Hubei Nengte Technology Co., Ltd. 2025 Annual Report Summary Securities Code: 002102 Securities Abbreviation: Nengte Technology Announcement No.: 2026-017 Hubei Nengte Technology Co., Ltd. 2025 Annual Report Summary I. Important Notice This annual report summary is derived from the full annual report. To fully understand the company's operating results, financial condition, and future development plans, investors should carefully read the full annual report on the media designated by the China Securities Regulatory Commission. All directors attended the board meeting that reviewed this report. Non-Standard Audit Opinion Notice ☑ Applicable ☐ Not Applicable The audit report on the company's 2025 financial statements issued by Daixin Certified Public Accountants (Special General Partnership) included a qualified opinion. The company's board of directors has provided detailed explanations on related matters, and investors are advised to read them carefully. Board of Directors' Resolution on Profit Distribution Plan or Capital Reserve Increase Plan for the Reporting Period ☐ Applicable ☑ Not Applicable The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital. Board of Directors' Resolution on Preferred Stock Profit Distribution Plan for the Reporting Period ☐ Applicable ☑ Not Applicable As of the end of the reporting period, the parent company had unamortized losses. The parent company's financial statements show that the accumulated undistributed profit at the end of 2025 was negative, which does not meet the conditions for cash dividend distribution. II. Basic Company Information
- Company Profile Stock Abbreviation Stock Exchange Previous Stock Abbreviation (if any) Name Registered Address Fax Nengte Technology Shenzhen Stock Exchange Guangfu Shares Contact Person and Contact Information Stock Code 002102 Board Secretary Huang Hao No. 8 Building, Chenxing Times, Chenxing North Road, Linlin North Road, Jingzhou City, Hubei Province 0716-8020666 Securities Affairs Representative Zhuang Ling No. 8 Building, Chenxing Times, Chenxing North Road, Linlin North Road, Jingzhou City, Hubei Province 0716-8020666 Telephone Email 0716-8029666 nenterzqb@163.com 0716-8029666 nenterzqb@163.com
- Brief Introduction to Principal Business or Products The company focuses on its core business of fine chemicals, optimizes its asset structure, and divests non-core assets in a timely manner to concentrate resources on strengthening its main business. It increases investment in R&D for new products and technologies, promotes technological innovation, and maintains its leading edge in specific industry segments, thereby enhancing its core competitiveness. The company's main business operations during the reporting period are as follows: (1) Pharmaceutical Intermediates Business Against the backdrop of overall industry upgrading and transformation in the pharmaceutical sector, the company's wholly-owned subsidiary, Nengte Company, continued to strengthen, supplement, and extend the production chain of its main products, Lonasitam sodium intermediate and Rosuvastatin intermediate. This aims to improve self-sufficiency in the industrial chain and withstand fierce market competition to maintain profitability. Although the price of Lonasitam sodium intermediate increased steadily in 2025, it took time to transmit to the end market, leading to overall weak market demand. The sales volume for this product for the full year was lower than expected. The market competition for Rosuvastatin intermediate was intense throughout the year, with continuously declining market prices, resulting in lower-than-expected profits for this product. Due to the lower-than-expected profits from pharmaceutical intermediates, the company recognized a goodwill impairment provision of 231 million RMB for the asset group of Nengte Company in this period. The company consistently pursues continuous R&D and cultivation of new pharmaceutical intermediate varieties in its pharmaceutical intermediate business, enriching its product portfolio and forming a multi-product development pattern. To extend the industrial chain, Nengte Company has partnered with China Merchants Group's Tianjin Institute of Pharmaceutical Research to jointly establish Tianke Pharmaceutical. This venture aims to build an API industrialization base that complies with national GMP standards and meets EU and US FDA standards, leveraging the strengths of both parties in technology, resources, talent, and industry. This collaboration aims to create an integrated R&D and production chain for pharmaceuticals. By the end of May 2024, Tianke Pharmaceutical's first API, Minoxidil, received approval from the drug regulatory authority for market launch. In 2025, Tianke Pharmaceutical officially entered its production and sales operational phase, which is expected to bring new growth points to the company. (2) Vitamin E and Intermediate Business The Vitamin E market exhibits strong industry cyclical characteristics. In 2025, Vitamin E prices were generally higher than in 2024. The company consistently adheres to prudent operations and actively seizes opportunities arising from market changes. In 2025, the Vitamin E business of the company's wholly-owned subsidiary, Nengte Company, maintained good performance with significant year-on-year growth, contributing 645 million RMB in profit to the company. (3) E-commerce and Other Businesses The company's wholly-owned subsidiary, Shanghai Sumei, possesses years of industry experience and management capabilities. It has established the "Sumei City" (sumibuy.com) B2B e-commerce platform for plastic raw materials, targeting manufacturing enterprises that use plastic raw materials. In recent years, the overall situation for manufacturing enterprises in China has been challenging, leading to intense competition in the plastic e-commerce sector and a continuous decline in gross profit margins. The company has diligently reviewed its business types and regional layout, shut down high-cost and low-profit businesses and subsidiaries, and is gradually scaling down its operations to proactively manage business risks. In 2025, the company continued to advance its strategic plan for the disposal of non-core assets and business structure optimization. The company publicly listed and transferred 100% of the equity of its wholly-owned subsidiary, Shengan Mining, and completed the equity transfer and industrial and commercial registration procedures. This transaction reduced the company's profit by 50.5311 million RMB, which is considered non-recurring income.
- Key Accounting Data and Financial Indicators (1) Key Accounting Data and Financial Indicators for the Past Three Years Does the company need to retrospectively adjust or restate previous year's accounting data? ☑ Yes ☐ No Reason for Retrospective Adjustment or Restatement Correction of Accounting Errors Unit: RMB 2025 2024 2023 Before Adjustment After Adjustment Before Adjustment After Adjustment Before Adjustment After Adjustment Total Assets 6,658,814,890.14 8,256,108,014.43 8,219,456,837.43 -18.99% 9,150,001,974.27 9,115,890,880.86 Net Assets Attributable to Shareholders of the Company 3,076,329,865.52 3,501,717,164.26 3,471,690,795.26 -11.39% 4,089,756,399.50 4,070,360,041.23 Unit: RMB 2025 2024 2023 Before Adjustment After Adjustment Before Adjustment After Adjustment Before Adjustment After Adjustment Operating Revenue 7,271,872,690.21 12,280,438,725.45 10,261,716,207.75 -29.14% 11,129,068,248.62 9,658,323,022.96 Net Profit Attributable to Shareholders of the Company 248,452,258.- 141.40% 258,738,781.- 237,620,606.- Net Profit Attributable to Shareholders of the Company After Deducting Non-recurring Gains and Losses Operating Cash Flow Net Amount Basic Earnings Per Share (RMB/share) Diluted Earnings Per Share (RMB/share) Weighted Average Return on Net Assets Reasons for Accounting Policy Change and Correction of Accounting Errors Upon internal review of the plastic trading business revenue, it was discovered that the basis for revenue recognition for plastic trading business in 2023 and 2024 was insufficient. This led to inaccuracies in the financial data and disclosures in the company's 2023 annual report and 2024 interim report. The company has corrected these prior period accounting errors and retrospectively restated the consolidated financial statements for 2023 and 2024. (2) Quarterly Key Accounting Data Unit: RMB First Quarter Second Quarter Third Quarter Fourth Quarter Operating Revenue 2,319,175,585.39 1,932,424,989.93 1,528,069,331.87 1,492,202,783.02 Net Profit Attributable to Shareholders of the Company 224,079,058.75 131,507,620.72 117,511,267.35 -224,645,688.25 Net Profit Attributable to Shareholders of the Company After Deducting Non-recurring Gains and Losses 220,610,612.64 206,734,195.59 160,026,097.83 -204,728,486.24 Net Cash Flow from Operating Activities 177,615,599.56 47,624,326.22 -136,966,887.28 -403,573,174.71 Are there any significant differences between the above financial indicators or their sums and the financial indicators disclosed in the company's quarterly reports and semi-annual reports? ☐ Yes ☑ No
- Share Capital and Shareholder Information (1) Table of Ordinary Shareholder and Preferred Shareholder Numbers with Voting Rights Restored, and Top 10 Shareholder Shareholding Information Unit: Shares Total Ordinary Shareholders at End of Reporting Period Total Ordinary Shareholders One Month Before End of Reporting Period Total Preferred Shareholders with Voting Rights Restored at End of Reporting Period Total Preferred Shareholders with Voting Rights Restored One Month Before End of Reporting Period 49,166 57,285 0 0 Top 10 Shareholder Shareholding Information (Excluding Shares Lent Through Securities Margin Trading) Shareholder Name Shareholder Nature Shareholding Percentage Number of Shares Held Number of Shares with Restricted Sale Conditions Pledged, Marked, or Frozen Status Number Hubei Jingjiang Industrial Investment Group Co., Ltd. State-owned Legal Person 13.67% 338,463,100 0 Not Applicable 0 Chen Liequan Natural Person of Chinese Nationality 9.38% 232,163,822 174,122,866 Pledged 92,600,000 Deng Hai Xiong Natural Person of Chinese Nationality 7.22% 178,674,857 128,608,690 Pledged 35,000,000 Beijing Tianyu Zehua Internet Technology Co., Ltd. Legal Person of Non-state-owned Enterprise in China 2.32% 57,550,100 0 Not Applicable 0 Jingzhou Gucheng State-owned Investment Co., Ltd. State-owned Legal Person 1.26% 31,190,500 0 Not Applicable 0 Hong Kong Central Clearing Limited Foreign Legal Person 1.11% 27,383,663 0 Not Applicable 0 Yan Xiaoping Natural Person of Chinese Nationality 1.09% 26,946,036 0 Not Applicable 0 Liu Feida Natural Person of Chinese Nationality 1.08% 26,829,720 0 Not Applicable 0 Liu Wenqiang Natural Person of Chinese Nationality 1.02% 25,260,000 0 Not Applicable 0 Wang Jian Natural Person of Chinese Nationality 1.02% 25,230,062 0 Not Applicable 0 Description of Relationship Between the Above Shareholders or Statement on Whether They Are Acting in Concert Hubei Jingjiang Industrial Investment Group Co., Ltd. and Mr. Deng Hai Xiong are acting in concert. The relationship between other shareholders and whether they are acting in concert is unknown. Description of Shareholder Participation in Securities Margin Trading (if any) Not Applicable Information on Shareholders Holding More Than 5% of Shares, Top 10 Shareholders, and Top 10 Shareholders with Tradable Shares Lent Through Securities Margin Trading ☐ Applicable ☑ Not Applicable Changes in Top 10 Shareholders and Top 10 Shareholders with Tradable Shares Lent Through Securities Margin Trading Due to Lending/Repayment of Shares Through Securities Margin Trading Compared to the Previous Period ☐ Applicable ☑ Not Applicable (2) Table of Total Preferred Shareholders and Top 10 Preferred Shareholder Shareholding Information ☐ Applicable ☑ Not Applicable 5 Hubei Nengte Technology Co., Ltd. 2025 Annual Report Summary The company has no preferred shareholders during the reporting period. (3) Disclosure of Equity and Control Relationship Between the Company and Its Actual Controller in a Box Diagram Format Jingzhou Municipal People's Government State-owned Assets Supervision and Administration Commission 100% Jingzhou State-owned Capital Investment and Development Group Co., Ltd. 100% Jingzhou Urban Development Investment Group Co., Ltd. 100% Hubei Jingjiang Industrial Investment Group Co., Ltd. 13.67% Deng Hai Xiong (Voting rights entrusted to Jingjiang Industrial) 7.22% Acting in Concert with Controlling Shareholder Guangzhou Haishou Enterprise Management Consulting Center 0.55% Hubei Nengte Technology Co., Ltd.
- Regarding Bonds Outstanding as of the Date of Approval of This Annual Report ☐ Applicable ☑ Not Applicable III. Important Matters
- The company will use its own funds and raised funds totaling not less than RMB 30,000 million (inclusive) and not exceeding RMB 50,000 million (inclusive) to repurchase some of the company's shares through centralized bidding transactions on the Shenzhen Stock Exchange. The repurchase price will not exceed RMB 4.70 per share (inclusive). The repurchased shares will be cancelled to reduce the registered capital accordingly. The implementation period is from July 19, 2025, to July 18, 2026. The specific number of shares repurchased will be based on the actual number of shares repurchased upon completion of the repurchase plan. As of April 27, 2026, Hubei Nengte Technology Co., Ltd. had cumulatively repurchased 75,718,100 shares through centralized bidding transactions in its dedicated repurchase securities account. This repurchase volume accounts for 3.06% of the company's current total share capital (2,475,626,790 shares).
- Regarding the Jiangsu Yingshi Internet Information Technology Co., Ltd. case within the original Lin family's illegal bill of exchange case, the Fujian Provincial Higher People's Court made a final ruling on April 29, 2025: "① Tongfu Company and Guangfu Company shall pay Yingshi Company the bill of exchange amount of RMB 60 million and interest within ten days from the effective date of this judgment (interest calculated at an annual rate of 6% from September 28, 2018, to August 19, 2020, and at the annual loan market quotation rate announced by the National Interbank Funding Center, i.e., 3.85% per annum, from August 20, 2020, to the actual payment date). ② The first and second instance case acceptance fees of RMB 366,588.7 each shall be jointly borne by the appellants Tongfu Company and Guangfu Company." The Quanzhou Intermediate People's Court's enforcement bureau has seized and frozen the company's corresponding assets. The company is actively cooperating with the Quanzhou Intermediate People's Court's enforcement bureau to formulate an enforcement plan. To protect the interests of all shareholders, the company has also applied to the Fujian Provincial People's Procuratorate for supervision, which has been accepted. 7