʮண௪ Office Equipment 20,790.26 20,038.35 751.91 – ࠇTotal 20,582,329.68 11,057,185.79 9,436,237.28 88,906.61 (3) ͉ණྠ͉ಂஷཀᐄॡ༣ॡ ༟ପ ೌf (4) ༟ପ ೌf
Page 220
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 219 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 18. Property, Plant and Equipment (continued) 18.1 Property, Plant and Equipment (continued) (5) Impairment testing of fixed assets The Group conducted impairment testing on idle fixed assets at the end of the period, and the provision for impairment is as follows: ʞe ධͦൗᙑ ᚃ 18. ༟ପ ᚃ 18.1 ༟ପ ᚃ (5) ر ༟ପආ ઋ νɨj Ϊ ධͦ Items Carrying amount Recoverable amount Impairment amount Reason for impairment ፬ʮண௪ Office equipment 751.91 – 751.91జᄻ To be scrapped يBuildings 23,544,723.28 15,387,720.92 8,157,002.36࠽ No use value ዚኜண௪ Machinery equipment 9,483,199.34 86,633.94 9,396,565.40జᄻ To be scrapped ࠇTotal 33,028,674.53 15,474,354.86 17,554,319.67
Page 221
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 220 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 19. Construction In Progress 19.1 Construction In Progress (1) The situation of construction in progress: ʞe ධͦൗᙑ ᚃ 19. ʈ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) ʈ Construction in progress 113,769,282.72 125,535,386.16 ༟ Project material – – ࠇTotal 113,769,282.72 125,535,386.16 19.1 ʈ (1) ر 2025ϋ6˜30˚ 2024ϋ12˜31˚ 30 Jun 2025 31 Dec 2024 (As restated) ࠽࠽ ධͦ Items Book balance Provision for impairment Carrying amount Book balance Provision for impairment Carrying amount อᖛમಗዚධͦ Xinjiang Cotton Picking Machine Project 68,169,005.61 68,169,005.61 – 68,169,005.61 68,169,005.61 – ᓒঐ ҷிධͦ Large scale reciprocating diaphragm pump project 39,652,087.18 – 39,652,087.18 46,068,016.38 – 46,068,016.38 ᅰοʷԓගධͦ Digital workshop project 16,194,099.92 1,967,858.49 14,226,241.43 13,612,647.81 1,217,415.92 12,395,231.89 ˾͛ପᇞධͦ Ningde Times Production Line Project 6,956,775.82 – 6,956,775.82 6,375,536.88 – 6,375,536.88 Չ˼ Others 59,731,872.29 6,797,694.00 52,934,178.29 67,494,295.01 6,797,694.00 60,696,601.01 ࠇTotal 190,703,840.82 76,934,558.10 113,769,282.72 201,719,501.69 76,184,115.53 125,535,386.16
Page 222
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 221 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 19. Construction In Progress (continued) 19.1 Construction In Progress (continued) (2) The changes of significant construction in progress during this period: ʞe ධͦൗᙑ ᚃ 19. ʈ ᚃ 19.1 ʈ ᚃ (2) ʈධ͉ͦಂᜊਗ ر ͉ϋಯˇ Decrease ቱᕘ ͉ϋᄣ̋ ༟ପŊ ಂ ᛅ൬͜ Չ˼ಯˇ ϋ͋ቱᕘ ʈΤ၈ Project Name 31 Dec 2024 Increase Transferred to fixed assets or intangible assets or Long- term deferred expenses Other decreases 30 Jun 2025 (As restated) ᓒঐ ҷிධͦ Large scale reciprocating diaphragm pump project 46,068,016.38 – 6,415,929.20 – 39,652,087.18 ணධͦ Digital workshop project 13,612,647.81 2,581,452.11 – – 16,194,099.92 ʈᖵᏀᐵዚ༊᜕̨̻ ணධͦ Construction project of large process compressor test platform 6,267,382.05 – 6,267,382.05 – – τධͦ Chang’an Project 3,344,735.65 1,498,428.08 – – 4,843,163.73 ˾͛ପᇞධͦ Ningde Times Production Line Project 6,375,536.88 581,238.94 – – 6,956,775.82 ணධͦ Electromagnetic wire construction project 3,713,002.94 5,355,353.63 4,645,132.98 – 4,423,223.59 ண௪ධͦ Complete equipment project for hydrogen refueling stations – 3,544,881.29 – – 3,544,881.29 ࠇTotal 79,381,321.71 13,561,354.05 17,328,444.23 – 75,614,231.53
Page 223
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 222 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 19. Construction In Progress (continued) 19.1 Construction In Progress (continued) (2) The changes of significant construction in progress during this period: ʞe ධͦൗᙑ ᚃ 19. ʈ ᚃ 19.1 ʈ ᚃ (2) ʈධ͉ͦϋᜊਗ ر ཫၑᅰ ҳɝ ЦཫၑˢԷ (%)ܓ)%( ༟͉ʷ ᕘ ࢹ Ը๕ ʈΤ၈ Project Name Budget The ratio of input to budget(%) Project Progress(%) Accumulated amount of interest capitalization Including: Capitalized amount of interest for this year Capital Source ᓒঐҷிධͦ 76,832,000.00 97.00 95.00 – – ΆุІᘪ Large scale reciprocating diaphragm pump project Self-collected fund ணධͦ 22,000,000.00 74.00 90.00 – – ΆุІᘪ Digital workshop project Self-collected fund ணධͦ 7,300,000.00 85.85 100.00 – – ΆุІᘪ Construction project of large process compressor test platform Self-collected fund τධͦ 4,860,000.00 87.00 87.00 – – ΆุІᘪ Chang’an Project Self-collected fund ˾͛ପᇞධͦ 4,900,000.00 98.00 98.00 – – ΆุІᘪ Ningde Times Production Line Project Self-collected fund ணධͦ 47,700,000.00 35.56 35.56 – – ΆุІᘪ Electromagnetic wire construction project Self-collected fund ண௪ධͦ 6,855,000.00 51.71 51.71 – – ΆุІᘪ Complete equipment project for hydrogen refueling stations Self-collected fund ࠇ170,447,000.00 Total
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 223 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 19. Construction In Progress (continued) 19.1 Construction In Progress (continued) (3) Provision for impairment of construction in progress this period ʞe ධͦൗᙑ ᚃ 19. ʈ ᚃ 19.1 ʈ ᚃ (3) ௪ ر ቱᕘ ͉ϋᄣ̋ ͉ϋಯˇ ϋ͋ቱᕘΪ ᗳй Items 31 Dec 2024 Increase Decrease 30 Jun 2025 Reason for provision ዚґණྠண௪ Machine Tool Group Equipment 4,069,126.78 – – 4,069,126.78࠽ No useful value ዚґᛟቋʈ Casting and relocation engineering 2,557,627.00 – – 2,557,627.00 ʊ৾˟ Stopped ͞ -อᖛમಗዚධͦ Xinjiang Cotton Picking Machine Project 68,169,005.61 – – 68,169,005.61࠽ No useful value ͂ጋዚኜɛண௪ Polishing robot equipment 1,217,415.92 – – 1,217,415.92 ඛໄ Leave unused ධͦഃ Hydraulic turbine production equipment and supporting projects, etc 170,940.22 – – 170,940.22 ඛໄ Leave unused ኬ౽ঐଔዚ ዚኜɛ Intelligent welding robot for stay ring fixed guide vane – 750,442.57 – 750,442.57 ඛໄ Leave unused ࠇTotal 76,184,115.53 750,442.57 – 76,934,558.10
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 224 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 19. Construction In Progress (continued) 19.1 Construction In Progress (continued) (4) Impairment testing of construction in progress At the end of the period, the Group conducted an impairment test on suspended construction in progress, and the provision for impairment is as follows: ʞe ධͦൗᙑ ᚃ 19. ʈ ᚃ 19.1 ʈ ᚃ (4) ر ʈ ࠇ࠽ νɨj Ϊ ධͦ Items Carring amount Recoverable amount Impairment amount Reason for impairment ͞Ñอᖛમಗዚධͦ Fu Baotian-Xinjiang Cotton Picking Machine Project 68,169,005.61 – 68,169,005.61࠽ No useful value ዚґණྠண௪ Machine Tool Group Equipment 4,069,126.78 – 4,069,126.78࠽ No useful value ᛟቋʈ Casting and relocation engineering 2,557,627.00 – 2,557,627.00 ʊ৾˟ Stopped ͂ጋዚኜɛண௪ Polishing robot equipment 1,217,415.92 – 1,217,415.92 ඛໄ Leave unused ධͦഃ Hydraulic turbine production equipment and supporting projects, etc 170,940.22 – 170,940.22 ඛໄ Leave unused ኬ౽ঐଔዚ ዚኜɛ Intelligent welding robot for stay ring fixed guide vane 750,442.57 – 750,442.57 ඛໄ Leave unused ࠇTotal 76,934,558.10 – 76,934,558.10
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 225 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 20. Right-of-use Assets (1) Usage rights and asset situation (2) Impairment testing of right of use assets None. ʞe ධͦൗᙑ ᚃ 20. Դ͜ᛆ༟ପ (1) ر ࠇ ධͦ Items Buildings Machinery equipment Right to use of site Total ࠽ࡡI. Book balance 2024ϋ12˜31˚ቱᕘ Book balance on 31 Dec 2024 (As restated) 492,152,693.82 16,583,279.73 7,519,345.94 516,255,319.49 1.ᕘ 1. Increase 46,066,467.93 13,741,436.26 7,059,428.32 66,867,332.51 Չʕjॡɝ Including: leased 46,066,467.93 13,741,436.26 7,059,428.32 66,867,332.51 2.ᕘ 2. Decrease 4,013,305.21 – – 4,013,305.21 Չʕj˟ΥΝ Including: Termination of contract 4,013,305.21 – – 4,013,305.21 2025ϋ6˜30˚ቱᕘ Book balance on 30 Jun 2025 534,205,856.54 30,324,715.99 14,578,774.26 579,109,346.79 ұᔚ II. Accumulated depreciation 2024ϋ12˜31˚ቱᕘ Book balance on 31 Dec 2024 (As restated) 128,860,270.34 3,289,887.49 2,497,485.73 134,647,643.56 1.ᕘ 1. Increase 42,985,357.60 2,166,180.89 1,939,462.98 47,091,001.47 Including: accrued 42,985,357.60 2,166,180.89 1,939,462.98 47,091,001.47 2.ᕘ 2. Decrease 2,965,219.60 – – 2,965,219.60 Չʕj˟ΥΝ Including: termination of contract 2,965,219.60 – – 2,965,219.60 2025ϋ6˜30˚ቱᕘ Book balance on 30 Jun 2025 168,880,408.34 5,456,068.38 4,436,948.71 178,773,425.43 ࠽III. Carrying amount 2025ϋ6˜30˚ቱᕘ 1. Carrying amount on 30 Jun 2025 365,325,448.20 24,868,647.61 10,141,825.55 400,335,921.36 2024ϋ12˜31˚ቱᕘ 2. Carrying amount on 31 Dec 2024 (As restated) 363,292,423.48 13,293,392.24 5,021,860.21 381,607,675.93 (2) ر ೌf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 226 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 21. Intangible Assets (1) The situation of intangible assets Note: The other movements of intangible assets in the current period were due to the exclusion of Sino-Germany from the consolidation scope and exchange rate fluctuations. The restriction on intangible assets is detailed in V.27. ʞe ධͦൗᙑ ᚃ 21. ೌҖ༟ପ (1) ࠇ ධͦ Items Land-use rights Software Technical know-how Brand Customer relationships Others Total ࠽ࡡࠦI. Gross carrying amount 1. 1. Book balance on 31 Dec 2024 (As restated) 475,394,348.39 72,472,027.92 204,150,204.26 11,060,540.62 51,195,711.42 14,392,058.80 828,664,891.41 2.ᕘ 2. Increase 4,800,000.00 9,154,399.00 1,037,107.97 – – 27,610.62 15,019,117.59 (1)ᒅໄ (1) Purchase – 1,030,188.67 – – – 27,610.62 1,057,799.29 (2)ʈᔷɝ (2) Transfer from CIP – 8,124,210.33 – – – – 8,124,210.33 (3)ήପ ᔷɝ (3) Transfer from investment properties 4,800,000.00 – – – – – 4,800,000.00 (4)Չ˼ (4) Others – – 1,037,107.97 – – – 1,037,107.97 3.ᕘ 3. Decrease 2,487,538.94 639,638.28 2,402,553.74 – – 37,562.57 5,567,293.53 (1)ஈໄ (1) Disposal 2,487,538.94 – 2,402,553.74 – – – 4,890,092.68 (2)Չ˼ (2) Others – 639,638.28 – – – 37,562.57 677,200.85 4.ϋ͋ቱᕘ 4. Book balance on 30 Jun 2025 477,706,809.45 80,986,788.64 202,784,758.49 11,060,540.62 51,195,711.42 14,382,106.85 838,116,715.47 ᛅቖ II. Accumulated amortization 1. 1. Book balance on 31 Dec 2024 (As restated) 117,621,180.14 49,373,546.84 169,283,419.56 10,921,723.57 51,195,711.42 14,020,103.17 412,415,684.70 2.ᕘ 2. Increase 6,702,923.23 4,433,254.60 2,411,744.33 – – 8,339.60 13,556,261.76 (1) (1) Accrual 4,686,923.23 4,433,254.60 2,411,744.33 – – 8,339.60 11,540,261.76 (2)ήପ ᔷɝ (2) Transfer from investment properties 2,016,000.00 – – – – – 2,016,000.00 (3)Չ˼ (3) Others – – – – – – – 3.ᕘ 3. Decrease 652,589.05 577,697.45 – – – – 1,230,286.50 (1)ஈໄ (1) Disposal 652,589.05 – – – – – 652,589.05 (2)Չ˼ (2) Others – 577,697.45 – – – – 577,697.45 4. ϋ͋ቱᕘ 4. Book balance on 30 Jun 2025 123,671,514.32 53,229,103.99 171,695,163.89 10,921,723.57 51,195,711.42 14,028,442.77 424,741,659.96 ௪ III. Provision for impairment 1. 1. Book balance on 31 Dec 2024 (As restated) – – 905,773.72 – – 282,685.65 1,188,459.37 2. ᕘ 2. Increase 783,302.24 – – – – – 783,302.24 (1) (1) Accrual 783,302.24 – – – – – 783,302.24 3. ᕘ 3. Decrease – – – – – – – (1)ஈໄ (1) Disposal – – – – – – – 4.ϋ͋ቱᕘ 4. Book balance on 30 Jun 2025 783,302.24 – 905,773.72 – – 282,685.65 1,971,761.61 ࠽IV. Net carrying amount 1࠽1. Carrying amount on 30 Jun 2025 353,251,992.89 27,757,684.65 30,183,820.88 138,817.05 – 70,978.43 411,403,293.90 2࠽ 2. Carrying amount on 31 Dec 2024 (As restated) 357,773,168.25 23,098,481.08 33,961,010.98 138,817.05 – 89,269.98 415,060,747.34 ൗj ͉ಂೌҖ༟ପՉ˼ᜊਗӻ˰ီᅃ d ڝ ൗʞe27f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 227 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 21. Intangible Assets (continued) (2) The Group has no land-use rights without a property right certificate at the end of this period. (3) Impairment testing of intangible assets The Group conducted impairment testing on idle intangible assets at the end of the period, and the provision for impairment is as follows: ʞe ධͦൗᙑ ᚃ 21. ೌҖ༟ପ ᚃ (2) ɺ ήԴ͜ᛆf (3) ر ಂ͋࿁ඛໄೌҖ༟ପආ νɨ j Ϊ ධͦ Items Carrying amount Recoverable amount Impairment amount Reason for impairment મಗ᎘༊Ⴁમಗዚ ਖ਼ϞҦஔ Exclusive technology for trial production of cotton picking machines using cotton picking heads 905,773.72 – 905,773.72တԑତ Ϟ̹ఙ The technical level cannot meet the existing market demand મಗዚ᎘༊Ⴁ Trial production of cotton picking machine head 282,685.65 – 282,685.65တԑତ Ϟ̹ఙ The technical level cannot meet the existing market demand ➑ϪਜɧϪ༸ɧৢ༩ 24ଢఙ The stadium at No. 24, Sanjiu Road, Sanjiang Street, Qijiang District 739,144.22 – 739,144.22 ήଣЗໄჃdॡ༣ ɽ Due to its remote geographical location, leasing is quite challenging ➑ϪਜɧϪ༸ɧৢ༩ 24˥ϫ Cooling water pool, No. 24, Sanjiu Road, Sanjiang Street, Qijiang District 11,555.82 – 11,555.82 ʊঞᄻ Abandoned ➑ϪਜɧϪ༸ɧৢ༩ 24גݿ Air Pump Room, No. 24, Sanjiu Road, Sanjiang Street, Qijiang District 32,602.20 – 32,602.20 ʊѨ෭ Already collapsed ࠇTotal 1,971,761.61 – 1,971,761.61
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 228 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 22. Development expenditure 23. Goodwill (1) Original value of goodwill ʞe ධͦൗᙑ ᚃ 22. ක೯˕̈ ͉ಂᄣ̋ ͉ಂಯˇ Increase Decrease 2024ϋ12˜31˚ ʫක೯˕̈ Չ˼ ᔷɝೌҖ༟ପ ᔷɝಂฦू 2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Internal development expenditure Others Transfer into intangible assets Transfer into current profit and loss 30 Jun 2025 ي ண Construction of Workshop IoT Process System Based on Cloud Platform 5,001,525.86 – – – 3,229,827.75 1,771,698.11 ࠇTotal 5,001,525.86 – – – 3,229,827.75 1,771,698.11 23. ਠᚑ (1) ࠽ࡡ 2024ϋ12˜31˚ ͉ಂᄣ̋ ͉ಂಯˇ 2025ϋ6˜30˚ ҳ༟ఊЗΤ၈ Name of the invested entity 31 Dec 2024 Increase Decrease 30 Jun 2025 PTGʮ̡ PTG five entities 127,650,489.00 – – 127,650,489.00 ̔၅Փਗ CAFF brake 15,368,000.00 – – 15,368,000.00 ᜊᏀኜ Power Transformer 293,946.00 – – 293,946.00 ࠇTotal 143,312,435.00 – – 143,312,435.00
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 229 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 23. Goodwill (continued) (2) Provision for impairment of goodwill (3) Information related to the asset group or combination of asset groups where goodwill is located PTG’s five companies include: Holloway, Miloway Investments, Precision Components, PTG Advanced Development, and PTG Germany. The five PTG companies belong to the CNC machine tool division, while CAFF brake and Transformer belong to other divisions. ʞe ධͦൗᙑ ᚃ 23. ਠᚑ ᚃ (2) ௪ 2024ϋ12˜31˚ ͉ಂᄣ̋ ͉ಂಯˇ 2025ϋ6˜30˚ ҳ༟ఊЗΤ၈ Name of the invested entity 31 Dec 2024 Increase Decrease 30 Jun 2025 PTGʮ̡ PTG five entities 67,595,818.17 17,851,500.00 – 85,447,318.17 ᜊᏀኜ Transformer 293,946.00 – – 293,946.00 ࠇTotal 67,889,764.17 17,851,500.00 – 85,741,264.17 (3) ٙ ࢹڦ PTGͺᅃeϷ ҳ༟eၚཧe PTG৷ॴ ˸ʿ PTGᅃ fPTGʮ̡ ᅰછዚґʱd̔၅Փਗձ Չ˼ʱf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 230 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 23. Goodwill (continued) (4) The specific method for determining the recoverable amount When conducting a goodwill impairment test, the Group compares the book value of the relevant assets or asset group portfolio (including goodwill) with its recoverable amount. If the recoverable amount is lower than the book value, the relevant difference is included in the current profit and loss. The Group’s allocation of goodwill has not changed at the end of this period. The recoverable amount of cash-generating units or groups of cash-generating units is determined based on the five-year budget approved by the management and calculated using cash flow forecasting method. As for the cash flow over five years, the below estimated growth rate is applied for calculation. Major assumptions for discounted cash flow method: ʞe ධͦൗᙑ ᚃ 23. ਠᚑ ᚃ (4) ج d͉ණྠਗ਼ ༟ପଡ଼ଡ଼Υ ўਠᚑ ᕘආБ ᄆ ɝಂฦूf͉ණ ͉ಂ͊೯͛ᜊʷf ᕘ ʞϋಂཫၑd הڌ ݴږ ၑf ˴ ணj PTGʮ̡ ධͦ Items PTG five entities ଟ Growth rate 0% ˣлଟ Gross profit rate 40.93%-54.82% ұତଟ Discount rate 12.00%
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 231 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 23. Goodwill (continued) (4) The specific method for determining the recoverable amount (continued) The Group determines the growth rate and gross profit margin based on historical experience and market development forecasts, and adopts a pre-tax interest rate that reflects specific risks of relevant asset groups and asset group combinations as the discount rate. The growth rate during the forecast period is determined by the average five-year budget growth rate of 4.25%-16.73% of the approved sales revenue for the relevant asset groups and asset group combinations. The stable period growth rate is the weighted average growth rate of 0% used by the Group to predict the cash flow after the five-year budget, which is consistent with the forecast data in industry reports and does not exceed the long-term average growth rate of each product. ʞe ධͦൗᙑ ᚃ 23. ਠᚑ ᚃ (4) ᚃ ࢝ ଟձˣлଟdԨમ ᗫ༟ପଡ଼ձ༟ପଡ଼ ұ ᗫ༟ପ ቖਯϗ ଟ 4.25%- 16.73%͉ ݴږ ଟ 0%d d ଟf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 232 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 24. Long-term deferred expenses ʞe ධͦൗᙑ ᚃ 24. ᛅ൬͜ 2024ϋ12˜31˚ ͉ಂᄣ̋ ͉ಂᛅቖ ͉ಂՉ˼ಯˇ 2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Increase Amortization Other decreases 30 Jun 2025 ᅼՈ Mold 857,828.66 – 857,828.66 – – ҷி Equipment decoration and renovation 12,535,070.38 15,103,336.65 2,310,606.76 – 25,327,800.27 Զา൬ Heating fee 2,984,722.59 2,149,742.03 5,134,464.62 – – Չ˼ Others 8,228,035.52 1,029,126.59 1,572,247.52 – 7,684,914.59 ࠇTotal 24,605,657.15 18,282,205.27 9,875,147.56 – 33,012,714.86 ௪ Less: provision for impairment-Mold – – – – – ࠽Net Carrying Amount 24,605,657.15 18,282,205.27 9,875,147.56 – 33,012,714.86
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 233 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 25. Deferred tax assets and deferred tax liabilities (1) Deferred income tax assets and liabilities without set-off ʞe ධͦൗᙑ ᚃ 25. ව (1) ව 2025ϋ6˜30˚ 30 Jun 2025 ࣛ ମ ༟ପ ව ධͦ Items Deductible temporary differences (Deductible tax losses) Deferred tax assets (Deferred tax liabilities) ༟ପ I. Deferred tax assets 1,125,011,781.28 175,217,896.10 ௪ Provision for impairment 704,978,714.23 110,100,810.65 ϔᑦฦ Deductible tax loss 110,629,893.93 16,616,924.54 ව Lease liabilities 222,688,012.03 33,262,120.07 ϗू Deferred revenue 35,351,658.77 5,617,292.40 ৗ;ʿᗘৗ၅л Retirement and termination benefit 8,914,658.03 1,412,536.09 ཫ൬͜ Accrued expenses 39,821,870.85 7,659,598.78 ᜊਗ Change in fair value 2,626,973.44 548,613.58 ව II. Deferred tax liabilities 587,162,278.35 108,988,192.49 Չ˼ᛆूʈՈҳ༟ ᜊਗ Changes in fair value of other equity instrument investments 129,479,914.00 32,376,761.74 ࠽Appreciation of assets valuation 76,584,206.46 15,840,240.85 ϔৰɺή ࠽ One-time deduction of land use right before tax 136,429,045.89 20,464,356.88 ϔৰዚኜ ࠽ One-off deduction of book value of machinery and equipment before tax 16,829,928.35 2,524,489.24 ᜊਗ Changes in fair value 16,977,440.28 2,696,545.07 Դ͜ᛆ༟ପ Right of Use Assets 210,861,743.37 35,085,798.71
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 234 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 25. Deferred tax assets and deferred tax liabilities (continued) (1) Deferred income tax assets and liabilities without set-off (continued) (2) Unrecognized deferred tax assets ʞe ධͦൗᙑ ᚃ 25. ව ᚃ (1) ව ᚃ 2024ϋ12˜31˚ 31 Dec 2024 ࣛ ମ ༟ପ ව ධͦ Items Deductible temporary differences (Deductible tax losses) Deferred tax assets (Deferred tax liabilities) ༟ପ I. Deferred tax assets (As restated) 1,057,074,959.17 168,925,380.33 ௪ Provision for impairment 656,160,146.07 102,829,689.84 ϔᑦฦ Deductible tax loss 110,629,893.93 16,616,924.54 ව Lease liabilities 198,637,928.74 33,599,182.75 ϗू Deferred revenue 32,730,490.64 5,403,572.87 ৗ;ʿᗘৗ၅л Retirement and termination benefit 10,915,278.01 1,912,891.09 ཫ൬͜ Accrued expenses 45,374,248.34 8,169,073.22 ᜊਗ Changes in fair value 2,626,973.44 394,046.02 ව II. Deferred tax liabilities (As restated) 554,944,750.50 103,800,349.28 Չ˼ᛆूʈՈҳ༟ʮ ᜊਗ Changes in fair value of other equity instrument investments 116,199,559.00 29,049,889.75 ࠽Appreciation of assets valuation 74,656,807.04 15,474,034.95 ϔৰɺή ࠽ One-time deduction of land use right before tax 138,283,004.61 20,742,450.69 ϔৰዚኜ ࠽ One-off deduction of book value of machinery and equipment before tax 14,627,755.08 2,194,163.24 ᜊਗ Changes in fair value 11,004,098.73 2,350,684.68 Դ͜ᛆ༟ପ Right of Use Assets 200,173,526.04 33,989,125.97 (2) 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) ମ Deductible temporary differences 1,233,388,713.97 1,123,670,693.52 ϔᑦฦ Deductible tax losses 1,844,975,036.81 1,723,690,784.69 ࠇTotal 3,078,363,750.78 2,847,361,478.21
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 235 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 25. Deferred tax assets and deferred tax liabilities (continued) (3) Deductible tax losses unrecognized in deferred tax assets will be expired in the following years Note: The accumulated loss of PTG Group has no expiry date, so the above data does not include the accumulated loss of PTG Group’s unrecognized deferred income tax assets at the end this period of RMB355,297,215.23 (the accumulated loss at the beginning of the period was RMB322,068,470.41). ʞe ධͦൗᙑ ᚃ 25. ව ᚃ (3) ϔᑦ Ցಂ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ϋ΅ Year 30 Jun 2025 31 Dec 2024 (As restated) 2024ϋ 2024 – – 2025ϋ 2025 – 61,670,115.25 2026ϋ 2026 154,150,767.83 154,150,767.83 2027ϋ 2027 44,255,288.94 44,590,272.54 2028ϋ 2028 68,363,316.95 70,164,718.62 2029ϋ 2029 240,676,953.06 271,694,531.22 2030ϋ 2030 233,195,064.15 202,038,433.35 2031ϋ 2031 89,152,392.54 112,647,600.09 2032ϋ 2032 185,595,025.41 213,338,639.34 2033ϋ 2033 496,661,092.18 126,719,604.14 2034ϋ 2034 139,216,847.97 466,676,102.31 2035ϋ 2035 193,708,287.78 – ࠇTotal 1,844,975,036.81 1,723,690,784.69 ൗj PTG݂ ᅰኽʔў PTGණྠಂ͋͊ᆽ ᑦฦɛ ͏࿆355,297,215.23ࠇ ᑦฦɛ͏࿆322,068,470.41ʩ f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 236 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 26. Other non-current assets Note: The contract assets formed by the construction contract are mainly formed by the EPC project carried out by the second level subsidiary of the Group, the Water Turbine Company. At the end of the period, impairment tests were conducted on projects that have been suspended, and a cumulative provision for impairment was made of RMB36,836,244.94. In this period, a provision of RMB0.00was made. ʞe ධͦൗᙑ ᚃ 26. ਗ༟ପ 2025ϋ6˜30˚ 30 Jun 2025 ࠽ ධͦ Items Book balance Impairment provision Carrying amount ཫ˹ண௪ʿʈಛ Prepaid equipment and engineering 27,767,081.26 – 27,767,081.26 ϓ͉ Contract performance costs 80,176,492.17 – 80,176,492.17 ܊גDebt housing 8,002,837.00 8,002,837.00 – ٙ ΥΝ༟ପ Contract assets formed by construction contracts 36,836,244.94 36,836,244.94 – ཫ˹ॡ༣ಛ Prepaid lease payments 9,897,843.25 – 9,897,843.25 ࠇTotal 162,680,498.62 44,839,081.94 117,841,416.68 2024ϋ12˜31˚ 31 Dec 2024 ࠽ ධͦ Items Book balance Impairment provision Carrying amount ཫ˹ண௪ʿʈಛ Prepaid equipment and engineering 22,893,477.11 309,400.00 22,584,077.11 ϓ͉ Contract performance costs 76,994,418.26 – 76,994,418.26 ܊גDebt housing 8,002,837.00 8,002,837.00 – ٙ ΥΝ༟ପ Contract assets formed by construction contracts 68,751,997.80 55,985,696.66 12,766,301.14 ཫ˹ॡ༣ಛ Prepaid lease payments 34,364,632.18 – 34,364,632.18 ࠇTotal 211,007,362.35 64,297,933.66 146,709,428.69 ൗj ӻ͉ ࢝EPCධͦ ࠽ ௪ 36,836,244.94 0.00ʩf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 237 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 27. Assets with restricted ownership or usage rights ʞe ධͦൗᙑ ᚃ 27. ༟ପ 2025ϋ6˜30˚ 30 Jun 2025 ر ධͦ Items Book balance Carrying amount Restricted situation ږCash and cash equivalents 616,955,004.04 616,955,004.04ڭ πఊf As a guarantee amount for issuing acceptance bills by banks, the central bank’s statutory reserve requirement, guarantee deposit, letter of credit deposit, pledge of fixed deposit certificates. Ꮠϗୃኽ Notes receivable 67,441,885.63 67,441,885.63гිୃ Acceptance bills issued by banks pledging bills of exchange 2024ϋ12˜31˚ 31 Dec 2024 ر ධͦ Items Book balance Carrying amount Restricted situation ږCash and cash equivalents 642,156,043.25 642,156,043.25ڭ πఊf As a guarantee amount for issuing acceptance bills by banks, the central bank’s statutory reserve requirement, guarantee deposit, letter of credit deposit, pledge of fixed deposit certificates. Ꮠϗୃኽ Notes receivable 33,289,624.49 33,289,624.49гිୃ Acceptance bills issued by banks pledging bills of exchange
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 238 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 28. Short-term loans (1) The category of short-term loans Note: On June 30, 2025, the annual interest rate of the above borrowings of the Group was 2.11%-6.00% (31 Dec 2024: 2.30%-5.91%). (2) At the end of this period, there is no overdue short-term loan. 29. Due to customers, banks and other financial institutions ʞe ධͦൗᙑ ᚃ 28. ಛ (1) ಛʱᗳ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ಛᗳй Category 30 Jun 2025 31 Dec 2024 (As restated) ಛ Pledged loans 347,177,822.45 185,876,718.53 ಛ Mortgage loans – – ಛ Unsecured loans 225,000,000.00 230,600,304.99 ࢹAccrued interest 899,763.18 458,338.26 ࠇTotal 573,077,585.63 416,935,361.78 ൗj ಛϋ މ2.11%-6.00%j 2.30%-5.91%)f (2) ಂ ಛf 29. ׳ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Category 30 Jun 2025 31 Dec 2024 ಂπಛ Current deposit 605,589,209.93 408,088,941.32 πಛ Time deposit (including notification deposit) 500,330,000.00 405,330,000.00 ࢹAccrued interest 3,195,772.17 2,750,324.49 ࠇTotal 1,109,114,982.10 816,169,265.81
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 239 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 30. Notes payable Note 1: The Group has no bills payable due and unpaid at the end of this period. Note 2: The age of notes payable of the Group at the end of this period is within one year. 31. Accounts payable (1) The types of accounts payable ʞe ධͦൗᙑ ᚃ 30. Ꮠ˹ୃኽ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ୃኽ၇ᗳ Items 30 Jun 2025 31 Dec 2024 гිୃ Bank acceptance bill 1,618,083,927.18 1,433,852,853.05 гිୃ Commercial acceptance bill – 17,756,828.96 ࠇTotal 1,618,083,927.18 1,451,609,682.01 ൗ1j Ꮠ˹ୃኽf ൗ2j ሪᙧѩί 1ϋ˸ ʫf 31. Ꮠ˹੮ಛ (1) Ꮠ˹੮ಛΐͪ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) ಛ Material payable 2,871,707,676.80 2,539,426,958.80 Ꮠ˹༶൬ Freight payable 30,304,202.02 38,915,746.07 Ꮠ˹ண௪ಛ Equipment payable 106,178,131.53 96,064,410.09 Ꮠ˹ʈಛ Project payable 2,997,637.39 4,556,207.53 Չ˼ Others 66,048,065.52 50,150,338.17 ࠇTotal 3,077,235,713.26 2,729,113,660.66
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 240 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 31. Accounts payable (continued) (2) Important accounts payable with an age of over 1 year at the end of this period: (3) The aging analysis of account payable based on its invoice date: ʞe ධͦൗᙑ ᚃ 31. Ꮠ˹੮ಛ ᚃ (2) ሪᙧ൴ཀ1Ꮠ˹੮ಛ 2025ϋ6˜30˚Ϊ ఊЗΤ၈ Company name 30 Jun 2025 Unpaid and untransferred reasons ࠢ ʮ̡ Inspur Smart City Technology Co., Ltd 26,699,445.07 ဆਗ˹ಛd͊Ց˹ಛಂ Rolling payments, not yet due ΅ ʮ̡ Hangzhou Turbine Power Group Co., Ltd.(HTC) 18,148,975.00 ဆਗ˹ಛd͊Ց˹ಛಂ Rolling payments, not yet due ͺЎ֍ཥዚ ʕ ʮ̡ WEIAM Electric Motors (China) Co., Ltd. 8,920,575.22 ဆਗ˹ಛd͊Ց˹ಛಂ Rolling payments, not yet due ࠢ ʮ̡ Chongqing Changli Wire & Cable Co., Ltd. 7,903,981.72 ဆਗ˹ಛd͊Ց˹ಛಂ Rolling payments, not yet due ࠢ ʮ̡ Chongqing Daherongji Electromechanical Co., Ltd. 7,864,278.50 ဆਗ˹ಛd͊Ց˹ಛಂ Rolling payments, not yet due ࠇTotal 69,537,255.51 (3) ሪᙧΐͪ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ሪᙧ Aging 30 Jun 2025 31 Dec 2024 (As restated) 1ϋ˸ʫ Within 1 year 2,341,513,005.45 2,269,111,108.17 1Ї2ϋ 1-2 years 446,192,497.09 270,560,938.39 2Ї3ϋ 2-3 years 148,559,146.15 57,918,042.10 3ϋ˸ɪ More than 3 years 140,971,064.57 131,523,572.00 ࠇTotal 3,077,235,713.26 2,729,113,660.66
Page 242
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 241 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 32. Advance from Customers 33. Other payables 33.1 Dividends payable ʞe ධͦൗᙑ ᚃ 32. ཫϗሪಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ږRent Received in Advance 60,218.64 – ࠇTotal 60,218.64 – 33. Չ˼Ꮠ˹ಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) л Dividends payable 159,373,353.67 44,010,810.13 Չ˼Ꮠ˹ಛ Other payables 431,207,686.70 350,885,266.90 ࠇTotal 590,581,040.37 394,896,077.03 33.1 л 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 л Common stock dividends 159,373,353.67 44,010,810.13 ࠇTotal 159,373,353.67 44,010,810.13
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 242 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 33. Other payables (continued) 33.2 Other payables (1) Classification of other payables by the nature (2) Important other payables with an age of over one year ʞe ධͦൗᙑ ᚃ 33. Չ˼Ꮠ˹ಛ ᚃ 33.2 Չ˼Ꮠ˹ಛ (1) ሯʱᗳ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Nature of Payables 30 Jun 2025 31 Dec 2024 (As restated) Ꮠ˹ʈண௪ಛ Purchase of Engineering equipment 72,994,465.80 44,202,405.35 Ꮠ˹ᗫᑌʮ̡ಛධ Payable to related parties 123,580,146.95 91,657,322.61 ږMargin payable 52,386,264.73 49,187,905.57 ʿՉ˼Ꮠ ʈಛ Risk funds and staff payable 26,936,904.83 28,823,039.36 Ꮠ˹˾˹ಛ Payable on behalf of others 11,691,316.51 12,458,604.74 ಛ Staff housing fund payable 8,330,600.30 8,330,599.18 ଣ൬ Maintenance of housing and equipment 3,595,385.83 2,695,295.75 Ꮠ˹ධͦ൬ Project funds payable 1,807,986.14 2,595,719.09 Ꮠ˹༶፩൬ Transportation fee 13,934,969.64 17,860,893.12 ϖϗ Notes pledge collection 903,000.00 28,000.00 ൬ Audit fees payable 1,216,471.66 1,216,471.66 ಛ Relocation staff social security cost 15,985,861.60 14,972,469.41 Չ˼ Others 97,844,312.71 76,856,541.06 ࠇTotal 431,207,686.70 350,885,266.90 (2) ሪᙧ൴ཀ 1Չ˼Ꮠ ˹ಛ 2025ϋ6˜30˚Ϊ ఊЗΤ၈ Company name 30 Jun 2025 Reason for unpaid or carried forward ණྠ༟ପ ʮ̡ Chongqing Electronic & Machinery Holding Group Asset Management Co., Ltd. 44,903,641.60 ͊ഐၑ Unsettled ණྠ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd. 26,533,465.20 ͊ഐၑ Unsettled ɢ೯ཥ பʮ̡ Minqin Guoneng Wind Power Generation Co., Ltd. 14,455,000.00 ͊ഐၑ Unsettled ڭ ʮ̡ Shenzhen Gaoxin Investment Guarantee Co., Ltd. 9,450,000.00 ͊ഐၑ Unsettled ݴي ʮ̡ Beijing Ant God Shengyuan Logistics Co., Ltd. 3,902,461.48 ͊ഐၑ Unsettled ࠇTotal 99,244,568.28
Page 244
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 243 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 34. Contract liabilities (1) The situation of contract liabilities Note: Contract liabilities mainly represent advances received by the Group from sales contracts with customers. The advance payment is collected according to the contract with the customer. The relevant revenue of the contract will be recognized after the Group fulfills its performance obligations. The management of the Group expects that most of the estimated liabilities formed by the end of this period will be transferred to income within one year. (2) Important contract liabilities with an age of over 1 year at the end of this period: ʞe ධͦൗᙑ ᚃ 34. ව (1) ر 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ව Contract liabilities 624,043,926.74 605,086,641.54 ࠇTotal 624,043,926.74 605,086,641.54 ൗj ٙ ཫϗಛf༈ཫ ΥΝϗ՟f ᗫϗɝਗ਼ί͉ණྠᄵ ᆽႩf͉ණྠ၍ଣ ࠋ ɓϋʫᔷϗɝf (2) ሪᙧ൴ཀ1ව 2025ϋ6˜30˚Ϊ ఊЗΤ၈ Company name 30 Jun 2025 Unpaid and untransferred reasons ࠢ ഐ ධͦ Yulong Kashi Electromechanical & Metal Structures Project Department, China Gezhouba Group Co., Ltd. 20,596,460.17 ͊೯༶ҁଭ Shipping incomplete பʮ ̡ Ansteel Heavy Machinery Co., Ltd. 10,854,000.00 ͊೯༶ҁଭ Shipping incomplete ࠢ ʮ̡ᅨψʱʮ̡ Fuzhou Branch of Jiangxi Provincial Water Investment Construction Group Co., Ltd. 6,473,893.80 ͊೯༶ҁଭ Shipping incomplete ʮ̡ Tibet Huaxia Mining Co., Ltd. 6,172,566.38 ͊೯༶ҁଭ Shipping incomplete ᅃ˂ᘒණྠᝒ̻᚛इᘤ ʮ̡ Chengde Tianbao Group Luanping Tietai Mining Co., Ltd. 4,792,745.33 ͊೯༶ҁଭ Shipping incomplete ࠇTotal 48,889,665.68
Page 245
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 244 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 34. Contract liabilities (continued) (3) The book value of the contract liabilities has not changed significantly during the current period 35. Employee benefits payables (1) Classification of employee benefits payables (2) Short-term employee benefits ʞe ධͦൗᙑ ᚃ 34. ව ᚃ (3) ί͉ಂ͊೯͛ ɽᜊਗf 35. Ꮠ˹ᔖʈᑚཇ (1) Ꮠ˹ᔖʈᑚཇʱᗳ 2024ϋ12˜31˚ ͉ಂᄣ̋ ͉ಂಯˇ 2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Increase Decrease 30 Jun 2025 ಂᑚཇ Short-term employee benefits payables 117,940,337.19 483,730,326.11 530,161,359.61 71,509,303.69 ၅лÑ ྌ Post-employment benefits – defined contribution plan 585,545.60 57,873,189.04 57,860,641.92 598,092.72 ᗘৗ၅л Dismission welfare 6,013,599.61 -3,438,678.56 2,574,921.05 – ࠇTotal 124,539,482.40 538,164,836.59 590,596,922.58 72,107,396.41 (2) ಂᑚཇ 2024ϋ12˜31˚ ͉ಂᄣ̋ ͉ಂಯˇ 2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Increase Decrease 30 Jun 2025 (As restated) ൨ձ൨ Salaries, bonuses, allowances and subsidies 90,974,071.61 386,569,409.88 433,758,317.48 43,785,164.01 ᔖʈ၅л൬ Staff welfare 8,353,147.71 16,032,305.51 15,026,429.78 9,359,023.44 ᎈ൬ Social insurance 3,473,308.56 35,413,119.77 35,173,563.32 3,712,865.01 ᎈ൬ Including: Medical insurance 3,451,229.74 31,127,592.29 30,888,543.05 3,690,278.98 ᎈ൬ Employment Injury Insurance 22,078.82 4,285,527.48 4,285,020.27 22,586.03 ږHousing provident fund 200,524.84 26,258,644.66 26,104,771.66 354,397.84 ʈึ൬ձᔖʈ ԃ൬ Trade union and educational funds 14,939,284.47 7,165,472.17 7,806,903.25 14,297,853.39 Չ˼ಂᑚཇ Other short-term benefits – 12,291,374.12 12,291,374.12 – ࠇTotal 117,940,337.19 483,730,326.11 530,161,359.61 71,509,303.69
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 245 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 35. Employee benefits payables (continued) (3) Defined contribution plan The group participates in the social insurance program established by government. Under the program, the group will deposit the relevant expense to the scheme in accordance with the relevant provisions for the local government. In addition to the above deposit fees, the group shall not undertake any further payment obligation. The corresponding expenditure is recorded into the current profit and loss or the cost of related assets when it is incurred. The group’s contributions to the endowment insurance, annuity and unemployment insurance plans, respectively, for the period are as follows: The Group shall pay a fee of RMB57,873,189.04 (January–June 2024: RMB53,509,019.26). As of 30 June 2025, the Group’s fees of RMB598,092.72 (December 31,2024: RMB585,545.60) were not paid at the expiration of this reporting period, and the fees have been paid after the reporting period. ʞe ධͦൗᙑ ᚃ 35. Ꮠ˹ᔖʈᑚཇ ᚃ (3) ྌ ዚணͭ ྌd͉ණ Σ༈ ᖮπ൬͜ ዄආɓӉ˕˹່ ɝಂ ᗫ༟ପϓ͉f ᎈeϋ ྌᖮπ൬͜νɨj 2024ϋ12˜31˚ ͉ಂᄣ̋ ͉ಂಯˇ 2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Increase Decrease 30 Jun 2025 ᎈ Basic endowment insurance 561,871.33 49,521,888.24 49,515,901.74 567,857.83 ᎈ൬ Unemployment insurance 23,674.27 1,592,688.67 1,592,515.43 23,847.51 ᖮ൬ Corporate annuity contributions – 6,758,612.13 6,752,224.75 6,387.38 ࠇTotal 585,545.60 57,873,189.04 57,860,641.92 598,092.72 π ྌᖮπ൬͜ɛ͏࿆ 57,873,189.04 ʩ 2024ϋ 1-6˜jɛ ͏ ࿆ 53,509,019.262025ϋ6˜30 Ϟɛ͏࿆598,092.72 ʩ2024 ϋ12 ˜31 ˚jɛ ͏ ࿆ 585,545.60݊ dϞᗫ ˕˹f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 246 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 35. Employee benefits payables (continued) (3) Defined contribution plan (continued) During the two periods ending on December 31, 2024 and June 30, 2025, the Group has no forfeited contributions (the employee represented by the Employer leaving the Plan) available to the Group to reduce the existing contribution level. 36. Taxes and levies payables 37. Non-current liabilities due within one year ʞe ධͦൗᙑ ᚃ 35. Ꮠ˹ᔖʈᑚཇ ᚃ (3) ྌ ᚃ ࿚Ї 2024ϋ12˜31˚ʿ2025ϋ6 ˜30֛ޢ ӚϗԶಛ ྇͟˴ ࠇ ̙Զ͉ණྠ˸ಯЭତϞ Զಛ˥̻f 36. Ꮠʹ൬ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 Enterprise income tax 10,036,657.19 24,375,172.24 Value-added tax 87,712,727.67 76,353,257.30 ணၪᚐ City maintenance and construction tax 1,935,745.37 2,282,358.38 ɺήԴ͜ City land use tax 229,928.55 229,906.39 ପ Real estate tax 456,747.32 455,959.94 Individual Income Tax 1,075,868.12 3,408,874.08 Չ˼ Others 3,338,262.45 3,671,394.23 ࠇTotal 104,785,936.67 110,776,922.56 37. ව 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ಛ Long-term Loans due within one year 924,410,000.00 703,306,750.00 ව Lease liabilities due within one year 19,329,390.18 20,049,676.46 ව Other long-term liabilities due within one year 545,786.92 233,953.63 ࠇTotal 944,285,177.10 723,590,380.09
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 247 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 38. Other current liabilities 39. Long-term loans Above loans need be repaid in following period: ʞe ධͦൗᙑ ᚃ 38. ව 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 (As restated) ᔷቖධ Pending VAT 81,690,015.68 49,959,782.98 ࠇTotal 81,690,015.68 49,959,782.98 39. ಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ಛᗳй Items 30 Jun 2025 31 Dec 2024 ಛ Guaranteed loans 23,000,000.00 34,000,000.00 ಛ Unsecured loans 597,500,000.00 1,046,600,000.00 ࠇTotal principal 620,500,000.00 1,080,600,000.00 ࢹAdd: Accrued interest 371,316.66 659,202.78 ࠇTotal 620,871,316.66 1,081,259,202.78 ˸ɨಂගᎵᒔj 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ɓϋ˸ʫ Within 1 year 924,410,000.00 703,306,750.00 ൴ཀɓϋd Шʔ൴ཀՇϋ 1 year after balance sheet date, but no more than 2 years 554,100,000.00 1,059,900,000.00 ൴ཀՇϋd Шʔ൴ཀʞϋ 2 years after balance sheet date, but no more than 5 years 61,800,000.00 13,800,000.00 ൴ཀʞϋ 5 years after balance sheet date 4,600,000.00 6,900,000.00 ͪ ಛ Less: Loans due within one year under current liabilities 924,410,000.00 703,306,750.00 ಛଋᕘ Net amount of long-term loans 620,500,000.00 1,080,600,000.00
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 248 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 39. Long-term loans (continued) Note 1: The interest range of the group‘s long-term borrowing is 1.20% to 2.40% at the end of this period (from 1.20% to 4.35% at the beginning of the period). Note 2: For details of the Group’s mortgage and pledge loans at the end of this period, please refer to note V.27. 40. Lease liabilities 41. Long-term payables ʞe ධͦൗᙑ ᚃ 39. ಛ ᚃ ൗ1j މ 1.20%-2.40%މڋ1.20%Ї4.35%f ൗ2j ڝ ൗʞe27f 40. ව 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 يBuildings 165,762,077.90 172,484,356.81 ዚኜண௪ Mechanical equipment 21,840,093.53 13,479,706.39 ఙή Site 7,888,030.93 4,538,362.12 ࠇTotal 195,490,202.36 190,502,425.32 ˸ ɨಂගᎵᒔj Above lease liabilities need to be paid in following period: ɓϋʫ Within 1 year 43,000,738.72 20,049,676.46 ൴ཀɓϋd Шʔ൴ཀՇϋ 1 year after balance sheet date, but no more than 2 years 21,316,824.61 1,377,921.14 ൴ཀՇϋd Шʔ൴ཀʞϋ 2 years after balance sheet date, but no more than 5 years 86,288,069.73 87,367,863.65 ൴ཀʞϋ 5 years after balance sheet date 87,885,308.02 101,756,640.53 ࠇTotal 238,490,941.08 210,552,101.78 ͪɓϋʫ වಛධ Less: Amounts shown under current liabilities for lease liabilities due within one year 43,000,738.72 20,049,676.46 ව Lease liabilities shown under non-current liabilities 195,490,202.36 190,502,425.32 41. ಂᏐ˹ಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ਖ਼ධᏐ˹ಛ Special payables 3,112,936.00 3,893,230.00 ࠇTotal 3,112,936.00 3,893,230.00
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 249 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 41. Long-term payables (continued) 41.1 Special payables Note: According to the Notice on Printing and Distributing Implementation Rules of Fund Subsidy for Indemnity Rental Housing Projects issued by Chongqing Housing and Urban-Rural Development Commission, the Group will allocate RMB3,112,936.00 for national projects at the end of the year, which will be used to support the construction, operation and management of indemnificatory rental housing. 42. Long-term employee benefits payables (1) Classification of long-term employee benefits payables Note: Retired employee benefits payable and dismissal benefits payable within one year are listed in the employee compensation payable. ʞe ධͦൗᙑ ᚃ 41. ಂᏐ˹ಛ ᚃ 41.1 ਖ਼ධᏐ˹ಛ 2024ϋ12˜31˚ ͉ಂᄣ̋ ͉ಂಯˇ 2025ϋ6˜30˚Ϊ ධͦ Items 31 Dec 2024 Increases Decreases 30 Jun 2025 Reason ධͦᅡಛ National project funding 3,893,230.00 – 780,294.00 3,112,936.00 ༉Ԉൗᙑ Note ࠇTotal 3,893,230.00 – 780,294.00 3,112,936.00 ൗj ࡰ ღ ධ ͦᅡಛɛ͏࿆ 3,112,936.00ʩdਗ਼ ணʿ ༶ᐄ၍ଣf 42. ಂᏐ˹ᔖʈᑚཇ (1) ಂᏐ˹ᔖʈᑚཇʱᗳ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ஷ ၅л Benefits payable to retirees and new through trains 5,559,526.87 5,789,000.00 ʱ Less: Amounts paid within 1 year – 533,000.00 ࠇTotal 5,559,526.87 5,256,000.00 ൗj ࡰ ၅лձᏐ˹ᗘৗ၅лίᏐ˹ᔖʈ ᑚཇΐͪf
Page 251
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 250 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 43. Provisions 44. Deferred revenue (1) Classification of deferred revenue ʞe ධͦൗᙑ ᚃ 43. ව 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ࠽Off-balance sheet asset impairment 100,998.09 1,092,173.97 ሦᎵಛ Compensation – 1,909,618.12 ཫɧ̍൬͜ Accrued expenses of three guarantees 65,972,498.77 70,978,402.58 ࠇTotal 66,073,496.86 73,980,194.67 44. ϗू (1) ϗूʱᗳ ͉ಂᄣ̋ ͉ಂಯˇ Increase this period Decrease this period 2024ϋ12˜31ᕘ Չ˼ಯˇ 2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Government grant received Other increases Amortization during this period Other decreases 30 Jun 2025 пÑ ᅡಛ Government subsidies- Government Grant 140,389,070.74 10,974,022.68 – 15,351,920.92 24,874,724.13 111,136,448.37 пÑ ยቋп Government subsidies- Relocation 40,906,980.77 – – 5,577,141.12 – 35,329,839.65 ɺήஈໄϗू Proceeds of land disposal 5,710,114.59 – – 58,700.00 – 5,651,414.59 ࠇTotal 187,006,166.10 10,974,022.68 – 20,987,762.04 24,874,724.13 152,117,702.61
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 251 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 44. Deferred revenue (continued) (2) Government grants projects ʞe ධͦൗᙑ ᚃ 44. ϗू ᚃ (2) пධͦ 2024ϋ12˜31˚ ᕘ Չ˼ಯˇ 2025ϋ6˜30˚ ቱᕘ ᗫŊ ᗫ пʱᗳ Government subsidies projects 31 Dec 2024 Newly added subsidy amount Recorded in non-operating income Recorded in other income Amount offset against costs and expenses Other decreases 30 Jun 2025 Asset-related/ earnings-related ږPlant construction subsidy 33,088,492.72 – – 738,899.52 – – 32,349,593.20ᗫ Related to assets ௴อҦஔᆤ Innovation Technology Award 3,342,801.48 – – 322,097.28 – – 3,020,704.20ᗫ Related to assets Ҧҷධͦп Subsidies for technological transformation projects 3,099,793.95 – – 854,250.01 – – 2,245,543.94ᗫ Related to earnings ஷ͜ยቋᎵ Universal Relocation Compensation 40,038,147.97 – – 5,507,615.52 – – 34,530,532.45ᗫ Related to assets ږProject grant funds 63,738,601.54 9,244,022.68 – 7,930,493.06 – 19,874,724.13 45,177,407.03ᗫ Related to assets Ꮸʕːධͦ Government Support Testing Center Project 4,830,000.00 – – – – – 4,830,000.00ᗫ Related to assets ౽ঐႡிධͦ Smart Manufacturing Project 1,139,281.81 – – 555,143.04 – – 584,138.77ᗫ Related to assets ˥ɢ೯ཥͪᇍਿή ணධͦ Hydropower demonstration base construction project 9,374,425.23 – – 242,700.00 – – 9,131,725.23ᗫ Related to assets п Other government grants 22,644,506.81 1,730,000.00 – 4,777,863.61 – 5,000,000.00 14,596,643.20ᗫ Related to earnings ࠇTotal 181,296,051.51 10,974,022.68 – 20,929,062.04 – 24,874,724.13 146,466,288.02
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 252 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 45. Share capital 46. Capital Reserve ʞe ධͦൗᙑ ᚃ 45. ͉ ͉ಂᜊਗᄣಯ +e- Changes in current period (+ or –) 2024ϋ12˜31ࠇ2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Issue new shares Share donation Reserved funds converted into shares Others Subtotal 30 Jun 2025 ΅Ñ ٰܵ Restricted shares– state- owned legal person shareholdings ᅅዚཥණྠ Including: CQMEHG 1,924,225,189.00 – – – – – 1,924,225,189.00 ༟ପ CITIC Company 195,962,467.00 – – – – – 195,962,467.00 ಽబ༟͉ Yufu Company 232,132,514.00 – – – – – 232,132,514.00 ʈණྠ CCEG 232,132,514.00 – – – – – 232,132,514.00 ࠇTotal restricted shares 2,584,452,684.00 – – – – – 2,584,452,684.00 ΅ Non-restricted shares Չʕjྤ̮ɪ̹ HٰIncluding: Overseas listing H shares 1,100,187,470.00 – – – – – 1,100,187,470.00 ࠇTotal non-restricted shares 1,100,187,470.00 – – – – – 1,100,187,470.00 ΅ᐼᕘ Total 3,684,640,154.00 – – – – – 3,684,640,154.00 46. ༟͉ʮጐ 2024ϋ12˜31˚ ͉ಂᄣ̋ ͉ಂಯˇ 2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Increase in current period Decrease in current period 30 Jun 2025 (As restated) ༟͉ʮጐᔷɝ The capital reserve of the original system is transferred -15,166,711.00 – – -15,166,711.00 Չ˼༟͉ʮጐ Others capital reserve 114,374,493.69 21,426,886.53 49,156,853.81 86,644,526.41 ࠇTotal 99,207,782.69 21,426,886.53 49,156,853.81 71,477,815.41
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 253 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 46. Capital Reserve (continued) Note 1: Chongqing Pump Works Co., Ltd. received government capital grants for R&D, resulting in an increase of RMB21,335,200.00 in other capital surplus reserve. Note 2: Pursuant to the Capital Increase Agreement of Chongqing Pigeon Brand Electric Wire & Cable Co., Ltd., the registered capital of Pigeon Brand will be increased from RMB328 million to RMB487.030303 million. The newly added registered capital of RMB159.030303 million will be subscribed by Chongqing Machinery & Electronics Co., Ltd. in the following manner: (1) The pricing of this capital increase is based on the assessed value of RMB825 million confirmed in the “Asset Appraisal Report of Chongqing Pigeon Brand Electric Wire & Cable Co., Ltd.” issued by Chongqing Tianjian Assets Appraisal & Real Estate Valuation Co., Ltd. (with the appraisal benchmark date of October 31, 2024), and the final price per share is determined as RMB2.515244. (2) Chongqing Machinery & Electronics Co., Ltd. will make the capital increase in cash, contributing RMB400 million at the price of RMB2.515244 per share to subscribe for the above-mentioned newly added registered capital of Pigeon Brand. After the completion of this capital increase, the registered capital of Pigeon Brand will increase by RMB159.030303 million, from RMB328 million to RMB487.030303 million, with a simultaneous increase in capital reserve of RMB240.969697 million. Among them, the first installment of the capital increase of RMB200 million was actually paid in March 2025, which resulted in an increase in paid-in capital of RMB79.5151515 million and an increase in capital reserve of RMB120.4848485 million for Pigeon Brand; the second installment of RMB200 million will be fully paid by the end of March 2026. Dividend distribution will be implemented in accordance with the proportion of paid-in capital contributions of each shareholder of Pigeon Brand. ʞe ධͦൗᙑ ᚃ 46. ༟͉ʮጐ ᚃ ൗ1j ִ݁ ֛ ɝ༟͉ʮጐ d Չ˼༟͉ʮጐᄣ̋ 21,335,200.00ʩf ൗ2j ʮ̡ d ᓀൗ̅༟͉ ͟ɛ͏࿆ 32,800.00ຬʩᄣ̋Їɛ͏ ࿆48,703.0303ຬʩ d อᄣൗ̅༟͉ 15,903.0303ࠢ ˸ɨ˙όႩᖮ j (1)֛ ήପПᄆ ᅅᓀཥᇞཥ ʮ̡༟ପ൙Пజѓ ൙Пਿ˚ 2024ϋ10˜31މ࠽ 8.25މࣸ 2.515244ʩf(2)ʮ ٰ2.515244 ʩ̈༟4ᄂʩႩᖮᓀʮ̡อᄣൗ̅༟ ͉dᄣ ༟4d ᓀʮ̡ਗ਼ᄣ̋ൗ ̅༟͉ 15,903.0303ຬʩ d ൗ̅༟͉͟ 32,800.00ຬʩᄣЇ 48,703.0303ຬ ʩd ᄣ̋༟͉ʮጐ 24,096.9697ຬ ʩfՉ ʕ 2025ϋ3˜ྼყՑЗୋɓഅᄣ༟ಛ 2ᄂ ʩdᓀʮ̡ᄣ̋ྼϗ༟͉ 7951.51515 ຬʩ d ᄣ̋༟͉ʮጐ 12,048.48485ຬ ʩf2026ϋ3ҁϓୋɚഅᄣ༟ಛ 2 ٰ ̈༟ˢԷf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 254 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 46. Capital Reserve (continued) Note 2: (continued) Chongqing Machinery & Electronics Co., Ltd. actually injected RMB200,000,000 into Chongqing Pigeon Brand Electric Wire & Cable Co., Ltd. on March 5, 2025. In the consolidated financial statements, according to the relevant provisions of the Accounting Standards for Business Enterprises, the difference between the newly acquired long-term equity investment from the parent company due to the capital increase and the share of the subsidiary’s net assets that should be enjoyed, calculated based on the newly increased shareholding ratio and continuously measured from the acquisition date (or combination date), resulted in a decrease of RMB13,535,653.81 in the Group’s other capital surplus. Note 3: The first interim meeting of the Sixth Board of Directors of Chongqing Machinery & Electronics Co., Ltd. in 2025 reviewed and approved the matter, which was then reported to Chongqing Machinery & Electronics Holding (Group) Co., Ltd. for approval. It was agreed that Chongqing Machine Tool (Group) Co., Ltd. would acquire 100% equity of Chongqing Panlian Transmission Technology Co., Ltd. held by Chongqing Machinery & Electronics Holding Group Asset Management Co., Ltd. through a non-public agreement, with the consideration determined based on the appraisal value of RMB35,621,200 as stated in the appraisal report issued by an intermediary institution entrusted by Chongqing Machinery & Electronics Holding Group Asset Management Co., Ltd. (the final amount shall be subject to the record-filed value of the Group). The transaction was completed and delivered in April 2025. In the consolidated financial statements, this constitutes a business combination under common control. This combination should be considered as having been controlled by Chongqing Machinery & Electronics Co., Ltd. since its establishment and thus included in the consolidated scope. As a result, other capital surplus as of the beginning of 2024 increased by RMB35,621,200.00, and other capital surplus for the current period as of the combination date in 2025 decreased by RMB35,621,200.00. ʞe ධͦൗᙑ ᚃ 46. ༟͉ʮጐ ᚃ ൗ2j ᚃ ʮ̡ 2025ϋ3˜5˚Σ ༟ 2 ʕd͎ʮ̡Ϊᄣ༟อ ٰܵ Υ ଋ༟ପ΅ᕘʘග d ಯˇ͉ණྠՉ˼༟͉ʮጐ 13,535,653.81 ʩf ൗ3j ԫึ 2025ึᙄᄲᙄஷཀԨజ ࠠ ᅅዚ ʮ̡։ϖʕ ࠽ 3,562.12 ٰ ᅅᇂᑌ ʮ̡ 100% 2025ϋ4ʕҖ ϓΝɓછՓɨΆุΥԻd༈ΥԻԫධᏐ ʮ̡ છՓॶɝΥԻᇍఖdᄣ̋ 2024Չ˼ ༟͉ʮጐ 35,621,200.00ʩdಯˇ2025ϋ ΥԻ˚ಂՉ˼༟͉ʮጐ 35,621,200.00 ʩf
Page 256
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 255 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 47. Other Comprehensive Income. ʞe ධͦൗᙑ ᚃ 47. Չ˼ၝΥϗू ͉ಂ೯͛ᕘ Amount of this period 2024ϋ12˜31˚ ೯͛ᕘ ɝ Չ˼ၝΥϗूᔷ ͎ʮ̡ ؇ٰ2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Amount incurred before income tax for the current period Minus: Other comprehensive income is included in the previous period and converted into profit or loss for the current period Minus: Income tax expense After tax attribution to the parent company After tax attribution to minority shareholders 30 Jun 2025 Չ˼ ၝΥϗू 1. Other comprehensive income that cannot be reclassified into profit or loss in the future 87,782,561.37 13,280,355.00 – 3,320,088.75 9,960,266.25 – 97,742,827.62 ࠇ වձଋ༟ପ ᜊਗ Including: Recalculation of changes in net liabilities and net assets of the set benefit plan 717,744.32 – – – – – 717,744.32 Չ˼ᛆूʈՈҳ༟ʮʪᄆ ᜊਗ Changes in fair value of other equity instrument investments 87,064,817.05 13,280,355.00 – 3,320,088.75 9,960,266.25 – 97,025,083.30 Չ˼ၝ Υϗू 2. Other comprehensive income that will be reclassified into profit and loss in the future -9,693,083.95 -2,767,832.52 – 1,583,080.00 -5,977,963.84 1,627,051.32 -15,671,047.79 ɨίҳ༟ఊ ʱᗳආ Չ˼ၝΥϗ ΅ᕘ Including: The share of other comprehensive income under the equity method that will be reclassified into profit or loss after the investee unit 616,639.00 – – – – – 616,639.00 ɝՉ˼ၝ ᕘ Amount of financial assets reclassified to other comprehensive income – -618,270.23 – -154,567.56 -463,702.67 – -463,702.67 ᜊਗ Fair value changes of other debt investments – 65,740.29 – 16,435.07 34,513.65 14,791.57 34,513.65 ᕘ Foreign currency financial statements translate the difference -12,804,132.12 -13,690,052.58 – – -13,690,052.58 – -26,494,184.70 ʱ The effective portion of the cash flow hedge 2,494,409.17 11,474,750.00 – 1,721,212.49 8,141,277.76 1,612,259.75 10,635,686.93 ࠇTotal other comprehensive income 78,089,477.42 10,512,522.48 – 4,903,168.75 3,982,302.41 1,627,051.32 82,071,779.83
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 256 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 48. Surplus Reserves 49. Special Reserve 50. Undistributed profit ʞe ධͦൗᙑ ᚃ 48. ቱʮጐ 2024ϋ12˜31˚ ͉ಂᄣ̋ ͉ಂಯˇ 2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Increase in this period Decrease in this period 30 Jun 2025 ቱʮጐ Statutory surplus reserves 515,265,278.90 37,044,984.91 – 552,310,263.81 ࠇTotal 515,265,278.90 37,044,984.91 – 552,310,263.81 49. ਖ਼ධᎷ௪ 2024ϋ12˜31˚ ͉ಂᄣ̋ ͉ಂಯˇ 2025ϋ6˜30˚ ධͦ Items 31 Dec 2024 Increase in this period Decrease in this period 30 Jun 2025 (As restated) τΌ͛ପਖ਼ධᎷ௪ Work safety special reserve 5,635,596.35 8,664,520.43 6,812,717.70 7,487,399.08 ږR&D reserve – 36,883,065.93 31,742,003.81 5,141,062.12 ࠇTotal 5,635,596.35 45,547,586.36 38,554,721.51 12,628,461.20 50. ͊ʱৣлᆗ 2025ϋ1-6˜ 2024ܓ ධͦ Items Jan-Jun 2025 2024 (As restated) 2024ϋ12˜31˚͊ʱৣлᆗ Undistributed profit as of 31 December 2024 (before adjustment) 3,719,023,999.29 3,396,460,951.56 ഄᜊһሜˢ༰ ڌ Add: Accounting policy changes and adjustments – – 2025ϋ1˜1˚͊ʱৣлᆗ Undistributed profit as of 1 January 2025 (adjusted) 3,719,023,999.29 3,396,460,951.56 ٫ ଋлᆗ Add: Net profit attributable to owners of the parent company for the period 415,972,007.93 431,837,743.23 ቱʮጐ Less: Withdrawal of statutory surplus reserve 37,044,984.91 35,413,321.29 ږWithdrawal of employee incentive and welfare funds – 168,571.13 л Dividends payable on common stock 128,962,405.39 73,692,803.08 2025ϋ6˜30˚͊ʱৣлᆗ Undistributed profit as of 30 June 2025 3,968,988,616.92 3,719,023,999.29
Page 258
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 257 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 50. Undistributed profit (continued) Note 1: According to the annual general meeting of the Group for the year 2024 held on 12 June 2025, the meeting considered and approved the Group’s profit distribution plan for the year 2024, i.e., RMB0.035 (inclusive of tax) per share, which based on the 3,684,640,154 shares in issue, resulted in a total amount of RMB128,962,405.39 required to be distributed as dividend. The Group has paid the aforesaid dividends in July 2025 to each of the shareholders. Note 2: According to the Measures for the Administration of Reserves and Provisions of Financial Enterprises issued by the Ministry of Finance (Finance [2012] No.20), Chongqing Mechanical and Electrical Holding Group Finance Co., Ltd., a subsidiary of the Group, sets up a general risk preparation on the basis of extracting the asset impairment provision to make up for the unidentified potential losses related to the risky assets. The general risk provision, as a profit distribution treatment, is a component part of the owner’s equity, and in principle should not be less than 1.5% of the balance of the risky assets at the end of the year. At the same time, the measure stipulates that the proportion of the general reserve balance of financial enterprises in the year- end balance at the end of risky assets, which is difficult to reach 1.5% at one time, can be in place by year, in principle shall not exceed 5 years. The year-end balance of general risk preparation withdrawal of Chongqing Electromechanical Holding Group Finance Co., LTD. is 1.5% (2024:1.5%). At the end of the period, the undistributed profits of the Group included the subsidiary Chongqing Machinery & Electronics Holding (Group) Co., Ltd. with general risk provision of RMB49,333,995.67 (Initial amount, RMB49,333,995.67). ʞe ධͦൗᙑ ᚃ 50. ͊ʱৣлᆗ ᚃ ൗ1j ኽ͉ණྠ 2025ϋ6˜12˚̜ක2024ϋ ͉ණ ྠ2024೯ ɛ͏࿆ 0.035ٰ ΅3,684,640,154ٰ лɛ͏࿆ 128,962,405.39ʩ f ͉ණྠʊ 2025ϋ7лf ൗ2j ၍ଣ 㖾2012㖿20,͉ණྠɿʮ ʮ̡ί ࠬ ᎈ༟ ᎈ ٙ ᎈ༟ପϋ ٙ1.5%ᅅዚཥછ ᎈ௪՟ މ1.5%2024ϋj1.5%f ಂ ͋ ٰ ᎈ ɛ͏࿆ 49,333,995.67ʩ2024 ϋ12˜31ɛ͏࿆49,333,995.67 ʩ f
Page 259
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 258 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 51. Operating Revenue & Operating Cost (1) The situation of operating income and operating costs Note: Interest income and fee and commission income are derived from the business of the financial company; Interest expense and handling fees and commission expenses are derived from the costs associated with the finance company. ʞe ධͦൗᙑ ᚃ 51. ᐄุϗɝeᐄุϓ͉ (1) ر 2025ϋ1-6˜ 2024ϋ1-6˜ Jan-Jun 2025 Jan-Jun 2024 (As restated) ϗɝ ϓ͉ ϗɝ ϓ͉ ධͦ Items Revenue Cost Revenue Cost ˴ᐄุਕ Main business 4,554,612,700.67 3,807,338,010.95 4,173,852,614.55 3,508,315,483.57 Չ˼ุਕ Other business 75,265,364.66 44,488,712.59 66,470,795.08 30,350,043.41 ϗɝ Interest income 28,180,430.93 6,397,112.04 25,563,828.14 2,804,691.84 ϗɝ Transaction fees and commission income 18,045.32 101,920.42 3,702.59 73,441.71 ࠇTotal 4,658,076,541.58 3,858,325,756.00 4,265,890,940.36 3,541,543,660.53 ൗj ϗɝѩ ˕̈ ৌ ᗫϓ͉f
Page 260
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 259 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 51. Operating Revenue & Operating Cost (continued) (2) Income from contracts ʞe ධͦൗᙑ ᚃ 51. ᐄุϗɝeᐄุϓ͉ ᚃ (2) ر ৷၌౽ঐༀ௪ุਕ ᆎঐ๕ༀ௪ุਕ High-end intelligent equipment business Clean energy equipment business ᐄุϗɝ ᐄุϓ͉ ᐄุϗɝ ᐄุϓ͉ ΥΝʱᗳ Classification of contract Revenue Cost Revenue Cost ᐄήਜʱᗳ Classified by region 880,896,050.15 723,510,023.50 3,738,135,999.77 3,124,359,295.26 Չʕjʕɽ Including: Mainland of China 791,859,205.25 666,753,568.61 3,614,933,355.88 3,008,105,992.13 Չ˼ήਜ Others 89,036,844.90 56,756,454.89 123,202,643.89 116,253,303.13 ۨTypes of contracts 880,896,050.15 723,510,023.50 3,738,135,999.77 3,124,359,295.26 Չʕjண௪ቖਯΥΝ Including: Equipment sales contract 402,574,286.82 307,852,778.01 2,477,715,469.42 2,038,607,967.51 ਕΥΝ Service contract 214,892,531.77 192,230,706.62 66,496,892.11 55,812,654.77 ቖਯΥΝ Materials sales contract 263,429,231.56 223,426,538.87 1,193,923,638.24 1,029,938,672.98 ගʱᗳ Classified by time of revenue recognition 880,896,050.15 723,510,023.50 3,738,135,999.77 3,124,359,295.26 ᓃ ᔷᜫ Including: Recognizes revenue at a point in time 870,041,479.49 723,510,023.50 3,729,406,277.09 3,119,138,786.83 ʫ Զ Provide during a certain period of time 10,854,570.66 – 8,729,722.68 5,220,508.43 ቖਯಬ༸ʱᗳ Classified by sales channel 880,896,050.15 723,510,023.50 3,738,135,999.77 3,124,359,295.26 ቖ Including: Direct sales 845,738,343.46 694,712,478.45 3,718,594,151.24 3,109,691,522.24 ቖ Distribution 35,157,706.69 28,797,545.05 19,493,303.95 14,638,482.22 ၣഖቖਯ Internet sales – – 48,544.58 29,290.80
Page 261
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 260 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 51. Operating Revenue & Operating Cost (continued) (2) Income from contracts (continued) ʞe ධͦൗᙑ ᚃ 51. ᐄุϗɝeᐄุϓ͉ ᚃ (2) ᚃ ࠇ Industrial service business Headquarters Total ᐄุϗɝ ᐄุϓ͉ ᐄุϗɝ ᐄุϓ͉ ᐄุϗɝ ᐄุϓ͉ ΥΝʱᗳ Classification of contract Revenue Cost Revenue Cost Revenue Cost ᐄήਜʱᗳ Classified by region 31,910,363.02 9,882,907.83 7,134,128.64 573,529.41 4,658,076,541.58 3,858,325,756.00 Չʕjʕɽ Including: Mainland of China 31,910,363.02 9,882,907.83 7,134,128.64 573,529.41 4,445,837,052.79 3,685,315,997.98 Չ˼ήਜ Others – – – – 212,239,488.79 173,009,758.02 ۨTypes of contracts 31,910,363.02 9,882,907.83 7,134,128.64 573,529.41 4,658,076,541.58 3,858,325,756.00 Չʕjண௪ቖਯΥΝ Including: Equipment sales contract – – – – 2,880,289,756.24 2,346,460,745.52 ਕΥΝ Service contract 31,910,363.02 9,882,907.83 7,134,128.64 573,529.41 320,433,915.54 258,499,798.63 ቖਯΥΝ Materials sales contract – – – – 1,457,352,869.80 1,253,365,211.85 ගʱᗳ Classified by time of revenue recognition 31,910,363.02 9,882,907.83 7,134,128.64 573,529.41 4,658,076,541.58 3,858,325,756.00 ᓃ ᔷᜫ Including: Recognizes revenue at a point in time – – 3,372,785.22 573,529.41 4,602,820,541.80 3,843,222,339.74 ʫ Զ Recognizes revenue over time 31,910,363.02 9,882,907.83 3,761,343.42 – 55,255,999.78 15,103,416.26 ቖਯಬ༸ʱᗳ Classified by sales channel 31,910,363.02 9,882,907.83 7,134,128.64 573,529.41 4,658,076,541.58 3,858,325,756.00 ቖ Including: Direct sales 31,910,363.02 9,882,907.83 7,134,128.64 573,529.41 4,603,376,986.36 3,814,860,437.93 ቖ Distribution – – – – 54,651,010.64 43,436,027.27 ၣഖቖਯ Internet sales – – – – 48,544.58 29,290.80
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 261 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 51. Operating Revenue & Operating Cost (continued) (3) Information related to performance obligations The Group’s transactions involving performance obligations are in the form of the sale of goods, services and materials, and the Group has fulfilled its contractual obligations to recognize revenue when the customer acquires control of the relevant goods or services. During this reporting period, the Group determines the performance obligations of the financial company’s business and some machine tool business contracts to be fulfilled within a certain period of time in accordance with the standards. Revenue is recognized based on the performance progress of the project, that is, based on the performance progress of the project, the Group recognizes the actual contract costs incurred plus the contract gross profit as project business contract revenue. The Group’s sales of goods and equipment performance time is 3-4 days to about 2 years, the relevant performance terms are according to the type of customer, first receive part of the feeding payment, after the completion of the product, in advance receipt of part of the payment after delivery. Typically, control of the product has been transferred after it has been delivered to the carrier. ʞe ධͦൗᙑ ᚃ 51. ᐄุϗɝeᐄุϓ͉ ᚃ (3) ࢹڦٙ މۨ ቖਯd ່ ਕ dᆽႩϗɝf ͉జѓಂʫd͉ණྠ࿁ৌਕʮุ̡ ۆ ٙ ආ ආ ΥΝϓ͉ ධุͦਕΥ Νϗɝf ග ί3-4˂Ї2ૢಛ dཫϗʱҳ dίཫϗʱ ו છՓᛆʊᔷf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 262 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 51. Operating Revenue & Operating Cost (continued) (4) Information about the transaction price allocated to the remaining performance obligations The amount of revenue corresponding to the Group’s performance obligations that have been signed but have not yet been performed or have not been fulfilled in the current period is RMB4,883,258,482.22 (of which the amount of income corresponding to the performance obligations that have been signed but not yet fulfilled is RMB4,056,954,861.23, and the corresponding income amount of the performance obligations that have been signed but not yet performed is RMB826,303,620.99). Among them, RMB3,737,216,224.25 is expected to be recognized as revenue in 2025; RMB1,146,042,257.97is expected to be recognized as revenue in 2026. (5) Information related to variable consideration in the contract None. (6) Significant contract changes or significant transaction price adjustments None. (7) Revenue and costs from trial operation sales that belong to daily activities None. ʞe ධͦൗᙑ ᚃ 51. ᐄุϗɝeᐄุϓ͉ ᚃ (4) ࣸ ࢹڦٙ ͊ ່ ɛ͏࿆ 4,883,258,482.22ʩ Չʕʊᖦ ߒ ɛ͏࿆ 4,056,954,861.23֠ ᕘ ɛ͏࿆826,303,620.99ʩ fՉʕ 3,737,216,224.252025 ᆽႩϗɝ d 1,146,042,257.97 2026ᆽႩϗɝf (5) ࢹڦ ೌf (6) ሜ ೌf (7) ϗɝ ձϓ͉ ೌf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 263 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 52. Taxes and surcharges 53. Selling and Distribution Expenses ʞe ධͦൗᙑ ᚃ 52. ̋ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 (As restated) ண Urban maintenance and construction tax 5,077,724.24 4,675,511.29 ̋ Education surcharge 3,820,562.00 3,738,153.45 ପ Property tax 10,232,334.01 10,453,462.74 ɺήԴ͜ Land use tax 6,488,888.03 7,010,530.90 Stamp duty 3,978,685.14 5,763,496.38 Land-value increment tax 403,874.12 1,535,098.91 Չ˼ Others 242,649.75 248,394.15 ࠇTotal 30,244,717.29 33,424,647.82 53. ቖਯ൬͜ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 (As restated) ᔖʈᑚཇ Employee Compensation 47,284,544.11 45,712,084.50 ൬ Travel expenses 8,642,924.74 13,046,830.14 ਕ൬ Sales service fee 16,996,947.19 7,704,954.81 ൬ Business entertainment expenses 10,324,113.65 7,957,291.04 ෂ൬ Advertising and publicity expenses 4,634,196.65 4,330,666.47 ፬ʮ൬ Office expenses 1,198,950.71 1,891,639.93 ᎈ൬ Property insurance premium 4,378,574.94 3,851,787.85 ௶ਕ൬ Labor costs 856,798.60 963,561.80 Չ˼ Others 13,665,374.86 15,021,871.64 ࠇTotal 107,982,425.45 100,480,688.18
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 264 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 54. Administrative expenses 55. Research and Development Expenses ʞe ධͦൗᙑ ᚃ 54. ၍ଣ൬͜ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 (As restated) ᔖʈᑚཇ Employee compensation 164,165,098.31 186,621,675.25 ұᔚ൬ Depreciation expenses 35,661,356.30 33,314,076.61 ௶ਕ൬ Labor costs 15,372,735.88 10,972,746.69 ଣ൬ Repair costs 14,539,101.76 11,337,099.87 ፔ༔൬ Consulting fees 11,765,142.67 7,795,136.97 ਕ൬͜ – Audit service fees 1,287,365.96 2,839,375.18 ਕ൬͜ – Tax service fees 127,332.37 334,214.03 ਕ൬͜ – Other service fees 10,350,444.34 4,621,547.76 ೌҖ༟ପᛅቖ Amortization of intangible assets 5,605,197.08 7,514,190.27 ൬ Business entertainment expenses 2,469,759.11 2,606,436.93 ፬ʮ൬͜ Office expenses 10,663,797.29 12,688,571.95 ॡ༣൬ Rental fees 4,305,431.02 2,471,245.44 ᎈ൬ Insurance expenses 850,206.17 844,247.27 ุ၍ଣ൬ Property management fee 3,277,035.58 5,752,304.44 ༶፩൬ Transportation expenses 1,519,740.65 2,105,271.64 ൬ Travel expenses 3,044,660.52 3,165,207.59 Չ˼ Other 32,221,989.37 35,097,651.83 ࠇTotal 305,461,251.71 322,285,862.75 55. ೯൬͜ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 (As restated) ൬ Material costs 115,355,194.79 78,097,668.12 ɛʈϓ͉ Labor cost 85,334,213.73 82,395,162.09 ༊Ⴁ൬ Prototyping costs 8,011,612.67 7,957,588.84 ұᔚ൬ Depreciation expenses 6,286,899.28 5,485,650.88 ೌҖ༟ପᛅቖ Amortization of Intangible assets 3,213,458.05 6,965,741.44 ፬ʮ൬ Office expenses 3,103,442.52 2,364,808.90 ፔ༔൬ Consulting fees 1,044,978.72 731,363.73 Չ˼ Others 17,501,534.49 14,397,464.00 ࠇTotal 239,851,334.25 198,395,448.00
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 265 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 56. Financial Expenses 57. Other Income 58. Investment Income ʞe ධͦൗᙑ ᚃ 56. ৌਕ൬͜ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 (As restated) ൬͜ Interest expense 29,918,280.46 40,656,683.42 ϗɝ Less: Interest income 6,990,940.29 8,634,304.92 ̋jිгฦ̰ Add: Exchange loss -931,844.76 519,656.18 ̋jୃኽ൨ତ˕̈ Add: Bill discount expenses 2,369,971.88 9,175,377.55 වᛅቖ Add: Amortization of lease liabilities 367,864.04 230,362.75 ̋jՉ˼˕̈ Add: Other expenses 4,305,979.92 3,633,997.39 ࠇTotal 29,039,311.25 45,581,772.37 57. Չ˼ϗू 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 (As restated) ൨ Government subsidies 40,196,633.51 75,251,498.65 ϔʿಯе Value added tax deduction and exemption 13,767,078.83 13,219,743.67 ଡ଼ϗू Debt restructuring gain -73,568.00 – Չ˼ Others 335,587.07 813,074.29 ࠇTotal 54,225,731.41 89,284,316.61 58. ҳ༟ϗू 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 ᛆ ҳ༟ϗू Income from long-term equity investments accounted for by the equity method 389,133,395.15 285,368,786.74 ᛆ ҳ༟ϗू Income from long-term equity investments accounted for by the disposal of cost-method – – ଡ଼ϗू Gain on debt restructuring 7,579,089.36 -3,838,657.47 ߎDividends on investments in other equity instruments – – ٙ ҳ༟ϗू Investment income arising from the disposal of trading financial assets 1,372,080.90 211,607.06 ࠇTotal 398,084,565.41 281,741,736.33
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 266 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ʞe ධͦൗᙑ ᚃ 59. ᜊਗฦू 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 ٙ ፄ༟ପ Financial assets at fair value through profit or loss -4,498,257.68 5,997,041.06 ࠇTotal -4,498,257.68 5,997,041.06 60. ฦ̰ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 Νุಛධ Deposit inter-bank payments 21,493.04 2,400,748.93 Ꮠϗୃኽᕸሪ௪ Bad debt provision for note receivable -740,742.58 524,440.48 Ꮠϗሪಛᕸሪ௪ Bad debt provision for accounts receivable -34,209,537.21 -12,464,615.44 ௪ Provision for impairment of accounts receivable financing 1,368,351.87 278,469.80 Չ˼Ꮠϗಛᕸሪ௪ Bad debt provision for other receivables -5,951,370.45 1,955,997.02 ൲ಛʿྦಛᕸሪ௪ Provision for bad debts in loans and advances issued 2,407,677.89 4,441,540.69 ፕ Credit commitment 991,175.88 424,492.91 ࠇTotal -36,112,951.56 -2,438,925.61 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 59. Gain arising from the changes in fair value 60. Impairment loss of credit
Page 268
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 267 ʞe ධͦൗᙑ ᚃ 61. ฦ̰ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 πൻᄆ௪ Impairment loss on inventory -19,988,742.71 -15,451,368.65 ௪ Provision for bad debts of contract assets -9,053,364.80 -13,681,553.35 ௪ Provision for impairment of fixed assets -7,746,289.48 -508.90 ௪ Provision for impairment of intangible assets -783,302.24 – ௪ Impairment provision of projects under construction -750,442.57 -0.04 ௪ Provision for impairment of goodwill -17,851,500.00 – ௪ Provision for impairment of other non-current assets – 22,315,079.55 ௪ Impairment provision for prepaid accounts 220,906.10 -487,896.36 ࠇTotal -55,952,735.70 -7,306,247.75 62. ༟ପஈໄϗू 2025ϋ1-6˜ 2024ϋ1-6˜ ɝ͉ϋ ฦू ᕘ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 Amount recorded in extraordinary profit and loss ٙ ਗ༟ପஈໄϗ ू Disposal income of non current assets not classified as held for sale 8,529,202.73 -59,400,276.22 8,529,202.73 ยቋฦू ฦ̰˸ Ñ ᅰΐͪ Including: Loss from environmental relocation (Loss listed with “-”) – -61,681,249.92 – ༟ପஈໄϗू Income from disposal of fixed assets 4,736,013.93 2,463,320.83 4,736,013.93 ೌҖ༟ପஈໄϗू Income from disposal of intangible assets 3,751,916.61 – 3,751,916.61 Դ͜ᛆ༟ପஈໄϗू Income from disposal of right of use assets 41,272.19 -182,347.13 41,272.19 ࠇTotal 8,529,202.73 -59,400,276.22 8,529,202.73 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 61. Impairment losses of assets 62. Gains on disposals of assets
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 268 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ʞe ධͦൗᙑ ᚃ 63. ᐄุ̮ϗɝ 2025ϋ1-6˜ 2024ϋ1-6˜ ɝ͉ϋ ᕘ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 Amount recorded in extraordinary profit and loss (As restated) ʿ ഃ Penalty income, penalty and compensation, etc 1,577,494.77 1,109,153.49 1,577,494.77 Ꮠ˹ಛ Unpaid payables 4,351.42 1,107,706.78 4,351.42 п Government grants 5,000.00 – 5,000.00 Չ˼ Others 2,936,590.69 7,041,534.05 2,936,590.69 ࠇTotal 4,523,436.88 9,258,394.32 4,523,436.88 64. ᐄุ̮˕̈ 2025ϋ1-6˜ 2024ϋ1-6˜ ɝ͉ಂ ᕘ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 Amount recorded in extraordinary profit and loss ˕̈ Penalty and overdue surcharge 2,374,469.84 2,658,778.45 2,374,469.84 ਗ༟ପ์ฦ జᄻฦ̰ Loss from damage and scrapping of non-current assets 211,580.93 108,293.38 211,580.93 ᗍ˕̈ Donation for public welfare 170,000.00 – 170,000.00 Չ˼ Others 12,219.00 135,908.99 12,219.00 ࠇTotal 2,768,269.77 2,902,980.82 2,768,269.77 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 63. Non-operating income 64. Non-operating expenses
Page 270
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 269 ʞe ධͦൗᙑ ᚃ 65. ൬͜ (1) ൬͜ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 ٙ Current income tax calculated according to tax law and provision 28,937,046.65 43,503,628.10 ൬͜ Deferred income tax -6,354,230.55 4,502,941.45 ࠇTotal 22,582,816.10 48,006,569.55 66. Չ˼ၝΥϗू ൗ ʞe47ᗫ f V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 65. Income tax expense (1) Income tax expense 66. Other comprehensive income Please refer to V. 47 Other comprehensive income for details.
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 270 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ʞe ධͦൗᙑ ᚃ 67. ࣘ 1) ࣘ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 (As restated) 1. ඎ 1. Reconciliation of net profit to cash flows from operating activities ଋлᆗ Net profit 430,619,651.25 290,405,349.08 ௪ Add: Provisions for asset impairment 55,952,735.70 7,306,247.75 ௪ Add: Impairment loss on credit 36,112,951.56 2,438,925.61 ήପұᔚŊ Դ͜ᛆ༟ପұᔚ Depreciation of PP&E\Depreciation of investment property\Depreciation of right-of-use assets 143,673,237.18 135,332,620.84 ೌҖ༟ପᛅቖ Amortization of intangible assets 11,540,261.76 29,882,200.40 ᛅ൬͜ᛅቖ Amortization of long-term deferred expenses 9,875,147.56 24,117,034.41 ಂ ฦ̰ ϗू˸ -෬ ΐ Losses on disposal of property, plant and equipment, intangible assets and other long-term assets (gain listed as “-”) -8,529,202.73 59,400,276.22 ༟ପజᄻฦ̰ ϗू˸ -෬ ΐ Losses on retirement of property, plant and equipment (gain listed as “-”) 211,580.93 108,293.38 ᜊਗฦू ϗू˸ -෬ ΐ Gains or losses on changes in fair value (gain listed as “-”) 4,498,257.68 -5,997,041.06 ৌਕ൬͜ ϗू˸ -෬ ΐ Financing expenses (gain listed as “-”) 30,286,144.50 40,639,893.82 ҳ༟ฦ̰ ϗू˸ -෬ ΐ Investment losses (gain listed as “-”) -398,084,565.41 -281,741,736.33 ಯˇ ᄣ̋˸ - ෬ΐ Decrease in deferred tax assets (increase listed as “-”) -6,118,131.55 -1,957,388.32 ᄣ̋ ಯˇ˸ - ෬ΐ Increase in deferred tax liabilities (decrease listed as “-”) -236,099.00 6,460,329.77 ᄣ̋ ಯˇ˸ -෬ ΐ Increase in deferred revenue (decrease listed as “-”) -20,929,062.04 -1,507,887.89 ಯˇ ᄣ̋˸ -෬ ΐ Decrease in inventories (increase listed as “-”) -304,009,498.08 41,900,853.49 ಯˇ ᄣ̋˸ -෬ ΐ Decrease in contractual assets (increase listed as “-”) -127,855,706.32 -106,817,698.96 ಯˇ ᄣ̋˸ - ෬ΐ Decrease in operating receivables (increase listed as “-”) -955,382,534.78 -633,696,933.23 ᄣ̋ ಯˇ˸ - ෬ΐ Increase in operating payables (decrease listed as “-”) 562,753,957.86 146,423,123.54 ᄣ̋ ಯˇ˸ -෬ ΐ Increase in Contractual liabilities (decrease listed as “-”) 18,957,285.20 -4,453,959.25 Չ˼ Others – – ඎଋᕘ Net cash flows from operating activities -516,663,588.73 -251,757,496.73 2. ɽҳ༟ձ ਗ 2. Significant non-cash investing and financing activities: ༟͉ Debt converted to capital – – ̙ᔷ౬ʮ̡වՎ Convertible corporate bonds due within one year – – ༟ପ Leased fixed assets through financing – – 3. ر3. Changes in cash equivalents: ಂ͋ቱᕘ Ending balance of cash 1,803,247,577.77 1,378,084,325.25 ቱᕘ Less: Beginning balance of cash 2,101,118,496.96 1,781,689,713.81 ಂ͋ቱᕘ Add: Ending balance of cash equivalents – – ቱᕘ Less: Beginning balance of cash equivalents – 400,000,000.00 ଋᄣ̋ᕘ Net increase in cash and cash equivalents -297,870,919.19 -803,605,388.56 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 67. Supplementary information to the consolidated cash flow statement (1) Supplementary information to the cash flow statement
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 271 ʞe ධͦൗᙑ ᚃ 67. ࣘᚃ (2) ଋᕘ ೌf (3) ଋᕘ ೌf (4) ي 2025ϋ6˜30˚ 2024ϋ6˜30˚ ධͦ Items 30 Jun 2025 30 Jun 2024 (As restated) ږCash 1,803,247,577.77 1,378,084,325.25 ږIncluding: Cash in hand 64,700.90 176,352.38 ٙ ვБπಛ Bank deposits available for use on demand 1,736,964,322.30 1,372,351,012.10 Չ˼ ږ Other monetary funds available for use on demand 66,218,554.57 5,556,960.77 يCash equivalents – – ٙ ፄ༟ ପ Including: Financial assets for resale due within three months – – ي ቱᕘ Ending balance of cash and cash equivalents 1,803,247,577.77 1,378,084,325.25 ණྠʫɿ Փ ഃ ي Including: Restricted cash and cash equivalent in parent company or subsidiaries of the Company 3,112,936.00 4,207,050.00 V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 67. Supplementary information to the consolidated cash flow statement (continued) (2) Net cash paid for acquiring subsidiaries this year None. (3) Net cash received from disposal of subsidiaries this year None. (4) Cash and cash equivalents
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 272 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ʞe ධͦൗᙑ ᚃ 67. ࣘᚃ (5) ږ ر 2025ϋ6˜30˚ 2024ϋ6˜30ଣ͟ ධͦ Items 30 Jun 2025 30 Jun 2024 Reasons for belonging to cash and cash equivalents ᅡಛ Funding for affordable rental housing 3,112,936.00 4,207,050.00 ՈϞਖ਼͜͜ Dedicated use ࠇTotal 3,112,936.00 4,207,050.00 (6) ࿆༟ ږ 2025ϋ6˜30˚ 2024ϋ6˜30ଣ͟ ධͦ Items 30 Jun 2025 30 Jun 2024 Reasons for belonging to cash and cash equivalents ږBank acceptance guarantee deposit 141,889,720.38 163,919,639.85ࠢ Restricted use ږLetter of guarantee margin 99,414,267.35 141,984,112.92ࠢ Restricted use ږStatutory reserve 114,437,777.04 124,175,179.87ࠢ Restricted use ץFixed deposit pledge 221,326,414.26 165,826,955.23ࠢ Restricted use ഐ Litigation freeze – 442,550.72ࠢ Restricted use ږFutures margin 23,086,003.50 –ࠢ Restricted use ږLetter of credit deposit 16,800,821.51 9,284,774.84ࠢ Restricted use ࠇTotal 616,955,004.04 605,633,213.43 ൗj ൗʞ .1Չ ᒔ ഃ ಛධf V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 67. Supplementary information to the consolidated cash flow statement (continued) (5) Restricted but still classified as cash and cash equivalents (6) Monetary funds that do not belong to cash and cash equivalents Note: The above-mentioned monetary funds are included in Note V.1 Other monetary funds, which also include funds such as excess deposit reserves of financial companies.
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 273 ʞe ධͦൗᙑ ᚃ 68. ධͦ ೌf 69. ධͦ 2025ϋ6˜30˚ 30 Jun 2025 ̮࿆ቱᕘ ұၑිଟ ɛ͏࿆ቱᕘ ධͦ Items Foreign currency balance Exchange rate CNY balance ږCash in hand – – 25,164.80 ᕀ GBP 2,560.00 9.83 25,164.80 ვБπಛ Cash at bank – – 136,050,938.56 ʩ USD 114,810.51 7.16 821,882.51 ಥ࿆ HKD 87,560.00 0.91 79,850.34 ᆄʩ EUR – – – ᕀ GBP 13,748,647.58 9.83 135,149,205.71 Ꮠ˹ୃኽ Notes payable – – – ࠛجCHF – – – Ꮠϗሪಛ Accounts receivable – – 54,830,191.77 ʩ USD 1,488,136.26 7.16 10,652,972.22 ᕀ GBP 4,494,122.03 9.83 44,177,219.55 ᆄʩ EUR – – – Չ˼Ꮠϗಛ Other receivables – – 15,151,325.08 ಥ࿆ HKD 4,705.46 0.91 4,291.14 ᕀ GBP 1,540,898.67 9.83 15,147,033.94 ಛ Short-term loans – – 347,177,822.45 ᕀ GBP 35,318,191.50 9.83 347,177,822.45 ʩ USD – – – Ꮠ˹੮ಛ Accounts payable – – 42,194,045.97 ʩ USD 43,380.57 7.16 310,544.16 ᕀ GBP 4,260,783.50 9.83 41,883,501.81 Չ˼Ꮠ˹ಛ Other payables – – 3,417,172.44 ᕀ GBP 347,626.90 9.83 3,417,172.44 ਗ ව Non-current liabilities due within one year – – 88,470,000.00 ᕀ GBP 9,000,000.00 9.83 88,470,000.00 70. Չ˼ ೌf V. NOTES TO MAJOR ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 68. Items in the Statement of Changes in Shareholders’ Equity None. 69. Foreign currency monetary items 70. Others None.
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 274 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ʬe ೯˕̈ 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 (As restated) ೯˕̈ ൗ Expensed R&D expenditure (Note) 239,851,334.25 198,395,448.00 ࠇTotal 239,851,334.25 198,395,448.00 ൗj ൗʞe 55f ɖe ᜊʷ 1. ΝɓછՓɨΆุΥԻ 2. ͉ණྠ͉ಂΝɓછՓɨΆุΥԻ (1) ΝɓછՓɨΆุΥԻ ΥԻ˙Τ၈ ٙ ᛆूˢԷ ϓΝɓછՓ ٙ Աኽ Ї ΥԻ˚ ϗɝ Ї ΥԻ˚ ଋлᆗ ˢ༰ಂග ϗɝ ˢ༰ಂග ଋлᆗ Name of the acquired party Proportion of Equity Obtained in the Business Combination Basis for Determining a Business Combination under Common Control Date of Combination Basis for Determining the Date of Combination Revenue of the Acquired Party from the Beginning of the Year to the Date of Combination Net Profit of the Acquired Party from the Beginning of the Year to the Date of Combination Revenue of the Acquired Party during the Comparable Period Net Profit of the Acquired Party during the Comparable Period Ҧ ʮ̡ 100% աዚཥණྠછՓ 2025-4-30ᛆᔷᜫᙄ 25,234,524.61 482,692.38 40,222,719.36 302,264.51 Chongqing Panlink Transmission Technology Co., Ltd Controlled by Electromechanical Group Equity Transfer Agreement VI. R&D EXPENDITURE Note: The R&D expenditure details of the Group are detailed in Note V, 55. VII. CHANGES IN CONSOLIDATION SCOPE 1. No business combination not under common control in the current period. 2. No business combination under common control in the current period. (1) Business combinations under common control in the current period
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 275 V I I . CHANGES IN CONSOLIDATION SCOPE (CONTINUED) (2) Consolidation Cost (3) Carrying amount of the acquiree’s assets and liabilities at the acquisition date 3. No absorption combination under common control in the current period 4. Changes in the Consolidated Scope of the Group for other reasons during this period ɖe ᜊʷ ᚃ (2) ΥԻϓ͉ Ҧ ʮ̡ ධͦ Items Chongqiing Panlink Transmission Technology Co., Ltd ږCash 35,621,200.00 ࠇTotal Consolidation Cost 35,621,200.00 (3) ᄆ ࠽ ʮ̡ Chongqing Panlink Transmission Technology Co., Ltd ΥԻ˚ ɪϋϋ͋ ධͦ Items Acquisition date The end of last year ༟ପj Assets: ږCash and cash equivalents 879,349.68 259,810.65 Ꮠϗୃኽ Notes receivable 3,810,529.98 6,810,156.42 Ꮠϗሪಛ Accounts receivable 34,610,325.64 26,675,769.11 Չ˼Ꮠϗሪ Other receivables 7,184.84 3,243.52 π Inventories 18,900,359.29 20,633,408.11 ༟ପ PPE 2,168,138.86 1,757,715.75 ʈ Construction in progress 1,546,017.70 1,654,017.70 ೌҖ༟ପ Intangible assets 37,562.57 37,562.57 ༟ପ Deferred tax assets 604,684.66 604,684.66 ࠇTotal assets 62,564,153.22 58,436,368.49 වj Liabilities: ಛ Short-term loan – 3,002,750.00 Ꮠ˹੮ಛ Account payable 22,166,516.06 19,165,306.95 ཫϗಛධ Advance for customers 3,209,089.35 3,209,089.35 Ꮠʹ൬ Taxes payable 84,033.27 -314,405.19 Չ˼Ꮠ˹ಛ Other payables 3,668,129.58 418,672.13 ࠇTotal liabilities 29,127,768.26 25,481,413.24 ଋ༟ପ Net assets 33,436,384.96 32,954,955.25 ᛆू Less: non-controlling interest – – ଋ༟ପ Acquired net assets 33,436,384.96 32,954,955.25 3. ٙ іϗΥԻ 4. ΥԻᇍఖ ᜊਗ
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 276 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ɖe ᜊʷ ᚃ (3) ᄆ ᚃ ʮ̡ ˸ ɨᔊ၈ ˰ီᅃʮ̡ 2025ϋ4˜10ٰ ึ2025ୋɓϣึᙄӔᙄ ึᙄӔ ஷཀd ԫධც͟ɧʱʘɚ˸ɪԫ Ӕஷཀу̙ f ˰ီᅃʮ̡ԫึ͟ ᅅዚґ ණྠ ʮ̡ ԫึӔᙄც͟ɧʱʘɚ˸ɪԫ பʮ છՓԫึdఄ̰࿁˰ီᅃʮ̡ 2025ϋ4˜͋ʔΎਗ਼˰ီ ᅃʮ̡ॶɝΥԻᇍఖf V I I . CHANGES IN CONSOLIDATION SCOPE (CONTINUED) (3) Carrying amount of the acquiree’s assets and liabilities at the acquisition date (continued) According to the Resolution of the First Shareholders’ Meeting in 2025 of Chongqing Sino-Germany Smart Factory Solutions Co., Ltd. (hereinafter referred to as ‘Sino-Germany’) dated April 10, 2025: ‘The following matters shall require unanimous approval by all directors, while other matters shall require approval by more than two-thirds of the directors.’ The board of directors of Sino-Germany consists of five members, three of whom are nominated by Chongqing Machine Tool (Group) Co., Ltd. With the revised Articles of Association stipulating that board resolutions now require approval by more than two-thirds of the directors, Chongqing Machine Tool (Group) Co., Ltd. can no longer control the board and has consequently lost control over Sino-Germany. As a result, Sino-Germany was excluded from the consolidated financial statements at the end of April 2025.
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 277 ɞe ᛆू 1. ᛆू (1) ϓ ሯ ൗ̅༟͉ ຬʩ ˢԷ (%) ՟˙ό Shareholding (%) ટ ගટ No. Name of subsidiaries Business category Major business location Place of registration Nature of business Registered capital (RMB’0000) Direct Indirect Acquisition method 1ᅅ̔၅ӛԓՓਗᔷΣӻ୕ ʮ̡ ೯ӛԓཧ 23,280.00 100 – ҳ༟ Chongqing CAFF Automotive Braking & Steering System Co., Ltd. Limited liability company (sole legal person) Yubei district, Chongqing Yubei district, Chongqing Manufacturing esale and R&D of vehicle parts and components Invest 2ɛዹ༟ ̮ਠҳ༟Άุҳ༟ eႡிeቖਯʈุዚኜɛe ౽ঐʷண௪ഃ 16,161.04 100 –ΆุΥԻ Chongqing Machinery & Electronic Intelligent Manufacturing Co., Ltd. Limited liability company (wholly owned by a legal person) (investment by a foreign-invested enterprise) Nan’an district, Chongqing Nan’an district, Chongqing Design, manufacture and sale of industrial robots, intelligent equipment, etc. Business combinations under common control 2.1ۜ5,431.24 – 66.26ΆุΥԻ Chongqing Mengxun Electronic Technology Co., Ltd. Limited liability company (Sino-foreign joint venture) Nan’an district, Chongqing Nan’an district, Chongqing Processing Electronic Products Business combinations under common control 3ᅅዚґ ණྠ பʮ̡ ೯eႡி ၾቖਯ 59,424.13 100 – ҳ༟ Chongqing Machine Tools (Group) Co., Ltd. Limited liability company (sole legal person) Nan’an district, Chongqing Nan’an district, Chongqing R&D, Manufacturing and Sales of Gear Processing Machine Tools and Lathes Invest 3.1ਕiમಗዚʿ ࡌ 500 – 51 ҳ༟ Fu Baotian Cotton picking services Co., Ltd. Other limited liability companies Tacheng district, Tacheng district, Xinjiang Mechanized picking services for cotton; Cotton machinery and spare parts sales, maintenance Invest 3.2ʈՈ 5,500.00 – 100 ҳ༟ Chongqing Tool Factory Co., Ltd. Limited Liability Company (Wholly State-owned) Jiangjin district, Chongqing Jiangjin district, Chongqing Cutting tool Invest 3.3ͺᅃၚᑮӅႡி பʮ̡ eႡிeቖਯ 4,000.00 – 100 ҳ༟ Chongqing Holroyd Precision Rotors Manufacturing Co., Ltd. Limited liability company (Sino-foreign joint venture) Nan’an district, Chongqing Nan’an district, Chongqing Precision screw design, manufacturing, marketing Invest VIII. INTERESTS IN OTHER ENTITIES 1. Interests in Subsidiaries (1) Group structure
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 278 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ሯ ൗ̅༟͉ ຬʩ ˢԷ (%) ՟˙ό Shareholding (%) ટ ගટ No. Name of subsidiaries Business category Major business location Place of registration Nature of business Registered capital (RMB’0000) Direct Indirect Acquisition method 4 (PTG) Limited ಠʮ̡ 2,000ᕀ 100 –ΥԻ Precision Technologies Group (PTG) Limited limited liability company United Kingdom United Kingdom Shell company GBP 20 million Business combination not under common control 4.1 Precision Components Ltd. ၚཧ ᑮӅձ၇ልᕏཧ 1ᕀ – 100ΥԻ limited liability company United Kingdom United Kingdom Screw and various complex parts GBP 1 Business combination not under common control 4.2 Milnrow Investments Ltd. ҳ༟ Ϟ 198ᕀ – 100ΥԻ limited liability company United Kingdom United Kingdom Leasing of properties GBP 198 Business combination not under common control 4.3 PTG Deutschland GmbH PTGᅃ பʮ̡ ᅃ ᅃ ዚґ͛ପၾቖਯ 2.5ຬᆄʩ – 100ΥԻ limited liability company Germany Germany Machine Tool Production and Sales EUR 25,000 Business combination not under common control 4.4 PTG Investment Development Company Ltd. PTGಥ 60ຬಥʩ – 100 ҳ༟ limited liability company Hong Kong Hong Kong Trade in machinery and raw materials HKD 600,000 Invest 4.5 HoIroyd Precision Limited HPL ዚґႡி 100ᕀ – 100ΥԻ limited liability company United Kingdom United Kingdom Manufacturing of machine tools GBP 100 Business combination not under common control 4.6 ʮ̡ US Holding ɓॴ SPV 1ᕀ – 100 ҳ༟ Precision Technologies Group (US) Limited (US Holding) limited liability company United Kingdom United Kingdom First class SPV built for American plant GBP 1 Invest 4.6.1 Precision Technologies Group Inc PTG ɚॴ SPV 1,000ʩ – 100 ҳ༟ limited liability company The United States The United States Second class SPV built for American plant USD 1,000 Invest 4.6.1.1 ᎍፕͺᅃၚᑮӅʮ̡ USHPR ᑮӅႡி 1ʩ – 100 ҳ༟ Holroyd Precision Screw and Rotors Company (US HPR) limited liability company The United States The United States Manufacturing of screws USD 1 Invest ɞe ᛆू ᚃ 1. ᛆू ᚃ (1) ϓ ᚃ VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 1. Interests in Subsidiaries (continued) (1) Group structure (continued)
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 279 ሯ ൗ̅༟͉ ຬʩ ˢԷ (%) ՟˙ό Shareholding (%) ટ ගટ No. Name of subsidiaries Business category Major business location Place of registration Nature of business Registered capital (RMB’0000) Direct Indirect Acquisition method 5eක೯eႡி˥ቃዚeሜ ኜʿႾпༀໄ 14,709.71 100 – ҳ༟ Chongqing Water Turbine Works Co., Ltd. Limited liability company (sole legal person) Jiangjin district, Chongqing Jiangjin district, Chongqing Design, Development and Manufacture of Turbines, Governors and Auxiliary Devices Invest 6ᅅ̹ಽ̏ਜ ཥᇞཥ͛ପቖਯ 48,703.03 83.47 – ҳ༟ Chongqing Pigeon Brand Electric Wire & Cable Co., Ltd. Limited liability company Yubei district, Chongqing Yubei district, Chongqing Manufacture electric wires and cables Invest 6.1ᘻ 5,300.00 – 100 ҳ༟ Chongqing Pigeon Electric Porcelain Co., Ltd. Limited liability company (sole legal person) Changshou district, Chongqing Changshou district, Chongqing Manufacture electrical porcelain Invest 7ᅅஷ͜ʈุ ණྠ பʮ̡ ዚиዚഃ 51,509.01 100 – ҳ༟ Chongqing General Industry (Group) Co., Ltd. Limited liability company (sole legal person) Nan’an district, Chongqing Nan’an district, Chongqing Production of fan coolers, etc. Invest 7.1ஷ͜ཥኜ பʮ̡ ۜ ቖਯ 2,500.00 – 100 ҳ༟ Chongqing Shunchang General Electrical Equipment Co., Ltd. Limited liability company (sole legal person) Nan’an district, Chongqing Nan’an district, Chongqing Network products, environmental products and gas products sales Invest 8ʮ̡ ɪ̹ ɢ೯ཥዚଡ଼˪ 89,250.62 98.42 –ΥԻ Chongqing Chengfei New Material Co., Ltd Other corporations (unlisted) Nan’an district, Chongqing Nan’an district, Chongqing Manufacturing of wind-power equipment Business Combination not under Common Control 8.1І್ɛ ɛዹ༟ ɢ೯ཥዚଡ଼˪ 5,000.00 – 100 ҳ༟ Gansu Chongtong Chengfei New Material Co., Ltd. Limited Liability Company (Wholly- owned legal person invested or controlled by a non-natural person) Weiwu City, Gansu province Weiwu City, Gansu province Manufacturing of wind-power equipment Invest 8.2ཥண௪Ϫᘽ ʮ̡ І್ɛ ɛዹ༟ ක೯ਜ ක೯ਜ ɢ೯ཥዚଡ଼˪ 10,000.00 – 100 ҳ༟ Chongtong Chengfei Wind Power Equipment Jiangsu Co., Ltd. Limited Liability Company (Wholly- owned legal person invested or controlled by a non-natural person) Rudong district, Jiangsu Rudong district, Jiangsu Manufacturing of wind-power equipment Invest ɞe ᛆू ᚃ 1. ᛆू ᚃ (1) ϓ ᚃ VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 1. Interests in Subsidiaries (continued) (1) Group structure (continued)
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 280 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ሯ ൗ̅༟͉ ຬʩ ˢԷ (%) ՟˙ό Shareholding (%) ટ ගટ No. Name of subsidiaries Business category Major business location Place of registration Nature of business Registered capital (RMB’0000) Direct Indirect Acquisition method 8.3І್ɛ ɛዹ༟ ΛΫૄІ Λ̹ ΛΫૄІ Λ̹ ཥंዚձኜҿႡிุ 5,000.00 – 100 ҳ༟ Xinjiang Chengfei New Material Co., Ltd Limited Liability Company (Wholly- owned legal person invested or controlled by a non-natural person) Changji, Xinjiang Changji, Xinjiang Electrical machinery and equipment manufacturing industry Invest 8.4І್ɛ ɛዹ༟ ̹ɽ τ̹ ̹ɽ τ̹ ཥɢeᆠɢ͛ପձԶᏐุ 10,815.00 – 100 ҳ༟ Jilin Chengfei New Materials Co., Ltd Limited Liability Company (Wholly- owned legal person invested or controlled by a non-natural person) Da’an City, Baicheng City, Jilin Province Da’an City, Baicheng City, Jilin Province Electricity, heat production and supply industry Invest 9ண ձႡி 19,641.15 100 – ҳ༟ Chongqing Pump Industry Co., Ltd. Limited liability company (sole legal person) Shapingba district, Chongqing Shapingba district, Chongqing Design and Manufacture of Industrial Pumps and Parts and Pressure Vessels Invest 10ப ʮ̡ ਜ ႡிंᏀᐵዚʿཧ 18,721.39 100 – ҳ༟ Chongqing Gas Compressor Factory Co., Ltd. Limited liability company Shapingba district, Chongqing Shapingba district, Chongqing Manufacturing of Gas Compressors and Components Invest 11ᅅʈุረঐ௴อʕː ʮ̡ ɛዹ༟ ̮ਠҳ༟Άุҳ༟ ೯ፔ༔ 3,000.00 100 –ΆุΥԻ Chongqing Industrial Enabling Innovation Center Co., Ltd. Limited liability company (wholly owned by a legal person) (investment by a foreign-invested enterprise) Northern new district, Chongqing Northern new district, Chongqing Consultation on Research and Development of Mechanical and Electrical Equipment Technology Business combinations under common control 12ණྠৌਕ ʮ̡ ਕ 100,000.00 70 – ҳ༟ Chongqing Machinery & Electric Holding Group Finance Co., Ltd. Limited liability company Northern new district, Chongqing Northern new district, Chongqing Providing financial and financing services to member units Invest 13̋ʈ 3,000.00 51 – ҳ༟ Xinjiang Zhongxinhong Energy Service Co., Ltd. Limited Liability Company (State- controlled) Aksu Prefecture, Xinjiang Aksu Prefecture, Xinjiang Processing of Petroleum, Natural Gas and Other Fuels Invest ɞe ᛆू ᚃ 1. ᛆू ᚃ (1) ϓ ᚃ VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 1. Interests in Subsidiaries (continued) (1) Group structure (continued)
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 281 VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 1. Interests in Subsidiaries (continued) (2) Significant partly-owned subsidiaries (3) Key financial information of significant partly-owned subsidiaries ɞe ᛆू ᚃ 1. ᛆू ᚃ (2) Ό༟ɿʮ̡ ٙ؇ٰ ˢԷ (%) ˇᅰ ᛆू ˇᅰ ฦू Չ˼ᛆूᜊਗ᙮ ᕘ ؇ٰ л ಂ͋͋ቱᕘˇᅰ ᛆू ɿʮ̡Τ၈ Name of subsidiary Shareholding of minority shareholders (%) 31 Dec 2024 of non-controlling interest Profit or loss attributable to minority shareholders Change in defined income plan belongs to non-controlling interest Dividends distributed to minority shareholders 30 Jun 2025of non- controlling interest ʮ̡ Chongqing Pigeon Brand Electric Wire & Cable Co., Ltd. 16.53 100,843,940.31 5,748,491.72 15,364,688.56 374,192.44 121,582,928.15 ΅ʮ̡ Chongqing Chengfei New Material Co., Ltd 1.58 5,809,909.95 309,114.36 9,520.69 6,128,545.00 ණྠ ৌਕ ʮ̡ Chongqing Machinery & Electric Holding Group Finance Co., Ltd. 30 347,903,111.77 5,306,675.84 14,791.57 353,224,579.18 (3) ࢹڦ 2025ϋ6˜30˚ 30 Jun 2025 ࠇ ɿʮ̡Τ၈ Name of subsidiaries Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities ʮ̡ Chongqing Pigeon Brand Electric Wire & Cable Co., Ltd. 1,648,010,546.49 212,957,486.82 1,860,968,033.31 1,110,663,145.17 14,775,982.21 1,125,439,127.38 ΅ʮ̡ Chongqing Chengfei New Materials Co., Ltd. 2,683,235,842.55 940,630,196.17 3,623,866,038.72 2,159,436,925.98 507,940,771.18 2,667,377,697.16 ණྠ ʮ̡ Chongqing Machinery & Electric Holding Group Finance Co., Ltd. 3,175,121,131.41 648,981,356.12 3,824,102,487.53 2,640,825,895.82 5,820,241.60 2,646,646,137.42 2024ϋ12˜31˚ 31 Dec 2024 ࠇ ɿʮ̡Τ၈ Name of subsidiaries Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities ʮ̡ Chongqing Pigeon Brand Electric Wire & Cable Co., Ltd. 1,430,343,865.89 202,596,430.46 1,632,940,296.35 910,820,572.54 231,096,277.37 1,141,916,849.91 ΅ʮ̡ Chongqing Chengfei New Materials Co., Ltd. 2,153,416,450.76 952,579,379.94 3,105,995,830.70 1,644,820,055.02 524,390,507.18 2,169,210,562.20 ණྠ ʮ̡ Chongqing Machinery & Electric Holding Group Finance Co., Ltd. 3,380,874,006.53 549,050,856.31 3,929,924,862.84 2,758,122,618.94 12,084,118.49 2,770,206,737.43
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 282 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 1. Interests in Subsidiaries (continued) (3) Key financial information of significant partly-owned subsidiaries (continued) (4) The Group has no significant restrictions on the use of corporate group assets and settlement of corporate group debts. ɞe ᛆू ᚃ 1. ᛆू ᚃ (3) ࢹڦ ᚃ 2025ϋ1-6˜ Jan-Jun 2025 ඎ ɿʮ̡Τ၈ Name of subsidiaries Operating revenue Net profit Total comprehensive income Cash flows from operating activities ʮ̡ Chongqing Pigeon Brand Electric Wire & Cable Co., Ltd. 1,160,033,124.91 34,776,114.43 44,529,651.93 -238,614,108.50 ΅ʮ̡ Chongqing Chengfei New Materials Co., Ltd. 1,295,888,555.51 19,564,200.23 19,100,497.57 -25,768,989.11 ʮ̡ Chongqing Machinery & Electric Holding Group Finance Co., Ltd. 41,444,326.71 17,688,919.48 17,738,224.70 -341,670,520.05 2024ϋ1-6˜ Jan-Jun 2024 ඎ ɿʮ̡Τ၈ Name of subsidiaries Operating revenue Net profit Total comprehensive income Cash flows from operating activities ʮ̡ Chongqing Pigeon Brand Electric Wire & Cable Co., Ltd. 1,000,113,127.40 33,211,711.83 34,524,069.33 -25,908,272.38 ΅ʮ̡ Chongqing Chengfei New Materials Co., Ltd. 1,119,144,973.61 19,558,432.97 19,558,432.97 702,416.83 ʮ̡ Chongqing Machinery & Electric Holding Group Finance Co., Ltd. 44,400,161.14 24,588,564.46 24,588,564.46 -323,581,773.56 (4) ͉ණྠೌԴ͜Άุණྠ༟ପձᎵ Փf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 283 VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 1. Interests in Subsidiaries (continued) (5) The Group has no financial or other support to structured entities included in the scope of consolidated financial statements. (6) The Group has no structured entities included in the scope of consolidated financial statements. (7) The Group and its subsidiaries have not issued equity or debt securities. 2. The situation in which the owner’s equity share of a subsidiary company changes and the subsidiary company is still under control None. ɞe ᛆू ᚃ 1. ᛆू ᚃ (5) ᇍఖ Չ f (6) ٙ ഐʷ˴f (7) א වਕᗇՎf 2. ᛆू΅ᕘ೯͛ᜊʷ ر ೌf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 284 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 3. Interests in Joint Ventures or Associates (1) Significant joint ventures or associates ɞe ᛆू ᚃ 3. ᛆू (1) ᑌᐄΆุ ሯ ˢԷ (%) ᑌᐄ ஈ ج Proportion of shareholding (%) ટ ගટ Name of associates or joint venture Business category Principal place of business Place of registration Nature of business Directly Indirectly Accounting method ΥᐄΆุ – Joint ventures– ᅅ̹Ӎջ ᜠਜ ༱ձɽ৵ɢ೯ਗዚਖ਼ุ Ⴁிʈᅀ 50.00 –ج Chongqing Cummins Engine Co., Ltd. Limited liability company (Sino-foreign joint venture) Shapingba District, Chongqing Shapingba District, Chongqing Largest professional manufacturer of heavy-duty and high-horse power engines in China Equity method ᑌᐄΆุ – Associates– ᅅ ABBʮ̡ ᅅ̹ɘᎲսਜ ֧ ᅅ̹ɘᎲս ֧ ᜊᏀ ഒᇝ 37.80 –ج Chongqing Hitachi Energy Transformer Co., Ltd. (formerly known as Chongqing ABB Transformer Co., Ltd.) Limited liability company (Sino-foreign joint venture) Huayan, Jiulongpo District, Chongqing Huayan, Jiulongpo District, Chongqing Power transformer, reactor, HVDC converter transformer, UHV AC transformer, sets of insulator Equity method ᅅ̹Ϫ̏ਜ ል ᅅ̹Ϫ̏ਜ ል Ⴁிቖਯ 41.00 –ج Chongqing jiangbei machinery Co., Ltd. (“Chongqing Jiangbei Machinery”) Limited liability company Yufu, Jiangbei District, Chongqing Yufu, Jiangbei District, Chongqing Manufacturing and sale of large separation machinery and its systems Equity method ݿ27.00 –ج Exedy (Chongqing) Drive System Co., Ltd. Limited liability company (Sino-foreign joint venture) Nanan District, Chongqing Nanan District, Chongqing manufacturing and sale of clutch and clutch pump Equity method ٤ eኬΣᑑഃӛԓཧ 44.00 –ج Chongqing Hongyan Fangda Automotive Suspension Co., Ltd. Limited liability company Yubei District, Chongqing Yubei District, Chongqing Development, manufacturing and sales of car leaf spring, auto air suspension, guide arm and other auto parts Equity method ਜ ӛԓෂਗ – 35.00ج Chongqing Arrows Auto Transmission Parts Co., Ltd. Limited liability company Nanan District, Chongqing Nanan District, Chongqing Automobile transmission Equity method பʮ̡ ̨ಥዦၾ ྤʫΥ༟ ͛ପቖਯ 34.00 –ج Knorr Bremse Commercial Vehicle Systems (Chongqing) Co., Ltd. Limited liability company (Taiwan, Hong Kong, Macao and domestic joint venture) Yubei District, Chongqing Yubei District, Chongqing Manufacturing and sale of commercial vehicle valves Equity method
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 285 (2) Unimportant associates ሯ ˢԷ (%) ᑌᐄ ஈ ج Proportion of shareholding (%) ટ ගટ Name of associates or joint venture Business category Principal place of business Place of registration Nature of business Directly Indirectly Accounting method ̹͏ ාጤ ̹ ͏ාጤ ཥɢeᆠɢ͛ପձԶᏐุ 49.00 –ج Minqin Guoneng Wind Power Co., Ltd Other Limited Liability Companies Minqin County, Wuwei City, Gansu Province Minqin County, Wuwei City, Gansu Province Electricity, heat production and supply industry Equity method பʮ̡ ̮ਠҳ༟e ዹ༟ ͛ପձቖਯ – 40ج Chongqing Shimade Intelligent Manufacturing Co., Ltd. Limited Liability Company (Foreign-invested, Non- wholly Foreign-owned) Nan’an District, Chongqing Nan’an District, Chongqing Production and sales of automated and intelligent equipment and accessories Equity method (2) ᑌᐄΆุ ሯ ˢԷ (%) ᑌᐄΆุ ج Proportion of shareholding (%) ટ ගટ Name of associates Business category Principal place of business Place of registration Nature of business Directly Indirectly Accounting method Water Gen Power S.r.lᜊᏀ ഒᇝ 49.00 –ج limited liability company Italy Italy Power transformer, reactor, HVDC converter transformer, UHVAC transformer, complete set of insulation Equity method ɞe ᛆू ᚃ 3. ᛆू ᚃ (1) ᑌᐄΆุ ᚃ VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 3. Interests in Joint Ventures or Associates (continued) (1) Significant joint ventures or associates (continued)
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 286 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 3. Interests in Joint Ventures or Associates (continued) (3) Key financial information of significant joint ventures ɞe ᛆू ᚃ 3. ᛆू ᚃ (3) ࢹڦ CQ Cummins 2025ϋ6˜30˚Ŋ 2025ϋ1-6˜ 2024ϋ6˜30˚Ŋ 2024ϋ1-6˜ ධͦ Items 30 Jun 2025/ Jan-Jun 2025 30 Jun 2024/ Jan-Jun 2024 ਗ༟ପ Current assets 2,687,360,988.07 2,087,379,008.90 يIncluding: cash and cash equivalents 472,003,463.79 503,070,658.98 ਗ༟ପ Non-current assets 1,478,263,232.50 1,476,838,969.85 ࠇTotal assets 4,165,624,220.57 3,564,217,978.75 ව Current liabilities 2,593,088,286.07 2,113,667,761.13 ව Non-current liabilities 102,657,238.66 123,175,110.65 ࠇTotal liabilities 2,695,745,524.73 2,236,842,871.78 ᛆू Non-controlling interest – ᛆू Total equity attributable to shareholders of the Company 1,469,878,695.84 1,327,375,106.97 ଋ༟ପ ΅ᕘ Net assets calculated based on shareholding ratio 734,939,347.92 663,687,553.49 ሜԫධ Adjustments 955,019.75 955,035.75 Ñਠᚑ – Goodwill – ͊ྼତлᆗ – Unrealized profit in internal transactions – ÑՉ˼ – Others 955,019.75 955,035.75 ٙ ࠽ Book value of the equity investment in the equity associates 735,894,367.67 664,642,589.23 ᑌᐄΆุ ࠽ Fair value of an associate investment with a public quotation – ᐄุϗɝ Operating revenue 2,595,001,222.30 2,170,163,423.02 ৌਕ൬͜ Financial expenses -1,609,660.00 -1,470,938.15 ൬͜ Income tax expense 118,556,420.00 95,704,277.46 ଋлᆗ Net profit 658,007,042.30 515,503,443.10 ଋлᆗ Net profit attributable to shareholders of the controlling company 658,007,042.30 515,503,443.10 ၝΥϗूᐼᕘ Total comprehensive income 658,007,042.30 515,503,443.10 ͉ණྠᆽႩԸІΥᐄΆุ л Recognized dividends from joint ventures 286,995,004.64 166,592,518.54 ԸІ л Received dividends from joint ventures in the year 286,995,004.64 166,592,518.54
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 287 VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 3. Interests in Joint Ventures or Associates (continued) (4) Key financial information of significant associates ɞe ᛆू ᚃ 3. ᛆू ᚃ (4) ࢹڦ ABBܠ ABB chongqing Hongyan fangda EXEDY (Chongqing) Co., Ltd 2025ϋ6˜30˚Ŋ 2025ϋ1-6˜ 2024ϋ6˜30˚Ŋ 2024ϋ1-6˜ 2025ϋ6˜30˚Ŋ 2025ϋ1-6˜ 2024ϋ6˜30˚Ŋ 2024ϋ1-6˜ 2025ϋ6˜30˚Ŋ 2025ϋ1-6˜ 2024ϋ6˜30˚Ŋ 2024ϋ1-6˜ ධͦ Items 30 Jun 2025/ Jan-Jun 2025 30 Jun 2024/ Jan-Jun 2024 30 Jun 2025/ Jan-Jun 2025 30 Jun 2024/ Jan-Jun 2024 30 Jun 2025/ Jan-Jun 2025 30 Jun 2024/ Jan-Jun 2024 ਗ༟ପ Current assets 2,669,230,647.05 2,086,859,795.80 473,801,891.30 466,268,811.40 257,215,847.76 288,818,236.69 ږ ي Including: cash and cash equivalents 48,907,461.08 86,699,389.29 25,879,701.68 1,433,213.30 85,278,004.06 24,158,367.04 ਗ༟ପ Non-current assets 738,722,086.60 742,393,213.16 213,846,181.85 229,507,526.77 91,603,225.63 110,151,665.76 ࠇTotal assets 3,407,952,733.65 2,829,253,008.96 687,648,073.15 695,776,338.17 348,819,073.39 398,969,902.45 ව Current liabilities 1,948,668,059.96 1,521,605,993.37 299,201,124.27 358,047,252.99 45,539,899.65 64,605,134.31 ව Non-current liabilities 406,982,130.18 349,241,357.35 47,648,041.82 447,687.12 1,488,444.52 1,663,555.60 ࠇTotal liabilities 2,355,650,190.14 1,870,847,350.72 346,849,166.09 358,494,940.11 47,028,344.17 66,268,689.91 ᛆू Non-controlling interest – – 24,899,484.46 24,151,435.04 – – ᛆू Total equity attributable to shareholders of the Company 1,052,302,543.51 958,405,658.24 315,899,422.60 313,129,963.02 301,790,729.22 332,701,212.54 ٙ ଋ༟ପ΅ᕘ Net assets calculated based on shareholding ratio 397,770,361.45 364,194,150.13 138,995,745.94 137,777,183.73 81,483,496.89 89,829,327.39 ሜԫධ Adjustments 29,821,203.94 27,904,392.64 -16,244,754.43 -16,078,952.02 -8,463,829.23 -8,463,829.23 Ñਠᚑ – Goodwill – – – ͊ྼତлᆗ – Unrealized profit in internal transactions – – – ÑՉ˼ – Others 29,821,203.94 27,904,392.64 -16,244,754.43 -16,078,952.02 -8,463,829.23 -8,463,829.23 ٙ ࠽ Book value of the equity investment in the equity associates 427,591,565.39 392,098,542.77 122,750,991.51 121,698,231.71 73,019,667.66 81,365,498.16 ᑌᐄΆ ࠽ Fair value of an associate investment with a public quotation – – – ᐄุϗɝ Operating revenue 1,297,370,070.93 982,565,986.41 249,350,447.38 263,935,446.49 141,362,018.96 209,576,069.05 ৌਕ൬͜ Financial expenses – -221,971.37 1,692,011.60 2,280,611.66 -952,808.53 166,126.35 ൬͜ Income tax expense 11,738,544.22 10,156,438.02 – – 799,395.04 ଋлᆗ Net profit 124,967,212.90 48,696,420.56 -790,570.05 -9,886,195.84 -22,821,997.77 2,600,666.10 ଋлᆗ Net profit attributable to shareholders of the controlling company 124,967,212.90 48,696,420.56 -972,173.76 -9,989,809.27 -22,821,997.77 2,600,666.10 ၝΥϗूᐼᕘ Total comprehensive income 124,967,212.90 48,696,420.56 -790,570.05 -9,886,195.84 -22,821,997.77 2,600,666.10 ͉ණྠᆽႩԸІΥᐄΆ л Recognized dividends from joint ventures 28,768,673.30 – – – 1,350,000.00 2,962,383.24 Ը л Received dividends from joint ventures in the year 28,768,673.30 – – – 1,350,000.00 2,962,383.24
Page 289
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 288 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ɞe ᛆू ᚃ 3. ᛆू ᚃ (4) ࢹڦ ᚃ ᅅ Knorr Chongqing Jiangbei Machinery Arrows Auto Transmission Double Ring Transmission (Chongqing) 2025ϋ6˜30˚Ŋ 2025ϋ1-6˜ 2024ϋ6˜30˚Ŋ 2024ϋ1-6˜ 2025ϋ6˜30˚Ŋ 2025ϋ1-6˜ 2024ϋ6˜30˚Ŋ 2024ϋ1-6˜ 2025ϋ6˜30˚Ŋ 2025ϋ1-6˜ 2024ϋ6˜30˚Ŋ 2024ϋ1-6˜ ධͦ Items 30 Jun 2025/ Jan-Jun 2025 30 Jun 2024/ Jan-Jun 2024 30 Jun 2025/ Jan-Jun 2025 30 Jun 2024/ Jan-Jun 2024 30 Jun 2025/ Jan-Jun 2025 30 Jun 2024/ Jan-Jun 2024 ਗ༟ପ Current assets 443,610,650.46 417,840,233.34 372,314,187.59 378,807,596.40 312,340,310.09 265,479,574.86 ږ ي Including: cash and cash equivalents 106,246,335.77 87,042,474.83 46,264,790.49 35,619,049.04 15,753,354.29 1,949,622.79 ਗ༟ପ Non-current assets 67,470,524.57 66,663,681.05 117,417,002.23 127,537,202.56 453,618,264.23 355,396,594.95 ࠇTotal assets 511,081,175.03 484,503,914.39 489,731,189.82 506,344,798.96 765,958,574.32 620,876,169.81 ව Current liabilities 250,218,971.54 249,824,440.98 288,639,948.81 319,557,958.66 254,299,217.85 417,866,306.63 ව Non-current liabilities 36,001,568.14 30,995,328.34 2,177,884.30 4,104,317.20 82,407,672.33 9,102,264.29 ࠇTotal liabilities 286,220,539.68 280,819,769.32 290,817,833.11 323,662,275.86 336,706,890.18 426,968,570.92 ᛆू Non-controlling interest – – – – – – ᛆू Total equity attributable to shareholders of the Company 224,860,635.35 203,684,145.07 198,913,356.71 182,682,523.10 429,251,684.14 194,843,634.83 ٙ ଋ༟ପ΅ᕘ Net assets calculated based on shareholding ratio 76,452,616.02 69,252,609.32 81,554,476.25 74,899,834.47 82,072,922.01 68,195,272.19 ሜԫධ Adjustments 8,080,673.17 8,080,673.18 20,207,962.08 22,342,923.22 4,842,679.77 7,987,569.03 Ñਠᚑ Goodwill – – – – – – ͊ྼତлᆗ Unrealized profit in internal transactions – – – – – – ÑՉ˼ Others 8,080,673.17 8,080,673.18 20,207,962.08 22,342,923.22 4,842,679.77 7,987,569.03 ٙ ࠽ Book value of the equity investment in the equity joint venture 84,533,289.19 77,333,282.50 101,762,438.33 97,242,757.69 86,915,601.78 76,182,841.22 ᑌᐄΆ ࠽ Fair value of an associate investment with a public quotation – – – – – – ᐄุϗɝ Operating revenue 233,768,786.11 233,263,632.88 185,905,076.87 173,528,774.27 165,748,000.46 200,067,267.68 ৌਕ൬͜ Financial expenses -753,749.72 -89,213.98 1,153,802.29 1,539,897.38 955,990.62 5,241,750.28 ൬͜ Income tax expense 4,225,745.26 2,154,724.64 1,605,313.83 1,117,534.29 969,642.07 -32,690.03 ଋлᆗ Net profit 28,141,768.36 21,220,409.32 8,825,420.11 8,566,442.98 22,271,888.93 4,481,700.11 ଋлᆗ Net profit attributable to shareholders of the controlling company 28,141,768.36 21,220,409.32 8,825,420.11 8,566,442.98 22,271,888.93 4,481,700.11 ၝΥϗूᐼᕘ Total comprehensive income 28,141,768.36 21,220,409.32 8,825,420.11 8,566,442.98 22,271,888.93 4,481,700.11 ͉ණྠᆽႩԸІΥᐄΆ л Recognized dividends from joint ventures – – – – – – Ը л Received dividends from joint ventures in the year – – – – – – VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 3. Interests in Joint Ventures or Associates (continued) (4) Key financial information of significant associates (continued)
Page 290
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 289 VIII. INTERESTS IN OTHER ENTITIES (CONTINUED) 3. Interests in Joint Ventures or Associates (continued) (5) No significant restrictions on the ability of the Group’s joint ventures or associates to transfer funds to the company. (6) No excess losses incurred by the Group’s joint ventures or associates. (7) The Group has no unconfirmed commitments related to joint venture investment. (8) The Group has no contingent liabilities related to investments in joint ventures or associates. 4. The Group has no significant joint operations. 5. The Group has no structured entities that are not included in the scope of consolidated financial statements. ɞe ᛆू ᚃ 3. ᛆू ᚃ (5) ᑌᐄΆุΣʮ̡ Փf (6) ᑌᐄΆุ͊೯͛ ൴ᕘᑦฦf (7) ͊ ፕf (8) ᑌᐄΆุҳ වf 4. Νᐄf 5. ٙ ഐʷ˴f
Page 291
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 290 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD IX. GOVERNMENT GRANTS 1. Government subsidies recognized at the end of the year based on the amount receivable None. 2. Debt items related to government subsidies 3. Government subsidies included in current profit and loss п 1. п ೌf 2. වධͦ 2024ϋ 12˜31˚ ͉ಂอᄣ ᕘ ɝᐄุ ᕘ ͉ಂᔷɝ ᕘ ͉ಂՉ˼ ᜊਗ 2025ϋ 6˜30˚ ၾ༟ପŊ ᗫ ͦ Accounting subjects 31 Dec 2024 New subsidy amount for this year Amount included in non-operating income this year Amount transferred to other income this year Other changes this year 30 Jun 2025 Related to assets/income ϗू Deferred income 181,296,051.51 10,974,022.68 – 20,929,062.04 -24,874,724.13 146,466,288.02 – ࠇTotal 181,296,051.51 10,974,022.68 – 20,929,062.04 -24,874,724.13 146,466,288.02 – 3. п 2025ϋ1-6˜ 2024ϋ1-6˜ ͦ Accounting subjects Jan-Jun 2025 Jan-Jun 2024 Չ˼ϗू Other income 40,196,633.51 74,891,627.97 ᐄุ̮ϗɝ Non-operating income 5,000.00 – ࠇTotal 40,201,633.51 74,891,627.97
Page 292
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 291 ɤe ᎈ ᎈd ࠬ ፄ ࠬ f͉ණྠ ᎈɹආБ၍ଣձ္છ˸ᆽ ᇍఖʘʫf 1. ഄ ᎈձ ᎈ࿁͉ ЭՑ௰Э˥ лू௰ ࠬ ͉ණྠ ו ̙ቦή ࠢ ᇍఖʘʫf X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS The Group faces various financial instrument risks in its daily activities, including market risk (foreign exchange risk and interest rate risk), credit risk and liquidity risk, etc. The risks associated with these financial instruments, as well as the risk management policies adopted by the Group to mitigate these risks, are described below. The management of this group manages and monitors these risk exposures to ensure that the above risks are controlled within a limited range. 1. Various risk management objectives and policies The goal of the Group’s risk management is to achieve an appropriate balance between risk and return, minimize the negative impact of risk on our group’s business performance, and maximize the interests of shareholders and other equity investors. Based on this risk management objective, the basic strategy of the Group’s risk management is to identify and analyze various risks faced by the Group, establish appropriate risk tolerance thresholds and carry out risk management, and timely and reliably supervise various risks to control them within a limited range.
Page 293
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 292 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ɤe ᎈ ᚃ 1. ഄ ᚃ (1) ᎈ 1) ᎈ ʕ ุਕ˸ɛ͏࿆ഐ ̮࿆ ̮࿆ʹ වʿ̮࿆ʹ ʩ e ᎈf͉ණྠ ப္છණྠ ව ࠦ Ϥ d ͉ණ ྠ̙ঐึ˸ᖦჃಂ̮ිΥ ˙όԸ f ಂ͉͋ණྠ͊ᖦОჃಂ f X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 1. Various risk management objectives and policies (continued) (1) Market risk 1) Foreign exchange risk The principal operations of the Group are located in China, and its primary business transactions are settled in RMB. However, the Group is exposed to foreign exchange risk arising from its recognized foreign currency assets and liabilities, as well as future foreign currency transactions (which are primarily denominated in USD and GBP). The Group’s headquarters finance department is responsible for monitoring the scale of foreign currency transactions, assets, and liabilities to minimize foreign exchange risk. To mitigate this risk, the Group may enter into forward foreign exchange contracts or currency swap agreements. As of the end of the reporting period, the Group had not entered into any forward foreign exchange contracts or currency swap agreements.
Page 294
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 293 X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 1. Various risk management objectives and policies (continued) (1) Market risk (continued) 1) Foreign exchange risk (continued) The amount of foreign currency financial assets and liabilities held by the Group converted into RMB are shown follows: ɤe ᎈ ᚃ 1. ഄ ᚃ (1) ᎈ ᚃ 1) ᎈ ᚃ ፄ༟ପ වұၑϓɛ͏ ᕘΐͪνɨj 2025ϋ6˜30˚ 30 Jun 2025 ࠇ ධͦ Items USD HKD GBP EUR FRF Total ፄ༟ପ Foreign currency financial assets ږCash and cash equivalents 821,882.51 79,850.34 135,174,370.51 – – 136,076,103.36 Ꮠϗሪಛ Accounts receivable 10,652,972.22 – 44,177,219.55 – – 54,830,191.77 Չ˼Ꮠϗಛ Other receivables – 4,291.14 15,147,033.94 – – 15,151,325.08 ࠇTotal 11,474,854.73 84,141.48 194,498,624.00 – – 206,057,620.21 ව Foreign currency financial liabilities ಛ Short-term loans – – 347,177,822.45 – – 347,177,822.45 Ꮠ˹ୃኽ Notes payable – – – – – – Ꮠ˹੮ಛ Accounts payable 310,544.16 – 41,883,501.81 – – 42,194,045.97 Չ˼Ꮠ˹ಛ Other payables – – 3,417,172.44 – – 3,417,172.44 ව Non-current liabilities due within one year – – 88,470,000.00 – – 88,470,000.00 ಛ Long-term loans – – – – – – ࠇTotal 310,544.16 – 480,948,496.70 – – 481,259,040.86
Page 295
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 294 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 1. Various risk management objectives and policies (continued) (1) Market risk (continued) 1) Foreign exchange risk (continued) (Continued) ɤe ᎈ ᚃ 1. ഄ ᚃ (1) ᎈ ᚃ 1) ᎈ ᚃ ڌ 2024ϋ12˜31˚ 31 Dec 2024 ࠇ ධͦ Items USD HKD GBP EUR FRF Total ፄ༟ପ Foreign currency financial assets ږCash and cash equivalents 2,650,577.03 81,079.97 100,141,654.68 – – 102,873,311.68 Ꮠϗሪಛ Accounts receivable 3,122,631.74 – 31,904,706.36 – – 35,027,338.10 Չ˼Ꮠϗಛ Other receivables – 4,357.44 14,550,954.60 – – 14,555,312.04 ࠇTotal 5,773,208.77 85,437.41 146,597,315.64 – – 152,455,961.82 ව Foreign currency financial liabilities ಛ Short-term loans – – 278,215,341.54 – – 278,215,341.54 Ꮠ˹ୃኽ Notes payable – – – – – – Ꮠ˹੮ಛ Accounts payable 311,658.55 – 39,185,889.67 – – 39,497,548.22 Չ˼Ꮠ˹ಛ Other payables – – 3,448,221.30 – – 3,448,221.30 ව Non-current liabilities due within one year – – 86,226,750.00 – – 86,226,750.00 ಛ Long-term loans – – – – – – ࠇTotal 311,658.55 – 407,076,202.51 – – 407,387,861.06
Page 296
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 295 X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 1. Various risk management objectives and policies (continued) (1) Market risk (continued) 2) Interest rate risk The Group’s interest rate risk arises from interest bearing bank deposits and borrowings. Floating rates on bank deposits and borrowings expose the Group to cash flow interest rate risk. Fixed rates on bank deposits and borrowings expose the Group to fair value interest rate risk. The Group determines the proportion of its fixed and floating rate contracts depending on the current market conditions. The Group’s bank deposits and borrowings at floating rates were denominated in RMB, USD, EUR, HKD, and GBP. The Group currently does not hedge its exposure to interest rate risk. The Group’s bank borrowings at floating rates and at fixed rates are as follows: ɤe ᎈ ᚃ 1. ഄ ᚃ (1) ᎈ ᚃ 2) ᎈ ვ ओਗлଟ ಛ˿͉ ᎈf ვБπಛ աʮʪᄆ ኽତ ʿओਗ лଟΥΝˢԷ f ͉ණྠ˸ओ ࠾ ʩeᆄʩeಥ ࣛ ᎈf ಛʿ ಛΐజνɨj 30 Jun 2025 31 Dec 2024 ሯ Nature of borrowings 2025ϋ6˜30˚ 2024ϋ12˜31˚ (As restated) ಛ Borrowings at floating rates 1,590,589,842.74 1,865,041,652.51 ಛ Borrowings at fixed rates 306,899,763.18 336,176,869.62 ࠇTotal 1,897,489,605.92 2,201,218,522.13
Page 297
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 296 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 1. Various risk management objectives and policies (continued) (2) Credit risk The Group manages the credit risk by portfolio. Credit risk mainly arises from cash and cash equivalents, notes receivable, accounts receivable, accounts receivable financing, other receivables, contract assets and long-term receivables, etc. To reduce credit risk, the Group has established a dedicated department to determine credit limits, conduct credit approvals, and implement other monitoring procedures to ensure necessary measures are taken to recover expired debts. In addition, the Group reviews the recovery status of each individual receivable on each balance sheet date to ensure that sufficient bad debt provisions are made for uncollectible amounts. Therefore, the management of the Group believes that the credit risk undertaken by the Group has been significantly reduced. The fluid capital of the Group is stored in banks with higher credit ratings, so the credit risk of fluid capital is relatively low. ɤe ᎈ ᚃ 1. ഄ ᚃ (2) ᎈ ଡ଼ΥʱᗳආБ ࿆༟ eᏐϗୃኽeᏐϗሪಛeᏐϗಛ ධፄ༟eՉ˼ᏐϗಛeΥΝ༟ପe ಂᏐϗಛഃf ژ ͜ᄲ મ Ϋϗཀಂවᛆ f Ϥ ˚ᄲ d˸ ̂ʱ ᕸሪ௪fΪϤd͉ණྠ၍ଣᄴ ᎈʊ Эf ͜൙ ͜ ᎈ༰Эf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 297 X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 1. Various risk management objectives and policies (continued) (2) Credit risk (continued) The Group has adopted necessary policies to ensure that all sales customers have a good credit record. Except for the top five accounts receivable and contract asset amounts, the Group has no other significant credit concentration risks. The total amount of the top five accounts receivable and contract assets of the Group is RMB1,603,139,249.68, accounting for 25.93% of the total accounts receivable and contract assets of the Group. 1) Criteria for judging significant Increase in credit risk On each balance sheet date, the Group determines whether the credit risk of financial instruments has significantly increased since initial recognition by comparing the probability of default within the expected lifespan determined at initial recognition and the probability of default within the expected lifespan determined at the balance sheet date. However, if the Group determines that financial instruments only have a lower credit risk on the balance sheet date, it can be assumed that the credit risk of the financial instrument has not significantly increased since initial recognition. ɤe ᎈ ᚃ 1. ഄ ᚃ (2) ᎈ ᚃ הڭ ͜া ᕘ ڦ ᎈ f ͉ණྠᏐϗሪಛʿ j 1,603,139,249.68ʩ d Ц͉ණྠᏐ ٙ25.93%f 1) ᎈᜑഹᄣ̋кᓙᅺ ˚d ᆽ πᚃಂʫ ฿ଟձ༈ʈՈί༟ପ πᚃ ږ֛ ᆽႩ d ν ፄʈՈί༟ ڦٙ ፄ ᆽႩ Ԩ͊ᜑഹᄣ̋f
Page 299
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 298 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 1. Various risk management objectives and policies (continued) (2) Credit risk (continued) 1) Criteria for judging significant Increase in credit risk (continued) The main criteria for judging a significant increase in credit risk by the Group are significant changes in one or more of the following indicators: the operating environment in which the debtor operates, internal and external credit ratings, and significant adverse changes in actual or expected operating results. 2) Definition of credit impairment assets that have occurred When one or more events that have an adverse impact on the expected future cash flows of a financial asset occur, the financial asset becomes a financial asset that has experienced credit impairment. The main criteria for determining credit impairment in the Group are: significant financial difficulties of the issuer or debtor; the debtor violates the contract, such as paying interest or principal in default or overdue; due to economic or contractual considerations related to the financial difficulties of the debtor, the Group will not make concessions to the debtor in any other circumstances; the debtor is likely to go bankrupt or undergo other financial restructuring; the financial difficulties of the issuer or debtor have led to the disappearance of the active market for the financial asset. ɤe ᎈ ᚃ 1. ഄ ᚃ (2) ᎈ ᚃ 1) ᎈᜑഹᄣ̋кᓙᅺ ᚃ ᎈᜑഹᄣ אࡈ ᅺ೯͛ᜑഹᜊʷ j ව ᐄᐑྤ e ʫ̮ ཫಂ ɽʔлᜊʷഃf 2 ່ ږ א ፄ༟ ږٙ࠽ ፄ༟ପ f ͉ණྠкᓙʊ೯͛ j ೯ ɽৌਕ Ѣᗭ i වਕɛ༼ˀΥΝ d ν གྷಂ ၾවਕɛৌ ΥΝϽ ᅇ d ഗʚවਕɛίОՉ˼ ᜫӉ i ආБՉ වਕ ፄ༟ପ ᚔ̹ఙऊ̰f
Page 300
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 299 X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 1. Various risk management objectives and policies (continued) (2) Credit risk (continued) 3) Credit risk exposure As of June 30, 2025, the maximum credit risk exposure that may cause financial losses to the Group mainly comes from the losses incurred by the Group’s financial assets due to the failure of the other party to fulfill its obligations under the contract, as well as the financial guarantees assumed by the Group. The credit risk exposure of the Group includes on balance sheet items and off balance sheet items related to credit risk. On the balance sheet date, the book value of the Group’s financial assets represents its maximum credit risk exposure. The maximum credit risk exposure outside the balance sheet (excluding available collateral or other credit enhancements) is as follows: ɤe ᎈ ᚃ 1. ഄ ᚃ (2) ᎈ ᚃ 3 ᎈɹ 2025ϋ6˜30˚ d ̙ঐˏৎ ͜ ΥΝ̤ ͉ ฦ̰˸ f ܼ ڌ ̮ධͦ f ί༟ ፄ༟ Չ௰ɽ ڌ ᎈɹઋ אيڭ ͜ᄣॴ νɨj 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 ፕ Credit Commitment 507,629,743.43 754,024,529.54
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 300 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 1. Various risk management objectives and policies (continued) (2) Credit risk (continued) (3) Liquidity risk Liquidity risk refers to the risk that the Group is unable to fulfill its financial obligations on the due date. The method of managing liquidity risk in this group is to ensure sufficient liquidity to fulfill maturing debts, without causing unacceptable losses or damaging the reputation of the enterprise. The Group regularly analyzes its debt structure and maturity to ensure sufficient funding. The management of this group monitors the use of bank loans and ensures compliance with loan agreements. At the same time, negotiate financing with financial institutions to maintain a certain credit limit and reduce liquidity risk. ɤe ᎈ ᚃ 1. ഄ ᚃ (2) ᎈ ᚃ (3) ᎈ ͉ණྠίՑಂ˚ ᎈf ˙ ਗ ԸᄵБՑಂවਕ d ϾʔЇ ࿁ f ͉ණྠ d f ͉ණ Դ͜ ࠾ ፄዚආ ֛ٙ ᎈf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 301 X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 1. Various risk management objectives and policies (continued) (2) Credit risk (continued) (3) Liquidity risk (continued) The various financial assets and financial liabilities of the Group are presented as undiscounted contract cash flows at maturity as follows: ɤe ᎈ ᚃ 1. ഄ ᚃ (2) ᎈ ᚃ (3) ᎈ ᚃ ፄ ݴږ Ցಂ˚ΐͪνɨj 2025ϋ6˜30˚ 30 Jun 2025 ࠇ ධͦ Items Within 1 year 1-2 years 2-5 years Over 5 years Total ፄ༟ପ Financial assets ږMonetary funds 2,427,859,645.45 – – – 2,427,859,645.45 ፄ༟ପ Trading financial assets 631,346,485.52 – – – 631,346,485.52 Ꮠϗୃኽ Notes receivable 176,026,402.67 – – – 176,026,402.67 Ꮠϗሪಛ Accounts receivable 5,093,754,855.16 – – – 5,093,754,855.16 Ꮠϗಛධፄ༟ Receivable financing 554,074,283.18 – – – 554,074,283.18 Չ˼Ꮠϗಛ Other receivables 502,784,303.98 – – – 502,784,303.98 ਗ༟ପ Non-current assets due within one year 18,330,399.68 – – – 18,330,399.68 ൲ಛʿྦಛ Loans and advances granted 480,981,747.21 301,200,666.66 195,130,000.00 – 977,312,413.87 Չ˼වᛆҳ༟ Other debt investments 834,410.96 846,000.00 2,540,317.81 32,517,139.73 36,737,868.50 Չ˼ᛆूʈՈҳ༟ Other equity instruments investment – – – 177,599,858.68 177,599,858.68 ࠇTotal 9,885,992,533.81 302,046,666.66 197,670,317.81 210,116,998.41 10,595,826,516.69 ව Financial liabilities ಛ Short-term loans 585,804,234.53 – – – 585,804,234.53 ׳Receipt of deposits and deposits from other banks 1,109,114,982.10 – – – 1,109,114,982.10 Ꮠ˹ୃኽ Notes payable 1,618,083,927.18 – – – 1,618,083,927.18 Ꮠ˹੮ಛ Accounts payable 3,077,235,713.26 – – – 3,077,235,713.26 Չ˼Ꮠ˹ಛ Other payables 431,207,686.70 – – – 431,207,686.70 ව Non-current liabilities due within one year 970,926,739.01 – – – 970,926,739.01 ಛ Long-term loans – 602,830,780.00 64,114,413.56 4,771,120.00 671,716,313.56 ව Lease liabilities – 25,621,410.52 125,146,833.98 109,015,752.07 259,783,996.57 ࠇTotal 7,792,373,282.78 628,452,190.52 189,261,247.54 113,786,872.07 8,723,873,592.91
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 302 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 1. Various risk management objectives and policies (continued) (2) Credit risk (continued) (3) Liquidity risk (continued) (Continued) ɤe ᎈ ᚃ 1. ഄ ᚃ (2) ᎈ ᚃ (3) ᎈ ᚃ ڌ 2024ϋ12˜31˚ 31 Dec 2024 (As restated) ࠇ ධͦ Items Within 1 year 1-2 years 2-5 years Over 5 years Total ፄ༟ପ Financial assets – – – – – ږCash and cash equivalents 2,743,274,540.21 – – – 2,743,274,540.21 ፄ༟ପ Trading financial assets 571,813,953.57 – – – 571,813,953.57 Ꮠϗୃኽ Notes receivable 216,389,139.05 – – – 216,389,139.05 Ꮠϗሪಛ Accounts receivable 4,119,184,963.31 – – – 4,119,184,963.31 Ꮠϗಛධፄ༟ Receivable financing 638,910,758.89 – – – 638,910,758.89 Չ˼Ꮠϗಛ Other receivables 490,315,670.13 – – – 490,315,670.13 ਗ༟ପ Non-current assets due within one year 17,998,806.45 – – – 17,998,806.45 ൲ಛʿྦಛ Loans and advances 410,749,234.37 222,821,819.45 303,183,577.77 – 936,754,631.59 ಂᏐϗಛ Long-term receivables – 9,068,423.23 – – 9,068,423.23 Չ˼ᛆूʈՈҳ༟ Other equity instruments investment – – – 164,319,503.68 164,319,503.68 ࠇTotal 9,208,637,065.98 231,890,242.68 303,183,577.77 164,319,503.68 9,908,030,390.11 ව Financial liabilities – – – – – ಛ Short-term loans 425,192,474.21 – – – 425,192,474.21 ׳Receipt of deposits and deposits from other banks 817,201,985.75 – – – 817,201,985.75 Ꮠ˹ୃኽ Notes payable 1,451,609,682.01 – – – 1,451,609,682.01 Ꮠ˹੮ಛ Accounts payable 2,729,113,660.66 – – – 2,729,113,660.66 Չ˼Ꮠ˹ಛ Other payables 350,885,266.90 – – – 350,885,266.90 ව Non-current liabilities due within one year 723,590,380.09 – – – 723,590,380.09 ಛ Long-term loans – 1,084,823,756.72 14,379,600.00 7,010,400.00 1,106,213,756.72 ව Lease liabilities – 9,063,472.79 111,469,169.75 113,130,153.97 233,662,796.51 ࠇTotal 6,497,593,449.62 1,093,887,229.51 125,848,769.75 120,140,553.97 7,837,470,002.85
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 303 X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 2. Sensitivity analysis The Group applies sensitivity to analyze the rationality of technical risk variables and the effect of possible changes on the current profit and loss or shareholders’ equity. As any risk variable seldom varies independently, and correlation among variables could affect significantly the ultimate amount of a certain risk variable. Therefore, following tests are carrying out on the assumed condition that each variable changes independently. (1) Sensitivity analysis of foreign exchange risk The hypothesis of sensibility analysis of foreign exchange risk: all the foreign operations and investments and cash flows are highly effective. The influence of reasonable movements of exchange rates on the current net profit and loss and equity under above assumptions with other variables as a constant is listed as following: ɤe ᎈ ᚃ 2. ؓ ᎈᜊ ؇ٰא ᎈᜊ ೯͛ᜊʷdϾᜊඎʘගπ ௰ ʫ ઋ f (1) ؓ Ϟྤ ࢁ f ਿᓾɪdίՉ̴ᜊඎ Υ ܝ ᅂᚤνɨj 2025ϋ6˜30˚ 2024ϋ12˜31˚ 30 Jun 2025 31 Dec 2024 ධͦ ිଟᜊਗᅂᚤ Items Change in exchange rate Effect on net profit Effect on owners’ equity Effect on net profit Effect on owners’ equity ʩ ිଟɪပ 5% 558,215.53 558,215.53 273,077.51 273,077.51 USD Exchange rate up 5% ʩ ිଟɨൻ 5% -558,215.53 -558,215.53 -273,077.51 -273,077.51 USD Exchange rate down 5% ᕀ ිଟɪပ 5% -14,322,493.64 -14,322,493.64 -13,023,944.34 -13,023,944.34 GBP Exchange rate up 5% ᕀ ිଟɨൻ 5% 14,322,493.64 14,322,493.64 13,023,944.34 13,023,944.34 GBP Exchange rate down 5%
Page 305
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 304 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 2. Sensitivity analysis (continued) (2) Sensitivity analysis of interest rate risk The sensitivity analysis of interest rate risk is based on the following assumptions: The fluctuation of market interest rate has an impact on interest income or expense of variable interest- rate financial instrument; For the fixed interest-rate financial instrument measured at fair value, the changes of market interest rate can only affect its interest income or expense; The changes in fair value of the derivative financial instrument and other financial assets and liabilities are calculated on discounted cash flow method, based on the market interest rate at the balance sheet date. ɤe ᎈ ᚃ 2. ᚃ (2) ؓ ண j ፄ ൬͜i лଟ ፄʈՈd̹ఙлଟᜊʷසසᅂᚤ ൬͜i ږ ፄʈՈʿՉ ᜊʷf
Page 306
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 305 X . RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS (CONTINUED) 2. Sensitivity analysis (continued) (2) Sensitivity analysis of interest rate risk (continued) The after-tax influence of reasonable movements of interest rate on the current net profit and loss and equity under above assumptions with other variables as a constant is listed as following: XI. DISCLOSURE OF FAIR VALUE 1. Fair value of assets and liabilities measured at fair value at the end of this period: Amounts of assets and liabilities measured at fair value at the end of this period and the corresponding levels of fair value measurement are listed as following: ɤe ᎈ ᚃ 2. ᚃ (2) ᚃ ਿᓾɪdίՉ̴ᜊඎ Υ ܝ ᅂᚤνɨj 2025ϋ1-6˜ 2024ϋ1-6˜ Jan-Jun 2025 Jan-Jun 2024 ධͦ лଟᜊਗᅂᚤ Items Change in interest rate Effect on net profit Effect on owners’ equity Effect on net profit Effect on owners’ equity ಛ ɪပ1% -618,733.23 -618,733.23 -547,191.06 -547,191.06 Borrowings with floating interest rate Increase by 1% ࠥ1% 618,733.23 618,733.23 547,191.06 547,191.06 Borrowings with floating interest rate Decrease by 1% ɤɓe ࠇ 1. ಂ͋ ࠽ ࠋ ඎᄴϣ ࠇ ධͦ Items Level 1 fair value measurement Level 2 fair value measurement Level 3 fair value measurement Total ፄ༟ପ Financial assets held for sale 531,732,622.72 99,613,862.80 – 631,346,485.52 ୃҳ༟ Including: Stock investment 2,641,437.94 – – 2,641,437.94 ږMoney market fund 529,091,184.78 – – 529,091,184.78 වՎ Debenture – 99,613,862.80 – 99,613,862.80 Ꮠϗಛධፄ༟ Receivable financing – – 552,279,765.06 552,279,765.06 Չ˼ᛆूʈՈҳ༟ Other equity instruments investment 176,172,975.00 – 1,426,883.68 177,599,858.68 Չ˼වᛆҳ༟ Other debt investments – 32,422,242.33 – 32,422,242.33 ࠇTotal 707,905,597.72 132,036,105.13 553,706,648.74 1,393,648,351.59
Page 307
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 306 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XI. DISCLOSURE OF FAIR VALUE (CONTINUED) 1. Fair value of assets and liabilities measured at fair value at the end of this period: (continued) The above table shows the fair value information and the level of fair value measurement of the group’s assets and liabilities measured at fair value continuously and non-continuously on each balance sheet date at the end of the reporting period. The level of fair value measurement results depends on the input value of the lowest level which is of great significance to fair value measurement as a whole. The three levels of input values are defined as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2: The direct or indirect observable inputs, which fail to meet level 1, for related assets or liabilities. Level 3: Fair value measured using significant unobservable inputs. ɤɓe ᚃ 1. ಂ͋ ᚃ ˚ ༟ପձ ʿՉ ඎഐ ඎ f ່νɨj ٙ ᚔ̹ఙɪ͊ሜ జᄆi ̮ ፩ i ʔ f
Page 308
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 307 XI. DISCLOSURE OF FAIR VALUE (CONTINUED) 2. Basis for determining the market value of continuous and non-continuous first-level fair value measurement projects The fair value of financial instruments traded in active markets is determined based on market quotes at the balance sheet date. When a quote is available in real time and on a regular basis from a stock exchange, dealer, broker, industry insider, pricing service provider, or regulator, and the quote represents an actual and regular market transaction quote based on fair trade principles, the market is considered Active market. The quoted market price of financial assets held by the Group is the current bid price. These financial tools are listed on the first level. The instruments included in the first level at the end of this period were classified as stock investments in tradable financial assets. 3. On-going and non-on-going second-level fair value measurement projects, qualitative and quantitative information on valuation techniques and important parameters used The fair value of financial instruments without active markets is determined by using valuation techniques. Valuation techniques make the best use of available observable market data and rely as little as possible on specific estimates from entities. When all significant data required to determine the fair value of a financial instrument is observable, the financial instrument is listed in the second level. At the end of this period, the group listed the financial instruments in the second level. ɤɓe ᚃ 2. ඎ Աኽ ʮʪᄆ f eʹ א٫ ʮ̻ జ ᚔ̹ఙf͉ණྠ ତБ൯ᆵ ፄʈՈΐͪίୋɓᄴॴfಂ ୃҳ༟f 3. ඎ ٙ ࢹڦ л Ҧஔးඎл̙͜ ̙ᝈ̹ఙᅰኽdးඎˇԱ፠˴ ٙ ̙ᝈ ፄʈՈΐɝୋɚᄴॴf ፄʈՈf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 308 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XI. DISCLOSURE OF FAIR VALUE (CONTINUED) 4. On-going and non-on-going third-level fair value measurement projects, qualitative and quantitative information on valuation techniques and important parameters used The financial instruments included in the third level are mainly unlisted equity investments and receivables financing held by the Group. The Group use valuation techniques to determine their fair value for major investments. The valuation models used are mainly discounted cash flow models and the analogy of listed companies in the same industry. The input values of valuation techniques mainly include expected income, Expected return maturity, weighted average cost of capital, illiquidity discount rate, etc. 5. The Group’s continuous third-level fair value measurement project has no adjustment information between the beginning and end of the year and the sensitivity analysis of unobservable parameters. 6. No conversion happened between different levels during this period among Group’ s continuous fair value measurement items. 7. No changes occurred in valuation technology during this period. 8. The Group has no assets and liabilities that are not measured at fair value but disclosed at fair value. ɤɓe ᚃ 4. ඎ ٙ ࢹڦ ͉ණྠ ɽҳ Դ ۨ ٙ ཫಂϗूeཫಂϗूಂ ұ ϔଟഃf 5. ඎ ሜ ؓ 6. ඎධͦd͉ ᔷ౬ 7. Ҧஔᜊһ 8. ඎШ˸ʮʪ ව
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 309 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (I) RELATED PARTIES 1. Controlling Shareholder and Ultimate-controlling Party (1) Controlling Shareholder and Ultimate-controlling Party Note 1: CQMEHG holds 54.74% of the Company’s shares, of which the proportion of restricted shares in the Company’s total equity is 52.22%, and the overseas listed H shares of the Company’s total equity is 2.52%. Note 2: The ultimate controlling party of the Group is Chongqing Yufu Holdings Group Co., Ltd. (2) Registered capital of the controlling shareholder and the change (Unit: RMB’0000) ɤɚe ɓ ڷ 1. ʿ௰છՓ˙ (1) ʿ௰છՓ˙ ሯ ൗ̅༟͉ ຬʩ ٰܵٙ ˢԷ(%) ٙ ӔᛆˢԷ (%) Controlling shareholder Place of Registration Business nature Registered capital (RMB’0000) Shareholding proportion (%) Voting rights (%) ݬ60ٙ Ϟ༟ପආБᐄ၍ଣ Chongqing Machinery & Electronics Holding (Group) Co., Ltd. No. 60 Middle Section of Huangshan Avenue, New North Zone, Chonqing Managing state-owned assets authorized by the Chongqing SASAC 368,604.42 54.74 54.74 ൗ1j ණྠ ʮ މ 54.74%ٰ މ 52.22%Ϟྤ̮ɪ̹Hٰ މ 2.52%f ൗ2j ᅅ ʮ̡f (2) ൗ̅༟͉ʿՉᜊ ʷ ఊЗjຬʩ 2024ϋ12˜31˚ ͉ಂᄣ̋ ͉ಂಯˇ 2025ϋ6˜30˚ ؇ٰٰControlling shareholder 31 Dec 2024 Increase this year Decrease this year 30 Jun 2025 ණྠ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd. 204,288.50 164,315.92 – 368,604.42
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 310 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (I) RELATED PARTIES (continued) 1. Controlling Shareholder and Ultimate-controlling Party (continued) ( 3 ) Shareholdings attributable to controlling shareholders (Unit: RMB’0000) Note: The shares held by the controlling shareholders include 1,924.2252 million shares of restricted shares and 92.67 million shares of H shares listed overseas. 2. Subsidiaries Please refer to “VIII.1. (1) Group structure” for information about subsidiaries. ɤɚe ᚃ ɓ ᚃ 1. ʿ௰છՓ˙ ᚃ (3) א ᛆूʿՉᜊʷ ఊЗjຬʩ ᅰˢԷ (%) Number of shareholding shares Shareholding proportion (%) 2025ϋ6˜30˚ 2024ϋ12˜31˚ 2025ϋ6˜30˚ ˢԷ 2024ϋ12˜31˚ ˢԷ ؇ٰٰControlling shareholder 30 Jun 2025 31 Dec 2024 Proportion as of June 30, 2025 Proportion as of December 31, 2024 ණྠ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd. 201,689.52 201,689.52 54.74 54.74 ൗj ࠢ ٰ192,422.52ʿྤ̮ ɪ̹Hٰ9,267.00ຬ f 2. ɿʮ̡ ൗ ɞ e1.(1) f
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 311 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (I) RELATED PARTIES (continued) 3. Joint Ventures and Associates Please refer to “VIII.3. (1) Significant joint ventures or associates” for information about joint ventures and associates. The other joint ventures or associates that entered into transactions in current or previous year with the Group are addressed below. ɤɚe ᚃ ɓ ᚃ 3. ΥᐄΆุʿᑌᐄΆุ ᑌᐄΆุ༉ ൗ ɞ e3.(1)ΥᐄΆ ܓ ɪϋ Җϓ νɨj ڷ Joint venture or associates Relationship with the Group ʮ̡ ΥᐄΆุ Chongqing Cummins Engine Co., Ltd. Joint venture ʮ̡ ᑌᐄΆุ Knorr-Bremse Systems for Commercial Vehicles (Chongqing) Ltd. Associate ʮ̡ ᑌᐄΆุ Chongqing Hongyan Fangda Automobile Suspension Co., Ltd. Associate பʮ̡ ᑌᐄΆุ Chongqing Jiangbei Machinery Co., Ltd. Associate பʮ̡ பʮ̡ ɿʮ̡ʘᑌᐄʮ̡ Chongqing Arrows Auto Transmission Parts Co., Ltd (previously called Chongqing Shenjian AUTOMOBILE Transmission PARTS Co., Ltd.) Associate of subsidiary பʮ̡ ᑌᐄΆุ Minqin Guoneng Wind Power Co., Ltd Associate ʮ̡ ᑌᐄΆุ Chongqing Shimade Intelligent Manufacturing Co., Ltd. Associate
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 312 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (I) RELATED PARTIES (continued) 4. Other Related Parties ɤɚe ᚃ ɓ ᚃ 4. Չ˼ᗫᑌ˙ ڷ Other related parties Relationship with the Group ʮ̡ աΝɓ͎ʮ̡છՓ Qijiang Gear Transmission Co., Ltd. Controlled by the same parent company ʮ̡ᕐΆุ၍ଣʱʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Electromechanical Holding Group Asset Management Co., Ltd. Shuangqiao Enterprise Management Branch Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Electromechanical Holding Group Electromechanical Engineering Technology Co., Ltd. Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Electromechanical Holding Group Casting Co., Ltd. Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Electromechanical Holding Group Asset Management Co., Ltd. Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Military Industry Group Co., Ltd. Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Crane Factory Co., Ltd Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing General Machinery Industry Co., Ltd Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Changjiang Bearing Co., Ltd Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Zhongbian Electric Appliance Co., Ltd Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Changjiang Bearing Industry Co., Ltd Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Heavy Duty Truck Group Special Vehicle Co., Ltd Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Electromechanical Holding Group Xinbo Investment Management Co., Ltd Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Gongtou Electromechanical Parts Industry Group Co., Ltd Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Standard Parts Industry Co., Ltd Controlled by the same parent company பʮ̡ቖਯʱʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Standard Parts Industry Co., Ltd. Sales Branch Controlled by the same parent company ᅅᅺᅀʱʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Standard Parts Industry Co., Ltd. Chongqing Standard Parts Factory Branch Controlled by the same parent company
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 313 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (I) RELATED PARTIES (continued) 4. Other Related Parties (continued) ڷ Other related parties Relationship with the Group ҷՓʱʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Standard Parts Industry Co., Ltd. Huazhan Metal Materials Restructuring Branch Controlled by the same parent company ᅺᅀʱʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Standard Parts Industry Co., Ltd. Chongqing High Strength Standard Parts Factory Branch Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Automotive Standard Parts Factory Co., Ltd Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Qijiang Qichi Xinxin Welfare Co., Ltd Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Southwest Computer Co., Ltd Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Ernst Long General Aviation Technology Research Institute Co., Ltd Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Jidian Property Management Co., Ltd Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Jian’an Instrument Co., Ltd Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Juntong Automobile Co., Ltd Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Qichi Automotive Parts Co., Ltd Controlled by the same parent company பʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Heavy Duty Truck Group Hongyan Automotive Spring Co., Ltd Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Rail Transit Industry Investment Co., Ltd Controlled by the same parent company ᅅᅺʈุ ණྠ ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Standard Parts Industry (Group) Co., Ltd Controlled by the same parent company Άุ၍ଣʱʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Electromechanical Holding Group Asset Management Co., Ltd. Nan’an Enterprise Management Branch Controlled by the same parent company ʮ̡➑ϪΆุ၍ଣʱʮ̡ * աΝɓ͎ʮ̡છՓ Chongqing Electromechanical Holding Group Asset Management Co., Ltd. Qijiang Enterprise Management Branch Controlled by the same parent company ʮ̡ * աΝɓ͎ʮ̡છՓ Chongqing Qichi Gear Research Institute Co., Ltd Controlled by the same parent company ᅅᅺᅀ աΝɓ͎ʮ̡છՓ Chongqing Standard Parts Factory Controlled by the same parent company ᅺᅀ աΝɓ͎ʮ̡છՓ Chongqing High Strength Standard Parts Factory Controlled by the same parent company ɤɚe ᚃ ɓ ᚃ 4. Չ˼ᗫᑌ˙ ᚃ
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 314 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ɤɚe ᚃ ɓ ᚃ 4. Չ˼ᗫᑌ˙ ᚃ ڷ Other related parties Relationship with the Group ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Zhuoyue Industrial Development Co., Ltd. Controlled by the same parent company Ҧ௴อʱʮ̡ աΝɓ͎ʮ̡છՓ Science and Technology Innovation Branch of Chongqing Machinery & Electronics Holdings (Group) Company Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Machinery & Electronics Holdings Power Technology Co., Ltd. Controlled by the same parent company ʮ̡ՇϪΆุ၍ଣʱʮ̡ աΝɓ͎ʮ̡છՓ Liangjiang Enterprise Management Branch of Chongqing Machinery & Electronics Holdings Asset Management Co., Ltd. Controlled by the same parent company Ҧʱʮ̡ աΝɓ͎ʮ̡છՓ General Energy Technology Branch of Chongqing Machinery & Electronics Holdings Asset Management Co., Ltd. Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Juntong Automobile Co., Ltd. Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Longjing Paper Co., Ltd. Controlled by the same parent company ණྠ ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Light Industry & Textile Holdings (Group) Company Controlled by the same parent company ᅅӛԓᅺᅀʱʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Automobile Standard Parts Factory Branch of Chongqing Standard Parts Industry Co., Ltd. Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Dove Brand Electrical Materials Co., Ltd. Controlled by the same parent company ʮ̡ աΝɓ͎ʮ̡છՓ Chongqing Jiangxia Real Estate Co., Ltd. Controlled by the same parent company ᙮ᑌᐄʮ̡ Chongqing Jiaoyun Electromechanical Logistics Co., Ltd Affiliated companies of the parent company ᙮ᑌᐄʮ̡ Chongqing Special Motor Factory Co., Ltd Affiliated companies of the parent company ᙮ᑌᐄʮ̡ Chongqing General Aviation Industry Group Co., Ltd Affiliated companies of the parent company ᙮ᑌᐄʮ̡ Chongqing Anji Hongyan Logistics Co., Ltd Affiliated companies of the parent company ᙮ᑌᐄʮ̡ Chongqing Robotics Co., Ltd Affiliated companies of the parent company ᙮ᑌᐄʮ̡ Chongqing General Aviation Co., Ltd Affiliated companies of the parent company XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (I) RELATED PARTIES (continued) 4. Other Related Parties (continued)
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 315 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (I) RELATED PARTIES (continued) 4. Other Related Parties (continued) (II) RELATED PARTY TRANSACTIONS 1. Procurement of goods ڷ Other related parties Relationship with the Group ᙮ᑌᐄʮ̡ Chongqing General Aircraft Industry Co., Ltd Affiliated companies of the parent company ᙮ᑌᐄʮ̡ Chongqing Construction Engineering Mechanical and Electrical Installation Engineering Co., Ltd Affiliated companies of the parent company ᙮ᑌᐄʮ̡ Chongqing General Aviation Industry Group Avionics System Co., Ltd Affiliated companies of the parent company ɚ 1e ۜ ࢙2025ϋ1-6˜ 2024ϋ1-6˜ Related parties Transactions Jan-Jun 2025 Jan-Jun 2024 ي Southwest Computer Co., Ltd. Purchasing goods 343,816.54 7,077,358.51 ي Chongqing Anji Hongyan Logistics Co., Ltd. Purchasing goods 2,622,048.65 3,521,988.54 ي Chongqing Zhongbian Electric Co., Ltd. Purchasing goods 2,684,579.68 – ي Chongqing Zhuoyue Industrial Development Co., Ltd. Purchasing goods 22,003,727.44 – ΥᐄŊᑌᐄ ࠇ ي Subtotal of other insignificant joint ventures/associates Purchasing goods 1,051,548.67 – աΝɓ͎ʮ̡ ࠇ ي Subtotal of other insignificant enterprises controlled by the same parent company Purchasing goods 2,016,181.60 3,273,651.47 ࠇTotal 30,721,902.58 13,872,998.52 ɤɚe ᚃ ɓ ᚃ 4. Չ˼ᗫᑌ˙ ᚃ
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 316 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (II) RELATED PARTY TRANSACTIONS (continued) 2. Accepting labor or services ɤɚe ᚃ ɚ ᚃ 2e ਕ ࢙2025ϋ1-6˜ 2024ϋ1-6˜ Related parties Transactions Jan-Jun 2025 Jan-Jun 2024 ණྠ༟ପ၍ଣ ʮ̡ ਕe௶ਕ Chongqing Machinery & Electronics Holdings Group Asset Management Co., Ltd. Accepting labor or services – 13,170,823.52 ਕe௶ਕ Chongqing Machinery & Electronics Holding (Group) Co., Ltd. Accepting labor or services – 4,333,775.37 ΥᐄŊᑌᐄ ࠇ ਕe௶ਕ Subtotal of other unimportant joint ventures and associates Accepting labor or services – 4,551,495.56 աΝɓ͎ʮ̡ ࠇ ਕe௶ਕ Subtotal of other unimportant enterprises controlled by the same parent company Accepting labor or services 306,625.39 1,583,246.17 ࠇTotal 306,625.39 23,639,340.62
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 317 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (II) RELATED PARTY TRANSACTIONS (continued) 3. Sale of goods ɤɚe ᚃ ɚ ᚃ 3e ۜ ࢙2025ϋ1-6˜ 2024ϋ1-6˜ Related parties Transactions Jan-Jun 2025 Jan-Jun 2024 (As restated) ي Southwest Computer Co., Ltd. Sale of goods 22,489.87 5,698,471.25 ي Chongqing Machinery & Electronics Holding (Group) Co., Ltd. Sale of goods 3,702,453.17 1,283,426.76 ණྠዚཥʈ ʮ̡ ي Chongqing Electromechanical Holding Group Electromechanical Engineering Technology Co., Ltd Sale of goods 56,100,087.88 7,062,808.17 ي Chongqing Cummins Engine Co., Ltd Sale of goods 5,949,213.65 2,083,644.73 ي Chongqing Zhongbian Electric Appliance Co., Ltd. Sale of goods 3,872,040.63 693,134.46 ΥᐄŊᑌᐄ ࠇ ي Subtotal of other unimportant joint ventures and associates Sale of goods 2,194,236.63 1,210,453.88 աΝɓ͎ʮ̡ ࠇ ي Subtotal of other unimportant enterprises controlled by the same parent company Sale of goods 2,980,252.84 2,465,770.00 ࠇTotal 74,820,774.31 20,497,709.25
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 318 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (II) RELATED PARTY TRANSACTIONS (continued) 4. Collect management fees and provide labor services 5. Fee and commission income ɤɚe ᚃ ɚ ᚃ 4e ϗ՟၍ଣ൬ʿԶ௶ਕ ࢙2025ϋ1-6˜ 2024ϋ1-6˜ Related parties Transactions Jan-Jun 2025 Jan-Jun 2024 աΝɓ͎ʮ̡ ࠇ ਕe௶ਕ Subtotal of unimportant enterprises controlled by the same parent company Providing services and labor services – 133,459.28 ࠇTotal – 133,459.28 5e ϗɝ ࢙2025ϋ1-6˜ 2024ϋ1-6˜ Related parties Transactions Jan-Jun 2025 Jan-Jun 2024 ΥᐄŊᑌᐄ ࠇ ˓ᚃ൬ Subtotal of other unimportant joint ventures and associates Fee 188.68 660.38 աΝɓ͎ʮ̡ ࠇ ˓ᚃ൬ Subtotal of unimportant enterprises controlled by the same parent company Fee 17,856.64 2,947.87 ࠇTotal 18,045.32 3,608.25
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 319 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (II) RELATED PARTY TRANSACTIONS (continued) 6. Interest income from loans and advances ɤɚe ᚃ ɚ ᚃ 6e ϗɝ ࢙2025ϋ1-6˜ 2024ϋ1-6˜ Related parties Transactions Jan-Jun 2025 Jan-Jun 2024 ൲ಛʿྦಛ Chongqing Machinery & Electronics Holding (Group) Co., Ltd Granting loans and advances 6,129,382.86 3,985,901.47 ΥᐄŊᑌᐄ ࠇ ൲ಛʿྦಛ Subtotal of other unimportant joint ventures and associates Granting loans and advances 1,425,765.58 2,103,405.58 աΝɓ͎ʮ̡છՓ ࠇ ൲ಛʿྦಛ Subtotal of other unimportant enterprises controlled by the same parent company Granting loans and advances 3,842,177.76 3,769,319.80 ࠇTotal 11,397,326.20 9,858,626.85
Page 321
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 320 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (II) RELATED PARTY TRANSACTIONS (continued) 7. Deposit interest payments 8. Related party lending ɤɚe ᚃ ɚ ᚃ 7e ˕̈ ࢙2025ϋ1-6˜ 2024ϋ1-6˜ Related parties Transactions Jan-Jun 2025 Jan-Jun 2024 ࢹ Chongqing Machinery & Electronics Holding (Group) Co., Ltd Deposit interest 827,685.59 1,646,171.46 ΥᐄŊᑌᐄ ࠇ ࢹ Subtotal of other unimportant joint ventures and associates Deposit interest 1,881,018.72 151,560.40 աΝɓ͎ʮ̡ ࠇ ࢹ Subtotal of other unimportant enterprises controlled by the same parent company Deposit interest 3,676,551.23 984,781.06 ࠇTotal 6,385,255.54 2,782,512.92 8e ࠾װږ ϗɝ ᗫᑌ˙ Related Parties Lending amount Start date Termination date Interest income for this period ʮ̡ Chongqing Cummins Engine Company 17,400,000.00 14 Mar 2016 14 Mar 2026 79,170.00 ࠢ பʮ̡ Chongqing Cummins Engine Company 5,850,000.00 1 Jan 2024 31 Dec 2025 129,989.27 ࠇTotal 23,250,000.00 – – 209,159.27
Page 322
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 321 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (II) RELATED PARTY TRANSACTIONS (continued) 9. The Related Party Rent (1) Related Parties renting ɤɚe ᚃ ɚ ᚃ 9e ر 1) ॡ ॡ˙Τ၈ ॡ༣༟ପ ˚ ॡ༣˟˚ Դ͜ᛆ ࠽ࡡ Դ͜ᛆ ༟ପ͉ಂ ұᔚ ॡ༣Դ͜ ᛆ༟ପ ұᔚ ව ࠽ ව ࠽ Չʕj ɓϋʫ ٙ Name of lessor Name of lessee Types of leased assets Lease start date Termination date Original value of the right-of-use asset Right-of-use asset depreciation Accumulated depreciation of lease right assets Book value of lease liability Including: lease liabilities due within one year பʮ̡ Ҧʱʮ̡ ي2025/1/1 2026/12/31 4,609,821.33 472,934.59 3,191,017.54 1,428,894.96 945,772.57 Southwest Computer Co., Ltd. Chongqing Machine Tool (Group) Co., Ltd. Panlink Transmission Technology Branch Building 1-Jan-25 31-Dec-26 ණྠ༟ପ၍ଣ ʮ̡ ي2025/1/1 2025/12/31 9,967,995.85 4,983,997.92 4,983,997.92 8,254,423.66 5,021,190.34 CQMEHG Asset Management Co., Ltd. Chongqing CAFF Automotive Braking&Steering Systems Co., Ltd. Building 1-Jan-25 31-Dec-25 ණྠ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd ʮ̡ Chongqing Machinery & Electric Co., Ltd. ي Building 2022/1/1 1-Jan-22 2025/12/31 31-Dec-25 18,067,277.79 2,039,414.75 16,027,863.05 2,189,171.88 2,189,171.88 ي2023/1/1 2025/12/31 4,740,311.16 790,051.86 3,950,259.28 825,263.03 825,263.03 Chongqing Electromechanical Holding Group Finance Co., Ltd. Building 1-Jan-23 31-Dec-25 ي2023/1/1 2025/12/31 120,464.48 20,077.44 100,387.21 21,208.08 21,208.08 Building 1-Jan-23 31-Dec-25 ي2023/1/1 2025/12/31 213,551.22 35,591.88 177,959.41 37,596.24 37,596.24 Building 1-Jan-23 31-Dec-25 ࠇTotal 37,719,421.83 8,342,068.44 28,431,484.41 12,756,557.85 9,040,202.14
Page 323
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 322 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (II) RELATED PARTY TRANSACTIONS (continued) 9. The Related Party Rent (continued) (2) The Group has no related parties leasing 10. Guarantees (1) The guarantee provided by the Group as the guarantor None. (2) The Group as guaranteed party ɤɚe ᚃ ɚ ᚃ 9e ᚃ (2) ೌᗫᑌ˙̈ॡ 10e ر 1) ڭ ೌf (2) ˙ Ցಂ˚ щ ʊᄵБҁଭ Guarantor Guaranteed party Guaranteed amount Starting date Due date Whether guarantee has been fulfilled ʮ̡ 27,600,000.00 2016-3-14 2031-3-14 щ Chongqing Machinery & Electronics Holding (Group) Co., Ltd Chongqing Machinery & Electric Co., Ltd. No 17,400,000.00 2016-3-14 2026-3-14 щ No ࠇTotal 45,000,000.00 – – –
Page 324
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 323 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (III) BALANCES WITH RELATED PARTIES 1. Accounts receivable ɤɚe ᚃ ɧ Ըቱᕘ 1e Ꮠϗಛධ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 (As restated) ණྠ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd. 1,350.00 2,677.00 ʮ̡ Qijiang Gear Transmission Co., Ltd 65,447,654.87 65,449,154.87 ණྠዚཥ ʮ̡ Chongqing Electromechanical Holding Group Electromechanical Engineering Technology Co., Ltd. 51,390,714.84 13,880,921.76 Ҧ பʮ̡ Chongqing Arrows Auto Transmission Parts Co., Ltd. 843,727.52 6,166,157.93 ༸ʹஷପุҳ༟ ʮ̡ Chongqing Rail Transit Industry Investment Co., Ltd 2,474,038.20 17,434,986.25 ப ʮ̡ Chongqing Jiangbei Machinery Co., Ltd. 10,342,268.36 10,361,092.36 ʈዚཥτༀʈ ʮ̡ Chongqing Construction Engineering Mechanical and Electrical Installation Engineering Co., Ltd 7,846,496.23 – ΥᐄŊᑌᐄ ࠇ Subtotal of other unimportant joint ventures and associates 2,955,416.85 306,965.38 աΝɓ͎ʮ ࠇ Subtotal of other unimportant enterprises controlled by the same parent company 10,327,368.25 19,094,395.95 ࠇTotal 151,629,035.12 132,696,351.50
Page 325
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 324 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (III) BALANCES WITH RELATED PARTIES (continued) 2. Other receivables ɤɚe ᚃ ɧ Ըቱᕘ ᚃ 2e Չ˼Ꮠϗಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 ʮ̡ Qijiang Gear Transmission Co., Ltd 19,841,743.24 19,841,743.24 ࠢ ʮ̡ Chongqing Pigeon Electric Materials Co., Ltd. 9,159,412.58 17,375,624.59 Ҧ பʮ̡ Chongqing Arrows Auto Transmission Parts Co., Ltd. 6,460,838.16 6,482,312.96 ණྠ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd 295,120.00 419,947.59 աΝɓ͎ ࠇ Subtotal of other unimportant affiliated companies of parent companies 1,725,691.85 1,110,178.35 ΥᐄŊᑌᐄ ࠇ Subtotal of other unimportant enterprises controlled by the same parent company 570,759.12 169,211.75 ࠇTotal 38,053,564.95 45,399,018.48
Page 326
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 325 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (III) BALANCES WITH RELATED PARTIES (continued) 3. Dividends receivable 4. Contract assets 5. Non-current assets due within one year ɤɚe ᚃ ɧ Ըቱᕘ ᚃ 3e л 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 ࠢ ʮ̡ Chongqing Cummins Engine Co., Ltd 217,042,558.58 286,995,004.64 ΥᐄŊᑌᐄ ࠇ Subtotal of other unimportant joint ventures and associates 1,937,456.38 1,937,456.38 ࠇTotal 218,980,014.96 288,932,461.02 4e ΥΝ༟ପ ϋ͋ቱᕘቱᕘ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 ༸ʹஷପุҳ༟ ʮ̡ Chongqing Rail Transit Industry Investment Co., Ltd. 15,403,682.98 – ණྠዚཥ ʮ̡ Chongqing Electromechanical Holding Group Electromechanical Engineering Technology Co., Ltd. 7,202,229.64 – ණྠ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd. 429,811.32 – ΥᐄŊᑌᐄ ࠇ Subtotal of unimportant joint ventures and associates 1,282,594.76 1,044,937.14 աΝɓ͎ʮ̡ ࠇ Subtotal of other unimportant enterprises controlled by the same parent company 1,600,106.35 6,803,217.57 ࠇTotal 25,918,425.05 7,848,154.71 5e ਗ༟ପ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 ࠢ ʮ̡ Chongqing Cummins Engine Co., Ltd. 18,330,399.68 17,998,806.45 ࠇTotal 18,330,399.68 17,998,806.45
Page 327
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 326 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (III) BALANCES WITH RELATED PARTIES (continued) 6. Long-term receivables 7. Loans and advances to customers ɤɚe ᚃ ɧ Ըቱᕘ ᚃ 6e ಂᏐϗಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 ೯ਗዚ ʮ̡ Chongqing Cummins Engine Co., Ltd. – 8,999,403.23 ࠇTotal – 8,999,403.23 7e ൲ಛʿྦಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 ණྠ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd 496,000,000.00 508,454,850.00 ණྠ ʮ̡ Chongqing Light Textile Holding (Group) Corporation 150,108,333.33 – ࠢ ʮ̡ Chongqing Changjiang Bearing Co., Ltd 108,786,121.62 154,795,100.25 ப ʮ̡ Chongqing Zhongbian Electric Appliance Co., Ltd 59,963,691.67 61,980,633.05 ப ʮ̡ Chongqing Jiangbei Machinery Co., Ltd. 41,034,166.66 46,042,166.68 ӛԓණྠਖ਼͜ பʮ̡ Chongqing Heavy Duty Truck Group Special Vehicle Co., Ltd. 36,933,038.33 – ݖ ʮ̡ Chongqing Hongyan Fangda Automotive Suspension Co., Ltd. 33,028,416.66 70,066,305.55 ப ʮ̡ Chongqing Juntong Automobile Co., Ltd. 27,022,500.00 15,013,750.00 ࠢ பʮ̡ Chongqing Automotive Standard Parts Factory Co., Ltd 11,278,082.76 807,383.08 ப ᅺ ᅀʱʮ̡ Chongqing Standard Parts Industry Co., Ltd. Chongqing High Strength Standard Parts Factory Branch 9,646,860.69 – ΥᐄŊᑌᐄ ࠇ Subtotal of unimportant joint ventures and associates 299,981.66 1,557,769.02 աΝɓ ࠇ Subtotal of other unimportant enterprises controlled by the same parent company 3,211,220.49 – ࠇTotal 977,312,413.87 858,717,957.63
Page 328
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 327 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (III) BALANCES WITH RELATED PARTIES (continued) 8. Accounts payable 9. Other payables ɤɚe ᚃ ɧ Ըቱᕘ ᚃ 8e Ꮠ˹ሪಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 ᅅ˰ီᅃ౽ঐႡி ʮ̡ Chongqing Sino-Germany Smart Factory Solutions Co., Ltd. 12,627,713.88 – ப ʮ̡ Chongqing Zhongbian Electric Appliance Co., Ltd 4,004,873.72 4,292,248.06 ࠢ ʮ̡ Chongqing Jiaoyun Electromechanical Logistics Co., Ltd – 6,868,910.75 ΥᐄŊᑌᐄ ࠇ Subtotal of unimportant joint ventures and associates 2,054,378.47 2,128,546.10 աΝɓ ࠇ Subtotal of other unimportant enterprises controlled by the same parent company 17,653,085.25 14,554,076.33 ࠇTotal 36,340,051.32 27,843,781.24 9e Չ˼Ꮠ˹ಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 (As restated) ණྠ༟ପ ʮ̡ Chongqing Electromechanical Holding Group Asset Management Co., Ltd. Nan’an Enterprise Management Branch 80,934,305.17 49,285,771.99 ණྠ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd 25,598,932.96 25,131,593.14 ࠢ பʮ̡ Minqin Guoneng Wind Power Co., Ltd 14,455,000.00 14,552,866.47 աΝɓ ࠇ Subtotal of unimportant joint ventures and associates 2,591,908.82 2,437,780.28 ΥᐄŊᑌᐄ ࠇ Subtotal of other unimportant enterprises controlled by the same parent company – 84,196.81 ࠇTotal 123,580,146.95 91,492,208.69
Page 329
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 328 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (III) BALANCES WITH RELATED PARTIES (continued) 10. Deposit taking ɤɚe ᚃ ɧ Ըቱᕘ ᚃ 10e іϗπಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 ණྠ ʮ̡ Chongqing Light Textile Holding (Group) Corporation 229,004,880.33 – ණྠ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd. 203,788,234.00 30,680,291.48 பʮ̡ Chongqing Jian’an Instrument Co., Ltd. 144,673,710.46 207,733,604.24 ʮ̡ Chongqing Military Industry Group Co., Ltd. 108,202,540.88 87,193,573.74 ණྠዚཥʈ ʮ̡ Chongqing Electromechanical Holding Group Electromechanical Engineering Technology Co., Ltd. 82,925,214.71 202,676,204.14 ௹ҳ༟ ʮ̡ Chongqing Electromechanical Holding Group Xinbo Investment Management Co., Ltd. 76,683,448.41 85,747,194.66 ʮ̡ Chongqing Superior Industrial Development Co., Ltd 74,943,272.24 – Ҧ ʮ̡ Chongqing Electromechanical Holding Group Power Technology Co., Ltd 58,742,849.38 – ࠢ ʮ̡ Chongqing General Aviation Industry Group Co., Ltd 49,929,150.01 52,680,383.67 பʮ̡ Southwest Computer Co., Ltd 13,740,388.05 21,094,491.50 பʮ̡ Chongqing Juntong Automobile Co., Ltd 13,501,671.20 44,082,138.19 ʮ̡ Chongqing Changjiang Bearing Co., Ltd 12,203,958.55 – பʮ̡ Chongqing Standard Parts Industrial Co., Ltd 5,856,121.00 50,769.04 ʮ̡ Chongqing Jiangxia Real Estate Co., Ltd 5,700,181.92 – பʮ̡ Chongqing Zhongbian Electric Appliance Co., Ltd 5,051,111.19 – பʮ̡ ᅅᅺᅀʱʮ̡ Chongqing Standard Parts Industrial Co., Ltd. Chongqing standard parts factory branch 1,028,386.76 21,661,602.39 ʮ̡ Chongqing Pigeon Electric Materials Co., Ltd. 375.62 1,473,907.06 பʮ̡ Chongqing Automobile Standard Parts Factory Co., Ltd 26.47 16,418,389.10 ʮ̡ Chongqing General Machinery Industry Co., Ltd – 1,297,245.62 ࠢ ʮ̡ Chongqing Qichi Gear Research Institute Co., Ltd. 262,386.60 62,217.39 ΥᐄŊᑌᐄΆุ ࠇ Subtotal of unimportant joint ventures and associates 688,734.31 31,266,488.14 աΝɓ͎ʮ̡ ࠇ Subtotal of other unimportant enterprises controlled by the same parent company 22,450,726.61 10,275,384.22 ࠇTotal 1,109,377,368.70 814,393,884.58
Page 330
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 329 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (III) BALANCES WITH RELATED PARTIES (continued) 11. Contractual liabilities 12. Non-current liabilities due within one year ɤɚe ᚃ ɧ Ըቱᕘ ᚃ 11e ව 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 ණྠዚཥ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd. – 6,112,665.55 ΥᐄŊᑌᐄ ࠇ Subtotal of unimportant joint ventures and associates 3,001,263.00 8,849.56 աΝɓ͎ʮ̡ ࠇ Subtotal of other unimportant enterprises controlled by the same parent company 207.08 60,343.08 ࠇTotal 3,001,470.08 6,181,858.19 12e ව 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 ණྠ༟ପ ʮ̡ Chongqing Electromechanical Holding Group Asset Management Co., Ltd. 5,021,190.34 10,130,102.52 ණྠ ʮ̡ Chongqing Machinery & Electronics Holding (Group) Co., Ltd. 3,073,239.23 7,564,561.81 பʮ̡ Southwest Computer Co., Ltd. 945,772.57 – ࠇTotal 9,040,202.14 17,694,664.33
Page 331
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 330 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (III) BALANCES WITH RELATED PARTIES (continued) 13. related party commitments 14. related party commitments The Group has no related party commitments on the balance sheet date. (IV) REMUNERATION OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT The main management remuneration (including the amount paid and payable to the directors, supervisors and senior management) is as follows: ɤɚe ᚃ ɧ Ըቱᕘ ᚃ 13e ව 2025ϋ6˜30˚ 2024ϋ12˜31˚ ᗫᑌ˙ఊЗΤ၈ Related parties 30 Jun 2025 31 Dec 2024 ණྠ༟ପ ʮ̡ Chongqing Electromechanical Holding Group Asset Management Co., Ltd. 3,233,233.32 – பʮ̡ Southwest Computer Co., Ltd. 483,122.39 – ࠇTotal 3,716,355.71 – 14e ፕ ˚ೌᗫᑌ˙ ፕԫධf ̬ ԫe္ԫʿᔖʈᑚཇ ʊ˹ʿᏐ˹ԫe ᕘ νɨj 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Item Jan-Jun 2025 Jan-Jun 2024 ൨ Salaries and allowances 1,513,149.93 2,153,460.00 ʿ ϓ͉ Social insurance, housing funds and related pension costs 395,317.93 690,580.65 ږbonus 694,600.00 1,109,280.00 ࠇTotal 2,603,067.86 3,953,320.65
Page 332
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 331 XII. RELATED PARTIES AND RELATED-PARTY TRANSACTIONS (CONTINUED) (V) BORROWINGS RECEIVABLE OF DIRECTORS AND DIRECTORS’ RELATED PARTIES 1. The Group has no receivables from directors and director-related corporate loans. 2. The Group does not provide guarantees for directors and director-related corporate loans. XIII. SHARE-BASED PAYMENT None. XIV. COMMITMENTS AND CONTINGENCIES 1. Important commitments Capital expenditure contracted during the reporting period but not yet incurred by the Group: The following are the credit commitments signed by the Group and not yet listed on the balance sheet: ɤɚe ᚃ ʞ ಛ 1. ͉ණྠೌᏐϗԫeԫᗫᑌΆุ f 2. ࠾ f ɤɧe ΅˕˹ ೌf ɤ̬e Ϟԫධ 1. ፕԫධ ߒ ፕj 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Item 30 Jun 2025 31 Dec 2024 ʿዚኜண௪ House, building and equipment 44,821,428.77 35,707,805.73 ࠇTotal 44,821,428.77 35,707,805.73 ߒ ו ፕj 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Item 30 Jun 2025 31 Dec 2024 гිୃ Bank acceptance 363,332,915.60 370,194,782.25 Ռ Non financing guarantee letter 109,707,656.54 110,294,703.94 ርᓙόᔷ൨ତ Sell out discount 34,589,171.29 273,535,043.35 ࠇTotal 507,629,743.43 754,024,529.54
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 332 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XIV. COMMITMENTS AND CONTINGENCIES (CONTINUED) 2. Contingencies As of June 30, 2025, there are no material contingent liabilities of the Group that require disclosure. XV. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE 1. Important non-adjusting events: The Group convened the Second Meeting of the Seventh Board of Directors on August 20, 2025, at which it was proposed that the Group distribute dividends to all shareholders at RMB0.01 per share (tax inclusive). The total proposed dividend amount is RMB36,846,401.54 (tax inclusive). This dividend distribution proposal is subject to approval by the Group’s shareholders’ meeting scheduled to be held on October 28, 2025. Accordingly, the proposed dividend has not been recognized as a liability in these financial statements. 2. The Group has no significant sales returns after the balance sheet date. 3. Except for the disclosure of events after the balance sheet date mentioned above, the Group has no other significant events after the balance sheet date. ɤ̬e Ϟԫධ ᚃ 2. Ϟԫධ ࿚˟2025ϋ6˜30ᚣ Ϟԫධf ɤʞe ԫධ 1. ሜԫධj 2025ϋ8˜20 ԫึ2025ϋୋɚϣึᙄdึᙄᙄ͉ණ ɛ͏࿆ 0.01ў ΣΌ ɛ ͏࿆36,846,401.54лʱ 2025ϋ10˜ 28dΪϤ༈ މ වf 2. ɽቖਯৗΫf 3. ᚣԫ ˚ ԫධf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 333 XVI. OTHER SIGNIFICANT EVENTS 1. The Group’s annuity plan establishment According to the fifth session of the board of directors in 2021 first meeting minutes and resolution, agreed to the company headquarters since 2021 to establish enterprise annuity, and in accordance with the Chongqing electromechanical co., LTD. (headquarters) enterprise annuity plan rules for management, as of June 30,2025, the company headquarters and subsidiary to participate in the annuity plan number of 3,601 people respectively. 2. Segment information The group’s reporting segments are business units operating on the basis of different products or services, or in different regions. As various businesses or regions require different technologies and market strategies, the group’s divisions independently manage the production and operation activities of each reporting division and evaluate its operating results in order to determine the allocation of resources to it and evaluate its performance. The Group has 9 reporting divisions which are: Engine division, responsible for the production and sales of engine products; General machinery division, responsible for producing and selling general mechanical products; Wind turbine blade division, responsible for producing and selling wind turbine blades; ɤʬe ԫධ 1. ر ԫึ 2021ϋୋɓϣ ึᙄাʿӔᙄdΝจʮ̡͉І 2021 ᅅዚཥ ݄ ආБ၍ଣ d ࿚˟2025ϋ6˜30˚d ɛᅰ މ3,601ɛf 2. ࢹڦ אۜ ุਕఊʩf͟ Ҧஔձ̹ ఙଫdΪϤd͉ණྠʱዹͭ၍ଣ ਗdԨ൙ᄆՉ ΣՉৣໄ༟๕Ԩ൙ᄆ Չุᐶf ͉ණྠϞ9j ப͛ପԨቖਯ೯ਗዚପ i ப͛ପԨቖਯஷ͜ዚ i ཥ ˪i
Page 335
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 334 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XVI. OTHER SIGNIFICANT EVENTS (CONTINUED) 2. Segment information (continued) Wire and cable division, responsible for the production and sales of wire and cable products; Intelligent manufacturing division, responsible for producing and selling high-end intelligent equipment products; CNC machine tools division, responsible for the production and sales of CNC machine tools in China and Europe; High voltage transformer division, responsible for the production and sales of high voltage transformer products; Material sales division, responsible for material sales; Financial services division, responsible for providing financial services such as loans; Other divisions, responsible for producing and selling other products. The inter-division transfer price shall be determined by both parties through negotiation. Assets, liabilities, revenues and expenses are allocated according to the operations of the segment. ɤʬe ԫධ ᚃ 2. ᚃ ப͛ପԨቖਯཥᇞཥ i ப͛ପԨቖਯ৷၌౽ i ͛ପ i ப͛ପԨቖਯ৷Ꮐ i ቖਯi ਕi f f ᐄආБʱৣf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 335 XVI. OTHER SIGNIFICANT EVENTS (CONTINUED) 2. Segment information (continued) Financial Information of the Reporting Segments for January-June 2025 ɤʬe ԫධ ᚃ 2. ᚃ 2025ϋ1-6ࢹڦ ࠇ ධͦ Items Engine General machinery Wind turbine blades Wire and cable CNC machine tools Intelligent manufacturing High voltage transformer Financial service Material sales Other divisions Offset Total ϗɝ External transaction income – 1,134,352,695.55 1,295,888,555.51 1,160,033,124.91 446,308,107.22 276,597,742.12 – 41,444,326.71 – 372,591,152.79 – 4,727,215,704.81 ϗɝ Inter-segment revenue – -21,847,948.44 – -10,863,061.12 -11,085,982.92 -11,255,095.67 – -13,245,850.46 – -841,224.62 – -69,139,163.23 ϗɝ Revenue from external customers – 1,112,504,747.11 1,295,888,555.51 1,149,170,063.79 435,222,124.30 265,342,646.45 – 28,198,476.25 – 371,749,928.17 – 4,658,076,541.58 ˴ᐄุਕϓ͉ Operating costs – 864,884,448.98 1,129,953,831.89 998,015,007.47 339,000,276.70 233,858,069.94 – 16,885,389.81 – 320,697,505.98 – 3,903,294,530.77 ϓ͉ Inter-segment transaction cost – -17,202,466.70 100,359.34 -628,159.17 -6,450,710.47 -3,460,409.76 – -10,386,357.35 – -6,941,030.66 – -44,968,774.77 ϓ͉ External transaction cost – 847,681,982.28 1,130,054,191.23 997,386,848.30 332,549,566.23 230,397,660.18 – 6,499,032.46 – 313,756,475.32 – 3,858,325,756.00 ˣл Gross profit from external transactions – 264,822,764.83 165,834,364.28 151,783,215.49 102,672,558.07 34,944,986.27 – 21,699,443.79 – 57,993,452.85 – 799,750,785.58 ˣлଟ (%) Gross profit rates (%) – 23.80 12.80 13.21 23.59 13.17 – 76.95 – 15.60 – 17.17 ᐄุлᆗ Operating (loss)/profit 329,003,500.00 85,836,096.95 28,036,066.31 30,851,059.13 -22,318,806.58 -15,645,721.77 47,237,606.48 14,929,751.76 – -46,482,252.04 – 451,447,300.24 ϗɝ Interest income – 1,613,016.36 999,850.04 1,010,507.19 375,118.30 81,120.92 – – – 2,911,327.48 – 6,990,940.29 ൬͜ interest costs – 204,383.06 2,208,052.79 501,045.24 9,923,770.21 17,966.66 – – – 17,063,062.50 – 29,918,280.46 ࿁ᑌᐄձΥᐄΆุ ҳ༟ϗू Investment income from associates and joint ventures 329,003,500.00 – – – 4,779,712.68 – 47,237,606.48 – – 8,112,575.99 – 389,133,395.15 лᆗᐼᕘ Total profit 329,003,500.00 85,848,120.75 28,151,809.59 30,849,441.00 -21,519,812.34 -15,701,615.49 47,237,606.48 14,938,751.76 – -45,605,334.40 – 453,202,467.35 ൬͜ Income tax expense – 8,525,528.75 2,167,272.75 2,126,039.23 2,686,602.70 3,036,398.82 – 3,712,010.16 – 328,963.69 – 22,582,816.10 ଋлᆗ Net profit 329,003,500.00 77,322,592.00 25,984,536.84 28,723,401.77 -24,206,415.04 -18,738,014.31 47,237,606.48 11,226,741.60 – -45,934,298.09 – 430,619,651.25 ࠇ Չ˼ධͦ Other items Engine General machinery Wind turbine blades Wire and cable CNC machine tools Intelligent manufacturing High voltage transformer Financial service Material sales Other divisions Offset Total ༟ପeԴ͜ᛆ༟ ג ήପұᔚ Depreciation of Property, plant and equipment and investment property – 24,045,706.09 49,872,767.90 7,407,171.04 23,867,828.47 6,450,197.55 – 1,115,751.73 – 30,913,814.40 – 143,673,237.18 ೌҖ༟ପᛅቖ Amortisation of intangible assets – 2,595,649.11 1,820,907.08 400,978.38 2,966,955.74 196,313.22 – 447,597.74 – 3,111,860.49 – 11,540,261.76 πൻᄆ௪ Provision on inventory – 2,121,650.86 -22,264,916.91 -3,893,946.95 -4,214,077.72 -256,476.73 – – – – – -28,507,767.45 ᏐϗሪಛʿՉ˼Ꮠ ௪Ŋ ᔷΫ Provision for/(reversal of) impairment of accounts receivables and other receivables – -11,200,942.05 2,216,184.59 -16,082,941.52 2,692,265.40 -17,365,561.46 – – – -540,346.62 – -40,281,341.66 ਗ༟ପᄣ̋ ʔ ፄ༟ପe ᛆҳ༟ձ ༟ପ Additions to non-current assets (other than financial instruments, long term equity investments and deferred income tax assets) – 39,399,321.79 -11,476,280.64 7,090,703.71 -36,979,798.02 -794,156.16 – 31,611,342.74 – -29,554,425.84 – -703,292.42
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 336 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XVI. OTHER SIGNIFICANT EVENTS (CONTINUED) 2. Segment information (continued) Financial information of reporting segments from January to June 2024 as follows: ɤʬe ԫධ ᚃ 2. ᚃ 2024ϋ1-6ࢹڦ ࠇ ධͦ Items Engine General machinery Wind turbine blades Wire and cable Numerically controlled machine tool Intelligent manufacturing High voltage transformer Financial service Material sales Other divisions Offset Total ϗɝ External transaction income – 1,122,784,484.84 1,119,144,973.61 1,000,113,127.40 449,553,485.36 289,442,940.00 – 44,400,161.14 2,554,468.73 291,593,375.55 – 4,319,587,016.63 ϗɝ Inter-segment revenue – -4,249,195.62 – -6,558,129.63 -6,167,086.69 -5,030,398.28 – -18,832,630.41 -785,574.94 -12,073,060.70 – -53,696,076.27 ϗɝ Revenue from external customers – 1,118,535,289.22 1,119,144,973.61 993,554,997.77 443,386,398.67 284,412,541.72 – 25,567,530.73 1,768,893.79 279,520,314.85 – 4,265,890,940.36 ˴ᐄุਕϓ͉ Operating costs – 804,042,105.96 1,000,981,721.60 882,222,065.59 335,971,576.90 249,075,408.45 – 17,214,007.55 452,057.69 292,092,564.07 – 3,582,051,507.81 ϓ͉ Inter-segment transaction cost – -4,249,195.62 – -6,558,129.63 -2,716,497.55 -5,030,398.28 – -14,335,874.00 – -7,617,752.20 – -40,507,847.28 ϓ͉ External transaction cost – 799,792,910.34 1,000,981,721.60 875,663,935.96 333,255,079.35 244,045,010.17 – 2,878,133.55 452,057.69 284,474,811.87 – 3,541,543,660.53 ˣл Gross profit from external transactions – 318,742,378.88 118,163,252.01 117,891,061.81 110,131,319.32 40,367,531.55 – 22,689,397.18 1,316,836.10 -4,954,497.02 – 724,347,279.83 ˣлଟ (%) Gross profit rates (%) – 28.50 10.56 11.87 24.84 14.19 – 88.74 74.44 -1.77 – 16.98 ᐄุлᆗ Operating (loss)/profit 257,751,721.55 128,268,907.10 32,842,533.19 40,915,211.96 41,726,723.90 3,365,806.21 18,407,246.97 28,905,033.34 -555,018.37 -219,571,660.72 – 332,056,505.13 ϗɝ Interest income – 2,837,557.64 697,318.49 372,168.51 103,195.01 143,027.88 – – 105,929.28 4,375,108.11 – 8,634,304.92 ൬͜ interest costs – 227,151.39 3,226,809.58 3,309,175.63 9,931,804.27 553,247.52 – – – 23,408,495.03 – 40,656,683.42 ࿁ᑌᐄձΥᐄΆุ ҳ༟ϗू Investment income from associates and joint ventures 257,751,721.55 – – – 1,240,982.46 – 18,407,246.97 – – 7,968,835.76 – 285,368,786.74 лᆗᐼᕘ Total profit 257,751,721.55 128,907,983.57 32,961,394.94 40,730,670.82 46,508,698.28 3,106,343.51 18,407,246.97 28,585,005.64 -547,516.66 -217,999,629.99 – 338,411,918.63 ൬͜ Income tax expense – 22,400,344.22 7,811,292.56 4,785,819.55 229,597.83 1,508,425.18 – 11,436,298.79 -99.38 -165,109.20 – 48,006,569.55 ଋлᆗ Net profit 257,751,721.55 106,507,639.35 25,150,102.38 35,944,851.27 46,279,100.45 1,597,918.33 18,407,246.97 17,148,706.85 -547,417.28 -217,834,520.79 – 290,405,349.08 ࠇ Չ˼ධͦ Items Engine General machinery Wind turbine blades Wire and cable CNC machine tools Intelligent manufacturing High voltage transformer Financial service Material sales Other divisions Offset Total ༟ପeԴ͜ᛆ༟ ή ପұᔚ Depreciation of Property, plant and equipment and investment property – 19,457,953.00 43,384,609.82 7,583,595.95 27,077,209.97 5,719,644.73 – 1,305,001.55 9,068.63 30,795,537.19 – 135,332,620.84 ೌҖ༟ପᛅቖ Amortisation of intangible assets – 2,526,663.04 11,264,589.70 387,660.42 5,569,962.35 195,322.02 – 469,761.43 193,158.12 9,275,083.32 – 29,882,200.40 πൻᄆ௪ Provision on inventory – -14,569,445.58 – -618,635.19 -667.21 383,713.58 – – – -609,484.90 – -15,414,519.30 ᏐϗሪಛʿՉ˼Ꮠ ௪Ŋ ᔷΫ Provision for/(reversal of) impairment of accounts and other receivables – -15,212,436.28 16,931,531.69 -4,435,769.77 -4,753,136.62 -9,960,754.25 – – -90,070.43 7,002,467.44 – -10,518,168.22 ਗ༟ପᄣ̋ ʔ ڗ ַ ༟ପ Additions to non-current assets (other than financial instruments, long term equity investments and deferred income tax assets) – -37,269,581.14 -19,939,796.24 -4,327,141.76 -18,341,014.64 -7,022,306.75 – -1,630,266.98 578,285.09 6,351,187.51 – -81,600,634.91
Page 338
ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 337 ɤʬe ԫධ ᚃ 2. ᚃ j ࠇ ಂ͋ቱᕘ 30 Jun 2025 Engine General machinery Wind turbine blades Wire and cable Numerically controlled machine tool Intelligent manufacturing High voltage transformer Financial service Material sales Other divisions Offset Total ༟ପᐼᕘ Total assets 735,894,367.67 4,420,083,762.60 3,623,866,038.72 1,860,968,033.31 2,072,065,187.68 760,291,441.21 427,591,565.39 3,824,102,487.53 – 9,862,034,303.31 -8,754,250,058.92 18,832,647,128.50 වᐼᕘ Total liabilities – 2,039,529,945.81 2,667,377,697.16 1,125,439,127.38 1,509,185,064.06 464,623,627.82 – 2,646,646,137.42 – 3,475,402,754.27 -3,980,925,060.29 9,947,279,293.63 ᑌᐄʿΥᐄΆุ ҳ༟ Investment of associates or joint ventures 735,894,367.67 – – – 107,885,880.00 – 427,591,565.39 – – 464,842,129.41 – 1,736,213,942.47 ڌ ࠇ ቱᕘ 31 Dec 2024 Engine General machinery Wind turbine blades Wire and cable Numerically controlled machine tool Intelligent manufacturing High voltage transformer Financial service Material sales Other divisions Offset Total ༟ପᐼᕘ Total assets 623,933,426.23 4,385,833,585.81 3,105,995,830.70 1,632,940,296.35 2,060,961,067.93 764,237,384.82 409,122,632.21 3,929,924,862.84 – 9,647,357,198.95 -8,873,549,023.31 17,686,757,262.53 වᐼᕘ Total liabilities – 2,068,219,617.97 2,169,210,562.20 1,141,916,849.91 1,397,685,416.91 454,731,004.95 – 2,770,206,737.43 – 3,346,145,275.45 -4,279,740,639.81 9,068,374,825.01 ᑌᐄʿΥᐄΆุ ҳ༟ Investment of associates or joint ventures 623,933,426.23 – – – 82,419,669.61 – 409,122,632.21 – – 458,079,553.42 – 1,573,555,281.47 3. Ꮠ ԫධf XVI. OTHER SIGNIFICANT EVENTS (CONTINUED) 2. Segment information (continued) Information on the assets and liabilities of reported segments as follows: (Continued) 3. Except for the matters above, the Group does not have any other important matters that should be disclosed.
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 338 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ɤɖe ධͦൗᙑ 1. Չ˼Ꮠϗಛ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 л Dividend receivables 278,980,014.96 330,447,825.54 Չ˼Ꮠϗಛ Other receivables 434,446,893.31 478,614,927.92 ௪ Less: Provision for bad debts 365,837,690.71 365,837,690.71 ࠇTotal 347,589,217.56 443,225,062.75 1.1 л ධͦ 2025ϋ6˜30˚ 2024ϋ12˜31Ϊ ʿՉ кᓙԱኽ Items 30 Jun 2025 31 Dec 2024 Reasons for not yet recovered Whether impaired and criterion ሪᙧ1л 277,042,558.58 258,557,923.10 – – Within 1 year 217,042,558.58 217,042,558.58 – – Including: Cummins ᓀʮ̡ 60,000,000.00 37,685,364.52 – – Pigeon Brand Company ౽ঐႡி – 3,830,000.00 – – Smart Manufacturing ሪᙧ1л 1,937,456.38 71,889,902.44 – – Over 1 year – – ˙ɽ 1,937,456.38 1,937,456.38͊˕˹ ʮ̡ᐄ͍੬dՈ௪˕˹ ঐɢ Including: Hongyan Fangda Pending Payment The company operates normally and has the ability to pay – 69,952,446.06˹ಛ ʮ̡ᐄ͍੬dՈ௪˕˹ ঐɢ CQ Cummins Payment according to investment agreement The company operates normally and has the ability to pay ࠇ278,980,014.96 330,447,825.54 Total XVII. NOTES TO MAJOR ITEMS OF THE FINANICAL STATEMENTS OF THE COMPANY 1. Other Receivables 1.1 Dividend receivables
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 339 ɤɖe ධͦൗᙑ ᚃ 1. Չ˼Ꮠϗಛ ᚃ1.2 Չ˼Ꮠϗಛ 2024ϋ6˜30˚ 2023ϋ12˜31˚ ධͦ Items 30 Jun 2025 31 Dec 2024 Չ˼Ꮠϗಛ Other receivables 434,446,893.31 478,614,927.92 ௪ Less: provision for bad debts 365,837,690.71 365,837,690.71 ࠇCarrying amount 68,609,202.60 112,777,237.21 (1) ر 2024ϋ6˜30˚ 2023ϋ12˜31˚ ሯ Nature 30 Jun 2025 31 Dec 2024 Ꮠϗᗫᑌʮ̡ Receivables related party 80,772,757.22 85,763,624.45 ࢹFor external borrowing and interest 150,753,584.21 192,909,360.67 ˾ϗ˾˹ಛධ Funds held in trust 198,744,571.62 198,744,571.62 ږImprest 196,028.21 147,001.69 Չ˼ Others 3,979,952.05 1,050,369.49 ࠇTotal 434,446,893.31 478,614,927.92 ௪ Less: Provision for impairment 365,837,690.71 365,837,690.71 ࠽Book value 68,609,202.60 112,777,237.21 XVII. NOTES TO MAJOR ITEMS OF THE FINANICAL STATEMENTS OF THE COMPANY (CONTINUED) 1. Other Receivables (continued) 1.2 Other receivables (1) Classification of other receivables by nature
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 340 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ɤɖe ධͦൗᙑ ᚃ 1. Չ˼Ꮠϗಛ ᚃ 1.2 Չ˼Ꮠϗಛ ᚃ (2) ؓ 2025ϋ6˜30˚ 2024ϋ12˜31˚ ሪᙧ Aging 30 Jun 2025 31 Dec 2024 1ϋ˸ʫ Within one year 65,865,849.10 110,855,194.32 1ϋЇ2ϋ 1-2 years 821,390.87 60,053,121.51 2ϋЇ3ϋ 2-3 years 60,053,120.66 225,399.22 3ϋ˸ɪj Over 3 years: 307,706,532.68 307,481,212.87 Չʕj3 ϋЇ4ϋ Including: 3-4 years 225,399.22 19,365,365.24 4ϋЇ5ϋ 4-5 years 19,365,365.24 199,707,525.83 5ϋʿ˸ɪ Over 5 years 288,115,768.22 88,408,321.80 ࠇTotal 434,446,893.31 478,614,927.92 ಯjᕸሪ௪ Less: Provision for impairment 365,837,690.71 365,837,690.71 ࠽Carrying amount 68,609,202.60 112,777,237.21 XVII. NOTES TO MAJOR ITEMS OF THE FINANICAL STATEMENTS OF THE COMPANY (CONTINUED) 1. Other Receivables (continued) 1.2 Other receivables (continued) (2) Aging analysis
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 341 ɤɖe ධͦൗᙑ ᚃ 1. Չ˼Ꮠϗಛ ᚃ 1.2 Չ˼Ꮠϗಛ ᚃ (3) ج ʱᗳΐͪ ݬ Stage I Stage II Phase III ͊Ը12˜ ͜ฦ̰ πᚃಂ ͜ฦ̰ ͜ πᚃಂ ͜ฦ̰ ͜ ࠇ ᕸሪ௪ Bad debt provision Expect credit loss for the next 12 months Expected credit loss for the entire duration (no credit impairment occurred) Expected credit loss for the entire duration (credit impairment has occurred) Total 2024ϋ12˜31˚ Balance of 31 December 2024 – – 365,837,690.71 365,837,690.71 ቱ ᕘί͉ಂ The book balance of bad debt provision for other receivables in the current period – – – – ݬconverts into the second stage – – – – ݬconverts into the third stage – – – – ݬconverts back to the second stage – – – – ݬconverts back to the first stage – – – – Accrued – – – – ͉ಂᔷΫ Collected back – – – – ͉ಂᔷቖ Transferred back – – – – ቖ Write off – – – – Չ˼ᜊਗ Other changes – – – – 2025ϋ6˜30˚ Balance of 30 Jun 2025 – – 365,837,690.71 365,837,690.71 XVII. NOTES TO MAJOR ITEMS OF THE FINANICAL STATEMENTS OF THE COMPANY (CONTINUED) 1. Other Receivables (continued) 1.2 Other receivables (continued) (3) Other receivables with provision for bad debts based on the expected credit risk portfolio
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 342 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ɤɖe ධͦൗᙑ ᚃ 1. Չ˼Ꮠϗಛ ᚃ 1.2 Չ˼Ꮠϗಛ ᚃ (3) ج ʱᗳΐͪ ᚃ 1) ͜ฦ̰ 2025ϋ6˜30˚ 30 Jun 2025 ቱᕘ ᕸሪ௪ ᕸሪ௪ˢԷ (%)ଣ͟ Τ၈ Name Book balance Provision for bad debts Percentage (%) Reason ʷʈϞ ʮ̡ Chongqing Shangshe Chemical Co., Ltd. 287,276,230.04 287,276,230.04 100.00 not expected to be recoverable ϗΫ ➑ϪቃෂਗϞ ʮ̡ Qijiang Gear Transmission Co., Ltd 78,561,460.67 78,561,460.67 100.00 not expected to be recoverable ϗΫ ࠇTotal 365,837,690.71 365,837,690.71 – (4) e ر ᕘ Current period’s change amount 2024ϋ12˜31ቖ Չ˼ 2025ϋ6˜30˚ Items ᗳй 31 Dec 2024 Accrued Withdrawal or reversal Transfer or write off Others 30 Jun 2025 Provision for impairment ᕸሪ௪ 365,837,690.71 – – – – 365,837,690.71 Totalࠇ365,837,690.71 – – – – 365,837,690.71 (5) Չ ر XVII. NOTES TO MAJOR ITEMS OF THE FINANICAL STATEMENTS OF THE COMPANY (CONTINUED) 1. Other Receivables (continued) 1.2 Other receivables (continued) (3) Other receivables with provision for bad debts based on the expected credit risk portfolio (continued) 1) The other receivables recognized provision for bad debts separately (4) Other accounts receivable bad debt reserves provisioned, recovered or reversed this period (5) The company has no other accounts receivable that have been actually written off this period
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 343 XVII. NOTES TO MAJOR ITEMS OF THE FINANICAL STATEMENTS OF THE COMPANY (CONTINUED) 1. Other Receivables (continued) 1.2 Other receivables (continued) (6) Top 5 other receivables at the end of this period (7) Reported as other receivables due to centralized fund management None. (8) Receivable employee loans None. ɤɖe ධͦൗᙑ ᚃ 1. Չ˼Ꮠϗಛ ᚃ 1.2 Չ˼Ꮠϗಛ ᚃ (6) ۃ ر ሯ 2025ϋ6˜30˚ ሪᙧ ЦՉ˼Ꮠϗಛ ࠇ ˢԷ (%) ᕸሪ௪ಂ ͋ቱᕘ Name of debtors Nature 30 Jun 2025 Aging Percentage of other receivables ending balance(%) Ending balance of bad debt provision ࢹ5ϋ˸ɪ Chongqing Shangshe Chemical Co., Ltd Funds Held in Trust, borrowings and interest 287,276,230.04 More than 5 years 66.12 287,276,230.04 ࢹ2-3ϋe4-5ϋ Qijiang Gear Transmission Co., Ltd Borrowings and interest 78,561,460.67 2-3 year,4-5years 18.08 78,561,460.67 ࢹ1ϋ˸ʫ Chongqing Machine Tool (Group) Co., Ltd Borrowings and interest 27,486,995.26 Within 1 year 6.33 – ࢹ1ϋ˸ʫ Chongqing Water Turbine Factory Co., Ltd Borrowings and interest 16,308,926.02 Within 1 year 3.75 – ࢹ1ϋ˸ʫ Chongqing General Industry (Group) Co., Ltd. Borrowings and interest 13,439,101.49 Within 1 year 3.09 – Total 423,072,713.48 97.38 365,837,690.71 ࠇ 7) Չ ˼Ꮠϗಛ ೌf (8) ر ೌf
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 344 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XVII. NOTES TO MAJOR ITEMS OF THE FINANICAL STATEMENTS OF THE COMPANY (CONTINUED) 2. Long-term equity investments (1) Classification of long-term equity investments ɤɖe ධͦൗᙑ ᚃ 2. ᛆҳ༟ (1) ᛆҳ༟ʱᗳ 2025ϋ6˜30˚ 30 Jun 2025 ࠽ ධͦ Items Book balance Impairment Book value ࿁ɿʮ̡ҳ༟ Investment in subsidiaries 4,880,513,132.08 484,925,597.65 4,395,587,534.43 ࿁ᑌᐄeΥᐄΆุҳ༟ Investment in associates and joint ventures 1,611,171,897.11 – 1,611,171,897.11 ࠇTotal 6,491,685,029.19 484,925,597.65 6,006,759,431.54 2024ϋ12˜31˚ 31 Dec 2024 ࠽ ධͦ Items Book balance Impairment Book value ࿁ɿʮ̡ҳ༟ Investment in subsidiaries 4,680,513,132.08 467,074,097.65 4,213,439,034.43 ࿁ᑌᐄeΥᐄΆุҳ༟ Investment in associates and joint ventures 1,473,979,446.50 – 1,473,979,446.50 ࠇTotal 6,154,492,578.58 467,074,097.65 5,687,418,480.93
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 345 XVII. NOTES TO MAJOR ITEMS OF THE FINANICAL STATEMENTS OF THE COMPANY (CONTINUED) 2. Long-term equity investments (continued) (2) Investments in subsidiaries ɤɖe ධͦൗᙑ ᚃ 2. ᛆҳ༟ ᚃ (2) ࿁ɿʮ̡ҳ༟ ͉ಂගಯᜊਗ Increase and decrease in the period 2024ϋ12˜31˚ ௪ ௪ Չ˼ 2025ϋ6˜30˚ ௪ 2025ϋ6˜30˚ ቱᕘ ҳ༟ఊЗ Investee 31 Dec 2024 (Carrying amount) Impairment provision at the beginning of the year balance Increase Decrease Provision for impairment Others 30 Jun 2025 (Carrying amount) 30 Jun 2025 (Balance of impairment provision) ʮ̡ Chongqing CAFF Automotive Braking & Steering System Co., Ltd 264,485,219.18 – – – – – 264,485,219.18 – ʮ̡ Chongqing Water Turbine Works Co., Ltd. 166,516,113.89 372,398,204.11 – – – – 166,516,113.89 372,398,204.11 ʮ̡ Chongqing Pigeon Electric Wires & Cables Co., Ltd 171,743,240.27 – 200,000,000.00 – – – 371,743,240.27 – பʮ̡ Chongqing General Industry (Group) Co., Ltd 664,215,717.15 – – – – – 664,215,717.15 – ΅ʮ̡ Chongqing Chengfei New Materials Co., Ltd. 651,423,978.00 – – – – – 651,423,978.00 – பʮ̡ Chongqing Pump Industry Co., Ltd. 197,411,466.90 – – – – – 197,411,466.90 – பʮ̡ Chongqing Gas Compressor Factory Co., Ltd. 187,313,860.15 – – – – – 187,313,860.15 – பʮ̡ Chongqing Machine Tools (Group) Co., Ltd. 1,061,137,386.00 – – – – – 1,061,137,386.00 – ʮ̡ Chongqing Machinery and Electronics Holding Group Finance Co., Ltd. 551,087,852.58 – – – – – 551,087,852.58 – ʮ̡ PTG Precision Technologies Group (PTG) Limited 126,841,332.21 67,595,605.54 – – 17,851,500.00 – 108,989,832.21 85,447,105.54 ʮ̡ Chongqing Industrial Enabling Innovation Center Co., Ltd. – 27,080,288.00 – – – – – 27,080,288.00 ʮ̡ Chongqing Machinery & Electronic Intelligent Manufacturing Co., Ltd. 161,375,113.00 – – – – – 161,375,113.00 – பʮ̡ Xinjiang Zhongxinhong Energy Service Co., Ltd. 9,887,755.10 – – – – – 9,887,755.10 – ࠇTotal 4,213,439,034.43 467,074,097.65 200,000,000.00 – 17,851,500.00 – 4,395,587,534.43 484,925,597.65
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 346 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD XVII. NOTES TO MAJOR ITEMS OF THE FINANICAL STATEMENTS OF THE COMPANY (CONTINUED) 2. Long-term equity investments (continued) (3) Investment in associates and joint ventures ɤɖe ධͦൗᙑ ᚃ 2. ᛆҳ༟ ᚃ(3) ࿁ᑌᐄeΥᐄΆุҳ༟ ͉ಂගᄣಯᜊਗ Changes in the current period ௪ϋ͋ቱᕘ ʮ̡Τ၈ Investee Cost of investment 31 Dec 2024 Other equity changes Investment profit and loss recognized under equity method Cash dividends declared in current year Provision for impairment this year 30 Jun 2025 Balance of impairment ΥᐄΆุ 1. Joint venture – – – – – – – – CQ Cummins 370,189,551.00 623,933,426.23 – 329,003,500.00 217,042,558.56 – 735,894,367.67 – ࠇSub Total 370,189,551.00 623,933,426.23 – 329,003,500.00 217,042,558.56 – 735,894,367.67 – ᑌᐄΆุ 2. Associates – – – – – – – – Τj ᅅABBʮ̡ Chongqing Hitachi Energy Transformer Co., Ltd. (formerly: Chongqing ABB Transformer Co., Ltd.) 236,651,166.00 409,122,632.21 – 47,237,606.48 28,768,673.30 – 427,591,565.39 – ʮ̡ Chongqing Hongyan Fangda Automobile Suspension Co., Ltd. 51,306,166.00 123,098,842.33 – -347,850.82 – – 122,750,991.51 – ʮ̡ Exedy (Chongqing) Drive System Co., Ltd. 16,880,157.00 80,531,607.06 – -6,161,939.40 1,350,000.00 – 73,019,667.66 – ʮ̡ Knorr-Bremse Commercial Vehicle Systems (Chongqing) Co., Ltd. 44,231,369.00 74,965,087.95 – 9,568,201.24 – – 84,533,289.19 – பʮ̡ Chongqing Jiangbei Machinery Co., Ltd. 57,933,968.00 80,987,850.72 – 3,618,422.25 – – 84,606,272.97 – จɽл WPG WPG Italy 6,058,193.00 – – – – – – பʮ̡ Minqin Guoneng Wind Power Generation Co., Ltd. 81,340,000.00 81,340,000.00 – 1,435,742.72 – – 82,775,742.72 – ࠇSub Total 494,401,019.00 850,046,020.27 – 55,350,182.47 30,118,673.30 – 875,277,529.44 – ࠇTotal 864,590,570.00 1,473,979,446.50 – 384,353,682.47 247,161,231.86 – 1,611,171,897.11 –
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ൗᚃ NOTES TO THE FINANCIAL STATEMENTS (Continued) 2025ϋ1˜1˚Ї2025ϋ6˜30˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 2025 中報 重慶機電股份有限公司 347 VII. NOTES TO MAJOR ITEMS OF THE FINANICAL STATEMENTS OF THE COMPANY (CONTINUED) 3. Operating revenue & operating cost 4. Investment income Note: No significant restriction of investment income of the Group. The financial statements was approved by the Board of Directors of the Group for disclosure on August 20, 2025. ɤɖe ධͦൗᙑ ᚃ 3. ᐄุϗɝձᐄุϓ͉ 2025ϋ1-6˜ 2024ϋ1-6˜ Jan-Jun 2025 Jan-Jun 2024 ϗɝ ϓ͉ ϗɝ ϓ͉ ධͦ Item Revenue Cost Revenue Cost ˴ᐄุਕϗɝ Operation revenues 1,955,332.38 573,529.41 – – Չ˼ุਕϗɝ Other operations 5,183,106.83 4,168,227.86 – ࠇTotal 7,138,439.21 573,529.41 4,168,227.86 – 4. ҳ༟ϗू 2025ϋ1-6˜ 2024ϋ1-6˜ ධͦ Items Jan-Jun 2025 Jan-Jun 2024 ᛆҳ༟ϗू Investment income from long-term equity investments in equity method 384,353,682.47 284,127,804.28 ᛆҳ༟ϗू Investment income of long-term equity investments in cost method 60,008,892.82 308,722,122.75 ࠇTotal 444,362,575.29 592,849,927.03 ൗj Փf 2025ϋ8˜20˚͉͟ණྠ జ̈f ɤɖe ධͦൗᙑ ᚃ 2. ᛆҳ༟ ᚃ(3) ࿁ᑌᐄeΥᐄΆุҳ༟ ͉ಂගᄣಯᜊਗ Changes in the current period ௪ϋ͋ቱᕘ ʮ̡Τ၈ Investee Cost of investment 31 Dec 2024 Other equity changes Investment profit and loss recognized under equity method Cash dividends declared in current year Provision for impairment this year 30 Jun 2025 Balance of impairment ΥᐄΆุ 1. Joint venture – – – – – – – – CQ Cummins 370,189,551.00 623,933,426.23 – 329,003,500.00 217,042,558.56 – 735,894,367.67 – ࠇSub Total 370,189,551.00 623,933,426.23 – 329,003,500.00 217,042,558.56 – 735,894,367.67 – ᑌᐄΆุ 2. Associates – – – – – – – – Τj ᅅABBʮ̡ Chongqing Hitachi Energy Transformer Co., Ltd. (formerly: Chongqing ABB Transformer Co., Ltd.) 236,651,166.00 409,122,632.21 – 47,237,606.48 28,768,673.30 – 427,591,565.39 – ʮ̡ Chongqing Hongyan Fangda Automobile Suspension Co., Ltd. 51,306,166.00 123,098,842.33 – -347,850.82 – – 122,750,991.51 – ʮ̡ Exedy (Chongqing) Drive System Co., Ltd. 16,880,157.00 80,531,607.06 – -6,161,939.40 1,350,000.00 – 73,019,667.66 – ʮ̡ Knorr-Bremse Commercial Vehicle Systems (Chongqing) Co., Ltd. 44,231,369.00 74,965,087.95 – 9,568,201.24 – – 84,533,289.19 – பʮ̡ Chongqing Jiangbei Machinery Co., Ltd. 57,933,968.00 80,987,850.72 – 3,618,422.25 – – 84,606,272.97 – จɽл WPG WPG Italy 6,058,193.00 – – – – – – பʮ̡ Minqin Guoneng Wind Power Generation Co., Ltd. 81,340,000.00 81,340,000.00 – 1,435,742.72 – – 82,775,742.72 – ࠇSub Total 494,401,019.00 850,046,020.27 – 55,350,182.47 30,118,673.30 – 875,277,529.44 – ࠇTotal 864,590,570.00 1,473,979,446.50 – 384,353,682.47 247,161,231.86 – 1,611,171,897.11 –
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2025 ϋ 1 ˜ 1 ˚Ї 2025 ϋ 6 ˜ 30 ˚ From 1 January 2025 to 30 June 2025 (̮dѩ˸ɛ͏࿆ʩΐͪ ) (All amounts are presented in RMB except otherwise stated) 348 INTERIM REPORT 2025 CHONGQING MACHINERY & ELECTRIC CO., LTD ࣘ SUPPLEMENTARY INFORMATION TO CONSOLIDATED FINANCIAL STATEMENTS 1. ڌ 2025ϋ1-6˜ ධͦ Items Jan-Jun 2025 ༟ପ әቖʱ Non-current asset disposal gains and losses (including the offsetting portion of the provision for impairment of assets) 8,529,202.73 п ၾʮ̡͍੬ᐄ e ᅺԮϞe࿁ʮ̡ฦू пৰ̮ Government subsidies included in the current period’s profit and loss (excluding government subsidies closely related to the company’s normal business operations, in compliance with national policies and regulations, enjoyed according to determined standards, and having a continuous impact on the company’s profit and loss) 54,299,299.41 ಂ ፄ༟ପձ ᜊਗฦू˸ʿ ฦू Except for effective hedging business related to the normal operation of the company, the fair value gains and losses arising from the holding of financial assets and financial liabilities by non-financial enterprises, as well as the gains and losses arising from the disposal of financial assets and financial liabilities -3,126,176.78 ٙ Ц͜൬ Funds occupation fees charged to non-financial enterprises included in current profit and loss – ଡ଼ฦू Profit and loss from debt restructuring 7,505,521.36 ٙ ˕̈ഃ The one-time expenses incurred by the enterprise due to the discontinuation of related business activities, such as expenses for resettling employees, etc – Չ˼ᐄุ̮ϗɝձ˕̈ Other non-operating income and expenses other than the above items 1,755,167.11 ࠇSubtotal 68,963,013.83 ᅂᚤᕘ Less: Income tax impact amount 3,455,929.74 Minority shareholder equity impact (after tax) -19,325.50 ࠇTotal 65,526,409.59 2. ϗू Earnings per share (RMB/share) ̋ᛆ̻ѩଋ༟ପ ϗूଟ (%)ϗू జѓಂлᆗ Profit for the reporting period Weighted mean Return on equity(%) Basic earnings per share Diluted earnings per share ଋлᆗ Net profit attributable to shareholders of the company 5.05 0.11 0.11 ͎ʮ̡ ଋлᆗ Net profit attributable to the common shareholders of the parent company after deducting non-recurring gains and losses 4.25 0.10 0.10 ʮ̡ ɚ´ɚʞϋɞ˜ɚɤ˚ 1. DETAILS OF EXTRAORDINARY PROFIT OR LOSS FOR THE PERIOD 2. RETURN ON NET ASSETS AND EARNINGS PER SHARE Chongqing Machinery & Electric Co., Ltd. 20 August 2025
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(a joint stock limited company incorporated in the People’s Republic of China with limited liability) (於中華人民共和國註冊成立的股份有限公司 ) Stock Code 股份代碼: 02722 僅供識別 2025 INTERIM REPORT 中期報告 CHONGQING MACHINERY & ELECTRIC CO., LTD. 重慶機電股份有限公司INTERIM REPORT 中期報告 2025