002017SZSE

2025 Board of Directors Work Report

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The 2025 Board of Directors Work Report reviews the company's achievements in deepening state-owned enterprise reform and fostering new quality productive forces. Key outcomes include significant growth in revenue and net profit, enhanced governance, and strategic positioning for future development. The report outlines plans for 2026, focusing on quality and efficiency improvements, strategic deployment, and talent development to drive high-quality growth and shareholder value.

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2025 Board of Directors Work Report

In 2025, the company entered a critical year for deepening state-owned enterprise reform and accelerating the cultivation of new quality productive forces, serving as a pivotal year for concluding the "14th Five-Year Plan" and initiating the "15th Five-Year Plan." Facing a complex and severe external environment and profound industry landscape changes, the Board of Directors adhered to its core responsibilities of strategic guidance, decision-making, and risk prevention. By upholding service to national strategies, focusing on enhancing core functions and competitiveness, the Board led all employees to overcome challenges, successfully completing annual objectives. The company achieved steady and quality growth in business performance, continuous optimization of governance efficiency, a continuously strengthened foundation for development, and comprehensive breakthroughs in value creation, demonstrating new achievements in high-quality development. The 2025 work report and 2026 plan are as follows:

I. Deepening Strategic Guidance, Anchoring Direction for Stable and Quality Advancement

In 2025, the Board of Directors guided the overall strategy with a forward-looking perspective, firmly grasping opportunities in digital transformation and industrial upgrading. It consolidated its core business advantages, expanded into emerging sectors, and fully demonstrated its strategic leadership.

(I) Upholding Strategic Positioning, Clarifying Development Direction

The company is committed to its strategic goal of becoming a globally leading provider of digital identity security products and solutions. Leveraging its role as a national champion in a single manufacturing sector, it adheres to the strategy of consolidating its core smart card business, strengthening system platform software, expanding into new and emerging industry applications, and enhancing the smart IoT terminal business. By optimizing resource allocation and extending the business chain, it is driving the iterative upgrading of digital security technology systems, continuously enhancing core competitiveness.

(II) Successful Conclusion of the "14th Five-Year Plan," Accumulating Strength for a Solid Foundation

The "14th Five-Year Plan" period was extraordinary. Over the past five years, the company maintained strategic focus, pursued reform and innovation with determination, and successfully achieved its planned objectives. Revenue grew by 30%, net profit increased by over 300%, return on equity and labor productivity both doubled. Core business advantages were further consolidated, innovation capabilities significantly improved, market presence continuously expanded, and operational quality and efficiency steadily advanced. The blueprint was turned into reality, accumulating strength and laying a solid foundation for the company's high-quality development.

(III) Initiating the "15th Five-Year Plan," Enhancing Strategic Capabilities for a New Journey

Based on the new development stage, the Board of Directors actively aligned with national strategies and industry trends, enhancing strategic capabilities and scientifically planning the development blueprint for the "15th Five-Plan." Promoting the mutual reinforcement of domestic and international dual circulation, it implemented a "deep cultivation + new expansion" dual-wheel drive strategy. It will deeply cultivate traditional advantageous areas, tackle key core technologies, accelerate the construction of a full-stack innovation system encompassing "cloud, edge, terminal, and chip," and foster a second growth curve, laying a solid strategic foundation for long-term sustainable development.

II. Strengthening Standardized Operations, Enhancing Board Effectiveness

In 2025, the Board of Directors focused on improving operational quality, refining the governance system, standardizing decision-making procedures, and strengthening supervision, thereby comprehensively solidifying the company's governance foundation.

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