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2025 Annual Report

Minami Acoustics Limited··196 pages

✨ AI Summary

Minami Acoustics Limited reported a net loss for 2025, primarily driven by increased overseas production costs in Malaysia, higher R&D investment, and unfavorable foreign exchange fluctuations. Despite short-term performance pressure, the company is actively expanding its AI-related product portfolio, including AI glasses, headphones, and speakers. The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the current period.

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[Image: Minami logo and product icons]

Minami Acoustics Limited 2025 Annual Report

2026-029

[April 2026]

Section 1: Important Notices, Table of Contents, and Definitions

The Board of Directors, the Board of Supervisors, and the senior management of the Company guarantee the authenticity, accuracy, and completeness of the content of this annual report, confirming that there are no false records, misleading statements, or major omissions, and assume individual and joint legal liability.

Company representative Feng Yanru, person in charge of accounting Liang Ting, and head of the accounting department (accounting supervisor) Hu Liang declare: We guarantee the authenticity, accuracy, and completeness of the financial report in this annual report.

All directors attended the board meeting to review this report.

During the reporting period, the main reasons for the company's net loss were: (1) To cope with major changes in the international trade environment, the company urgently increased overseas production capacity and transferred some mass-produced projects to Malaysia, resulting in additional expenses and production efficiency losses; (2) R&D investment continued to increase to expand new customers and product lines; (3) The company's overseas sales are mainly settled in US dollars, and the unfavorable fluctuation of the US dollar against the RMB exchange rate during the period led to a significant year-on-year decrease in exchange gains.

On the other hand, against the backdrop of the rapid development and widespread application of AI technology, the demand for AI-enabled consumer electronics continues to rise. This transformation trend is expected to further expand the market space for the consumer electronics ODM industry. During the reporting period, the company continued to increase R&D investment, actively expanded new customers, and laid out new product lines, building long-term development support for the AI era through multi-point deployment. In 2025, the company successfully introduced several brand customers, with business covering AI glasses, AI headphones, AI speakers, and other fields, continuously enriching its product matrix. Overall, related businesses are still in the layout and initial stage, and their contribution to the company's overall revenue and profit is limited. Investors are advised to pay attention to investment risks.

In summary, the company's main business structure is stable, its core competitiveness has not undergone major adverse changes, and its main financial indicators are consistent with the overall industry trend. The industry in which it operates does not currently face major risks such as obvious overcapacity, continuous decline, or technological substitution. Although the company's operating performance faces certain pressure in the short term, from a long-term perspective, multiple factors such as the company's customers, products, R&D technology, manufacturing capabilities, and industry development space will provide a solid and sustainable driving force for continuous performance growth, and there is no major risk to its ability to continue as a going concern.

The forward-looking statements regarding future development plans in this report do not constitute substantive commitments by the company to investors. Investors are advised to invest rationally and pay attention to risks.

The company requests that investors read this report in its entirety and pay special attention to the risk factors faced by the company, as detailed in Section 3 "Management Discussion and Analysis," subsection "XI. Outlook on the Company's Future Development," item "4. Risks Faced in the Future."

The company does not plan to distribute cash dividends, does not plan to issue bonus shares, and does not plan to convert capital reserves into share capital.

Table of Contents

Section 1: Important Notices, Table of Contents, and Definitions 2

Section 2: Company Profile and Key Financial Indicators 8

Section 3: Management Discussion and Analysis 12

Section 4: Corporate Governance, Environment, and Society 30

Section 5: Important Matters 50

Section 6: Changes in Shares and Shareholders 76

Section 7: Information on Bonds 84

Section 8: Financial Report 85

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