意见反馈 手机随时随地看行情
  • 公司公告

公司公告

盈峰环境:2022年年度报告(英文版)2023-05-23  

                        Infore Environment Technology Group
              Co., Ltd.

        2022 Annual Report




              April 2023
                         2022 Annual Report
      Part I Important Notice, Table of Contents and Definitions

    The Board of Directors, the Board of Supervisors as well as the directors,
supervisors and senior management of Infore Environment Technology Group
Co., Ltd. warrant that the information in this report contains no
misrepresentations, misleading statements or material omissions, and jointly

and severally accept liability for the truthfulness, accuracy and completeness
of information in this report.

    Ma Gang, the Company's legal representative, Wang Qingbo, the
Company's principal officer in charge of accounting, and Wu Shanshan, the
principal officer of the Company's accounting division (head of accounting)
warrant that the financial statements contained in this report are truthful,
accurate and complete.
    All directors of the Company attended the Board meeting to review this
report.

     Any forward-looking statements such as future plans mentioned in this

report shall not be considered as promises to investors. Investors are advised to

pay attention to possible investment risks.

    The Board has approved a proposal for dividend plan as follows: based on
the total share capital (minus shares in the Company's repurchase account) on
the date of record for the 2022 final dividend plan, a cash dividend of RMB

1.10 (tax inclusive) per 10 shares will be distributed to the shareholders, with
no bonus issue from either profit or capital reserves.


                                         1
                                             CONTENTS

Part I Important Notice, Table of Contents and Definitions ................................... 1


Part II Company Profile and Principal Financial Indicators ................................. 5


Part III Management Discussion and Analysis ...................................................... 11


Part IV Corporate Governance................................................................................ 44


Part V Environmental and Social Responsibility ................................................... 69


Part VI Significant Events ........................................................................................ 81


Part VII Share Changes and Shareholder Information ........................................ 95


Part VIII Information on Preference Shares ........................................................ 104


Part IX Information on Bonds ............................................................................... 105


Part X Financial Report.......................................................................................... 109




                                                          2
                        Documents Available for Reference

    (I) Financial statements with signatures and seals of the legal representative of the Company,

principal officer in charge of accounting and principal officer of the accounting division.


    (II) Original audit report with the seal of the accounting firm, and signed and stamped by

certified public accountants (CPAs).


    (III) Originals of all corporate documents and announcements publicly disclosed on the

website designated by the China Securities Regulatory Commission (CSRC) during the reporting

period.


    The originals and legally effective photocopies of the aforesaid documents are available at the

Company and the stock exchange for inspection by investors.




                                                  3
                                       Definitions
                  Term                means                                Definition
Company, the Company, Infore Enviro   means       Infore Environment Technology Group Co., Ltd.
Zoomlion Environmental                means       Changsha Zoomlion Environmental Industry Co., Ltd.
Infore Technology                     means       Guangdong Infore Technology Co., Ltd.
Shangfeng, Shangfeng Industrial
                                      means       Zhejiang Shangfeng Special Blower Industrial Co., Ltd.
Company
Green Oriental Company                means       Shenzhen Green Oriental Environmental Protection Co., Ltd.
CSRC                                  means       China Securities Regulatory Commission
SZSE                                  means       Shenzhen Stock Exchange
                                                  General Meetings of Shareholders of Infore Environment
General Meetings of Shareholders      means
                                                  Technology Group Co., Ltd.
                                                  Board of Directors of Infore Environment Technology Group
Board of Directors, the Board         means
                                                  Co., Ltd.
                                                  Board of Supervisors of Infore Environment Technology
Board of Supervisors                  means
                                                  Group Co., Ltd.
Company Law                           means       Company Law of the People's Republic of China
Securities Law                        means       Securities Law of the People's Republic of China
                                                  Articles of Association of Infore Environment Technology
Articles of Association               means
                                                  Group Co., Ltd.




                                              4
         Part II Company Profile and Principal Financial Indicators

I. Company Profile

 Abbreviated stock name             Infore Enviro                         Stock code                     000967
 Stocks listed on                   Shenzhen Stock Exchange
 Chinese name                       盈峰环境科技集团股份有限公司
 Chinese abbreviated name           盈峰环境科技集团
 Foreign name (if any)              Infore Environment Technology Group Co., Ltd.
 Legal representative               Ma Gang
                                    No. 1818 Renmin West Road, Dongguan Subdistrict, Shangyu District, Shaoxing City, Zhejiang
 Registered address
                                    Province
 Postal code                        312300
                                    On February 29, 2016, the Company changed its registered address to No. 1818 Renmin Road
 Historical updates to
                                    West, Dongguan Subdistrict, Shangyu District, Shaoxing City, Zhejiang Province, from Shangpu
 registered address
                                    Town, Shangyu City, Zhejiang Province.
                                    23/F, Infore Center, No. 7-8 Yixing Road, Xincheng Area, Beijiao Town, Shunde District,
 Office address
                                    Foshan City, Guangdong Province
 Postal code                        528300
 Company website                    www.inforeenviro.com
 Email                              inforeenviro@infore.com


II. Contact Details

                                                    Board Secretary                               Securities Representative
 Name                               Jin Taotao                                         Wang Fei
                                    23/F, Infore Center, No. 7-8 Yixing Road,          23/F, Infore Center, No. 7-8 Yixing Road,
 Address                            Xincheng Area, Beijiao Town, Shunde                Xincheng Area, Beijiao Town, Shunde District,
                                    District, Foshan City, Guangdong Province          Foshan City, Guangdong Province
 Telephone                          0757-26335291                                      0757-26335291
 Fax                                0757-26330783                                      0757-26330783
 Email                              wangyf@infore.com                                  wangyf@infore.com


III. Information Disclosure and Access

 Stock exchange website on which the
                                                 Shenzhen Stock Exchange: http://www.szse.cn/
 report is published
 Publications and websites on which the          China Securities Journal, Shanghai Securities Journal, Securities Times, Securities
 report is published                             Daily, and Cninfo (http://www.cninfo.com.cn/)
                                                 Securities Department, 23/F, Infore Center, No. 7-8 Yixing Road, Xincheng Area,
 Place where the report is lodged
                                                 Beijiao Town, Shunde District, Foshan City




                                                                      5
IV. Changes to Registered Information

 Unified Social Credit Code       913300006096799222
                                  Since its listing in 2000, the Company has changed the scope of its business five times. Scope of
                                  business as at November 18, 1993: the research, development and production of ventilators, air-
                                  cooling and water-cooling equipment, air conditioners, refrigerators, quick-freezing equipment,
                                  molds and power generators. Export (refer to the documents of approval from the Ministry of
                                  Foreign Trade and Economic Cooperation for details): on July 2, 2002, the scope of business
                                  expanded to include "metal and plastic-steel composite pipes and profiles". On November 14,
                                  2003, the scope of business expanded to include "environmental engineering". On February 29,
                                  2016, a strategic transformation led to an expansion of the Company's scope of business to: the
                                  R&D, maintenance and operation of environmental monitoring instruments; the development of
                                  as well as and consultancy and other services for environmental management technologies; the
                                  operation of environmental management facilities; environmental engineering; environmental
                                  conservation engineering; municipal engineering; the design and implementation of water
                                  conservancy and other water-related projects; the development of and services for technologies
                                  for water pollution control, water treatment and ecological restoration; the R&D, sales and
                                  relevant technology consultation for communication products, network products, mechatronic
                                  products, automation control products, buildings and smart community products; and the design,
                                  development, investment, operation, management and technical consultancy for the disposal and
 Changes to the Company's         recycling of municipal and solid waste and relevant supporting facilities; the sales of ventilators,
 principal activities since its   air-cooling and water-cooling equipment as well as air conditioners; the operation of import and
 listing (if any)                 export businesses, industrial investment, investment management, asset management and
                                  investment consulting. On May 18, 2016, "investment, the operation of import and export
                                  businesses, industrial investment, investment management and asset management" were
                                  removed from the Company's scope of business. On June 28, 2019, the Company's scope of
                                  business was updated to: the R&D, manufacturing, sales, technology consultation, maintenance
                                  and operation of sanitation equipment, specialized industrial robots, new energy vehicles,
                                  environmental monitoring equipment, special equipment for environmental protection and
                                  automobile charging equipment and parts; the leasing, design, operation, management,
                                  technological development and services for the disposal and recycling of municipal and solid
                                  waste and relevant supporting facilities; the design, construction, operation, management,
                                  technological development and services for environmental engineering, municipal engineering,
                                  landscape engineering, electrical engineering, water conservancy and other water-related
                                  projects, water pollution control, air pollution control and soil remediation; the commercial
                                  cleaning, collection, transportation and treatment (based on license) of urban solid waste; the
                                  development, technological consultation and services for environmental protection, IoT and
                                  Internet technologies; the R&D and sales of software; the sales of ventilators, air-cooling and
                                  water-cooling equipment as well as air conditioners; import and export businesses; and
                                  investment consultation.
                                  1. In 2000, the Company went public, and its largest shareholder was Zhejiang Fan and Air-
                                  cooling Equipment Co., Ltd. 2. On February 23, 2006, the former controlling shareholder of the
                                  Company, Zhejiang Shangfeng Industry Group Co., Ltd., and the Company's shareholder, Midea
                                  Group Co., Ltd., transferred their respective stocks of 9,575,027 shares and 24,897,984 shares to
                                  Guangdong Infore Group Co., Ltd. Guangdong Infore Group Co., Ltd. became the Company's
                                  largest shareholder. 3. On August 5, 2008, the Company's controlling shareholder, Guangdong
 Changes to the Company's         Infore Group Co., Ltd. changed its name to "Guangdong Infore Holding Investment Group Co.,
 controlling shareholders since   Ltd." 4. On September 30, 2010, Guangdong Infore Holding Investment Group Co., Ltd.
 its incorporation (if any)       changed its name to "Infore Holding Investment Group Co., Ltd." The latter became the
                                  Company's controlling shareholder. 5. On January 4, 2019, the private placement of new shares
                                  for the purchase of new assets was made and the Company issued 1,017,997,382 shares to
                                  Ningbo Infore Asset Management Co., Ltd. to acquire its 51% equity interest in Zoomlion
                                  Environmental. Ningbo Infore Asset Management Co., Ltd. became the Company's largest
                                  shareholder. As at the end of the reporting period, the Company's controlling shareholder was
                                  Ningbo Infore Asset Management Co., Ltd.




                                                                 6
V. Other Relevant Information

The accounting firm engaged by the Company

 Name of accounting firm                 Pan-China Certified Public Accountants LLP (Special General Partnership)
                                         27/F, Run'ao Business Center (T2), Qianjiang Century CBD, Xiaoshan District, Hangzhou
 Office address of accounting firm
                                         City, Zhejiang Province
 Authorized signatories                  Bian Shanshan, and Wei Xiaohui

The sponsor engaged by the Company to exercise constant supervision over the Company during the reporting period
Applicable         Not applicable

            Sponsor                      Sponsor's office address               Representative                 Supervisory period
                                    Huaxing Securities, 2301, Raffles
                                    City The Bund East Tower, No.
 Huaxing Securities Co., Ltd.                                             Li Zeming, Zheng Zaoshun          2022
                                    1089 Dongdaming Road, Hongkou
                                    District, Shanghai
The financial advisor engaged by the Company to exercise constant supervision over the Company during the reporting period
Applicable         Not Applicable


VI. Major Accounting Data and Financial Indicators

Whether the Company needs to retrospectively adjust or restate accounting data in previous years
Yes No
Reasons for retrospective adjustment or restatement
Changes in accounting policy


                                                        2021                  YoY change                        2020
                            2022              Pre-
                                                          Post-adjustment    Post-adjustment       Pre-adjustment    Post-adjustment
                                           adjustment
 Operating             12,255,992,938.    11,813,537,44   11,866,291,611.                          14,332,025,075    14,332,025,075
                                                                                      3.28%
 revenue (RMB)                      42             4.48               45                                       .40               .40
 Net profit
 attributable to
 the listed                              728,467,910.4                                             1,386,476,099.      1,386,476,099.
                        418,794,179.13                     752,792,198.66           -44.37%
 company's                                           2                                                        73                  73
 shareholders
 (RMB)
 Net profit
 attributable to
 the listed
 company's
                                         532,726,168.3                                             1,432,219,046.      1,432,219,046.
 shareholders           324,753,411.18                     557,050,456.60           -41.70%
                                                     6                                                        72                  72
 after non-
 recurring gains
 and losses
 (RMB)
 Net cash flows
 from operating        1,662,482,287.7   809,218,720.1                                             1,688,714,091.      1,688,714,091.
                                                           809,218,720.13          105.44%
 activities                          1               3                                                        75                  75
 (RMB)


                                                                    7
 Basic earnings
 per share                          0.13             0.23                0.24           -45.83%                 0.44             0.44
 (RMB/share)
 Diluted
 earnings per
                                    0.13             0.23                0.24           -45.83%                 0.44             0.44
 share
 (RMB/share)
 Weighted
 average return                 2.41%              4.33%                4.51%              -2.10%            8.62%              8.62%
 on equity
                                                 December 31, 2021                YoY change                December 31, 2020
                        December 31,
                           2022                Pre-
                                                            Post-adjustment     Post-adjustment     Pre-adjustment     Post-adjustment
                                            adjustment
 Total assets          29,271,291,859.     28,332,009,62     28,362,883,652                         30,110,536,990     30,110,536,990
                                                                                           3.20%
 (RMB)                              98              8.13                 .30                                   .88                .88
 Net assets
 attributable to
 the listed            17,288,602,018.     16,903,241,70     16,927,565,990                         16,920,214,085     16,920,214,085
                                                                                           2.13%
 company's                          09              2.09                 .33                                    .42                .42
 shareholders
 (RMB)

Reasons for changes in accounting policy and corrections of accounting errors

     Starting from January 1, 2022, the Company has adopted the provisions on accounting for sales of products or by-products
produced before the fixed asset is ready for its intended use or during the R&D process, set out in the Interpretation of China
Accounting Standards for Business Enterprises No. 15 issued by the MOF, and applied these provisions retrospectively to the sales
of trial operation that occurred between the beginning of the earliest period presented in the financial statements and January 1,
2022.
     The lower of the net profit before and after non-recurring gains and losses is negative for the last three accounting years, and
the latest auditor's report shows there is uncertainty as to the Company's ability to continue as a going concern.

Yes No
The lower of the net profit before and after non-recurring gains and losses is negative.
Yes No


VII. Accounting Data Differences Arising from Domestic/Overseas Accounting Standards

1. Differences in net profit and net assets under China Accounting Standards and International
Accounting Standards

Applicable         Not Applicable
No such differences during the reporting period.


2. Differences in net profit and net assets under China Accounting Standards and Overseas Accounting
Standards

Applicable         Not Applicable
No such differences during the reporting period.




                                                                    8
VIII. Quarterly Key Financial Indicators

                                                                                                                       Unit: RMB

                                                Q1                        Q2                   Q3                       Q4
 Operating revenue                         2,822,730,007.65          2,846,011,416.84     2,750,321,825.31         3,836,929,688.62
 Net profit attributable to the listed
                                             141,498,457.27           183,213,831.62        198,562,482.06         -104,480,591.82
 company's shareholders
 Net profit attributable to the listed
 company's shareholders after non-           119,491,513.27           168,617,465.61        177,023,669.56         -140,379,237.26
 recurring gains and losses
 Net cash flows from operating
                                            -533,382,264.09           725,338,426.88        -25,714,879.22         1,496,241,004.14
 activities

Whether the financial indicators above or their sums differ materially from those in the Company's disclosed quarterly and interim
reports
Yes No


IX. Non-recurring Gains and Losses Items and Amounts

Applicable      Not applicable

                                                                                                                       Unit: RMB

                 Item                          2022                      2021                 2020                     Note
 Gain or loss for the disposal of
 non-current assets (inclusive of
                                               -2,289,681.16            6,337,251.97        -42,036,810.26    --
 provisions to write off impaired
 assets)
 Tax rebates, reductions and
 exemptions granted ultra vires or
                                               1,004,379.44             3,768,945.18            621,422.30    --
 without official documents of
 approval
 Government subsidies recognized
 as gain or loss during the
 reporting period (exclusive of
 government subsidies given in the
                                              80,268,041.82            55,341,877.03         42,047,479.15    --
 Company's ordinary course of
 business at fixed quotas or
 amounts as per the government's
 policies or regulations)
 Capital collected from non-
 financial enterprises that was
                                               1,280,730.46             3,173,551.55         22,117,071.89    --
 recognized as gain or loss during
 the reporting period
                                                                                                              Income from wealth
 Gain or loss on entrusting other
                                                                                                              management
 parties with investment or asset             19,091,108.25            29,170,261.66         23,771,715.03
                                                                                                              products: RMB
 management
                                                                                                              19,091,108.25.
 Gain/loss on debt restructuring               -5,380,200.00                                                  --
 Gain or loss arising from changes
 in fair value of financial assets                                     -79,222,823.84       -90,608,285.06    --
 and financial liabilities held for


                                                                 9
 trading as well as the disposal of
 financial assets and financial
 liabilities held for trading and
 financial assets available for sale
 (exclusive of effective hedges that
 arise in relation to the Company's
 ordinary business operations)
 Operating revenue and expenses
                                                  2,164,235.04             2,598,028.75          -7,514,468.68    --
 other than the above items
 Other gains and losses that fall
 into the definition of non-                     19,785,940.63           172,459,718.81             839,195.26    --
 recurring gains and losses
 Less: Income tax                                22,153,064.81            -8,007,245.43          -8,391,224.21    --
 Minority interest affected (after
                                                   -269,278.28             5,892,314.48           3,371,490.83    --
 tax)
 Total                                           94,040,767.95           195,741,742.06         -45,742,946.99             --

Details on other gains and losses that fall into the definition of non-recurring gain/loss:
Applicable      Not applicable

     Other gains and losses are primarily gains of RMB 429,102.26 from the refund of personal income tax withholding fees,
gains of RMB 17,460,524.12 from the additional deduction of input VAT, gains of RMB 51,896,314.25 from the re-measurement
at fair value of the controlling stake in Lianjiang Green Oriental Environmental New Energy Co., Ltd., and losses of RMB
50,000,000.00 from the reversal of performance compensation to the original shareholders of Green Oriental Company.

Explanation of classification of non-recurring gains and losses listed in the Explanatory Announcement No. 1 on Information
Disclosure by Companies Offering Securities to the Public — Non-recurring Gains and Losses as recurring gains and losses
Applicable      Not applicable

                 Item                          Amount Involved (RMB)                                     Reason
                                                                                    Regular government subsidies given in the
                                                                                    Company's ordinary course of business at fixed
 Value-added tax rebate                                          18,822,951.14
                                                                                    quotas or amounts as per the government's policies
                                                                                    or regulations
                                                                                    Regular government subsidies given in the
                                                                                    Company's ordinary course of business at fixed
 Subsidy for sludge disposal                                       2,584,059.14
                                                                                    quotas or amounts as per the government's policies
                                                                                    or regulations




                                                                    10
                      Part III Management Discussion and Analysis

I. Industry Performance During Reporting Period

     1. Overview of the Smart Sanitation Industry
     2022 marked the convening of the 20th CPC National Congress and was a crucial year for implementing China's 14 th Five-
Year Plan. The CPC Central Committee, State Council, state ministries and commissions issued and refined a range of sanitation-
related policies and standards, promoting the industry's marketization. The urban service market maintained robust momentum
thanks to the sanitation marketization reform and the "urban steward" model. Driven by policy incentives, demand for
environmental protection equipment remained high, indicating a positive outlook over the long term. However, the market
experienced a continued decline from the previous year due to macroeconomic challenges.
     In 2023, the sanitation market is expected to further expand, as new energy sanitation approaches an economic inflection
point. Numerous policies and implementing plans are anticipated to facilitate municipal governments in sanitation, leading to full
marketization of the sanitation sector. Smart sanitation is an essential item of government spending, as it is closely related to
people's livelihoods. The sector's long-term growth is not entirely connected with short-term economic volatility, and it is tied to
long-term economic trends, policy directives, environmental requirements, and people's living standards.
     2. Development Trends
     (1) Steady progress in marketization and gradual concentration of industry leaders
     The marketization of China's urban service industry refers to municipal governments' gradual withdrawal from the actual
management and operation in the sanitation industry and a shift toward an operational model in which the government procures
services from eligible service providers through open tenders. Under this model, local governments make use of the competitive
market, exercise special supervision and use other means to effectively boost the service efficiency and quality of urban service
providers. The government's ongoing investment and introduction of favorable policies that promote urban environmental
development have expanded the domestic urban service industry's potential for growth.
     The marketization of China's domestic sanitation sector will further expand the industry's room for growth in the future.
Players in the sanitation industry with competitive advantages such as good connections with the government, capital,
management experience, strong brand effects and cost synergy are well positioned to seize the opportunities from the current wave
of marketization, to achieve rapid growth. China's urban service industry is set for growth in the future. Increasing market
concentration is also expected.
     (2) Rapid development of IoT and increased adoption of smart sanitation
     In addition to having huge growth potential, the sanitation industry has to cope with a wide range of challenges, including
challenges in operating and supervising a great number of vehicles and equipment, managing numerous and dispersed personnel,
managing infrastructure across districts, and monitoring and assessing widely-dispersed operating areas. The industry is
characterized by numerous practitioners, wide service areas, and massive tasks. To overcome these challenges, it should prioritize
efforts to optimize its service portfolio, such as adopting sanitation facilities powered by IT. In this context, smart sanitation is
emerging as a trend in the sanitation management industry. Through the IoT-powered Smart Sanitation Cloud Platform, the
Company monitors sanitation operations in real-time. It is capable of 24/7, all-round, seamless, precise, and efficient operation,
maintenance, supervision, and management of service personnel, vehicles, objects, and events. This contributes to a holistic
enhancement of urban governance and public services.




                                                                  11
     (3) New opportunities from environmental protection equipment powered by new energy and smart technologies
     As China advances ecological construction, achieving carbon peak and neutrality has been included in the national plan for
ecological endeavors. Against this backdrop, new energy-powered sanitation vehicles, an important segment of public service
vehicles, will drive industry growth by enabling low-noise, zero-emissions and effective environmental protection. The increased
adoption of 5G sanitation robots, autonomous sanitation vehicles, and small smart sanitation robots continues to expand the
frontiers of the environmental protection equipment sector, and these fields have a very promising market. The future of
urban/rural services is increasingly steered toward one that is smart, requires less or even no human labor. Small intelligent
equipment and autonomous vehicles will present the next breakthrough. As the smart sanitation market expects environmental
protection equipment to be increasingly intelligent and energy-efficient, companies with more technological achievements and
stronger R&D capabilities will gain a bigger market share.




     For a detailed analysis on the industry, please refer to Discussion and Analysis on the Future Development of the Company.


II. Principal Business During the Reporting Period

     1. Principal activities
     Infore Enviro is a leading investor and operator in the urban service industry. With "smart sanitation" at the core of its
business, the Company employs a flexible business model for investment and operation and integrates new energy equipment,
autonomous vehicles and other smart environmental protection equipment with a smart platform that is powered by IoT, big data
and advanced industry-specific technologies to improve segmented full cycle dynamic control. The Company provides customers
with integrated IoT applications and a smart platform for operations and services across the full life cycle in areas such as cleaning
and disinfection in urban and rural areas, domestic waste sorting, collection, transportation and disposal of solid waste, personnel
management, collection and transportation of food waste, supervision of dirt transportation, leachate treatment and smart city
development.
     In 2022, the Company rapidly enhanced its competitiveness in urban services, topping the industry rankings in terms of
annual increase in contract value. The Company also ranked first in terms of sales of environmental protection equipment for the
22nd consecutive year.
     2. Principal products



                                                                  12
     In terms of intelligent equipment, leveraging its leading position in the environmental protection equipment industry, strong
R&D and manufacturing capabilities and a well-established nation-wide sales network, the Company forged a comprehensive suite
of environmental protection equipment of over 400 models, providing customers with a wide range of solutions including a variety
of sanitation and cleaning equipment, waste collection and transportation equipment, and new and clean energy environmental
protection equipment. The Company's range of products spans from 5G sanitation robots, autonomous sanitation vehicles, small
smart sanitation robots, new energy-powered environmental protection equipment, waste collection and transportation equipment,
separate stations to sanitation and cleaning equipment, showcasing its leading R&D capabilities in intelligent equipment.




     Smart Sanitation Cloud Platform is a big data smart cloud platform developed in-house and a pioneering platform in China's
sanitation industry that encompasses the full industrial chain. The platform is worth RMB 180 million, supported by over 20 smart
sanitation-related copyrighted software and patents and integrating 5G, AI, big data, cloud computing, edge computing and other
advanced technologies to form an immersive framework and develop core technologies such as integrated IoT applications, data
communication, video command and control, safe driving tests, IoT software and hardware compatible technologies and big data
applications. Through the platform, the Company can monitor all environmental sanitation service personnel, vehicles, objects,
and events on a real-time basis. The Company has designed robust sanitation management models to boost operating quality,
reduce operating costs, and make sanitation management effective through statistical data and assessments.
     At present, the platform is providing intelligent services for more than 70,000 products of customers across China, with over
30,000 daily active users. In the future, the Company will continue to apply digital technologies and create innovative intelligent
equipment and smart service. Moreover, through in-depth integration into smart city development, it will continuously boost
application of smart corporate cloud platforms to become a leader and enabler in digital transformation of the environmental
sanitation sector by dint of intelligence.




                                                                 13
     In terms of smart services, the Company's "Environmental Sanitation APP" enables remote monitoring, data collection and
procedural approval for its line-up of smart equipment and products during operations. Through visualized data and automatic
analysis, the Smart Sanitation Cloud Platform is capable of digitalized equipment management, sophisticated process management,
and quantified materials management. This drives a digitalized, intelligent, IT-based, and integrated management approach
throughout the entire sanitation process.
     3. Technology accumulation and innovation
     (1) Cumulative R&D capabilities
     Infore Enviro's R&D team of environmental protection equipment comprises experts from national research institutions,
having a powerful innovation DNA. The Company owns 944 patents, including 517 utility patents, 338 utility model patents, and
89 design patents. It leads the industry in terms of the number of technical and utility patents. Many national, industry, and local
standards have been made under the direction of Infore Enviro. With provincial research centers, the Company has been
recognized as a National Intellectual Property Competitive Enterprise and received numerous awards, including the China Patent
Excellence Award, China Machinery Industry Science and Technology Award, Hunan Provincial Science and Technology
Progress Award, and Huaxia Construction Science and Technology Award. It has obtained the first autonomous drive test license
in sanitation. Furthermore, the Company was identified by the Ministry of Industry and Information Technology (MIIT) as a
leading enterprise with key tasks in new-generation AI industry innovation, making it a top player in China's AI domain and a
member of the "national team" of smart sanitation robot innovators.
     During the reporting period, the Company invested RMB 364 million in R&D, a 25.63% increase year-on-year (YoY). In
2022, it continued to improve and innovate in product tech, with 231 patent applications, including 102 utility patents, 109 utility
model patents, and 20 design patents.
     (2) Innovation of cloud platform
     Smart Sanitation Cloud Platform is a big data smart cloud platform that was developed in-house by the Company. By
integrating advanced underlying technologies such as big data, cloud computing, IoT, mobile Internet and AI into the platform, the
Company developed core technologies such as integrated IoT applications, data communication, video command and control, safe
driving tests, IoT software and hardware compatible technologies and big data applications. The seamless integration of
environmental protection equipment and operations allows the platform to achieve real-time connectivity between urban service
personnel, vehicles, objects, and events as well as standardized, digitalized and smart operation and management. In terms of
smart governance, the Company established a digital operation and management system for plants, stations and equipment on the
cloud platform. Through smart and safe operation that requires less labor and energy consumption, the Company strives to develop
competitive advantages with smart governance.
     The platform is supported by over 20 smart sanitation-related software copyrights and patents and has won accolades such as
the MIIT's 2019 Pilot Demonstration of the Integration of Key Industries and the Internet, 2021 Outstanding Cases of Mobile IoT,
2021 Excellent Industrial App of Hunan, 2022 Changsha's Key R&D Project  Garbage Classification Collection and
Transportation System Based on Image Recognition and CNN Deep Learning Algorithm and 2022 Changsha Torch Plan for
Intelligent Vehicle Industry Ecosystem. The platform has provided smart services to over 70,000 products of customers.
     (3) Leader in new energy



                                                                 14
     Pioneering the development of new energy in the sanitation industry, the Company offers the most comprehensive portfolio
of new energy products in the industry. Infore Enviro started the research and development of new energy-powered environmental
protection equipment in 2007 and successfully developed the first pure-electric sweeper truck in China in July 2008. The
Company was tasked with the cleaning and sanitation of the streets during the 2008 Beijing Olympics. Three decades of sustained
R&D in sanitation vehicles and over a decade of hard work have led Infore Enviro into developing over 40 types of new energy
vehicles for cleaning, washing, waste collection and urban sanitation. Its nearly 200 vehicle models form the most comprehensive
suite of new energy-powered sanitation vehicles in China.
     During the reporting period, the Company launched its fifth generation of new energy-powered environmental protection
equipment, as the industry's most comprehensive range of products, including over 100 varieties that cover road sweeping and
washing, garbage transportation, urban landscape, solar power cleaning, and mobile charging. Additionally, it unveiled the
industry's first domain controller platform to fully integrate the chassis-control system of the chassis and upper installation, with
platformized hardware, integrated software, modular functionality and scene-based products. The Company has reduced system
costs by 9% while increasing system performance by 15%, leading the innovative development of new energy sanitation. This
helps customers cut lower purchasing and operating costs.
     (4) Pioneer in smart sanitation robots
     The Company has independently developed over 10 models of smart sanitation robots (both basic and 5G smart models are
available) and offers the most comprehensive suite of cutting-edge smart sanitation robots in the market. The entire series of
products are integrated with core technologies such as green new energy, 5G+AIOT cluster control, AI, machine vision, and 360-
degree image recognition and are equipped with sensors such as laser radar, ultrasonic radar, high precision differential GPS, 360-
degree cameras, allowing for smart robotic operations and smart navigation as well as paving the way for a more diverse
operational capacity in a wide range of locations and scenarios. The Company's first "5G Cloud + Sanitation Robot" is a smart
remote cluster model of operation that redefines how sanitation is carried out. By raising the standards of digitalization and
efficiency in the industry drastically and reducing safety risks to sanitation personnel as well as labor costs, the new model of
operation presents clear social benefits for the community and economy.
     The Company's 5G smart sanitation robot crew has been deployed in Shenzhen, Changsha and Suzhou. The crew has become
a new benchmark for smart urban sanitation and has been repeatedly recognized by government agencies and other associations as
a model for technological innovation that breathes new life into the traditional sanitation industry with AI. The 5G smart sanitation
robot crew digitalizes and informatizes urban sanitation, raises the capabilities for and standards of informatization in the
sanitation industry and improves the standards of sophisticated management of urban public services, creating a better living
environment for the people.
     Other businesses of the Company primarily include environmental monitoring, solid waste treatment, and ventilator
equipment manufacturing.
     The Company's environmental monitoring business covers the monitoring of smoke, air quality, haze, water quality, water
conservation, soil and dust and the provision of an integrated one-stop service for environmental protection, water conservation,
water supply and smart cities. The sales of products form the main part of the business and are supplemented by the provision of
services for operation and maintenance.
     The Company's solid waste disposal business primarily encompasses the incineration of domestic waste to generate energy,
the landfilling of domestic waste, the recycling of food waste and the utilization of solid waste in industrial parks. With waste-to-
energy projects as the core, the industrial parks of solid waste recycling are equipped with treatment facilities for domestic waste
disposal, hazardous waste disposal, sludge treatment, food waste treatment, sewage treatment, construction wastewater treatment,
ecological restoration of landfills, leachate treatment and fly ash disposal. Their operating model is Public-Private Partnership
(PPP).




                                                                  15
     The Company's manufacturing of ventilation equipment extends mainly to the production of ventilators, mufflers, dampers,
refrigerators, magnetic levitation fans, blowers and nuclear-grade dampers in the areas of nuclear power, subways, tunnels, rail
transportation, industrial and civil construction. Its fans are mainly sold via direct sales and retailers.


III. Analysis of Core Competitiveness

     1. Industry leader in sanitation equipment
     As a leader in China's environmental protection equipment sector, the Company has state-of-the-art core technologies and
offers the most comprehensive range of environmental protection equipment in the industry. In terms of R&D, the Company has
mastered industry-leading technologies in new energy-powered environmental protection equipment, intelligent robots of
environmental sanitation and autonomous environmental sanitation vehicles, and obtained the first drive test license in
environmental sanitation from the government. The Company developed the world's first smart sanitation robot crew and
successfully deployed the crew in Orange Isle, a 5A-level national scenic spot in Changsha City, Hunan Province. The Company's
5G autonomous sanitation robot crew has also been deployed in the college town in Changsha. The Company has developed a
comprehensive suite of environmental protection equipment that spans over 400 models and allows the Company to meet the
diverse sanitation demands across the country. The Company has ranked first in sales in the domestic market for 22 consecutive
years. As one of the pioneers in environmental protection equipment, the Company developed the first wet and dry vacuum
sweeper truck, the first fully hydraulic mini road sweeper, the first tunnel road washer, the first pure-electric road sweeper and the
first natural gas-powered road washer in China. The Company has extensive and proven experience in the environmental
sanitation industry and become the most influential brand in the industry.
     2. Fast-growing urban services with standardized management
     The Company established a new sanitation ecosystem with its operational model of "mechanized production+smart
operation+standardized service". With its new operational model, the Company aims for the centralized management of services
and planning, visual monitoring of the entire process of sanitation, swift response to emergencies and a closed-loop management.
With smart analysis performed on all data and improvements to management and controls that are based on evidence and rigorous
science, the Company strives to standardize services, refine sanitation management by virtue of smart technologies, grow business
rapidly, build key competitive advantages, and lead in the new era of smart sanitation.
     From 2016 to 2022, the Company recorded a contract value of RMB 1.237 billion, RMB 5.561 billion, RMB 8.711 billion,
RMB 9.72 billion, RMB 12.574 billion, RMB 8.435 billion, and RMB 9.251 billion, respectively and an annual service contract
value of RMB 55 million, RMB 305 million, RMB 429 million, RMB 855 million, RMB 1.248 billion, RMB 1.228 billion, and
RMB 1.819 billion, respectively for urban services, representing annual growth by 454.54%, 40.66%, 99.3%, 45.96%, -1.6%, and
48.13% respectively.
     3. All-round, 24/7, and whole-process after-sales service
     After-sales service is a critical touchpoint for companies to connect with customers, and high-quality after-sales service is a
company's core competitive edge. Based on product lifecycle management, the Company launched a "Speedy Service" Program
that follows the "1314" service standards—responding to customers within 15 minutes; departing within 30 minutes and arriving at
material service areas within 2 hours; addressing general faults within 1 day and material faults within 3 days; offering free
services four times each quarter. For this service program, the Company has deployed resources, including one platform, 300
service outlets, 1,000 service engineers, and 400 service stations. Currently, Infore Enviro can deliver timely, warm, quality,
fairly-priced, and trustworthy services to its customers.




                                                                     16
     4. Corporate culture and management team
     Corporate culture is the cornerstone of a company's creativity and unity as well as an important part of a company's key
competitive advantages. With the corporate mission of "Cleaner World, Better Future", the company sticks to the corporate
philosophy of "simple and professional with quick execution" and the core values of "Our clients are vital to us; our employees are
our partners in our endeavors; we aim to be achievement-oriented - competence beats mediocrity; and technology innovation is the
basis for our development." We adopt the development strategy with leading technology at the center, being order-driven as the
means, and motivating talent as the basis, and are committed to becoming a respected and trusted leader in providing intelligent
environmental equipment and services with environmental sanitation robotics at its core. After years of efforts, the Company has
deeply incorporated the core elements of its corporate culture into operating targets and routine affairs. These principles have
guided its business segments, branches, and subsidiaries in benchmarking operations, advancing refined management, and high-
quality growth.
     The Company is helmed by a pragmatic and competent management team. The Company's management team endorses the
corporate culture and shares the same management philosophy. Each member of the team complements the others' strengths and
has clearly defined responsibilities. As a whole, the team is united and possesses strong executive abilities. With abundant industry
experience and forward-looking vision, the team identifies industry trends with precision and speed and seizes market
opportunities promptly. For many years, the Company has promoted stock incentives and employee stock ownership as well as set
up team management frameworks for cornerstone partnerships, senior partnerships and general partnerships, gathering a group of
passionate trailblazers who share the Company's values, building a community for key employees in the Company and propelling
the Company towards stable, healthy and long-term growth.


IV. Analysis of Principal Business

1. Overview

     Infore Enviro faced severe external challenges in 2022 amidst the macroeconomic situation. Despite that, the Company
remained committed to its development strategies and annual business plan, with a strong emphasis on its core "5115" strategy. It
significantly improved its internal operations by strengthening its key teams and intensifying technological innovation and product
research and development. As a result, the Company maintained its position as an industry leader in smart sanitation based on its
established R&D advantages in environmental protection equipment.
     In 2022, the Company generated RMB 418,794,200 in net profit attributable to the listed company's shareholders and RMB
12,255,992,900 in operating revenue. As at the end of the reporting period, the Company reported RMB 29,271,291,900 in total

                                                                  17
assets and RMB 17,288,602,000 in net assets attributable to the listed company's shareholders. During the reporting period, the
Company registered rapid growth in urban services while maintaining its leadership in the environmental protection equipment
sector.
     1. Ranked first for annual increase in contract value of urban services in 2022
     According to Huanjing Sinan, Infore Enviro signed 88 sanitation projects across 21 Chinese provinces in 2022. These new
contracts have a cumulative value of RMB 9.251 billion and an annual value of RMB 1.819 billion, the highest in the industry.
The Company's operating revenue in urban services increased by 37.45% YoY to RMB 4.158 billion in 2022. As at the end of the
reporting period, Infore Enviro was running 233 urban service projects. These contracts have an annual value of RMB 5.525
billion and a cumulative value of RMB 54.165 billion. The Company's executory contracts total RMB 42.712 billion, ranking third
in the industry. The Company performed well in terms of sustainable operation.
     2. Ranked first in terms of sales of environmental protection equipment in 2022
     According to the motor vehicle accident liability compulsory insurance data released by the China Banking and Insurance
Regulatory Commission, the Company sold 13,743 pieces of environmental protection equipment in 2022. The sales generated
revenue of RMB 6.084 billion, ranking first in the industry for the 22 nd consecutive year.
     3. Ranked first in terms of sales of new energy-powered environmental protection equipment in 2022
     In 2022, the Company sold 1,369 pure-electric sanitation vehicles, representing a market share of 29.3%, the highest among
all players in the industry. During the reporting period, the Company continued to expand its new energy-powered product
portfolio, with solar power road washers and mobile charging vehicles to be launched. The new offerings are expected to bring
new opportunities and enhance the Company's competitiveness.
     4. Improvement of quality and efficiency and continuous optimization of net cash generated from operating activities
     With the key task of "achieving high-quality development", centering on production and operation links, the Company
explored multiple methods for improving its asset operation capabilities to reduce existing assets and control incremental assets. It
abandoned high-risk orders, strengthened the mechanism for classification and responsibility regarding contract risks, enhanced
reflow of corporate sales income, and accelerated operation turnover efficiency to improve cash flows from operating activities.
As at the end of the reporting period of 2022, the Company recorded RMB 1,662,482,300 in cash flows from operating activities,
up 105.44% from a year earlier. Increase in net cash generated from the operating activities of the Company led to the
improvement of operation quality ultimately. The Company improved quality and efficiency and supported its high-quality
sustainable development.
     5. Digital transformation and the setup of a highly efficient operating system
     Digitalization is a core transformation strategy of the Company. In 2022, Infore Enviro continued to digitalize value chains to
empower business operations. By expanding online coverage and enhancing standardization and information technology, the
Company strengthened its business management capabilities and created new momentum for growth. During the reporting period,
the Company completed the first phase of its IBS168 Digitalization Strategy, achieving the digitalization of all scenarios and
business processes across value chains using one system and platform under Infore Enviro. Fruitful results have been
accomplished in smart environmental protection product R&D and delivery.
     6. High cash dividends for shareholders
     Valuing investor return, the Company has been implementing an active profit distribution policy. It has paid high cash
dividends for many years in a row as return for its shareholders. According to the 2022 profit distribution plan (proposed)
approved at the second meeting of the tenth Board of Directors, a cash dividend of RMB 1.10 (tax inclusive) per 10 shares will be
distributed to the shareholders, based on the total share capital (minus shares in the Company's repurchase account) on the date of
record for the plan. A total cash dividend of around RMB 348 million (tax included) is estimated to be distributed. As the proposed
plan is awaiting the approval of the general meeting of shareholders, the actual dividend amount will be disclosed in the
Company's announcement. The amount accounts for 83.18% of the net profit attributable to the listed company's shareholders in
2022.



                                                                   18
     In the past three years (2020–2022), the Company has paid RMB 1.033 billion in cash dividends, accounting for 26.87%,
41.45%, and 83.18% of the net profit attributable to the listed company's shareholders, respectively.
     7. Active fulfillment of social responsibility as part of its corporate responsibility
     In 2022, while seeking business growth, the Company fulfilled its social responsibility as it got involved in poverty
alleviation and disaster relief efforts.
     The Company made targeted donations to the communities and towns in Guangning County of Zhaoqing City, Red Cross and
Sihekou Village of Xiantao City, Longhua District of Shenzhen City, and Zaoshi Town and Weixin Town of Shimen County,
supporting families in need. It also purchased agricultural products from local poor households as part of its assistance program.
These efforts were widely recognized by local public-interest organizations. To help with disaster relief, the Company promptly
dispatched environmental protection vehicles to ensure smooth traffic flow during heavy snowfalls in some regions of China. In
February, when Beijing suffered heavy snowfalls, the Company sent out snow removal equipment for high-speed snow sweeping
and pushing, solids spreading, and pre-wet spreading on the turns, steep slopes, and pedestrian paths in the Winter Olympics area,
guaranteeing the smooth flow of the main roads of Yanqing District and the driveways for Winter Olympics. In response to the
heavy snowfalls in Changsha and Xiangtan, a branch of Infore Enviro in Xiangtan promptly sent a snow and ice removal task
force equipped with 241 vehicles. The team worked overnight, and as a result, bridges, roads, and pedestrian paths were reopened
by the next morning, ensuring safe traffic flow.


2. Revenue and cost

(1) Breakdown of operating revenue

                                                                                                                       Unit: RMB
                                            2022                                              2021
                                                           As a                                           As a
                                                      percentage of                                  percentage of   YoY change
                                  Amount                                        Amount
                                                        operating                                      operating
                                                         revenue                                        revenue
 Total revenue                 12,255,992,938.42              100%            11,866,291,611.45             100%            3.28%
 Sector
 Smart sanitation              10,242,746,845.77            83.57%             9,237,262,348.48           77.84%           10.89%
 Others                         2,013,246,092.65            16.43%             2,629,029,262.97           22.16%          -23.42%
 Product
 Intelligent
                                6,084,414,800.17            49.64%             6,211,980,162.80           52.35%           -2.05%
 equipment
 Smart service                  4,158,332,045.60            33.93%             3,025,282,185.68           25.49%           37.45%
 Others                         2,013,246,092.65            16.43%             2,629,029,262.97           22.16%          -23.42%
 Region
 Domestic                      12,237,181,369.71            99.85%            11,823,457,237.71           99.64%            3.50%
 Overseas                           18,811,568.71             0.15%                42,834,373.74            0.36%         -56.08%
 Wholesale
 Direct sales                  10,735,356,968.50            87.59%            10,484,616,229.37           88.36%            2.39%
 Retail                         1,520,635,969.92            12.41%             1,381,675,382.08           11.64%           10.06%




                                                                      19
(2) Sectors, products, regions or sales models accounting for over 10% of operating revenue or profit


Applicable         Not applicable
                                                                                                                     Unit: RMB
                                                                 Gross      YoY change in                        YoY change in
                                                                                               YoY change in
                     Operating revenue      Operating cost       profit       operating                           gross profit
                                                                                               operating costs
                                                                 margin        revenue                              margin
 Sector
 Smart
                       10,242,746,845.77    8,023,297,059.91     21.67%              10.89%             10.58%           0.22%
 sanitation
 Others                 2,013,246,092.65    1,446,213,771.36     28.17%              -23.42%           -26.83%           3.35%
 Product
 Intelligent
                        6,084,414,800.17    4,507,247,164.35     25.92%               -2.05%            -4.86%           2.18%
 equipment
 Smart
                        4,158,332,045.60    3,516,049,895.56     15.45%              37.45%             39.61%           -1.30%
 service
 Others                 2,013,246,092.65    1,446,213,771.36     28.17%              -23.42%           -26.83%           3.35%
 Region
 Domestic              12,237,181,369.71    9,453,598,848.51     22.75%               3.50%              2.79%           0.53%
 Overseas                  18,811,568.71       15,911,982.76     15.41%              -56.08%           -55.04%           -1.97%
 Wholesale
 Direct sales          10,735,356,968.50    8,286,953,862.97     22.81%               2.39%              1.68%           0.55%
 Retail                 1,520,635,969.92    1,182,556,968.30     22.23%              10.06%              9.31%           0.53%

The Company's main business data for the year was adjusted to take into account revised statistical standards that were updated
during the reporting period
Applicable         Not Applicable


(3) Whether revenue from goods sales higher than revenue from rendering services


Yes No

          Sector                 Item              Unit                   2022                 2021              YoY change
                         Sales              Unit                                 17,674               18,689             -5.43%
 Intelligent
                         Production         Unit                                 16,221               19,654            -17.47%
 sanitation
                         Inventory          Unit                                  1,634                3,087            -47.07%

Explanation of data with YoY differences that exceed 30%
Applicable         Not applicable

    Inventory decreased by 47.07% compared to the end of the previous year, mainly due to the Company's enhanced inventory
management. Production reserve plans were based on sales plans to determine reasonable inventory mix and quantity.


(4) Fulfillment of material sales/procurement contracts signed during the reporting period


Applicable         Not Applicable




                                                               20
(5) Breakdown of operating costs


Sector

                                                                                                                             Unit: RMB

                                                        2022                                    2021
                                                                                                           As a
         Sector             Item                                    As a                                                   YoY change
                                                                                                        percentage
                                              Amount            percentage of          Amount
                                                                                                       of operating
                                                                operating cost
                                                                                                           cost
 Smart
                      Raw materials      4,021,886,417.92             50.13%      4,554,862,117.93           62.77%              -11.70%
 sanitation
 Smart
                      Labor expense      1,056,998,188.36             13.17%          760,855,544.92         10.49%              38.92%
 sanitation
 Smart
                      Depreciation         423,631,356.77                5.28%        340,775,770.93          4.70%              24.31%
 sanitation
 Smart
                      Utilities            463,060,371.23                5.77%        412,552,873.06          5.69%              12.24%
 sanitation
                      Other
 Smart
                      manufacturing      2,057,720,725.63             25.65%      1,186,613,371.99           16.35%              73.41%
 sanitation
                      overhead
 Others               Raw materials        729,321,140.14             50.43%      1,225,476,817.59           62.00%              -40.49%
 Others               Labor expense         97,064,385.84                6.71%        106,315,926.43          5.38%               -8.70%
 Others               Depreciation         140,507,354.03                9.72%         74,885,542.04          3.79%              87.63%
 Others               Utilities             26,661,871.00                1.84%         24,877,256.71          1.26%                7.17%
                      Other
 Others               manufacturing        452,659,020.35             31.30%          544,983,347.57         27.57%              -16.94%
                      overhead
Note

       Labor costs, depreciation, utilities and other manufacturing overhead in smart sanitation rose significantly on a YoY basis.
This is primarily the result of increased revenue from smart services during the period, leading to a corresponding increase in costs
of supporting facilities, labor and outsourced labor, as well as costs of construction and services for PPP projects.
       The costs of raw materials of other business and other manufacturing overhead dropped significantly on a YoY basis, mainly
due to the electromagnetic wire business in January and February 2021. Depreciation climbed notably YoY, primarily reflecting
the operations of several newly built power plants.


(6) Changes in the scope of consolidated financial statements for the reporting period


Yes No

    1. Business combination not involving enterprises under common control
                                                                      Equity acquisition        Shareholding ratio
  Acquiree                                     Date of acquisition                                                 Equity acquisition
                                                                         cost (RMB)                   (%)
                                                                                                                       Business
Zhejiang Yolsh Electric Drive Technology                                                                            combination not
                                               April 30, 2022                     50,000,002.00        70
Co., Ltd.                                                                                                            under common
                                                                                                                        control
                                               September 17, 2019                 43,750,000.00        35              Business
Lianjiang Greenlander New Energy Co.,                                                                               combination not
Ltd.                                           February 28, 2022                 120,000,000.00        50            under common
                                                                                                                        control
       2. Other business combinations
Company name                                    Mode of acquisition         Date of          Capital contribution       Shareholding ratio


                                                                    21
                                                                    acquisition        (RMB)            (%)
Shaodong Tongying Environmental
                                             Incorporation        January 7, 2022    283,200.00     100.00
Sanitation Management Co., Ltd.
Xiangyin County Yingsheng                                         January 24,
                                             Incorporation                           500,000.00     100.00
Environmental Protection Co., Ltd.                                2022
Shengzhou Yinglia Environmental                                   January 19,
                                             Incorporation                           100,000.00     100.00
Sanitation Management Co., Ltd.                                   2022
Guilin Yingsheng Environmental Sanitation                         January 28,
                                             Incorporation                             [Note]       100.00
Management Co., Ltd.                                              2022
Guiyang Yinglian Environmental                                    February 11,
                                             Incorporation                             [Note]       100.00
Equipment Co., Ltd.                                               2022
Taicang Zhongying Environmental                                   February 21,
                                             Incorporation                             [Note]       100.00
Technology Co., Ltd.                                              2022
Baoding Yinghe Environmental Sanitation                           February 28,
                                             Incorporation                           500,000.00     100.00
Management Co., Ltd.                                              2022
Wenshui County Yingsheng Environmental                            February 16,
                                             Incorporation                           500,000.00     100.00
Sanitation Service Co., Ltd.                                      2022
Maoming Yinghe Urban Environmental
                                             Incorporation        January 4, 2022   7,000,000.00    100.00
Sanitation Service Co., Ltd.
Wushan County Tongying Environmental                              February 14,
                                             Incorporation                           500,000.00     100.00
Sanitation Service Co., Ltd.                                      2022
Harbin Tongying Environmental Sanitation
                                             Incorporation        March 23, 2022     200,000.00     100.00
Management Co., Ltd.
Pengshui County Yingchuang
                                             Incorporation        March 11, 2022     500,000.00     100.00
Environmental Sanitation Service Co., Ltd.
Bengbu Tongying Environmental                                     January 29,
                                             Incorporation                           200,000.00     100.00
Sanitation Management Co., Ltd.                                   2022
Daye Tongying Environmental Service Co.,
                                             Incorporation        April 11, 2022     100,000.00     100.00
Ltd.
Urumqi Lianying Urban Environmental
                                             Incorporation        June 2, 2022      2,000,000.00    100.00
Service Co., Ltd.
Baoting Tongying Environmental
                                             Incorporation        June 8, 2022       100,000.00     100.00
Sanitation Service Co., Ltd.
Zhaoqing Duanzhou District Zhongying
Urban Environmental Management Co.,          Incorporation        May 25, 2022         [Note]       100.00
Ltd.
Zhanjiang Development Zone Zhongying
                                             Incorporation        June 10, 2022     1,000,000.00    100.00
Urban Environmental Service Co., Ltd.
Shaoxing Lianbao Environmental
                                             Incorporation        May 27, 2022       100,000.00     100.00
Sanitation Management Co., Ltd.
Xingguo County Yinghe Environmental
                                             Incorporation        June 9, 2022       300,000.00     100.00
Sanitation Management Co., Ltd.
Huaibei Tongying Environmental
                                             Incorporation        April 12, 2022    33,000,000.00   100.00
Sanitation Management Co., Ltd.
Yongzhou Lingling District Tongying
                                             Incorporation        June 21, 2022        [Note]       100.00
Environmental Sanitation Service Co., Ltd.
Shaoyang Tongying Environmental
                                             Incorporation        May 10, 2022       100,000.00     100.00
Sanitation Service Co., Ltd.
Jianli Yinglian Environmental Sanitation
                                             Incorporation        April 29, 2022     100,000.00     100.00
Management Co., Ltd.
Suzhou Gusu District Zhongying
                                             Incorporation        June 9, 2022         [Note]       100.00
Environmental Industry Co., Ltd.
Guangzhou Zengcheng District Yinghe
                                             Incorporation        May 24, 2022         [Note]       100.00
Urban Environmental Service Co., Ltd.
Baishan Yingyuan Environmental Service
                                             Incorporation        June 9, 2022       200,000.00     100.00
Engineering Co., Ltd.
Shenzhen Longhua District Yinglian Urban
                                             Incorporation        July 5, 2022      3,000,000.00    100.00
Service Co., Ltd.
Guzhang County Yinglian Environmental
                                             Incorporation        June 28, 2022     7,200,000.00    100.00
Sanitation Management Co., Ltd.
Changshu Zhongying Environmental
                                             Incorporation        April 26, 2022       [Note]       100.00
Sanitation Service Co., Ltd.
Suining Anju Yinglian Environmental
                                             Incorporation        July 7, 2022       200,000.00     100.00
Sanitation Service Co., Ltd.
Jieyang Yingdong Urban Environmental         Incorporation        July 7, 2022         [Note]       100.00


                                                             22
Management Co., Ltd.
Tongdao Yinglian Jiamei Environmental
                                            Incorporation        July 5, 2022      2,652,000.00   51.00
Industry Co., Ltd.
Heyang Yinglian Urban Environmental
                                            Incorporation        July 19, 2022     1,000,000.00   100.00
Service Co., Ltd.
Ninghai County Tongying Environmental
                                            Incorporation        August 10, 2022   100,000.00     100.00
Sanitation Management Co., Ltd.
Zhanjiang Potou District Yingsheng
Environmental Sanitation Management Co.,    Incorporation        August 24, 2022      [Note]      100.00
Ltd.
Liaoyang Yinglian Urban Environmental
                                            Incorporation        August 10, 2022   3,000,000.00   100.00
Sanitation Management Co., Ltd.
Linqing Yinglian Urban Environmental
                                            Incorporation        August 3, 2022    1,000,000.00   100.00
Service Co., Ltd.
Zhanjiang Xiashan District Yinghe Urban
                                            Incorporation        August 8, 2022       [Note]      100.00
Environmental Management Co., Ltd.
Haicheng Zhongying Environmental                                 September 8,
                                            Incorporation                          8,000,000.00   100.00
Sanitation Management Co., Ltd.                                  2022
Foshan Shunde District Yingjia Urban                             September 5,
                                            Incorporation                          1,680,000.00   70.00
Environmental Service Co., Ltd.                                  2022
Xiamen Yingsheng Environmental Service                           September 8,
                                            Incorporation                          500,000.00     100.00
Co., Ltd.                                                        2022
Nanfeng Yingniang Environmental                                  September 15,
                                            Incorporation                          255,000.00     51.00
Sanitation Management Co., Ltd.                                  2022
Tengchong Yinglian Environmental                                 September 22,
                                            Incorporation                          200,000.00     100.00
Protection Technology Co., Ltd.                                  2022
Chuzhou Yingsheng Environmental                                  October 20,
                                            Incorporation                          500,000.00     100.00
Sanitation Management Co., Ltd.                                  2022
Fuyang Yingsheng Environmental                                   October 14,
                                            Incorporation                          300,000.00     100.00
Sanitation Management Co., Ltd.                                  2022
Changsha Zhiying Environmental
                                            Incorporation        October 9, 2022   300,000.00     60.00
Sanitation Management Co., Ltd.
Foshan Shunde District Yingzhi Smart City                        December 14,
                                            Incorporation                             [Note]      100.00
Environmental Service Co., Ltd.                                  2022
Pingdingshan Yingsheng Environmental                             November 10,
                                            Incorporation                             [Note]      100.00
Sanitation Management Co., Ltd.                                  2022
Chenzhou Zhongying Environmental                                 November 21,
                                            Incorporation                          600,000.00     100.00
Service Co., Ltd.                                                2022
Zhenfeng Yinglian Environmental                                  December 6,
                                            Incorporation                             [Note]      100.00
Sanitation Management Co., Ltd.                                  2022
Linfen Yaodu District Yingsheng
                                                                 December 12,
Environmental Sanitation Management Co.,    Incorporation                             [Note]      100.00
                                                                 2022
Ltd.
Fuyang Zhiying Environmental Sanitation                          November 24,
                                            Incorporation                          300,000.00     100.00
Management Co., Ltd.                                             2022
Chengdu Yinggang Urban Environmental                             December 7,
                                            Incorporation                             [Note]      100.00
Sanitation Service Co., Ltd.                                     2022
Foshan Shunde District Yingteng Smart                            December 9,
                                            Incorporation                          1,500,000.00   100.00
City Environmental Service Co., Ltd.                             2022
Qingyang County Yinghe Environmental                             November 30,
                                            Incorporation                             [Note]      100.00
Sanitation Management Co., Ltd.                                  2022
Changsha Fenglan Environmental                                   January 26,
                                            Incorporation                             [Note]      100.00
Protection Technology Co., Ltd.                                  2022
Changsha Infore Environmental Industry
                                            Incorporation        January 6, 2022      [Note]      100.00
Co., Ltd.
                                                                 September 26,
Hubei Fenghe New Materials Co., Ltd.        Incorporation                             [Note]      100.00
                                                                 2022
Heyang Zhongying Environmental                                   September 19,
                                            Incorporation                             [Note]      100.00
Sanitation Management Co., Ltd.                                  2022
Lanling County Lianying Environmental                            November 4,
                                            Incorporation                          1,000,000.00   100.00
Sanitation Service Co., Ltd.                                     2022
Pingdingshan Yinghe Environmental                                November 30,
                                            Incorporation                             [Note]      100.00
Sanitation Management Co., Ltd.                                  2022
Shenzhen Infore City Service Intelligent
                                            Incorporation        March 25, 2022       [Note]      100.00
Technology Co., Ltd.


                                                            23
Guangdong Infore Mobile Charging                                  January 12,
                                           Incorporation                                      [Note]            100.00
Technology Co., Ltd.                                              2022
Guangdong Infore Intelligent Cleaning
                                           Incorporation          August 12, 2022          200,000.00           100.00
Technology Co., Ltd.
Changfeng County Yinghe Environmental                             December 16,
                                           Incorporation                                      [Note]            100.00
Sanitation Management Co., Ltd.                                   2022
    Note: As at December 31, 2022, these companies' registered capitals have not been contributed.
    3. Entities excluded from the consolidation scope
                         Company name                                     Mode of equity disposal       Date of equity disposal
Zoomlion Heavy (Ningxia) Environmental Industry Co., Ltd.                     De-registration              March 14, 2022
Guangdong Yinglian Urban Environmental Management Co.,
                                                                              De-registration               June 15, 2022
Ltd.
Dali County Zoomlion Environmental Industry Co., Ltd.                         De-registration               June 17, 2022
Kunming Zhongfeng Environmental Sanitation Equipment Co.,
                                                                              De-registration               July 26, 2022
Ltd.
Changsha Fenglan Environmental Protection Technology Co.,
                                                                              De-registration               July 25, 2022
Ltd.
Foshan Yinghe Investment Co., Ltd                                             De-registration            November 18, 2022


(7) Material changes in the business, products or services during the reporting period


Applicable     Not Applicable


(8) Major customers and suppliers


Major customers of the Company

 Total sales to top five customers (RMB)                                                                        534,551,857.64
 Total sales to top five customers as a percentage of annual total
                                                                                                                          4.36%
 sales
 Total sales to related parties among top five customers as a
                                                                                                                          0.74%
 percentage of annual total sales

Top five customers

                                                                                                    As a percentage of annual
              No.                             Customer                    Sales revenue (RMB)
                                                                                                            total sales
                1                  Customer A                                      128,261,956.19                         1.05%
                2                  Customer B                                      118,007,524.43                         0.96%
                3                  Customer C                                      108,597,119.74                         0.89%
                4                  Customer D                                       90,942,152.84                         0.74%
                5                  Customer E                                       88,743,104.44                         0.72%
              Total                               --                               534,551,857.64                         4.36%

Other information about major customers
Applicable     Not Applicable
Major suppliers of the Company
 Total purchases from top five suppliers (RMB)                                                                 1,755,553,263.19
 Total purchases from top five suppliers as a percentage of
                                                                                                                         23.96%
 annual total purchases
 Total purchases from related parties among top five suppliers as                                                         0.00%


                                                                     24
 a percentage of annual total purchases

Top five suppliers
                                                                        Purchase during the reporting        As a percentage of total
              No.                              Supplier
                                                                               period (RMB)                         purchases
                1                 Customer A                                        1,112,860,451.33                              15.19%
                2                 Customer B                                          190,826,777.88                               2.60%
                3                 Customer C                                          175,161,894.72                               2.39%
                4                 Customer D                                          144,298,134.51                               1.97%
                5                 Customer E                                          132,406,004.75                               1.81%
              Total                               --                                1,755,553,263.19                              23.96%

Other information about major suppliers
Applicable     Not Applicable


3. Expenses

                                                                                                                             Unit: RMB
                                                                                                                     Reason for material
                                     2022                         2021                    YoY change
                                                                                                                          change
 Selling expenses                  762,970,847.95                738,833,571.05                         3.27%   --
 Administrative
                                   609,601,680.23                585,353,407.57                         4.14%   --
 expenses
                                                                                                                Mainly due to increase
                                                                                                                in interest expense and
 Financial Expenses                101,839,423.91                 58,604,804.53                     73.77%
                                                                                                                decrease in financing
                                                                                                                income
                                                                                                                Mainly due to further
 R&D expenses                      340,775,707.34                262,619,127.29                     29.76%      increase in R&D
                                                                                                                investments


4. R&D investments

Applicable     Not applicable
                                                                                                                  Expected impact on
  Name of major R&D
                                  Objectives                     Progress               Proposed goals           future development of
       projects
                                                                                                                     the Company
                           To develop new
                           products to expand the
                                                                                                                It is conducive to the
 Research and              biological indicator
                                                                                    To develop an online        Company's continuous
 Application of Online     product portfolio, used
                                                                                    monitoring instrument       advancement towards
 Monitoring Technology     for automatic online           Mass-produced and
                                                                                    to monitor the              high-tech innovative
 for Comprehensive         monitoring of the              launched on the market
                                                                                    biological toxicity of      enterprises and
 Toxicity of Water         biological toxicity of
                                                                                    water quality               breakthroughs in
 Quality                   surface water and
                                                                                                                technical difficulties.
                           certain polluted source
                           water.
                           To expand the range of                                   To develop a set of         It is conducive to the
 Ambient Air Automatic     scientific instruments,                                  online monitoring           Company's continuous
 Online Monitoring         enabling online                R&D completed             systems capable of          advancement towards
 Series Products           monitoring of various                                    monitoring 116 VOCs         high-tech innovative
                           VOCs in ambient air                                      in all workplaces with      enterprises and


                                                                   25
                                                                     VOCs emissions           breakthroughs in
                                                                                              technical difficulties.
                                                                                              It is conducive to the
                                                                     To develop a wet
                          To solve the small                                                  Company's continuous
Third-generation                                                     garbage collection and
                          capacity and                                                        advancement towards
Leakage-free                                                         compression truck with
                          airtightness challenge     R&D completed                            high-tech innovative
Compression Garbage                                                  full airtightness, no
                          of leakage-free garbage                                             enterprises and
Truck                                                                leakage, and large
                          trucks' trash containers                                            breakthroughs in
                                                                     loading capacity
                                                                                              technical difficulties.
                                                                                              It is conducive to the
                                                                                              Company's continuous
                          To further reduce the                      To reduce the
18-ton Pure-Electric                                                                          advancement towards
                          energy consumption                         operational noise and
Dual-fan Road                                        R&D completed                            high-tech innovative
                          and noise of the                           energy consumption of
Cleaners                                                                                      enterprises and
                          existing model                             the existing model
                                                                                              breakthroughs in
                                                                                              technical difficulties.
                          To expand the product
                                                                                              It is conducive to the
                          range for landscape
                                                                     To develop a landscape   Company's continuous
                          maintenance, such as
                                                                     trimming vehicle with    advancement towards
18-ton Front Collection   the trimming of green
                                                     R&D completed   a front arm and the      high-tech innovative
Green Hedge Trimmer       belts on highways and
                                                                     feature of switching     enterprises and
                          urban roads as well as
                                                                     between tools quickly    breakthroughs in
                          the pruning of high
                                                                                              technical difficulties.
                          branches on roadside
                                                                                              This helps to improve
                                                                     To industrialize the
Nuclear-grade             To explore and expand                                               the key competitive
                                                     Under R&D       result and generate
Centrifugal Roof Fan      the segment                                                         advantages of the
                                                                     market orders
                                                                                              Company
                                                                                              This helps to improve
                                                                     To industrialize the
Low-noise Mist Gun        To explore and expand                                               the key competitive
                                                     R&D completed   result and generate
Fan                       the segment                                                         advantages of the
                                                                     market orders
                                                                                              Company
                                                                                              This helps to improve
Large-scale urban                                                    To industrialize the
                          To explore and expand                                               the key competitive
transportation smart                                 R&D completed   result and generate
                          the segment                                                         advantages of the
purification system                                                  market orders
                                                                                              Company
                                                                                              It is conducive to the
                          To meet the market                                                  Company's continuous
                          demand for garbage                         To develop a small       advancement towards
Economic Garbage
                          collection and             Under R&D       product for garbage      high-tech innovative
Transfer Vehicle
                          transportation                             transfers                enterprises and
                          equipment                                                           breakthroughs in
                                                                                              technical difficulties.
                                                                                              It is conducive to the
                                                                                              Company's continuous
                          To meet the market
                                                                     To develop an            advancement towards
Economic Integrated       demand for auxiliary
                                                     R&D completed   integrated road          high-tech innovative
Road Sweeper              road garbage cleaning
                                                                     sweeper                  enterprises and
                          equipment
                                                                                              breakthroughs in
                                                                                              technical difficulties.
                                                                                              It is conducive to the
                                                                                              Company's continuous
                          To meet the market                         To develop a pure-       advancement towards
Electric Road Cleaner     demand for road            Under R&D       electric cleaning        high-tech innovative
                          cleaning products                          machine                  enterprises and
                                                                                              breakthroughs in
                                                                                              technical difficulties.


                                                             26
                                                                                                         It is conducive to the
                                                                                                         Company's continuous
                            To develop a road                                    To develop a road       advancement towards
 Economic Roller Road
                            sweeper suitable for      R&D completed              sweeper suitable for    high-tech innovative
 Sweeper
                            semi-enclosed scenes                                 semi-enclosed scenes    enterprises and
                                                                                                         breakthroughs in
                                                                                                         technical difficulties.
Information about R&D personnel

                                                     2022                               2021                   Change
 Number of R&D personnel                                         1,415                          1,407                     0.57%
 R&D personnel as a percentage of
                                                                8.23%                          10.53%                    -2.30%
 total staff
 Education background of R&D personnel
 Bachelor's degree                                                 995                          1,064                    -6.48%
 Master's degree                                                   374                            303                    23.43%
 Doctoral degree                                                     12                             6                   100.00%
 College degree                                                      34                            34                     0.00%
 Age composition of R&D personnel
 < 30 years                                                        662                            647                    -3.86%
 30~40 years                                                       641                            596                     7.55%
 > 40 years                                                        112                            114                    33.33%

Information about R&D investments

                                                     2022                               2021                   Change
 R&D investments (RMB)                                 364,237,563.22                   289,920,069.26                   25.63%
 R&D investments as a percentage
                                                                2.97%                           2.44%                     0.53%
 of operating revenue
 Capitalized R&D investments
                                                        23,461,855.88                    27,300,941.97                  -14.06%
 (RMB)
 Capitalized R&D investments as a
 percentage of total R&D                                        6.44%                           9.42%                    -2.98%
 investments

Reasons and impacts of material change in R&D personnel composition
Applicable     Not Applicable
Reasons for significant YoY change in total R&D investments as a percentage of operating revenue
Applicable     Not Applicable
Reasons and rationale for significant change in capitalization rate of R&D investment
Applicable     Not Applicable


5. Cash flow

                                                                                                                    Unit: RMB
                   Item                              2022                               2021                 YoY change
 Subtotal of cash inflows from
                                                    14,255,237,258.75              14,872,489,012.69                     -4.15%
 operating activities



                                                                27
 Subtotal of cash outflows from
                                                    12,592,754,971.04                14,063,270,292.56                      -10.46%
 operating activities
 Net cash flows from operating
                                                     1,662,482,287.71                   809,218,720.13                     105.44%
 activities
 Subtotal of cash inflows from
                                                     5,558,632,508.54                 5,412,369,009.46                       2.70%
 investing activities
 Subtotal of cash outflows from
                                                     6,696,412,810.26                 6,534,593,586.86                       2.48%
 investing activities
 Net cash flows from investing
                                                    -1,137,780,301.72                 -1,122,224,577.40                      -1.39%
 activities
 Subtotal of cash inflows from
                                                     2,381,374,197.63                 2,901,823,101.45                      -17.94%
 financing activities
 Subtotal of cash outflows from
                                                     2,447,214,731.68                 3,125,894,632.23                      -21.71%
 financing activities
 Net cash flows from financing
                                                        -65,840,534.05                 -224,071,530.78                      70.62%
 activities
 Net increase in cash and cash
                                                       461,918,360.27                  -539,079,213.51                     185.69%
 equivalents

Explanation of main impact factor of material change of the data YoY
Applicable     Not applicable

    (1) Net cash flows from operating activities increased by 105.44% on a YoY basis. This is primarily because eligible VAT
refunds increased, and the notes payable for inventory purchases were not due during the reporting period.
    (2) Net cash flows from financing activities rose by 70.62% on a YoY basis, mainly due to the cash payment of RMB 446
million for stock repurchases in 2021 and no such payment in 2022.

Explanation of reasons for the material difference between net cash flows from operating activities during the reporting period and
net profit for the year
Applicable     Not Applicable


V. Analysis of Non-Core Business

Applicable     Not applicable

                                                                                                                        Unit: RMB

                                                   As a percentage of                                          Recurrent or non-
                                   Amount                                      Reasons for generation
                                                       total profit                                               recurrent
                                                                                                          RMB 8,548,481.77 is the
                                                                                                          returns on long-term
                                                                                                          equity investments
 Investment income                -41,466,125.62               -7.45%     --                              calculated using the
                                                                                                          equity method, which is
                                                                                                          recurrent; the other
                                                                                                          portion is non-recurrent.
 Gain or loss on
                                            0.00                0.00%     --                              No
 changes in fair value
                                                                          Mainly due to provision of
 Impairment of assets            -312,998,494.66              -56.27%                                     No
                                                                          goodwill impairment loss
 Non-operating revenue            12,798,235.90                 2.30%     --                              No
 Non-operating
                                  13,947,988.82                 2.51%     --                              No
 expenses


                                                                 28
VI. Assets and Liabilities

1. Material changes of asset items

                                                                                                                             Unit: RMB
                                    December 31, 2022                             January 1, 2022                              Reason
                                                                                                                                 for
                                                 As a percentage                               As a percentage     Change
                                Amount                                      Amount                                             material
                                                  of total assets                               of total assets                change
 Cash and cash
                           4,728,203,530.46              16.15%         4,583,245,371.02               16.16%       -0.01%    --
 equivalents
 Accounts receivable       5,625,792,472.37              19.22%         4,946,704,963.71               17.44%        1.78%    --
 Contract assets               101,023,854.33             0.35%            140,367,802.53               0.49%       -0.14%    --
 Inventories                   881,038,036.95             3.01%         1,124,149,719.01                3.96%       -0.95%    --
 Investment
                                27,105,435.03             0.09%              1,837,703.68               0.01%        0.08%    --
 properties
 Long-term equity
                               676,829,959.84             2.31%            603,580,781.31               2.13%        0.18%    --
 investment
 Fixed assets              2,268,287,202.01               7.75%         1,758,052,005.19                6.20%        1.55%    --
 Construction in
                                41,073,267.68             0.14%            224,068,633.86               0.79%       -0.65%    --
 progress
 Right-of-use assets            31,859,454.24             0.11%             25,505,911.86               0.09%        0.02%    --
 Short-term
                               440,103,105.44             1.50%            439,024,733.46               1.55%       -0.05%    --
 borrowings
 Contract liabilities          274,289,978.25             0.94%            210,432,628.98               0.74%        0.20%    --
 Long-term
                           1,922,306,226.32               6.57%         1,697,742,767.72                5.99%        0.58%    --
 borrowings
 Lease liabilities              23,255,624.30             0.08%             18,523,740.10               0.07%        0.01%    --
 Intangible assets         6,048,114,364.49              20.66%         5,350,595,868.40               18.86%        1.80%    --

Offshore assets account for high proportion
Applicable      Not Applicable




2. Assets and liabilities measured at fair value

Applicable      Not applicable

                                                                                                                             Unit: RMB

                                   Gain/loss     Cumulative
                                                                     Accrual of   Purchase           Sales
                                  on changes     changes in
                     Opening                                        impairment     amount           amount         Other       Closing
     Item                        in fair value    fair value
                     balance                                         during the   during the       during the     changes      balance
                                  during the     included in
                                                                       period       period           period
                                    period          equity
Financial assets
4.
Investments
                 15,702,971.                                                                                                 15,352,971.
in other                                 0.00            0.00       350,000.00          0.00              0.00       0.00
                         01                                                                                                          01
entity
instruments

                                                                      29
  Subtotal of
                    15,702,971.                                                                                                   15,352,971.
  financial                              0.00           0.00      350,000.00             0.00             0.00         0.00
                            01                                                                                                            01
  assets
                    15,702,971.                                                                                                   15,352,971.
  Total                                  0.00           0.00      350,000.00             0.00             0.00         0.00
                            01                                                                                                            01
  Financial
                          0.00           0.00           0.00             0.00            0.00             0.00         0.00             0.00
  liabilities

 Whether any material changes occurred to the measurement attributes of the Company's major assets during the reporting period
 Yes No


 3. Restricted asset rights as at the end of the reporting period

                                                               Carrying amounts at the
  Items                                                                                                  Reason for restriction
                                                                  end of the period
                                                                                                Deposits, escrow accounts, frozen due to
Cash and cash equivalents                                               147,538,284.47
                                                                                                         litigation preservation
Accounts receivable                                                     276,390,131.13                           Pledged
Notes receivable - bank acceptance                                        2,732,733.00             Endorsed or discounted but undue
Notes receivable - trade acceptance                                       5,422,499.62             Endorsed or discounted but undue
Receivable financing                                                     42,293,141.00                           Pledged
Long-term account receivable and non-current assets due
                                                                         66,716,222.75             Factoring financing with recourse
within one year
Fixed assets                                                            477,655,980.05                        Mortgaged
Intangible assets                                                        47,082,404.81                        Mortgaged
100% equity interest in Funan Green Oriental
                                                                         69,631,957.01
Environmental Energy Co., Ltd.
100% equity interest in Poyang Greenlander Renewable
                                                                         80,733,192.59
Energy Co., Ltd.
                                                                                                           Mortgaged [Note]
50% equity interest in Lianjiang Greenlander New Energy
                                                                         68,922,363.62
Co., Ltd.
100% equity interest in Biyang County Fenghe Power New
                                                                        105,525,597.14
Energy Co., Ltd.
25% equity interest in Lianjiang Greenlander New Energy
                                                                         34,461,181.81             Frozen for litigation preservation
Co., Ltd.
  Total                                                              1,425,105,689.00
       Note: The pledged amount refers to the Company's proportionate share in net assets of each entity.


 VII. Investments

 1. Overview

 Applicable         Not applicable

      Investment amount for the reporting        Investment amount for the prior period
                                                                                                                  Change
                period (RMB)                                   (RMB)
                              106,000,002.00                                         0.00                                           100.00%


 2. Material equity investments made during the reporting period

 Applicable         Not Applicable




                                                                   30
3. Material non-equity investments ongoing during the reporting period

Applicable         Not Applicable


4. Financial investments

(1) Securities investments


Applicable         Not Applicable
No such cases during the reporting period.


(2) Derivatives investments


Applicable         Not Applicable
No such cases during the reporting period.


5. Use of proceeds

Applicable         Not applicable


(1) Overall use of proceeds


Applicable         Not applicable

                                                                                                                Unit: RMB 10,000
                                                             Total amount
                                      Total                                                              Total
                                                              of proceeds Accumulative      Share of                           Proceeds
                            Total   amount of Accumulative                                              amount   Purpose and
         Fund-raising                                         with change    amount of accumulative                            left idle
 Year                    amount of proceeds      amount of                                                of     tracking of
            type                                             of use during proceeds with proceeds with                         for over
                          proceeds used during proceeds used                                            unused unused proceeds
                                                             the reporting change of use change of use                          2 years
                                    the period                                                         proceeds
                                                                 period
                                                                                                            RMB 1 billion
                                                                                                            will
                                                                                                            temporarily
                                                                                                            replenish
         Public                                                                                             working
         offering of                                                                                        capital, and the
                        147,618.9                                                                  111,533.
2020     convertible                 7,309.89    34,879.69              0            0       0.00%          remaining                  0
                                6                                                                       84
         corporate                                                                                          amount will be
         bonds                                                                                              used to
                                                                                                            implement
                                                                                                            recent
                                                                                                            investment
                                                                                                            projects.
                        147,618.9                                                                  111,533.
 Total        --                     7,309.89    34,879.69              0            0       0.00%                  --                 0
                                6                                                                       84
                                                Explanation of the overall use of proceeds
According to the Approval of the Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co., Ltd.
(CSRC Permit [2020] No. 2219) issued by the CSRC, the lead underwriter of the Company, Huaxing Securities Co., Ltd. (formerly
known as Huajing Securities, hereinafter "Huaxing Securities") issued 14,761,896 convertible corporate bonds ("CBs") to the public
with the offering price of RMB 100 and a par value of RMB 100 for each CB, raising a total of RMB 1,476,189,600.00. Specifically,
priority allotment of 9,405,386 CBs were issued to original shareholders of the Company, accounting for 63.71% of the total amount of
this public offering; 5,304,730 CBs were issued to public investors through online channels, accounting for 35.94% of the total amount
of this public offering; 51,780 CBs were to be underwritten by the lead underwriter, accounting for 0.35% of the total amount of this

                                                                  31
public offering. Proceeds in this offering had been remitted to the Company's raised fund supervision account by the lead underwriter
Huaxing Securities on November 10, 2020, and the amount actually received after deducting RMB 15,238,100 of underwriting and
sponsorship fees (tax exclusive) was RMB 1,460,951,500. After deducting RMB 3,615,300 (tax exclusive) of external fees that were
directly related to CB such as online offering expenses, printing fee for the prospectus, fees of the reporting accountant, counsel fee,
credit rating fee, information disclosure expenses, and issuance commission fee, the net amount of proceeds from this offering was
RMB 1,457,336,200. The availability of the above-mentioned proceeds has been verified by Pan-China Certified Public Accountants
LLP in its Capital Verification Report (T.J.Y. [2020] No.490).
As at December 31, 2022, the accumulated use of proceeds was RMB 348,796,900, and the total amount of proceeds not yet used was
RMB 1,115,338,400.


(2) Projects with committed investment of proceeds


Applicable     Not applicable

                                                                                                                 Unit: RMB 10,000
               Whether                                                   Investment
 Committed                                      The     Accumulative                                                               Whether
                projects                                                 progress as Date when                       Whether
  investment                       Adjusted investment investment                                      Benefits                    there are
              have been    Total                                          at the end  the projects                       the
 projects and                        total    amount     amount as at                              realized during                 material
               changed amount of                                            of the   are ready for                   estimated
investment of                     investment during the the end of the                              the reporting                 changes in
              (including proceeds                                         reporting their intended                    return is
   excessive                      amount (1) reporting    reporting                                     period                    the project
                 partial                                                    period        use                         realized
   proceeds                                    period     period (2)                                                              feasibility
                change)                                                  (3)=(2)/(1)

 Committed investment projects
The project
of the
comprehens
                          129,63    129,638.                                         December
ive smart      No                               7,309.89    18,784.56     14.49%                        3,086.17     N/A          No
                            8.49          49                                         31, 2023
sanitation
allocation
center
Replenishm
                                                                                                      No benefit
ent of                   16,095.    16,095.1                               100.00    December
               No                                      0    16,095.13                                  generated     N/A          No
working                      13            3                                   %     31, 2020
                                                                                                      separately
capital
Subtotal of
committed                 145,73    145,733.
                 --                             7,309.89    34,879.69        --           --            3,086.17         --            --
investment                  3.62          62
projects
Investment of excessive proceeds
N/A
Repayment
of bank
                 --             0          0           0             0      0.00%         --              --             --            --
loans (if
any)
Replenishm
ent of
working          --             0          0           0             0      0.00%         --              --             --            --
capital (if
any)
Subtotal of
investment
                 --             0          0           0             0       --           --                    0        --            --
of excessive
proceeds
                          145,73    145,733.
 Total           --                             7,309.89    34,879.69        --           --            3,086.17         --            --
                            3.62          62


                                                                32
                                              On April 29, 2022, the Proposal on the Delay of Part of the Projects of Proceeds from
                                              the Public Issuance of A-share Convertible Corporate Bonds was deliberated and
                                              approved at the 18th meeting of the Ninth Board of Directors and the 17th meeting of
                                              the Ninth Board of Supervisors. The Company agreed to adjust the investment
Project-by-project details and reasons for
                                              progress by changing the date for the intended use of the above projects to December
failure to realize planned progress and
                                              31, 2023. The adjustment was made because the investment progress of the project of
expected return (including the reasons for
                                              the comprehensive smart sanitation allocation center was mainly based on the current
choosing "N/A" for "Whether the expected
                                              business size and growth expectations of the Company's sanitation projects. The
return is realized")
                                              project's investment progress fell short of expectations due to the uneven development
                                              of sanitation projects and the delay in tendering for some sanitation projects caused by
                                              the macroeconomic situation. Therefore, the Company adjusted the project's
                                              investment progress to ensure the quality and full use of proceeds.
Explanations of the material changes in the
                                              N/A
project feasibility
Amount, purpose, and progress of excessive
                                              N/A
proceeds
Location changes in the implementation of
                                              N/A
investment projects of the proceeds
Adjustments to the implementation method
                                              N/A
of investment projects of the proceeds
Early investment and placement of the
                                              N/A
investment projects of the proceeds
                                              Applicable
                                              The Proposal on Using Part of the Idle Proceeds to Replenish Working Capital was
                                              deliberated and approved at the 10th Extraordinary Meeting of the Ninth Board of
                                              Directors and the 9th Extraordinary Meeting of the Ninth Board of Supervisors held by
                                              the Company on December 4, 2020, allowing the Company to use idle proceeds of no
                                              more than RMB 1 billion for temporary replenishment of working capital, which shall
                                              be used for the production and operation related to the Company's main businesses for
                                              a period of no more than 12 months as at the date when the Proposal was deliberated
                                              and approved by the Board of Directors.
                                              The Company issued the Announcement on the Early Return of Proceeds for
                                              Temporary Replenishment of Working Capital on October 21, 2021, in which the
                                              Company returned all the above-mentioned RMB 1 billion of proceeds for temporary
                                              replenishment of working capital to the relevant designated account for proceeds on
                                              October 20, 2021 in advance for a period not exceeding 12 months.
                                              The Proposal on Using Part of the Idle Proceeds to Replenish Working Capital was
Temporary replenishment of working            deliberated and approved at the 15th Meeting of the Ninth Board of Directors and the
capital with idle proceeds                    14th Meeting of the Ninth Board of Supervisors held by the Company on October 22,
                                              2021, allowing the Company to use idle proceeds of no more than RMB 1 billion for
                                              temporary replenishment of working capital, which shall be used for the production
                                              and operation related to the Company's main businesses with a tenor of no more than
                                              12 months as at the date when the Proposal was deliberated and approved by the
                                              Board of Directors.
                                              The Company issued the Announcement on the Return of Proceeds for Temporary
                                              Replenishment of Working Capital on October 21, 2022, in which the Company
                                              returned all the above-mentioned RMB 1 billion of proceeds for temporary
                                              replenishment of working capital to the relevant designated account for proceeds on
                                              October 20, 2022 for a period not exceeding 12 months.
                                              The Proposal on Using Part of the Idle Proceeds to Replenish Working Capital was
                                              deliberated and approved at the 21st Meeting of the Ninth Board of Directors and the
                                              19th Meeting of the Ninth Board of Supervisors held by the Company on October 26,
                                              2022, allowing the Company to use idle proceeds of no more than RMB 1 billion for
                                              temporary replenishment of working capital, which shall be used for the production
                                              and operation related to the Company's main businesses with a tenor of no more than


                                                              33
                                                 12 months as at the date when the Proposal was deliberated and approved by the
                                                 Board of Directors. As at December 31, 2022, the balance of the idle proceeds used by
                                                 the Company for temporary replenishment of working capital was RMB
                                                 1,000,000,000.
 The amount of and reasons for the balance
 of the proceeds from the project                N/A
 implementation
                                                 The balance of the idle proceeds used by the Company for temporary replenishment of
 Purpose and tracking of the unused              working capital was RMB 1,000,000,000. The other unused raised fund of RMB
 proceeds                                        115,338,400 were kept in the designated account for proceeds in the form of demand
                                                 deposits to be used for the construction of the corresponding investment projects.
 Problems in the use of proceeds and
                                                 N/A
 disclosure, or other cases


(3) Changed projects of proceeds


Applicable     Not Applicable
No such cases during the reporting period.


VIII. Sale of Material Assets and Equity Investments

1. Sale of material assets

Applicable     Not Applicable
No such cases during the reporting period.


2. Sale of material equity investments

Applicable     Not Applicable


IX. Analysis of Major Subsidiaries and Joint Stock Companies

Applicable     Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company's net profit

                                                                                                                       Unit: RMB

                     Type of co    Principal ac Registered ca                         Operating re Operating pr
  Company name                                                Total assets Net assets                                   Net profit
                      mpany          tivities       pital                               venue          ofit
 Changsha Zoom
                                                 RMB 2,351.
 lion Environme                    Smart sani                    15,277,34    7,727,96    9,989,531,8    840,460,93    732,781,07
                     Subsidiary                  5298 millio
 ntal Industry C                   tation                         7,909.46    3,001.04          68.73          5.27          8.39
                                                 n
 o., Ltd.
 Shenzhen Green
  Oriental Enviro                                RMB 150 m       1,824,625,   71,415,0    260,096,67     -1,344,498.    -294,582.6
                     Subsidiary    Others
 nmental Protecti                                illion              955.67      47.49          2.90              79             2
 on Co., Ltd.
Acquisition and disposal of subsidiaries during the reporting period
Applicable     Not applicable
                                                         Acquisition and
                    Company name                            disposal of        Effects on the overall operations and performance
                                                        subsidiaries during

                                                                 34
                                                the reporting period

                                                Business
Zhejiang Yolsh Electric Drive Technology Co.,   combination not
                                                                       Positive effects on the Company's business
Ltd.                                            under common
                                                control
                                                Business
                                                combination not
Lianjiang Greenlander New Energy Co., Ltd.                             Positive effects on the Company's business
                                                under common
                                                control
Shaodong Tongying Environmental Sanitation
                                                Incorporation          Positive effects on the Company's business
Management Co., Ltd.
Xiangyin County Yingsheng Environmental
                                                Incorporation          Positive effects on the Company's business
Protection Co., Ltd.
Shengzhou Yinglia Environmental Sanitation
                                                Incorporation          Positive effects on the Company's business
Management Co., Ltd.
Guilin Yingsheng Environmental Sanitation
                                                Incorporation          Positive effects on the Company's business
Management Co., Ltd.
Guiyang Yinglian Environmental Equipment Co.,
                                                Incorporation          Positive effects on the Company's business
Ltd.
Taicang Zhongying Environmental Technology
                                                Incorporation          Positive effects on the Company's business
Co., Ltd.
Baoding Yinghe Environmental Sanitation
                                                Incorporation          Positive effects on the Company's business
Management Co., Ltd.
Wenshui County Yingsheng Environmental
                                                Incorporation          Positive effects on the Company's business
Sanitation Service Co., Ltd.
Maoming Yinghe Urban Environmental
                                                Incorporation          Positive effects on the Company's business
Sanitation Service Co., Ltd.
Wushan County Tongying Environmental
                                                Incorporation          Positive effects on the Company's business
Sanitation Service Co., Ltd.
Harbin Tongying Environmental Sanitation
                                                Incorporation          Positive effects on the Company's business
Management Co., Ltd.
Pengshui County Yingchuang Environmental
                                                Incorporation          Positive effects on the Company's business
Sanitation Service Co., Ltd.
Bengbu Tongying Environmental Sanitation
                                                Incorporation          Positive effects on the Company's business
Management Co., Ltd.
Daye Tongying Environmental Service Co., Ltd.   Incorporation          Positive effects on the Company's business
Urumqi Lianying Urban Environmental Service
                                                Incorporation          Positive effects on the Company's business
Co., Ltd.
Baoting Tongying Environmental Sanitation
                                                Incorporation          Positive effects on the Company's business
Service Co., Ltd.
Zhaoqing Duanzhou District Zhongying Urban
                                                Incorporation          Positive effects on the Company's business
Environmental Management Co., Ltd.
Zhanjiang Development Zone Zhongying Urban
                                                Incorporation          Positive effects on the Company's business
Environmental Service Co., Ltd.
Shaoxing Lianbao Environmental Sanitation
                                                Incorporation          Positive effects on the Company's business
Management Co., Ltd.
Xingguo County Yinghe Environmental
                                                Incorporation          Positive effects on the Company's business
Sanitation Management Co., Ltd.
Huaibei Tongying Environmental Sanitation
                                                Incorporation          Positive effects on the Company's business
Management Co., Ltd.
Yongzhou Lingling District Tongying
                                                Incorporation          Positive effects on the Company's business
Environmental Sanitation Service Co., Ltd.
Shaoyang Tongying Environmental Sanitation
                                                Incorporation          Positive effects on the Company's business
Service Co., Ltd.
Jianli Yinglian Environmental Sanitation
                                                Incorporation          Positive effects on the Company's business
Management Co., Ltd.


                                                          35
Suzhou Gusu District Zhongying Environmental
                                                 Incorporation   Positive effects on the Company's business
Industry Co., Ltd.
Guangzhou Zengcheng District Yinghe Urban
                                                 Incorporation   Positive effects on the Company's business
Environmental Service Co., Ltd.
Baishan Yingyuan Environmental Service
                                                 Incorporation   Positive effects on the Company's business
Engineering Co., Ltd.
Shenzhen Longhua District Yinglian Urban
                                                 Incorporation   Positive effects on the Company's business
Service Co., Ltd.
Guzhang County Yinglian Environmental
                                                 Incorporation   Positive effects on the Company's business
Sanitation Management Co., Ltd.
Changshu Zhongying Environmental Sanitation
                                                 Incorporation   Positive effects on the Company's business
Service Co., Ltd.
Suining Anju Yinglian Environmental Sanitation
                                                 Incorporation   Positive effects on the Company's business
Service Co., Ltd.
Jieyang Yingdong Urban Environmental
                                                 Incorporation   Positive effects on the Company's business
Management Co., Ltd.
Tongdao Yinglian Jiamei Environmental Industry
                                                 Incorporation   Positive effects on the Company's business
Co., Ltd.
Heyang Yinglian Urban Environmental Service
                                                 Incorporation   Positive effects on the Company's business
Co., Ltd.
Ninghai County Tongying Environmental
                                                 Incorporation   Positive effects on the Company's business
Sanitation Management Co., Ltd.
Zhanjiang Potou District Yingsheng
                                                 Incorporation   Positive effects on the Company's business
Environmental Sanitation Management Co., Ltd.
Liaoyang Yinglian Urban Environmental
                                                 Incorporation   Positive effects on the Company's business
Sanitation Management Co., Ltd.
Linqing Yinglian Urban Environmental Service
                                                 Incorporation   Positive effects on the Company's business
Co., Ltd.
Zhanjiang Xiashan District Yinghe Urban
                                                 Incorporation   Positive effects on the Company's business
Environmental Management Co., Ltd.
Haicheng Zhongying Environmental Sanitation
                                                 Incorporation   Positive effects on the Company's business
Management Co., Ltd.
Foshan Shunde District Yingjia Urban
                                                 Incorporation   Positive effects on the Company's business
Environmental Service Co., Ltd.
Xiamen Yingsheng Environmental Service Co.,
                                                 Incorporation   Positive effects on the Company's business
Ltd.
Nanfeng Yingniang Environmental Sanitation
                                                 Incorporation   Positive effects on the Company's business
Management Co., Ltd.
Tengchong Yinglian Environmental Protection
                                                 Incorporation   Positive effects on the Company's business
Technology Co., Ltd.
Chuzhou Yingsheng Environmental Sanitation
                                                 Incorporation   Positive effects on the Company's business
Management Co., Ltd.
Fuyang Yingsheng Environmental Sanitation
                                                 Incorporation   Positive effects on the Company's business
Management Co., Ltd.
Changsha Zhiying Environmental Sanitation
                                                 Incorporation   Positive effects on the Company's business
Management Co., Ltd.
Foshan Shunde District Yingzhi Smart City
                                                 Incorporation   Positive effects on the Company's business
Environmental Service Co., Ltd.
Pingdingshan Yingsheng Environmental
                                                 Incorporation   Positive effects on the Company's business
Sanitation Management Co., Ltd.
Chenzhou Zhongying Environmental Service Co.,
                                                 Incorporation   Positive effects on the Company's business
Ltd.
Zhenfeng Yinglian Environmental Sanitation
                                                 Incorporation   Positive effects on the Company's business
Management Co., Ltd.
Linfen Yaodu District Yingsheng Environmental
                                                 Incorporation   Positive effects on the Company's business
Sanitation Management Co., Ltd.
Fuyang Zhiying Environmental Sanitation          Incorporation   Positive effects on the Company's business

                                                           36
 Management Co., Ltd.
 Chengdu Yinggang Urban Environmental
                                                       Incorporation          Positive effects on the Company's business
 Sanitation Service Co., Ltd.
 Foshan Shunde District Yingteng Smart City
                                                       Incorporation          Positive effects on the Company's business
 Environmental Service Co., Ltd.
 Qingyang County Yinghe Environmental
                                                       Incorporation          Positive effects on the Company's business
 Sanitation Management Co., Ltd.
 Hubei Fenghe New Materials Co., Ltd.                  Incorporation          Positive effects on the Company's business
 Heyang Zhongying Environmental Sanitation
                                                       Incorporation          Positive effects on the Company's business
 Management Co., Ltd.
 Lanling County Lianying Environmental
                                                       Incorporation          Positive effects on the Company's business
 Sanitation Service Co., Ltd.
 Pingdingshan Yinghe Environmental Sanitation
                                                       Incorporation          Positive effects on the Company's business
 Management Co., Ltd.
 Shenzhen Infore City Service Intelligent
                                                       Incorporation          Positive effects on the Company's business
 Technology Co., Ltd.
 Guangdong Infore Mobile Charging Technology
                                                       Incorporation          Positive effects on the Company's business
 Co., Ltd.
 Guangdong Infore Intelligent Cleaning
                                                       Incorporation          Positive effects on the Company's business
 Technology Co., Ltd.
 Changsha Infore Environmental Industry Co.,
                                                       Incorporation          Positive effects on the Company's business
 Ltd.
 Changfeng County Yinghe Environmental
                                                       Incorporation          Positive effects on the Company's business
 Sanitation Management Co., Ltd.
 Zoomlion Heavy (Ningxia) Environmental                                       Asset optimization, no material impact on the
                                                       De-registration
 Industry Co., Ltd.                                                           Company's production, operation and performance
 Dali County Zoomlion Environmental Industry                                  Asset optimization, no material impact on the
                                                       De-registration
 Co., Ltd.                                                                    Company's production, operation and performance
 Kunming Zhongfeng Environmental Sanitation                                   Asset optimization, no material impact on the
                                                       De-registration
 Equipment Co., Ltd.                                                          Company's production, operation and performance
 Guangdong Yinglian Urban Environmental                                       Asset optimization, no material impact on the
                                                       De-registration
 Management Co., Ltd.                                                         Company's production, operation and performance
                                                                              Asset optimization, no material impact on the
 Foshan Yinghe Investment Co., Ltd                     De-registration
                                                                              Company's production, operation and performance
Fact sheet of major subsidiaries


X. Structured Entities Controlled by the Company

Applicable     Not Applicable


XI. Future Prospects of the Company

     (I) Market opportunities
     1. The 2022 national policies are favorable for the development of the sanitation industry
     On January 24, the State Council issued the Comprehensive Work Plan for Energy Conservation and Emission Reduction
during the 14th Five-Year Plan Period. The document sets out guiding requirements for eliminating vehicles with the national III
emission standard, promoting new energy vehicles, and winning the battle against pollution, which is conducive to industry
development.
     On January 25, the Ministry of Ecology and Environment (MEE), the Ministry of Agriculture and Rural Affairs (MOARA),
the Ministry of Housing and Urban-Rural Development (MOHURD), the Ministry of Water Resources, and the National Rural
Revitalization Bureau jointly issued the Action Plan for the Battle Against Agricultural and Rural Pollution (2021–2025). The
document calls for substantial progress in rural environmental remediation, effective control of agricultural non-point source

                                                                 37
pollution, and ongoing improvement of the rural ecological environment by 2025. Additionally, 80,000 administrative villages will
complete environmental remediation, 40% of rural domestic sewage will be treated, and large-scale black and odorous water
bodies in rural areas will be eliminated.
     On February 9, the National Development and Reform Commission (NDRC), the MEE, the MOHURD, and the National
Health Commission released the Guiding Opinions on Accelerating the Construction of Urban Environmental Infrastructure. The
document specifies comprehensive arrangements for addressing the relevant issues to accelerate the development of the garbage
collection, transfer, and transportation system.
     On February 11, the State Council issued the Plan for Advancing Agricultural and Rural Modernization during the 14th Five-
Year Plan Period. The document urges relevant parties to steadily propel toilet renovation in economically underdeveloped, high-
altitude, cold, and water-scarce areas, build manure and domestic sewage treatment facilities and comprehensive organic waste
disposal and utilization facilities based on local realities, support 600 counties to rectify rural living environments and create
beautiful and livable villages.
     On February 22, Central Document No. 1, Opinions of the CPC Central Committee and the State Council on Effectively
Implementing the Key Task of Promoting Rural Revitalization in 2022, was unveiled. In terms of rural development and
environmental improvement, the document outlined the priorities for enhancing rural living environments, such as toilet revolution,
sewage treatment, and garbage management.
     On March 9, the State Administration for Market Regulation and the National Standardization Management Committee of
China released the Standards for Rural Environmental Sanitation and Cleaning Services. The document requires that rural
sanitation and cleaning services should be provided by professional organizations or individual contractors, and outlines the
requirements that these two fields must meet. The document also specifies the content and quality requirements for the cleaning
services of garbage collection sites, roads, public toilets, public water areas, and other public facilities.
     On March 17, the NDRC issued the Key Tasks for the Development of New Urbanization and Urban-Rural Integration in
2022. The document calls for improving hazardous waste and medical waste centralized treatment facilities as well as the
comprehensive utilization system of bulk solid waste, advancing domestic waste classification actively and steadily, and closing
the gap in urban sewage treatment capacity at a faster pace. It also urged to repair and update old and damaged sewage pipeline
networks and rainwater and sewage pipeline networks that cause waterlogging problems, launch "green life" campaigns, and
encourage green transportation as well as green household and community development.
     On March 24, the NDRC and the National Energy Administration issued the Mid- and Long-Term Development Plan for the
Hydrogen Energy Industry (2021–2035), which suggests piloting the use of fuel cell commercial vehicles in public services such
as urban buses, logistics delivery vehicles, and sanitation vehicles in areas where conditions permit. This is beneficial for
promoting the adoption of hydrogen fuel in the sanitation industry.
     On April 1, the State Administration for Market Regulation and the National Standardization Management Committee of
China released the Requirements for Urban and Rural Community Environmental Sanitation and Cleaning Services. According to
the standard, community sanitation and cleaning services cover a wide range of fields, including but not limited to the cleaning of
roads, indoor and outdoor public areas, agricultural markets, public toilets, and water areas, as well as garbage collection and
transportation and emergency operations.
     On April 27, the MOHURD, the NDRC, and the Ministry of Water Resources jointly issued the Action Plan for the
Construction of Urban Drainage and Flood Control System during the 14 th Five-Year Plan Period. The Plan sets out requirements
to check urban drainage and flood control facilities, urban flood control engineering facilities, and urban natural retention space to
assess disaster risks. It also urges the relevant parties to evaluate the emergency management capabilities of urban drainage and
flood control and inspect flood control safety hazards in critical infrastructure such as water and gas supply. Furthermore, the
document calls for the construction of drainage pipeline networks, pumping stations, and drainage channels, as well as measures to
reduce rainwater at the source and rectify water accumulation points. These actions will promote systematic governance.




                                                                     38
       On May 29, the MOHURD, the MOARA, the NDRC, the MEE, the National Rural Revitalization Bureau, and the All-China
Federation of Supply and Marketing Cooperatives jointly issued the Notice on Further Strengthening the Construction and
Management of Rural Domestic Waste Collection, Transportation, and Disposal System. The document sets out the objectives for
2025 and defined key tasks such as overall planning of the construction and operational management of rural domestic waste
collection, transportation, and disposal systems, promoting source classification and resource utilization, improving collection,
transportation, and disposal systems, enhancing operational management, and establishing a mechanism for joint building,
governance, and sharing. These measures will drive the growth of waste-related products in the rural environmental sanitation
market.
       On June 17, the MEE, the NDRC, the MIIT, the MOHURD, the Ministry of Transport, the MOARA, and the National
Energy Administration jointly issued the Implementation Plan for Synergizing the Reduction of Pollution and Carbon Emissions.
The Plan sets forth requirements to accelerate the development of new energy vehicles, promote the electrification of public
transportation in a phased manner, steadily replace old vehicles with new energy vehicles, and gradually adopt new and clean
energy-powered non-road mobile machinery. It also calls for exploring the demonstration application and commercial operation of
medium and heavy-duty electric and fuel cell trucks. By 2030, the sales of new energy vehicles in key areas of air pollution
prevention and control will rise to around 50% of the total vehicle sales.
       On July 26, the Ministry of Civil Affairs, the NDRC, the MOHURD, and 13 other departments jointly issued the Opinions on
Improving the Comprehensive Village-level Service Functions. The document sets forth requirements to accelerate the
construction of household access roads to facilitate public travel and firefighting, advance the rural toilet revolution, speed up the
classification and resource utilization of domestic waste, comprehensively improve the management of rural domestic waste, and
propel the treatment of rural domestic sewage at a faster pace.
       On July 29, the MOHURD and the NDRC jointly released the National Urban Infrastructure Construction Plan during the
14th   Five-Year Plan Period. The Plan sets out requirements to increase the capacity for domestic waste classification, collection,
and transportation by 200,000 tons daily, the capacity for domestic waste incineration by 200,000 tons daily, and the capacity for
resource utilization of domestic waste by 30 million tons yearly during the 14th Five-Year Plan period. In addition, 500 existing
domestic waste treatment facilities will be renovated.
       On September 14, the General Office of the Ministry of Transport announced the first batch of pilot projects for intelligent
transportation applications (autonomous driving and intelligent shipping). A total of 18 pilot projects were launched, many of
which involved autonomous driving in environmental sanitation. Among them, 14 self-driving pilot projects covered low-speed
scenarios such as unmanned delivery, vending, shuttle, cleaning, and port driving, with more than 1,400 driverless vehicles
invested.
       On November 10, the MEE, the NDRC, and 13 other departments issued the Action Plan for the Critical Battle Against
Severely Polluted Weather, Ozone Pollution, and Diesel Truck Pollution. The Plan urges the relevant parties to promote the
electrification of public service vehicles, ensuring no less than 80% of incremental or upgraded buses, taxis, and logistics delivery
and light-duty sanitation vehicles in key areas and national ecological civilization experimental zones are fueled by new energy
sources. This will significantly drive the adoption of new energy-powered sanitation vehicles.
       2. The demands for urban services will keep increasing
       The source of urban services revenue is the government budget with the nature of rigid expenditure and is less affected by
macroeconomic regulation factors. The business is featured by continuity and stability.
       (1) The scale of demand for services driven by urbanization
       As urbanization continues, the construction of urban roads will directly increase the area for road cleaning, urban housing,
compound construction, and urban greening, hence increasing the demand for environmental protection equipment and urban
cleaning services. Furthermore, sanitation is one of the prerequisites for each province, city, and district to construct urban
upgrades such as "national civilized cities", "national hygienic cities", "national model cities of environmental protection", and
"national ecological garden cities". According to the National Bureau of Statistics and the MOHURD, statistics show that from



                                                                     39
2015 to 2021, the area of road cleaning in China's cities and counties increased from 9.678 billion sqm to 13.337 billion sqm, an
overall increase of nearly 37.8%; the domestic waste removed and transported in cities and counties rose from 258 million tons to
317 million tons, an overall growth of 22.9%. Driven by urbanization, in order to maintain the cleanliness and sanitation of urban
roads, residential compounds, and municipal gardens, as well as the normal transfer and treatment of domestic waste, the release
of urban service demands are constantly facilitated.
     (2) The "Beautiful Countryside" kick-started, and the rural sanitation market is gradually gaining momentum
     The Five-Year Action Plan for the Remediation and Improvement of Rural Living Environment (2021-2025) requires that "the
rural toilet revolution shall be firmly implemented", "the promotion of rural domestic sewage treatment shall be accelerated", and
"the standard of rural domestic waste treatment shall be improved comprehensively". In the era of building "beautiful villages" and
boosting urban and rural sanitation integration, projects like promotion by all counties and comprehensive management have
emerged continuously and the rural sanitation market will enter a new stage for further rapid market expansion. This will create
vast opportunities for urban services and the entire sanitation industry.
     (3) Continued promotion of waste classification and the continued release of market demands
     In September 2020, President Xi Jinping chaired the meeting of the Central Comprehensively Deepening Reforms
Commission, at which the Several Opinions on Further Promoting Domestic Waste Classification was deliberated and approved.
The accelerated implementation of waste classification policies would overturn the traditional domestic waste collection and
transportation system. Conventional sanitation vehicles will no longer meet the needs of classified collection and transportation.
Domestic waste is treated in four steps, namely "dumping", "collection", "transportation", and "disposal", requiring upgrades and
renovation of traditional sanitation technology and equipment. Additionally, making the system smart requires increased
investment, spurring a continuous release of market demand.
     (4) Full electrification of public service vehicles and increasing demand for new energy-powered environmental protection
equipment
     On January 30, 2023, the MIIT, together other seven other state departments issued the Notice on Organizing the Pilot
Program of Pilot Zones for Full Electrification of Public Service Vehicles, setting out to launch nationwide pilot programs of pilot
zones for full electrification of public service vehicles from 2023 to 2025. The document requires that there should be a significant
rise in the proportion of new energy vehicles in incremental and upgraded vehicles in pilot areas, with an 80% level in terms of
buses, taxis, sanitation, postal and express delivery, and urban logistics vehicles to be fueled by new energy. Since 2012, China has
made a guiding policy to accelerate the cultivation of the new energy vehicle industry, and has successively released important
documents for its promotion. After a period of development, new energy-powered sanitation vehicles are poised for significant
growth.
     (5) The increasing mechanization will drive the growth in the environmental protection equipment market
     The increase in mechanization rate of the sanitation industry will reduce the cost of sanitation operations and relieve the
financial burden of governments and enterprises. With the expansion of China's urban and rural road cleaning areas, the
mechanization rate of the sanitation industry is gradually increasing. According to the statistics on urban and rural construction
released by MOHURD, at the end of 2021, the mechanical cleaning space of the road in cities across the country reached 10,342
million square meters, with a mechanical cleaning rate of 78.41%; the mechanical cleaning space of the road in counties across the
country reached 2.995 billion square meters, with a mechanical cleaning rate of 76.25%. In comparison, the mechanization rate of
sanitation industry in the urban area of developed countries can usually reach 80%. As such, there is still room for development in
terms of the mechanization level of sanitation industry in China. In the future, as labor costs continue to rise, the mechanization of
sanitation operations will become the main development direction of the domestic sanitation market, and it will cover road
cleaning, guardrail cleaning, waste collection & transportation, and other segments.
     (6) The trend of aging population will drive the expansion of the environmental protection equipment market
     The frequent adjustments made by China in terms of minimum wages in different cities have largely influenced the operating
costs of urban service enterprises. The defects including high operating costs and low working efficiency in the traditional manual



                                                                   40
urban service model have increased the business pressure on sanitation operation enterprises. Furthermore, China's elderly
population is expected to reach 280 million by 2022, with an aging population of 19.8%, according to the National Committee on
Aging Population. The aging trend will exacerbate the workforce deficit in the sanitation industry. Meanwhile, with the
diversification of job options, the number of young and middle-aged laborers who are willing to engage in sanitation work is also
decreasing. Therefore, improving the mechanization rate of the sanitation industry and expanding the use of environmental
protection equipment is not only a realistic need in the face of the labor market shortage, but also the requirement for the
development of urban sanitation level.
     (7) Industrial breakthrough fueled by technological advancement
     The rapid development of 5G and AI technology has widened industrial boundaries and opened up a slew of new
opportunities. Small-sized smart devices and smart services will be the new bonanza, introducing new variables and increments for
the sector. Smart, less humanized, or even unmanned sanitation will be a general trend.
     (II) Business plan of 2022
     In 2022, the Company closely revolved around its development strategy and annual business plan, focusing on its core
strategic business. It strengthened technological innovation and product research and development, improved internal operations,
and actively promoted smart sanitation, achieving its business plan relatively well for 2022. The business target set at the
beginning of the year was for the Company to achieve RMB 60 billion in the planned cumulative contract amount of its smart
urban services and RMB 4. billion in its annual operating revenue; the actual planned cumulative contract amount of the
Company's smart urban services reached RMB 54.165 billion while its annual operating revenue recorded RMB 4.158 million.
     In 2022, the Company completed its annual revenue target of RMB 4 billion for smart services, with an achievement rate of
103.95%; It did not complete its operation target of RMB 60 billion in total contract value, with an achievement rate of 90.27%.
The reason for the Company's failure to achieve the operating target of the total contract value is the decrease of orders with long
cycles of more than 5 years in the market, resulting in a slight decrease of the total contract value of orders obtained by the
Company. In 2023, the Company will take into account the market development trend, diversify the business forms and actively
attract short- and medium-cycle projects.
     2023 Operation target: to achieve a cumulative contract value of RMB 80 billion for the Company's smart urban service
solutions, and to realize an annual revenue of RMB 6.5 billion; from 2020 to 2024, the planned cumulative contract value would
be RMB 100 billion, so as to achieve an annual revenue of RMB 10 billion.
     The Company will continue to increase resource input in its strategic core business, smart urban service, striving to be one of
the top-ranking enterprises in the industry in the next five years.
     In 2023, the Company will continue to follow the strategy of technology and product leadership, with a further focus on smart
sanitation. At the same time, it will expand its presence in new energy products, including solar panel brackets as well as energy
storage products for industrial and commercial purposes.
     (III) Plan for use of funds
     2023 is a key period for the Company's rapid development. Given the relatively large demand for funds, the Company will
formulate a funding supply and demand plan to match the Company's development. The Company will make full use of its own
funds. It will also further strengthen the management of accounts receivable while optimizing the financial structure to provide
strong financial guarantees for the Company's business development and control financial risks. The source of funds is the
optimization and combination of multiple channels including the issuance of commercial paper, medium-term note, cash flows
from operating activities, and bank loans.
     (IV) Main risk factors that may adversely affect the achievement of the Company's future development strategies and
business objectives
     1. Policy-related risks
     As the state attaches more importance to environmental protection and environmental governance, unprecedented
development opportunities will also appear in the environmental protection industry, but such industry is also highly dependent on



                                                                      41
national industrial policies since it is typically policy-driven. Adjustments to macroeconomic policies, tax policies, environmental
industry policies and environmental management policies will affect the Company's performance.
     Countermeasures: To raise the scientific decision-making capacity of managers and boost the Company's resilience against
policy-related risks, the Company will pay careful attention to changes in national macroeconomic policies and strengthen
research and analysis of industry policies.
     2. Operation management risks
     As the Company continuously expands its business scale, enriches its business types, broadens its markets and develops more
subsidiaries, its asset scale, personnel scale and organization scale are also undergoing rapid expansion, causing its organizational
structure and management system to become more complex. Although the Company has formed a complete set of management
policies for internal control and improved it annually, the difficulties and risks in the management and control are still increasing
due to the differences in industry attributes, geographic distribution, cultural characteristics and corporate culture of its branch
institutions.
     Countermeasures: the Company is concentrating on strengthening the management and risk control systems, further
improving the operation management system and business process, continuing to refine management, and strengthening the risk
control and culture of subsidiaries, all while strengthening the talent team.
     3. Heightened market competition risks
     The sanitation industry in China is an emerging comprehensive industry that is still in the early stages of marketization and
has a relatively low level of concentration. However, the industry is currently in a period of rapid growth. With its rapid growth,
the involvement of upstream and downstream enterprises, and the continuous participation of new enterprises in different sectors,
market competition will continue to intensify. The Company will likely face the risk of losing market share in the future.
     Countermeasures: the Company will continue to pursue a technology-driven development strategy in order to preserve its
technological leadership in the industry and, as a result, solidify its market leadership.
     Nothing in this report about future plans, performance forecasts, or other matters represents a commitment by the Company to
any investors or other third parties. All investors and relevant persons shall remain adequately aware of risks.


XII. Visits Paid to the Company for Purposes of Research, Communication, and Interview
during the Reporting Period

Applicable      Not applicable
                                                                                                     Main content of
                                                                                                                        Reference of the
                                                                                                     discussion and
      Time                Venue           Method      Visitor type              Visitor                                  study's basic
                                                                                                        materials
                                                                                                                          information
                                                                                                        provided
                                                                     Guangfa Securities, Guotai
                                                                     Junan Securities, Dongxing                       For details, please
                                                                     Securities, Ping An Wealth                       refer to the
                                                                     Management, Huatai Asset                         Record Sheet of
                                                                     Management, Kaifeng                              Investor Relations
                                                                                                     Business
                                                                     Investment, Hongta Hongtu                        Activities
                                                                                                     strategy and
May 10, 2022       Shenzhen China       Field study Institution      Fund, Goldstate Securities,                      disclosed by the
                                                                                                     operating status
                                                                     OH Bay, Evergrande Life,                         Company on May
                                                                                                     of the Company
                                                                     Everbright Securities,                           11, 2022 on
                                                                     Natural Power Capital,                           Cninfo
                                                                     Yingda Securities, Chasing                       (www.cninfo.com
                                                                     Securities, and Penghua                          .cn)
                                                                     Fund
                   "Interactive                                      Investors participated in the   The Company's     For details, please
May 25, 2022       Platform for         Others        Others         2021 Infore Enviro online       projects and      refer to the
                   Investor                                          performance briefing            market            Record Sheet


                                                                     42
Relations" on        developments   Investor Relations
Panorama                            Activities
Network                             disclosed by the
                                    Company on May
                                    25, 2022 on
                                    Cninfo
                                    (www.cninfo.com
                                    .cn)




                43
                                    Part IV Corporate Governance

I. General Information of Corporate Governance

     1. The Company continuously perfects its corporate governance structure in strict accordance with the requirements of the
Company Law, the Securities Law and the relevant laws and regulations of the CSRC. The Board of Directors has four special
committees, namely, Strategy Committee, Audit Committee, Nomination Committee, and Remuneration & Appraisal Committee,
dedicated to providing advice and recommendations to ensure the Board of Directors' deliberation and decision-making are
professional and efficient.
     2. The Company convenes the Annual General Meeting of Shareholders in strict accordance with the relevant provisions of
the Articles of Association and Rules of Procedure for General Meeting of Shareholders of the Company. The Board of Directors,
which is the decision-making body of the Company, conscientiously implements the resolutions of General Meetings of
Shareholders. The Board of Supervisors exercises its supervisory authorities and powers in strict accordance with the regulations,
and it supervises the financial affairs of the Company as well duty performance and actions of directors and senior management
members, thus safeguarding the legitimate rights and interests of the Company and all shareholders. The Management of the
Company strictly implements the resolutions of the General Meetings of Shareholders and the Meetings of the Board of Directors
and executes decisions. All functional departments and holding subsidiaries of the Company are responsible for the day-to-day
operations.
     3. During the reporting period, in order to standardize its insider information management, ensure confidentiality of insider
information and effective registration and management of insiders who have access to insider information, effectively prevent
securities violations of laws and regulations such as insider trading, maintain the fairness of information disclosure, and protect the
legitimate rights and interests of the general investors, the Company promptly, truthfully and fully recorded all the persons with
access to the insider information before disclosure at stages such as discussion and planning, demonstration and consultation,
establishment and in phases such as reporting, transmission, preparation, examination, resolution, and disclosure, as well relevant
information archives regarding the content, time, place, basis and method, etc. for the insiders to know the insider information, and
file with the relevant regulatory authorities to strictly prevent the occurrence of insider trading, pursuant to the laws and
regulations such as the Securities Law, the Measures for the Administration of Information Disclosure by Listed Companies, as
well as the relevant provisions of the Articles of Association, Information Disclosure Management Policy, and Policy on Internal
Reporting of Material Information of the Company.
     4. The Company discloses information strictly in accordance with the provisions of the Company Law, the Securities Law, the
Rules Governing the Listing of Shares on SZSE, and other relevant laws, regulations and normative documents, as well as the
Information Disclosure Management Policy, to ensure that it makes true, accurate, complete, timely and fair information
disclosure to increase the openness and transparency of its operations. The Company has received no disciplinary actions such as
criticism and reprimand from the stock exchange for issues relating to information disclosure. During the reporting period, there
were no governance irregularities such as the provision of undisclosed information to the controlling shareholder and the de facto
controller.
     5. During the reporting period, when material events occurred in the Company, there was no abnormal fluctuation in the stock
price arising from leakage of inside information. As part of its next steps, the Company will constantly improve its corporate
governance structure, further standardize corporate operations, and raise the level of corporate governance pursuant to relevant
laws and regulations as well as the requirements of the SZSE.

As to the actual status of corporate governance whether there is any material departure from laws, administrative regulations and
the rules issued by the CSRC on listed company governance
Yes No

                                                                   44
As to the actual status of governance of the Company, there is no material non-compliance with laws, administrative regulations,
and the rules issued by the CSRC on the governance of listed companies.


II. Independence of the Company from the Controlling Shareholder and De Facto
Controller and on Ensuring Company's Assets, Personnel, Finance, Structure and
Businesses and Other Aspects

The Company is completely independent of the controlling shareholder in terms of businesses, personnel, assets, organization and
finance, etc., and has fully independent businesses and operation capacity. Details are as follows:

     (1) Business independence: The Company's businesses are independent of the controlling shareholder, and the controlling
shareholder and its affiliates are not engaged in any businesses in competition with the Company.
    (2) Personnel separation: The personnel of the Company are independent of the controlling shareholder, and the President,
CFO, Board Secretary and other senior management members of the Company do not hold positions other than directors in the
controlling shareholder, the financial officers of the Company do not have a part-time job in affiliated companies. The Company
has put in place independent policies on labor, personnel and remuneration management and established an independent labor and
personnel management department. Thus, its labor, personnel and remuneration management are completely independent.
    (3) Integrity of assets: The Company owns independent and complete assets and has independent production, supply and sales
systems, and there is no horizontal competition between the Company and its controlling shareholder in the manufacturing and
operation of the same products. (4) Organizational independence: The Company is organizationally complete, and there is no
superior-subordinate relationship between its controlling shareholder and functional departments thereof and the Company and
functional departments thereof. The Company's Board of Directors, Board of Supervisors and other internal institutions operate
fully independently.
    (5) Financial separation: The Company's finance is entirely independent, with an independent financial department. It has also
established an independent accounting system and financial accounting management system responsible for independent
accounting, independent opening of bank accounts and independent tax payment.


III. Horizontal Competition

Applicable      Not Applicable


IV. Annual and Extraordinary General Meetings of Shareholders Convened During the
Reporting Period

1. General meetings of shareholders convened during the reporting period

                                                 Investor
                                                                  Date of the      Disclosure
      Meeting                 Type             participation                                              Meeting resolution
                                                                   meeting            date
                                                   ratio
                                                                                                    The Announcement on the
                                                                                                    Resolutions of the 2021 Annual
                                                                                                    General Meeting of
                                                                                                    Shareholders (Announcement
 The 2021 Annual       Annual General                                                               No.: 2022-043) published in the
 General Meeting       Meeting of                    49.66%     May 24, 2022     May 25, 2022       Securities Daily, the Securities
 of Shareholders       Shareholders                                                                 Times, the China Securities
                                                                                                    Journal, the Shanghai
                                                                                                    Securities News and
                                                                                                    http://www.cninfo.com.cn,
                                                                                                    which are the media designated

                                                                 45
                                                                                                            by the Company for
                                                                                                            information disclosure.
                                                                                                            The Announcement on the
                                                                                                            Resolutions of the First
                                                                                                            Extraordinary General Meeting
                                                                                                            of Shareholders in 2022
                                                                                                            (Announcement No.: 2022-075)
  The first
                                                                                                            published in the Securities
  extraordinary            Extraordinary
                                                                     September 13,      September 14,       Daily, the Securities Times, the
  general meeting of       general meeting of           47.33%
                                                                     2022               2022                China Securities Journal, the
  shareholders in          shareholders
                                                                                                            Shanghai Securities News and
  2022
                                                                                                            Cninfo
                                                                                                            (http://www.cninfo.com.cn),
                                                                                                            which are the media designated
                                                                                                            by the Company for
                                                                                                            information disclosure.


 2. Extraordinary general meeting of shareholders convened at the request of preference shareholders
 with resumed voting rights

 Applicable     Not Applicable


 V. Information of directors, supervisors and senior management members

 1. Basic information

                                                                                              Numbe
                                                                                                r of
                                                                                                         Number
                                                                                               shares                      Ending   Reasons
                                                                                  Beginning              of shares
                             Incumbent/                 Start of      End of                  increas               Other number of for share
   Name         Position                Gender Age                                number of             decreased
                               Former                   tenure        tenure                     ed                changes shares increase/d
                                                                                  shares held           during the
                                                                                              during                        held     ecrease
                                                                                                          period
                                                                                                the
                                                                                              period
              Chairman of
              the Board                               December January 11,                                                  1,654,60
Ma Gang                   Incumbent Male         44                               1,654,600        0           0        0            N/A
              and                                     4,2014   2026                                                                0
              President
                                                      September     January 11,
Su Bin        Director       Incumbent Male      45                                        0       0           0        0         0 N/A
                                                      6, 2021.      2026
Kuang                                                 January 30,   January 11,
              Director       Incumbent Male      44                                        0       0           0        0         0 N/A
Guangxiong                                            2019.         2026
                                                      January 30,   January 11,
Shen Ke       Director       Incumbent Male      52                                        0       0           0        0         0 N/A
                                                      2019.         2026
              Independent                             December      January 11,
Zhang Yu                     Incumbent Male      45                                        0       0           0        0         0 N/A
              Director                                26, 2019.     2026
              Independent                             December      January 11,
Li Ruidong                   Incumbent Male      46                                        0       0           0        0         0 N/A
              Director                                26, 2019.     2026
              Independent                             January 12,   January 11,
Li Yingzhao                  Incumbent Male      61                                        0       0           0        0         0 N/A
              Director                                2023.         2026
              Chairman of
Jiao                                                  November January 11,
              the Board of   Incumbent Male      42                                 308,692        0           0        0   308,692 N/A
Wanjiang                                              14, 2016. 2026
              Supervisors
                                                    December        January 11,
Liu Kan       Supervisor     Incumbent Male      39                                        0       0           0        0         0 N/A
                                                    26, 2019.       2026
              Employee                   Femal      November        January 11,
Lin Meiling                  Incumbent           38                                        0       0           0        0         0 N/A
              Supervisor                 e          14, 2016.       2026


                                                                      46
             Vice
Wang                                                       April 29,   January 11,
             President &    Incumbent Male            47                                  800       0         0      0       800 N/A
Qingbo                                                     2022.       2026
             CFO
             Vice
             President                                     December January 11,
Jin Taotao                  Incumbent Male            40                                    0       0         0      0         0 N/A
             and Board                                     26, 2019 2026
             Secretary
             Independent                                   November December
Shi Shuiping                Left office Male          48                                    0       0         0      0         0 N/A
             Director                                      14, 2016 26, 2022
             Vice
                                                           November April 29,
Lu Anfeng    President &    Left office Male          45                              486,762       0         0      0   486,762 N/A
                                                           8, 2013  2022
             CFO
                                                                                                                         2,450,85
Total               --           --         --        --        --         --        2,450,854      0         0      0                 --
                                                                                                                                4

 Whether any director or supervisor left office or any senior management member was dismissed during their tenure during the
 reporting period
 Yes No

        During the reporting period, the Ninth Board of Directors of the Company expired in December 2022, and Mr. Shi Shuiping,
 an independent director of the Ninth Board, also left office due to the expiration of his term. In addition, in April, Mr. Lu Anfeng,
 the former Vice President and CFO, resigned due to work-related reasons. His resignation took effect as from the date of
 submission to the Board of Directors according to the Company Law, Guidelines No. 1 of Shenzhen Stock Exchange for Self-
 regulation of Listed Companies—Standardized Operation of Companies Listed on the Main Board, and Articles of Association. Mr.
 Lu directly holds 486,762 shares in the Company and has fulfilled the corresponding undertakings in accordance with relevant
 provisions. The above changes will not adversely affect the production and operation of the Company.

 Changes of the company's directors, supervisors and senior management members
 Applicable       Not applicable

             Name                     Position held                     Type                       Date                    Reason
                                                              Left office due to                                  Left office due to
  Shi Shuiping                Independent Director                                        December 26, 2022
                                                              expiry of term                                      expiry of term
  Lu Anfeng                   Vice President & CFO            Dismissed                   April 29, 2022          Work-related reasons


 2. Position and biographical information

 Professional backgrounds, major work experience and current posts in the Company of the incumbent directors, supervisors and
 senior management members:

        1. Mr. Ma Gang, born in 1979, with a master's degree, is Chairman of the tenth Board of Directors of Infore Environment.
 Starting from December 2014 till now, he has been serving as President of the Company. He joined Midea Group in June 2001,
 and successively held the positions of R&D Engineer, branch salesman and Regional Director at Midea Rice Cooker Division,
 General Manager at Midea Small Domestic Appliance Sales Company in China, President of China Marketing Headquarters of
 Midea Daily Home Electric Appliance Group, Vice President and Domestic Sales General Manager at Midea Small Domestic
 Appliance Division, Vice President of Midea Small Domestic Appliance Division and General Manager at Midea Water Material
 Product Company, and Deputy Director at Midea Domestic Market Department.
        2. Mr. Su Bin, born in 1978, with a Master's degree, is the Director of the tenth Board of Directors of Infore Enviro. From
 October 2020 till now, he has been Vice President of Infore Group Co., Ltd. From March 2013 to October 2020, he successively
 held the positions of Executive President and President of Fosun Group's Energy and Environment Group, as well as the Executive
 President and Vice President of Fosun Capital, etc. He was a Partner of Mingli China Growth Fund from January 2009 to February
 2013 and an Executive Director of Hongshang Industrial Holding Group Co., Ltd. from March 2003 to December 2008.


                                                                         47
3. Mr. Kuang Guangxiong, born in 1979, holding a master's degree, is a PRC Certified Public Accountant and International
Accountant, in addition to Director of the tenth Board of Directors of Infore Enviro. He has been Vice President of Infore Group
since October 2018. From July 2002 to October 2018, he successively held the positions of Financial Manager at Midea Daily
Home Electric Appliance Group, Financial Manager at Midea subsidiary in the US, Financial Director at Midea Kitchen
Appliances Division, Financial Director at Midea Commercial Air Conditioner Division, and Financial Director at Midea-KUKA
Joint Venture in China.
     4. Mr. Shen Ke, born in 1971, holding a master's degree, is the Director of the tenth Board of Directors of Infore Enviro. He is
Vice President of Zoomlion Heavy Industry Science and Technology Co., Ltd. from September 2020 to the present. From July
2003 to September 2020, he held the positions of Head of the Investment Development Department, Board Secretary, and
Investment Director at Zoomlion Heavy Industry Science and Technology Co., Ltd.
     5. Mr. Zhang Yu, born in 1978, holding a doctorate degree, is an Independent Director of the tenth Board of Directors of
Infore Enviro. He has served as Associate Professor and Professor at China Europe International Business School since 2015, and
held the position of Assistant Professor at the University of California, Irvine from 2008 to 2015.
     6. Mr. Li Ruidong, born in 1977, holding a bachelor's degree, is an Independent Director of the tenth Board of Directors of
Infore Enviro. He has been President and Editor-in-chief at the China Environment Magazine since November 2013. He served as
Assistant to the General Manager of Environmental Protection Magazine Co., Ltd. from February 2012 to November 2013, and
Director of the Office of Environmental Protection from March 2008 to January 2012.
     7. Mr. Li Yingzhao, born in 1962, holding a doctorate, is a Professor of Accounting at the School of Business Administration,
South China University of Technology, and he currently serves as Independent Director of the tenth Board of Directors of Infore
Enviro. He also currently serves as Independent Director at Guangdong TLOONG Technology Group Co., Ltd. and Guangzhou
Haige Communications Group Co., Ltd., and External Supervisor of Nanhai Rural Commercial Bank Co., Ltd. He served as
Independent Director at such listed companies as Guangzhou Friendship Group Co., Ltd. and Shenzhen Zhongjin Lingnan
Nonfemet Co., Ltd. He has participated in the SZSE training and received the Independent Director Qualification.
     8. Mr. Wang Qingbo, born in 1976, holding a bachelor's degree, is Vice President and CFO of Infore Enviro. He previously
served as Vice President and Vice President of Finance at Guangdong NVC Lighting Technology Co., Ltd., Vice President of
Finance at Guangdong Xinbang Logistics Co., Ltd., CFO at Midea Annto Logistics Division, Deputy CFO at Midea Small
Domestic Appliance Division, Financial Manager at Midea Industrial Design Company, and Financial Supervisor at Midea Fan
Factory.
     9. Mr. Jin Taotao, born in 1983, a master's degree holder, is Vice President and Board Secretary of Infore Enviro. He held the
positions of Engineer at the Environmental Planning Institute of the MEE (formerly the Ministry of Environmental Protection)
from September 2005 to April 2016, Vice President at Infore Environment Technology Group Co., Ltd from May 2016 to June
2019, and Board Secretary at Stariver Environmental Technology Co., Ltd. from July 2019 to November 2019. Mr. Jin Tao joined
the SZSE qualification training for Board Secretaries in November 2019 and obtained the qualification certificate for Board
Secretary.
     10. Mr. Jiao Wanjiang, born in 1981, holding a master's degree, is Chairman of the tenth Board of Supervisors of Infore
Enviro. He is currently the General Manager of the Business Department of Infore Environment Technology Group Co., Ltd. He
successively served as Head of the Operation Management Department and General Manager of the Solid Waste Treatment
Department of Infore Environment Technology Group Co., Ltd. He joined Midea in July 2005. He successively held the positions
of Domestic Sales Branch Manager of Guangdong Midea Small Domestic Appliance Sales Company in China, Senior Product
Planning Manager at Headquarters and Head of Brand & Marketing Department of Headquarter.
     11. Mr. Liu Kan, born in 1984, holding a bachelor's degree, is the Supervisor of the tenth Board of Supervisors of Infore
Enviro. He has served the Company since February 2016, and is currently Director of the Operation Management Department of a
subsidiary. He held the positions of General Manager at Infore Network Technology Co., Ltd. from 2017 to November 2019,
Director of the Operation Management Department of University Science & Technology (Shenzhen) Co., Ltd. from 2016 to 2017,



                                                                  48
and Rice Cooker Product Planning Manager at Midea Small Domestic Appliance Shenzhen Branch and Midea Small Domestic
Appliance Division from 2006 to 2015.
    12. Ms. Lin Meiling, born in 1985, holding a bachelor's degree, is the Supervisor of the tenth Board of Supervisors of Infore
Enviro. She is currently the Director of Human Resources at Infore Environment Technology Group Co., Ltd. From 2010 to now,
she is responsible for the administration and human resources affairs of the Company.

Positions held in shareholder entities:
Applicable      Not applicable
                                                                                                             Receiving remuneration
     Name of the
                                              Position held at the                                  End of    or allowance from the
  personnel holding      Shareholder entity                               Start of tenure
                                              shareholder entity                                    tenure    shareholding entity or
       position
                                                                                                                       not
                        Infore Group Co.,
 Ma Gang                                      Director                 March 6, 2018            -            No
                        Ltd.
                        Infore Group Co.,     Director and Co-
 Su Bin                                                                November 13, 2020        -            Yes
                        Ltd.                  President
 Kuang                  Infore Group Co.,     Director and Co-
                                                                       October 1, 2018          -            Yes
 Guangxiong             Ltd.                  President
                        Zoomlion Heavy
                        Industry Science
 Shen Ke                                      Vice President           June 29, 2015            -            Yes
                        and Technology
                        Co., Ltd.
 Statements on
 positions held in
                        -
 shareholder
 entities

Positions held in other entities:
Applicable      Not applicable
     Name of the                                                                                             Receiving remuneration
                            Name of other      Position held in
  personnel holding                                                      Start of tenure    End of tenure    or allowance from other
                               entity            other entity
       position                                                                                                    entities or not
                        Bichamp Cutting
 Shen Ke                Technology            Director                 July 5, 2014.        -                No
                        (Hunan) Co., Ltd.
                        China Europe
 Zhang Yu               International         Professor                July 1, 2015.        -                Yes
                        Business School
                         China
                                              President and
 Li Ruidong             Environment                                    November 1, 2013     -                Yes
                                              Editor-in-chief
                        Magazine
 Statements on
 positions held in      -
 other entities
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors and senior
management members as well as those who left office during the reporting period:
Applicable      Not Applicable


3. Remuneration of directors, supervisors and senior management Members

Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and senior
management members




                                                                  49
     The remuneration of the directors, supervisors and senior management members of the Company for 2022 is strictly in
compliance with the Remuneration Plan for Directors, Supervisors and Senior Management Members in 2022 deliberated and
adopted by the Company, the Rules of Procedure for the Board of Directors formulated by the Company, the Rules of Procedure
for the Board of Supervisors and the Articles of Association of the Company, as well as the relevant provisions of the Company
Law. The remuneration of the Company's directors, supervisors and senior management members shall be determined on the basis
of reasonable remuneration in the market and the Company's performance appraisal results. The actual remuneration of the
independent directors of the Company is paid on an annual basis. The actual remuneration of senior management is partly on a
monthly basis, and the part linked to the Company's performance is paid at the end of the year.

Remuneration of directors, supervisors and senior management members of the Company during the reporting period

                                                                                                                     Unit: RMB 10,000

                                                                                                Total pre-tax              Receiving
                                                                        Incumbent/For           remuneration          remuneration from
      Name                 Position            Gender        Age
                                                                             mer                  from the              the Company's
                                                                                                  Company            related parties or not
                    Chairman of the
 Ma Gang                                     Male                  44   Incumbent                        194.37      No
                    Board and President
 Su Bin             Director                 Male                  45   Incumbent                               0    Yes
 Kuang
                    Director                 Male                  44   Incumbent                               0    Yes
 Guangxiong
 Shen Ke            Director                 Male                  52   Incumbent                               0    Yes
 Shi Shuiping       Independent Director     Male                  48   Left office                             10   No
 Zhang Yu.          Independent Director     Male                  45   Incumbent                               10   No
 Li Ruidong.        Independent Director     Male                  46   Incumbent                               10   No
                    Chairman of the
 Jiao Wanjiang.                              Male                  42   Incumbent                         83.18      No
                    Board of Supervisors
 Liu Kan.           Supervisor               Male                  39   Incumbent                         70.11      No
 Lin Meiling.       Employee Supervisor      Female                38   Incumbent                         14.78      No
                    Vice President &
 Wang Qingbo.                                Male                  47   Incumbent                         97.90      No
                    CFO
                    Vice President and
 Jin Taotao                                  Male                  40   Incumbent                        126.09      No
                    Board Secretary
                    Vice President &
 Lu Anfeng                                   Male                  45   Left office                       33.61      No
                    CFO
 Total                         --                --           --               --                        650.04                --


VI. Performance of Duties by Directors during the Reporting Period

1. Information on the Board of Directors during the reporting period

              Meeting               Date of the meeting      Disclosure date                         Meeting resolution
                                                                                      The Announcement on the Resolutions of the 16th
                                                                                      Extraordinary Meeting of the Ninth Board of
                                                                                      Directors (Announcement No.: 2022-003) was
 The 16th extraordinary                                                               published in the Securities Daily, the Securities
 meeting of the Ninth Board of      January 14, 2022      January 15, 2022            Times, the China Securities Journal, the Shanghai
 Directors                                                                            Securities News and Cninfo
                                                                                      (www.cninfo.com.cn), which are the media
                                                                                      designated by the Company for information
                                                                                      disclosure.

                                                                   50
                                                                                  The Announcement on the Resolutions of the 17th
                                                                                  Extraordinary Meeting of the Ninth Board of
                                                                                  Directors (Announcement No.: 2022-009) was
 The 17th extraordinary                                                           published in the Securities Daily, the Securities
 meeting of the Ninth Board of   March 17, 2022.         March 18, 2022.          Times, the China Securities Journal, the Shanghai
 Directors                                                                        Securities News and Cninfo
                                                                                  (www.cninfo.com.cn), which are the media
                                                                                  designated by the Company for information
                                                                                  disclosure.
                                                                                  The Announcement on the Resolutions of the 18th
                                                                                  Meeting of the Ninth Board of Directors
                                                                                  (Announcement No.: 2022-018) was published in
 The 18th meeting of the Ninth                                                    the Securities Daily, the Securities Times, the
                                 April 29, 2022          April 30, 2022
 Board of Directors                                                               China Securities Journal, the Shanghai Securities
                                                                                  News and Cninfo (www.cninfo.com.cn), which
                                                                                  are media the designated by the Company for
                                                                                  information disclosure.
                                                                                  The Announcement on the Resolutions of the 19th
                                                                                  Meeting of the Ninth Board of Directors
                                                                                  (Announcement No.: 2022-062) was published in
 The 19th meeting of the Ninth                                                    the Securities Daily, the Securities Times, the
                                 August 24, 2022.        August 25, 2022.
 Board of Directors                                                               China Securities Journal, the Shanghai Securities
                                                                                  News and Cninfo (www.cninfo.com.cn), which
                                                                                  are the media designated by the Company for
                                                                                  information disclosure.
                                                                                  The Announcement on the Resolutions of the 20th
                                                                                  Extraordinary Meeting of the Ninth Board of
                                                                                  Directors (Announcement No.: 2022-073) was
 The 20th extraordinary                                                           published in the Securities Daily, the Securities
 meeting of the Ninth Board of   September 08, 2022      September 09, 2022       Times, the China Securities Journal, the Shanghai
 Directors                                                                        Securities News and Cninfo
                                                                                  (www.cninfo.com.cn), which are the media
                                                                                  designated by the Company for information
                                                                                  disclosure.
                                                                                  The Announcement on the Resolutions of the 21st
                                                                                  Meeting of the Ninth Board of Directors
                                                                                  (Announcement No.: 2022-080) was published in
 The 21st meeting of the Ninth                                                    the Securities Daily, the Securities Times, the
                                 October 26, 2022.       October 27, 2022.
 Board of Directors                                                               China Securities Journal, the Shanghai Securities
                                                                                  News and Cninfo (www.cninfo.com.cn), which
                                                                                  are the media designated by the Company for
                                                                                  information disclosure.
                                                                                  The Announcement on the Resolutions of the 22nd
                                                                                  Meeting of the Ninth Board of Directors
                                                                                  (Announcement No.: 2022-088) was published in
 The 22nd meeting of the Ninth                                                    the Securities Daily, the Securities Times, the
                                 December 27, 2022       December 28, 2022
 Board of Directors                                                               China Securities Journal, the Shanghai Securities
                                                                                  News and Cninfo (www.cninfo.com.cn), which
                                                                                  are the media designated by the Company for
                                                                                  information disclosure.


2. Attendance of directors at Board meetings and general meetings of shareholders

                         Attendance of directors at Board meetings and general meetings of shareholders

  Director's                      Number of          Number of        Number of       Number of      Having failed    Number of
                  Number of
    name                            Board              Board            Board           Board        to attend two     general
                   Board
                                   meetings           meetings         meetings        meetings       consecutive     meetings of

                                                                 51
                  meetings held     attended on          attended by         attended         absent with       Board             shareholders
                                        site                way of        through proxy        apologies      meetings in           attended
                                                          telecoms                                           person or not
 Ma Gang.                      7                 7                 0                      0              0   No                              2
 Su Bin.                       7                 4                 3                      0              0   No                              2
 Kuang
                               7                 4                 3                      0              0   No                              2
 Guangxiong.
 Shen Ke.                      7                 1                 6                      0              0   No                              2
 Zhang Yu.                     7                 1                 6                      0              0   No                              2
 Li Ruidong                    7                 1                 6                      0              0   No                              2
 Shi Shuiping                  7                 3                 4                      0              0   No                              2

Explanation of failure to attend two consecutive Board meetings

     NA


3. Objections raised to relevant matters of the Company

Whether any directors raised an objection to any relevant matter of the Company
Yes No
Directors did not raise any objection to the relevant matters of the Company during the reporting period.


4. Other information about the performance of duties by directors

Whether any recommendations from directors were adopted by the Company
Yes No
Explanation of adoption/rejection of directors' recommendations for the Company

     During the reporting period, the directors of the Company acted in a diligent and responsible manner, and actively attended
Board meetings and general meetings of shareholders in strict compliance with provisions and requirements in the Articles of
Association of the Company, the Rules of Procedure for the Board of Directors of the Company and relevant laws and regulations.
Based on the actual situation of the Company, the directors proposed relevant opinions on the Company's material governance and
operation decisions, reached a consensus through adequate communication and discussion, firmly supervised and promoted the
execution of resolutions of the Board of Directors, ensured the decision-making was scientific, timely and highly efficient and
protected the legitimate rights and interests of the Company and all shareholders.


VII. Information on Special Committees under the Board during the Reporting Period

                                                                                                                                      Specific
                                                                                                                       Other        information
                               Number                                                                 Important
                                                                                                                    information      on matters
 Name of the                     of        Date of the                                               opinions and
                 Members                                               Meeting contents                                  on             that
  committee                    meetings     meeting                                                  suggestions
                                                                                                                    performance      objections
                                held                                                                  proposed
                                                                                                                      of duties     were raised
                                                                                                                                      (if any)
                                                         1. Pre-approval of the Financial
                                                                                                    Agreed to
               Shi Shuiping,                             Statements in 2021 Annual Report; 2.
                                                                                                    pass the
               Kuang                                     2021 Annual Internal Control Self-
Audit                                     February                                                  relevant
               Guangxiong,            5                  Assessment Report;                                      --                N/A
Committee                                 14, 2022.                                                 proposals of
               Li Ruidong,                               3. 2022 Internal Audit Work Plan
                                                                                                    this
               Zhang Yu                                  Report; 4. Ex-ante Communication of
                                                                                                    meeting.
                                                         2021 Annual Report.


                                                                       52
                           1. 2021 Annual Report and its
                           summary; 2. 2021 Annual Final
                           Financial Accounting Report; 3. 2021
                           Profit Distribution Plan Proposal; 4.
                           2022 First Quarter Report; 5.
                           Assurance Report on the Placement
                           and Use of Proceeds in 2021; 6.
                           Proposal on the Delay of Part of the
                           Projects of Proceeds from the Public
                           Issuance of A-share Convertible
                           Corporate Bonds; 7. Proposal on
                           Changes to Accounting Policy of the
                           Company and Its Subsidiaries; 8.
                           Proposal on Provision for
                           Impairment of Goodwill in 2021; 9.
                           Proposal on the Increase in
                           Financing Factoring Limit for
                           Wholly-owned Subsidiaries and
                           Equity Participating Subsidiaries; 10.
                           Proposal on the 2022 Annual Plan
                           for Entrusted Wealth Management
                           with Self-owned Funds; 11. Proposal
                           on Estimated Routine Related Party
                           Transactions for 2022; 12. Proposal
                           on Guarantee Limits Provided by the
                                                                    Agreed to
Shi Shuiping,              Company to Its Subsidiaries; 13.
                                                                    pass the
Kuang                      Proposal on Related Party
                April 28,                                           relevant
Guangxiong,                Transactions for Temporary                            --   N/A
                2022                                                proposals of
Li Ruidong,                Borrowing Funds Provided by Infore
                                                                    this
Zhang Yu                   Group Co., Ltd. to the Company in
                                                                    meeting.
                           2022; 14. Proposal on the Provision
                           of Buyer's Credit Guarantees for
                           Customers; 15. Proposal on the
                           Conducting of Asset Pool Business;
                           16. Proposal on the Application for
                           Comprehensive Credit Lines from
                           Banks and the Authorization for the
                           Chairman to Sign Bank Credit
                           Contracts; 17. Proposal on the
                           Reappointment of Accounting Firms;
                           18. Revised Management Policy for
                           External Guarantees; 19. Revised
                           Management Policy for Related Party
                           Transactions; 20. Revised Work
                           Policy for Independent Directors; 21.
                           Revised Management Policy for
                           Proceeds; 22. Revised Management
                           Policy for Entrusted Wealth
                           Management; 23. Revised
                           Registration Policy for Insider
                           Information Persons; 24. Revised
                           Management Policy for Information
                           Disclosure; 25. Revised Policy for
                           Internal Reporting of Material
                           Information.
Shi Shuiping,              1. Summary of Internal Audit for the     Agreed to
                August 23,
Kuang                      First Half of 2022; 2. 2022 Interim      pass the     --   N/A
                2022
Guangxiong,                Report and its summary; 3. Special       relevant

                                       53
             Li Ruidong                    Report on the Placement and Use of       proposals of
                                           Proceeds in the First Half of 2022; 4.   this
                                           Proposal on Changes to Accounting        meeting.
                                           Policy of the Company and Its
                                           Subsidiaries; 5. Proposal on the
                                           Increase in Guarantee Limits; 6.
                                           Proposal on the Increase in the
                                           Limits of Buyer's Credit Guarantees
                                           Provided to Customers; 7. Proposal
                                           on the Conducting of Factoring for
                                           Accounts Receivable.
                                           1. Internal Control Work Report in       Agreed to
             Shi Shuiping,                 the Third Quarter of 2022; 2. Third      pass the
             Kuang             October 25, Quarter Report in 2022; and 3.           relevant
                                                                                                 --     N/A
             Guangxiong,       2022        Proposal on the Use of Part of Idle      proposals of
             Li Ruidong                    Proceeds to Temporarily Supplement       this
                                           Working Capital.                         meeting.
                                                                                    Agreed to
             Shi Shuiping,                                                          pass the
             Kuang             December     Proposal on Continuing Asset Pool       relevant
                                                                                                 --     N/A
             Guangxiong,       26, 2022     Business in 2023.                       proposals of
             Li Ruidong                                                             this
                                                                                    meeting.
                                           1. Reviewing the Performance of the
                                           Company's Directors and Executives
                                           in Fulfilling Their Duties in 2021 and
                                           Conducting Annual Performance
                                           Assessment Based on Assessment
                                           Criteria and Remuneration Policies
                                           and Plans; 2. Proposal on Second         Agreed to
             Li Ruidong,                   Employee Stock Ownership Plan            pass the
             Kuang             January 14, (Draft) and Its Summary; 3. Proposal     relevant
                                                                                                 --     N/A
             Guangxiong,       2022        on the Formulation of the                proposals of
             Zhang Yu                      Management Measures for the              this
                                           Second Employee Stock Ownership          meeting.
                                           Plan; 4. Proposal on the Request for
                                           Authorization from the General
                                           Meeting of Shareholders for the
Remunerati                                 Board of Directors to Handle Matters
on &                                       Related to the Company's Second
                             6
Appraisal                                  Employee Stock Ownership Plan.
Committee                                  1. Proposal on the Second Employee
                                           Stock Ownership Plan (Revised
                                           Draft) and Its Summary; 2. Proposal
                                           on the Management Measures for the
                                           Second Employee Stock Ownership          Agreed to
             Li Ruidong,                   Plan (Revised); 3. Proposal on the       pass the
             Kuang             March 16, Request for Authorization from the         relevant
                                                                                                 --     N/A
             Guangxiong,       2022        General Meeting of Shareholders for      proposals of
             Zhang Yu                      the Board of Directors to Handle         this
                                           Matters Related to the Company's         meeting.
                                           Second Employee Stock Ownership
                                           Plan; 4. Implementation of the
                                           Remuneration Plan for Directors,
                                           Supervisors, and Executives in 2021.
             Li Ruidong,       April 28,   1. Proposal on the Remuneration          Agreed to
                                                                                                   --   N/A
             Kuang             2022        Plan for Directors, Supervisors, and     pass the


                                                       54
             Guangxiong,                    Executives in 2022; 2. Proposal on      relevant
             Zhang Yu                       the Cancellation of Expired,            proposals of
                                            Unexercised Stock Options for the       this
                                            Third Exercise Period of the Third      meeting.
                                            Stock Option Incentive Scheme).
                                            1. Proposal on the Adjustment of the
                                                                                    Agreed to
                                            Exercise Price of the Third Stock
             Li Ruidong,                                                            pass the
                                            Option Incentive Scheme; 2. Proposal
             Kuang              August 23,                                          relevant
                                            on the Change of the Asset Manager                   --   N/A
             Guangxiong,        2022                                                proposals of
                                            and the Adjustment of the Transaction
             Zhang Yu                                                               this
                                            Price of the Second Employee Stock
                                                                                    meeting.
                                            Ownership Plan.
                                            1. Proposal on the Adjustment of the
                                            Recipients and Exercise Quantity and    Agreed to
             Li Ruidong,                    Canceling Certain Stock Options of      pass the
             Kuang              October 25, the Third Stock Option Incentive        relevant
                                                                                                 --   N/A
             Guangxiong,        2022        Scheme; 2. Proposal on Matters          proposals of
             Zhang Yu                       Related to the Exercise During the      this
                                            Third Exercise Period of the Third      meeting.
                                            Stock Option Incentive Scheme.
                                                                                    Agreed to
             Li Ruidong,                    Proposal on the Cancellation of         pass the
             Kuang              December    Expired, Unexercised Stock Options      relevant
                                                                                                 --   N/A
             Guangxiong,        26, 2022    for the Second Exercise Period of the   proposals of
             Zhang Yu                       Third Stock Option Incentive Scheme.    this
                                                                                    meeting.
                                                                                    Agreed to
                                                                                    pass the
             Zhang Yu, Ma                   Proposal on the Appointment of the
                                April 28,                                           relevant
             Gang, Shi                      Vice President and CFO of the                        --   N/A
                                2022                                                proposals of
             Shuiping                       Company
                                                                                    this
Nomination                                                                          meeting.
                            2
Committee                                                                           Agreed to
                                                                                    pass the
             Zhang Yu, Ma
                                December    Proposal on the Election of the New     relevant
             Gang, Shi                                                                           --   N/A
                                26, 2022    Board of Directors of the Company       proposals of
             Shuiping
                                                                                    this
                                                                                    meeting.
                                            1. Proposal on the Investment and
                                            Construction of Phase II Projects of
                                            the Company's Environmental
                                            Protection Technology Industrial
                                            Park in Shunde; 2. Proposal on the
                                            Spin-off of Subsidiaries to be Listed
                                            on the ChiNext Board in Compliance
                                                                                    Agreed to
                                            with Relevant Laws and Regulations;
                                                                                    pass the
                                            3. Proposal on the Plan for the Spin-
Strategy     Ma Gang, Su        April 28,                                           relevant
                            3               off of Zhejiang Shangfeng Special                    --   N/A
Committee    Bin, Shen Ke       2022                                                proposals of
                                            Blower Industrial Co., Ltd. to be
                                                                                    this
                                            Listed on the ChiNext Board; 4.
                                                                                    meeting.
                                            Proposal on the Revised Plan of
                                            Infore Environment Technology
                                            Group Co., Ltd. for the Spin-off of
                                            Zhejiang Shangfeng Special Blower
                                            Industrial Co., Ltd. to be Listed on
                                            the ChiNext Board; 5. Proposal on
                                            the Spin-off of Subsidiaries to be


                                                       55
                                                     Listed in Compliance with the Rules
                                                     for the Spin-off of Listed Companies
                                                     (Trial); 6. Proposal on the Spin-off of
                                                     Zhejiang Shangfeng Special Blower
                                                     Industrial Co., Ltd. to be Listed on
                                                     the ChiNext Board, Which Is
                                                     Conducive to Protecting the
                                                     Legitimate Rights and Interests of
                                                     Shareholders and Creditors; 7.
                                                     Proposal on the Company's
                                                     Maintenance of Independence and
                                                     Capabilities of Business Continuity;
                                                     8. Proposal on Zhejiang Shangfeng
                                                     Special Blower Industrial Co., Ltd.
                                                     Possessing Capabilities of
                                                     Standardized Operations; 9. Proposal
                                                     on the Explanation of the
                                                     Completeness and Compliance of the
                                                     Spin-off Procedures and the Validity
                                                     of the Submitted Legal Documents;
                                                     10. Proposal on the Analysis of the
                                                     Purpose, Commercial Rationality,
                                                     Necessity, and Feasibility of the Spin-
                                                     off; 11. Proposal on the Request for
                                                     the Authorization from the General
                                                     Meeting of Shareholders for the
                                                     Board of Directors and its Authorized
                                                     Personnel to Handle Matters Related
                                                     to the Spin-off and Listing; 12.
                                                     Revised Management Policy for
                                                     Authorization; 13. Revised
                                                     Management Policy for Investment;
                                                     14. Revised Management Policy for
                                                     Subsidiaries; 15. Revised
                                                     Management Policy for Securities
                                                     Investment.
                                                                                               Agreed to
                                                   Proposal on the Application for a
                                                                                               pass the
                                                   Change from Foreign-invested
              Ma Gang, Su               August 23,                                             relevant
                                                   Limited Liability Company to                             --       N/A
              Bin, Shen Ke              2022                                                   proposals of
                                                   Domestic-invested Limited Liability
                                                                                               this
                                                   Company.
                                                                                               meeting.
                                                                                               Agreed to
                                                     Proposal on the Suspension of             pass the
              Ma Gang, Su               September    Downward Revision of the                  relevant
                                                                                                            --       N/A
              Bin, Shen Ke              7, 2022      Conversion Price of Infore                proposals of
                                                     Convertible Bonds.                        this
                                                                                               meeting.


VIII. Work of the Board of Supervisors

Whether the Board of Supervisors identified any risk in the Company in its supervision during the reporting period
Yes No
The Board of Supervisors has no objection to supervisory matters during the reporting period.




                                                                56
IX. Information on Employees of the Company

1. Number, specialty and educational backgrounds of employees

 Number of in-service employees of the parent company at the
                                                                                                                                 232
 end of the reporting period
 Number of in-service employees of the major subsidiaries at
                                                                                                                              16,954
 the end of the reporting period
 Total number of in-service employees at the end of the
                                                                                                                              17,186
 reporting period
 Total number of paid employees during the reporting period                                                                   17,186
 Number of retirees to whom the parent company or its major
                                                                                                                                   0
 subsidiaries need to pay retirement pensions
                                                               Specialty
                        Specialty category                                         Number of people in the specialty
 Production personnel                                                                                                         12,864
 Sales personnel                                                                                                               1,168
 Technical personnel                                                                                                           1,691
 Finance personnel                                                                                                               177
 Administrative personnel                                                                                                      1,286
 Total                                                                                                                        17,186
                                                          Educational level
                     Types of educational level                                            Number of people
 Doctoral degree                                                                                                                  12
 Master's degree                                                                                                                 528
 Bachelor's degree                                                                                                             2,788
 College                                                                                                                       2,280
 Below college                                                                                                                11,578
 Total                                                                                                                        17,186


2. Remuneration policy

     The remuneration of employees is paid on time according to the remuneration policy of the Company. The fixed
remuneration of employees is determined by the Company according to the position value and individual performance, and the
floating salary of employees is determined according to the Company's individual performance assessment results. The Company
swings the weight of salary payment towards strategic professionals to ensure that the income level of core talent is competitive in
the market. The employee remuneration policy will be dynamically adjusted according to regional conditions, talent supply, staff
turnover, the extent of changes in the industry environment and the corporate payment capacity.


3. Training plan

     The Company pursues a talent strategy of high quality, high incentives, high performance, and high cultural identity. In 2022,
Infore Enviro reconstructed its talent development and learning map, using the employee capability charging station as the main
platform to offer a diverse and hierarchical talent development system. The Company launched seven new training programs and


                                                                 57
optimized two existing ones, with a focus on leadership, expertise, general skills, and new employees. Leadership programs
emphasized developing senior leadership and building a talent pool. Expertise programs enhanced job-specific skills through
routine training and marketing and R&D lectures. In terms of general skills, senior executives shared strategic consensus, industry
trends, or business priorities every month to improve employees' career skills. To better support new employees, both from
campus and social recruitment, a range of training programs were carried out, such as the Young Talent Training Camp, Dual
Mentor Plan, Graduate Training Program, and 90-day Transition for New Employees from Social Recruitment. Moreover, the
Company provided career paths for both managers and experts and offered opportunities for job rotation and internal recruitment.
These measures have encouraged the comprehensive development of various talents, helping employees grow with the Company.


4. Labor outsourcing

Applicable      Not applicable

 Total hours of labor outsourced                                                                                       59,917,325.06
 Total payment for labor outsourcing (RMB)                                                                            624,155,450.00


X. Company's Profit Distribution and Converting Capital Reserve into Share Capital

Formulation, execution or adjustments of profit distribution policy, especially cash dividend policy during the reporting period
Applicable      Not applicable

     According to the Articles of Association, while satisfying the conditions of cash dividend and ensuring the Company's normal
operation and long-term development, the Company shall in principle pay cash dividend on an annual basis. The Board of
Directors may propose interim cash dividends depending on the Company's profit status, cash flow status, development stage and
capital requirements. The Company shall maintain the continuity and stability of the profit distribution policy. When the
conditions for cash dividends are met, the cumulative profit distributed in cash in the recent three years shall not be less than 30%
of the average annual distributable profit realized in the recent three years.
     During the reporting period, the Company distributed profit in strict accordance with the provisions of the Articles of
Association and fully protected the legitimate rights and interests of small and medium investors. Independent directors have
voiced their opinions on the proposal for the annual profit distribution of the Company.
                                               Special remarks on the cash dividend policy
 Whether it complies with the Company's Articles of
 Association or resolutions of the general meetings of                   Yes
 shareholders:
 Whether dividend distribution standards and ratio are explicit
                                                                         Yes
 and clear:
 Whether the decision-making procedure and mechanism are
                                                                         Yes
 complete:
 Whether independent directors diligently performed their duties
                                                                         Yes
 and played their due role:
 Whether minority shareholders have the opportunity to fully
 express their opinions and demands and whether their legal              Yes
 rights and interests are adequately protected:
 In case of adjusting or changing the cash dividend policy,
 whether the conditions and procedures involved are in                   Yes
 compliance with applicable regulations and transparent:

The Company made profits during the reporting period and the parent company's profits distributable to shareholders was positive,
but no proposal for cash dividend distribution was put forward.


                                                                    58
Applicable      Not Applicable
2. Profit distribution and converting capital surplus into share capital for the reporting period
Applicable      Not applicable

 Bonus shares per 10 shares (share)                                                                                                   0
 Dividend per 10 shares (RMB) (tax inclusive)                                                                                       1.10
 Total shares as the basis for the proposal for profit distribution
                                                                                                                      3,166,940,177.00
 (share)
 Cash dividends (RMB) (tax inclusive)                                                                                     348,363,419.47
 Cash dividends in other forms (such as share repurchase)
                                                                                                                                    0.00
 (RMB)
 Total cash dividends (inclusive of those in other forms) (RMB)                                                           348,363,419.47
 Distributable profit (RMB)                                                                                               559,764,885.53
 Total cash dividends (inclusive of those in other forms) as a
                                                                                                                                 62.23%
 percentage of total distributed profit
                                                    Information on this cash dividend
 Others
                   Details about the proposal for profit distribution and converting capital reserve into share capital
 The profit distribution plan for 2022 is as follows: based on the total share capital (minus company shares in the Company's
 repurchase account) on the date of record for the 2022 profit distribution plan, a cash dividend of RMB 1.10 (tax inclusive) per 10
 shares will be distributed to the shareholders, with no bonus issue from either profit or capital reserves.
 At the end of 2021, the Company reported RMB 706,488,302.65 in profits available for distribution and RMB 394,435,926.25 in
 retained earnings after cash dividends. In 2022, the Company realized a net profit of RMB 183,698,843.64 and a surplus reserve
 of RMB 18,369,884.36. As a result, profits available for distribution at the end of 2022 reached RMB 559,764,885.53. When the
 profit distribution plan for 2022 is implemented, if the total share capital (minus shares in the Company's repurchase account) on
 the date of record for the plan remains unchanged, which is 3,166,940,177, a cash dividend of RMB 1.10 (tax inclusive) will be
 distributed for every 10 shares, totaling RMB 348,363,419.47. As a result, retained earnings after cash dividends will be RMB
 211,401,466.06. On the other hand, if the total share capital changes due to reasons such as the conversion of convertible bonds,
 share repurchases, stock incentive exercise, and the listing of new shares from refinancing before the plan is implemented, the
 Company will maintain the policy of distributing RMB 0.11 (tax inclusive) per share and adjust the total cash dividends
 accordingly.


XI. Company's Implementation of Stock Option Incentive Scheme and Employee Stock
Ownership Plan or Other Employee Incentive Measures

Applicable      Not applicable


1. Stock incentive

Overview of the Second Stock Option Incentive Scheme:


     1. On March 11, 2022, the third exercise period of the Company's Second Stock Option Incentive Scheme expired, with
4,100,000 outstanding stock options of 40 recipients. The Company would cancel the 4,100,000 stock options that were granted
and were not exercised during the third exercise period of the Second Stock Option Incentive Scheme, in accordance with the
applicable laws and regulations.
     2. On April 29, 2022, the Proposal on the Cancellation of Expired, Unexercised Stock Options for the Third Exercise Period
of the Second Stock Option Incentive Scheme was deliberated and approved at the 18th meeting of the Ninth Board of Directors and
the 17th meeting of the Ninth Board of Supervisors. According to the provisions of the Second Stock Option Incentive Scheme


                                                                    59
(Draft), the Board of Directors agreed to cancel the 4,100,000 expired stock options of 40 recipients unexercised during the third
exercise period. After the cancellation, the Second Stock Option Incentive Scheme will be fully implemented.
     For more information, please refer to the announcements published on April 30, 2022 on the media for information disclosure
designated by the Company, including Securities Daily, Securities Times, China Securities Journal, and Shanghai Securities News,
as well as Cninfo (http://www.cninfo.com.cn).


Overview of the Third Stock Option Incentive Scheme:


     1. On April 22, 2021, the Proposal on Matters Related to the Exercise in the Second Exercise Period of the Third Stock
Option Incentive Scheme was deliberated and approved at the 13th meeting of the Ninth Board of Directors and the 12th meeting of
the Ninth Board of Supervisors. A total of 17,814,000 stock options of the Third Stock Option Incentive Scheme were deemed fit
to be exercised at RMB 6.34 per share voluntarily in the second exercise period. Prior to the exercise of stock option, if the
Company has dividend distribution, capital reserve transferred to share capital, distribution of share bonus, share split, share
reduction or increase issue in stocks, etc., the exercise price of stock options will be adjusted accordingly.
     2. On August 19, 2021, the 14th meeting of the Ninth Board of Directors and the 13th meeting of the Ninth Board of
Supervisors held by the Company deliberated and approved the Proposal for Adjustment of the Option Exercise Prices of Phase II
and Third Stock Option Incentive Schemes. In view of the fact that the Company's 2020 annual equity distribution was completed
on July 8, 2021, according to relevant provisions on the adjustment of the stock option exercise price of the Third Stock Option
Incentive Scheme (Draft), if the Company has capital reserve transferred to share capital, distribution of share bonus, share split,
share reduction, dividend distribution or share allotments, etc. within the validity period of the stock options, the exercise price of
stock options will be adjusted accordingly. After the implementation of this equity distribution, the exercise price of the Third
Stock Option Incentive Scheme will be adjusted from RMB 6.34 per share to RMB 6.22 per share.
     3. On August 24, 2022, the 19th meeting of the Ninth Board of Directors and the 18th meeting of the Ninth Board of
Supervisors held by the Company deliberated and approved the Proposal for Adjustment of the Option Exercise Prices of the Third
Stock Option Incentive Schemes. In view of the fact that the Company's 2021 annual equity distribution was completed on July 20,
2022, according to relevant provisions on the adjustment of the stock option exercise price of the Third Stock Option Incentive
Scheme (Revised Draft), if the Company has capital reserve transferred to share capital, distribution of share bonus, share split,
share reduction, dividend distribution or share allotments, etc. within the validity period of the stock options, the exercise price of
stock options will be adjusted accordingly. After the implementation of this equity distribution, the exercise price of the Third
Stock Option Incentive Scheme will be adjusted from RMB 6.22 per share to RMB 6.12 per share.
     4. On October 26, 2022, the 21st Meeting of the Ninth Board of Directors and the 19th meeting of the Ninth Board of
Supervisors held by the Company deliberated and approved the Proposal for the Adjustment of the Eligible Participants and the
Number of Options to Be Exercised under the Third Stock Option Incentive Schemes and Cancellation of Partial Stock Options
and the Proposal for Matters Relating to Option Exercise during the Third Exercise Period of the Third Stock Option Incentive
Scheme of the Company.
     (1) The Company's 22 recipients resigned and were identified by the Company's Board of Directors as no longer suitable for
incentives. According to the Third Stock Option Incentive Scheme (Revised Draft), their 1,788,000 stock options in total were
canceled for the second and third exercise periods. After the adjustments, the number of recipients of the Third Stock Option
Incentive Scheme was adjusted from the original 231 to 209, and the number of locked stock options granted was adjusted from
23,752,000 to 21,964,000.
     (2) The exercise conditions for the third exercise period under the Third Stock Option Incentive Scheme have been met, and
the total number of exercisable options is 21,964,000, which are exercised by individual exercise at the price of RMB 6.12 per
share. Prior to the exercise of stock option, if the Company has dividend distribution, capital reserve transferred to share capital,
distribution of share bonus, share split, share reduction or increase issue in stocks, etc., the exercise price of stock options will be
adjusted accordingly.

                                                                    60
    5. On December 27, 2022, the Proposal on the Cancellation of Expired, Unexercised Stock Options for the Second Exercise
Period of the Third Stock Option Incentive Scheme was deliberated and approved at the 22nd meeting of the Ninth Board of
Directors and the 20th meeting of the Ninth Board of Supervisors. The 231 recipients exercised 16,409,380 stock options, with
1,404,620 unexercised during the second exercise period of the Third Stock Option Incentive Scheme. According to the Third
Stock Option Incentive Scheme (Revised Draft), the Board of Directors agreed to cancel the 1,404,620 expired stock options. After
the completion of the cancellation, the Company's Third Stock Option Incentive Scheme will continue to be implemented in
accordance with the requirements.
    6. As at December 31, 2022, when the second exercise period of the Third Stock Option Incentive Scheme expired,
16,409,380 stock options had been exercised; no stock options were exercised during the third exercise period of the Third Stock
Option Incentive Scheme because the market price was lower than the exercise price.
    For more information, please refer to announcements published on 23 April 2021, 21 August 2022 25 August 2022, 27
October 2022 and 28 December 2022 on the media for information disclosure designated by the Company and Cninfo
(http://www.cninfo.com.cn).

Equity incentives granted to directors and senior management members of the Company:
Applicable     Not Applicable
Appraisal mechanism and incentives for senior management members

    The Company has established a sound performance assessment and incentive system. The Board of Directors of the Company
established the Remuneration & Appraisal Committee as the administrative institution for the appointment and remuneration
appraisal of the senior management members of the Company, which shall be responsible for formulating remuneration standards
and schemes for the senior management members, reviewing their performance of duties and formulating scientific and reasonable
remuneration scheme and submitting to the board for review and discussion. The senior management members currently serving in
the Company shall be subject to comprehensive performance appraisal based on their positions, the current remuneration system of
the Company, the Company's actual operating performance, individual performance, performance of duties and achievement of
responsibilities and goals, and the result of such appraisal shall serve as the basis to determine their remunerations. The Company
pays the remunerations of senior management members based on schedule. During the reporting period, the senior management
members of the Company conscientiously performed their duties in strict accordance with the Company Law, the Articles of
Association and the relevant laws and regulations, actively implemented relevant resolutions of the general meetings of
Shareholders and Board meetings, and completed various tasks of the year in a quite good way.


2. Implementation of the employee stock ownership plan

Applicable     Not applicable
Information on all effective employee stock ownership plans during the reporting period
                                                                                           As a percentage of
                           Number of Total number                                            the total share        Source of funds to
  Scope of employees                                               Changes
                           employees of shares held                                        capital of the listed   implement the plan
                                                                                                company
Directors (excluding
independent directors),                                As at May 9, 2022, the First                            Employees'
supervisors, middle and                                Employee Stock Ownership                                legitimate
senior level                                           Plan was completed, with all                            remuneration, self-
management personnel,               136              0 36,211,560 shares (accounting                     0.00% raised funds and
key elite personnel                                    for 1.14% of the Company's                              other funds obtained
(technology, marketing,                                total share capital) sold through                       by legitimate and
production, etc.) of the                               centralized bidding.                                    compliant means.
Company.
Directors (excluding                134    64,789,616 As at October 12, 2022, stock                      2.04% Employees'


                                                                 61
independent directors),                                 purchases were completed in the                       legitimate
supervisors, senior level                               Second Employee Stock                                 remuneration, self-
management personnel,                                   Ownership Plan, with a total of                       raised funds, and
and key elite personnel                                 64,789,616 shares (accounting                         other funds obtained
(technology, marketing,                                 for 2.04% of the Company's                            by means permitted
production, etc.) of the                                total share capital) purchased.                       by laws and
Company.                                                All the shares purchased have                         regulations.
                                                        entered the lock-up period.
Shareholding of directors, supervisors and senior management members in the employee stock ownership plan during the
reporting period
                                                        Number of shares held     Number of shares held     As a percentage of the
           Name                     Position            at the beginning of the     at the end of the        total share capital of
                                                            reporting period        reporting period          the listed company
 Ma Gang                    Chairman & President                       128,795                 17,246,996                    0.54%
 Wang Qingbo                Vice President & CFO                              0                 4,159,493                    0.13%
                            Vice President &
 Jin Taotao                                                               6,104                 2,462,005                    0.08%
                            Board Secretary
                            Chairman of the Board
 Jiao Wanjiang                                                          18,908                  1,846,504                    0.06%
                            of Supervisors
 Liu Kan                    Supervisor                                        0                  155,495                     0.00%

Changes in the asset management institution during the reporting period
Applicable       Not applicable

     On August 24, 2022, the Proposal on the Change of the Asset Manager and the Adjustment of the Transaction Price of the
Second Employee Stock Ownership Plan was deliberated and approved at the 19th meeting of the Ninth Board of Directors. In
accordance with laws and regulations and based on the realities during the implementation of the plan, the Company decided to
replace the former asset manager, Guangfa Securities Asset Management (Guangdong) Co., Ltd., with the Management
Committee of the Second Employee Stock Ownership Plan to manage the plan.

Changes in equity arising from the disposal of shares by holders during the reporting period
Applicable       Not applicable

     During the reporting period, the First Employee Stock Ownership Plan was completed after the lock-up period expired, with
all 36,211,560 shares (1.14% of the Company's total share capital) sold through centralized bidding from November 11, 2021, to
May 9, 2022. The actual shareholding period was consistent with the duration disclosed in the First Employee Stock Ownership
Plan (Draft). The Management Committee carried out property liquidation and distribution according to the First Employee Stock
Ownership Plan (Draft) and the relevant provisions of the asset management plan. Therefore, the equity distribution of the First
Employee Stock Ownership Plan was completed.

Exercise of shareholders' rights during the reporting period


NA


Other relevant circumstances and explanations of the employee stock ownership plan during the reporting period
Applicable       Not applicable

     On August 24, 2022, the Proposal on the Change of the Asset Manager and the Adjustment of the Transaction Price of the
Second Employee Stock Ownership Plan was deliberated and approved at the 19th meeting of the Ninth Board of Directors. In
accordance with laws and regulations and based on the realities during the implementation of the plan, the Company decided to
appoint the Management Committee of the Second Employee Stock Ownership Plan to manage the plan. Moreover, the Board of




                                                                 62
Directors agreed to adjust the transfer price of the Second Employee Stock Ownership Plan to RMB 4.94 per share from RMB
5.04 per share after the Company's equity distribution for 2021 was completed on July 20, 2022.

Change of the members of the employee stock ownership plan management committee
Applicable      Not Applicable
The financial impact of the employee stock ownership plan on the listed company during the reporting period and relevant
accounting treatment
Applicable      Not applicable

     The Company's Second Employee stock ownership plan was completed in 2022 through the transfer of shares in the
Company's repurchase special security account and centralized bidding in the secondary market, and 46,410,852 shares were
transferred from the Company's repurchase special security account, resulting in the decrease of capital reserve of RMB
132,175,661.99.

Termination of the employee stock ownership plan during the reporting period
Applicable      Not applicable

     During the reporting period, the First Employee Stock Ownership Plan was fully implemented, with the completion of
property liquidation and distribution. The gains enjoyed by the participants of this employee stock ownership plan have been
distributed in proportion to their holdings of the underlying stocks after deducting taxes and fees.

Other statements:


NA


3. Other employee incentive measures

Applicable      Not Applicable


XII. Establishment and Implementation of the Internal Control System during the
Reporting Period

1. Establishment and implementation of internal control

(1) Internal control development
     Infore Enviro has established and improved various rules and regulations relating to corporate governance and internal
control in accordance with the requirements of the Company Law, the Securities Law, the Basic Standard for Enterprise Internal
Control, the Rules Governing the Listing of Shares on SZSE and other statutory documents. The operations of the General Meeting
of Shareholders, the Board of Directors and the Board of Supervisors in Infore Enviro comply with the provisions of the relevant
laws, regulations, the Articles of Association of the Company, the Rules of Procedure for the General Meeting of Shareholders, the
Rules of Procedure for the Board of Directors, and the Rules of Procedure for the Board of Supervisors. Corresponding internal
management systems with respect to such material issues as financial accounting, fundraising, external investment, external
guarantee, related party transactions and information disclosure have been established in Infore Enviro to ensure the legality and
compliance of day-to-day operations and decision-making procedures concerning material matters.
(2) Internal control implementation
     (a) Execution of information disclosure management policies
     As verified, the Company effectively complied with the Information Disclosure Management Policy in 2022, with good
performance in information disclosure, and was not subjected to punishment by the securities regulatory authorities for violation of
rules regarding information disclosure.


                                                                   63
     (b) Execution of financial internal control policies
     As verified, with respect to finance and accounting, the Company has established the relevant internal management system in
accordance with the requirements of the Accounting Standards for Enterprises, the Company Law and other relevant laws and
regulations, which can ensure the accuracy and reliability of the financial and accounting information and the safety and
effectiveness of the financial and accounting systems.
     (c) Execution of other internal control policies
     As verified, Infore Enviro complied with the provisions of the Articles of Association of the Company and the relevant rules
and regulations, performed necessary decision-making procedures, and implemented the internal control system quite well.


2. Details of material internal control deficiencies identified during the reporting period

Yes No


XIII. Management and Control of the Company over the Subsidiaries during the Report
Period

                                                                                     Problems in Resolution            Follow-up
                                                                       Integration                          Resolution
 Company name                       Integration plan                                     the     measures              resolution
                                                                        progress                             progress
                                                                                     integration   taken                  plan
                 Conducting unified control over human
                 resources, financial resources, performance
                 targets, and corporate culture to optimize
Zhejiang Yolsh   resource allocation and enhance business
Electric Drive   collaboration; assigning core management
                                                             Completed N/A                      N/A          N/A          N/A
Technology Co., personnel to serve as directors and senior
Ltd.             management of subsidiaries to improve
                 management efficiency and economic benefits
                 and help subsidiaries achieve operational
                 objectives.
                 Assigning directors and senior management
                 and overseeing critical matters related to
Lianjiang        operations, finance, audit, material
Greenlander New investments, legal affairs, and human        Completed N/A                      N/A          N/A          N/A
Energy Co., Ltd. resources to improve management efficiency
                 and economic benefits and help subsidiaries
                 achieve operational objectives.


XIV. Self-assessment Report or Audit Report on Internal Control

1. Internal control self-assessment report

 Date of full disclosure of the internal
                                               April 25, 2023
 control assessment report
 Index of full disclosure of the internal      For details, see the 2022 Internal Control Self-Assessment Report disclosed at
 control assessment report                     http://www.cninfo.com.cn
 The total assets of the organization
 included in the assessment as a
 percentage of the total assets in the                                                                                      100.00%
 Company's consolidated financial
 statements
 The revenue of the organization included                                                                                   100.00%

                                                                  64
in the assessment as a percentage of the
revenue in the Company's consolidated
financial statements
                                                Deficiency identification criteria
                 Category                               Financial reports                            Non-financial reports
                                                                                          Material deficiencies:
                                                                                          1. Violations of national laws and
                                                                                          regulations, e.g., environmental pollution,
                                                                                          serious damage to the local ecological
                                                                                          environment, failure to report or disclose
                                                                                          information as regulations;
                                           Material deficiencies:                         2. Loss of more than 30% of middle and
                                           1. Fraud committed by directors,               senior managers and senior technical
                                           supervisors and senior management              personnel without timely replenishment,
                                           members;                                       affecting the normal operations of the
                                           2. Enterprise's correction of a financial      Company;
                                           report published or reported;                  3. Failure to take timely and active
                                           3. Material misstatement during the            response measures against frequent
                                           period's financial report identified by        negative media reports, which involve a
                                           CPAs, which was not identified in the          wide range of subjects, leading to a
                                           course of the functioning of internal          material negative impact on the Company;
                                           controls;                                      4. Failure to address the findings of
                                           4. Ineffective supervision over internal       internal control assessments, particularly
                                           control by the Audit Committee and             material or significant deficiencies.
                                           internal audit agency of enterprise;           5. Absence of policy control or systematic
                                           5. Lack of post qualification or obvious       failure of critical businesses;
                                           incompetence of principal financial            6. Unreasonable decision-making
                                           personnel;                                     procedures of enterprise, e.g., decision-
Qualitative criteria                       6. Ineffective compliance supervision and making mistakes, resulting in unsuccessful
                                           violations of regulations that could           M&A;
                                           materially affect the reliability of financial 7. Losses suffered by the enterprise in
                                           reports;                                       consecutive years for reasons apart from
                                           7. The management's failure to correct         policy reasons, posing challenges to the
                                           significant deficiency after a reasonable      Company's ability to continue as a going
                                           period of being aware of the deficiency.       concern;
                                           Significant deficiencies:                      8. Lack of internal controls in subsidiaries,
                                           1. Anti-fraud procedures and controls;         leading to poor management.
                                           2. Internal control over unconventional or Significant deficiencies:
                                           unsystematic transactions;                     1. Fraud committed by middle-level
                                           3. Internal control over the selection and     managers;
                                           application of accounting policy with          2. Negative reports published by
                                           reference to the generally accepted            influential media in that year;
                                           accounting standards;                          3. Failure to remedy general deficiencies
                                           4. Internal control over the financial         identified in the prior year, without
                                           reporting procedures at the end of the         reasonable explanation;
                                           reporting period.                              4. Incompetency of some managers or
                                                                                          operators.
                                                                                          General deficiencies:
                                                                                          1. Fraud committed by general employees;
                                                                                          2. Failure to remedy general deficiencies
                                                                                          identified in the prior year, but with
                                                                                          reasonable explanation;
                                           Material deficiencies:                         Material deficiencies:
                                           1. The potentially misstated amount in the Direct property loss of RMB 10 million or
Quantitative criteria                      profit statement is greater than or equal to above or punishment by government
                                           1% of the revenue in the consolidated          authorities at the national level, officially
                                           financial statements of the Company for        disclosed with a negative effect on the

                                                                65
                                               the most recent fiscal year or 5% of the       Company's periodic reporting;
                                               total pre-tax profit;                          Significant deficiencies:
                                               2. The potentially misstated amount in the     Direct property loss of between RMB 5
                                               balance sheet is greater than or equal to      million (inclusive) and RMB 10 million or
                                               1% of the total assets in the consolidated     punishment by government authorities at
                                               financial statements of the Company for        the provincial level or higher, without a
                                               the most recent fiscal year.                   negative effect on the Company's periodic
                                               Significant deficiencies:                      reporting;
                                               1. The potentially misstated amount in the     General deficiencies:
                                               profit statement is greater than or equal to   Direct property loss of less than RMB 5
                                               0.5% of the Company's revenue or 3% of         million or punishment by government
                                               the total pre-tax profit in the consolidated   authorities below the provincial level,
                                               financial statements for the most recent       without a negative effect on the Company's
                                               fiscal year but less than 1% of the            periodic reporting.
                                               Company's revenue or 5% of the total pre-
                                               tax profit in the consolidated financial
                                               statements for the most recent fiscal year.
                                               2. The potentially misstated amount in the
                                               balance sheet is greater than or equal to
                                               0.5% of the total assets in the consolidated
                                               financial statements of the Company for
                                               the most recent fiscal year but less than 1%
                                               of the total assets in the consolidated
                                               financial statements for the most recent
                                               fiscal year.
                                               General deficiencies:
                                               1. The potentially misstated amount in the
                                               profit statement is less than 0.5% of the
                                               Company's revenue or 3% of the total pre-
                                               tax profit in the consolidated financial
                                               statements for the most recent fiscal year;
                                               2. The potentially misstated amount in the
                                               balance sheet is less than 0.5% of the
                                               consolidated total assets of the Company
                                               in the most recent financial year.
 Number of material deficiencies in
                                                                                                                                      0
 financial reports
 Number of material deficiencies in non-
                                                                                                                                      0
 financial reports
 Number of significant deficiencies in
                                                                                                                                      0
 financial reports
 Number of significant deficiencies in
                                                                                                                                      0
 non-financial reports


2. Audit report on internal control

Applicable      Not applicable

                                      The Opinion paragraph in the audit report on internal control
 Infore Enviro maintained, in all material respects, effective internal control over financial reporting as at December 31, 2022, in
 accordance with the Basic Standard for Enterprise Internal Control and other applicable rules.
 Disclosure status of the audit report on internal control              Disclosed
 Disclosure date of the full audit report on internal control           April 25, 2023
 Index to the full audit report on internal control                     PCCPAAR [2023] No. 4801


                                                                   66
 Opinion type of the audit report on internal control                  Standard unqualified opinion
 Whether any material deficiency in the non-financial reports          No

Whether the accounting firm has issued the audit report with modified opinion on the Company's internal control
Yes No
Whether the auditor's report on the Company's internal control is consistent with the self-assessment report issued by the
Company's Board of Directors
Yes No


XV. Rectification of Self-Detected Problems through the Special Campaign to Improve
Governance of Listed Companies

     According to the system of the CSRC for filling and reporting the special self-examination list for the governance of listed
companies, the Company conducted self-examination work during the special campaign based on the principle of seeking truth
from facts and in strict accordance with the Company Law, the Securities Law, Guidelines No. 1 of Shenzhen Stock Exchange for
Self-regulation of Listed Companies—Standardized Operation of Companies Listed on the Main Board and other relevant laws
and regulations as well as its internal rules and regulations, carefully sorted out the issues and filled in the forms. Through this
self-examination, the Company believes that its corporate governance complies with the requirements of the Company Law, the
Securities Law, Guidelines No. 1 of Shenzhen Stock Exchange for Self-regulation of Listed Companies—Standardized Operation
of Companies Listed on the Main Board and other laws and regulations, and that its corporate governance structure is relatively
sound, the operations are standardized, and there is no material problems or mistakes. The Company shall continue to enhance
management in the following areas:
     1. Further refining internal control policies
     The Company shall systemically sort out and improve its corporate governance and internal control in accordance with the
latest laws and regulations and combined with the requirements of the regulatory authorities and its self-examination result, further
perfect its internal control system and implement the corresponding examination and approval procedure on the revised and
improved relevant systems.
     2. Further leveraging the roles of special committees under the Board of Directors
     During the reporting period, the Company maintained special committees in strict accordance with the relevant laws and
regulations, and the special committees conducted on-site inspection and supervised and guided the Company's operation and
management and the execution of resolutions of the Board of Directors. In the future, the Company shall continue to create
conditions for members of the special committees to familiarize themselves with the business of the Company, facilitate them to
play their roles and provide advice and suggestions on the Company's development planning, operation and management, risk
control, selection and engagement of senior management members and back-up personnel, performance appraisal of senior
management members, internal control and internal audit, etc., to further improve the scientific decision-making capacity and risk
prevention capacity of the Company.
     3. Further improving the quality of information disclosure
     The Company shall optimize its policy system in strict accordance with the Administration of Information Disclosure Affairs
and in combination with its own situation. In daily information disclosure management, the Company shall conduct information
disclosure in a concise and easy-to-understand manner on the premise that the Company, its shareholders and other information
disclosure obligors shall ensure the authenticity, accuracy, completeness, timeliness and fairness of information disclosure. The
relevant personnel of information disclosure shall treat the information disclosure in a diligent manner, prevent mistakes and
ensure the quality of information disclosure and promote the level of information disclosure. During the reporting period, the
Company and relevant personnel completed the information disclosure work in strict accordance with the requirements of laws
and regulations.


                                                                  67
     4. Further increasing the training in laws and regulations
     By optimizing the internal training program and intensifying training, the Company helped its staff better understand laws,
regulations, and normative documents such as the Securities Law, the Rules Governing the Listing of Shares on SZSE, and the
Guidelines No. 1 of Shenzhen Stock Exchange for Self-regulation of Listed Companies—Standardized Operation of Companies
Listed on the Main Board. , and continuously strengthen relevant study, strictly observe relevant provisions, manage its operations
in a prudent manner and eradicate violations.




                                                                  68
                        Part V Environmental and Social Responsibility

 I. Material Environmental Issues

 Whether the listed company and its subsidiaries are major pollutant emitters announced by national environmental protection
 authorities
 Yes No
 Environmental protection policies and industry standards

       The Company strictly abides by the laws, regulations, and emission standards, such as the Environmental Protection Law of
 the People's Republic of China, Law of the People's Republic of China on Prevention and Control of Water Pollution, Integrated
 Wastewater Discharge Standard, and Law of the People's Republic of China on the Prevention and Control of Air Pollution. It has
 consistently improved its management policies and optimized treatment facilities and technologies to minimize the discharge of
 pollutants.

 Environmental protection administrative licensing

       The Company has been running all its key pollutant discharge projects according to laws and regulations for many years.
 During the construction period, environmental impact assessment was carried out for these projects in accordance with relevant
 laws and regulations such as the Environmental Protection Law of the People's Republic of China and Law of the People's
 Republic of China on Environmental Impact Assessment, and environmental impact assessment documents were approved by
 environmental authorities. Besides, the Company obtained approval from environmental authorities before pilot production,
 organized environmental protection acceptance inspection for the completed project during pilot production, and simultaneously
 designed, constructed and put into use the supporting environmental protection facilities and the main works.

 Industry discharge standards and discharge of pollutants in production and operating activities
                                                                                                           Pollutant
                   Types of main Names of main                                                                                   Total
                                                                Number of     Layout of        Discharge discharge     Total
Name of company or pollutants and pollutants and     Way of                                                                    approved    Excessive
                                                                discharge     discharge      concentration standards discharge
    subsidiary     characteristic characteristic    discharge                                                                  discharge   discharge
                                                                 outlets       outlets         /intensity implement volume
                     pollutants     pollutants                                                                                  volume
                                                                                                               ed
Foshan Shunde
Huaqingyuan Water
Environmental
Protection Co., Ltd.
(Phases I and II                                                                                          GB
                                                                            Beijiang River
sewage stations by                                 Continuous                                             18918-
                       Wastewater   COD                         1           trunk stream       10.5mg/L                423.83t 1606t/a     N/A
the gate), Foshan                                  discharge                                              2002,
                                                                            waterway
Shunde Yuanrun                                                                                            Class 1A
Water Environmental
Protection Co., Ltd.
(Phase III sewage
station by the gate)
Foshan Shunde
Huaqingyuan Water
Environmental
Protection Co., Ltd.                                                                                      GB
                                                                            Beijiang River
(Phases I and II                    Ammonia        Continuous                                             18918-
                       Wastewater                               1           trunk stream       0.52mg/L                20.99t   200.75t/a N/A
sewage stations by                  nitrogen       discharge                                              2002,
                                                                            waterway
the gate), Foshan                                                                                         Class 1A
Shunde Yuanrun
Water Environmental
Protection Co., Ltd.


                                                                       69
(Phase III sewage
station by the gate)
Foshan Shunde
Huaqingyuan Water
Environmental
Protection Co., Ltd.
(Phases I and II                                                                                   GB
                                                                       Beijiang River
sewage stations by                  Total            Continuous                                    18918-
                       Wastewater                                 1    trunk stream     0.25mg/L               10.09t 20.075t/a N/A
the gate), Foshan                   phosphorus       discharge                                     2002,
                                                                       waterway
Shunde Yuanrun                                                                                     Class 1A
Water Environmental
Protection Co., Ltd.
(Phase III sewage
station by the gate)
Foshan Shunde
Huaqingyuan Water
Environmental
Protection Co., Ltd.
(Phases I and II                                                                                   GB
                                                                       Beijiang River
sewage stations by                                   Continuous                                    18918-
                       Wastewater   Total nitrogen                1    trunk stream     6.15mg/L              248.24t 602.25t/a N/A
the gate), Foshan                                    discharge                                     2002,
                                                                       waterway
Shunde Yuanrun                                                                                     Class 1A
Water Environmental
Protection Co., Ltd.
(Phase III sewage
station by the gate)
Funan Green
Oriental
                                                     80m               North side of    4.199mg/N GB18485
Environmental          Waste gas    Smoke                         1                                           2.602t    14.6t/a    N/A
                                                     chimney           the main plant       m     -2014
Protection Energy
Co., Ltd.
Funan Green
Oriental
                                                     80m               North side of    41.814mg/ GB18485
Environmental          Waste gas    SO2                           1                                           26.548t   89.28t/a   N/A
                                                     chimney           the main plant     Nm      -2014
Protection Energy
Co., Ltd.
Funan Green
Oriental
                                                     80m               North side of    150.85mg/ GB18485
Environmental          Waste gas    NOx                           1                                           94.538t   96.72t/a   N/A
                                                     chimney           the main plant     Nm      -2014
Protection Energy
Co., Ltd.
Funan Green
Oriental
                                                     80m               North side of    38.343mg/ GB18485
Environmental          Waste gas    HCl                           1                                           23.831t       /      N/A
                                                     chimney           the main plant     Nm      -2014
Protection Energy
Co., Ltd.
Funan Green
Oriental
                                                     80m               North side of    14.684mg/ GB18485
Environmental          Waste gas    CO                            1                                           9.174t        /      N/A
                                                     chimney           the main plant     Nm      -2014
Protection Energy
Co., Ltd.
Funan Green
Oriental
                                                     80m               North side of    0.0146mg/ GB18485
Environmental          Waste gas    Pb                            1                        Nm                    /          /      N/A
                                                     chimney           the main plant             -2014
Protection Energy
Co., Ltd.
                                                                                        0.0000945
Funan Green            Waste gas    Cd               80m          1    North side of    mg/Nm     GB18485        /          /      N/A



                                                                      70
Oriental                                  chimney        the main plant                -2014
Environmental
Protection Energy
Co., Ltd.
Funan Green
Oriental
                                          80m            North side of    0.0048mg/N GB18485
Environmental       Waste gas   Hg                  1                         m                     /          /      N/A
                                          chimney        the main plant              -2014
Protection Energy
Co., Ltd.
Funan Green
Oriental
                                          80m            North side of     0.057ng-    GB18485
Environmental       Waste gas   Dioxins             1                      TEQ/m3                   /          /      N/A
                                          chimney        the main plant                -2014
Protection Energy
Co., Ltd.
Shouxian
                                          80m            West side of                  GB18485
Greenlander New     Waste gas   Smoke               1                     2.8mg/Nm                1.55t      12t/a    N/A
                                          chimney        the main plant                -2014
Energy Co., Ltd.
Shouxian
                                          80m            West side of                  GB18485
Greenlander New     Waste gas   SO2                 1                     29.0mg/Nm               23.7t     70.8t/a   N/A
                                          chimney        the main plant                -2014
Energy Co., Ltd.
Shouxian
                                          80m            West side of     184.3mg/N GB18485
Greenlander New     Waste gas   NOx                 1                                            138.27t     144t/a   N/A
                                          chimney        the main plant       m     -2014
Energy Co., Ltd.
Shouxian
                                          80m            West side of                  GB18485
Greenlander New     Waste gas   HCl                 1                     44.1mg/Nm               32.46t       /      N/A
                                          chimney        the main plant                -2014
Energy Co., Ltd.
Shouxian
                                          80m            West side of                  GB18485
Greenlander New     Waste gas   CO                  1                     3.4mg/Nm                4.03t        /      N/A
                                          chimney        the main plant                -2014
Energy Co., Ltd.
Shouxian
                                          80m            West side of                  GB18485
Greenlander New     Waste gas   Pb                  1                     0.029mg/m3                /          /      N/A
                                          chimney        the main plant                -2014
Energy Co., Ltd.
Shouxian
                                          80m            West side of     0.00096mg/ GB18485
Greenlander New     Waste gas   Cd                  1                         m3                    /          /      N/A
                                          chimney        the main plant              -2014
Energy Co., Ltd.
Shouxian
                                          80m            West side of     0.000043mg GB18485
Greenlander New     Waste gas   Hg                  1                        /Nm                    /          /      N/A
                                          chimney        the main plant              -2014
Energy Co., Ltd.
Shouxian
                                          80m            West side of     0.038ngTEQ GB18485
Greenlander New     Waste gas   Dioxins             1                         /m3                   /          /      N/A
                                          chimney        the main plant              -2014
Energy Co., Ltd.
Lianjiang
                                          80m            East side of                  GB18485
Greenlander New     Waste gas   Smoke               1                     2.8mg/Nm                0.885t   6.78t/a    N/A
                                          chimney        the main plant                -2014
Energy Co., Ltd.
Lianjiang
                                          80m            East side of                  GB18485
Greenlander New     Waste gas   SO2                 1                     29.0mg/Nm              14.689t   26.06t/a   N/A
                                          chimney        the main plant                -2014
Energy Co., Ltd.
Lianjiang
                                          80m            East side of     184.3mg/N GB18485
Greenlander New     Waste gas   NOx                 1                                            101.252t 104t/a      N/A
                                          chimney        the main plant       m     -2014
Energy Co., Ltd.
Lianjiang
                                          80m            East side of                  GB18485
Greenlander New     Waste gas   HCI                 1                     44.1mg/Nm              25.205t       /      N/A
                                          chimney        the main plant                -2014
Energy Co., Ltd.
Lianjiang
                                          80m            East side of                  GB18485
Greenlander New     Waste gas   CO                  1                     3.4mg/Nm               21.473t       /      N/A
                                          chimney        the main plant                -2014
Energy Co., Ltd.
Lianjiang           Waste gas   Pb        80m       1    East side of     0.029mg/m3 GB18485 0.885t            /      N/A



                                                        71
Greenlander New                          chimney        the main plant               -2014
Energy Co., Ltd.
Lianjiang
                                         80m            East side of     0.00096mg/ GB18485
Greenlander New    Waste gas   Cd                  1                         m3                  /          /    N/A
                                         chimney        the main plant              -2014
Energy Co., Ltd.
Lianjiang
                                         80m            East side of     0.000043mg GB18485
Greenlander New    Waste gas   Hg                  1                        /Nm                  /          /    N/A
                                         chimney        the main plant              -2014
Energy Co., Ltd.
Lianjiang
                                         80m            East side of     0.038ngTEQ GB18485
Greenlander New    Waste gas   Dioxins             1                         /m3                 /          /    N/A
                                         chimney        the main plant              -2014
Energy Co., Ltd.
Xiantao Green
Oriental
Environmental                            80m            West side of                 GB18485
                   Waste gas   Smoke               1                     0.22mg/m               0.2t        /    N/A
Protection Power                         chimney        the main plant               -2014
Co., Ltd. (1#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of                 GB18485
                   Waste gas   SO2                 1                     29.36mg/m             29.3t    58t/a    N/A
Protection Power                         chimney        the main plant               -2014
Co., Ltd. (1#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of                 GB18485
                   Waste gas   NOx                 1                     189.1mg/m             121.4t   148.85t/a N/A
Protection Power                         chimney        the main plant               -2014
Co., Ltd. (1#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of                 GB18485
                   Waste gas   HCl                 1                     22.5mg/m              15.4t        /    N/A
Protection Power                         chimney        the main plant               -2014
Co., Ltd. (1#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of                 GB18485
                   Waste gas   CO                  1                      5.6mg/m              3.56t        /    N/A
Protection Power                         chimney        the main plant               -2014
Co., Ltd. (1#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of     0.0029mg/m GB18485
                   Waste gas   Pb                  1                                             /          /    N/A
Protection Power                         chimney        the main plant              -2014
Co., Ltd. (1#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of     0.00013mg/ GB18485
                   Waste gas   Cd                  1                                             /          /    N/A
Protection Power                         chimney        the main plant       m      -2014
Co., Ltd. (1#
furnace)
Xiantao Green
Oriental                                 80m            West side of                 GB18485
                   Waste gas   Hg                  1                        ND                   /          /    N/A
Environmental                            chimney        the main plant               -2014
Protection Power



                                                       72
Co., Ltd. (1#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of     0.0012ngTE GB18485
                   Waste gas   Dioxins             1                                             /          /    N/A
Protection Power                         chimney        the main plant      Q/m3    -2014
Co., Ltd. (1#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of                 GB18485
                   Waste gas   Smoke               1                      1.4mg/m               0.6t        /    N/A
Protection Power                         chimney        the main plant               -2014
Co., Ltd. (2#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of                 GB18485
                   Waste gas   SO2                 1                     21.5mg/m              10.2t    58t/a    N/A
Protection Power                         chimney        the main plant               -2014
Co., Ltd. (2#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of                 GB18485
                   Waste gas   NOx                 1                     186.5mg/m             86.7t    148.85t/a N/A
Protection Power                         chimney        the main plant               -2014
Co., Ltd. (2#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of                 GB18485
                   Waste gas   HCI                 1                     22.1mg/m              10.33t       /    N/A
Protection Power                         chimney        the main plant               -2014
Co., Ltd. (2#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of                 GB18485
                   Waste gas   CO                  1                     0.87mg/m              1.99t        /    N/A
Protection Power                         chimney        the main plant               -2014
Co., Ltd. (2#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of     0.0032mg/m GB18485
                   Waste gas   Pb                  1                                             /          /    N/A
Protection Power                         chimney        the main plant              -2014
Co., Ltd. (2#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of     0.00014mg/ GB18485
                   Waste gas   Cd                  1                                             /          /    N/A
Protection Power                         chimney        the main plant       m      -2014
Co., Ltd. (2#
furnace)
Xiantao Green
Oriental
Environmental                            80m            West side of                 GB18485
                   Waste gas   Hg                  1                        ND                   /          /    N/A
Protection Power                         chimney        the main plant               -2014
Co., Ltd. (2#
furnace)
                                                                         0.002ngTEQ
Xiantao Green      Waste gas   Dioxins   80m       1    West side of                GB18485      /          /    N/A
                                                                             /m3


                                                       73
Oriental                                   chimney        the main plant                -2014
Environmental
Protection Power
Co., Ltd. (2#
furnace)
Poyang Greenlander
                                           80m            North side of      0.7655     GB18485
Renewable Energy     Waste gas   Smoke               1                                             0.517t     12t/a     N/A
                                           chimney        the main plant    mg/Nm3      -2014
Co., Ltd.
Poyang Greenlander                                        North side of
                                           80m                             40.0409mg/ GB18485
Renewable Energy     Waste gas   SO2                 1    the main plant                          26.413t     80t/a     N/A
                                           chimney                            Nm3     -2014
Co., Ltd.
Poyang Greenlander                                        North side of
                                           80m                             223.9976mg GB18485
Renewable Energy     Waste gas   NOx                 1    the main plant                          148.984t    250t/a    N/A
                                           chimney                            /Nm3    -2014
Co., Ltd.
Poyang Greenlander                                        North side of
                                           80m                             38.3231mg/ GB18485
Renewable Energy     Waste gas   HCI                 1    the main plant                          25.622t       /       N/A
                                           chimney                            Nm3     -2014
Co., Ltd.
Poyang Greenlander                                        North side of
                                           80m                             2.40mg/Nm GB18485
Renewable Energy     Waste gas   CO                  1    the main plant                           1.452t       /       N/A
                                           chimney                              3    -2014
Co., Ltd.
Poyang Greenlander                                        North side of
                                           80m                             0.01mg/Nm GB18485
Renewable Energy     Waste gas   Pb                  1    the main plant        3                    /          /       N/A
                                           chimney                                   -2014
Co., Ltd.
Poyang Greenlander                                        North side of
                                           80m                             0.00015mg/ GB18485
Renewable Energy     Waste gas   Cd                  1    the main plant      Nm3                    /          /       N/A
                                           chimney                                    -2014
Co., Ltd.
Poyang Greenlander                                        North side of
                                           80m                             0.000035mg GB18485
Renewable Energy     Waste gas   Hg                  1    the main plant      /Nm3                   /          /       N/A
                                           chimney                                    -2014
Co., Ltd.
Poyang Greenlander                                        North side of
                                           80m                                          GB18485
Renewable Energy     Waste gas   Dioxins             1    the main plant   0.063ng/m3                /          /       N/A
                                           chimney                                      -2014
Co., Ltd.
Biyang Fenghe New
                                           80m            South side of    1.658mg/N GB18485
Energy Power Co.,    Waste gas   Smoke               1                                             0.585t    10.95t/a   N/A
                                           chimney        the main plant      m3        -2014
Ltd.
Biyang Fenghe New
                                           80m            South side of    42.092mg/N GB18485
Energy Power Co.,    Waste gas   SO2                 1                                            29.186t    31.68t/a   N/A
                                           chimney        the main plant      m3        -2014
Ltd.
Biyang Fenghe New
                                           80m            South side of    193.750mg/ GB18485
Energy Power Co.,    Waste gas   NOx                 1                                            131.695t   159.72t/a N/A
                                           chimney        the main plant     Nm3        -2014
Ltd.
Biyang Fenghe New
                                           80m            South side of    30.925mg/N GB18485
Energy Power Co.,    Waste gas   HCl                 1                                            20.758t       /       N/A
                                           chimney        the main plant      m3        -2014
Ltd.
Biyang Fenghe New
                                           80m            South side of    5.392mg/N GB18485
Energy Power Co.,    Waste gas   CO                  1                                             2.161t       /       N/A
                                           chimney        the main plant      m3        -2014
Ltd.
Biyang Fenghe New
                                           80m            South side of    0.059mg/N GB18485
Energy Power Co.,    Waste gas   Pb                  1                                               /          /       N/A
                                           chimney        the main plant      m3        -2014
Ltd.
Biyang Fenghe New
                                           80m            South side of    0.0002mg/N GB18485
Energy Power Co.,    Waste gas   Cd                  1                                               /          /       N/A
                                           chimney        the main plant      m3        -2014
Ltd.
Biyang Fenghe New
                                           80m            South side of    0.004mg/N GB18485
Energy Power Co.,    Waste gas   Hg                  1                                               /          /       N/A
                                           chimney        the main plant      m3        -2014
Ltd.
Biyang Fenghe New    Waste gas   Dioxins   80m       1    South side of    0.0058ng/m GB18485        /          /       N/A



                                                         74
Energy Power Co.,                                  chimney          the main plant         3          -2014
Ltd.
Liling Zhaoyang                                                                                       Table 2 in
                                                                    Lujiang River
                                                   Intermittent                                          GB
Environmental           Wastewater        COD                       trunk stream       6.66mg/L                      7.944 t       /         N/A
                                                    discharge 1                                        16889-
                                                                      waterway
Protection Co., Ltd.                                                                                    2008

Liling Zhaoyang                                                                                       Table 2 in
                                     Ammonia                        Lujiang River
                                                   Intermittent                                          GB
Environmental           Wastewater                                  trunk stream       7.135mg/L                     1.986 t       /         N/A
                                     nitrogen       discharge 1                                        16889-
                                                                      waterway
Protection Co., Ltd.                                                                                    2008

                                                                    Discharge
                                                                    outlets of
                                                                    kitchen waste
                                                                    and sludge
                                                                                       Ammonia:                    Ammonia
                                                                    were set at the
Xiantao Yinghe                       Ammonia and                                      1.5 mg/Nm                    : 1.031 t
                                                                    end of the                        GB14554
Environmental          Waste gas     hydrogen      Centralized 2                       Hydrogen                    Hydrogen        /       N/A
                                                                    deodorization                     -93
Protection Co., Ltd.                 sulfide                                          sulfide: 0.06                 sulfide:
                                                                    system, and
                                                                                        mg/Nm                      0.04012 t
                                                                    waste gas was
                                                                    discharged
                                                                    through the
                                                                    chimney
                                                                    Discharge
                                                                    outlets of
                                                                    kitchen biogas
                                                                    combustion        Smoke: 20                     Smoke:     Smoke:
                                                                    were set at the    mg/Nm3.                     0.0496 t    0.241 t;
Xiantao Yinghe
                                     Smoke, SO2                     end of the          SO2: 50       GB13271        SO2:       SO2:
Environmental          Waste gas                   Centralized 1                                                                           N/A
                                     and NOX                        combustion          mg/Nm3        -2014        0.0718 t    0.467 t;
Protection Co., Ltd.
                                                                    system, and        NOX: 200                     NOX:        NOX:
                                                                    waste gas was       mg/Nm3                     0.7218 t     1.809 t
                                                                    discharged
                                                                    through the
                                                                    chimney
                                                                    Sewage
                                                                    discharge
                                                                    outlets were
                                                                    set at the end
                                                                    of the sewage
                                                                    treatment            COD:                       COD:       COD:4.2
Xiantao Yinghe                       COD and                        facility, and      500mg/L                     2.1376 t     627t;
                                                                                                      GB8978-
Environmental          Wastewater    ammonia       Centralized 1    sewage was         Ammonia                     Ammonia Ammonia N/A
                                                                                                      1996
Protection Co., Ltd.                 nitrogen                       discharged to     nitrogen: 45                 nitrogen:   nitrogen:
                                                                    the sewage           mg/L                      0.1131 t     0.427 t
                                                                    plant in the
                                                                    west of the
                                                                    city after
                                                                    centralized
                                                                    treatment
                                                                    Eastern                           Emission
                                                                    exhaust outlet                    Standard
                                                                    of waste gas                      of
                                                                    from paint                        Volatile
Changsha Zoomlion
                                                                    drying for        0.03905         Organic
Environmental          Waste gas     Benzene       Planned    2                                                    0.038624t       /       N/A
                                                                    whole-vehicle mg/m                Compoun
Industry Co., Ltd.
                                                                    coating                           ds and Ni
                                                                    (longitude                        for
                                                                    112° 50'                         Surface
                                                                    14.28",                           Coating


                                                                   75
                                                          latitude 28°                (Automob
                                                          13' 59.99") /                ile
                                                          Western                      Manufact
                                                          exhaust outlet               uring and
                                                          of waste gas                 Repair
                                                          from paint                   Industry)
                                                          drying for                   (DB43/13
                                                          whole-vehicle                56-2017);
                                                          coating                      1
                                                          (longitude                   mg/m
                                                          112° 50'
                                                          12.30",
                                                          latitude 28°
                                                          13' 59.99")
                                                          Eastern
                                                          exhaust outlet
                                                          of waste gas
                                                                                       Emission
                                                          from paint
                                                                                       Standard
                                                          drying for
                                                                                       of
                                                          whole-vehicle
                                                                                       Volatile
                                                          coating
                                                                                       Organic
                                                          (longitude
                                                                                       Compoun
                                                          112° 50'
                                                                                       ds and Ni
                                                          14.28",
                                                                                       for
                                                          latitude 28°
Changsha Zoomlion                                                                      Surface
                                                          13' 59.99") /    0.0514175
Environmental        Waste gas   Toluene   Planned   2                                 Coating     0.057679t       /   N/A
                                                          Western          mg/m
Industry Co., Ltd.                                                                     (Automob
                                                          exhaust outlet
                                                                                       ile
                                                          of waste gas
                                                                                       Manufact
                                                          from paint
                                                                                       uring and
                                                          drying for
                                                                                       Repair
                                                          whole-vehicle
                                                                                       Industry)
                                                          coating
                                                                                       (DB43/13
                                                          (longitude
                                                                                       56-2017);
                                                          112° 50'
                                                                                       3 mg/m
                                                          12.30",
                                                          latitude 28°
                                                          13' 59.99")
                                                          Eastern
                                                                                       Emission
                                                          exhaust outlet
                                                                                       Standard
                                                          of waste gas
                                                                                       of
                                                          from paint
                                                                                       Volatile
                                                          drying for
                                                                                       Organic
                                                          whole-vehicle
                                                                                       Compoun
                                                          coating
                                                                                       ds and Ni
                                                          (longitude
                                                                                       for
                                                          112° 50'
Changsha Zoomlion                                                                      Surface
                                                          14.28",          0.300981
Environmental        Waste gas   Xylene    Planned   2                                 Coating     0.27389t    /       N/A
                                                          latitude 28°    mg/m
Industry Co., Ltd.                                                                     (Automob
                                                          13' 59.99") /
                                                                                       ile
                                                          Western
                                                                                       Manufact
                                                          exhaust outlet
                                                                                       uring and
                                                          of waste gas
                                                                                       Repair
                                                          from paint
                                                                                       Industry)
                                                          drying for
                                                                                       (DB43/13
                                                          whole-vehicle
                                                                                       56-2017);
                                                          coating
                                                                                       17 mg/m
                                                          (longitude


                                                         76
                                                                       112° 50'
                                                                       12.30",
                                                                       latitude 28°
                                                                       13' 59.99")
                                                                       Eastern
                                                                       exhaust outlet
                                                                       of waste gas
                                                                                                    Emission
                                                                       from paint
                                                                                                    Standard
                                                                       drying for
                                                                                                    of
                                                                       whole-vehicle
                                                                                                    Volatile
                                                                       coating
                                                                                                    Organic
                                                                       (longitude
                                                                                                    Compoun
                                                                       112° 50'
                                                                                                    ds and Ni
                                                                       14.28",
                                                                                                    for
                                                                       latitude 28°
Changsha Zoomlion                                                                                   Surface
                                    Non-methane                        13' 59.99") /     1.774702
Environmental          Waste gas                   Planned        2                                 Coating     1.770279t 424.83t/a N/A
                                    hydrocarbons                       Western           mg/m
Industry Co., Ltd.                                                                                  (Automob
                                                                       exhaust outlet
                                                                                                    ile
                                                                       of waste gas
                                                                                                    Manufact
                                                                       from paint
                                                                                                    uring and
                                                                       drying for
                                                                                                    Repair
                                                                       whole-vehicle
                                                                                                    Industry)
                                                                       coating
                                                                                                    (DB43/13
                                                                       (longitude
                                                                                                    56-2017);
                                                                       112° 50'
                                                                                                    40 mg/m
                                                                       12.30",
                                                                       latitude 28°
                                                                       13' 59.99")
                                                                                                    Standard
                                                                                                    for
                                                                                                    Pollution
                                                                                                    Control
Chongqing                                                                                           on the
                                                                       Longitude
Tongliang Fenglan                                                                                   Landfill
                                    Ammonia        Intermittent        106° 2' 26.20"
Environmental          Wastewater                                 1                      8.86mg/L   Site of     0.9746t   /        N/A
                                    nitrogen       discharge           Latitude 29°
Protection                                                                                          Municipal
                                                                       56' 4.16"
Technology Co., Ltd.                                                                                Solid
                                                                                                    Waste
                                                                                                    (GB1688
                                                                                                    9-2008);
                                                                                                    25 mg/L
                                                                                                    Standard
                                                                                                    for
                                                                                                    Pollution
                                                                                                    Control
Chongqing                                                                                           on the
                                                                       Longitude
Tongliang Fenglan                                                                                   Landfill
                                                   Intermittent        106° 2' 26.20"
Environmental          Wastewater   COD                           1                      9.81mg/L   Site of     0.9989t   /        N/A
                                                   discharge           Latitude 29°
Protection                                                                                          Municipal
                                                                       56' 4.16"
Technology Co., Ltd.                                                                                Solid
                                                                                                    Waste
                                                                                                    (GB1688
                                                                                                    9-2008);
                                                                                                    100 mg/L



 Pollutant treatment



                                                                      77
     The Company values environmental protection and has established a management division to coordinate its safety and
environmental protection. Safety and environmental protection departments equipped with management personnel have also been
set up across key business segments. In recent years, the Company and its subsidiaries have consistently strengthened
environmental protection policies and strictly regulated the operating procedures and job responsibilities of environmental
protection facilities to ensure proper operation.

Environmental self-monitoring plan

     The Company developed the 2022 Environmental Self-Monitoring Plan for each of its key pollutant-discharging projects in
accordance with environmental impact assessment requirements and relevant laws and regulations, and filed them with local
ecological and environmental protection authorities. It also engaged a professional third-party inspection institution to carry out
regular environmental monitoring of the pollutants discharged by the projects.

Contingency plan for environmental emergencies

     The Company engaged a professional third-party organization to develop a contingency plan for environmental emergencies
for each of its key pollutant discharge projects, which was approved and filed for record. In 2022, it carried out regular training
and drills among its employees in different projects according to the requirements and contents of the contingency plans to enable
them to timely and accurately deal with environmental pollution emergencies.

Investment in environmental governance and protection payment of environmental protection taxes

     The Company's commitment to green development and environmental protection underpins its sustained efforts in clean
production, energy conservation, consumption reduction, emission reduction, and efficiency improvement. By incorporating its
environmental protection philosophy into daily management, the Company strives to become a resource-conserving and
environmentally friendly business. In 2022, it invested RMB 20,830,700 in environmental protection and paid RMB 50,100 in
environmental protection taxes in accordance with laws and regulations.

Measures adopted during the reporting period to reduce carbon emissions and their effects
Applicable      Not applicable

     The Company made rational use of waste resources and effectively reduced environmental carbon emissions through
environmental protection industrial modes such as domestic waste incineration for power generation, kitchen waste resource
utilization and sewage treatment. In terms of the project of domestic waste incineration for power generation, the greenhouse gas
emission reduction is about 0.78-1.32kg per kilowatt-hour, and 0.36TCO2e per ton of waste, with sound emission reduction effect.

Administrative penalties for environmental issues during the reporting period
                                                                                 Impact on the production
  Name of company
                            Reason             Violation          Penalty        and operation of the listed   Rectification measures
    or subsidiary
                                                                                         company
                                                                                                    1. Carried out legal and
                                                                                                    regulatory training and
                                                                                                    exams regarding garbage
                                                                                                    transportation across
                                     Article 49(2) of the
                                                          RMB 50,000 on                             project companies;
                                     Law of the People's
                                                          Huaibei                                   2. Transported garbage to
Huaibei Zhongfeng                    Republic of China                  There is no material
                                                          Zhongfeng                                 qualified landfills in strict
Urban                  Non-compliant on Prevention and                  impact on the production
                                                          Urban                                     accordance with laws and
Environmental          operation     Control of                         and operation of the listed
                                                          Environmental                             regulations; kept
Service Co., Ltd.                    Environmental                      company.
                                                          Service Co.,                              transportation records
                                     Pollution by Solid
                                                          Ltd.                                      with the signatures of
                                     Waste
                                                                                                    each person in charge of
                                                                                                    garbage transportation;
                                                                                                    carried out inspections
                                                                                                    from time to time.


                                                                 78
                                                                                                           1. Released and organized
                                                                                                           the implementation of the
                                                                                                           Management Policy for
                                                                                                           Environmental Pollution
                                                                                                           Control of Sanitation
                                                                                                           Projects to specify the
Fengxian Zhongying               Violation of Article
                                                                                                           management standards
Urban                            20 of Urban                                   There is no material
                                                      Administrative                                       for environmental
Environmental      Non-compliant Drainage and                                  impact on the production
                                                      penalties of                                         protection of sanitation
Sanitation         operation     Wastewater                                    and operation of the listed
                                                      RMB 100,000                                          projects;
Management Co.,                  Treatment                                     company.
                                                                                                           2. Checked the
Ltd.                             Regulations
                                                                                                           implementation of the
                                                                                                           aforesaid policy across
                                                                                                           projects during the safety,
                                                                                                           health, and environmental
                                                                                                           assessment in the second
                                                                                                           quarter.
Zhaoqing Duanzhou
District Zhongying               Violation of Article
                                                             RMB 6,000 and
Urban                            21(3) of the                                  There is no material          Provided pre-employment
                                                             correction
Environmental      Non-compliant Measures for the                              impact on the production      training and strictly
                                                             before
Management Co.,    operation     Administration of                             and operation of the listed   followed work
                                                             September 8,
Ltd. (the actual                 Municipal Domestic                            company.                      requirements
                                                             2022
punished subjects                Garbage
were individuals)
                                                                                                           Improved diversion of
                                     Violation of Article
                                                                                                           rainwater and sewage,
                                     28(4) of the                              There is no material
Liling Zhaoyang                                                                                            inspected and repaired
                       Non-compliant Measures for the                          impact on the production
Environmental                                             RMB 50,000                                       pile surface, conducted
                       operation     Administration of                         and operation of the listed
Protection Co., Ltd.                                                                                       temporary and daily
                                     Municipal Domestic                        company.
                                                                                                           cover to reduce rainwater
                                     Garbage
                                                                                                           infiltration.
                                     Violation of Item 2
                                     of Article 28 of the                      There is no material          Strengthened the
Liling Zhaoyang
                       Non-compliant Measures for the                          impact on the production      inspection of routine
Environmental                                                RMB 99,000
                       operation     Administration of                         and operation of the listed   equipment to prevent
Protection Co., Ltd.
                                     Municipal Domestic                        company.                      leakage.
                                     Garbage
                                     Violation of Article
                                     42(4) of
                                                                                                             1. Project companies
                                     Environmental
                                                                               There is no material          rectified their ways of
Liling Zhaoyang                      Protection Law and      Administrative
                       Non-compliant                                           impact on the production      treatment;
Environmental                        Articles 10 and 39      penalties of
                       operation                                               and operation of the listed   2. The Company
Protection Co., Ltd.                 of Law on               RMB 750,000
                                                                               company.                      conducted inspections
                                     Prevention and
                                                                                                             from time to time.
                                     Control of Water
                                     Pollution
Other environmental information to be disclosed


The Company disclosed the environmental information of each of its key pollutant discharge projects on the government's
environmental information disclosure platform on a regular basis according to the requirements of local environmental authorities.


Other information related to environmental protection


NA



                                                                 79
II. Corporate Social Responsibility

For details, please refer to the 2022 Corporate Social Responsibility Report disclosed at Cninfo (www.cninfo.com.cn).


III. Performance in Consolidating Achievements of Poverty Alleviation and Promoting
Rural Revitalization

    The Company donated RMB 437,300 to poverty alleviation endeavors during the reporting period.




                                                                80
                                           Part VI Significant Events

I. Performance of undertakings

1. Undertakings of the Company's de facto controller, shareholders, related parties, and acquirer, as well
as the Company and other commitment makers fulfilled during the reporting period or ongoing at the
period-end

Applicable      Not applicable

                                                                                                                  Term of         Fulfillment of
  Undertaking          Party                Type                           Content                    Date
                                                                                                                undertakings      undertakings
                                    Undertaking on not      I have no plan to relinquish the                                   It is being properly
                  De facto
                                    to relinquish the       control of the listed company within    January                    fulfilled without
                  controller: He                                                                               60 months
                                    control of the listed   60 months from the date of              3, 2019                    breach of such
                  Jianfeng
                                    company                 completion of this transaction.                                    undertaking.
                                                            1. The shares in the listed company
                                                            acquired from this transaction shall
                                                            not be transferred within 36 months
                                                            from the closing date of issuance. 2.
                                                            Within 6 months from the completion
                                                            of this transaction, in case the closing
                                                                                                                               The undertaking has
                  Ningbo Infore                             price of the listed company's stock is
                                                                                                                               been fulfilled and
                  Asset             Undertaking on          lower than its issue price for 20        January
                                                                                                               42 months       strictly observed by
                  Management        trading restrictions    consecutive trading days, or the         3, 2019
                                                                                                                               the undertaking
                  Co., Ltd.                                 closing price by the end of the sixth
                                                                                                                               parties.
                                                            month from the completion of this
                                                            transaction is lower than the issue
                                                            price, the lock-up period of Ningbo
                                                            Infore holding shares in the listed
                                                            company shall automatically extend
Undertakings                                                for at least 6 months.
made in asset     Counterparties                                                                                               The undertaking has
                                                            The shares in the listed company
restructuring     Ningbo Yingtai,                                                                                              been fulfilled and
                                  Undertaking on            acquired from this transaction shall    January
                  Ningbo                                                                                       36 months       strictly observed by
                                  trading restrictions      not be transferred within 36 months     3, 2019
                  Zhongfeng,                                                                                                   the undertaking
                                                            from the closing date of issuance.
                  Ningbo Liantai                                                                                               parties.
                                    Undertaking to
                  De facto          avoid horizontal
                  controllers He    competition,            Undertaking to avoid horizontal                                    It is being properly
                  Jianfeng,         regulate and reduce     competition, regulate and reduce        August                     fulfilled without
                                                                                                             Indefinitely
                  Ningbo Infore,    related party           related party transactions, and         15, 2018                   breach of such
                  and Infore        transactions, and       independence of listed companies                                   undertaking.
                  Group             independence of
                                    listed companies
                  Ningbo Infore,
                  Hongchuang        Undertaking to
                  Investment,       avoid horizontal                                                                           It is being properly
                                                            Undertaking to avoid horizontal
                  Zoomlion,         competition, and                                             August                        fulfilled without
                                                            competition, and regulate and reduce          Indefinitely
                  Ningbo Yingtai,   regulate and reduce                                          15, 2018                      breach of such
                                                            related party transactions
                  Ningbo            related party                                                                              undertaking.
                  Zhongfeng,        transactions
                  Ningbo Liantai



                                                                        81
                                                                                                                           Not fulfilled
                                                                                                                           properly. The
                                                                                                                           audited net profit
                                                                                                                           (net profit is the
                                                                                                                           lower of before or
                                                                                                                           after deducting non-
                                                                                                                           recurring profit or
                                                                                                                           loss) for the period
                                                          The accumulative total net profit
                                                                                                                           from 2016 to 2019
                                                          recorded by Lianjiang Greenlander
                                                                                                                           is RMB 2,156,500,
                                                          New Energy Co., Ltd, Xiantao Green
                                                                                                                           RMB -24,424,500,
                                                          Oriental Environmental Protection
                     Greenlander                                                                                           RMB -19,192,800,
                                                          Power Co., Ltd., Funan Green
                     Investment                                                                                            and RMB -625,700
                                      Undertaking related Oriental Environmental Energy Co., October
                     Holding Co.,                                                                    48 months             respectively; and the
                                      to performance      Ltd.and Shouxian Greenlander New 14, 2015
                     Ltd. and Zheng                                                                                        accumulated net
                                                          Energy Co., Ltd. from 2016 to 2019
                     Weixian                                                                                               profit is RMB -
                                                          shall not be less than RMB 120
                                                                                                                           42,086,600 which is
                                                          million (net profit is subject to the
                                                                                                                           RMB 162,086,600
                                                          lower after deducting non-recurring
                                                                                                                           less than the
                                                          profit or loss).
                                                                                                                           performance
                                                                                                                           commitment,
                                                                                                                           indicating a failure
                                                                                                                           to achieve the
                                                                                                                           commitment in
                                                                                                                           respect of the net
                                                                                                                           profit for 2016 -
                                                                                                                           2019.
                                                           1. From 2016 to 2019, Green Oriental
                                                           Company signed a new BOT
                                                           Agreement on Waste Incineration
                                                                                                                           Not fulfilled
                                                           Power Generation (subject to the
                                                                                                                           properly. The newly
                                                           signing of franchise agreement), with
                                                                                                                           signed projects by
                                                           an agreed daily disposal capacity of
                                                                                                                           Green Oriental
                                                           no less than 6,500 tons (the daily
                     Greenlander                                                                                           Company from
                                                           disposal capacity of a single project
                     Investment                                                                                            2016 to 2019 totaled
                                                           shall be no less than 500 tons, and at October
                     Holding Co.,     Project undertakings                                                 48 months       1,400 tons, 5,100
                                                           least one shall be more than 2000      14, 2015
                     Ltd. and Zheng                                                                                        tons less than the
                                                           tons). 2. Jiujiang Company must start
                     Weixian                                                                                               project undertaking.
                                                           construction and obtain approval
                                                                                                                           The project in
                                                           before 31 December 2020. If it fails
                                                                                                                           Jiujian has not
                                                           to start construction or the
                                                                                                                           commenced
                                                           construction is recovered by the
                                                                                                                           construction.
                                                           government, it shall compensate the
                                                           listed company at a consideration of
                                                           no less than RMB5 million.
Whether the
undertakings were No
fulfilled on time
                      The main cause is that the project construction progress was slower than expected.
If the undertaking
                      On July 18, 2022, the High People's Court of Guangdong Province ruled that Greenlander Investment Holding Co., Ltd. and
is overdue, the
                      Zheng Weixian shall pay the Company RMB 113,460,600 for the unfulfilled performance commitment and supported the
specific reasons
                      Company to enjoy the priority of compensation within RMB 200 million for the 30% of equity interest in Shenzhen Greenland
for not fulfilling it
                      Environmental Protection Co., Ltd. held by the Greenlander Investment Holding Co., Ltd. As Greenlander Investment Holding
and the next work
                      Co., Ltd. and Zheng Weixian have not carried out the effective judgment, Infore Environment Technology Group Co., Ltd. has
plan shall be
                      applied to the Intermediate People's Court of Foshan City, Guangdong Province for compulsory enforcement, and received the
elaborated
                      notice of acceptance of the enforcement case numbered (2022) Yue 06 Zhi 1500 on August 4, 2022.




                                                                      82
2. Where any earnings forecast was made for any of the Company's assets or projects and the reporting
period is still within the forecast period, the Company shall explain whether the performance of the asset
or project reaches the earnings forecast and why

Applicable       Not Applicable


II. Occupation of the Company's Capital by the Controlling Shareholder or Other Related
Parties for Non-Operating Purposes

Applicable       Not Applicable
No such cases during the reporting period.


III. Illegal Provision of Guarantees for External Parties

Applicable       Not Applicable
No such cases during the reporting period.


IV. Explanations Given by the Board of Directors Regarding the "Modified Audit Opinion"
for the Latest Period

Applicable       Not Applicable


V. Explanation of the Board of Directors, the Board of Supervisors, and Independent
Directors (If Any) Regarding the "Modified Audit Opinion" for the Reporting Period

Applicable       Not Applicable


VI. Reason for Changes in Accounting Policy, Accounting Estimates or Corrections of
Material Accounting Errors as Compared to the Financial Report for the Prior Year

Applicable       Not Applicable

     1. Starting from January 1, 2022, the Company has adopted the regulations about accounting for sales of products or by-
products produced by fixed assets before intended use or during the R&D process, as stipulated in the Interpretation of China
Accounting Standards for Business Enterprises No. 15 issued by the MOF, and applied these regulations retrospectively to the
sales of trial operation that occurred between the beginning of the earliest period presented in the financial statements and January
1, 2022. Details are set out below:
   Financial statement items                 Dec. 31, 2021/2021 (before                                   Dec. 31, 2021/ 2021 (after
                                                                               Amounts affected
significantly affected                        retrospective adjustment)                                   retrospective adjustment)
Items of balance sheet as at
December 31, 2021
Intangible assets                                       5,319,721,844.23              30,874,024.17                  5,350,595,868.40
Minority interests                                        350,671,301.45               6,549,735.93                    357,221,037.38
Retained profits                                        3,850,610,683.45              24,324,288.24                  3,874,934,971.69
Items of income statement of 2021
Operating revenue                                      11,813,537,444.48              52,754,166.97                 11,866,291,611.45
Operating cost                                          9,210,318,426.37              21,880,142.80                  9,232,198,569.17



                                                                  83
     2. Starting from January 1, 2022, the Company has adopted the regulations about judgment on onerous contracts in the
Interpretation of China Accounting Standards for Business Enterprises No. 15 issued by the MOF, 2022. This change in
accounting policy has no impact on the Company's financial statements.
     3. Starting from November 30, 2022, the Company has adopted the regulations about accounting for income tax
consequences of dividends on a financial instrument classified by the issuer as an equity instrument in the Interpretation of China
Accounting Standards for Business Enterprises No. 16 issued by the MOF. This change in accounting policy has no effect on the
Company's financial statements.
     4. Starting from November 30, 2022, the Company has adopted the regulations about accounting for modifications of share-
based payment transactions from cash-settled to equity-settled in the Interpretation of China Accounting Standards for Business
Enterprises No. 16 issued by the MOF. This change in accounting policy has no effect on the Company's financial statements.


VII. Reason for Changes in Scope of the Consolidated Financial Statements as Compared to
the Financial Report for the Prior Year

Applicable     Not applicable


For details of the changes in the scope of the consolidated financial statements during the reporting period, please refer to Note 8
"Changes in the Scope of Consolidation" in Part X Financial Report.


VIII. Engagement and Disengagement of Accounting Firm

Incumbent accounting firm
                                                                      Pan-China Certified Public Accountants LLP (Special General
 Name of the domestic accounting firm
                                                                      Partnership)
 The Company's payment to the domestic accounting firm (in
                                                                      310
 RMB 10,000)
 Consecutive years of the domestic audit service provided by the
                                                                      21
 accounting firm
 Names of the domestic certified public accountants from the
                                                                      Bian Shanshan, and Wei Xiaohui
 accounting firm
 Consecutive years of audit service provided by domestic
                                                                      4 years and 1 year, respectively
 certified public accountants from the accounting firm

Whether the accounting firm was changed during the period
Yes No
Engagement of any accounting firm for internal control audit, financial advisor, or sponsor
Applicable     Not applicable


During the year, Pan-China Certified Public Accountants LLP (Special General Partnership) was appointed as the accounting firm
for the Company's internal control audit, and Huaxing Securities Co., Ltd. was appointed as the Company's sponsor.


IX. Possibility of Delisting after the Disclosure of This Report

Applicable     Not Applicable




                                                                 84
X. Bankruptcy and Reorganization

Applicable           Not Applicable
No such cases during the reporting period.


XI. Material Litigation and Arbitration

Applicable           Not Applicable
No such cases during the reporting period.

     During the reporting period, other lawsuits that did not meet the disclosure criteria for material litigation primarily included
purchase and sales contract disputes, with a total amount of approximately RMB 375 million, which are not expected to incur any
provision of a large amount.


XII. Punishments and Rectifications

Applicable           Not Applicable
No such cases during the reporting period.


XIII. Credit Quality of the Company as well as Its Controlling Shareholder and De Facto
Controller

Applicable           Not Applicable


During the reporting period, the Company as well as its controlling shareholder and de facto controller were of good credit quality,
with no such cases as non-fulfillment of effective court judgments or outstanding debts of large amounts due and unpaid.


XIV. Material Related Party Transactions

1. Related party transactions in relation to day-to-day operations

Applicable           Not applicable
                                                     Pricing                                          Approved                              Available
                             Type of Contents of                           Transaction     As a
              Related                              principle of                                      transaction Over the                    market
  Related                     related     related               Transaction amount      percentage                           Method of                 Disclosure   Disclosure
                party                                 related                                           limit    approved                   price for
   party                       party       party                   price   (RMB10,00 of similar                              settlement                   date      document
            relationship                               party                                        (RMB10,00      limit                     similar
                           transaction transaction                             0)      transactions
                                                   transaction                                            0)                              transactions

            Sharehol
            der
            holding
Zoomlion                   Goods or Goods or                                                                                As per                                  www.cni
            more                                   Market                                                                                             April 30,
 Heavy                     financial   financial               --           10,782.4                   22,061 No            contractual --                          nfo.com.c
            than 5%                                price                                                                                              2022
 Industry                  services    services                                                                             terms                                   n
            of the
            Company
            's shares
Total                                                  --           --      10,782.4        --        22,061       --            --           --           --           --

Details of any large-amount sales return           N/A

Give the actual fulfillment situation              Before the Company's routine related party transactions in 2022, subsidiaries comprehensively assessed
during the reporting period (if any)               and estimated their related party transactions. However, due to changes in the market and customer
where an estimate by type had been                 demand, there were differences between the Company's related party transactions and the actual situation.
made for the total amounts of daily                This was regular business activity and had minimal impact on day-to-day operations and performance.


                                                                                    85
related party transactions to occur during
the period

Reason for any significant difference
between the transaction price and the        N/A
market reference price (if applicable)


2. Related party transactions regarding purchase or sales of assets or equity interests

Applicable       Not Applicable
No such cases during the reporting period.


3. Related party transactions regarding joint investments in external parties

Applicable       Not Applicable
No such cases during the reporting period.


4. Current associated rights of credit and liabilities

Applicable       Not Applicable
No such cases during the reporting period.


5. Transactions with finance companies with related party relationships

Applicable       Not applicable
Deposit business

                                                                                                  Amount of the period
                                                                                  Opening
                                             Maximum daily                                                       Total   Ending balance
                      Related party                                Range of      balance (in Total deposited
Related parties                              deposit limit (in                                                withdrawn    (in RMB
                      relationship                                deposit rate      RMB        amount (in
                                              RMB 10,000)                                                     amount (in    10,000)
                                                                                  10,000)     RMB 10,000)
                                                                                                             RMB 10,000)
                   Related company
Zoomlion           to a shareholder
                                                                 No interest
Finance Co.,       holding more than                        0                            0             31              0            31
                                                                 accrued
Ltd.               5% of the
                   Company's shares


6. Transactions between the finance company controlled by the Company and related parties

Applicable       Not Applicable
There is no deposit, loan, credit, or other financial business between the finance company controlled by the Company and related
parties.


7. Other material related party transactions

Applicable       Not Applicable
No such cases during the reporting period.




                                                                          86
XV. Material Contracts and Execution Thereof

1. Trusts, subcontracts, and leases

(1) Trusts


Applicable       Not Applicable
No such cases during the reporting period.


(2) Subcontracts


Applicable       Not Applicable
No such cases during the reporting period.


(3) Leases


Applicable       Not applicable
Description of leases

     In accordance with the Property Lease Contract signed between the Company and the related party Foshan Shunde Yinghai
Investment Co., Ltd., the Company leased the 23 rd floor of Yingfeng Business Building at 8 Yixin Road, Junlan Community,
Beijiao Town, Shunde District, Foshan City, as the business premises with a construction area of 1,578.68 sqm. The rent payable
for 2022 was RMB 1,345,100, and the actual payment was RMB 1,345,100. As at December 31, 2022, the above amounts have
been settled.

Items that brought about profits or losses to the Company accounting for more than 10% of the gross profit of the Company during
the reporting period
Applicable       Not Applicable
No leasing items brought about profits or losses to the Company accounting for more than 10% of the gross profit of the Company
during the reporting period.


2. Material guarantees

Applicable       Not applicable

                                                                                                                              Unit: RMB 10,000

                   Guarantees provided by the Company and its subsidiaries for external parties (excluding those for subsidiaries)
                Disclosure date
                                            Actual       Actual                                     Counter-                             Guarantee for
  Guaranteed        of the      Guarantee                                              Collaterals                Term of    Completed
                                          occurrence    guarantee     Guarantee type               guarantees                              a related
    party       guarantee limit   limit                                                 (if any)                 guarantee     or not
                                             date        amount                                     (if any)                              party or not
                announcement
                                                                   Joint and
Buyer's credit August 25,                  May 14,
                               9,762.75                   9,762.75 several liability N/A          --            1 year       No          No
business       2022                        2022
                                                                   guarantee
                                                                   Joint and
Buyer's credit August 25,                  June 08,
                               2,935.95                   2,935.95 several liability N/A          --            2 years      No          No
business       2022                        2022
                                                                   guarantee
                                                                  Joint and
Buyer's credit August 25,      38,980.8 September
                                                        38,980.89 several liability N/A           --            1 year       No          No
business       2022                   9 18, 2022
                                                                  guarantee
Buyer's credit August 25,                  July 26,                  Joint and
                                   1,115                     1,115                     N/A        --            1 year       No          No
business       2022                        2022                      several liability


                                                                         87
                                                               guarantee

                                                               Joint and
Buyer's credit August 25,              July 19,
                            2,000.57                  2,000.57 several liability N/A   --   1 year    No    No
business       2022                    2022
                                                               guarantee
                                                               Joint and
Buyer's credit August 25,   21,609.8 June 30,
                                                     21,609.85 several liability N/A   --   3 years   No    No
business       2022                5 2021
                                                               guarantee
                                                               Joint and
Buyer's credit August 25,              September
                            4,114.54                  4,114.54 several liability N/A   --   2 years   No    No
business       2022                    05, 2022
                                                               guarantee
Guangdong
Wellkey                                                        Joint and
              January 30,              January 01,
Electric                     14,000                          0 several liability N/A   --   5 years   Yes   Yes
              2021                     2021
Material Co.,                                                  guarantee
Ltd.
Guangdong
Wellkey                                                        Joint and
              January 30,              June 02,
Electric                      2,000                          0 several liability N/A   --   2 years   Yes   Yes
              2021                     2021
Material Co.,                                                  guarantee
Ltd.
Liaoning
Donggang                                                      Joint and
              January 30,              July 22,
Magnetic                        500                       500 several liability N/A    --   3 years   No    Yes
              2021                     2022
Wire Co.,                                                     guarantee
Ltd.
Liaoning
Donggang                                                       Joint and
              January 30,              August 22,
Magnetic                      1,000                      1,000 several liability N/A   --   3 years   No    Yes
              2021                     2022
Wire Co.,                                                      guarantee
Ltd.
Anhui
Wellkey                                                        Joint and
              January 30,              June 28,
Electric                      4,000                      4,000 several liability N/A   --   1 year    No    Yes
              2021                     2022
Material Co.,                                                  guarantee
Ltd.
Anhui
Wellkey                                                        Joint and
              January 30,              June 21,
Electric                      2,000                      2,000 several liability N/A   --   1 year    No    Yes
              2021                     2022
Material Co.,                                                  guarantee
Ltd.
Anhui
Wellkey                                                        Joint and
              January 30,              May 10,
Electric                      3,000                      3,000 several liability N/A   --   1 year    No    Yes
              2021                     2023
Material Co.,                                                  guarantee
Ltd.
Anhui
Wellkey                                                        Joint and
              January 30,              February
Electric                      2,000                      2,000 several liability N/A   --   1 year    No    Yes
              2021                     17, 2022
Material Co.,                                                  guarantee
Ltd.
Liaoning
Donggang
              January 30,
Magnetic                     23,500 --                      -- --               --     --   --        --    --
              2021
Wire Co.,
Ltd.
Guangdong     January 30,
                             18,000 --                      -- --               --     --   --        --    --
Wellkey       2021


                                                                    88
Electric
Material Co.,
Ltd.
Anhui
Wellkey
              January 30,
Electric                          1,000 --                      -- --                 --         --            --           --          --
              2021
Material Co.,
Ltd.
Buyer's credit August 25,       24,480.4
                                         --                     -- --                 --         --            --           --          --
business       2022                    5
Total approved limit for                               Total actual amount of
external guarantee during the                 105,000 external guarantee during the                                                          93,019.55
reporting period (A1)                                 reporting period (A2)

Total approved limit for                              Total actual balance of
external guarantee at the end                 176,000 external guarantee at the end                                                          93,019.55
of the reporting period (A3)                          of the reporting period (A4)

                                              Guarantees provided by the Company for its subsidiaries
                Disclosure date
                                            Actual       Actual                                    Counter-                             Guarantee for
 Guaranteed         of the      Guarantee                                             Collaterals                Term of    Completed
                                          occurrence    guarantee   Guarantee type                guarantees                              a related
   party        guarantee limit   limit                                                (if any)                 guarantee     or not
                                             date        amount                                    (if any)                              party or not
                announcement
Zhejiang
Shangfeng
                                                                  Joint and
Special         April 30,                 November
                                 22,000                 16,766.59 several liability N/A          --            1 year       No          Yes
Blower          2022                      13, 2020
                                                                  guarantee
Industrial
Co., Ltd.
Zhejiang
Shangfeng
                                                                  Joint and
Special         April 30,                 January 4,
                                 22,350                 11,606.43 several liability N/A          --            2 years      No          Yes
Blower          2022                      2022
                                                                  guarantee
Industrial
Co., Ltd.
Zhejiang
Shangfeng
                                                                  Joint and
Special         April 30,                 November
                                 30,000                 18,276.68 several liability N/A          --            1 year       No          Yes
Blower          2022                      8, 2022
                                                                  guarantee
Industrial
Co., Ltd.
Zhejiang
Shangfeng
                                                                  Joint and
Special         April 30,                 March 3,
                                  7,500                       525 several liability N/A          --            5 years      No          Yes
Blower          2022                      2021
                                                                  guarantee
Industrial
Co., Ltd.
Zhejiang
Shangfeng
                                                                   Joint and
Special         April 30,                 March 31,
                                 12,000                      9,000 several liability N/A         --            2 years      No          Yes
Blower          2022                      2022
                                                                   guarantee
Industrial
Co., Ltd.
Zhejiang
Shangfeng
                                                                   Joint and
Special         April 30,                 February
                                 10,000                   1,297.82 several liability N/A         --            3 years      No          Yes
Blower          2022                      28, 2022
                                                                   guarantee
Industrial
Co., Ltd.


                                                                        89
Guangdong
                                                              Joint and
Infore         April 30,               June 17,
                               5,000                        0 several liability N/A   --   1 year     No   Yes
Technology     2022                    2020
                                                              guarantee
Co., Ltd.
Guangdong
                                                              Joint and
Infore         April 30,               March 1,
                               4,000                 1,512.72 several liability N/A   --   3 years    No   Yes
Technology     2022                    2021
                                                              guarantee
Co., Ltd.
Guangdong
                                                              Joint and
Infore         April 30,               June 17,
                               3,000                  1,313.3 several liability N/A   --   1 year     No   Yes
Technology     2022                    2022
                                                              guarantee
Co., Ltd.
Guangdong
                                                              Joint and
Infore         April 30,               February
                              12,000                  2,662.3 several liability N/A   --   1 year     No   Yes
Technology     2022                    24, 2022
                                                              guarantee
Co., Ltd.
Guangdong
                                                              Joint and
Infore         December 26,            December
                              15,000                 4,923.08 several liability N/A   --   5 years    No   Yes
Technology     2017                    26, 2018
                                                              guarantee
Co., Ltd.
Guangdong
Infore Smart                                                  Joint and
               April 30,               January13,
Sanitation                     2,000                    1,400 several liability N/A   --   5 years    No   Yes
               2022                    2022
Technology                                                    guarantee
Co., Ltd.
Changsha
Zhongbiao                                                     Joint and
            April 30,                  September
Environment                    5,000                        0 several liability N/A   --   1 year     No   Yes
            2022                       11, 2021
al Industry                                                   guarantee
Co., Ltd.
Shenzhen
Green
                                                              Joint and
Oriental      February 2,              August 25,
                              13,000                    4,485 several liability N/A   --   8 years    No   Yes
Environment 2016                       2016
                                                              guarantee
al Protection
Co., Ltd.
Shouxian
                                                              Joint and
Greenlander    April 30,               November
                               9,221                 7,701.21 several liability N/A   --   15 years   No   Yes
New Energy     2022                    10, 2022
                                                              guarantee
Co., Ltd.
Xiantao
Green
Oriental                                                     Joint and
            April 30,                  June 7,
Environment                   27,870                  26,900 several liability N/A    --   13 years   No   Yes
            2022                       2022
al Power                                                     guarantee
Generation
Co., Ltd.
Poyang
Greenlander                                                  Joint and
               August 21,              January21,
Renewable                     28,000                  27,000 several liability N/A    --   10 years   No   Yes
               2020                    2021
Energy Co.,                                                  guarantee
Ltd.
Maoming
Infore                                                        Joint and
            December 26,               March 20,
Environment                   15,000                10,428.05 several liability N/A   --   15 years   No   Yes
            2017                       2018
Water                                                         guarantee
Treatment



                                                                  90
Technology
Co., Ltd.
Lianjiang
                                                            Joint and
Greenlander   April 30,             November
                            9,963                  8,278.29 several liability N/A   --   15 years   No   Yes
New Energy    2022                  30, 2020
                                                            guarantee
Co., Ltd.
Lianjiang
                                                            Joint and
Greenlander   April 30,             May 25,
                           17,600                  2,148.61 several liability N/A   --   15 years   No   Yes
New Energy    2022                  2022
                                                            guarantee
Co., Ltd.
Lu'an
Zhongfeng
                                                            Joint and
Urban       April 23,               June 8,
                            8,000                     7,700 several liability N/A   --   13 years   No   Yes
Environment 2021                    2021
                                                            guarantee
al Service
Co., Ltd.
Tongshan
Tongda Water                                               Joint and
             April 25,              February 1,
Treatment                   6,000                      970 several liability N/A    --   18 years   No   Yes
             2020                   2021
Technology                                                 guarantee
Co., Ltd.
Changde
Zelian                                                     Joint and
            April 23,               May 26,
Environment                12,000                   12,000 several liability N/A    --   15 years   No   Yes
            2021                    2021
al Service                                                 guarantee
Co., Ltd.
Xiantao
Yinghe                                                     Joint and
              August 21,            January20,
Environment                30,100                   13,800 several liability N/A    --   15 years   No   Yes
              2020                  2021
al Protection                                              guarantee
Co., Ltd.
Biyang
Fenghe New                                                  Joint and
              April 23,             April 29,
Energy                     15,000                 14,422.85 several liability N/A   --   13 years   No   Yes
              2021                  2022
Power Co.,                                                  guarantee
Ltd.
Changsha
Zoomlion
                                                            Joint and
Changgao    October 24,             March 25,
                           10,000                     5,000 several liability N/A   --   5 years    No   Yes
Environment 2019                    2020
                                                            guarantee
al Industry
Co., Ltd.
Xiangtan
Yinglian                                                    Joint and
            April 30,               July 5,
Environment                15,000                     4,000 several liability N/A   --   10 years   No   Yes
            2022                    2022
al Industry                                                 guarantee
Co., Ltd.
Tongren
Bijiang
District                                                   Joint and
            April 30,               August 19,
Zhongfeng                  14,300                   12,350 several liability N/A    --   15 years   No   Yes
            2022                    2022
Environment                                                guarantee
al Industry
Co., Ltd.
Huai' an                                                    Joint and
            August 25,              December
Yinghe                     15,000                     1,595 several liability N/A   --   15 years   No   Yes
            2022                    26, 2022
Environment                                                 guarantee



                                                                91
Technology
Co., Ltd.
Biyang
Fenghe New
                April 23,
Energy                        9,000 --   -- --        --   --   --   --   --
                2021
Power Co.,
Ltd.
Zhejiang
Shangfeng
Special         April 30,
                             19,500 --   -- --        --   --   --   --   --
Blower          2022
Industrial
Co., Ltd.
Guangdong
Infore          April 30,
                              3,000 --   -- --        --   --   --   --   --
Technology      2022
Co., Ltd.
Guangdong
Infore Smart
                April 30,
Sanitation                    6,000 --   -- --        --   --   --   --   --
                2022
Technology
Co., Ltd.
Changsha
Zhongbiao
                April 30,
Environmental                 2,000 --   -- --        --   --   --   --   --
                2022
Industry Co.,
Ltd.
Anlong
Ninghe
Environmental April 30,
                              4,400 --   -- --        --   --   --   --   --
Protection      2022
Technology
Co., Ltd.
Xiantao
Green
Oriental
            April 30,
Environment                    130 --    -- --        --   --   --   --   --
            2022
al Power
Generation
Co., Ltd.
Poyang
Greenlander
                August 25,
Renewable                    28,000 --   -- --        --   --   --   --   --
                2022
Energy Co.,
Ltd.
Huaibei
Tongying
Environmental August 25,
                             11,000 --   -- --        --   --   --   --   --
Sanitation 2022
Management
Co., Ltd.
Huai'an
Chenjie
                August 25,
Environmental                 7,000 --   -- --        --   --   --   --   --
                2022
Engineering
Co., Ltd.
Other holding August 25,     10,000 --   -- --        --   --   --   --   --


                                                 92
subsidiaries    2022

                                                           Total actual guarantee
Total approved guarantee
                                                           amount for subsidiaries
limit for subsidiaries during                  329,852.5                                                                                    228,062.93
                                                           during the reporting period
the reporting period (B1)
                                                           (B2)

Total approved guarantee                                   Total actual guarantee
limit for subsidiaries at the                              balance for subsidiaries at
                                                495,934                                                                                     228,062.93
end of the reporting period                                the end of the reporting
(B3)                                                       period (B4)

                                                              Guarantees between subsidiaries
              Disclosure
              date of the                      Actual        Actual                                     Counter-                             Guarantee
 Guaranteed                     Guarantee                                                 Collateral                 Term of    Completed
              guarantee                      occurrence     guarantee    Guarantee type                guarantees                           for a related
   party                          limit                                                   s (if any)                guarantee     or not
                 limit                          date         amount                                     (if any)                            party or not
            announcement

Total approved guarantee                                   Total actual guarantee
limit for subsidiaries                                     amount for subsidiaries
                                                       0                                                                                                0
during the reporting period                                during the reporting period
(C1)                                                       (C2)

Total approved guarantee                                 Total actual guarantee
limit for subsidiaries at the                            balance for subsidiaries at
                                                       0                                                                                                0
end of the reporting period                              the end of the reporting
(C3)                                                     period (C4)

                                                 Total guarantee amount (total of the three kinds above)

Total approved guarantee                               Total actual guarantee amount
limit during the reporting                   434,852.5 during the reporting period                                                          321,082.48
period (A1+B1+C1)                                      (A2+B2+C2)

Total approved guarantee
                                                           Total actual guarantee
limit at the end of the
                                                671,934 balance at the end of the                                                           321,082.48
reporting period
                                                        reporting period (A4+B4+C4)
(A3+B3+C3)

Total actual guarantees (A4+B4+C4) as a percentage
                                                                                                                                                18.57%
of the Company's net assets

Of which:

Balance of debt guarantees provided directly or
indirectly for the guaranteed party with a liability-to-                                                                                    196,271.03
asset ratio over 70% (E)

Total of the three types of guarantees above
                                                                                                                                            196,271.03
(D+E+F)

Provision of external guarantees in breach of the
                                                           N/A
prescribed procedures (if any)


3. Entrusted cash management

(1) Entrusted wealth management


Applicable         Not applicable
Overview of entrusted wealth management during the reporting period

                                                                                                                                 Unit: RMB 10,000

                                                      Entrustment             Undue              Unrecovered          Accrued impairment amount
            Type                Funding source
                                                        amount                amount            overdue amount         for unrecovered overdue

                                                                             93
                                                                                                              wealth management

 Bank's wealth
                           Own funds                 163,320                  0                     0                             0
 management product
 Total                                               163,320                  0                     0                             0

High-risk entrusted wealth management with a material single amount or low security and low liquidity
Applicable      Not Applicable
Entrusted wealth management with expected irrecoverable principal or other circumstances that may lead to impairment
Applicable      Not Applicable


(2) Entrusted loans


Applicable      Not Applicable
No such cases during the reporting period.


4. Other material contracts

Applicable      Not Applicable
No such cases during the reporting period.


XVI. Other Material Events

Applicable      Not Applicable
No such cases during the reporting period.


XVII. Material Events of Subsidiaries

Applicable      Not applicable

     On April 29, 2022, the Proposal on the Revised Plan of Infore Environment Technology Group Co., Ltd. for the Spin-off of
Zhejiang Shangfeng Special Blower Industrial Co., Ltd. to be Listed on the ChiNext Board was deliberated and approved at the
18th meeting of the Ninth Board of Directors.
     On May 24, 2022, relevant proposals on the spin-off of the subsidiary Shangfeng for listing on the ChiNext market of SZSE
were deliberated and approved by the Company's 2021 Annual General Meeting of Shareholders. For more information, please
refer to the announcement published on 30 April 2022 on the media for information disclosure designated by the Company and
Cninfo (www.cninfo.com.cn).
     On June 30, 2022, SZSE accepted the application for the initial public offering of shares and listing on the ChiNext submitted
by Shangfeng.
     On July 25, 2022, SZSE issued the Letter on Review and Inquiry of the Application Documents of Zhejiang Shangfeng
Special Blower Industrial Co., Ltd. for IPO and Listing on the ChiNext (Review Letter [2022] No. 010721). Shangfeng submitted
its reply to the letter on December 7, 2022.
     On December 15, 2022, SZSE issued the Letter on the Second Round of Review and Inquiry of the Application Documents of
Zhejiang Shangfeng Special Blower Industrial Co., Ltd. for IPO and Listing on the ChiNext (Review Letter [2022] No. 011129).
Shangfeng is preparing its reply to the letter and advancing its spin-off and listing in an orderly manner.




                                                                   94
               Part VII Share Changes and Shareholder Information

I. Share Changes

1. Share changes

                                                                                                                                     Unit: Share
                                  Before                           Increase/decrease during the period (+/-)                           After
                                                               Shares as divide Shares as dividen
                            Quantity       Ratio    New issues nd converted fr d converted from         Others       Sub-total   Quantity      Ratio
                                                                  om profit      capital reserves
                                                                                                      -1,137,761, -1,137,76
I. Restricted Shares       1,139,599,318   35.84%            0                0                   0                              1,838,140 0.06%
                                                                                                              178     1,178
  1.1 Shares held by t
                                       0   0.00%             0                0                   0              0          0               0 0.00%
he State

  1.2 Shares held by s
tate-owned corporatio                  0   0.00%             0                0                   0              0          0               0 0.00%
ns

  1.3 Shares held by o
                                                                                                      -1,137,761, -1,137,76
ther domestic investor     1,139,599,318   35.84%            0                0                   0                              1,838,140 0.06%
                                                                                                              178     1,178
s

     Including: Shares
                                                                                                      -1,137,761, -1,137,76
 held by domestic corp     1,137,761,778   35.78%            0                0                   0                                         0 0.00%
                                                                                                              778     1,778
orations

    Shares held by do
                              1,837,540    0.06%             0                0                   0            600        600    1,838,140 0.06%
mestic individuals

   4. Shares held by ov
                                       0   0.00%             0                0                   0              0          0               0 0.00%
erseas investors

     Including: Shares
 held by overseas corp                 0   0.00%             0                0                   0              0          0               0 0.00%
orations

     Shares held by ov
                                       0   0.00%             0                0                   0              0          0               0 0.00%
erseas individuals
                                                                                                      1,137,761, 1,137,79        3,177,667,     99.9
II. Unrestricted Shares    2,039,872,433   64.16%       33,808                0                   0
                                                                                                            178     4,986              419       4%
  1. RMB-denominat                                                                                    1,137,761, 1,137,79        3,177,667,     99.9
                           2,039,872,433   64.16%       33,808                0                   0
ed ordinary shares                                                                                          178     4,986              419       4%
  2. Domestically list
                                       0   0.00%             0                0                   0              0          0               0 0.00%
ed foreign shares

   3. Overseas listed fo
                                       0   0.00%             0                0                   0              0          0               0 0.00%
reign shares

  4. Others                            0   0.00%             0                0                   0              0          0               0 0.00%

III. Total Number of S                                                                                                           3,179,505,    100.0
                           3,179,471,751 100.00%        33,808                0                   0              0     33,808
hares                                                                                                                                  559       0%

Reasons for share changes
Applicable       Not applicable




                                                                      95
     1. On December 29, 2021, the Company disclosed the Prompt Announcement on the Lifting of the Restricted Shares for
Material Asset Restructuring. The assets acquired by the Company's non-public offering of shares were listed on SZSE on January
4, 2019. The shares were issued to eight subscribers, including Ningbo Yingtai Investment Partnership (L.P.), Ningbo Zhongfeng
Investment Partnership (L.P.), and Ningbo Liantai Investment Partnership (L.P.) On January 4, 2022, a total of 119,764,396 shares
(3.77% of the Company's total shares) placed with three of the aforesaid shareholders, namely, Ningbo Yingtai Investment
Partnership (L.P.), Ningbo Zhongfeng Investment Partnership (L.P.), and Ningbo Liantai Investment Partnership (L.P.), became
publicly tradable upon the expiration of a 36-month lockup, as the conditions for lifting the sale restrictions were met.
     2. On June 30, 2022, the Company disclosed the Prompt Announcement on the Lifting of the Restricted Shares for Material
Asset Restructuring. The assets acquired by the Company's non-public offering of shares were listed on SZSE on January 4, 2019.
The shares were issued to eight subscribers, including Ningbo Infore Asset Management Co., Ltd. On July 4, 2022, a total of
1,017,997,382 shares (32.02% of the Company's total shares) placed with Ningbo Infore Asset Management Co., Ltd. became
publicly tradable upon the expiration of a 42-month lockup, the conditions for lifting the sales restrictions were met.
     3. Due to a change in the Company's executive positions, Mr. Wang Qingbo, the current Vice President and CFO, directly
held 800 shares of Infore Enviro. According to the provisions of SZSE, 600 of these shares were locked up. Therefore, restricted
shares increased by 600 during the reporting period.
     4. As at November 25, 2022, the second exercise period of the Third Stock Option Incentive Scheme has ended, with a
cumulative 16,409,380 options exercised. In particular, 25,000 options were exercised in the second exercise period of the Third
Stock Option Scheme, increasing the Company's unrestricted shares by 25,000.
     5. As at December 31, 2022, 15,833 shares in total were converted from the Infore Convertible Bonds issued by the Company.
In particular, 8,808 shares were converted in 2022, increasing the Company's unrestricted shares by 8,808.
     In summary, the Company's total share capital rose to 3,179,505,559 from 3,179,471,751 shares.

Approval of changes in share capital
Applicable      Not applicable

     1. On April 22, 2021, the Company convened the 13th Meeting of the Ninth Board of Directors. Upon discussion, the meeting
approved the Proposal on Matters Related to the Exercise in the 2nd Exercise Period of the 3rd Stock Option Incentive Scheme. A
total of 231 recipients of the 3rd Stock Option Incentive Scheme were deemed fit to exercise their 17,814,000 stock options
voluntarily in the 2nd exercise period before November 25, 2022.
     2. With the approval granted by the CSRC under Document ZH.J.X.K [2020] No. 2219, the Company publicly issued
14,761,896 convertible corporate bonds on November 4, 2020, each with a par value of RMB 100 and the total issued amount is
RMB 1,476,189,600. Approved by the SZSE, the Company's convertible corporate bonds of RMB 1,476,189,600 have been listed
for trading on the SZSE since December 2, 2020. The Infore Convertible Bonds in this offering have been convertible into the
Company's shares since May 10, 2021.

Transfer of shares
Applicable      Not applicable

     During the reporting period, China Securities Depository and Clearing (Shenzhen) Corporation Limited handled the share
registration procedures for 25,000 exercised stock options in the Third Stock Option Incentive Scheme and 8,808 shares converted
from the convertible corporate bonds.

Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share attributable to the Company's
ordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively
Applicable      Not Applicable
Other information that the Company deems necessary or required to be disclosed by the securities regulatory authorities
Applicable      Not Applicable




                                                                   96
2. Changes in restricted shares

Applicable     Not applicable

                                                                                                                        Unit: Share

                     Number of shares    Increase of      Decrease of            Number of
                                                                                                    Reasons for
                        held at the   restricted shares restricted shares      shares held at                         Date of lifting
Name of shareholders                                                                                   trading
                     beginning of the    during the        during the          the end of the                       trading restriction
                                                                                                     restriction
                          period            period            period               period
Ningbo Infore Asset                                                                               Restricted shares
Management Co.,            1,017,997,382                   0   1,017,997,382                    0 in private        July 4, 2022
Ltd.                                                                                              placement
Ningbo Yingtai
                                                                                                  Restricted shares
Investment
                              40,913,514                   0     40,913,514                     0 in private        January 4, 2022
Partnership (Limited
                                                                                                  placement
Partnership)
Ningbo Zhongfeng
                                                                                                  Restricted shares
Investment
                              40,141,033                   0     40,141,033                     0 in private        January 4, 2022
Partnership (Limited
                                                                                                  placement
Partnership)
Ningbo Liantai
                                                                                                  Restricted shares
Investment
                              38,709,849                   0     38,709,849                     0 in private        January 4, 2022
Partnership (Limited
                                                                                                  placement
Partnership)
                                                                                                                    25% of the total
                                                                                              Locked-up
                                                                                                                    shareholdings are
Others                          1,837,540             600                 0         1,838,140 shares of senior
                                                                                                                    unlocked
                                                                                              management
                                                                                                                    annually
Total                      1,139,599,318              600      1,137,761,778        1,838,140            --                 --


II. Issuance and Listing of Securities

1. Issuance of securities (exclusive of preference shares) during the reporting period

Applicable     Not Applicable


2. Changes in total shares, shareholder structure and asset and liability structures

Applicable     Not applicable

    1. On December 29, 2021, the Company disclosed the Prompt Announcement on the Lifting of the Restricted Shares for
Material Asset Restructuring. The assets acquired by the Company's non-public offering of shares were listed on SZSE on January
4, 2019. The shares were issued to eight subscribers, including Ningbo Yingtai Investment Partnership (L.P.), Ningbo Zhongfeng
Investment Partnership (L.P.), and Ningbo Liantai Investment Partnership (L.P.) The 119,764,396 shares placed with three of the
shareholders above, namely, Ningbo Yingtai Investment Partnership (L.P.), Ningbo Zhongfeng Investment Partnership (L.P.), and
Ningbo Liantai Investment Partnership (L.P.), not allowed to be transferred within 36 months from the date the issuance was
completed, became publicly tradable on January 4, 2022.
    2. On June 30, 2022, the Company disclosed the Prompt Announcement on the Lifting of the Restricted Shares for Material
Asset Restructuring. The assets acquired by the Company's non-public offering of shares were listed on SZSE on January 4, 2019.
The shares were issued to eight subscribers, including Ningbo Infore Asset Management Co., Ltd. The 1,017,997,382 shares
placed with Ningbo Infore Asset Management Co., Ltd., not allowed to be transferred within 42 months from the date the issuance
was completed, became publicly tradable on July 4, 2022.


                                                                97
     3. Due to a change in the Company's executive positions, Mr. Wang Qingbo, the current Vice President and CFO, directly
held 800 shares of Infore Enviro. According to the provisions of SZSE, 600 of these shares were locked up. The restricted shares
increased by 600 in 2022;
     4. On April 22, 2021, the Company convened the 13th Meeting of the Ninth Board of Directors. Upon discussion, the meeting
approved the Proposal on Matters Related to the Exercise in the Second Exercise Period of the Third Stock Option Incentive
Scheme. A total of 231 recipients of the Third Stock Option Incentive Scheme were deemed fit to exercise their 17,814,000 stock
options voluntarily in the second exercise period before November 25, 2022. As at November 25, 2022, a cumulative 16,409,380
options were exercised in the second exercise period of the Third Stock Option Incentive Scheme, as the exercise conditions were
met. In particular, 25,000 options were exercised in 2022, adding 25,000 shares to the Company's unrestricted shares.
     5. With the approval granted by the CSRC under Document ZH.J.X.K. [2020] No. 2219, the Company publicly issued
14,761,896 convertible corporate bonds on November 4, 2020, each with a par value of RMB 100, and the total issued amount was
RMB 1,476,189,600. Approved by the SZSE, the Company's convertible corporate bonds of RMB 1,476,189,600 have been listed
for trading on the SZSE since December 2, 2020. The Infore Convertible Bonds in this offering have been convertible into the
Company's shares since May 10, 2021. On January 4, 2023, the Company disclosed the Announcement on Results of Conversion of
Convertible Bonds and Changes in Share Capital in the Fourth Quarter of 2022. As at December 31, 2022, 15,833 shares in total
were converted from the "Infore Convertible Bonds" issued by the Company. In particular, 8,808 shares were converted in 2022,
increasing non-restricted shares by 8,808.


3. Existing internal employee shares

Applicable         Not Applicable


III. Controlling Shareholders and De Facto Controller

1. Shareholders and their shareholdings

                                                                                                                                  Unit: Share
                                                                      Preference
                                     Shareholders at                                                    Preference shareholders
                                                                      shareholders with
Shareholders of                      the end of the                                                     with resumed voting
                                                                      resumed voting
common shares at                     previous month                                                     power at the end of the
                              40,314                           37,882 power at the end                0                                           0
the end of the                       prior to the                                                       previous month prior to the
                                                                      of the reporting
reporting period                     disclosure date                                                    disclosure date of this
                                                                      period (if any)
                                     of this report                                                     report (if any) (see Note 8)
                                                                      (see Note 8)
                                       Shareholders with over 5% of total shares or top 10 shareholders

                                                        Shareholdings Increase/decrease                                      Shares pledged,
      Name of           Nature of     Shareholding                                       Restricted       Unrestricted       tagged or frozen
                                                       at the end of the   during the
    shareholders       shareholders       ratio                                          shares held      shares held
                                                       reporting period reporting period                                    Status     Quantity
Ningbo Infore Asset Domestic non-
                                                                                                                                       610,798,42
Management Co.,     state-owned              32.02%     1,017,997,382 0                               0   1,017,997,382 Pledged
                                                                                                                                                9
Ltd.                legal person
Zoomlion Heavy
                    Domestic non-
Industry Science
                    state-owned              12.56%       399,214,659 0                               0     399,214,659 -                         -
and Technology Co.,
                    legal person
Ltd.
                      Domestic non-
Infore Group Co.,                                                                                                                      100,000,00
                      state-owned            11.31%       359,609,756 0                               0     359,609,756 Pledged
Ltd.                                                                                                                                            0
                      legal person
Hongchuang            Domestic non-
(Shenzhen)            state-owned             9.76%       310,423,813 0                               0     310,423,813 -                         -
Investment Center     legal person

                                                                     98
(Limited
Partnership)
Infore Environment
Technology Group
Co., Ltd.-The
                   Others                        2.04%        64,789,616 64,789,616                       0        64,789,616 -                       -
Second Employee
Stock Ownership
Plan
                      Domestic
He Jianfeng                                      2.00%        63,514,690 0                                0        63,514,690 -                       -
                      natural person
Zara Green Hong       Foreign legal
                                                 1.72%        54,778,335 0                                0        54,778,335 -                       -
Kong Limited          persons
                      Domestic
Chen Liyuan                                      0.98%        31,018,000 0                                0        31,018,000 -                       -
                      natural person
Guangdong
Hengjian           State-owned
                                                 0.88%        28,059,147 0                                0        28,059,147 -                       -
Investment Holding corporation
Co., Ltd.
Ningbo Yingtai
Investment            Domestic non-
Partnership           state-owned                0.80%        25,570,914 -15,342,600                      0        25,570,914 -                       -
(Limited              legal person
Partnership)
Strategic investor/general legal person
becoming a top 10 shareholder in a      Not applicable.
rights issue (if any) (see note 3)
                                       Ningbo Infore Asset Management Co., Ltd. and Infore Group Co., Ltd. share the same de facto controller—
Related party or acting-in-concert
                                       He Jianfeng, and they are persons acting in concert mutually. Apart from that, the Company is not aware of
relationship among the
                                       any related party or acting-in-concert relationship (as defined in the Methods for the Acquisition and
aforementioned shareholders
                                       Management of Listed Companies) among other shareholders aforementioned.
Shareholders above
entrusting/entrusted with or waiving   Not applicable.
voting rights

Top 10 shareholders with repurchase
                                       NA
account (if any) (see note 10)

                                                  Shareholding of top 10 unrestricted shareholders

                                                                                                                         Type of shares
        Name of shareholders                 Unrestricted shares at the end of the reporting period
                                                                                                              Type of shares          Quantity
Ningbo Infore Asset Management                                                                           RMB-dominated
                                                                                         1,017,997,382                                    1,017,997,382
Co., Ltd.                                                                                                common shares
Zoomlion Heavy Industry Science                                                                          RMB-dominated
                                                                                           399,214,659                                     399,214,659
and Technology Co., Ltd.                                                                                 common shares
                                                                                                         RMB-dominated
Infore Group Co., Ltd.                                                                     359,609,756                                     359,609,756
                                                                                                         common shares
Hongchuang (Shenzhen) Investment                                                                         RMB-dominated
                                                                                           310,423,813                                     310,423,813
Center (Limited Partnership)                                                                             common shares
Infore Environment Technology
                                                                                                         RMB-dominated
Group Co., Ltd.-The Second                                                                 64,789,616                                      64,789,616
                                                                                                         common shares
Employee Stock Ownership Plan
                                                                                                         RMB-dominated
He Jianfeng                                                                                 63,514,690                                      63,514,690
                                                                                                         common shares
                                                                                                         RMB-dominated
Zara Green Hong Kong Limited                                                                54,778,335                                      54,778,335
                                                                                                         common shares
                                                                                                         RMB-dominated
Chen Liyuan                                                                                 31,018,000                                      31,018,000
                                                                                                         common shares


                                                                         99
Guangdong Hengjian Investment                                                                           RMB-dominated
                                                                                           28,059,147                                   28,059,147
Holding Co., Ltd.                                                                                       common shares
Ningbo Yingtai Investment                                                                               RMB-dominated
                                                                                           25,570,914                                   25,570,914
Partnership (Limited Partnership)                                                                       common shares
Related party or acting-in-concert
relationship among top 10               Ningbo Infore Asset Management Co., Ltd. and Infore Group Co., Ltd. share the same de facto controller—
unrestricted public shareholders, as    He Jianfeng, and they are persons acting in concert mutually. Apart from that, the Company is not aware of
well as between top 10 unrestricted     any related party or acting-in-concert relationship (as defined in the Methods for the Acquisition and
public shareholders and top 10          Management of Listed Companies) among other shareholders aforementioned.
shareholders

Top 10 common shareholders
                                        Infore Environment Technology Group Co., Ltd. -- Second Employee Stock Ownership Plan holds
involved in securities margin trading
                                        64,789,616 shares in the Company through credit accounts.
(if any) (see note 4)

Whether any top 10 common shareholders or top 10 unrestricted common shareholders of the Company conducted any agreed
repurchase transactions during the reporting period
Yes No
No such cases during the reporting period.


2. Controlling shareholder

Nature of the controlling shareholder: Natural person
Type of the controlling shareholder: Legal person

                                 Legal
 Name of the controlling                                       Date of
                         representative/person-                                    Organization code             Principal business activities
     shareholder                                            incorporation
                               in-charge
                                                                                                             Asset management, industrial
                                                                                                             investment, investment
                                                                                                             management. (The Company
                                                                                                             shall not engage in financial
                                                                                                             businesses such as deposit taking,
                                                                                                             financing guarantee, entrusted
                                                                                                             wealth management, and fund-
Ningbo Infore Asset
                              Wei Ting                   May 2, 2017           91330206MA290L5J3L            raising from the public without
Management Co., Ltd.
                                                                                                             the approval of regulatory
                                                                                                             authorities such as financial
                                                                                                             regulators.) (Business activities
                                                                                                             subject to approval under laws
                                                                                                             shall not be carried out without
                                                                                                             the approval of relevant
                                                                                                             authorities.)
Other domestically and
overseas listed
companies as controlling
                         Not applicable.
shareholders and equity
participants during the
reporting period

Changes in controlling shareholders during the reporting period
Applicable       Not Applicable
During the reporting period, there was no change in controlling shareholders of the Company.




                                                                       100
3. De facto controller and persons acting in concert

Nature of the de facto controller: Domestic natural person
Type of the de facto controller: Natural person

      Name of the de facto         Relationship with the de facto                                    Residency in other countries
                                                                             Nationality
         controller:                         controller                                                   or regions or not
                                   The de facto controller
 He Jianfeng                                                        China                           Yes
                                   himself
 Main occupation and position      Chairman of the Board and President of Infore Group Co., Ltd.
 Controlling interests in other
 domestically and overseas
                                   Beijing Baination Pictures Co., Ltd. (Stock code: 300291)
 listed companies in the past
 10 years

Change in de facto controller during the reporting period
Applicable     Not Applicable
During the reporting period, there was no change in de facto controller of the Company.
Ownership and control relationship between the de facto controller and the Company




                                                                Haikou Chaozhi                 Haikou Chaoyu
                                  Foshan Infore Trading      Enterprise Management         Enterprise Management
                                        Co., Ltd.             Partnership (Limited          Partnership (Limited
                He Jianfeng                                       Partnership)                  Partnership)



                                                    Infore Group Co., Ltd.




                                           Ningbo Infore Asset Management Co., Ltd.




                                        Infore Environment Technology Group Co., Ltd.




The de facto controller controls the Company via trust or other asset management arrangement
Applicable     Not Applicable


4. The pledged shares in the Company's controlling shareholder or largest shareholder and its persons
acting in concert account for 80% of their total shareholdings

Applicable     Not Applicable




                                                                101
5. Other institutional shareholders with a shareholding of more than 10%

Applicable       Not applicable
                     Legal
   Name of
                 representative/      Date of       Registered
 institutional                                                                    Principal business or management activities
                   person-in-      incorporation     capital
 shareholder
                     charge
                                                               Development, production, and sales of engineering machinery, agricultural
                                                               machinery, sanitation machinery, crane trucks and exclusive chassis, fire
                                                               engines and exclusive chassis, aerial work machines, emergency and
                                                               rescue equipment, mining machinery, machinery in coal mines, material
                                                               transportation facilities, other machinery, metal and non-metal materials,
                                                               and new high-tech products of optical-electro-mechanical integration and
                                                               provision of leasing and after-sale technical services. Sales of building and
Zoomlion                                                       decorative materials, vehicles for engineering and metal materials,
Heavy                                                          chemical materials, and chemical products (excluding hazardous
                                                   RMB
Industry    Zhan                   August 31,                  chemicals and monitoring products). Sales of lubricant oil, lubricating
                                                   8,677,992,2
Science and Chunxin                1999                        grease and hydraulic oil (excluding hazardous chemicals). Retail of
                                                   36
Technology                                                     refined oil products (operated by licensed subsidiaries only). Operation of
Co., Ltd.                                                      commodity and technology import and export businesses. Investment in
                                                               real estate with self-owned assets (the Company shall not engage in
                                                               national financial regulation and financial credit businesses such as
                                                               absorbing deposits, fund-raising and collection, entrusted loans, and
                                                               issuing notes and loans). Sales of second-hand vehicles. Disassembly and
                                                               recovery of disused machinery equipment. (Business activities subject to
                                                               approval in accordance with laws shall not be carried out until approval
                                                               from competent authorities has been obtained.)
                                                               Investment in various industries, investment management, investment
                                                               consultation, and asset management. Enterprise management and
                                                               enterprise consulting services. Computer information services and
                                                               software services. Film production and planning (based on validated
                                                               licenses). Advertising planning and production. Appraisal and consultancy
                                                               services of artwork (excluding ivory and ivory products) and collectibles.
                                                               Planning of culture and art exhibitions. Sales of maternal and baby
                                                               products and clothing. Supply and marketing of domestic business and
                                                               goods except for the above items. Business information consulting
                                                               services. Import and export of commodities or technologies (excluding the
Infore                                             RMB
                                   April 19,                   import and export of commodities and technologies that are prohibited by
Group Co.,       He Jianfeng                       4,450,000,0
                                   2002                        the state or involve administrative review and approval). R&D,
Ltd.                                               00
                                                               manufacturing, sales and leasing of sanitation equipment, robots, new
                                                               energy vehicles, and environmental monitoring equipment. Cleaning,
                                                               collection, recycling, transportation, and treatment services of urban
                                                               domestic waste. Undertaking environmental engineering and water
                                                               pollution control projects. R&D, manufacturing and sales of ventilators,
                                                               and air-cooling, water-cooling and air conditioning equipment. R&D,
                                                               manufacturing, and sales of new materials, equipment, and products.
                                                               (Production and manufacturing projects shall be operated by the
                                                               company's subsidiaries) (Business activities subject to approval under laws
                                                               shall not be carried out without the approval of relevant authorities.)


6. Limitations on shareholding reduction by the Company's controlling shareholder, de facto controller,
reorganizer and other commitment makers

Applicable       Not Applicable




                                                                       102
IV. Repurchase of Shares during the Reporting Period

The progress of share repurchase
Applicable     Not Applicable
Progress on reducing the repurchased shares by way of centralized bidding:
Applicable     Not Applicable




                                                               103
                       Part VIII Information on Preference Shares

Applicable     Not Applicable
During the reporting period, the Company had no preference shares.




                                                              104
                                     Part IX Information on Bonds

Applicable      Not applicable


I. Enterprise Bond

Applicable      Not Applicable
During the reporting period, the Company had no enterprise bond.


II. Corporate Bond

Applicable      Not Applicable
During the reporting period, the Company had no corporate bond.


III. Debt Financing Instruments of Non-financial Enterprises

Applicable      Not Applicable
During the reporting period, the Company had no debt financing instruments for non-financial enterprises


IV. Convertible Corporate Bonds

Applicable      Not applicable


1. Previous adjustments of the conversion price

     With the approval granted by the CSRC under Document ZH.J.X.K. [2020] No. 2219, the Company publicly issued
14,761,896 convertible corporate bonds on November 4, 2020, with a par value of RMB 100 and a total amount of RMB
1,476,189,600. The initial conversion price of this tranche of convertible bonds is RMB 8.31 per share. In case of distribution of
bonus shares, increase of share capital through conversion, issuance of new shares (excluding the increased share capital due to the
conversion of convertible corporate bonds issued this time), allotment of shares and distribution of cash dividends, the conversion
price will be adjusted accordingly pursuant to relevant laws and regulations.
     On July 8, 2021, the distribution of the Company's equity interests in 2020 was completed. In accordance with the issuance
terms of the Prospectus for Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co., Ltd.
and the relevant regulations of the CSRC on the issuance of convertible bonds, the conversion price of Infore Convertible Bonds
was adjusted from the original RMB 8.31 per share to RMB 8.19 per share since July 8, 2021. The adjusted conversion price will
take effect on July 8, 2021.
     On July 20, 2022, the Company's equity distribution for 2021 was completed. In accordance with the relevant requirements of
the Prospectus for Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co., Ltd., the
conversion price of Infore Convertible Bonds was adjusted from the original RMB 8.19 per share to RMB 8.09 per share, effective
on July 20, 2022. The adjusted conversion price took effect as from July 20, 2022.


2. Information on cumulative conversion of bonds into shares

Applicable      Not applicable



                                                                 105
                                                                                             The number of
                                                                                                  shares
                                                                              Accumulated                                            The
                                                                Accumulated                   converted as a
 Abbreviated    Commenceme                                                       share                                           unconverted
                                                 Total issued       share                     percentage of       Amount
  name of       nt and end date Total issued                                   conversion                                        amount as a
                                                   amount        conversion                  the total issued   unconverted
 convertible        of share    number (sheet)                                  number                                          percentage of
                                                   (RMB)          amount                       shares in the      (RMB)
    bond          conversion                                                                                                   the total issued
                                                                   (RMB)                         Company
                                                                                                                                   amount
                                                                                              before start of
                                                                                                conversion
Infore
                                                 1,476,189,60                                                   1,476,059,70
Convertible     2021-05-10        14,761,896                     129,900.00         15,833           0.00%                           99.99%
                                                         0.00                                                           0.00
Bonds


3. Information on top 10 convertible bond holders



                                                                           Number of              Amount of
                                                                                                                        Proportion of
                                                        Nature of      convertible bonds      convertible bonds
                                                                                                                     convertible bonds
  No.         Name of convertible bond holders         convertible    held at the end of the held at the end of the
                                                                                                                    held at the end of the
                                                      bond holders      reporting period       reporting period
                                                                                                                      reporting period
                                                                              (sheet)               (RMB)
         Renmin stable and double-benefit
         fixed-income pension product --
   1                                                 Others                        510,449          51,044,900.00                      3.46%
         Industrial and Commercial Bank of
         China Co., Ltd.
         CITIC Securities - Sany Heavy
         Industry Co., Ltd. - CITIC Securities
   2                                                 Others                        464,080          46,408,000.00                      3.14%
         Sany Zunxiang Customized No. 1
         Single Asset Management Plan
         Industrial and Commercial Bank of
         China Co., Ltd -- Aegon-industrial
   3                                                 Others                        447,180          44,718,000.00                      3.03%
         Hengyi Bond Securities Investment
         Fund
         CNPC Enterprise Annuity Program --
   4     Industrial and Commercial Bank of           Others                        444,071          44,407,100.00                      3.01%
         China Limited
         Fullgoal Fuyi aggressive fixed-
         income pension product -- Industrial
   5                                                 Others                        316,414          31,641,400.00                      2.14%
         and Commercial Bank of China Co.,
         Ltd
         Taiping Pension Insurance Co., Ltd. --
   6                                                 Others                        258,723          25,872,300.00                      1.75%
         Taiping Jinshi Bond Portfolio
         ICBC Credit Suisse Tianfeng
         convertible bond fixed income
   7                                                 Others                        247,205          24,720,500.00                      1.67%
         pension product - Bank of China
         Limited
         Yinhua Kunli No.2 fixed income
   8     pension product -- CITIC Bank Co.,          Others                        239,028          23,902,800.00                      1.62%
         Ltd.
         PICC Asset stable value fixed income
   9     pension product - Industrial and            Others                        200,000          20,000,000.00                      1.35%
         Commercial Bank of China Co., Ltd.
         Basic Pension Insurance Fund
  10                                                 Others                        197,639          19,763,900.00                      1.34%
         Portfolio 102




                                                                   106
4. Information on material changes in the profitability, asset status and credit standing of guarantor

Applicable        Not Applicable


5. Change in the Company's liabilities and credit standing, and cash arrangements for debt repayment in
coming years at the end of the reporting period

    On June 23, 2022, China Chengxin International Credit Rating Co., Ltd. issued the Follow-up Rating Report on the Public
Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co., Ltd. (2022) (X.P.W.H. [2022] Tracking
No.0895), maintaining the corporate credit rating of the Company at AA +, maintaining the credit rating of Infore Convertible
Bonds at AA +, with a rating outlook as stable. For details, please refer to the Follow-up Rating Report on Public Offering of
Convertible Corporate Bonds by the Company disclosed by the Company on June 30, 2022 on Cninfo (www.cninfo.com.cn).
    The primary sources of funds for the Company to pay the principal and interest of the convertible bonds in the future are as
follows: (1) The Company seeks organic growth by strengthening financial management and increasing net cash inflows and net
profits from operating activities; (2) The Company has good credit standing and a reasonable asset structure and can obtain
financing from banks and other channels to reasonably arrange for redemption funds.


V. During the Reporting Period, the Loss in the Scope of Consolidated Statements
Outstripped 10% of the Net Assets at the End of the Previous Year

Applicable        Not Applicable


VI. Overdue Interest-Bearing Debts Other Than Bonds at the End of the Reporting Period

Applicable        Not Applicable


VII. Violation of Rules and Regulations During the Reporting Period

Yes No


VIII. Main Accounting Data and Financial Indicators of the Company in Last Two Years as
at the End of the Reporting Period

                                                                                                             Unit: RMB 10,000
                                   At the end of the reporting
                 Item                                                  At the end of last year              YoY change
                                             period
 Current ratio                                               1.67                             1.70                        -1.76%
 Liabilities-to-assets ratio                            39.40%                              39.10%                        0.30%
 Quick ratio                                                 1.56                             1.55                        0.65%
                                      The reporting period                 The prior year                   YoY change
 Net profit after deducting
                                                      32,475.34                        55,705.05                         -41.70%
 non-recurring profit and loss
 EBITDA/total liabilities                               12.30%                              14.03%                        -1.73%
 Interest coverage ratio                                     3.79                             6.02                       -37.04%
 Cash/interest coverage ratio                             14.07                               9.46                       48.73%



                                                                 107
EBITDA/interest coverage
                              7.39        9.15   -19.23%
ratio
Loan repayment rate        100.00%     100.00%    0.00%
Interest coverage ratio    100.00%     100.00%    0.00%




                                 108
                                            Part X Financial Report

I. Audit Report

 Type of audit opinions                           Standard unqualified opinion
 Signing date of the auditor’s report            April 24, 2023
 Name of the auditor                              Pan-China Certified Public Accountants LLP (Special General Partnership)
 No. of the auditor’s report                     PCCPAAR [2023] No. 4798
 Names of certified public accountants            Bian Shanshan, and Wei Xiaohui
                                                   Main body of the auditor's report

To the Shareholders of Infore Environment Technology Group Co., Ltd.:

I. Audit Opinion
     We have audited the accompanying financial statements of Infore Environment Technology Group Co., Ltd. (the “Company”),
which comprise the consolidated and parent company balance sheets as at December 31, 2022, the consolidated and parent company
income statements, the consolidated and parent company cash flow statements, and the consolidated and parent company statements
of changes in equity for the year then ended, as well as notes to financial statements.
     In our opinion, the attached financial statements present fairly, in all material respects, the financial position of the Company as
at December 31, 2022, and of its financial performance and its cash flows for the year then ended in accordance with China
Accounting Standards for Business Enterprises.

II. Basis for Audit Opinion
     We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those standards are further
described in the Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the China Code of Ethics for Certified Public Accountants, and we have fulfilled
other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.

III. Key Audit Matters
     Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not express a separate opinion on these matters.
     (I) Revenue recognition
     1. Key audit matters
     Please refer to section III (XXVI) and section V (II) 1 of notes to the financial statements for details.
     The Company is mainly engaged in sales of environmental and sanitation machinery and ventilation equipment as well as
sanitation operation service. In 2022, the operating revenue amounted to 12,255,992,938.42 yuan, with year-over-year growth of
3.28%.
     Sales of environmental and sanitation machinery and ventilation equipment are performance obligations satisfied at a point in
time. Revenue is recognized when the Company has delivered goods to the designated address as agreed by contract and such
delivered goods have been verified for acceptance by customers, and the Company has collected the payments or has obtained the
right to the payments, and related economic benefits are highly probable to flow to the Company. The sanitation operation service is
a performance obligation satisfied over time. Revenue is recognized based on the service assessment statement confirmed by the
labor receiving party, etc.
     As operating revenue is one of the key performance indicators of the Company, the authenticity, accuracy and completeness of


                                                                   109
revenue recognition have a significant impact on the Company’s financial statements, we have identified revenue recognition as a
key audit matter.
     2. Responsive audit procedures
     Our main audit procedures for revenue recognition are as follows:
     (1) We obtained understandings of key internal controls related to revenue recognition, assessed the design of these controls,
determined whether they had been executed, and tested the effectiveness of the operation;
     (2) We checked sales contracts with clients, obtained understandings of main contractual terms or conditions, and assessed
whether the revenue recognition method conformed to China Accounting Standards for Business Enterprises;
     (3) We performed analysis procedure on operating revenue and gross margin by month, product, client, project, etc., so as to
identify whether there are significant or abnormal fluctuations and find out the reason of fluctuations;
     (4) For revenue from sales of environmental and sanitation machinery, ventilation equipment, etc., we checked supporting
documents related to revenue recognition by sampling method, including sales contracts, sales invoices, delivery lists, shipping
documents, client acceptance receipts, etc. For revenue from sanitation operation service, we checked supporting documents related
to revenue recognition by sampling method, including sales contracts, service assessment statements, supervision schedule, etc.;
     (5) We performed confirmation procedures on significant clients of product sales and major clients of sanitation operation
service to confirm the sales amounts in the current period, and the balances of current accounts;
     (6) We performed cut-off tests on the operating revenue recognized around the balance sheet date, and assessed whether the
operating revenue was recognized in the appropriate period; and
     (7) We checked whether information related to operating revenue had been presented appropriately in the financial statements.
     (II) Impairment of accounts receivable and long-term receivables
     1. Key audit matters
     Please refer to section III (X) and section V (I) 3, 9 and 11 of notes to the financial statements for details.
     As of December 31, 2022, the book balance of accounts receivable amounted to 6,210,048,763.32 yuan, with provision for bad
debts of 584,256,290.95 yuan, and the carrying amount amounted to 5,625,792,472.37 yuan; the book balance of long-term
receivables (including those due within one year) amounted to 1,541.22 million yuan, with provision for bad debts of 132.59 million
yuan, and the carrying amount amounted to 1,408.64 million yuan. The carrying amount of accounts receivable and long-term
receivables (collectively referred to as “receivables”) totaled 7,034.43 million yuan.
     Based on credit risk features of receivables, the Company’s management (the “Management”) measures the provision for bad
debts at the amount of lifetime expected credit losses, either on an individual basis or on a collective basis. For receivables with
expected credit losses measured on an individual basis, the Management estimates the expected cash flows, so as to identify the
provision for bad debts to be accrued, based on a comprehensive consideration of information with reasonableness and evidence,
which is related to the past events, the current situation and the forecast of future economic conditions. For receivables with expected
credit losses measured on a collective basis, the Management classifies portfolios on the basis of overdue days or ages, adjusts them
based on historical credit risk loss experience and forward-looking estimations, prepares the comparison table of overdue days or
ages and expected credit loss rate of receivables, so as to calculate the provision for bad debts to be accrued.
     As the amount of receivables is significant and the impairment testing involves significant judgment of the Management, we
have identified impairment of receivables as a key audit matter.
     2. Responsive audit procedures
     Our main audit procedures for impairment of receivables are as follows:
     (1) We obtained understandings of key internal controls related to receivables, assessed the design of these controls, determined
whether they had been executed, and tested the effectiveness of the operation;
     (2) We reviewed receivables with provision for bad debts made in previous periods for their subsequent write-off or reversal,
and assessed the accuracy of historical estimations made by the Management;
     (3) We reviewed the consideration of the Management on credit risk assessment of receivables and objective evidence, and
assessed whether the credit risk features of receivables had been appropriately identified by the Management;

                                                                    110
     (4) For receivables with expected credit losses measured on an individual basis, we obtained and checked the Management’s
estimations on the expected future cash flows, assessed the reasonableness of key assumptions and the accuracy of data adopted in
the estimations and checked them with acquired external evidence;
     (5) For receivables with expected credit losses measured on a collective basis, we assessed the reasonableness of portfolio
classification on the basis of credit risk features; we assessed the reasonableness of the comparison table of overdue days or ages and
expected credit loss rate of receivables prepared by the Management based on the historical credit loss experience of portfolios with
similar credit risk features and forward-looking estimations; we tested the accuracy and completeness of data used by the
Management (including overdue days, ages, etc.) and whether the calculation of provision for bad debts was accurate;
     (6) We checked the subsequent collection of receivables and assessed the reasonableness of provision for bad debts made by the
Management; and
     (6) We checked whether information related to impairment of receivables had been presented appropriately in the financial
statements.
     (III) Impairment of goodwill
     1. Key audit matters
     Please refer to section III (XX) and section V (I) 20 of notes to the financial statements for details.
     As of December 31, 2022, the cost of goodwill amounted to 6,268,845,549.87 yuan, with provision for impairment of
529,242,870.08 yuan, and the carrying amount amounted to 5,739,602,679.79 yuan, accounting for 19.61% of total assets.
     The Management will perform impairment test on goodwill together with related asset groups or asset group portfolios when
there is evidence indicating impairment loss in asset group or asset group portfolio related to goodwill, or at the end of each period,
and the recoverable amount of related asset groups or asset group portfolios is determined based on the estimated present value of
future cash flows. Key assumptions adopted in the impairment test include: revenue growth rate in detailed forecast period, growth
rate for stable income, profit margin, pre-tax discount rate, etc.
     As the amount of goodwill is significant and impairment test involves significant judgment of the Management, we have
identified impairment of goodwill as a key audit matter.
     2. Responsive audit procedures
     Our main audit procedures for impairment of goodwill are as follows:
     (1) We obtained understandings of key internal controls related to impairment of goodwill, assessed the design of these controls,
determined whether they had been executed, and tested the effectiveness of the operation;
     (2) We reviewed the present value of future cash flows estimated by the Management in previous years and the actual operating
results, and assessed the accuracy of the Management’s historical estimations;
     (3) We obtained understandings of and assessed the competency, professional quality and objectivity of external appraisers
engaged by the Management;
     (4) We assessed the competency, professional quality and objectivity of external appraisers engaged by us and the
appropriateness of their works;
     (5) We assessed the reasonableness and consistency of impairment test method adopted by the Management;
     (6) We assessed the reasonableness of key assumptions used in impairment test and reviewed whether relevant assumptions
were consistent with overall economy environment, industry condition, management situation, historical experience, operation plan,
approved budget, meeting summary and other assumptions related to the financial statements used by the Management;
     (7) We reviewed the sensitivity analysis on key assumptions performed by the Management, assessed the effect of changes in
key assumptions on impairment test result, and identified signs of possible management bias in choosing key assumptions;
     (8) We tested the accuracy, completeness and relativity of data used in the impairment test by the Management and reviewed the
internal consistency of related information in the impairment test;
     (9) We tested whether the calculation of estimated present value of future cash flows by the Management was accurate; and
     (10) We checked whether information related to impairment of goodwill had been presented appropriately in the financial
statements.

                                                                     111
IV. Other Information
     The Management is responsible for the other information. The other information comprises the information included in the
Company’s annual report, but does not include the financial statements and our auditor’s report thereon.
     Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
     In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit
or otherwise appears to be materially misstated.
     If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are
required to report that fact. We have nothing to report in this regard.

V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
     The Management is responsible for preparing and presenting fairly the financial statements in accordance with China
Accounting Standards for Business Enterprises, as well as designing, implementing and maintaining internal control relevant to the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
     In preparing the financial statements, the Management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
     Those charged with governance are responsible for overseeing the Company’s financial reporting process.

VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements
     Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with China Standards on Auditing will always detect
a material misstatement when it exists. Misstatement can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
     We exercise professional judgment and maintain professional skepticism throughout the audit performed in accordance with
China Standards on Auditing. We also:
     (I) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
     (II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances.
     (III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Management.
     (IV) Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
     (V) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements



                                                                   112
represent the underlying transactions and events in a manner that achieves fair presentation.
     (VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities
within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and
performance of the group audit. We remain sole responsibility for our audit opinion.
     We communicate with those charged with governance regarding the planned audit scope, time schedule and significant audit
findings, including any deficiencies in internal control of concern that we identify during our audit.
     We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
     From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.




Pan-China Certified Public Accountants LLP               Chinese Certified Public Accountant: Bian Shanshan

                                                         (Engagement Partner)

         Hangzhou  China                                 Chinese Certified Public Accountant: Wei Xiaohui



                                                         Date of Report: April 24, 2023




The auditor’s report and the accompanying financial statements are English translations of the Chinese auditor’s report and
statutory financial statements prepared under accounting principles and practices generally accepted in the People’s Republic of
China. These financial statements are not intended to present the financial position and financial performance and cash flows in
accordance with accounting principles and practices generally accepted in other countries and jurisdictions. In case the English
version does not conform to the Chinese version, the Chinese version prevails.




                                                                   113
Infore Environment Technology Group Co., Ltd.
Consolidated balance sheet as at December 31, 2022
(Expressed in Renminbi Yuan)
                                                                  Note
                              Assets                                              Closing balance         December 31, 2021
                                                                  No.
Current assets:
 Cash and bank balances                                              1                4,728,203,530.46          4,583,245,371.02
 Settlement funds
 Loans to other banks
 Held-for-trading financial assets
 Derivative financial assets
 Notes receivable                                                    2                   13,565,706.22             54,402,653.25
 Accounts receivable                                                 3                5,625,792,472.37          4,946,704,963.71
 Receivables financing                                               4                  107,316,593.41            296,379,694.57
 Advances paid                                                       5                  192,360,542.24            128,604,382.66
 Premiums receivable
 Reinsurance accounts receivable
 Reinsurance reserve receivable
 Other receivables                                                   6                  385,622,271.00            509,164,126.27
 Financial assets under reverse repo
 Inventories                                                         7                  881,038,036.95          1,124,149,719.01
 Contract assets                                                     8                  101,023,854.33            140,367,802.53
 Assets held for sale
 Non-current assets due within one year                            9                    476,505,825.28            739,917,866.53
 Other current assets                                              10                   497,450,797.42            492,705,381.17
                        Total current assets                                         13,008,879,629.68         13,015,641,960.72
Non-current assets:
 Loans and advances
 Debt investments
 Other debt investments
 Long-term receivables                                             11                   932,130,871.82          1,017,246,537.53
 Long-term equity investments                                      12                   676,829,959.84            603,580,781.31
 Other equity instrument investments                               13                    15,352,971.01             15,702,971.01
 Other non-current financial assets
 Investment property                                               14                    27,105,435.03              1,837,703.68
 Fixed assets                                                      15                 2,268,287,202.01          1,758,052,005.19
 Construction in progress                                          16                    41,073,267.68            224,068,633.86
 Productive biological assets
 Oil & gas assets
 Right-of-use assets                                               17                    31,859,454.24             25,505,911.86
 Intangible assets                                                 18                 6,048,114,364.49          5,350,595,868.40
 Development expenditures                                          19                    30,338,218.08             15,682,278.17
 Goodwill                                                          20                 5,739,602,679.79          5,976,192,021.27
 Long-term prepayments                                             21                    30,210,935.91             15,733,757.32
 Deferred tax assets                                               22                   114,577,132.19            109,565,926.15
 Other non-current assets                                          23                   306,929,738.21            233,477,295.83
                      Total non-current assets                                       16,262,412,230.30         15,347,241,691.58
                            Total assets                                             29,271,291,859.98         28,362,883,652.30

Legal representative: Ma Gang      Officer in charge of accounting: Wang Qingbo      Head of accounting department: Wu Shanshan




                                                               114
Infore Environment Technology Group Co., Ltd.
Consolidated balance sheet as at December 31, 2022 (continued)
(Expressed in Renminbi Yuan)
                               Liabilities & Equity                     Note No.           Closing balance           December 31, 2021
Current liabilities:
 Short-term borrowings                                                     24                      440,103,105.44              439,024,733.46
 Central bank loans
 Loans from other banks
 Held-for-trading financial liabilities
 Derivative financial liabilities
 Notes payable                                                             25                    2,515,229,293.17            2,468,799,189.71
 Accounts payable                                                          26                    2,771,961,271.66            2,960,061,508.33
 Advances received
 Contract liabilities                                                      27                      274,289,978.25              210,432,628.98
 Financial liabilities under repo
 Absorbing deposit and interbank deposit
 Deposit for agency security transaction
 Deposit for agency security underwriting
 Employee benefits payable                                                 28                      409,574,018.72              310,701,572.37
 Taxes and rates payable                                                   29                      114,968,226.88              139,494,861.08
 Other payables                                                            30                      657,122,287.53              683,714,082.05
 Handling fee and commission payable
 Reinsurance accounts payable
 Liabilities held for sale
 Non-current liabilities due within one year                               31                      561,019,099.59              378,610,951.81
 Other current liabilities                                                 32                       31,616,947.24               62,964,777.60
                             Total current liabilities                                           7,775,884,228.48            7,653,804,305.39
Non-current liabilities:
 Insurance policy reserve
 Long-term borrowings                                                      33                    1,922,306,226.32            1,697,742,767.72
 Bonds payable                                                             34                    1,308,690,556.32            1,254,962,176.00
    Including: Preferred shares
               Perpetual bonds
 Lease liabilities                                                         35                       23,255,624.30               18,523,740.10
 Long-term payables                                                        36                      315,735,814.91              315,735,814.91
 Long-term employee benefits payable
 Provisions                                                                37                        4,575,049.22                3,129,793.85
 Deferred income                                                           38                      120,890,710.04              101,635,992.65
 Deferred tax liabilities                                                  22                       54,207,628.08               32,562,033.97
 Other non-current liabilities                                             39                        8,333,333.33
                           Total non-current liabilities                                         3,757,994,942.52            3,424,292,319.20
                                  Total liabilities                                             11,533,879,171.00           11,078,096,624.59
Equity:
 Share capital                                                             40                    3,179,505,559.00            3,175,734,760.00
 Other equity instruments                                                  41                      266,916,341.80              266,929,289.24
    Including: Preferred shares
               Perpetual bonds
 Capital reserve                                                           42                    9,662,511,254.48            9,772,795,863.75
 Less: Treasury shares                                                     43                       94,132,795.17              455,303,777.91
 Other comprehensive income                                                44                       -4,630,000.00               -4,280,000.00
 Special reserve                                                           45
 Surplus reserve                                                           46                      315,124,767.92              296,754,883.56
 General risk reserve
 Undistributed profit                                                      47                    3,963,306,890.06            3,874,934,971.69
 Total equity attributable to the parent company                                                17,288,602,018.09           16,927,565,990.33
 Non-controlling interest                                                                          448,810,670.89              357,221,037.38
                                   Total equity                                                 17,737,412,688.98           17,284,787,027.71
                            Total liabilities & equity                                          29,271,291,859.98           28,362,883,652.30

Legal representative: Ma Gang               Officer in charge of accounting: Wang Qingbo       Head of accounting department: Wu Shanshan




                                                                        115
nfore Environment Technology Group Co., Ltd.
Parent company balance sheet as at December 31, 2022
(Expressed in Renminbi Yuan)
                                                             Note
                          Assets                                         Closing balance            December 31, 2021
                                                             No.
Current assets:
 Cash and bank balances                                                         632,554,163.45             920,283,773.31
 Held-for-trading financial assets
 Derivative financial assets
 Notes receivable                                                                                             2,964,486.88
 Accounts receivable
 Receivables financing                                                           118,400,000.00            221,756,340.36
 Advances paid                                                                       638,924.48                601,403.69
 Other receivables                                             1               4,492,807,441.80          3,884,005,093.84
 Inventories
 Contract assets
 Assets held for sale
 Non-current assets due within one year
 Other current assets
                   Total current assets                                        5,244,400,529.73          5,029,611,098.08
Non-current assets:
 Debt investments
 Other debt investments
 Long-term receivables
 Long-term equity investments                                  2          17,076,616,871.15             16,956,047,890.72
 Other equity instrument investments                                          15,352,971.01                 15,702,971.01
 Other non-current financial assets
 Investment property
 Fixed assets
 Construction in progress
 Productive biological assets
 Oil & gas assets
 Right-of-use assets                                                                 593,318.35               1,779,955.11
 Intangible assets                                                                 1,749,936.60               2,755,338.15
 Development expenditures
 Goodwill
 Long-term prepayments
 Deferred tax assets
 Other non-current assets
                Total non-current assets                                  17,094,313,097.11             16,976,286,154.99
                      Total assets                                        22,338,713,626.84             22,005,897,253.07

Legal representative: Ma Gang   Officer in charge of accounting: Wang Qingbo     Head of accounting department: Wu Shanshan




                                                            116
Infore Environment Technology Group Co., Ltd.
Parent company balance sheet as at December 31, 2022 (continued)
(Expressed in Renminbi Yuan)
                   Liabilities & Equity                             Closing balance                 December 31, 2021
Current liabilities:
 Short-term borrowings                                                           20,022,000.00             150,165,000.00
 Held-for-trading financial liabilities
 Derivative financial liabilities
 Notes payable                                                                   42,395,262.51
 Accounts payable                                                                 1,137,507.93                1,137,507.93
 Advances received
 Contract liabilities
 Employee benefits payable                                                         4,221,817.88              3,357,619.13
 Taxes and rates payable                                                           6,259,662.49             10,278,606.48
 Other payables                                                                1,064,116,084.37            892,387,560.66
 Liabilities held for sale
 Non-current liabilities due within one year                                    311,902,807.73                1,539,297.15
 Other current liabilities
                 Total current liabilities                                     1,450,055,142.91          1,058,865,591.35
Non-current liabilities:
 Long-term borrowings                                                             59,871,432.00            300,000,000.00
 Bonds payable                                                                 1,308,690,556.32          1,254,962,176.00
   Including: Preferred shares
                Perpetual bonds
 Lease liabilities                                                                                              579,712.08
 Long-term payables                                                                3,000,000.00               3,000,000.00
 Long-term employee benefits payable
 Provisions                                                                        4,114,064.16               3,129,793.85
 Deferred income
 Deferred tax liabilities
 Other non-current liabilities
              Total non-current liabilities                                    1,375,676,052.48          1,561,671,681.93
                     Total liabilities                                         2,825,731,195.39          2,620,537,273.28
Equity:
 Share capital                                                                 3,179,505,559.00          3,175,734,760.00
 Other equity instruments                                                        266,916,341.80            266,929,289.24
   Including: Preferred shares
                Perpetual bonds
 Capital reserve                                                          15,324,654,061.79             15,433,256,911.67
 Less: Treasury shares                                                        94,132,795.17                455,303,777.91
 Other comprehensive income                                                   -4,630,000.00                 -4,280,000.00
 Special reserve
 Surplus reserve                                                             280,904,378.50                262,534,494.14
 Undistributed profit                                                        559,764,885.53                706,488,302.65
                       Total equity                                       19,512,982,431.45             19,385,359,979.79
                Total liabilities & equity                                22,338,713,626.84             22,005,897,253.07

Legal representative: Ma Gang   Officer in charge of accounting: Wang Qingbo     Head of accounting department: Wu Shanshan




                                                            117
Infore Environment Technology Group Co., Ltd.
Consolidated income statement for the year ended December 31, 2022
(Expressed in Renminbi Yuan)
                                                                                                    Note
                                                       Items                                               Current period cumulative    Preceding period comparative
                                                                                                    No.
I. Total operating revenue                                                                                         12,255,992,938.42              11,866,291,611.45
Including: Operating revenue                                                                         1             12,255,992,938.42              11,866,291,611.45
      Interest income
      Premiums earned
      Revenue from handling charges and commission
II. Total operating cost                                                                                           11,359,383,512.75              10,931,753,295.05
Including: Operating cost                                                                            1              9,469,510,831.27               9,232,198,569.17
      Interest expenses
      Handling charges and commission expenditures
      Surrender value
      Net payment of insurance claims
      Net provision of insurance policy reserve
      Premium bonus expenditures
      Reinsurance expenses
      Taxes and surcharges                                                                           2                 74,685,022.05                  54,143,815.44
      Selling expenses                                                                               3                762,970,847.95                 738,833,571.05
      Administrative expenses                                                                        4                609,601,680.23                 585,353,407.57
      R&D expenses                                                                                   5                340,775,707.34                 262,619,127.29
      Financial expenses                                                                             6                101,839,423.91                  58,604,804.53
      Including: Interest expenses                                                                                    170,568,834.86                 149,868,429.63
                  Interest income                                                                                      86,389,951.68                 107,324,690.38
Add: Other income                                                                                    7                119,564,678.48                  83,541,172.51
      Investment income (or less: losses)                                                            8                -41,466,125.62                 239,933,995.59
      Including: Investment income from associates and joint ventures                                                   8,548,481.77                  36,885,135.08
      Gains from derecognition of financial assets at amortized cost
      Gains on foreign exchange (or less: losses)
      Gains on net exposure to hedging risk (or less: losses)
      Gains on changes in fair value (or less: losses)                                              9                                                -73,074,674.05
      Credit impairment loss                                                                        10               -104,837,162.42                 -98,375,820.02
      Assets impairment loss                                                                        11               -312,998,494.66                -230,940,495.92
      Gains on asset disposal (or less: losses)                                                     12                    532,796.72                  -1,161,842.22
III. Operating profit (or less: losses)                                                                               557,405,118.17                 854,460,652.29
Add: Non-operating revenue                                                                          13                 12,798,235.90                  10,028,024.42
Less: Non-operating expenditures                                                                    14                 13,947,988.82                  11,786,454.06
IV. Profit before tax (or less: total loss)                                                                           556,255,365.25                 852,702,222.65
Less: Income tax expenses                                                                           15                 96,963,243.68                  53,503,488.11
V. Net profit (or less: net loss)                                                                                     459,292,121.57                 799,198,734.54
(I) Categorized by the continuity of operations
      1. Net profit from continuing operations (or less: net loss)                                                    459,292,121.57                 792,171,037.03
      2. Net profit from discontinued operations (or less: net loss)                                                                                   7,027,697.51
(II) Categorized by the portion of equity ownership
      1. Net profit attributable to owners of parent company (or less: net loss)                                      418,794,179.13                 752,792,198.66
      2. Net profit attributable to non-controlling shareholders (or less: net loss)                                   40,497,942.44                  46,406,535.88
VI. Other comprehensive income after tax                                                            16                   -350,000.00                  -4,280,000.00
Items attributable to the owners of the parent company                                                                   -350,000.00                  -4,280,000.00
(I) Not to be reclassified subsequently to profit or loss                                                                -350,000.00                  -4,280,000.00
      1. Remeasurements of the net defined benefit plan
      2. Items under equity method that will not be reclassified to profit or loss
      3. Changes in fair value of other equity instrument investments                                                     -350,000.00                 -4,280,000.00
      4. Changes in fair value of own credit risk
      5. Others
(II) To be reclassified subsequently to profit or loss
      1. Items under equity method that may be reclassified to profit or loss
      2. Changes in fair value of other debt investments
      3. Profit or loss from reclassification of financial assets into other comprehensive income
      4. Provision for credit impairment of other debt investments
      5. Cash flow hedging reserve
      6. Translation reserve
      7. Others
Items attributable to non-controlling shareholders
VII. Total comprehensive income                                                                                       458,942,121.57                 794,918,734.54
      Items attributable to the owners of the parent company                                                          418,444,179.13                 748,512,198.66
      Items attributable to non-controlling shareholders                                                               40,497,942.44                  46,406,535.88
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)                                                                                                   0.13                          0.24
(II) Diluted EPS (yuan per share)                                                                                                0.13                          0.24


Legal representative: Ma Gang                    Officer in charge of accounting: Wang Qingbo         Head of accounting department: Wu Shanshan




                                                                                            118
Infore Environment Technology Group Co., Ltd.
Parent company income statement for the year ended December 31, 2022
(Expressed in Renminbi Yuan)
                                                                                    Note    Current period      Preceding period
                                        Items
                                                                                    No.      cumulative           comparative
I. Operating revenue                                                                 1            818,861.05           487,932.74
Less: Operating cost                                                                 1            818,861.05           487,932.74
     Taxes and surcharges                                                                           24,479.22          227,340.60
     Selling expenses                                                                             188,548.41           562,853.92
     Administrative expenses                                                                   37,210,341.13        24,147,760.09
     R&D expenses
     Financial expenses                                                                       -26,702,758.90       -17,684,273.22
     Including: Interest expenses                                                              17,704,428.72        23,111,838.20
                Interest income                                                               105,355,828.68        83,393,551.31
Add: Other income                                                                                 134,351.98           184,301.81
     Investment income (or less: losses)                                             2        192,483,839.36       697,535,882.88
     Including: Investment income from associates and joint ventures                           25,737,537.83        24,398,494.78
     Gains from derecognition of financial assets at amortized cost
     Gains on net exposure to hedging risk (or less: losses)
     Gains on changes in fair value (or less: losses)                                                              -73,120,883.39
     Credit impairment loss                                                                       304,725.02       -11,011,665.82
     Assets impairment loss
     Gains on asset disposal (or less: losses)
II. Operating profit (or less: losses)                                                        182,202,306.50       606,333,954.09
Add: Non-operating revenue                                                                      1,496,537.14         1,877,643.88
Less: Non-operating expenditures                                                                                        36,656.80
III. Profit before tax (or less: total loss)                                                  183,698,843.64       608,174,941.17
Less: Income tax expenses                                                                                          -32,354,461.28
IV. Net profit (or less: net loss)                                                            183,698,843.64       640,529,402.45
(I) Net profit from continuing operations (or less: net loss)                                 183,698,843.64       640,529,402.45
(II) Net profit from discontinued operations (or less: net loss)
V. Other comprehensive income after tax                                                          -350,000.00        -4,280,000.00
(I) Not to be reclassified subsequently to profit or loss                                        -350,000.00        -4,280,000.00
     1. Remeasurements of the net defined benefit plan
     2. Items under equity method that will not be reclassified to profit or loss
     3. Changes in fair value of other equity instrument investments                             -350,000.00        -4,280,000.00
     4. Changes in fair value of own credit risk
     5. Others
(II) To be reclassified subsequently to profit or loss
     1. Items under equity method that may be reclassified to profit or loss
     2. Changes in fair value of other debt investments
     3. Profit or loss from reclassification of financial assets into other
     comprehensive income
     4. Provision for credit impairment of other debt investments
     5. Cash flow hedging reserve
     6. Translation reserve
     7. Others
VI. Total comprehensive income                                                                183,348,843.64       636,249,402.45
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)

Legal representative: Ma Gang       Officer in charge of accounting: Wang Qingbo      Head of accounting department: Wu Shanshan




                                                                    119
Infore Environment Technology Group Co., Ltd.
Consolidated cash flow statement for the year ended December 31, 2022
(Expressed in Renminbi Yuan)
                                                                                                        Note                             Preceding period
                                               Items                                                         Current period cumulative
                                                                                                        No.                                comparative
I. Cash flows from operating activities:
    Cash receipts from sale of goods or rendering of services                                                       11,979,875,703.49      11,921,988,281.60
    Net increase of client deposit and interbank deposit
    Net increase of central bank loans
    Net increase of loans from other financial institutions
    Cash receipts from original insurance contract premium
    Net cash receipts from reinsurance
    Net increase of policy-holder deposit and investment
    Cash receipts from interest, handling charges and commission
    Net increase of loans from others
    Net increase of repurchase
    Net cash receipts from agency security transaction
    Receipts of tax refund                                                                                             178,294,936.92          26,261,970.67
    Other cash receipts related to operating activities                                                  1           2,097,066,618.34       2,924,238,760.42
        Subtotal of cash inflows from operating activities                                                          14,255,237,258.75      14,872,489,012.69
    Cash payments for goods purchased and services received                                                          7,399,369,111.76       9,223,061,869.14
    Net increase of loans and advances to clients
    Net increase of central bank deposit and interbank deposit
    Cash payments for insurance indemnities of original insurance contracts
    Net increase of loans to others
    Cash payments for interest, handling charges and commission
    Cash payments for policy bonus
    Cash paid to and on behalf of employees                                                                          2,062,334,468.26       1,604,759,059.51
    Cash payments for taxes and rates                                                                                  734,988,426.49         628,578,908.13
    Other cash payments related to operating activities                                                  2           2,396,062,964.53       2,606,870,455.78
        Subtotal of cash outflows from operating activities                                                         12,592,754,971.04      14,063,270,292.56
             Net cash flows from operating activities                                                                1,662,482,287.71         809,218,720.13
II. Cash flows from investing activities:
    Cash receipts from withdrawal of investments                                                                                               56,196,352.10
    Cash receipts from investment income                                                                                24,671,510.32          42,698,349.08
    Net cash receipts from the disposal of fixed assets, intangible assets and other long-term assets                   16,999,998.22          17,760,470.09
    Net cash receipts from the disposal of subsidiaries & other business units                                         115,100,000.00         445,597,313.96
    Other cash receipts related to investing activities                                                  3           5,401,861,000.00       4,850,116,524.23
        Subtotal of cash inflows from investing activities                                                           5,558,632,508.54       5,412,369,009.46
    Cash payments for the acquisition of fixed assets, intangible assets and other long-term assets                  1,083,515,734.97       1,734,581,869.14
    Cash payments for investments                                                                                      130,189,561.55          10,130,000.00
    Net increase of pledged borrowings
    Net cash payments for the acquisition of subsidiaries & other business units                                         83,807,513.74
    Other cash payments related to investing activities                                                  4            5,398,900,000.00      4,789,881,717.72
        Subtotal of cash outflows from investing activities                                                           6,696,412,810.26      6,534,593,586.86
             Net cash flows from investing activities                                                                -1,137,780,301.72     -1,122,224,577.40
III. Cash flows from financing activities:
   Cash receipts from absorbing investments                                                                             57,744,844.02          96,777,104.58
   Including: Cash received by subsidiaries from non-controlling shareholders as investments                            34,345,285.00          17,943,815.00
   Cash receipts from borrowings                                                                                     2,033,074,142.02       2,571,966,000.32
   Other cash receipts related to financing activities                                                   5             290,555,211.59         233,079,996.55
        Subtotal of cash inflows from financing activities                                                           2,381,374,197.63       2,901,823,101.45
   Cash payments for the repayment of borrowings                                                                     1,732,314,139.87       2,180,619,133.00
   Cash payments for distribution of dividends or profits and for interest expenses                                    451,503,767.45         491,122,899.60
   Including: Cash paid by subsidiaries to non-controlling shareholders as dividend or profit                           11,792,867.41             339,454.75
   Other cash payments related to financing activities                                                   6             263,396,824.36         454,152,599.63
        Subtotal of cash outflows from financing activities                                                          2,447,214,731.68       3,125,894,632.23
             Net cash flows from financing activities                                                                  -65,840,534.05        -224,071,530.78
IV. Effect of foreign exchange rate changes on cash & cash equivalents                                                   3,056,908.33          -2,001,825.46
V. Net increase in cash and cash equivalents                                                                           461,918,360.27        -539,079,213.51
   Add: Opening balance of cash and cash equivalents                                                                 4,118,746,885.72       4,657,826,099.23
VI. Closing balance of cash and cash equivalents                                                                     4,580,665,245.99       4,118,746,885.72


Legal representative: Ma Gang              Officer in charge of accounting: Wang Qingbo                   Head of accounting department: Wu Shanshan




                                                                                120
Infore Environment Technology Group Co., Ltd.
Parent company cash flow statement for the year ended December 31, 2022
(Expressed in Renminbi Yuan)
                                                                                                Current period      Preceding period
                                          Items
                                                                                                 cumulative           comparative
I. Cash flows from operating activities:
 Cash receipts from sale of goods and rendering of services                                                                728,741.14
 Receipts of tax refund
 Other cash receipts related to operating activities                                               622,328,508.84     1,467,056,243.50
    Subtotal of cash inflows from operating activities                                             622,328,508.84     1,467,784,984.64
 Cash payments for goods purchased and services received                                                                  1,743,599.35
 Cash paid to and on behalf of employees                                                            20,656,924.48        16,185,831.90
 Cash payments for taxes and rates                                                                      24,479.22           383,530.02
 Other cash payments related to operating activities                                               727,589,122.93     1,235,268,785.97
    Subtotal of cash outflows from operating activities                                            748,270,526.63     1,253,581,747.24
       Net cash flows from operating activities                                                   -125,942,017.79       214,203,237.40
II. Cash flows from investing activities:
  Cash receipts from withdrawal of investments                                                     115,100,000.00       549,259,519.99
  Cash receipts from investment income                                                             221,911,743.60       509,652,357.10
  Net cash receipts from the disposal of fixed assets, intangible assets and other long-
    term assets
  Net cash receipts from the disposal of subsidiaries & other business units
  Other cash receipts related to investing activities                                            1,416,859,323.47     2,165,423,619.03
     Subtotal of cash inflows from investing activities                                          1,753,871,067.07     3,224,335,496.12
  Cash payments for the acquisition of fixed assets, intangible assets and other long-
                                                                                                                           513,101.79
    term assets
  Cash payments for investments                                                                     96,546,250.00       436,550,000.00
  Net cash payments for the acquisition of subsidiaries & other business units
  Other cash payments related to investing activities                                            1,441,321,272.72     3,012,636,177.10
     Subtotal of cash outflows from investing activities                                         1,537,867,522.72     3,449,699,278.89
       Net cash flows from investing activities                                                    216,003,544.35      -225,363,782.77
III. Cash flows from financing activities:
  Cash receipts from absorbing investments                                                          23,399,559.02        78,833,289.58
  Cash receipts from borrowings                                                                     96,200,000.00       650,000,000.00
  Other cash receipts related to financing activities                                              228,995,320.75       580,000,000.00
     Subtotal of cash inflows from financing activities                                            348,594,879.77     1,308,833,289.58
  Cash payments for the repayment of borrowings                                                    155,585,856.00       800,000,000.00
  Cash payments for distribution of dividends or profits and for interest expenses                 340,633,373.24       393,783,090.74
  Other cash payments related to financing activities                                              181,368,993.06       447,594,655.11
     Subtotal of cash outflows from financing activities                                           677,588,222.30     1,641,377,745.85
       Net cash flows from financing activities                                                   -328,993,342.53      -332,544,456.27
IV. Effect of foreign exchange rate changes on cash and cash equivalents
V. Net increase in cash and cash equivalents                                                      -238,931,815.97      -343,705,001.64
Add: Opening balance of cash and cash equivalents                                                  870,283,773.31     1,213,988,774.95
VI. Closing balance of cash and cash equivalents                                                   631,351,957.34       870,283,773.31

Legal representative: Ma Gang      Officer in charge of accounting: Wang Qingbo            Head of accounting department: Wu Shanshan




                                                                   121
Infore Environment Technology Group Co., Ltd.
Consolidated statement of changes in equity for the year ended December 31, 2022
(Expressed in Renminbi Yuan)
                                                                                 Current period cumulative
                                                                                                                                                      Total equit
                                                                Equity attributable to parent company
                                                                                                                                                          y
                                            Other equity instrume
           Items                                                                                                        Gen              Non-cont
                                                      nts                                 Other co
                                                                                 Less:                                  eral             rolling in
                                Share capit Prefe                  Capital res            mprehen Special r Surplus           Undistribut terest
                                                  Perpe                        Treasury s                               risk
                                     al     rred                      erve                sive inco eserve   reserve           ed profit
                                                  tual b Others                  hares                                  reser
                                            share                                            me
                                                                                                                         ve
                                                   onds
                                              s
I. Balance at the end of prior 3,175,734,                 266,929, 9,772,79 455,303,7 -4,280,               296,754,8         3,874,934, 357,221, 17,284,78
year                                760.00                  289.24 5,863.75        77.91 000.00                 83.56             971.69 037.38 7,027.71
Add: Cumulative changes of
   accounting policies
   Error correction of prior pe
   riod
   Business combination und
   er common control
   Others
II. Balance at the beginning o 3,175,734,                 266,929, 9,772,79 455,303,7 -4,280,               296,754,8        3,874,934, 357,221, 17,284,78
f current year                      760.00                  289.24 5,863.75        77.91 000.00                 83.56            971.69 037.38 7,027.71
III. Current period increase 3,770,799.                   -12,947. -110,284, -361,170, -350,00              18,369,88         88,371,91 91,589,6 452,625,6
(or less: decrease)                     00                      44    609.27      982.74      0.00               4.36              8.37    33.51     61.27
(I) Total comprehensive inco                                                               -350,00                           418,794,17 40,497,9 458,942,1
me                                                                                            0.00                                 9.13    42.44     21.57
(II) Capital contributed or wit 3,770,799.                -12,947. -110,284, -361,170,                                                  60,341,2 314,985,4
hdrawn by owners                        00                      44    609.27      982.74                                                   09.93     34.96
1. Ordinary shares contribute 3,761,991.                           -112,538, -361,170,                                                  46,970,6 299,365,5
d by owners                             00                            093.97      982.74                                                   75.00     54.77
2. Capital contributed by hol
                                                          -12,947.
ders of other equity instrume 8,808.00                             66,691.53                                                                          62,552.09
                                                                44
nts
3. Amount of share-based pa                                         3,868,55                                                             170,516. 4,039,069.
yment included in equity                                                 2.56                                                                  82         38
                                                                   -1,681,75                                                             13,200,0 11,518,25
4. Others
                                                                         9.39                                                               18.11       8.72
                                                                                                            18,369,88         -330,422,2 -9,249,5 -321,301,8
(III) Profit distribution
                                                                                                                 4.36              60.76    18.86      95.26
1. Appropriation of surplus re                                                                              18,369,88         -18,369,88
serve                                                                                                            4.36               4.36
2. Appropriation of general ri
sk reserve
3. Appropriation of profit to                                                                                                 -312,052,3 -9,249,5 -321,301,8
owners                                                                                                                             76.40    18.86      95.26
4. Others
(IV) Internal carry-over withi
n equity
1. Transfer of capital reserve
to capital
2. Transfer of surplus reserve
 to capital
3. Surplus reserve to cover lo
sses
4. Changes in defined benefit
 plan carried over to retained
earnings
5. Other comprehensive inco
me carried over to retained ea
rnings
6. Others
(V) Special reserve
1. Current period appropriati                                                                      8,693,98                                           8,693,981.
on                                                                                                     1.54                                                   54
                                                                                                   -8,693,9                                            -8,693,98
2. Current period use
                                                                                                      81.54                                                 1.54
(VI) Others
IV. Balance at the end of curr 3,179,505,                 266,916, 9,662,51 94,132,79 -4,630,               315,124,7         3,963,306, 448,810, 17,737,41
ent period                          559.00                  341.80 1,254.48         5.17 000.00                 67.92             890.06 670.89 2,688.98
Legal representative: Ma Gang            Officer in charge of accounting: Wang Qingbo                Head of accounting department: Wu Shanshan

                                                                            122
Infore Environment Technology Group Co., Ltd.
Consolidated statement of changes in equity for the year ended December 31, 2022 (continued)
(Expressed in Renminbi Yuan)
                                                                                   Preceding period comparative
                                                                                                                                         Non-contr
                                                                                                                                                     Total equit
                                                                 Equity attributable to parent company                                   olling inte
                                                                                                                                                         y
                                                                                                                                             rest
             Items                         Other equity instrume                                                      Gen
                                                      nts                                   Other co
                                                                                   Less:                              eral
                                Share capi                        Capital rese              mprehen Special r Surplus       Undistribu
                                    tal    Prefe Perpe                rve
                                                                                 Treasury s
                                                                                            sive inco eserve  reserve
                                                                                                                      risk
                                                                                                                            ted profit
                                           rred stual b Others                     hares
                                                                                               me
                                                                                                                      reser
                                           hares onds                                                                  ve
I. Balance at the end of prior 3,163,06                 266,939,8 9,707,741,      8,920,59                       232,701,9    3,558,68 350,806,0 17,271,02
year                             2,146.00                   31.65     876.49          7.83                           43.56    8,885.55     96.48 0,181.90
Add: Cumulative changes of
   accounting policies
   Error correction of prior pe
   riod
   Business combination und
   er common control
   Others
II. Balance at the beginning o 3,163,06                 266,939,8 9,707,741,      8,920,59                       232,701,9    3,558,68 350,806,0 17,271,02
f current year                   2,146.00                   31.65     876.49          7.83                           43.56    8,885.55     96.48 0,181.90
III. Current period increase 12,672,61                  -10,542.4 65,053,98      446,383,1 -4,280,0              64,052,94   316,246,0 6,414,94 13,766,84
(or less: decrease)                   4.00                      1        7.26        80.08    00.00                   0.00       86.14      0.90       5.81
(I) Total comprehensive inco                                                               -4,280,0                          752,792,1 46,406,53 794,918,7
me                                                                                            00.00                              98.66      5.88      34.54
(II) Capital contributed or wit 12,672,61               -10,542.4 65,053,98      446,383,1                                             -39,652,1 -408,319,2
hdrawn by owners                      4.00                      1        7.26        80.08                                                 40.23      61.46
1. Ordinary shares contribute 12,665,58                            66,167,70                                                           17,943,81 96,777,10
d by owners                           9.00                               0.58                                                               5.00       4.58
2. Capital contributed by hol
                                                        -10,542.4
ders of other equity instrume 7,025.00                             52,079.08                                                                         48,561.67
                                                                1
nts
3. Amount of share-based pa                                        10,348,24                                                           388,939.6 10,737,18
yment included in equity                                                 2.29                                                                  3       1.92
                                                                  -11,514,03     446,383,1                                             -57,984,8 -515,882,1
4. Others
                                                                         4.69        80.08                                                 94.86      09.63
                                                                                                                 64,052,94   -436,546, -339,454. -372,832,6
(III) Profit distribution
                                                                                                                      0.00      112.52        75      27.27
1. Appropriation of surplus r                                                                                    64,052,94   -64,052,9
eserve                                                                                                                0.00       40.00
2. Appropriation of general ri
sk reserve
3. Appropriation of profit to                                                                                                -372,493, -339,454. -372,832,6
owners                                                                                                                          172.52       75       27.27
4. Others
(IV) Internal carry-over withi
n equity
1. Transfer of capital reserve
to capital
2. Transfer of surplus reserve
 to capital
3. Surplus reserve to cover lo
sses
4. Changes in defined benefit
 plan carried over to retained
earnings
5. Other comprehensive inco
me carried over to retained e
arnings
6. Others
(V) Special reserve
1. Current period appropriati                                                                         7,434,02                                      7,434,025.
on                                                                                                        5.58                                              58
                                                                                                      -7,434,0                                       -7,434,02
2. Current period use
                                                                                                         25.58                                            5.58
(VI) Others
IV. Balance at the end of curr 3,175,73               266,929,2 9,772,795, 455,303,7 -4,280,0                    296,754,8    3,874,93 357,221,0 17,284,78
ent period                     4,760.00                   89.24     863.75     77.91    00.00                        83.56    4,971.69     37.38 7,027.71
Legal representative: Ma Gang             Officer in charge of accounting: Wang Qingbo                   Head of accounting department: Wu Shanshan

                                                                                 123
Infore Environment Technology Group Co., Ltd.
Parent company statement of changes in equity for the year ended December 31, 2022
(Expressed in Renminbi Yuan)
                                                                                  Current period cumulative
                                                   Other equity instruments                                      Spec
                Items                                                                                   Other co
                                    Share capital Preferr Perpetu
                                                                             Capital reser Less: Treas           ial re Surplus res   Undistribute
                                                                                                       mprehensi                                   Total equity
                                                  ed shar al bond Others          ve       ury shares
                                                                                                       ve income
                                                                                                                 serve     erve         d profit
                                                    es        s
                                     3,175,734,7                   266,929,2 15,433,256, 455,303,7 -4,280,0             262,534,4     706,488,30    19,385,35
I. Balance at the end of prior year
                                           60.00                       89.24      911.67       77.91       00.00             94.14          2.65     9,979.79
Add: Cumulative changes of acc
ounting policies
Error correction of prior period
Others
II. Balance at the beginning of cu 3,175,734,7                     266,929,2 15,433,256, 455,303,7 -4,280,0             262,534,4     706,488,30 19,385,35
rrent year                                 60.00                       89.24      911.67       77.91       00.00             94.14          2.65   9,979.79
III. Current period increase (or le 3,770,799.0                    -12,947.4 -108,602,84 -361,170, -350,00              18,369,88     -146,723,4 127,622,45
ss: decrease)                                  0                           4         9.88     982.74        0.00              4.36         17.12       1.66
                                                                                                        -350,00                       183,698,84 183,348,84
(I) Total comprehensive income
                                                                                                            0.00                            3.64       3.64
(II) Capital contributed or withdr 3,770,799.0                     -12,947.4 -108,602,84 -361,170,                                               256,325,98
awn by owners                                  0                           4         9.88     982.74                                                   4.42
1. Ordinary shares contributed by 3,761,991.0                                -112,538,09 -361,170,                                               252,394,87
 owners                                        0                                     3.97     982.74                                                   9.77
2. Capital contributed by holders                                  -12,947.4
                                        8,808.00                               66,691.53                                                            62,552.09
of other equity instruments                                                4
3. Amount of share-based payme                                               3,868,552.5                                                           3,868,552.
nt included in equity                                                                   6                                                                 56
4. Others
                                                                                                                        18,369,88     -330,422,2 -312,052,3
(III) Profit distribution
                                                                                                                              4.36         60.76      76.40
1. Appropriation of surplus reser                                                                                       18,369,88     -18,369,88
ve                                                                                                                            4.36          4.36
2. Appropriation of profit to own                                                                                                     -312,052,3 -312,052,3
ers                                                                                                                                        76.40      76.40
3. Others
(IV) Internal carry-over within eq
uity
1. Transfer of capital reserve to c
apital
2. Transfer of surplus reserve to c
apital
3. Surplus reserve to cover losses
4. Changes in defined benefit pla
n carried over to retained earning
s
5. Other comprehensive income c
arried over to retained earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current    3,179,505,5                   266,916,3 15,324,654, 94,132,79 -4,630,0             280,904,3     559,764,88    19,512,98
period                                     59.00                       41.80      061.79         5.17      00.00             78.50          5.53     2,431.45

Legal representative: Ma Gang           Officer in charge of accounting: Wang Qingbo                Head of accounting department: Wu Shanshan




                                                                            124
Infore Environment Technology Group Co., Ltd.
Parent company statement of changes in equity for the year ended December 31, 2022 (continued)
(Expressed in Renminbi Yuan)
                                                                                   Preceding period comparative
                                                     Other equity instruments                             Other co Spec
                Items                                Prefer Perpet            Capital reserv Less: Trea mprehens ial re Surplus res Undistribute
                                       Share capital                                                                                             Total equity
                                                     red sh ual bo Others           e        sury shares ive incom serve   erve       d profit
                                                      ares nds                                                e
                                        3,163,062,1                 266,939,8 15,356,688,8 8,920,59                      198,481,5 502,505,01 19,478,756,
I. Balance at the end of prior year
                                              46.00                     31.65        89.72         7.83                      54.14         2.72      836.40
Add: Cumulative changes of accou
nting policies
      Error correction of prior period
      Others
II. Balance at the beginning of curre 3,163,062,1                  266,939,8 15,356,688,8 8,920,59                       198,481,5 502,505,01 19,478,756,
nt year                                     46.00                      31.65        89.72      7.83                          54.14       2.72     836.40
III. Current period increase (or less: 12,672,614.                           76,568,021.9 446,383,1 -4,280,0             64,052,94 203,983,28 -93,396,85
                                                                  -10,542.41
 decrease)                                     00                                       5     80.08    00.00                  0.00       9.93        6.61
                                                                                                    -4,280,0                       640,529,40 636,249,40
(I) Total comprehensive income
                                                                                                       00.00                             2.45        2.45
(II) Capital contributed or withdraw 12,672,614.                             76,568,021.9 446,383,1                                            -357,153,0
                                                                  -10,542.41
n by owners                                   00                                        5     80.08                                                 86.54
1. Ordinary shares contributed by o 12,665,589.                              66,167,700.5 446,383,1                                            -367,549,8
wners                                         00                                        8     80.08                                                 90.50
2. Capital contributed by holders of
                                        7,025.00                  -10,542.41     52,079.08                                                        48,561.67
 other equity instruments
3. Amount of share-based payment                                               10,348,242.2                                                     10,348,242.
included in equity                                                                        9                                                             29
4. Others
                                                                                                                         64,052,94 -436,546,1    -372,493,1
(III) Profit distribution
                                                                                                                              0.00      12.52         72.52
                                                                                                                         64,052,94 -64,052,94
1. Appropriation of surplus reserve
                                                                                                                              0.00       0.00
                                                                                                                                   -372,493,1    -372,493,1
2. Appropriation of profit to owners
                                                                                                                                        72.52         72.52
3. Others
(IV) Internal carry-over within equi
ty
1. Transfer of capital reserve to capi
tal
2. Transfer of surplus reserve to cap
ital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan c
arried over to retained earnings
5. Other comprehensive income car
ried over to retained earnings
6. Others
(V) Special reserve
1. Current period appropriation
2. Current period use
(VI) Others
IV. Balance at the end of current pe 3,175,734,7                   266,929,2 15,433,256,9 455,303,7 -4,280,0             262,534,4 706,488,30 19,385,359,
riod                                       60.00                       89.24        11.67     77.91    00.00                 94.14       2.65     979.79
Legal representative: Ma Gang              Officer in charge of accounting: Wang Qingbo              Head of accounting department: Wu Shanshan




                                                                               125
                                  Infore Environment Technology Group Co., Ltd.
                                               Notes to Financial Statements
                                             For the year ended December 31, 2022

                                                                                                         Monetary unit: RMB Yuan
I. Company profile
     Infore Environment Technology Group Co., Ltd. (the “Company”), formerly known as Zhejiang Shangfeng Industrial Co., Ltd.,
was registered at Zhejiang Administration for Industry and Commerce on November 18, 1993. Under the approval of Zhejiang Share
System Pilot Work Coordination Group with document of approval numbered Zhe Gu [1993] 51, the Company was established by
Zhejiang Fan Air Cooling Equipment Co., Ltd., the main initiator, and Shangyu Fan Factory and Shaoxing Fluid Engineering
Research Institute, the joint initiators, through targeted fundraising. It is headquartered in Shaoxing City, Zhejiang Province. The
Company currently holds a business license with unified social credit code of 913300006096799222. As of December 31, 2022, it
has registered capital of 3,179,474,144.00 yuan, and total share capital of 3,179,505,559.00 yuan. The difference between the
registered capital and share capital is because the change related to new share capital has not been registered at the administration for
industry and commerce. According to the records in China Securities Depository and Clearing Corporation Limited, as of December
31, 2022, the Company has restricted outstanding shares of 1,838,140 shares, and unrestricted outstanding shares of 3,177,667,419
shares, totaling 3,179,505,559 shares. The Company’s shares were listed on the Shenzhen Stock Exchange on March 30, 2000.
     The Company belongs to the ecological protection and environmental management industry. The main business activities
include R&D, maintenance and operation services of environmental monitoring instruments and environmental protection
equipment, environmental treatment technology development, consulting and services, operation services of environmental treatment
facilities, environmental engineering, environmental protection engineering, urban engineering, sale of ventilators, air-cooling, and
water-cooling and air-conditioning equipment, etc. Its revenue is mainly from sales of environmental and sanitation machinery,
ventilation equipment, and sanitation operation service.
     The financial statements were approved and authorized for issue by the second meeting of the tenth session of the Board of
Directors dated April 24, 2023.
     The Company has brought 247 subsidiaries including Changsha Zoomlion Environmental Industry Co., Ltd. (the “Zoomlion
Environmental Company”), Zhejiang Shangfeng Special Blower Industrial Co., Ltd. (the “Shangfeng Industrial Company”),
Guangdong Infore Technology Co., Ltd. (the “Infore Technology Company”) and Shenzhen Green Oriental Environmental Protection
Co., Ltd. (the “Green Oriental Company”) into the consolidation scope. Please refer to section VI and VII of notes to the financial
statements for details.


II. Preparation basis of the financial statements
     (I) Preparation basis
     The financial statements have been prepared on the basis of going concern.
     (II) Assessment of the ability to continue as a going concern
     The Company has no events or conditions that may cast significant doubts upon the Company’s ability to continue as a going
concern within the 12 months after the balance sheet date.


III. Significant accounting policies and estimates
     Important note: The Company has set up accounting policies and estimates on transactions or events such as impairment of
financial instruments, depreciation of fixed assets, depreciation of right-of-use assets, amortization of intangible assets, revenue
recognition, etc., based on the Company’s actual production and operation features.
     (I) Statement of compliance
     The financial statements have been prepared in accordance with the requirements of China Accounting Standards for Business

                                                                  126
Enterprises (CASBEs), and present truly and completely the financial position, financial performance and cash flows of the
Company.
     (II) Accounting period
     The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
     (III) Operating cycle
     The Company has a relatively short operating cycle for its business, an asset or a liability is classified as current if it is expected
to be realized or due within 12 months.
     (IV) Functional currency
     The Company’s functional currency is Renminbi (RMB) Yuan.
     (V) Accounting treatments of business combination under and not under common control
     1. Accounting treatment of business combination under common control
     Assets and liabilities arising from business combination are measured at carrying amount of the combined party included in the
consolidated financial statements of the ultimate controlling party at the combination date. Difference between carrying amount of
the equity of the combined party included in the consolidated financial statements of the ultimate controlling party and that of the
combination consideration or total par value of shares issued is adjusted to capital reserve, if the balance of capital reserve is
insufficient to offset, any excess is adjusted to retained earnings.
     2. Accounting treatment of business combination not under common control
     When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the acquisition date,
the excess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilities and contingent liabilities, and the
measurement of the combination cost are reviewed, then the difference is recognized in profit or loss.
     (VI) Compilation method of consolidated financial statements
     The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidated financial statements are
compiled by the parent company according to “CASBE 33 – Consolidated Financial Statements”, based on relevant information and
the financial statements of the parent company and its subsidiaries.
     (VII) Classification of joint arrangements and accounting treatment of joint operations
     1. Joint arrangements include joint operations and joint ventures.
     2. When the Company is a joint operator of a joint operation, it recognizes the following items in relation to its interest in a joint
operation:
     (1) its assets, including its share of any assets held jointly;
     (2) its liabilities, including its share of any liabilities incurred jointly;
     (3) its revenue from the sale of its share of the output arising from the joint operation;
     (4) its share of the revenue from the sale of the assets by the joint operation; and
     (5) its expenses, including its share of any expenses incurred jointly.
     (VIII) Recognition criteria of cash and cash equivalents
     Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash equivalents refer to
short-term, highly liquid investments that can be readily converted to cash and that are subject to an insignificant risk of changes in
value.
     (IX) Foreign currency translation
     1. Translation of transactions denominated in foreign currency
     Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate at the transaction date at
initial recognition. At the balance sheet date, monetary items denominated in foreign currency are translated at the spot exchange rate
at the balance sheet date with difference, except for those arising from the principal and interest of exclusive borrowings eligible for
capitalization, included in profit or loss; non-cash items carried at historical costs are translated at the spot exchange rate at the
transaction date, with the RMB amounts unchanged; non-cash items carried at fair value in foreign currency are translated at the spot
exchange rate at the date when the fair value was determined, with difference included in profit or loss or other comprehensive

                                                                       127
income.
     2. Translation of financial statements measured in foreign currency
     The assets and liabilities in the balance sheet are translated into RMB at the spot exchange rate at the balance sheet date; the
equity items, other than undistributed profit, are translated at the spot exchange rate at the transaction date; the revenues and expenses
in the income statement are translated into RMB at the spot exchange rate at the transaction date. The difference arising from the
aforementioned foreign currency translation is included in other comprehensive income.
     (X) Financial instruments
     1. Classification of financial assets and financial liabilities
     Financial assets are classified into the following three categories when initially recognized: (1) financial assets at amortized
cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets at fair value through profit or loss.
     Financial liabilities are classified into the following four categories when initially recognized: (1) financial liabilities at fair
value through profit or loss; (2) financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or
when the continuing involvement approach applies; (3) financial guarantee contracts not fall within the above categories (1) and (2),
and commitments to provide a loan at a below-market interest rate, which do not fall within the above category (1); (4) financial
liabilities at amortized cost.
     2. Recognition criteria, measurement method and derecognition condition of financial assets and financial liabilities
     (1) Recognition criteria and measurement method of financial assets and financial liabilities
     When the Company becomes a party to a financial instrument, it is recognized as a financial asset or financial liability. The
financial assets and financial liabilities initially recognized by the Company are measured at fair value; for the financial assets and
liabilities at fair value through profit or loss, the transaction expenses thereof are directly included in profit or loss; for other
categories of financial assets and financial liabilities, the transaction expenses thereof are included into the initially recognized
amount. However, at initial recognition, for accounts receivable that do not contain a significant financing component or in
circumstances where the Company does not consider the financing components in contracts within one year, they are measured at the
transaction price in accordance with “CASBE 14 – Revenues”.
     (2) Subsequent measurement of financial assets
     1) Financial assets measured at amortized cost
     The Company measures its financial assets at the amortized costs using effective interest method. Gains or losses on financial
assets that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss when the
financial assets are derecognized, reclassified, amortized using effective interest method or recognized with impairment loss.
     2) Debt instrument investments at fair value through other comprehensive income
     The Company measures its debt instrument investments at fair value. Interests, impairment gains or losses, and gains and losses
on foreign exchange that calculated using effective interest method shall be included into profit or loss, while other gains or losses
are included into other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive income
should be transferred out into profit or loss when the financial assets are derecognized.
     3) Equity instrument investments at fair value through other comprehensive income
     The Company measures its equity instrument investments at fair value. Dividends obtained (other than those as part of
investment cost recovery) shall be included into profit or loss, while other gains or losses are included into other comprehensive
income. Accumulated gains or losses that initially recognized as other comprehensive income should be transferred out into retained
earnings when the financial assets are derecognized.
     4) Financial assets at fair value through profit or loss
     The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value (including interests
and dividends) shall be included into profit or loss, except for financial assets that are part of hedging relationships.
     (3) Subsequent measurement of financial liabilities
     1) Financial liabilities at fair value through profit or loss
     Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including derivatives that are

                                                                       128
liabilities) and financial liabilities designated as at fair value through profit or loss. The Company measures such kind of liabilities at
fair value. The amount of changes in the fair value of the financial liabilities that are attributable to changes in the Company’s own
credit risk shall be included into other comprehensive income, unless such treatment would create or enlarge accounting mismatches
in profit or loss. Other gains or losses on those financial liabilities (including interests, changes in fair value that are attributable to
reasons other than changes in the Company’s own credit risk) shall be included into profit or loss, except for financial liabilities that
are part of hedging relationships. Accumulated gains or losses that originally recognized as other comprehensive income should be
transferred out into retained earnings when the financial liabilities are derecognized.
     2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing
involvement approach applies
     The Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial Assets”.
     3) Financial guarantee contracts not fall within the above categories 1) and 2), and commitments to provide a loan at a below-
market interest rate, which do not fall within the above category 1)
     The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordance with impairment
requirements of financial instruments; b. the amount initially recognized less the amount of accumulated amortization recognized in
accordance with “CASBE 14 – Revenues”.
     4) Financial liabilities at amortized cost
     The Company measures its financial liabilities at amortized cost using effective interest method. Gains or losses on financial
liabilities that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss when the
financial liabilities are derecognized and amortized using effective interest method.
     (4) Derecognition of financial assets and financial liabilities
     1) Financial assets are derecognized when:
     a. the contractual rights to the cash flows from the financial assets expire; or
     b. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with “CASBE 23 –
Transfer of Financial Assets”.
     2) Only when the underlying present obligations of a financial liability are relieved totally or partly may the financial liability be
derecognized accordingly.
     3. Recognition criteria and measurement method of financial assets transfer
     Where the Company has transferred substantially all of the risks and rewards related to the ownership of the financial asset, it
derecognizes the financial asset, and any right or liability arising from such transfer is recognized independently as an asset or a
liability. If it retained substantially all of the risks and rewards related to the ownership of the financial asset, it continues recognizing
the financial asset. Where the Company does not transfer or retain substantially all of the risks and rewards related to the ownership
of a financial asset, it is dealt with according to the circumstances as follows respectively: (1) if the Company does not retain its
control over the financial asset, it derecognizes the financial asset, and any right or liability arising from such transfer is recognized
independently as an asset or a liability; (2) if the Company retains its control over the financial asset, according to the extent of its
continuing involvement in the transferred financial asset, it recognizes the related financial asset and recognizes the relevant liability
accordingly.
     If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts of the
following two items is included in profit or loss: (1) the carrying amount of the transferred financial asset as of the date of
derecognition; (2) the sum of consideration received from the transfer of the financial asset, and the accumulative amount of the
changes of the fair value originally included in other comprehensive income proportionate to the transferred financial asset (financial
assets transferred refer to debt instrument investments at fair value through other comprehensive income). If the transfer of financial
asset partially satisfies the conditions to derecognition, the entire carrying amount of the transferred financial asset is, between the
portion which is derecognized and the portion which is not, apportioned according to their respective relative fair value, and the
difference between the amounts of the following two items is included into profit or loss: (1) the carrying amount of the portion
which is derecognized; (2) the sum of consideration of the portion which is derecognized, and the portion of the accumulative

                                                                     129
amount of the changes in the fair value originally included in other comprehensive income which is corresponding to the portion
which is derecognized (financial assets transferred refer to debt instrument investments at fair value through other comprehensive
income).
     4. Fair value determination method of financial assets and liabilities
     The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data and information
are available to measure fair value. The inputs to valuation techniques used to measure fair value are arranged in the following
hierarchy and used accordingly:
     (1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at
the measurement date;
     (2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for
identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset
or liability, for example, interest rates and yield curves observable at commonly quoted intervals; market-corroborated inputs;
     (3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not observable and
cannot be corroborated by observable market data at commonly quoted intervals, historical volatility, future cash flows to be paid to
fulfill the disposal obligation assumed in business combination, financial forecast developed using the Company’s own data, etc.
     5. Impairment of financial instruments
     (1) Measurement and accounting treatment
     The Company, on the basis of expected credit loss, recognizes loss allowances of financial assets at amortized cost, debt
instrument investments at fair value through other comprehensive income, contract assets, leases receivable, loan commitments other
than financial liabilities at fair value through profit or loss, financial guarantee contracts not belong to financial liabilities at fair value
through profit or loss or financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when
the continuing involvement approach applies.
     Expected credit losses refer to the weighted average of credit losses with the respective risks of a default occurring as the
weights. Credit loss refers to the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective
interest rate. Among which, purchased or originated credit-impaired financial assets are discounted at the credit-adjusted effective
interest rate.
     At the balance sheet date, the Company shall only recognize the cumulative changes in the lifetime expected credit losses since
initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.
     For leases receivable, and accounts receivable and contract assets resulting from transactions regulated in “CASBE 14 –
Revenues”, the Company chooses simplified approach to measure the loss allowance at an amount equal to lifetime expected credit
losses.
     For financial assets other than the above, on each balance sheet date, the Company shall assess whether the credit risk on the
financial instrument has increased significantly since initial recognition. The Company shall measure the loss allowance for the
financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has
increased significantly since initial recognition; otherwise, the Company shall measure the loss allowance for that financial
instrument at an amount equal to 12-month expected credit loss.
     Considering reasonable and supportable forward-looking information, the Company compares the risk of a default occurring on
the financial instrument as at the balance sheet date with the risk of a default occurring on the financial instrument as at the date of
initial recognition, so as to assess whether the credit risk on the financial instrument has increased significantly since initial
recognition.
     The Company may assume that the credit risk on a financial instrument has not increased significantly since initial recognition if
the financial instrument is determined to have relatively low credit risk at the balance sheet date.
     The Company shall estimate expected credit risk and measure expected credit losses on an individual or a collective basis. When

                                                                     130
the Company adopts the collective basis, financial instruments are grouped with similar credit risk features.
     The Company shall remeasure expected credit loss on each balance sheet date, and increased or reversed amounts of loss
allowance arising therefrom shall be included into profit or loss as impairment losses or gains. For a financial asset measured at
amortized cost, the loss allowance reduces the carrying amount of such financial asset presented in the balance sheet; for a debt
investment measured at fair value through other comprehensive income, the loss allowance shall be recognized in other
comprehensive income and shall not reduce the carrying amount of such financial asset.
     (2) Financial instruments with expected credit risk assessed on a collective basis and expected credit losses measured using
three-stage model
                                                        Basis for determination of
  Items                                                                                    Method for measuring expected credit loss
                                                                 portfolio
                                                                                       Based on historical credit loss experience,
                                                                                       the current situation and the forecast of
Other receivables – Portfolio grouped with
                                                  Balances due from related parties    future economic conditions, the Company
balances due from related parties within the
                                                    within the consolidation scope     calculates expected credit loss through
consolidation scope
                                                                                       exposure at default and 12-month or lifetime
                                                                                       expected credit loss rate.
                                                                                       Based on historical credit loss experience,
                                                                                       the current situation and the forecast of
Other receivables – Portfolio grouped with                                            future economic conditions, the Company
                                                        Nature of the balance
performance compensations                                                              calculates expected credit loss through
                                                                                       exposure at default and 12-month or lifetime
                                                                                       expected credit loss rate.
                                                                                       Based on historical credit loss experience,
                                                                                       the current situation and the forecast of
                                                                                       future economic conditions, the Company
Other receivables – Portfolio grouped with ages                 Ages
                                                                                       calculates expected credit loss through
                                                                                       exposure at default and 12-month or lifetime
                                                                                       expected credit loss rate.
                                                                                       Expected credit loss rates are calculated
Long-term receivables – Portfolio grouped with
                                                                                       based on five-level classification of credit
finance lease payment/ Long-term receivables –
                                                                                       assets of non-bank financial institutions:
Portfolio grouped with receivables financing
                                                        Nature of the balance          1.5% for pass category, 3% for special-
factoring payment /Accounts receivable –
                                                                                       mention category, 30% for substandard
Portfolio grouped with commercial factoring
                                                                                       category, 60% for doubtful category, and
payment
                                                                                       100% for loss category
     (3) Accounts receivable and contract assets with expected credit losses measured on a collective basis using simplified approach
     1) Specific portfolios and method for measuring expected credit loss
                                                        Basis for determination of         Method for measuring expected credit loss
  Items
                                                                 portfolio
                                                                                         Based on historical credit loss experience,
                                                                                         the current situation and the forecast of
Bank acceptance receivable                                                               future economic conditions, the Company
                                                              Type of notes
                                                                                         calculates expected credit loss through
                                                                                         exposure at default and lifetime expected
Trade acceptance receivable                                                              credit loss rate.
                                                                                         Based on historical credit loss experience,
                                                                                         the current situation and the forecast of
Accounts receivable – Portfolio grouped with
                                                    Balances due from related parties    future economic conditions, the Company
balances due from related parties within the
                                                     within the consolidation scope      calculates expected credit loss through
consolidation scope
                                                                                         exposure at default and lifetime expected
                                                                                         credit loss rate.
                                                                                         Based on historical credit loss experience,
                                                                                         the current situation and the forecast of
                                                                                         future economic conditions, the Company
Accounts receivable – Portfolio grouped with
                                                                  Ages                   prepares the comparison table of overdue
ages
                                                                                         days/ages and lifetime expected credit loss
                                                                                         rate of accounts receivable, so as to calculate
                                                                                         expected credit loss.
                                                                                         Based on historical credit loss experience,
Accounts receivable – Portfolio grouped with
                                                          Nature of the balance          the current situation and the forecast of
government subsidies for new energy vehicles
                                                                                         future economic conditions, the Company


                                                                 131
                                                             Basis for determination of       Method for measuring expected credit loss
   Items
                                                                      portfolio
                                                                                         prepares the comparison table of overdue
                                                                                         days/ages and lifetime expected credit loss
                                                                                         rate of accounts receivable, so as to calculate
                                                                                         expected credit loss.
                                                                                         Based on historical credit loss experience,
                                                                                         the current situation and the forecast of
Contract assets – Portfolio grouped with                                                future economic conditions, the Company
                                                         Nature of the balance
warranty reserve                                                                         calculates expected credit loss through
                                                                                         exposure at default and lifetime expected
                                                                                         credit loss rate.
                                                                                         For long-term receivables within the credit
                                                                                         period that has not reached the contractual
                                                                                         payment deadline, provision for bad debts is
Long-term receivables – Portfolio grouped with                                          accrued at 5% of the balance. For long-term
                                                         Nature of the balance
ages                                                                                     receivables that have exceeded the
                                                                                         contractual payment deadline and have not
                                                                                         yet been paid, provision for bad debts is
                                                                                         accrued based on the age of the balance.
     2)Accounts receivable – comparison table of ages and lifetime expected credit loss rate of portfolio grouped with ages
     a. Parent company

  Ages                                                                           Expected credit loss rate of accounts receivable (%)

1-180 days (inclusive, the same hereinafter)                                                             0

180 days - 1 year                                                                                         2

1-2 years                                                                                                10

2-3 years                                                                                                30

3-5 years                                                                                                50

Over 5 years                                                                                             80
     b. Ventilation equipment manufacturing industry and environmental integrated industry

  Ages                                                                             Expected credit loss rate of accounts receivable (%)

Within 1 year (inclusive, the same hereinafter)                                                          5

1-2 years                                                                                                10

2-3 years                                                                                                30

3-5 years                                                                                                50

Over 5 years                                                                                            100
     6. Offsetting financial assets and financial liabilities
     Financial assets and financial liabilities are presented separately in the balance sheet and are not offset. However, the Company
offsets a financial asset and a financial liability and presents the net amount in the balance sheet when, and only when, the Company:
(1) currently has a legally enforceable right to set off the recognized amounts; and (2) intends either to settle on a net basis, or to
realize the asset and settle the liability simultaneously.
     For a transfer of a financial asset that does not qualify for derecognition, the Company does not offset the transferred asset and
the associated liability.
     (XI) Inventories
     1. Classification of inventories
     Inventories include finished goods or goods held for sale in the ordinary course of business, work in process in the process of
production, materials, supplies, etc. to be consumed in the production process or in the rendering of services.
     2. Accounting method for dispatching inventories:


                                                                      132
     Inventories dispatched from storage are accounted for with weighted average method.
     3. Basis for determining net realizable value
     At the balance sheet date, inventories are measured at the lower of cost and net realizable value; provisions for inventory write-
down are made on the excess of its cost over the net realizable value. The net realizable value of inventories held for sale is
determined based on the amount of the estimated selling price less the estimated selling expenses and relevant taxes and surcharges
in the ordinary course of business; the net realizable value of inventories to be processed is determined based on the amount of the
estimated selling price less the estimated costs of completion, selling expenses and relevant taxes and surcharges in the ordinary
course of business; at the balance sheet date, when only part of the same item of inventories have agreed price, their net realizable
value are determined separately and are compared with their costs to set the provision for inventory write-down to be made or
reversed.
     4. Inventory system
     Perpetual inventory method is adopted.
     5. Amortization method of low-value consumables and packages
     (1) Low-value consumables
     Low-value consumables are amortized with one-off method.
     (2) Packages
     Packages are amortized with one-off method.
     (XII) Contract costs
     Assets related to contract costs include costs of obtaining a contract and costs to fulfil a contract.
     The Company recognizes as an asset the incremental costs of obtaining a contract if those costs are expected to be recovered.
     If the costs incurred in fulfilling a contract are not within the scope of standards related to inventories, fixed assets or intangible
assets, etc., the Company shall recognize the costs to fulfil a contract as an asset if all the following criteria are satisfied:
     1. The costs relate directly to a contract or to an anticipated contract, including direct labor, direct materials, manufacturing
overhead cost (or similar cost), cost that are explicitly chargeable to the customer under the contract, and other costs that are only
related to the contract;
     2. The costs enhance resources of the Company that will be used in satisfying performance obligations in the future; and
     3. The costs are expected to be recovered.
     An asset related to contract costs shall be amortized on a systematic basis that is consistent with related goods or services, with
amortization included into profit or loss.
     The Company shall make provision for impairment and recognize an impairment loss to the extent that the carrying amount of
an asset related to contract costs exceeds the remaining amount of consideration that the Company expects to receive in exchange for
the goods or services to which the asset relates less the costs expected to be incurred. The Company shall recognize a reversal of an
impairment loss previously recognized in profit or loss when the impairment conditions no longer exist or have improved. The
carrying amount of the asset after the reversal shall not exceed the amount that would have been determined on the reversal date if no
provision for impairment had been made previously.
      (XIII) Non-current assets or disposal groups held for sale
     1. Classification of non-current assets or disposal groups held for sale
     Non-current assets or disposal groups are accounted for as held for sale when the following conditions are all met: (1) the asset
must be available for immediate sale in its present condition subject to terms that are usual and customary for sales of such assets or
disposal groups; (2) its sales must be highly probable, i.e., the Company has made a decision on the sale plan and has obtained a firm
purchase commitment, and the sale is expected to be completed within one year.
     When the Company acquires a non-current asset or disposal group with a view to resale, it shall classify the non-current asset or
disposal group as held for sale at the acquisition date only if the requirement of “expected to be completed within one year” is met at
that date and it is highly probable that other criteria for held for sale will be met within a short period (usually within three months).
     An asset or a disposal group is still accounted for as held for sale when the Company remains committed to its plan to sell the

                                                                     133
asset or disposal group in the circumstance that non-related party transactions fail to be completed within one year due to one of the
following reasons: (1) a buyer or others unexpectedly set conditions that will extend the sale period, while the Company has taken
timely actions to respond to the conditions and expects a favorable resolution of the delaying factors within one year since the
setting; (2) a non-current asset or disposal group classified as held for sale fails to be sold within one year due to rare cases, and the
Company has taken action necessary to respond to the circumstances during the initial one-year period and the criteria for held for
sale are met.
     2. Measurement of non-current assets or disposal groups held for sale
     (1) Initial measurement and subsequent measurement
     For initial measurement and subsequent measurement as at the balance sheet date of a non-current asset or disposal group held
for sale, where the carrying amount is higher than the fair value less costs to sell, the carrying amount is written down to the fair
value less costs to sell, and the write-down is recognized in profit or loss as assets impairment loss, meanwhile, provision for
impairment of assets held for sale shall be made.
     For a non-current asset or disposal group classified as held for sale at the acquisition date, the asset or disposal group is
measured on initial recognition at the lower of its initial measurement amount had it not been so classified and fair value less costs to
sell. Apart from the non-current asset or disposal group acquired through business combination, the difference arising from the initial
recognition of a non-current asset or disposal group at the fair value less costs to sell shall be included into profit or loss.
     The assets impairment loss recognized for a disposal group held for sale shall reduce the carrying amount of goodwill in the
disposal group first, and then reduce its carrying amount based on the proportion of each non-current asset’s carrying amount in the
disposal group.
     No provision for depreciation or amortization shall be made on non-current assets held for sale or non-current assets in disposal
groups held for sale, while interest and other expenses attributable to the liabilities of a disposal group held for sale shall continue to
be recognized.
     (2) Reversal of assets impairment loss
     When there is a subsequent increase in fair value less costs to sell of a non-current asset held for sale at the balance sheet date,
the write-down shall be recovered, and shall be reversed not in excess of the impairment loss that has been recognized after the non-
current asset was classified as held for sale. The reversal shall be included into profit or loss. Assets impairment loss that has been
recognized before the classification is not reversed.
     When there is a subsequent increase in fair value less costs to sell of a disposal group held for sale at the balance sheet date, the
write-down shall be recovered, and shall be reversed not in excess of the non-current assets impairment loss that has been recognized
after the disposal group was classified as held for sale. The reversal shall be included into profit or loss. The reduced carrying amount
of goodwill and non-current assets impairment loss that has been recognized before the classification is not reversed.
     For the subsequent reversal of the impairment loss that has been recognized in a disposal group held for sale, the carrying
amount is increased based on the proportion of carrying amount of each non-current asset (excluding goodwill) in the disposal group.
     (3) Non-current asset or disposal group that is no longer classified as held for sale and derecognized
     A non-current asset or disposal group that does not met criteria for held for sale and no longer classified as held for sale, or a
non-current asset that removed from a disposal group held for sale shall be measured at the lower of: a. its carrying amount before it
was classified as held for sale, adjusted for any depreciation, amortization or impairment that would have been recognized had it not
been classified as held for sale; and b. its recoverable amount.
     When a non-current asset or disposal group classified as held for sale is derecognized, unrecognized gains or losses shall be
included into profit or loss.
     (XIV) Long-term equity investments
     1. Judgment of joint control and significant influence
     Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not control or joint control of these policies.

                                                                    134
     2. Determination of investment cost
     (1) For business combination under common control, if the consideration of the combining party is that it makes payment in
cash, transfers non-cash assets, assumes its liabilities or issues equity securities, on the date of combination, it regards the share of the
carrying amount of the equity of the combined party included in the consolidated financial statements of the ultimate controlling
party as the initial cost of the investment. The difference between the initial cost of the long-term equity investments and the carrying
amount of the combination consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve
is insufficient to offset, any excess is adjusted to retained earnings.
     When long-term equity investments are obtained through business combination under common control achieved in stages, the
Company determines whether it is a “bundled transaction”. If it is a “bundled transaction”, stages as a whole are considered as one
transaction in accounting treatment. If it is not a “bundled transaction”, on the date of combination, investment cost is initially
recognized at the share of the carrying amount of net assets of the combined party included the consolidated financial statements of
the ultimate controlling party. The difference between the initial investment cost of long-term equity investments at the acquisition
date and the carrying amount of the previously held long-term equity investments plus the carrying amount of the consideration paid
for the newly acquired equity is adjusted to capital reserve; if the balance of capital reserve is insufficient to offset, any excess is
adjusted to retained earnings.
     (2) For business combination not under common control, investment cost is initially recognized at the acquisition-date fair value
of considerations paid.
     When long-term equity investments are obtained through business combination not under common control achieved in stages,
the Company determined whether they are stand-alone financial statements or consolidated financial statements in accounting
treatment:
     1) In the case of stand-alone financial statements, investment cost is initially recognized at the carrying amount of the previously
held long-term equity investments plus the carrying amount of the consideration paid for the newly acquired equity.
     2) In the case of consolidated financial statements, the Company determines whether it is a “bundled transaction”. If it is a
“bundled transaction”, stages as a whole are considered as one transaction in accounting treatment. If it is not a “bundled
transaction”, the carrying amount of the acquirer’s previously held equity interest in the acquiree is remeasured at the acquisition-
date fair value, and the difference between the fair value and the carrying amount is recognized in investment income; when the
acquirer’s previously held equity interest in the acquiree involves other comprehensive income under equity method, the related other
comprehensive income is reclassified as income for the acquisition period, excluding other comprehensive income arising from
changes in net liabilities or assets from remeasurement of defined benefit plan of the acquiree.
     (3) Long-term equity investments obtained through ways other than business combination: the initial cost of a long-term equity
investment obtained by making payment in cash is the purchase cost which is actually paid; that obtained on the basis of issuing
equity securities is the fair value of the equity securities issued; that obtained through debt restructuring is determined according to
“CASBE 12 – Debt Restructuring”; and that obtained through non-cash assets exchange is determined according to “CASBE 7 –
Non-cash Assets Exchange”.
     3. Subsequent measurement and recognition method of profit or loss
     For a long-term equity investment with control relationship, it is accounted for with cost method; for a long-term equity
investment with joint control or significant influence relationship, it is accounted for with equity method.
     4. Disposal of a subsidiary in stages resulting in the Company’s loss of control
     (1) Stand-alone financial statements
     The difference between the carrying amount of the disposed equity and the consideration obtained thereof is recognized in profit
or loss. If the disposal does not result in the Company’s loss of significant influence or joint control, the remained equity is accounted
for with equity method; however, if the disposal results in the Company’s loss of control, joint control, or significant influence, the
remained equity is accounted for according to “CASBE 22 – Financial Instruments: Recognition and Measurement”.
     (2) Consolidated financial statements
     1) Disposal of a subsidiary in stages not qualified as “bundled transaction” resulting in the Company’s loss of control

                                                                    135
     Before the Company’s loss of control, the difference between the disposal consideration and the proportionate share of net assets
in the disposed subsidiary from acquisition date or combination date to the disposal date is adjusted to capital reserve (capital
premium), if the balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
     When the Company loses control, the remained equity is remeasured at the loss-of-control-date fair value. The aggregated value
of disposal consideration and the fair value of the remained equity, less the share of net assets in the disposed subsidiary held before
the disposal from the acquisition date or combination date to the disposal date is recognized in investment income in the period when
the Company loses control over such subsidiary, and meanwhile goodwill is offset correspondingly. Other comprehensive income
related to equity investments in former subsidiary is reclassified as investment income upon the Company’s loss of control.
     2) Disposal of a subsidiary in stages qualified as “bundled transaction” resulting in the Company’s loss of control
     In case of “bundled transaction”, stages as a whole are considered as one transaction resulting in loss of control in accounting
treatment. However, before the Company loses control, the difference between the disposal consideration at each stage and the
proportionate share of net assets in the disposed subsidiary is recognized as other comprehensive income at the consolidated financial
statements and reclassified as profit or loss in the period when the Company loses control over such subsidiary.
     (XV) Investment property
     1. Investment property includes land use right of leased-out property and of property held for capital appreciation and buildings
that have been leased out.
     2. The initial measurement of investment property is based on its cost, and subsequent measurement is made using the cost
model, the depreciation or amortization method is the same as that of fixed assets and intangible assets.
     (XVI) Fixed assets
     1. Recognition principles of fixed assets
     Fixed assets are tangible assets held for use in the production of goods or rendering of services, for rental to others, or for
administrative purposes, and expected to be used during more than one accounting year. Fixed assets are recognized if, and only if, it
is probable that future economic benefits associated with the assets will flow to the Company and the cost of the assets can be
measured reliably.
     2. Depreciation method of different categories of fixed assets
                                                                                  Residual value proportion       Annual depreciation rate
  Categories                    Depreciation method        Useful life (years)
                                                                                            (%)                            (%)
Buildings and structures        Straight-line method              3-35                     3.00-5.00                     2.71-32.33

General equipment               Straight-line method               3-5                     3.00-5.00                    19.00-32.33

Special equipment               Straight-line method              2-15                     0.00-5.00                     6.33-50.00

Transport facilities            Straight-line method              3-15                     3.00-5.00                     6.33-32.33

Other equipment                 Straight-line method              3-10                        5.00                       9.50-31.67
     (XVII) Construction in progress
     1. Construction in progress is recognized if, and only if, it is probable that future economic benefits associated with the item will
flow to the Company, and the cost of the item can be measured reliably. Construction in progress is measured at the actual cost
incurred to reach its designed usable conditions.
     2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed usable conditions. When
the auditing of the construction in progress was not finished while reaching the designed usable conditions, it is transferred to fixed
assets using estimated value first, and then adjusted accordingly when the actual cost is settled, but the accumulated depreciation is
not to be adjusted retrospectively.
     (XVIII) Borrowing costs
     1. Recognition principle of borrowing costs capitalization
     Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or
production of assets eligible for capitalization, it is capitalized and included in the costs of relevant assets; other borrowing costs are


                                                                   136
recognized as expenses on the basis of the actual amount incurred, and are included in profit or loss.
     2. Borrowing costs capitalization period
     (1) The borrowing costs are not capitalized unless the following requirements are all met: 1) the asset disbursements have
already incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and construction or production activities which
are necessary to prepare the asset for its intended use or sale have already started.
     (2) Suspension of capitalization: where the acquisition and construction or production of a qualified asset is interrupted
abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing costs is suspended; the
borrowing costs incurred during such period are recognized as expenses, and are included in profit or loss, till the acquisition and
construction or production of the asset restarts.
     (3) Ceasing of capitalization: when the qualified asset under acquisition and construction or production is ready for the intended
use or sale, the capitalization of the borrowing costs is ceased.
     3. Capitalization rate and capitalized amount of borrowing costs
     For borrowings exclusively for the acquisition and construction or production of assets eligible for capitalization, the to-be-
capitalized amount of interests is determined in light of the actual interest expenses incurred (including amortization of premium or
discount based on effective interest method) of the special borrowings in the current period less the interest income on the unused
borrowings as a deposit in the bank or as a temporary investment; where a general borrowing is used for the acquisition and
construction or production of assets eligible for capitalization, the Company calculates and determines the to-be-capitalized amount
of interests on the general borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements less the general borrowing by the capitalization rate of the general borrowing used.
     (XIX) Intangible assets
     1. Intangible assets include land use right, patent right, non-patented technology, etc. The initial measurement of intangible
assets is based on its cost.
     2. For intangible assets with finite useful lives, their amortization amounts are amortized within their useful lives systematically
and reasonably, if it is unable to determine the expected realization pattern reliably, intangible assets are amortized by the straight-
line method with details as follows:

  Items                                                                                      Amortization period (years)

Franchise                                                                                          Contractual term

Land use right                                                                                           35-50

Patented technology                                                                              Economic life cycle

Software                                                                                                  3-10

Other                                                                                                      5
     3. Expenditures on the research phase of an internal project are recognized as profit or loss when they are incurred. An
intangible asset arising from the development phase of an internal project is recognized if the Company can demonstrate all of the
followings: (1) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (2) its intention to
complete the intangible asset and use or sell it; (3) how the intangible asset will generate probable future economic benefits, among
other things, the Company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset
itself or, if it is to be used internally, the usefulness of the intangible asset; (4) the availability of adequate technical, financial and
other resources to complete the development and to use or sell the intangible asset; and (5) its ability to measure reliably the
expenditure attributable to the intangible asset during its development.
     Criteria for distinguishing the research phase from the development phase of an internal project to create an intangible asset:
     The planned investigation phase for acquiring new technology and knowledge should be defined as the research phase, which
has the characteristics of planning and exploratory nature; before commercial production or use, when the research results or other
knowledge are applied to a certain plan or design with the intention to produce new or substantially improved materials,


                                                                     137
devices, products, etc., such stage should be determined as the development phase, which has the characteristics of pertinence and
greater possibility of forming results. The Company divides the research and development phases by forming the prototype drawing
and starting the prototype trial production. Expenditures in the research phase of internal research and development projects are
included in profit or loss when they incur. When the Company enters the development phase, project expenditures are first calculated
by projects under “development expenditure”, and if the capitalization conditions are met, they are presented as development
expenditures in the financial statements. The project will be transferred to intangible assets when the project has the conditions for
sale or mass production.
     (XX) Impairment of part of long-term assets
     For long-term assets such as long-term equity investments, investment property at cost model, fixed assets, construction in
progress, right-of-use assets, intangible assets with finite useful lives, etc., if at the balance sheet date there is indication of
impairment, the recoverable amount is to be estimated. For goodwill recognized in business combination and intangible assets with
indefinite useful lives, no matter whether there is indication of impairment, impairment test is performed annually. Impairment test
on goodwill is performed on related asset group or asset group portfolio.
     When the recoverable amount of such long-term assets is lower than their carrying amount, the difference is recognized as
provision for assets impairment through profit or loss.
     (XXI) Long-term prepayments
     Long-term prepayments are expenses that have been recognized but with amortization period over one year (excluding one
year). They are recorded with actual cost, and evenly amortized within the beneficiary period or stipulated period. If items of long-
term prepayments fail to be beneficial to the following accounting periods, residual values of such items are included in profit or loss.
     (XXII) Employee benefits
     1. Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and other long-term
employee benefits.
     2. Short-term employee benefits
     The Company recognizes, in the accounting period in which an employee provides service, short-term employee benefits
actually incurred as liabilities, with a corresponding charge to profit or loss or the cost of a relevant asset.
     3. Post-employment benefits
     The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans.
     (1) The Company recognizes in the accounting period in which an employee provides service the contribution payable to a
defined contribution plan as a liability, with a corresponding charge to profit or loss or the cost of a relevant asset.
     (2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
     1) In accordance with the projected unit credit method, using unbiased and mutually compatible actuarial assumptions to
estimate related demographic variables and financial variables, measure the obligations under the defined benefit plan, and determine
the periods to which the obligations are attributed. Meanwhile, the Company discounts obligations under the defined benefit plan to
determine the present value of the defined benefit plan obligations and the current service cost;
     2) When a defined benefit plan has assets, the Company recognizes the deficit or surplus by deducting the fair value of defined
benefit plan assets from the present value of the defined benefit plan obligation as a net defined benefit plan liability or net defined
benefit plan asset. When a defined benefit plan has a surplus, the Company measures the net defined benefit plan asset at the lower of
the surplus in the defined benefit plan and the asset ceiling;
     3) At the end of the period, the Company recognizes the following components of employee benefits cost arising from defined
benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and c. changes as a result of
remeasurement of the net defined benefit liability (asset). Item a and item b are recognized in profit or loss or the cost of a relevant
asset. Item c is recognized in other comprehensive income and is not to be reclassified subsequently to profit or loss. However, the
Company may transfer those amounts recognized in other comprehensive income within equity.
     4. Termination benefits
     Termination benefits provided to employees are recognized as an employee benefit liability for termination benefits, with a

                                                                     138
corresponding charge to profit or loss at the earlier of the following dates: (1) when the Company cannot unilaterally withdraw the
offer of termination benefits because of an employment termination plan or a curtailment proposal; or (2) when the Company
recognizes cost or expenses related to a restructuring that involves the payment of termination benefits.
        5. Other long-term employee benefits
        When other long-term employee benefits provided to the employees satisfied the conditions for classifying as a defined
contribution plan, those benefits are accounted for in accordance with the requirements relating to defined contribution plan, while
other benefits are accounted for in accordance with the requirements relating to defined benefit plan. The Company recognizes the
cost of employee benefits arising from other long-term employee benefits as the followings: (1) service cost; (2) net interest on the
net liability or net assets of other long-term employee benefits; and (3) changes as a result of remeasurement of the net liability or net
assets of other long-term employee benefits. As a practical expedient, the net total of the aforesaid amounts is recognized in profit or
loss or included in the cost of a relevant asset.
        (XXIII) Provisions
        1. Provisions are recognized when fulfilling the present obligations arising from contingencies such as providing guarantee for
other parties, litigation, products quality guarantee, onerous contract, etc., may cause the outflow of the economic benefit and such
obligations can be reliably measured.
        2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling the present
obligations, and its carrying amount is reviewed at the balance sheet date.
        (XXIV) Share-based payment
        1. Types of share-based payment
        Share-based payment consists of equity-settled share-based payment and cash-settled share-based payment.
        2. Accounting treatment for settlements, modifications and cancellations of share-based payment plans
        (1) Equity-settled share-based payment
        For equity-settled share-based payment transaction with employees, if the equity instruments granted vest immediately, the fair
value of those equity instruments is measured at grant date and recognized as transaction cost or expense, with a corresponding
adjustment in capital reserve; if the equity instruments granted do not vest until the counterparty completes a specified period of
service or fulfils certain performance conditions, at the balance sheet date within the vesting period, the fair value of those equity
instruments measured at grant date based on the best estimate of the number of equity instruments expected to vest is recognized as
transaction cost or expense, with a corresponding adjustment in capital reserve.
        For equity-settled share-based payment transaction with parties other than employees, if the fair value of the services received
can be measured reliably, the fair value is measured at the date the Company receives the service; if the fair value of the services
received cannot be measured reliably, but that of equity instruments can be measured reliably, the fair value of the equity instruments
granted measured at the date the Company receives the service is referred to, and recognized as transaction cost or expense, with a
corresponding increase in equity.
        (2) Cash-settled share-based payment
        For cash-settled share-based payment transactions with employees, if share appreciation rights vest immediately, the fair value
of the liability incurred as the acquisition of services is measured at grant date and recognized as transaction cost or expense, with a
corresponding increase in liabilities; if share appreciation rights do not vest until the employees have completed a specified period of
service or fulfils certain performance conditions, the liability is measured, at each balance sheet date until settled, at the fair value of
the share appreciation rights measured at grant date based on the best estimate of the number of share appreciation right expected to
vest.
        (3) Modifications and cancellations of share-based payment plan
        If the modification increases the fair value of the equity instruments granted, the Company includes the incremental fair value
granted in the measurement of the amount recognized for services received as consideration for the equity instruments granted;
similarly, if the modification increases the number of equity instruments granted, the Company includes the fair value of the
additional equity instruments granted, in the measurement of the amount recognized for services received as consideration for the

                                                                    139
equity instruments granted; if the Company modifies the vesting conditions in a manner that is beneficial to the employee, the
Company takes the modified vesting conditions into account.
     If the modification reduces the fair value of the equity instruments granted, the Company does not take into account that
decrease in fair value and continue to measure the amount recognized for services received as consideration for the equity
instruments based on the grant date fair value of the equity instruments granted; if the modification reduces the number of equity
instruments granted to an employee, that reduction is accounted for as a cancellation of that portion of the grant; if the Company
modifies the vesting conditions in a manner that is not beneficial to the employee, the Company does not take the modified vesting
conditions into account.
     If the Company cancels or settles a grant of equity instruments during the vesting period (other than that cancelled when the
vesting conditions are not satisfied), the Company accounts for the cancellation or settlement as an acceleration of vesting, and
therefore recognizes immediately the amount that otherwise would have been recognized for services received over the remainder of
the vesting period.
     (XXV) Other financial instruments such as preferred shares and perpetual bonds
     Pursuant to CASBEs on financial instruments and the “Regulations on Accounting Treatments of Perpetual Bonds” (Cai Kuai
[2019] No. 2), for financial instruments such as convertible bonds etc., the Company classifies a financial instrument or its
components at initial recognition as a financial asset or liability or equity instrument, based on contract terms and economic essence
it reveals instead of its legal form, combining with the definitions of financial asset, liability and equity instrument.
     At the balance sheet date, for a financial instrument classified as an equity instrument, its interest expenditure or dividend
distribution is treated as profit distribution, and share repurchase and cancelation are treated as changes in equity; for a financial
instrument classified as a financial liability, its interest expenditure or dividend distribution is treated as borrowing expense, and gain
or loss on repurchase or redemption is included in profit or loss.
     (XXVI) Revenue
     1. Revenue recognition principles
     At contract inception, the Company shall assess the contracts and shall identify each performance obligation in the contracts,
and determine whether the performance obligation should be satisfied over time or at a point in time.
     The Company satisfies a performance obligation over time if one of the following criteria is met, otherwise, the performance
obligation is satisfied at a point in time: (1) the customer simultaneously receives and consumes the economic benefits provided by
the Company’s performance as the Company performs; (2) the customer can control goods as they are created by the Company’s
performance; (3) goods created during the Company’s performance have irreplaceable uses and the Company has an enforceable
right to the payments for performance completed to date during the whole contract period.
     For each performance obligation satisfied over time, the Company shall recognize revenue over time by measuring the progress
towards complete satisfaction of that performance obligation. In the circumstance that the progress cannot be measured reasonably,
but the costs incurred in satisfying the performance obligation are expected to be recovered, the Company shall recognize revenue
only to the extent of the costs incurred until it can reasonably measure the progress. For each performance obligation satisfied at a
point in time, the Company shall recognize revenue at the time point that the customer obtains control of relevant goods or services.
To determine whether the customer has obtained control of goods, the Company shall consider the following indications: (1) the
Company has a present right to payments for the goods, i.e., the customer is presently obliged to pay for the goods; (2) the Company
has transferred the legal title of the goods to the customer, i.e., the customer has legal title to the goods; (3) the Company has
transferred physical possession of the goods to the customer, i.e., the customer has physically possessed the goods; (4) the Company
has transferred significant risks and rewards of ownership of the goods to the customer, i.e., the customer has obtained significant
risks and rewards of ownership of the goods; (5) the customer has accepted the goods; (6) other evidence indicating the customer has
obtained control over the goods.
     2. Revenue measurement principle
     (1) Revenue is measured at the amount of the transaction price that is allocated to each performance obligation. The transaction
price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a

                                                                     140
customer, excluding amounts collected on behalf of third parties and those expected to be refunded to the customer.
     (2) If the consideration promised in a contract includes a variable amount, the Company shall confirm the best estimate of
variable consideration at expected value or the most likely amount. However, the transaction price that includes the amount of
variable consideration only to the extent that it is high 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.
     (3) In the circumstance that the contract contains a significant financing component, the Company shall determine the
transaction price based on the price that a customer would have paid for if the customer had paid cash for obtaining control over
those goods or services. The difference between the transaction price and the amount of promised consideration is amortized under
effective interest method over contractual period. The effects of a significant financing component shall not be considered if the
Company expects, at the contract inception, that the period between when the customer obtains control over goods or services and
when the customer pays consideration will be one year or less.
     (4) For contracts containing two or more performance obligations, the Company shall determine the stand-alone selling price at
contract inception of the distinct good underlying each performance obligation and allocate the transaction price to each performance
obligation on a relative stand-alone selling price basis.
     3. Revenue recognition method
     The Company mainly sells environmental and sanitation machinery, ventilation equipment, etc., and engages in sanitation
operation service.
     (1) Sale of ventilation equipment is a performance obligation satisfied at a point in time. Revenue from domestic sales of
products that do not require installation is recognized when the Company has delivered goods to the designated address as agreed by
contract and such delivered goods have been verified for acceptance by customers, and the Company has obtained delivery receipts,
and has collected the payments or has obtained the right to the payments, and related economic benefits are highly probable to flow
to the Company. For products that need to be installed, revenue is recognized when the products are delivered and qualified for
installation, commissioning and acceptance. Revenue from overseas sales is recognized when the Company has declared goods to the
customs based on contractual agreements and has obtained a bill of lading, and the Company has collected the payments or has
obtained the right to the payments, and related economic benefits are highly probable to flow to the Company.
     (2) Sales of environmental and sanitation machinery products is a performance obligation satisfied at a point in time, and
revenue is recognized when customers receive and consume the products, and the Company has collected the payments or has
obtained the right to the payments, and related economic benefits are highly probable to flow to the Company.
     (3) Sanitation operation service is a performance obligation satisfied over time. Revenue is recognized based on the service
assessment statement confirmed by the labor receiving party, etc.
     (4) For revenue recognition method of PPP business with BOT models, please refer to section III (XXXIII) of notes to the
financial statements for details.
     (XXVII) Government grants
     1. Government grants shall be recognized if, and only if, the following conditions are all met: (1) the Company will comply with
the conditions attaching to the grants; (2) the grants will be received. Monetary government grants are measured at the amount
received or receivable. Non-monetary government grants are measured at fair value, and can be measured at nominal amount in the
circumstance that fair value cannot be assessed.
     2. Government grants related to assets
     Government grants related to assets are government grants with which the Company purchases, constructs or otherwise acquires
long-term assets under requirements of government. In the circumstances that there is no specific government requirement, the
Company shall determine based on the primary condition to acquire the grants, and government grants related to assets are
government grants whose primary condition is to construct or otherwise acquire long-term assets. They offset carrying amount of
relevant assets, or they are recognized as deferred income. If recognized as deferred income, they are included in profit or loss on a
systematic basis over the useful lives of the relevant assets. Those measured at notional amount are directly included into profit or
loss. For assets sold, transferred, disposed or damaged within the useful lives, balance of unamortized deferred income is transferred

                                                                  141
into profit or loss of the period in which the disposal occurred.
     3. Government grants related to income
     Government grants related to income are government grants other than those related to assets. For government grants that
contain both parts related to assets and parts related to income, in which those two parts are blurred, they are thus collectively
classified as government grants related to income. For government grants related to income used for compensating the related future
cost, expenses or losses, they are recognized as deferred income and included in profit or loss or used to offset relevant cost during
the period in which the relevant cost, expenses or losses are recognized; for government grants related to income used for
compensating the related cost, expenses or losses incurred to the Company, they are directly included in profit or loss or used to
offset relevant cost.
     4. Government grants related to the ordinary course of business shall be included into other income or used to offset relevant
cost based on business nature, while those not related to the ordinary course of business shall be included into non-operating revenue
or expenditures.
     (XXVIII) Contract assets, contract liabilities
     The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between its
performance obligations and customers’ payments. Contract assets and contract liabilities under the same contract shall offset each
other and be presented on a net basis.
     The Company presents an unconditional right to consideration (i.e., only the passage of time is required before the consideration
is due) as a receivable, and presents a right to consideration in exchange for goods that it has transferred to a customer (which is
conditional on something other than the passage of time) as a contract asset.
     The Company presents an obligation to transfer goods to a customer for which the Company has received consideration (or the
amount is due) from the customer as a contract liability.
     (XXIX) Deferred tax assets/Deferred tax liabilities
     1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the carrying
amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base of items not recognized as assets
and liabilities but with their tax base being able to be determined according to tax laws) and in accordance with the tax rate
applicable to the period during which the assets are expected to be recovered or the liabilities are expected to be settled.
     2. A deferred tax asset is recognized to the extent of the amount of the taxable income, which is most likely to obtain and which
can be deducted from the deductible temporary difference. At the balance sheet date, if there is any exact evidence that it is probable
that future taxable income will be available against which deductible temporary differences can be utilized, the deferred tax assets
unrecognized in prior periods are recognized.
     3. At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a deferred tax asset
is reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow the benefit of the
deferred tax asset to be utilized. Such reduction is subsequently reversed to the extent that it becomes probable that sufficient taxable
income will be available.
     4. The income tax and deferred tax for the period are treated as income tax expenses or income through profit or loss, excluding
those arising from the following circumstances: (1) business combination; and (2) the transactions or items directly recognized in
equity.
     (XXX) Leases
     1. The Company as lessee
     At the commencement date, the Company recognizes a lease that has a lease term of 12 months or less as a short-term lease,
which shall not contain a purchase option; the Company recognizes a lease as a lease of a low-value asset if the underlying asset is of
low value when it is new. If the Company subleases an asset, or expects to sublease an asset, the head lease does not qualify as a
lease of a low-value asset.
     For all short-term leases and leases of low-value assets, lease payments are recognized as cost or profit or loss with straight-line
method over the lease term.

                                                                    142
     Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach, the Company
recognizes right-of-use assets and lease liabilities at the commencement date.
     (1) Right-of-use assets
     The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurement of the lease
liabilities; 2) any lease payments made at or before the commencement date, less any lease incentives received; 3) any initial direct
costs incurred by the lessee; and 4) an estimate of costs to be incurred by the lessee in dismantling and removing the underlying
asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions
of the lease.
     The Company depreciates the right-of-use asset using the straight-line method. If it is reasonable to be certain that the
ownership of the underlying asset can be acquired by the end of the lease term, the Company depreciates the right-of-use asset from
the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the right-of-use
asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
     (2) Lease liabilities
     At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid
at that date, discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the Company’s
incremental borrowing rate shall be used. Unrecognized financing expenses, calculated at the difference between the lease payment
and its present value, are recognized as interest expenses over the lease term using the discount rate which has been used to
determine the present value of lease payment and included in profit or loss. Variable lease payments not included in the measurement
of lease liabilities are included in profit or loss in the periods in which they are incurred.
     After the commencement date, if there is a change in the following items: (a) actual fixed payments; (b) amounts expected to be
payable under residual value guarantees; (c) an index or a rate used to determine lease payments; (d) assessment result or exercise of
purchase option, extension option or termination option, the Company remeasures the lease liability based on the present value of
lease payments after changes, and adjusts the carrying amount of the right-of-use asset accordingly. If the carrying amount of the
right-of-use asset is reduced to zero but there shall be a further reduction in the lease liability, the remaining amount shall be
recognized into profit or loss.
     2. The Company as lessor
     At the commencement date, the Company classifies a lease as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset. Otherwise, it is classified as an operating lease.
     (1) Operating lease
     Lease receipts are recognized as lease income with straight-line method over the lease term. Initial direct costs incurred shall be
capitalized, amortized on the same basis as the recognition of lease income, and included into profit or loss by installments. Variable
lease payments related to operating lease which are not included in the lease payment are charged as profit or loss in the periods in
which they are incurred.
     (2) Finance lease
     At the commencement date, the Company recognizes the finance lease payment receivable based on the net investment in the
lease (sum of the present value of unguaranteed residual value and lease receipts that are not received at the commencement date,
discounted by the interest rate implicit in the lease), and derecognizes assets held under the finance lease. The Company calculates
and recognizes interest income using the interest rate implicit in the lease over the lease term.
     Variable lease payments not included in the measurement of the net investment in the lease are charged as profit or loss in the
periods in which they are incurred.
     3. Sale and leaseback
     (1) The Company as the lessee
     In accordance with the “CASBE 14 – Revenues”, the Company would assess and determine whether the transfer of an asset in
the sale and leaseback transaction is accounted for as a sale of that asset.
     If the transfer of an asset is accounted for as a sale of the asset, the Company measures the right-of-use asset arising from the

                                                                    143
leaseback at the proportion of the original carrying amount of the asset that relates to the right of use retained by the Company.
Accordingly, the Company recognizes only the amount of any gain or loss that relates to the rights transferred to the lessor.
     Otherwise, the Company continues the recognition of the transferred assets, and recognizes a financial liability equal to the
amount of transfer income in accordance with the “CASBE 22 – Financial Instruments: Recognition and Measurement” at the same
time.
     (2) The Company as the lessor
     In accordance with the “CASBE 14 – Revenues”, the Company would assess and determine whether the transfer of an asset in
the sale and leaseback transaction is accounted for as a sale of that asset.
     If the transfer of an asset is accounted for as a sale of the asset, the Company accounts for the purchase of assets in accordance
with other applicable standards, and accounts for the lease of assets in accordance with the “CASBE 21 – Leases”.
     Otherwise, the Company does not recognize the transferred asset, but recognizes a financial asset equal to the amount of transfer
income in accordance with the “CASBE 22 – Financial Instruments: Recognition and Measurement”.
     (XXXI) Work safety fund
     The Company accrues work safety fund in accordance with the “Circular on Management Measures on the Appropriation and
Use of Work Safety Fund” (Cai Zi [2022] No. 136) issued by Ministry of Finance (MOF) and Ministry of Emergency Management.
Standard work safety fund is included in the cost or profit or loss, meanwhile accounted for under “special reserve”. When work
safety fund is used as an expense, it is to offset special reserve directly. When work safety fund is qualified to be included in the cost
of fixed assets, it is accounted for under “construction in progress” and transferred to fixed assets when related safety projects reach
the designed useful conditions; meanwhile, the cost included in fixed assets is to offset “special reserve”, and accumulated
depreciation shall be recognized at the same amount. Such fixed assets shall not be depreciated in future periods.
        (XXXII) Segment reporting
     Operating segments are determined based on the structure of the Company’s internal organization, management requirements
and internal reporting system. An operating segment is a component of the Company:
     1. that engages in business activities from which it may earn revenues and incur expenses;
     2. whose financial performance is regularly reviewed by the Management to make decisions about resource to be allocated to
the segment and to assess its performance; and
     3. for which accounting information regarding financial position, financial performance and cash flows is available through
analysis.
     (XXXIII) Other significant accounting policies and estimates
     1. PPP business
     The Company adopts the build-operate-transfer approach (PPP projects, mainly using BOT, TOT, etc.) to participate in the
public infrastructure business. The project company obtains the franchise of public infrastructure projects from government
departments and participates in the construction and operation of the project. After the franchise expires, the project company needs
to hand over relevant infrastructure to the government or the department designated by the government.
     For the PPP project contract under which the Company provides multiple services (such as the rendering of construction
services of PPP projects as well as post-completion operation services and maintenance services), the Company identifies each
performance obligation in the contracts in accordance with the provisions of “CASBE 14 – Revenues”, and allocates the transaction
price to each performance obligation on the basis of the relative stand-alone selling prices. If the stand-alone selling price cannot be
directly observed, or if there is a lack of similar market prices, the Company will take into account market conditions, specific factors
of the Company and information related to customers and other relevant information, and make a reasonable estimate of the stand-
alone selling price using methods such as market adjustment method, cost-plus method, residual value method, etc. Construction
services are performance obligations satisfied over time. Revenue from construction services is recognized by the percentage of
completion of the performance obligations, which is determined based on the proportion of the incurred costs to the estimated total
costs. In the circumstance that the percentage of completion cannot be measured reasonably, but the incurred costs are expected to be
recovered, the Company recognizes revenue only to the extent of the incurred costs until it can reasonably measure the percentage of

                                                                   144
completion.
     The Company has the right to charge users of public goods and services during the operation of the project in accordance with
the PPP project contracts. However, if the amount of the fees is uncertain, such right does not constitute an unconditional right to
receive cash, and the consideration or construction revenue of the relevant PPP project assets is recognized as intangible assets when
the PPP project assets reach the designed useful conditions, which shall be accounted for in accordance with “CASBE 6 – Intangible
Assets”.
     If the Company is qualified to have the right to receive a determinable amount of cash (or other financial assets) during the
operation of the project in accordance with the PPP project contracts, such amount is recognized as accounts receivable when the
Company has the right to such consideration (the right depends only on the factor of the passage of time) and is accounted for in
accordance with “CASBE 22 – Financial Instruments: Recognition and Measurement”. The Company recognizes the difference
between the consideration or construction revenue of the relevant PPP project assets and the determinable amount of cash (or other
financial assets) as intangible assets when the PPP project assets reach the designed useful conditions.
     For the portion of the consideration or construction revenue recognized as intangible assets, the contract assets recognized
during the relevant construction period are presented under “intangible assets” in the balance sheet; for other contract assets
recognized during the construction period, they are presented under “contract assets”, or “other non-current assets” in the balance
sheet if they are expected to be realized within twelve months of the balance sheet date.
     After the PPP project assets reach the designed useful conditions, the Company recognizes revenue related to operating services
in accordance with “CASBE 14 – Revenues”.
     2. Accounting treatment related to share repurchase
     When the Company repurchases its shares for the purpose of reducing its registered capital or rewarding its employees, if the
purchased shares are to be kept as treasury shares, the treasury shares are recorded at the cash distributed to existing shareholders for
repurchase; if the purchased shares are to be retired, the difference between the total book value of shares retired and the cash
distributed to existing shareholders for repurchase is to reduce capital reserve, or retained earnings when the capital reserve is not
enough to reduce. If the Company repurchases vested equity instruments in equity-settled share-based payment transactions with
employees, cost of treasury shares granted to employees and capital reserve (other capital reserve) accumulated within the vesting
period are to be written off on the payment made to employees, with a corresponding adjustment in capital reserve (share premium).
     (XXXIV) Significant changes in accounting policies
     Changes in accounting policies arising from changes in CASBEs
     1. The Company has adopted the regulations about accounting for sales of products or by-products produced by fixed assets
before intended use or during the R&D process as stipulated the “Interpretation of China Accounting Standards for Business
Enterprises No. 15” issued by the MOF since January 1, 2022. Details on retroactive adjustments on trial sales occurring between the
beginning of the earliest period presented in the financial statements in which the Company adopts the above regulations and January
1, 2022 are as follows:
                                                   Dec. 31, 2021/                                                 Dec. 31, 2021/
 Financial statement items
                                            Year 2021 (before retroactive         Amounts affected          Year 2021 (after retroactive
 significantly affected
                                                    adjustments)                                                   adjustments)
Items of balance sheet as of December
31, 2021
Intangible assets                                        5,319,721,844.23                30,874,024.17                   5,350,595,868.40

Non-controlling interest                                   350,671,301.45                  6,549,735.93                    357,221,037.38

Undistributed profit                                     3,850,610,683.45                24,324,288.24                   3,874,934,971.69

Items of income statement of 2021

Operating revenue                                       11,813,537,444.48                52,754,166.97                  11,866,291,611.45

Operating cost                                           9,210,318,426.37                21,880,142.80                   9,232,198,569.17
     2. The Company has adopted the regulations about judgment on onerous contracts in the “Interpretation of China Accounting


                                                                   145
Standards for Business Enterprises No. 15” issued by the MOF since January 1, 2022. Such change in accounting policies has no
impact on the Company’s financial statements.
      3. The Company has adopted the regulations about accounting for income tax consequences of dividends on a financial
instrument classified by the issuer as an equity instrument in the “Interpretation of China Accounting Standards for Business
Enterprises No. 16” issued by the MOF since November 30, 2022. Such change in accounting policies has no impact on the
Company’s financial statements.
      4. The Company has adopted the regulations about accounting for modifications of share-based payment transactions from cash-
settled to equity-settled in the “Interpretation of China Accounting Standards for Business Enterprises No. 16” issued by the MOF
since November 30, 2022. Such change in accounting policies has no impact on the Company’s financial statements.


IV. Taxes
      (I) Main taxes and tax rates

  Taxes                                                              Tax bases                                         Tax rates
                                                                                                             3%, 6%, 9%, 13%. Exported
                                            The output tax calculated based on the revenue from sales
                                                                                                                  goods are subject to
                                            of goods or rendering of services in accordance with the
Value-added tax (VAT)                                                                                         “exemption, credit, refund”
                                            tax law, net of the input tax that is allowed to be deducted
                                                                                                             policies, with refund rate of
                                            in the current period
                                                                                                                         13%.
                                            For housing property levied on the basis of price, housing
                                            property tax is levied at the rate of 1.2% of the balance
Housing property tax                        after deducting 30% of the cost; for housing property                     1.2%, 12%
                                            levied on the basis of rent, housing property tax is levied
                                            at the rate of 12% of lease income.
Urban maintenance and construction
                                            Turnover tax actually paid                                                 7%, 5%
tax
Education surcharge                         Turnover tax actually paid                                                    3%

Local education surcharge                   Turnover tax actually paid                                                 2%, 1%

Enterprise income tax                       Taxable income                                                          15%, 20%, 25%
      Different enterprise income tax rates applicable to different taxpayers:

  Taxpayers                                                                                                   Income tax rate

Infore Technology Company                                                                                           15%

Shangfeng Industrial Company                                                                                        15%

Zoomlion Environmental Company                                                                                      15%
Foshan Shunde Huaqingyuan Environmental Protection Co., Ltd. (the “Huaqingyuan
                                                                                                                    15%
Company”)
Fengyun IoT Technology Co., Ltd.                                                                                    15%

Zhejiang Yolsh Electric Drive Technology Co., Ltd. (the “Yolsh Company”)                                          15%

Guangdong Infore Intelligent Sanitation Technology Co., Ltd.                                                        15%

Lianjiang Green Oriental New Energy Co., Ltd. (the “Lianjiang Company”)                                           15%
                                                                                               25%, 20% for small enterprises with meager
Taxpayers other than the above-mentioned
                                                                                                                profit
      (II) Tax preferential policies
      1. Enterprise income tax

 No.                             Entities                                                   Preferential policies
          Zoomlion Environmental Company, Fengyun               Pursuant to the preferential income tax policy for high-tech enterprises,
  1
          IoT Technology Co., Ltd., Yolsh Company               enterprise income tax rate is reduced to 15% from 2020 to 2022.
          Shangfeng Industrial Company, Infore                  Pursuant to the preferential income tax policy for high-tech enterprises,
  2
          Technology Company, Huaqingyuan Company,              enterprise income tax rate is reduced to 15% from 2022 to 2024.

                                                                    146
 No.                           Entities                                                 Preferential policies
           Guangdong Infore Intelligent Sanitation
           Technology Co., Ltd., Lianjiang Company
                                                           Pursuant to the “Law of the People’s Republic of China on Enterprise
                                                           Income Tax” and its implementation regulations, the “Notice of MOF,
                                                           State Taxation Administration (STA) and National Development and
                                                           Reform Commission (NDRC) on Publishing the Catalog of Enterprise
                                                           Income Tax Preferences for Environmental Protection, Energy Saving,
           Funan Green Oriental Environmental Energy
                                                           and Water Saving Projects (Trial)” (Cai Shui [2009] No. 166) (the “2009
           Co., Ltd. (the “Funan Company”), Hanshou
                                                           Catalog”), the project companies are entitled to enjoy the preferential
   3       Zoomlion Environmental Industry Co., Ltd., Cili
                                                           policy of three-year exemption from the first profit-making year,
           County Zoomlion Huabao Environmental
                                                           followed by three years of 50% reduction of enterprise income tax.
           Industry Co., Ltd., etc.
                                                           Pursuant to the “Announcement No. 36, 2021 of MOF, STA, NDRC, and
                                                           Ministry of Ecology and Environment” issued by four departments
                                                           including the MOF dated December 16, 2021, the entities’ business
                                                           comply with the “2021 Catalog”, and relevant projects can still enjoy the
                                                           above preferential policy.
                                                           Pursuant to the “Announcement of MOF and STA on the Implementation
                                                           of the Tax Relief Policy for Small Enterprises with Meager Profit and
                                                           Individually-owned Businesses” (No. 12, 2021), from January 1, 2021 to
                                                           December 31, 2022, the enterprise income tax for the portion of the
           Foshan Shunde Huabo Environmental Water
                                                           taxable income within 1 million yuan is levied at 20% based on 12.5% of
           Co., Ltd., Foshan Shunde Yuanyi Water
   4                                                       that portion of income; pursuant to the “Announcement of MOF and STA
           Environmental Protection Co., Ltd., Dingnan
                                                           on Further Implementation of the Tax Relief Policy for Small Enterprises
           Zoomlion Environmental Industry Co., Ltd., etc.
                                                           with Meager Profit” (Announcement No. 13, 2022), from January 1,
                                                           2022 to December 31, 2024, the enterprise income tax for the portion of
                                                           the taxable income exceeding 1 million yuan but within 3 million yuan is
                                                           levied at 20% based on 25% of that portion of income.
                                                           Revenue from the production of non-restricted and non-prohibited
           Huaqingyuan Company, Foshan Shunde District
                                                           products that meet the relevant national and industry standards using
           Huaying Environmental Water Co., Ltd., Foshan
                                                           resources specified in the “Resources Comprehensive Utilization of
   5       Shunde District Yuanrun Water Environmental
                                                           Enterprise Income Tax Preferential Catalog (2008 Edition)” as the main
           Protection Co., Ltd., Foshan Shunde District
                                                           raw material will be reduced to 90% as taxable income for enterprise
           Huabo Environmental Protection Co., Ltd.
                                                           income tax in the current period.
                                                           Pursuant to the document numbered Guo Ban Han [2012] 103 by the
                                                           State Council, newly established enterprises that settle in the Ruili Pilot
                                                           Zone are entitled to enjoy the five-year-exemption and five-year-half-
                                                           reduction policy for the enterprise income tax shared by the local
   6       Ruili Yinglian Environmental Industry Co., Ltd. authority of the region (40% of total enterprise income tax), i.e., they
                                                           enjoy enterprise income tax exemption from 2021 to 2025, and enjoy a
                                                           50% reduction in income from 2026 to 2030, while for the enterprise
                                                           income tax shared by central government (60%), they enjoy the
                                                           preferential policy as small enterprises with meager profit.


       2. VAT
       (1) Pursuant to the “Notice of MOF and STA on VAT Policies for Software Products” (Cai Shui [2011] No. 100), general VAT
taxpayers who sell software products developed and produced by themselves are subject to VAT refund upon collection for the
amount exceeding 3% of their actual VAT burdens. In 2022, the subsidiary Zoomlion Environmental Company is entitled to enjoy the
VAT refund upon collection policy for sale of its self-developed and self-produced software products, and the VAT refunds received
in the current period amount to 14,240,650.62 yuan.
       (2) Pursuant to the “Announcement of MOF and STA on Clarifying Extra VAT Deduction Policy for Life Service Industry”
(Announcement No. 87, 2019 of MOF and STA), eligible taxpayers can apply to their competent tax authorities for extra tax credit.
In 2022, the subsidiaries Zoomlion Environmental Company, Foshan Shunde Yuanyi Water Environmental Protection Co., Ltd.,
Infore Technology Company, and Infore Zoomlion City Environmental Service Co., Ltd. are engaged in life services, and extra tax
credit they enjoy in the current period amounts to 17,344,728.48 yuan, 59,918.88 yuan, 34,500.00 yuan, and 21,376.76 yuan
respectively.
       (3) Pursuant to Article 5 of the “Notice of MOF and STA on Printing and Distributing the ‘VAT Preferential Catalog of Products
and Services for Comprehensive Utilization of Resources’” (Cai Shui [2015] No. 78), since July 1, 2015, enterprises rendering


                                                                  147
sewage treatment services are entitled to enjoy 70% VAT refund upon collection. In 2022, the subsidiaries Huaqingyuan Company,
Foshan Shunde District Huaying Environmental Water Co., Ltd., and Foshan Shunde District Yuanrun Water Environmental
Protection Co., Ltd. received VAT refund upon collection of 1,518,783.05 yuan, 524,860.77 yuan, and 978,122.98 yuan respectively.
     Pursuant to Article 4 of the “Notice of MOF and STA on Printing and Distributing the ‘Announcement on VAT Policy for
Improving Comprehensive Utilization of Resources’” (Announcement No. 40, 2021 of MOF and STA), since March 1, 2022,
enterprises rendering sewage treatment services are entitled to enjoy VAT refund upon collection policy or VAT exemption policy.
The subsidiaries Huaqingyuan Company, Foshan Shunde District Huaying Environmental Water Co., Ltd., Foshan Shunde District
Yuanrun Water Environmental Protection Co., Ltd. and Foshan Shunde Huabo Environmental Water Co., Ltd. have adopted VAT
exemption policy since March 1, 2022.
     (4) Pursuant to Article 2 of the “Notice of MOF and STA on Printing and Distributing the ‘VAT Preferential Catalog of Products
and Services for Comprehensive Utilization of Resources’” (Cai Shui [2015] No. 78), enterprises producing electricity and heat
products with fuel from garbage and biogas resources produced by garbage fermentation are entitled to enjoy 100% VAT refund upon
collection. Pursuant to Article 5, enterprises rendering garbage treatment and sewage treatment services are entitled to enjoy 70%
VAT refund upon collection. The subsidiary Lianjiang Company received VAT refund upon collection of 1,560,533.72 yuan.
     (5) Pursuant to the “Measures for the Implementation of the Pilot Implementation of VAT Reform for the Transportation
Industry and Certain Modern Service Industries” (Cai Shui [2011] No. 111), revenue from technology transfer, technology
development, and related technical consulting, and technical service businesses is exempt from VAT. In 2022, the subsidiary
Shenzhen Dingzhu Environmental Technology Co., Ltd. meets the condition and is exempt from VAT.


     3. Urban land use tax
     Pursuant to the “Several Opinions on Deepening the Reform of Optimal Allocation of Resource Factors in Manufacturing
Enterprises” issued by the Office of the People’s Government of Zhejiang Province (Zhe Zheng Ban Fa [2019] No. 62), the
Company’s subsidiary Shangfeng Industrial Company meets the conditions of tax incentives and enjoys 100% exemption for land
use tax in 2022.


V. Notes to items of consolidated financial statements
     (I) Notes to items of the consolidated balance sheet
     1. Cash and bank balances
     (1) Details

  Items                                                                 Closing balance                      Opening balance

Cash on hand                                                                           84,414.54                             89,806.02

Cash in bank                                                                    4,590,418,271.45                     4,190,857,415.70

Other cash and bank balances                                                      137,700,844.47                       392,298,149.30

  Total                                                                         4,728,203,530.46                     4,583,245,371.02

      Including: Deposited overseas                                                 3,949,867.33                          4,464,479.35
     (2) Other remarks
     1) At the balance sheet date, cash in bank included funds frozen due to lawsuits of 1,100,000.00 yuan and engineering escrow
accounts not available for separate use of 9,107,818.42 yuan, which was with use restrictions.
     2) At the balance sheet date, other cash and bank balances included deposits for notes of 46,878,240.34 yuan, deposits for letters
of guarantee of 87,619,095.60 yuan, engineering deposits of 927,865.56 yuan, ETC deposits of 3,000.00 yuan, deposits for buyer’s
credit of 901,432.50 yuan and deposits for land reclamation of 1,000,832.05 yuan, which were with use restrictions.


     2. Notes receivable

                                                                 148
    (1) Details
    1) Details on categories

                                                                                           Closing balance

                                                           Book balance                      Provision for bad debts
  Categories
                                                                                                              Provision         Carrying amount
                                                   Amount               % to total           Amount           proportion
                                                                                                                 (%)
Receivables with provision for bad debts
                                                  15,111,625.30             100.00          1,545,919.08          10.23           13,565,706.22
made on a collective basis
Including: Bank acceptance                         6,474,284.28             42.84                                                  6,474,284.28

             Trade acceptance                      8,637,341.02             57.16           1,545,919.08          17.90            7,091,421.94

  Total                                           15,111,625.30             100.00          1,545,919.08          10.23           13,565,706.22
    (Continued)

                                                                                     Opening balance

  Categories                                      Book balance                           Provision for bad debts
                                                                                                          Provision          Carrying amount
                                               Amount            % to total             Amount
                                                                                                        proportion (%)
Receivables with provision for bad
                                              57,247,027.23       100.00                2,844,373.98          4.97                54,402,653.25
debts made on a collective basis
Including: Bank acceptance                      6,412,054.79          11.20                                                        6,412,054.79

             Trade acceptance                 50,834,972.44           88.80             2,844,373.98          5.60                47,990,598.46

  Total                                       57,247,027.23       100.00                2,844,373.98          4.97                54,402,653.25
    2) Notes receivable with provision for bad debts made on a collective basis

                                                                                     Closing balance
  Items
                                                Book balance                    Provision for bad debts              Provision proportion (%)

Bank acceptance portfolio                                6,474,284.28

Trade acceptance portfolio                               8,637,341.02                          1,545,919.08                     17.90

  Subtotal                                              15,111,625.30                          1,545,919.08                     10.23



     (2) Changes in provision for bad debts
    1) Details

                         Opening                           Increase                                    Decrease                         Closing
  Items
                         balance              Accrual          Recovery        Others      Reversal     Write-off      Others           balance

Trade acceptance
                        2,844,373.98       -1,298,454.90                                                                           1,545,919.08
portfolio
  Total                 2,844,373.98       -1,298,454.90                                                                           1,545,919.08
    2) No provision for bad debts collected or reversed in the current period.
    (3) Endorsed or discounted but undue notes at the balance sheet date

  Items                                            Closing balance derecognized                       Closing balance not yet derecognized

Bank acceptance                                                                                                                    2,732,733.00

Trade acceptance                                                                                                                   5,422,499.62

  Subtotal                                                                                                                         8,155,232.62
    Due to the fact that the acceptor of bank acceptance is commercial bank, which is of high credit level, there is very little

                                                                      149
possibility of failure in recoverability when it is due. Based on this fact, the Company derecognized the endorsed or discounted bank
acceptance. However, if any bank acceptance is not recoverable when it is due, the Company still holds joint liability on such
acceptance, according to the China Commercial Instrument Law.
     (4) Notes receivable transferred to accounts receivable due to non-performance of issuer

  Items                                                                                          Amount transferred

Trade acceptance                                                                                                            10,308,511.28

  Subtotal                                                                                                                  10,308,511.28


     3. Accounts receivable
     (1) Details
     1) Details on categories

                                                                             Closing balance

  Categories                            Book balance                            Provision for bad debts
                                                           % to                                  Provision            Carrying amount
                                    Amount                                   Amount
                                                           total                               proportion (%)
Receivables with
provision made on an                  26,702,254.77        0.43              16,482,074.94          61.73                   10,220,179.83
individual basis
Receivables with
provision made on a                6,183,346,508.55        99.57            567,774,216.01          9.18                5,615,572,292.54
collective basis
  Total                            6,210,048,763.32      100.00             584,256,290.95          9.41                5,625,792,472.37
(Continued)

                                                                            Opening balance

  Categories                            Book balance                            Provision for bad debts
                                                                                             Provision proportion     Carrying amount
                                     Amount            % to total            Amount
                                                                                                     (%)
Receivables with
provision made on an                   5,544,902.60        0.10               5,544,902.60         100.00
individual basis
Receivables with
provision made on a                5,418,868,812.39        99.90            472,163,848.68          8.71                4,946,704,963.71
collective basis
  Total                            5,424,413,714.99      100.00             477,708,751.28          8.81                4,946,704,963.71
     2) Accounts receivable with provision made on an individual basis
                                                                   Provision for bad      Provision proportion
  Debtors                               Book balance                                                                       Reasons
                                                                         debts                    (%)
Jilin Yongle Environmental                                                                                          Expected credit
                                            9,196,000.00                  4,598,000.00           50.00
Protection Technology Co., Ltd.                                                                                     losses.
Changchun Kunhong Construction                                                                                      Expected credit
                                            6,680,359.67                  3,340,179.84           50.00
Machinery Co., Ltd.                                                                                                 losses.
Jiangsu Provincial Construction
                                            4,564,000.00                  2,282,000.00           50.00              Expected credit losses
Group Co., Ltd.
Maanshan Ruiheng Material                                                                                           Expected to be
                                            2,137,100.00                  2,137,100.00           100.00
Trading Co., Ltd.                                                                                                   irrecoverable.
Kunming Jialize Characteristic                                                                                      Expected to be
                                            1,330,000.00                  1,330,000.00           100.00
Town Real Estate Co., Ltd.                                                                                          irrecoverable.
                                                                                                                    Expected to be
Others                                      2,794,795.10                  2,794,795.10           100.00
                                                                                                                    irrecoverable.
  Subtotal                                 26,702,254.77                16,482,074.94            61.73
     3) Accounts receivable with provision for bad debts made on a collective basis



                                                                    150
                                                                                    Closing balance
  Items
                                                    Book balance              Provision for bad debts          Provision proportion (%)

Portfolio grouped with ages                          5,637,281,540.29                   560,509,940.46                       9.94
Portfolio grouped with commercial
                                                       470,296,266.41                      7,264,275.55                      1.54
factoring receivable
Portfolio grouped with government grants
                                                        75,768,701.85
receivable for new energy vehicles
  Subtotal                                           6,183,346,508.55                   567,774,216.01                       9.18
       4) Accounts receivable with provision made on a collective basis using age analysis method

                                                                                  Closing balance
  Ages
                                                 Book balance                 Provision for bad debts          Provision proportion (%)

Within 1 year                                        4,234,275,752.50                   211,713,787.59                       5.00

1-2 years                                              808,922,667.80                    80,892,266.78                      10.00

2-3 years                                              325,458,501.17                    97,637,550.35                      30.00

3-5 years                                              196,716,566.15                    98,358,283.07                      50.00

Over 5 years                                            71,908,052.67                    71,908,052.67                      100.00

  Subtotal                                           5,637,281,540.29                   560,509,940.46                       9.94
       5) Commercial factoring portfolio grouped by five-level classification

                                                                          Closing balance
Five-level classification                                    Unrealized financing          Provision for bad          Provision proportion
                                    Book balance
                                                                   income                        debts                        (%)
Pass                                     456,307,495.83                                             6,844,612.44                1.50

Special-mention                           13,988,770.58                                               419,663.11                3.00

  Subtotal                               470,296,266.41                                             7,264,275.55                1.54
       (2) Age analysis

  Ages                                                                                        Closing book balance

Within 1 year                                                                                                               4,708,241,417.53

1-2 years                                                                                                                     892,266,330.70

2-3 years                                                                                                                     336,117,089.17

3-5 years                                                                                                                     199,203,953.15

Over 5 years                                                                                                                   74,219,972.77

  Total                                                                                                                     6,210,048,763.32
       (3) Changes in provision for bad debts

                                                       Increase                                  Decrease
                          Opening                                                                                                   Closing
  Items                                                              Others
                          balance         Accrual      Recovery                    Reversal       Write-off        Others           balance
                                                                     [Note]
Receivables
with provision
                   5,544,902.60        10,937,172.34                                                                           16,482,074.94
made on an
individual basis
Receivables
with provision
                 472,163,848.68        98,799,645.29               3,554,130.25                 6,743,408.21                  567,774,216.01
made on a
collective


                                                                   151
                                                         Increase                                   Decrease
                        Opening                                                                                                  Closing
  Items                                                                  Others
                        balance             Accrual       Recovery                     Reversal      Write-off      Others       balance
                                                                         [Note]
basis

  Total              477,708,751.28     109,736,817.63                 3,554,130.25                6,743,408.21              584,256,290.95
        Note: Other increase refers to balance transferred in due to business combination of Yolsh Company and Lianjiang Company in
the current period.
        (4) Accounts receivable written off in the current period
        1) Accounts receivable actually written off in the current period totaled 6,732,408.21 yuan.
        2) Significant accounts receivable written off in the current period
                                                                                                                        Whether arising from
                                  Nature of                                                     Write-off procedures
  Debtors                                         Amount written off Reasons for write-off                                 related party
                                 receivables                                                         performed
                                                                                                                           transactions
Shenzhen Sustained Way
                                Payments for                             Expected to be         Approval of the
Environmental Industry                                  3,268,000.00                                                             No
                                   goods                                 irrecoverable.         Management.
Co., Ltd.
Shenzhen Jieya
                                Payments for                             Expected to be         Approval of the
Environmental Protection                                  573,432.50                                                             No
                                   goods                                 irrecoverable.         Management.
Industry Co., Ltd.
Jinan Lijie Cleaning Co.,       Payments for                             Expected to be         Approval of the
                                                          483,700.00                                                             No
Ltd.                               goods                                 irrecoverable.         Management.
Xiamen Xiang’an
Municipal Group                 Payments for                             Expected to be         Approval of the
                                                          450,000.00                                                             No
Environmental                      goods                                 irrecoverable.         Management.
Engineering Co., Ltd.
Shenzhen EIT Intelligent
                                Payments for                             Expected to be         Approval of the
City Operation Group                                      390,000.00                                                             No
                                   goods                                 irrecoverable.         Management.
Co., Ltd.
Shenzhen SYS
                                Payments for                             Expected to be         Approval of the
Environmental Industry                                    325,500.00                                                             No
                                   goods                                 irrecoverable.         Management.
Group Co., Ltd.
Chengdu Shiyang
                                Payments for                             Expected to be         Approval of the
Environmental Sanitation                                  230,400.00                                                             No
                                   goods                                 irrecoverable.         Management.
Service Co., Ltd
  Subtotal                                              5,721,032.50
        (5) Details of the top 5 debtors with largest balances
                                                                          Proportion to the total balance
  Debtors                                      Book balance                                                       Provision for bad debts
                                                                           of accounts receivable (%)
No. 1                                                 200,788,348.94                   3.23                                     8,569,313.68

No. 2                                                 112,174,999.99                   1.81                                     1,682,625.00

No. 3                                                  97,577,518.13                   1.57                                     5,742,670.82

No. 4                                                  96,146,633.46                   1.55                                    11,195,690.69

No. 5                                                  75,768,701.85                   1.22

  Subtotal                                            582,456,202.37                   9.38                                    27,190,300.19
        (6) Accounts receivable derecognized due to financial assets transfer
                                                                             Gains or losses related to         Ways of financial assets
  Items                                  Amount derecognized
                                                                                  derecognition                         transfer
                                                                                                            Factoring of accounts
Sales of ventilation
                                                        6,864,481.85                          -401,852.13   receivable without recourse
equipment
                                                                                                            right.
                                                                                                            Factoring of accounts
Sales of sanitation vehicles                          727,566,841.07                      -65,516,521.10    receivable without recourse
                                                                                                            right.
  Subtotal                                            734,431,322.92                      -65,918,373.23

                                                                       152
     4. Receivables financing
     (1) Details

                                                   Closing balance                                           Opening balance
  Items                                                      Accumulated provision for                             Accumulated provision for
                                    Carrying amount                                           Carrying amount
                                                                credit impairment                                     credit impairment
Bank acceptance                         107,316,593.41                                          296,379,694.57

  Total                                 107,316,593.41                                          296,379,694.57
     (2) Pledged notes at the balance sheet date

  Items                                                                                   Closing balance of pledged notes

Bank acceptance                                                                                                                 42,293,141.00

  Subtotal                                                                                                                      42,293,141.00
     (3) Endorsed or discounted but undue notes at the balance sheet date

  Items                                                                                       Closing balance derecognized

Bank acceptance                                                                                                                128,363,287.12

  Subtotal                                                                                                                     128,363,287.12
     Due to the fact that the acceptor of bank acceptance is commercial bank, which is of high credit level, there is very little
possibility of failure in recoverability when it is due. Based on this fact, the Company derecognized the endorsed or discounted bank
acceptance. However, if any bank acceptance is not recoverable when it is due, the Company still holds joint liability on such
acceptance, according to the China Commercial Instrument Law.
     5. Advances paid
     (1) Age analysis
     1) Details

                                     Closing balance                                                  Opening balance
  Ages                                                                                                           Provision
                                    % to     Provision for       Carrying                            % to                         Carrying
                   Book balance                                                  Book balance                       for
                                    total     impairment         amount                              total                        amount
                                                                                                                impairment
Within 1
                   186,619,989.22   97.01                     186,619,989.22    124,131,454.89       96.52                     124,131,454.89
year
1-2 years            4,515,793.00    2.35                       4,515,793.00       3,969,968.37       3.09                       3,969,968.37

2-3 years            1,175,026.94    0.61                       1,175,026.94         67,855.05        0.05                          67,855.05

Over 3 years            49,733.08    0.03                          49,733.08        435,104.35        0.34                        435,104.35

  Total            192,360,542.24   100.00                    192,360,542.24    128,604,382.66      100.00                     128,604,382.66
     2) No unsettled significant advances paid with age over one year.
     (2) Details of the top 5 debtors with largest balances
                                                                                                Proportion to the total balance of advances
  Debtors                                                        Book balance
                                                                                                                 paid (%)
No. 1                                                                          9,352,256.00                         4.86

No. 2                                                                          6,600,000.00                         3.43

No. 3                                                                          5,940,000.00                         3.09

No. 4                                                                          4,133,064.10                         2.15

No. 5                                                                          3,116,814.17                         1.62



                                                                    153
                                                                                           Proportion to the total balance of advances
  Debtors                                                    Book balance
                                                                                                            paid (%)
  Subtotal                                                                29,142,134.27                          15.15


    6. Other receivables
    (1) Details
    1) Details on categories

                                                                            Closing balance

  Categories                               Book balance                        Provision for bad debts
                                                                                                 Provision            Carrying amount
                                       Amount             % to total          Amount
                                                                                               proportion (%)
Receivables with provision
made on an individual basis
Receivables with provision
                                      425,375,694.15        100.00           39,753,423.15            9.35                385,622,271.00
made on a collective basis
  Total                               425,375,694.15        100.00           39,753,423.15            9.35                385,622,271.00
(Continued)

                                                                            Opening balance

                                           Book balance                        Provision for bad debts
  Categories
                                                                                                 Provision            Carrying amount
                                       Amount             % to total          Amount             proportion
                                                                                                    (%)
Receivables with provision
made on an individual basis
Receivables with provision
                                       541,370,425.50       100.00            32,206,299.23           5.95                509,164,126.27
made on a collective basis
  Total                                541,370,425.50       100.00            32,206,299.23           5.95                509,164,126.27
    2) Other receivables with provision made on a collective basis
    a. Parent company

                                                                         Closing balance
 Ages
                                   Book balance                      Provision for bad debts                 Provision proportion (%)
Portfolio grouped with
performance                               113,460,620.00
compensation
Portfolio grouped with
                                            33,439,539.20                           1,664,734.56                      4.98
ages
Including: 1-180 days                       27,553,285.28

    1-2 years                                  829,381.49                              82,938.15                      10.00

    2-3 years                                4,763,199.03                           1,428,959.71                      30.00

    3-5 years                                  273,673.40                             136,836.70                      50.00

    Over 5 years                                20,000.00                              16,000.00                      80.00

  Subtotal                                146,900,159.20                            1,664,734.56                      1.13
    b. Ventilation equipment manufacturing industry and environmental integrated industry

                                                                               Closing balance
  Ages
                                              Book balance                  Provision for bad debts            Provision proportion (%)

Portfolio grouped with ages                         278,475,534.95                     38,088,688.59                     13.68



                                                               154
                                                                                  Closing balance
  Ages
                                                Book balance                 Provision for bad debts          Provision proportion (%)

Including: Within 1 year                              168,395,746.55                       8,420,041.44                5.00

      1-2 years                                        57,254,890.72                       5,725,489.07                10.00

      2-3 years                                        22,546,852.80                       6,764,055.84                30.00

      3-5 years                                        26,197,885.28                     13,098,942.64                 50.00

      Over 5 years                                       4,080,159.60                      4,080,159.60               100.00

  Subtotal                                            278,475,534.95                     38,088,688.59                 13.68
     (2) Changes in provision for bad debts

                                            Stage 1                     Stage 2                     Stage 3
  Items                                                       Lifetime expected credit                                    Subtotal
                                      12 month expected                                Lifetime expected credit
                                                                  losses (credit not
                                        credit losses                                  losses (credit impaired)
                                                                      impaired)
Opening balance                               10,946,143.63              4,064,577.60                17,195,578.00        32,206,299.23
Opening balance in the current
period
--Transferred to stage 2                      -2,879,332.17              2,879,332.17

--Transferred to stage 3                                                 -2,731,005.18                2,731,005.18

--Reversed to stage 2

--Reversed to stage 1
Provision made in the current
                                                353,229.98               1,595,522.63                 3,099,831.78         5,048,584.39
period
Provision recovered in the
current period
Provision reversed in the current
period
Provision written off in the
                                                                                                         75,000.00              75,000.00
current period
Other changes [Note]                                                                                  2,573,539.53         2,573,539.53

Closing balance                                8,420,041.44              5,808,427.22                25,524,954.49        39,753,423.15
     Note: Other increase refers to balance transferred in due to business combination of Yolsh Company and Lianjiang Company in
the current period.
     (3) Other receivables actually written off in the current period totaled 75,000.00 yuan.
     (4) Other receivables categorized by nature

  Nature of receivables                                           Closing balance                             Opening balance
Temporary advance payment receivable and petty
                                                                              189,730,555.74                             108,556,330.04
cash
Security deposits                                                             115,535,012.45                             129,986,238.82

Performance compensation                                                      113,460,620.00                             163,460,620.00

Call loans receivable                                                                                                     13,046,550.18

Equity transfer payments                                                                                                 115,100,000.00

Debt transfer payments                                                                                                     9,000,000.00

Others                                                                            6,649,505.96                             2,220,686.46

  Total                                                                       425,375,694.15                             541,370,425.50


                                                                  155
        (5) Details of the top 5 debtors with largest balances
                                                                                                  Proportion to the total
                                                                                                                                Provision for bad
 Debtors              Nature of receivables           Book balance                 Ages              balance of other
                                                                                                                                      debts
                                                                                                     receivables (%)
                         Performance
                       compensation and
No. 1                                                  113,792,911.19            [Note 1]                   26.75                      166,145.60
                      temporary advance
                      payment receivable
                      Temporary advance
No. 2               payment receivable and                9,960,076.90          1-180 days                   2.34
                          petty cash
No. 3                   Security deposits                 8,675,600.00           [Note 2]                    2.04                    2,135,180.00
                      Temporary advance
No. 4               payment receivable and                7,323,619.46          1-180 days                   1.72
                         petty cash
                      Temporary advance
No. 5               payment receivable and                7,190,173.17         Within 1 year                 1.69                      359,508.66
                         petty cash
 Subtotal                                              146,942,380.72                                       34.54                    2,660,834.26
     Note 1: It includes 113,460,620.00 yuan as performance compensation with age of 1 to 2 years and 332,291.19 yuan as
temporary advance payment receivable with age of 3 to 5 years.
     Note 2: It includes 1,870,000.00 yuan as security deposits with age within 1 year and 6,805,600.00 yuan as security deposits
with age of 2 to 3 years.


     7. Inventories
     (1) Details

                                            Closing balance                                                  Opening balance
  Items                                       Provision for         Carrying                                   Provision for
                         Book balance                                                     Book balance                           Carrying amount
                                               write-down           amount                                      write-down
Raw materials           179,291,553.12        10,856,535.28      168,435,017.84           147,473,632.02      10,760,156.11        136,713,475.91

Work in process         177,447,500.50         2,633,928.18      174,813,572.32           181,227,151.81       2,023,841.04        179,203,310.77

Goods on hand           543,123,849.45        16,365,369.64      526,758,479.81           809,403,199.63      18,453,429.33        790,949,770.30
Materials on
consignment for             710,664.71                               710,664.71              2,741,520.48                            2,741,520.48
further processing
Cost to fulfill a
                         10,320,302.27                            10,320,302.27             14,541,641.55                           14,541,641.55
contract
  Total                 910,893,870.05        29,855,833.10      881,038,036.95       1,155,387,145.49        31,237,426.48      1,124,149,719.01
        (2) Provision for inventory write-down
     1) Details

                                                              Increase                            Decrease
                                 Opening
  Items                                                                               Reversal or write-                       Closing balance
                                 balance               Accrual            Others                               Others
                                                                                             off
Raw materials                 10,760,156.11            5,916,565.11                          5,820,185.94                           10,856,535.28

Work in process                2,023,841.04            2,419,415.75                          1,809,328.61                            2,633,928.18

Goods on hand                 18,453,429.33            8,449,741.13                         10,537,800.82                           16,365,369.64

  Total                       31,237,426.48           16,785,721.99                         18,167,315.37                           29,855,833.10
     2) Determination basis of net realizable value and reasons for the reversal or write-off of provision for inventory write-down
                                                                                                      Reasons for write-off of provision for
  Items                                       Determination basis of net realizable value
                                                                                                             inventory write-down


                                                                         156
                                                                                                Reasons for write-off of provision for
  Items                                     Determination basis of net realizable value
                                                                                                        inventory write-down
                                            Estimated selling price of relevant finished       Inventories with provision for inventory
                                          goods less cost to be incurred upon completion,      write-down made at the beginning of the
Raw materials, work in process
                                           estimated selling expenses, and relevant taxes       period were used or sold in the current
                                                           and surcharges                                      period.
                                            Estimated selling price of relevant finished       Inventories with provision for inventory
Goods on hand                                goods less estimated selling expenses, and        write-down made at the beginning of the
                                                   relevant taxes and surcharges                period were sold in the current period.
     (3) Cost to fulfill a contract

  Items                                        Opening balance               Increase          Carried forward            Closing balance
Kitchen delivery project of Futian
                                                       7,541,198.74           1,713,298.79          9,254,497.53
District, Shenzhen City
MVR concentrated solution project of
                                                       2,382,149.87            404,351.39           2,786,501.26
Liling City
Leachate full-scale quantitative
treatment emergency operation project                  1,242,114.60            175,849.38           1,417,963.98
of Qingyuan City
Township sewage delivery project
                                                        907,876.13                4,740.90                4,128.08               908,488.95
phase II of Hanshou County
Leachate delivery project of Xi’an
                                                        769,578.05             362,875.63              14,601.20               1,117,852.48
Chanba Transfer Station
Leachate delivery project of Jin’an
                                                        449,012.13                                    449,012.13
District, Fuzhou City
Leachate delivery project of Fuzhou
                                                                              2,063,811.25                4,634.80             2,059,176.45
Qingliangshan Transfer Station
Well-point equipment sales of Leiyang
                                                                              1,815,112.42                                     1,815,112.42
City
Equipment sales of Yongshun County,
Xiangxi Tujia and Miao Autonomous
                                                                              1,450,156.90                                     1,450,156.90
Prefecture - township sewage
(Wanping)
Others                                                 1,249,712.03           9,812,255.53          8,092,452.49               2,969,515.07

  Subtotal                                         14,541,641.55             17,802,452.19         22,023,791.47              10,320,302.27


     8. Contract assets
     (1) Details

                                      Closing balance                                             Opening balance
  Items                                Provision for                                            Provision for
                   Book balance                          Carrying amount       Book balance                              Carrying amount
                                        impairment                                               impairment
Quality
guarantee
                  116,355,489.32       15,331,634.99      101,023,854.33      154,503,581.34    14,135,778.81                140,367,802.53
deposits
receivable
  Total           116,355,489.32       15,331,634.99      101,023,854.33      154,503,581.34    14,135,778.81                140,367,802.53
     (2) No significant changes in carrying amount of contract assets in the current period.
     (3) Details on provision for impairment of contract assets
     1) Details

                                                              Increase                         Decrease
  Items                     Opening balance                                                                                Closing balance
                                                         Accrual         Others     Reversal   Write-off        Others

On a collective basis             14,135,778.81         1,195,856.18                                                          15,331,634.99

  Total                           14,135,778.81         1,195,856.18                                                          15,331,634.99
     2) Contract assets with provision for impairment made on a collective basis




                                                                       157
                                                                                  Closing balance
  Items
                                          Book balance                  Provision for impairment               Provision proportion (%)
Portfolio grouped with quality
                                                116,355,489.32                          15,331,634.99                  13.18
guarantee deposits
  Subtotal                                      116,355,489.32                          15,331,634.99                  13.18


     9. Non-current assets due within one year

                                                                               Closing balance
  Items                                                    Unrecognized          Provision for bad                             Discount rate
                                    Book balance                                                        Carrying amount
                                                          finance income               debts                                    range (%)
Sales of goods in
                                      433,440,778.60          8,785,866.67          21,166,538.93         403,488,373.00         4.30-4.65
installments
Payments for finance lease             58,791,768.45          2,263,633.33             895,847.05           55,632,288.07        4.30-4.65
Factoring of receivables
                                       17,823,638.14              171,119.36           267,354.57           17,385,164.21        4.30-4.65
financing
  Total                               510,056,185.19         11,220,619.36          22,329,740.55         476,505,825.28
(Continued)

                                                                               Opening balance
  Items                                                    Unrecognized          Provision for bad                             Discount rate
                                    Book balance                                                        Carrying amount
                                                          finance income               debts                                    range (%)
Sales of goods in
                                      549,703,610.72         12,319,023.60          27,555,680.53         509,828,906.59           4.75
installments
Payments for finance lease            170,788,078.94          4,223,522.86           2,561,821.18         164,002,734.90           4.75
Factoring of receivables
                                       83,062,917.65         15,730,748.85           1,245,943.76           66,086,225.04          4.75
financing
  Total                               803,554,607.31         32,273,295.31          31,363,445.47         739,917,866.53


     10. Other current assets
     (1) Details

                                           Closing balance                                               Opening balance
  Items                                      Provision for                                                 Provision for
                      Book balance                                Carrying amount      Book balance                         Carrying amount
                                              impairment                                                    impairment
Input VAT to be
credited and
                      482,764,023.99                               482,764,023.99      477,804,757.55                         477,804,757.55
excess input
VAT credits
Cost to obtain a
                           9,306,113.04                              9,306,113.04       14,900,623.62                          14,900,623.62
contract
Listing expenses
of subsidiary              5,380,660.39                              5,380,660.39
spun off
  Total               497,450,797.42                               497,450,797.42      492,705,381.17                         492,705,381.17
     (2) Costs to obtain a contract
                                                                                                     Provision for
  Items                    Opening balance             Increase             Amortization                                    Closing balance
                                                                                                      impairment
Costs to obtain a
                                14,900,623.62        40,082,864.75             45,677,375.33                                    9,306,113.04
contract
  Subtotal                      14,900,623.62        40,082,864.75             45,677,375.33                                    9,306,113.04


     11. Long-term receivables
     (1) Details

                                                                      158
                                                                             Closing balance
  Items                                                 Unrealized finance     Provision for bad                                Discount rate
                                  Book balance                                                          Carrying amount
                                                             income                  debts                                       range (%)
Sales of goods in
                                     607,626,695.18        28,919,805.27           101,644,682.13         477,062,207.78            4.30-4.65
installments
Guaranteed collection
                                      32,146,788.99          3,759,737.26            1,607,339.45            26,779,712.28          4.30-4.65
amount for BOT projects
Payments for finance lease            40,885,220.88          2,877,273.01              682,107.05            37,325,840.82          4.30-4.65
Factoring of receivables
                                     421,616,855.59        24,329,491.82             6,324,252.83         390,963,110.94            4.30-4.65
financing
  Total                          1,102,275,560.64          59,886,307.36           110,258,381.46         932,130,871.82
(Continued)

                                                                             Opening balance
  Items                                                 Unrealized finance      Provision for bad                               Discount rate
                                 Book balance                                                           Carrying amount
                                                             income                   debts                                      range (%)
Sales of goods in
                                    784,543,617.37           38,122,001.69         105,634,590.61         640,787,025.07              4.75
installments
Guaranteed collection
                                    165,505,733.94           21,853,615.22            8,275,286.70        135,376,832.02              4.75
amount for BOT projects
Payments for finance
                                     58,523,840.64            1,784,539.32             877,857.61            55,861,443.71            4.75
lease
Factoring of receivables
                                    212,483,560.05           24,075,069.92            3,187,253.40        185,221,236.73              4.75
financing
  Total                         1,221,056,752.00             85,835,226.15         117,974,988.32        1,017,246,537.53
     (2) Changes in provision for bad debts
     1) Details

                                                        Increase                                  Decrease
  Items            Opening balance                                                                                            Closing balance
                                          Accrual          Recovery      Others      Reversal       Write-off    Others
Provision
made on a           117,974,988.32      -7,716,606.86                                                                         110,258,381.46
collective basis
   Total            117,974,988.32      -7,716,606.86                                                                         110,258,381.46
     2) Long-term receivables with provision for bad debts made on a collective basis using age analysis method

                                                                                Closing balance
  Ages
                                              Book balance                    Provision for bad debts            Provision proportion (%)

Payments undue                                          221,372,398.91                     11,068,619.95                     5.00

Payments due                                            418,401,085.26                     92,183,401.63                     22.03

  Subtotal                                              639,773,484.17                    103,252,021.58                     16.14
     3) Long-term receivables with provision for bad debts using the five-level classification

                                                                                  Closing balance
    Items
                                              Book balance                     Provision for bad debts           Provision proportion (%)
 Portfolio grouped with finance
                                                         40,885,220.88                          682,107.05                   1.67
 lease payment
 Portfolio grouped with factoring
                                                        421,616,855.59                      6,324,252.83                     1.50
 of receivables financing
    Subtotal                                            462,502,076.47                      7,006,359.88                     1.51


     12. Long-term equity investments
     (1) Categories

                                                                   159
                                       Closing balance                                               Opening balance
  Items                                 Provision for                                                 Provision for
                   Book balance                            Carrying amount         Book balance                        Carrying amount
                                         impairment                                                    impairment
Investments in
                    676,829,959.84                           676,829,959.84        603,580,781.31                        603,580,781.31
associates
  Total             676,829,959.84                           676,829,959.84        603,580,781.31                        603,580,781.31
    (2) Details

                                                                                      Increase/Decrease
                                      Opening                                           Investment income
  Investees                                              Investments      Investments                           Adjustment in other
                                      balance                                            recognized under
                                                          increased        decreased                           comprehensive income
                                                                                           equity method
Associates

Lianjiang Company                    44,578,478.42      208,271,314.25                      1,283,929.81
Tengine Innovation (Beijing)
                                  30,205,115.36                                              -573,592.29
Monitoring Instrument Co., Ltd.
Guangdong Shunkong
Environmental Investment Co., 195,130,199.37                                               28,071,555.60
Ltd.
Guangdong Tianshu New
                                   2,688,700.75                                            -2,688,700.75
Energy Technology Co., Ltd.
Shantou Zoomlion Ruikang
Environmental Sanitation          19,550,920.59                                             2,409,925.57
Service Co., Ltd.
Shantou Chaoyang District
Zoomlion Ruikang
                                  19,433,725.73          11,843,311.55                           142,662.64
Environmental Sanitation
Service Co., Ltd.
Changsha Cowa Zoomlion
                                   5,429,199.88                                              -535,617.37
Intelligent Technology Co., Ltd.
Guangdong Liangke
Environmental Engineering Co., 34,109,839.80                                               -1,414,239.82
Ltd.
Guangxi Zoomlion Guilv Urban
                                   2,136,327.10                                                  225,424.74
Environmental Service Co., Ltd.
Shenzhen Yingmei City
                                      30,000.00                                                   -1,834.71
Housekeeper Co., Ltd.
Foshan Yingtong Electrical
                                 250,288,274.31                                           -21,355,020.22
Materials Co., Ltd.
China Urban Institute (Beijing)
Environmental Technology Co.,                            96,346,250.00                      1,040,896.22
Ltd.
Beijing Xingyun Zhixing
                                                         10,000,000.00                       -517,922.14
Technology Co., Ltd.
Guangdong Yingling Testing
Technology Service Co., Ltd.
[Note 2]
  Total                           603,580,781.31        326,460,875.80                      6,087,467.28
    (Continued)

                                                          Increase/Decrease
                                                                                                                       Closing balance
 Investees                                      Cash dividend/                                         Closing balance of provision for
                                  Changes in                       Provision for
                                               Profit declared for                      Others                           impairment
                                  other equity                      impairment
                                                  distribution
Associates

Lianjiang Company [Note 1]         51,330.46         2,543,348.57                   251,641,704.37
Tengine Innovation (Beijing)
                                                                                                         29,631,523.07
Monitoring Instrument Co., Ltd.
Guangdong Shunkong                                   5,165,442.07                                      218,036,312.90


                                                                    160
                                                          Increase/Decrease
                                                                                                                       Closing balance
 Investees                                       Cash dividend/                                        Closing balance of provision for
                                   Changes in                       Provision for
                                                Profit declared for                      Others                          impairment
                                   other equity                      impairment
                                                   distribution
Environmental Investment Co.,
Ltd.
Guangdong Tianshu New
Energy Technology Co., Ltd.
Shantou Zoomlion Ruikang
Environmental Sanitation                                                                                 21,960,846.16
Service Co., Ltd.
Shantou Chaoyang District
Zoomlion Ruikang
                                                                                                         31,419,699.92
Environmental Sanitation
Service Co., Ltd.
Changsha Cowa Zoomlion
                                                                                                          4,893,582.51
Intelligent Technology Co., Ltd.
Guangdong Liangke
Environmental Engineering Co.,                                                                           32,695,599.98
Ltd.
Guangxi Zoomlion Guilv Urban
                                                                                                          2,361,751.84
Environmental Service Co., Ltd.
Shenzhen Yingmei City
                                                                                                             28,165.29
Housekeeper Co., Ltd.
Foshan Yingtong Electrical
                                                                                                        228,933,254.09
Materials Co., Ltd.
China Urban Institute (Beijing)
Environmental Technology Co.,                                                                            97,387,146.22
Ltd.
Beijing Xingyun Zhixing
                                                                                                          9,482,077.86
Technology Co., Ltd.
Guangdong Yingling Testing
Technology Service Co., Ltd.
[Note 2]
 Total                              51,330.46       7,708,790.64                      251,641,704.37    676,829,959.84
    Note 1: The Company acquired 50% of equity of Lianjiang Company through its subsidiary Guangdong Infore Environmental
Investment Co., Ltd. in February 2022 and included Lianjiang Company into the consolidation scope since March 2022. Since then,
the Company changed the accounting method for long-term equity investments in Lianjiang Company from equity method to cost
method.
    Note 2: Long-term equity investments of 0.00 yuan in Guangdong Yingling Testing Technology Service Co., Ltd. was due to its
long-term loss. The carrying amount of such long-term equity investment was adjusted to 0.00 yuan by the Company under the
equity method.


    13. Other equity instrument investments
                                                                                                  Accumulated amount of gains or losses
                                                                                Dividend          transferred from other comprehensive
  Items                               Closing balance     Opening balance                              income to retained earnings
                                                                                 income
                                                                                                       Amount              Reasons
Zhejiang Shangyu Rural
                                           800,000.00           800,000.00          414,960.00
Commercial Bank Co., Ltd.
Shenzhen Infore Environmental
Protection Industry Fund                   270,000.00           270,000.00
Management Co., Ltd.
Shenzhen Infore Environmental
Protection Industry M&A Fund            14,282,971.01        14,632,971.01
[Note]
  Subtotal                              15,352,971.01        15,702,971.01          414,960.00
    Note: As of December 31, 2022, Shenzhen Infore Environmental Protection Industry M&A Fund is still in liquidation.


                                                                   161
       14. Investment property
       (1) Details

 Items                                                                      Buildings and structures                    Total

Cost

    Opening balance                                                                      2,528,684.43                           2,528,684.43

    Increase                                                                            26,905,180.23                      26,905,180.23

    1) Transferred in from fixed assets                                                 26,905,180.23                      26,905,180.23

    Decrease                                                                               362,764.00                            362,764.00

    1) Disposal                                                                            362,764.00                            362,764.00

    Closing balance                                                                     29,071,100.66                      29,071,100.66

Accumulated depreciation and amortization

    Opening balance                                                                        690,980.75                            690,980.75

    Increase                                                                             1,388,918.95                           1,388,918.95

    1) Accrual or amortization                                                             118,676.59                            118,676.59

    2) Transferred in from fixed assets                                                  1,270,242.36                           1,270,242.36

    Decrease                                                                               114,234.07                            114,234.07

    1) Disposal                                                                            114,234.07                            114,234.07

    Closing balance                                                                      1,965,665.63                           1,965,665.63

Carrying amount

    Closing balance                                                                     27,105,435.03                      27,105,435.03

    Opening balance                                                                      1,837,703.68                           1,837,703.68
       (2) Investment property with certificate of titles being unsettled

 Items                                                           Carrying amount                         Reasons for unsettlement

Shangyu Wanda real estate                                                       1,470,497.16                  In processing.

 Subtotal                                                                       1,470,497.16


       15. Fixed assets
       (1) Details
                            Buildings and          General                              Transport          Other
  Items                                                           Special equipment                                               Total
                             structures           equipment                             facilities       equipment
Cost

   Opening balance        1,234,214,194.53     147,773,153.57       781,618,637.79    63,065,547.32     34,399,532.35   2,261,071,065.56

   Increase                 342,986,037.45      18,836,436.00       415,794,459.71     8,694,113.65      3,562,521.63     789,873,568.44

    1) Acquisition             3,645,851.54     14,375,711.91       294,827,428.84     6,368,917.72      3,562,521.63     322,780,431.64
    2) Transferred in
    from construction       339,340,185.91        3,039,068.79       62,325,777.62                                        404,705,032.32
    in progress
    3) Business
                                                  1,401,645.46       36,101,829.37     2,325,195.93                        39,828,670.76
    combination



                                                                     162
                            Buildings and         General                                Transport        Other
  Items                                                            Special equipment                                           Total
                             structures          equipment                               facilities     equipment
    4) Transferred in
                                                    20,009.84         22,539,423.88                                       22,559,433.72
    from inventories
    Decrease                 27,801,393.99       2,457,504.94         23,402,702.68     5,444,440.54      89,652.25       59,195,694.40
    1) Disposal/
                                896,213.76       2,457,504.94         20,508,595.90     5,444,440.54      89,652.25       29,396,407.39
    Scrapping
    2) Transferred
    out into                                                           2,894,106.78                                        2,894,106.78
    intangible assets
    3) Transferred
    out into
                             26,905,180.23                                                                                26,905,180.23
    investment
    property
    Closing balance      1,549,398,837.99     164,152,084.63       1,174,010,394.82    66,315,220.43   37,872,401.73   2,991,748,939.60
Accumulated
depreciation
    Opening balance         162,890,147.66     44,876,760.79         262,836,971.23    15,024,913.91   17,390,266.78    503,019,060.37

    Increase                 50,428,941.64     22,384,289.60         157,794,175.67     7,033,369.62     509,506.92     238,150,283.45

    1) Accrual               50,428,941.64     21,202,568.76         140,020,345.68     5,328,021.03     509,506.92     217,489,384.03
    2) Business
                                                 1,181,720.84         17,453,188.23     1,705,348.59                      20,340,257.66
    combination
    3) Others                                                            320,641.76                                            320,641.76

    Decrease                  1,364,011.96       1,960,750.57         10,882,856.32     3,455,727.39      44,259.99       17,707,606.23
    1) Disposal/
                                 93,769.60       1,960,750.57         10,755,095.90     3,455,727.39      44,259.99       16,309,603.45
    Scrapping
    2) Transferred
    out into                                                             127,760.42                                            127,760.42
    intangible assets
    3) Transferred
    out into
                              1,270,242.36                                                                                 1,270,242.36
    investment
    property
    Closing balance         211,955,077.34     65,300,299.82         409,748,290.58    18,602,556.14   17,855,513.71    723,461,737.59
Provision for
impairment
    Opening balance

    Increase

    Decrease

    Closing balance

Carrying amount

    Closing balance      1,337,443,760.65      98,851,784.81         764,262,104.24    47,712,664.29   20,016,888.02   2,268,287,202.01

    Opening balance      1,071,324,046.87     102,896,392.78         518,781,666.56    48,040,633.41   17,009,265.57   1,758,052,005.19
     (2) No fixed assets temporarily idle at the balance sheet date.
     (3) No fixed assets leased out under operating leases at the balance sheet date.
     (4) Fixed assets with certificate of titles being unsettled

  Items                                                             Carrying amount                      Reasons for unsettlement

Integration project plant                                                       300,293,498.89                In processing.

Employee dormitory in Lueryuan                                                  141,972,601.77                In processing.



                                                                     163
  Items                                                             Carrying amount                         Reasons for unsettlement

Bottom renovation workshop in Lueryuan                                             21,647,559.63                 In processing.

Lueryuan Exhibition Center                                                         26,765,381.16                 In processing.

Staff canteen in Lueryuan                                                          23,701,199.56                 In processing.

  Subtotal                                                                        514,380,241.01


       16. Construction in progress
       (1) Details

                                                  Closing balance                                         Opening balance
  Projects                                         Provision for       Carrying                             Provision for         Carrying
                                 Book balance                                           Book balance
                                                    impairment         amount                                impairment           amount
Integrated construction of
intelligent equipment and
                                                                                       189,748,878.58                        189,748,878.58
intelligent sanitation
services
Equipment to be
                                 16,211,018.08                       16,211,018.08       5,468,920.80                          5,468,920.80
installed
Piecemeal projects               24,862,249.60                       24,862,249.60      28,850,834.48                         28,850,834.48

  Total                          41,073,267.68                       41,073,267.68     224,068,633.86                        224,068,633.86
       2) Changes in significant projects
                                                                                        Transferred to      Transferred to
 Projects                        Budgets         Opening balance       Increase                                              Closing balance
                                                                                         fixed assets      intangible assets
Integrated construction
of intelligent equipment
                           300,000,000.00        189,748,878.58     147,501,302.90      337,250,181.48
and intelligent sanitation
services
Equipment to be
                                                   5,468,920.80      47,603,237.91       12,661,983.80      24,199,156.83     16,211,018.08
installed
Piecemeal projects                                28,850,834.48      50,815,966.29       54,792,867.04           11,684.13    24,862,249.60

  Total                                          224,068,633.86     245,920,507.10      404,705,032.32      24,210,840.96     41,073,267.68
       (Continued)
                              Accumulated Completion Accumulated amount Amount of borrowing         Annual
                                                                                                                                     Fund
 Projects                    input to budget percentage of borrowing cost cost capitalization in capitalization
                                                                                                                                    source
                                   (%)          (%)       capitalization   the current period      rate (%)
Integrated construction
of intelligent equipment
                                                                                                                                  Self-raised
and intelligent sanitation
services
Equipment to be
                                                                                                                                  Self-raised
installed
Piecemeal projects                                                                                                                Self-raised

 Total


       17. Right-of-use assets
       (1) Details

  Items                                                    Buildings and structures          Other equipment                   Total

Cost

    Opening balance                                                    28,646,420.80                     2,789,202.39         31,435,623.19




                                                                     164
  Items                                              Buildings and structures           Other equipment           Total

    Increase                                                     18,533,774.47                                  18,533,774.47

    1) Leased in                                                 12,740,668.64                                  12,740,668.64

    2) Business combination                                       5,793,105.83                                   5,793,105.83

    Decrease                                                        330,555.41                 2,789,202.39      3,119,757.80

    1) Disposal                                                     330,555.41                 2,789,202.39      3,119,757.80

    Closing balance                                              46,849,639.86                                  46,849,639.86

Accumulated depreciation

    Opening balance                                               4,608,299.09                 1,321,412.24      5,929,711.33

    Increase                                                     10,436,979.07                   489,263.38     10,926,242.45

    1) Accrual                                                    6,574,908.51                   489,263.38      7,064,171.89

    2) Business combination                                       3,862,070.56                                   3,862,070.56

    Decrease                                                         55,092.54                 1,810,675.62      1,865,768.16

    1) Disposal                                                      55,092.54                 1,810,675.62      1,865,768.16

    Closing balance                                              14,990,185.62                                  14,990,185.62

Carrying amount

    Closing balance                                              31,859,454.24                                  31,859,454.24

    Opening balance                                              24,038,121.71                 1,467,790.15     25,505,911.86


       18. Intangible assets
       (1) Details
                                                                                              Patented
  Items                        Land use right     Software             Franchise                                  Total
                                                                                             technology
Cost

   Opening balance             587,639,227.37    42,482,834.75       5,680,343,377.63       434,557,655.81    6,745,023,095.56

   Increase                      69,926,700.00   28,203,758.40       1,101,341,090.79        24,821,938.40    1,224,293,487.59

   1) Acquisition                69,926,700.00    3,857,244.58        843,596,123.76            260,000.00     917,640,068.34
   2) Transferred in
   from construction                             24,210,840.96                                                  24,210,840.96
   in process
   3) Business
                                                   135,672.86         254,850,860.25         18,578,729.79     273,565,262.90
   combination
   4) Transferred in
                                                                        2,894,106.78                             2,894,106.78
   from fixed assets
   5) Internal
   research and                                                                               5,983,208.61       5,983,208.61
   development
   Decrease                                        317,311.32           6,437,730.28                             6,755,041.60

  1) Disposal                                      317,311.32           6,437,730.28                             6,755,041.60

   Closing balance             657,565,927.37    70,369,281.83       6,775,246,738.14       459,379,594.21    7,962,561,541.55
Accumulated
amortization
   Opening balance               72,559,037.10   15,226,121.11       1,038,620,552.82       223,148,413.09    1,349,554,124.12


                                                              165
                                                                                                     Patented
  Items                      Land use right            Software              Franchise                                           Total
                                                                                                    technology
   Increase                    12,506,507.53          8,487,398.02          454,508,759.62            47,992,191.82           523,494,856.99

   1) Accrual                  12,506,507.53          8,377,643.38          404,599,253.49            33,486,365.77           458,969,770.17
   2) Business
                                                         109,754.64           49,781,745.71           14,505,826.05            64,397,326.40
   combination
   3) Transferred in
                                                                                 127,760.42                                       127,760.42
   from fixed assets
   Decrease                                              212,547.43            6,164,663.54                                     6,377,210.97

   1) Disposal                                           212,547.43            6,164,663.54                                     6,377,210.97

   Closing balance             85,065,544.63         23,500,971.70        1,486,964,648.90         271,140,604.91            1,866,671,770.14
Provision for
impairment
   Opening balance                                                            24,687,522.85           20,185,580.19            44,873,103.04

   Increase                                                                                            2,902,303.88             2,902,303.88
   1) Business
                                                                                                       2,902,303.88             2,902,303.88
   combination
   Decrease

   Closing balance                                                            24,687,522.85           23,087,884.07            47,775,406.92

Carrying amount

   Closing balance            572,500,382.74         46,868,310.13        5,263,594,566.39         165,151,105.23            6,048,114,364.49

   Opening balance            515,080,190.27         27,256,713.64        4,617,035,301.96         191,223,662.53            5,350,595,868.40
     (2) No land use right with certificate of titles being unsettled at the balance sheet date.


     19. Development expenditures
     (1) Details

                                                Increase                                   Decrease
                       Opening            Internal                    Recognized as                                               Closing
  Items                                                                                  Transferred to          Others
                       balance          development        Others       intangible                                                balance
                                                                                          profit or loss         [Note]
                                        expenditures                      assets
Development
                     15,682,278.17       23,461,855.88                 5,983,208.61                           2,822,707.36     30,338,218.08
expenditures
  Total              15,682,278.17       23,461,855.88                 5,983,208.61                           2,822,707.36     30,338,218.08
     Note: Other decrease refers to provision for impairment made in the current period.
     (2) Other remarks
     Development expenditures of 2022 mainly refer to expenditures for development of environmental protection equipment,
automated production line, etc., and the supporting documents for capitalization include project proposal, project schedule and
periodic summary report.


     20. Goodwill
     (1) Details


 Investees or                           Closing balance                                                Opening balance
    events
 resulting in
   goodwill                              Provision for                                                     Provision for
                     Book balance                           Carrying amount        Book balance                              Carrying amount
                                          impairment                                                        impairment



                                                                    166
 Investees or                         Closing balance                                              Opening balance
    events
 resulting in
   goodwill                             Provision for                                               Provision for
                    Book balance                        Carrying amount          Book balance                         Carrying amount
                                         impairment                                                  impairment

Zoomlion
                   5,714,428,315.9      528,229,356.5      5,186,198,959.4       5,714,428,315.9    233,232,278.1      5,481,196,037.8
Environmental
                                 9                  5                    4                     9                5                    4
Company

Green Oriental
                     78,074,688.12                          78,074,688.12         78,074,688.12                          78,074,688.12
Company

Foshan Infore
Environmenta
l Water             316,465,481.91                         316,465,481.91        316,465,481.91                         316,465,481.91
Treatment
Co., Ltd.
Shangfeng
Industrial          100,455,813.40                         100,455,813.40        100,455,813.40                         100,455,813.40
Company

Yolsh
                     13,389,232.61                          13,389,232.61
Company


Lianjiang
                     46,032,017.84       1,013,513.53       45,018,504.31
Company


                   6,268,845,549.8      529,242,870.0      5,739,602,679.7       6,209,424,299.4    233,232,278.1      5,976,192,021.2
  Total
                                 7                  8                    9                     2                5                    7

     (2) Cost
 Investees or events resulting in        Opening        Due to business combination        Decrease due to disposal
                                                                                                                        Closing balance
            goodwill                     balance           in the current period               of subsidiaries
Zoomlion Environmental
                                     5,714,428,315.99                                                                 5,714,428,315.99
Company
Green Oriental Company                 78,074,688.12                                                                     78,074,688.12
Foshan Infore Environmental
                                      316,465,481.91                                                                    316,465,481.91
Water Treatment Co., Ltd.
Shangfeng Industrial Company          100,455,813.40                                                                    100,455,813.40

Yolsh Company                                                           13,389,232.61                                    13,389,232.61

Lianjiang Company                                                       46,032,017.84                                    46,032,017.84

  Total                              6,209,424,299.42                   59,421,250.45                                 6,268,845,549.87
     (3) Provision for impairment
                                                                                            Decrease due to
  Investees or events resulting in
                                         Opening balance              Increase                disposal of             Closing balance
             goodwill
                                                                                             subsidiaries
Zoomlion Environmental
                                             233,232,278.15           294,997,078.40                                    528,229,356.55
Company [Note 1]
Lianjiang Company [Note 2]                                              1,013,513.53                                      1,013,513.53

  Total                                      233,232,278.15           296,010,591.93                                    529,242,870.08
     Note 1: For impairment loss of goodwill of Zoomlion Environmental Company, as the goodwill of 92,031,026.04 yuan was
recognized at the time of the acquisition of Zoomlion Environmental Company through deferred tax liabilities due to appraisal
appreciation at the date of business combination not under common control, provision for impairment of 6,884,864.15 yuan was
made along with changes in deferred tax liabilities in the current period. The accumulated provision for impairment of goodwill


                                                                167
arising from this factor totaled 52,899,507.95 yuan. Provision for impairment of 288,112,214.25 yuan was made at the difference
between the recoverable amount and the carrying amount of equipment asset group portfolio of Zoomlion Environmental Company,
and the accumulated provision for impairment of goodwill arising from this factor totaled 475,329,848.60 yuan.
     Note 2: For impairment loss of goodwill of Lianjiang Company, as the goodwill of 30,000,000.00 yuan was recognized at the
time of the acquisition of Lianjiang Company through deferred tax liabilities due to appraisal appreciation at the date of business
combination not under common control, provision for impairment of 1,013,513.53 yuan was made along with changes in deferred tax
liabilities in the current period. The accumulated provision for impairment of goodwill arising from this factor totaled 1,013,513.53
yuan.
     (4) Impairment test process
     1) Related information of asset group or asset group portfolios which include goodwill
                                                                  Carrying amount of                                Carrying amount of
                                                                                            Carrying amount of
  Asset groups or asset                                          goodwill allocated to                              asset groups or asset
                                     Legal entities                                         asset groups or asset
  group portfolios                                                the asset groups or                               group portfolios that
                                                                                              group portfolios
                                                                 asset group portfolios                               include goodwill
                           Zoomlion Environmental
Sanitation vehicles and    Company (manufacturing and
equipment                  sales of sanitation vehicles and
                                                                     10,684,300,240.09        1,497,825,670.20        12,182,125,910.29
manufacturing and          equipment), Changsha Zhongbiao
sales asset group          Environmental Industry Co., Ltd.,
                           etc.
                           Zoomlion Environmental
                           Company (sanitation integrated
                           operation), Green Oriental
Urban-rural sanitation
                           Company, Huaian Chenjie
integrated operation                                                    352,487,404.73        4,367,010,686.04         4,719,498,090.77
                           Environmental Engineering Co.,
asset group portfolio
                           Ltd., Biyang County Fenghe New
                           Energy Power Co., Ltd., Lianjiang
                           Company
Water governance           Foshan Infore Environmental
                                                                    316,465,481.91        148,814,220.56           465,279,702.47
operation asset group      Water Treatment Co., Ltd., etc.
Ventilation equipment
manufacturing and       Shangfeng Industrial Company                159,547,374.49        149,261,344.26           308,808,718.75
sales asset group
Electrical equipment
manufacturing and       Yolsh Company                                19,127,475.16          28,249,030.31           47,376,505.47
sales asset group
     Note 1: Goodwill amortized to sanitation vehicles and equipment manufacturing and sales asset group and urban-rural sanitation
integrated operation asset group portfolio included the portion attribution to non-controlling shareholders.
     Note 2: In December 2018, Zoomlion Environmental Company, which was acquired under business combination under common
control by the Company, had two asset groups, i.e., sanitation vehicles and equipment manufacturing and sales asset group and
urban-rural sanitation integrated operation asset group (including waste transfer, landfill and treatment). Data of original goodwill at
the formation of Zoomlion Environmental Company was based on the fair value of the identifiable net assets as at the end of June
2017 under asset-based method in the appraisal report numbered Zhong Rui Ping Bao Zi [2017] 110731042, without considering the
synergy between the urban-rural sanitation integrated operation asset group of Zoomlion Environmental Company and the waste
incineration power generation operation asset group of former Green Oriental Company. After the business combination of Zoomlion
Environmental Company, as its urban-rural sanitation integrated operation asset group and the waste incineration power generation
operation asset group of Green Oriental Company were similar in terms of business acquisition, production and operation activities,
and cash return realization methods, and the Management had started to carry out integrated management, these two asset groups
were identified as the urban-rural sanitation integrated operation asset group portfolio.
     The cost of original goodwill of Zoomlion Environmental Company of 5.714 billion was re-allocated to the sanitation vehicles
and equipment manufacturing and sales asset group and urban-rural sanitation integrated operation asset group portfolio based on the
gross profit ratio contributed by the two businesses, in amount of 5.636 billion yuan and 78 million yuan, respectively.
     Note 3: The Company acquired Lianjiang Company through business combination not under common control. After the


                                                                  168
business combination of Lianjiang Company, as its asset group and urban-rural sanitation integrated operation asset group and the
waste incineration power generation operation asset group of the Company were similar in terms of business acquisition, production
and operation activities, and cash return realization methods, and the Management had carried out integrated management, the asset
group of Lianjiang Company was identified as the urban-rural sanitation integrated operation asset group portfolio.
     2) Impairment test process, method and conclusion of goodwill impairment loss
     a. Determination method of recoverable amount
     The recoverable amount of asset groups and asset group portfolios is estimated based on the business characteristics of different
asset groups or asset group portfolios, which is based on the budget approved by the Management. The revenue growth rate of the
product production and sales asset group in 2022 is based on the existing orders, historical data and operating budget, while the
expense rate is based on the average expense rate of the previous three years, in combination with the reasonable income growth,
capital depreciation and labor cost growth in the future; for operation asset groups or asset group portfolios, due to the large
difference in income and gross profit margin between the investment period and period of maturity of PPP operating projects, the
expected growth rate, stable period growth rate and profit rate of the asset groups and asset group portfolios show an irregular
distribution when multiple projects are run in parallel, and the income, costs and expenses are estimated based on the time to mature
operation and design capacity of each specific project.
     The recoverable amount of groups and asset group portfolios is calculated based on the discounted expected future operating
cash flows of operating long-term assets excluding non-operating assets and liabilities, initial working capital, surplus assets and
interest-bearing liabilities.
     b. Key parameter information for adopting future cash flow discount method
                                                             Forecast period         Stable period                        Pre-tax discount
  Asset groups or asset group portfolios Forecast period                                                 Profit margin
                                                              growth rate             growth rate                               rate
Sanitation vehicles and equipment                                                                          14.12%-
                                              5 years            [Note 1]                0.00%                                11.21%
manufacturing and sales asset group                                                                        14.80 %
Urban-rural sanitation integrated
                                              [Note 1]           [Note 1]               [Note 1]           [Note 1]        8.86%-9.96%
operation asset group portfolio
Water governance operation asset group        [Note 1]           [Note 1]               [Note 1]           [Note 1]            9.80%
Ventilation equipment manufacturing                                                                        10.04%-
                                              5 years          [Note 2]             0.00%                                     11.59%
and sales asset group                                                                                      10.31%
Electrical equipment manufacturing                                                                          5.24%-
                                              5 years          [Note 3]             0.00%                                     13.68%
and sales asset group                                                                                      10.14%
     Note 1: Please refer to the determination method of recoverable amount for details.
     Note 2: The revenue growth rate of ventilation equipment manufacturing and sales asset group during the forecast period from
2023 to 2027 is 4.77%, 4.00%, 3.00%, 2.00% and 1.00% respectively.
     Note 3: The revenue growth rate of electrical equipment manufacturing and sales asset group during the forecast period from
2023 to 2027 is 128.86%, 20.00%, 25.00%, 30.00% and 35.00% respectively.
     c. Conclusion of goodwill impairment test
                                      Recoverable amount asset group or           Carrying amount of asset       Goodwill impairment loss
  Asset group or asset group
                                      asset group portfolios that include      group or asset group portfolios     attributable to the
  portfolios
                                                   goodwill                        that include goodwill                Company
Sanitation vehicles and
equipment manufacturing and                           11,617,200,000.00               12,182,125,910.29             288,112,214.25
sales asset group
Urban-rural sanitation integrated
                                                       4,927,567,225.59                4,719,498,090.77
operation asset group portfolio
Water governance operation
                                                          479,400,000.00                 465,279,702.47
asset group
Ventilation equipment
manufacturing and sales asset                             786,909,446.86                 308,808,718.75
group
Electrical equipment
manufacturing and sales asset                              48,436,242.27                   47,376,505.47
group
     Note 1: The present value of estimated future cash flows (recoverable amount) of sanitation vehicles and equipment


                                                                  169
manufacturing and sales asset group was based on the appraisal report numbered Zhong Rui Ping Bao Zi [2023] 000545 issued by
Chungrui Worldunion Assets Appraisal Group Co., Ltd.
     Note 2: The present value of estimated future cash flows (recoverable amount) of urban-rural sanitation integrated operation
asset group portfolio was based on the appraisal report numbered Zhong Rui Ping Bao Zi [2023] 000550 issued by Chungrui
Worldunion Assets Appraisal Group Co., Ltd. and the appraisal report numbered Jun Rui Ping Bao Zi [2023] 016 issued by Shenzhen
Junrui Assets Appraisals LLP.
     Note 3: The present value of estimated future cash flows (recoverable amount) of water governance operation asset group was
based on the appraisal report numbered Jun Rui Ping Bao Zi [2023] 017 issued by Shenzhen Junrui Assets Appraisals LLP.
     21. Long-term prepayments
                                                                                                           Other
  Items                      Opening balance                Increase              Amortization                             Closing balance
                                                                                                         decreases
Expenditures on
improvement of                    11,253,726.52             20,965,713.65            6,159,422.60         278,437.52           25,781,580.05
leased-in fixed assets
Others                             4,480,030.80              2,310,429.06            2,361,104.00                                4,429,355.86

  Total                           15,733,757.32             23,276,142.71            8,520,526.60         278,437.52           30,210,935.91


     22. Deferred tax assets and deferred tax liabilities
     (1) Deferred tax assets before offset

                                                     Closing balance                                       Opening balance
  Items                             Deductible temporary                                    Deductible temporary
                                                                  Deferred tax assets                                   Deferred tax assets
                                        difference                                              difference
Provision for impairment of
                                             668,318,234.13              102,350,161.93             636,152,868.76             97,253,128.24
assets
Unrealized profit from internal
                                              22,214,585.93                  3,332,187.89            22,789,085.85               7,986,502.74
transactions
Deductible losses                             47,115,916.60                  8,894,782.37            47,114,527.25               4,326,295.17

  Total                                      737,648,736.66              114,577,132.19             706,056,481.86            109,565,926.15

(2) Deferred tax liabilities before offset

                                                     Closing balance                                       Opening balance
  Items                               Taxable temporary                                      Taxable temporary
                                                                Deferred tax liabilities                               Deferred tax liabilities
                                          difference                                             difference
Accelerated depreciation of
                                              24,481,935.20                  3,672,290.28            27,522,123.27               4,128,318.49
fixed assets
Assets appraisal appreciation
due to business combination                  448,250,679.76               50,535,337.80             361,902,254.82             28,433,715.48
not under common control
  Total                                      472,732,614.96               54,207,628.08             389,424,378.09             32,562,033.97
     (3) Details of unrecognized deferred tax assets

  Items                                                                Closing balance                          Opening balance

Deductible temporary difference                                                    510,065,399.73                             381,701,381.09

Deductible losses                                                                  596,581,457.35                             430,013,174.82

Unrealized profit from internal transactions                                       343,937,402.32                             313,377,877.13

  Subtotal                                                                       1,450,584,259.40                           1,125,092,433.04
     (4) Maturity years of deductible losses of unrecognized deferred tax assets

  Maturity years                          Closing balance                        Opening balance                         Remarks



                                                                       170
  Maturity years                           Closing balance                       Opening balance                             Remarks

Year 2022                                                                                    6,812,010.93

Year 2023                                           24,742,029.97                           43,809,247.32

Year 2024                                           82,954,604.70                           93,695,529.33

Year 2025                                          206,033,354.21                          214,803,545.16

Year 2026                                           97,279,157.08                           70,892,842.08

Year 2027                                          185,572,311.39

  Subtotal                                         596,581,457.35                          430,013,174.82


    23. Other non-current assets
    (1) Details

                                            Closing balance                                                Opening balance
  Items                                       Provision for                                                  Provision for
                          Book balance                              Carrying amount     Book balance                           Carrying amount
                                               impairment                                                     impairment
Contract assets           154,548,259.36     17,968,552.02          136,579,707.34      177,652,059.17       19,320,439.53      158,331,619.64
Advances for long-
                           93,266,692.04                              93,266,692.04      48,695,481.45                           48,695,481.45
term assets
Receivables for
                            8,518,174.25                               8,518,174.25        8,518,174.25                              8,518,174.25
agent construction
Cost to obtain a
                           68,565,164.58                              68,565,164.58      17,932,020.49                           17,932,020.49
contract
  Total                   324,898,290.23     17,968,552.02          306,929,738.21      252,797,735.36       19,320,439.53      233,477,295.83
    (2) Contract assets
    1) Details

                                      Closing balance                                                     Opening balance
  Items                                  Provision for                                                     Provision for
                     Book balance                            Carrying amount          Book balance                             Carrying amount
                                          impairment                                                        impairment
Quality
guarantee
                   154,548,259.36        17,968,552.02         136,579,707.34         177,652,059.17       19,320,439.53        158,331,619.64
deposit
receivable
  Subtotal         154,548,259.36        17,968,552.02         136,579,707.34         177,652,059.17       19,320,439.53        158,331,619.64
    2) No significant changes in carrying amount of contract assets in the current period.
    3) Details on provision for impairment of contract assets
    a. Details

                                                         Increase                              Decrease
  Items                Opening balance                                                                                         Closing balance
                                                 Accrual             Others     Reversal         Write-off        Others
On a collective
                          19,320,439.53         -1,351,887.51                                                                    17,968,552.02
basis
  Subtotal                19,320,439.53         -1,351,887.51                                                                    17,968,552.02
    b. Contract assets with provision for impairment made on a collective basis

                                                                               Closing balance
 Portfolios
                                     Book balance                        Provision for impairment                Provision proportion (%)
Portfolio grouped with
                                              154,548,259.36                             17,968,552.02                       11.63
ages
  Subtotal                                    154,548,259.36                             17,968,552.02                       11.63


                                                                       171
     (3) Cost to obtain a contract
                                                                                                 Provision for
  Items                Opening balance             Increase              Amortization                                  Closing balance
                                                                                                  impairment
Cost to obtain a
                            17,932,020.49          64,824,178.55           14,191,034.46                                  68,565,164.58
contract
  Subtotal                  17,932,020.49          64,824,178.55           14,191,034.46                                  68,565,164.58


     24. Short-term borrowings

  Items                                                                   Closing balance                        Opening balance

Credit borrowings                                                                  140,139,583.33                        150,165,000.00

Guaranteed borrowings                                                              281,942,622.11                        276,091,575.54

Mortgaged borrowings                                                                 18,020,900.00                          6,959,699.59

Guaranteed and mortgaged borrowings                                                                                         4,005,800.00

Mortgaged and pledged borrowings                                                                                            1,802,658.33

  Total                                                                            440,103,105.44                        439,024,733.46


     25. Notes payable

  Items                                                                   Closing balance                        Opening balance

Trade acceptance                                                                   222,877,645.46                        187,465,744.62

Bank acceptance                                                                  2,292,351,647.71                       2,281,333,445.09

  Total                                                                          2,515,229,293.17                       2,468,799,189.71


     26. Accounts payable
     (1) Details

  Items                                                                   Closing balance                        Opening balance

Payments for goods                                                               2,547,048,086.70                       2,688,599,026.21

Payments for engineering and equipment                                             164,908,990.42                        158,035,096.31

Others                                                                               60,004,194.54                       113,427,385.81

  Total                                                                          2,771,961,271.66                       2,960,061,508.33
     (2) No significant accounts payable with age over one year at the balance sheet date.
     27. Contract liabilities
     (1) Details

  Items                                                                   Closing balance                        Opening balance

Payments for goods                                                                 247,747,809.30                        210,432,628.98

Rebate for customers                                                                 26,542,168.95

  Total                                                                            274,289,978.25                        210,432,628.98
     (2) No significant changes in the carrying amount of contract liabilities in the current period.


     28. Employee benefits payable
     (1) Details



                                                                   172
  Items                             Opening balance                 Increase                   Decrease              Closing balance

Short-term employee benefits            309,821,227.12             2,044,442,686.63           1,948,865,833.01          405,398,080.74
Post-employment benefits -
                                            656,757.53              100,746,200.60               99,411,265.32            1,991,692.81
defined contribution plan
Termination benefits                        223,587.72               18,160,542.17               16,199,884.72            2,184,245.17

  Total                                 310,701,572.37             2,163,349,429.40           2,064,476,983.05          409,574,018.72
     (2) Details of short-term employee benefits

  Items                             Opening balance                 Increase                   Decrease              Closing balance
Wage, bonus, allowance and
                                        298,907,271.54             1,891,746,076.66           1,801,219,758.13          389,433,590.07
subsidy
Employee welfare fund                       589,365.95               52,609,348.34               52,431,388.23              767,326.06

Social insurance premium                    354,306.41               55,738,677.77               55,259,224.48              833,759.70

Including: Medicare premium                 333,668.77               50,699,785.65               50,265,374.19              768,080.23
    Occupational injuries
                                                20,637.64             5,038,892.12                4,993,850.29               65,679.47
    premium
Housing provident fund                    1,505,062.18               32,305,406.40               32,003,543.19            1,806,925.39
Trade union fund and
                                          8,465,221.04               12,043,177.46                7,951,918.98           12,556,479.52
employee education fund
  Subtotal                              309,821,227.12             2,044,442,686.63           1,948,865,833.01          405,398,080.74
     (3) Details of defined contribution plan

  Items                                         Opening balance           Increase                Decrease            Closing balance

Basic endowment insurance premium                     644,163.94           96,600,105.01          95,648,740.85           1,595,528.10

Unemployment insurance premium                         12,593.59               4,146,095.59           3,762,524.47          396,164.71

  Subtotal                                            656,757.53          100,746,200.60          99,411,265.32           1,991,692.81


     29. Taxes and rates payable

  Items                                                                   Closing balance                        Opening balance

VAT                                                                                   66,918,012.44                      55,281,814.33

Enterprise income tax                                                                 36,440,528.78                      64,521,114.98

Individual income tax withheld for tax authorities                                     3,778,293.58                       5,611,096.21

Urban maintenance and construction tax                                                 1,991,056.41                       5,322,911.41

Housing property tax                                                                   2,606,954.11                       3,075,518.72

Land use tax                                                                            157,193.04                          165,374.75

Stamp duty                                                                             1,661,333.48                       1,713,517.40

Education surcharge                                                                     845,859.65                        2,282,093.47

Local education surcharge                                                               562,045.06                        1,519,623.59

Others                                                                                     6,950.33                           1,796.22

  Total                                                                             114,968,226.88                      139,494,861.08


     30. Other payables
     (1) Details


                                                                   173
  Items                                                                 Closing balance                   December 31, 2021

Factoring of accounts receivable with recourse right [Note]                        66,789,887.39                       49,479,996.55

Temporary receipts payable                                                        297,006,996.69                     175,580,442.10

Employee stock ownership plan                                                                                        180,075,747.64

Security deposits                                                                 129,748,015.42                     114,857,152.31

Others                                                                            163,577,388.03                     163,720,743.45

  Total                                                                           657,122,287.53                     683,714,082.05
     Note: The balance refers to the factoring of accounts receivable with recourse right made by Zoomlion Environmental Company
to the non-bank financial institutions. However, as non-bank financial institutions have the right to request Zoomlion Environmental
Company to repurchase the accounts receivable if they are overdue, the accounts receivable shall not be derecognized, and the
receipts of factoring shall be recognized as other payables.
     (2) No significant other payables with age over one year at the balance sheet date.
     31. Non-current liabilities due within one year

  Items                                                                 Closing balance                    Opening balance

Long-term borrowings due within one year                                          555,746,357.94                     373,296,214.00

Lease liabilities due within one year                                               4,673,226.74                        5,314,737.81

Long-term payables due within one year                                                599,514.91

  Total                                                                           561,019,099.59                     378,610,951.81


     32. Other current liabilities

  Items                                                                 Closing balance                     Opening balance

Output VAT to be recognized                                                        31,616,947.24                       27,205,068.15

Rebate for customers                                                                                                  35,759,709.45

  Total                                                                            31,616,947.24                       62,964,777.60


     33. Long-term borrowings

  Items                                                                 Closing balance                     Opening balance

Credit borrowings                                                                  18,800,000.00                     300,000,000.00

Guaranteed borrowings                                                              70,029,166.64                      171,964,611.10

Pledged borrowings                                                                454,467,547.52                     293,820,000.00

Guaranteed and mortgaged borrowings                                               150,000,000.00                       49,230,775.77

Guaranteed and pledged borrowings                                               1,229,009,512.16                     738,727,380.85

Guaranteed, pledged and mortgaged borrowings                                                                         144,000,000.00

  Total                                                                         1,922,306,226.32                    1,697,742,767.72


     34. Bonds payable
     (1) Details

  Items                                                                 Closing balance                     Opening balance



                                                                 174
  Items                                                                  Closing balance                       Opening balance

Convertible corporate bonds                                                      1,308,690,556.32                       1,254,962,176.00

  Total                                                                          1,308,690,556.32                       1,254,962,176.00
     (2) Current period movements (not including other financial instruments such as preferred shares/perpetual bonds classified as
financial liabilities)

  Bonds                                    Issuing date              Maturity               Par value            Amount outstanding

Infore convertible bonds                   11/4/2020                 6 years                       100.00               1,476,189,600.00

  Subtotal                                                                                         100.00               1,476,189,600.00
(Continued)
                                                                                                     Funds returned
                                Current                    Premium/           Current                    due to
                                            Par value                                      Converted
   Bonds       Opening balance period                      Discount           period                  conversion of Closing balance
                                             interest                                      to shares
                               issuance                   amortization      repayment                  bonds into
                                                                                                         shares
Infore
convertible 1,254,962,176.00              8,084,435.38 53,086,819.12      7,380,303.50     62,552.09            18.59 1,308,690,556.32
bonds
   Subtotal 1,254,962,176.00              8,084,435.38 53,086,819.12      7,380,303.50     62,552.09            18.59 1,308,690,556.32
     (3) Converting conditions and time of convertible bonds
     Under the “Approval of the Public Offering of Convertible Bonds by Infore Environment Technology Group Co., Ltd.” issued
by China Securities Regulatory Commission (Zheng Jian Xu Ke [2020] 2219) dated September 10, 2020, on November 4, the
Company issued publicly convertible bonds of 1,476,189,600 yuan, with a total issuance of 14,761,896 pieces, and a term of 6 years.
The coupon rate of the convertible bonds issued this time is 0.20% in the first year, 0.50% in the second year, 0.80% in the third year,
1.50% in the fourth year, 1.80% in the fifth year, and 2.00% in the sixth year. Interest of the convertible corporate bonds is paid once
a year, and principal and the last year’s interest are paid at maturity. The Company will redeem all convertible bonds not converted
by investors at the 110% of the par value (including the last year’s interest) within 5 trading days upon maturity of the convertible
bonds issued this time.
     The duration of the convertible bonds issued this time is 6 years from the date of issuance, that is, from November 4, 2020 to
November 3, 2026. The initial conversion price of the convertible bonds issued this time is 8.31 yuan/share; the conversion period of
the convertible bonds issued this time starts from the first trading day (May 10, 2021) after the expiration of six months from the end
date of the issuance on November 10, 2020 to the maturity date of the convertible bonds (November 3, 2026).
     As of December 31, 2022, a total of 1,299 Infore convertible bonds had been converted to the Company’s ordinary A shares,
with a total of 15,833 shares converted. In the current period, capital reserve (share premium) of 66,691.53 yuan was recognized at
the difference between the carrying amount of the convertible bonds actually converted and other equity instruments and share
capital increased due to actual conversion of bonds into shares.


     35. Lease liabilities

  Items                                                                  Closing balance                       Opening balance

Unpaid lease payments                                                               24,948,023.12                          20,701,888.38

Less: Unrecognized financing expenses                                                 1,692,398.82                          2,178,148.28

  Total                                                                             23,255,624.30                          18,523,740.10
     36. Long-term payables
     (1) Details

  Items                                                                  Closing balance                       Opening balance


                                                                   175
  Items                                                               Closing balance                       Opening balance

Special payables                                                                  315,735,814.91                         315,735,814.91

  Total                                                                           315,735,814.91                         315,735,814.91
     (2) Special payables
                                                                                                                       Reasons for
  Items                     Opening balance         Increase              Decrease            Closing balance
                                                                                                                          balance
                                                                                                                    Funds from
Special funds for                                                                                                   conversion of
                                 3,000,000.00                                                        3,000,000.00
treasury bond projects                                                                                              treasury bonds
                                                                                                                    into loans.
                                                                                                                    Special
Special funds for Jiayu
                                                                                                                    government
Sewage Treatment              176,015,774.58                                                       176,015,774.58
                                                                                                                    funds for PPP
Project
                                                                                                                    projects.
                                                                                                                    Special
Special funds for
                                                                                                                    government
Tongshan Sewage               136,720,040.33                                                       136,720,040.33
                                                                                                                    funds for PPP
Treatment Project
                                                                                                                    projects.
  Subtotal                    315,735,814.91                                                       315,735,814.91


     37. Provisions

  Items                                                               Closing balance                        Opening balance

Credit guarantees                                                                   4,575,049.22                           3,129,793.85

  Total                                                                             4,575,049.22                           3,129,793.85


     38. Deferred income
     (1) Details
                                                                                                                      Reasons for
  Items                     Opening balance         Increase             Decrease            Closing balance
                                                                                                                        balance
                                                                                                                    Government grants
Government grants             101,635,992.65      37,339,750.00          18,085,032.61         120,890,710.04           related to
                                                                                                                      assets/income
  Total                       101,635,992.65      37,339,750.00          18,085,032.61         120,890,710.04
     (2) Details of government grants
                                                                Grants included
                               Opening                                                                                       Related to
  Items                                         Increase       into other income Other decrease        Closing balance
                               balance                                                                                     assets/income
                                                                     [Note]
Investment plan on the
construction of
                                                                                                                            Related to
ecological civilization       2,200,000.00      880,000.00            94,189.60                          2,985,810.40
                                                                                                                             assets
of 2020 within the
central budget
No. 2 Sewage
Treatment Plant and
                                                                                                                            Related to
supporting pipe network       7,660,000.00                                                               7,660,000.00
                                                                                                                             assets
projects in Daban Town,
Bahrain Right Banner
Special subsidies for
                                                                                                                            Related to
Xiantao waste power           9,936,051.24                           726,531.48                          9,209,519.76
                                                                                                                             assets
generation project
Shouxian domestic
                                                                                                                            Related to
waste incineration           13,034,666.58                        1,002,666.73                          12,031,999.85
                                                                                                                             assets
power plant project
Urban sewage and                                                                                                            Related to
                              4,456,150.42                           441,822.07                          4,014,328.35
garbage treatment                                                                                                            assets


                                                               176
                                                            Grants included
                             Opening                                                                              Related to
  Items                                      Increase      into other income Other decrease   Closing balance
                             balance                                                                            assets/income
                                                                 [Note]
facilities and sewage
pipe network
engineering projects
Development,
demonstration and
application of time of
flight mass
                                                                                                                 Related to
spectrometry for soft         354,166.67                         141,666.72                       212,499.95
                                                                                                                  assets
ionization-high
resolution on-line
detection of
atmospheric VOCS
Research and
application of water                                                                                             Related to
                             1,400,000.00                        466,666.68                       933,333.32
quality and environment                                                                                           assets
monitoring technology
R&D and application
project of water quality
comprehensive toxicity
                                                                                                                 Related to
rapid monitoring                            2,320,000.00         890,000.00                     1,430,000.00
                                                                                                                  assets
instrument based on
electrochemically active
microorganisms
Urban and rural
domestic waste transfer,
                                                                                                                 Related to
kitchen waste resource      10,847,931.04                        388,620.69                     10459310.35
                                                                                                                  assets
utilization and harmless
treatment projects
Xiantao sludge harmless                                                                                          Related to
                            17,700,000.00                        610,344.83                    17,089,655.17
treatment plant                                                                                                   assets
Subsidies for enterprise
                                                                                                                 Related to
technological                 714,285.72                         142,857.14                       571,428.58
                                                                                                                  assets
transformation
Subsidies for key
projects of enterprise
                                                                                                                 Related to
intelligent                  1,527,957.44                        203,061.88                     1,324,895.56
                                                                                                                  assets
transformation of 2018
and 2020
Funds for provincial                                                                                             Related to
                             1,055,749.60    800,000.00          360,917.96                     1,494,831.64
“Kunpeng Action” plan                                                                                           assets
Incremental tax
incentives for                                                                                                   Related to
                             7,586,240.00                        948,280.00                     6,637,960.00
technological                                                                                                     assets
transformation
The second batch of
awards for rental                                                                                                Related to
                             5,743,156.33                        165,270.68                     5,577,885.65
housing in the high-tech                                                                                          assets
zone
The third batch of
municipal subsidies for
                                                                                                                 Related to
technological                4,562,500.00                        500,000.00                     4,062,500.00
                                                                                                                  assets
transformation of
industrial enterprises
The fifth batch of
special funds for raising                                                                                        Related to
                             1,000,000.00                        297,520.66                       702,479.34
manufacturing power in                                                                                            assets
Hunan Province
Special funds for air
                                                                                                                 Related to
pollution prevention and      800,000.00                         100,000.00                       700,000.00
                                                                                                                  assets
control
Special subsidies for
                                                                                                                 Related to
construction and              416,444.76                          94,781.44                       321,663.32
                                                                                                                  assets
application of industrial


                                                           177
                                                                      Grants included
                                   Opening                                                                                      Related to
  Items                                               Increase       into other income Other decrease      Closing balance
                                   balance                                                                                    assets/income
                                                                           [Note]
Internet platform

The third batch of
special funds for raising                                                                                                       Related to
                                    416,444.76                              94,781.44                           321,663.32
manufacturing power in                                                                                                           assets
Hunan Province of 2021
The fourth batch of
special funds for raising                                                                                                       Related to
                                    129,558.22                              13,381.99                           116,176.23
manufacturing power in                                                                                                           assets
Hunan Province of 2021
Special funds for
provincial modern                                                                                                               Related to
                                       94,689.87                            28,569.01                            66,120.86
service industry of Hi-                                                                                                          assets
tech District
Integrated construction
of intelligent equipment
                                                                                                                                Related to
and intelligent                                     30,400,000.00          304,680.09                        30,095,319.91
                                                                                                                                 assets
sanitation services of
Infore Zoomlion
The second batch of
subsidized loans for
                                                                                                                                Related to
industrial technology                                1,939,750.00           68,421.52                         1,871,328.48
                                                                                                                                 assets
transformation in
Changsha of 2021
The fifth batch of special
funds for raising                                                                                                               Related to
                                                     1,000,000.00                                             1,000,000.00
manufacturing power in                                                                                                           assets
Hunan Province of 2022
Central special
construction supporting                                                                                                         Related to
                                 10,000,000.00                                           10,000,000.00
funds for Kaili PPP                                                                                                              income
Project
  Total                         101,635,992.65      37,339,750.00       8,085,032.61     10,000,000.00      120,890,710.04
        Note: Please refer to section V (IV) 3 of notes to the financial statements for details on government grants included into profit or
loss.


        39. Other non-current liabilities

  Items                                                              Closing balance                           Opening balance

Central special construction funds                                                 8,333,333.33

  Total                                                                            8,333,333.33
        40. Share capital
        (1) Details

                                                                                Movements
  Items                          Opening balance                                   Reserve                                 Closing balance
                                                      Issue of new     Bonus
                                                                                 transferred   Others       Subtotal
                                                         shares        shares
                                                                                  to shares
Total share                      3,175,734,760.00     3,770,799.00                                       3,770,799.00     3,179,505,559.00
        (2) Other remarks
        Current increase was due to:
        1) the subscription of 3,761,991 shares by a total of 107 equity incentive targets according to the “Proposal on Matters Related
to the Second Exercise Period of the Phase III Stock Option Incentive Plan” implemented by the Company in the current period. As
of December 31, 2022, the Company had actually received payments for subscription of 23,399,331.66 yuan from equity incentive
targets, with share capital increased by 3,761,991 yuan, capital reserve (share premium) increased by 19,637,568.02 yuan and

                                                                     178
financial expenses increased by 227.36 yuan.
     2) conversion of convertible corporate bonds with par value of 71,600 yuan into the Company’s ordinary A shares of 8,808
shares, with capital premium (share premium) recognized at 66,691.53 yuan.


     41. Other equity instruments
     (1) Please refer to section V (I) 34 of notes to financial statements for basic information of convertible corporate bonds
outstanding at the balance sheet date.
     (2) Current period movements of convertible corporate bonds outstanding at the balance sheet date

                        Opening balance                  Increase                  Decrease                       Closing balance
  Items                                                        Carrying                  Carrying
                   Quantity   Carrying amount Quantity                      Quantity                   Quantity         Carrying amount
                                                               amount                    amount
Convertible
corporate      14,761,313     266,929,289.24                                      716    12,947.44   14,760,597             266,916,341.80
bonds
  Total        14,761,313     266,929,289.24                                      716    12,947.44   14,760,597             266,916,341.80
     Note: As of December 31, 2022, convertible corporate bonds with par value of 71,600 yuan had been converted into ordinary A
shares, with other equity instruments decreased by 12,947.44 yuan accordingly.


     42. Capital reserve
     (1) Details

  Items                                   Opening balance              Increase                 Decrease                Closing balance
Capital premium (share
                                            9,718,763,486.07           19,704,259.55            133,857,421.38            9,604,610,324.24
premium)
Other capital reserve                          54,032,377.68              3,868,552.56                                       57,900,930.24

  Total                                     9,772,795,863.75           23,572,812.11            133,857,421.38            9,662,511,254.48
     (2) Other remarks
     1) Current increase of capital premium (share premium) was mainly due to:
     a. increase of capital premium (share premium) of 19,637,568.02 yuan. Please refer to section V (I) 40 of notes to the financial
statements for details;
     b. conversion of convertible corporate bonds with par value of 71,600 yuan into the Company’s ordinary A shares of 8,808
shares, resulting in the recognition of capital premium (share premium) of 66,691.53 yuan;
     2) Current decrease of capital premium (share premium) was mainly due to:
     a. completion of the Company’s phase II employee stock ownership plan in 2022 through transfer of shares in the Company’s
repurchase special security account and centralized bidding in secondary market, and 46,410,852 shares was transferred from the
Company’s repurchase special security account, resulting in the decrease of capital reserve of 132,175,661.99 yuan.
     b. difference of -1,681,759.39 yuan between the consideration for acquisition of 5% of equity of the subsidiary Liling Zhaoyang
Environmental Protection Co., Ltd. dated April 30, 2022 and the proportionate share in net assets continuously calculated from the
acquisition date or combination date while acquiring long-term equity investments.
     3) Current increase of other capital reserve was due to stock option incentive expenses of 4,039,069.40 yuan recognized based
on the equity incentive plan, with 3,868,552.56 yuan included in capital reserve – other capital reserve and 170,516.84 yuan included
in non-controlling interest. Please refer to section XI of notes to the financial statements for details.


     43. Treasury shares
     (1) Details

  Items                                   Opening balance             Increase                Decrease                  Closing balance



                                                                    179
Treasury shares                             455,303,777.91                                  361,170,982.74              94,132,795.17

  Total                                     455,303,777.91                                  361,170,982.74              94,132,795.17
     (2) Other remarks
     Pursuant to the 17th extraordinary meeting of the ninth session of the Board of Directors dated March 17, 2022 and the
“Proposal on the ‘Phase II Employee Stock Ownership Plan (Revised Draft)’ and its Summary” deliberated and approved by
shareholders’ meeting of 2021 dated May 24, 2022 and related proposals, the phase II employee stock ownership plan was planned to
acquire shares of the Company through acquisition of repurchased shares, purchase from the secondary market (including but not
limited to centralized biding and block trading) and other method permitted by laws and regulations. In 2022, 46,410,852 shares were
transferred from the Company’s repurchase special security account, which resulted in the decrease of treasury shares of
361,170,982.74 yuan.
     44. Other comprehensive income (OCI)

                                                                Current period cumulative

                                                             Net OCI after tax                          Less: OCI
                                                                                                        previously
                                                  Less: OCI                                          recognized but
                                                  previously                                          transferred to
                       Opening       Current                                                             retained             Closing
  Items                                           recognized     Less:                  Attributable
                       balance        period                            Attributable to              earnings in the          balance
                                                      but       Income                     to non-
                                   cumulative                               parent
                                                transferred to    tax                    controlling current period
                                  before income                           company
                                                profit or loss expenses                 shareholders (attributable to
                                       tax                                                                parent
                                                in the current
                                                    period                                           company after
                                                                                                           tax)
OCI not to be
reclassified
                 -4,280,000.00 -350,000.00                                  -350,000.00                                 -4,630,000.00
subsequently to
profit or loss
Including:
     Changes in
     fair value
                             -           -                                                                                             -
     of other                                                               -350,000.00
                  4,280,000.00 350,000.00                                                                                   4,630,000.00
     equity
     instrument
     investments
                             -           -                                                                                             -
  Total                                                                     -350,000.00
                  4,280,000.00 350,000.00                                                                                   4,630,000.00


     45. Special reserve

  Items                              Opening balance                Increase                 Decrease              Closing balance

Work safety fund                                                       8,693,981.54             8,693,981.54


     46. Surplus reserve
     (1) Details

  Items                             Opening balance                Increase                  Decrease             Closing balance
Statutory surplus reserve              296,754,883.56             18,369,884.36                                     315,124,767.92
  Total                                296,754,883.56             18,369,884.36                                     315,124,767.92
     (2) Other remarks
     Current increase of 18,369,884.36 yuan was due to the appropriation of statutory surplus reserve at 10% of net profit generated
by the parent company in the current period.




                                                                 180
     47. Undistributed profit
                                                                                                               Preceding period
  Items                                                                    Current period cumulative
                                                                                                                 comparative
Opening balance                                                                     3,874,934,971.69                3,558,688,885.55

Add: Net profit attributable to owners of the parent company                          418,794,179.13                  752,792,198.66

Less: Appropriation of statutory surplus reserve                                       18,369,884.36                   64,052,940.00

      Dividend payable on ordinary shares                                             312,052,376.40                  372,493,172.52

Closing balance                                                                     3,963,306,890.06                3,874,934,971.69


     (II) Notes to items of the consolidated income statement
     1. Operating revenue/Operating cost
     (1) Details

                                      Current period cumulative                               Preceding period comparative
  Items
                                 Revenue                        Cost                       Revenue                     Cost

Main operations                 12,206,399,059.56           9,429,679,886.47            11,808,597,210.09           9,196,610,154.21

Other operations                    49,593,878.86               39,830,944.80                57,694,401.36             35,588,414.96

  Total                         12,255,992,938.42           9,469,510,831.27            11,866,291,611.45           9,232,198,569.17
Including: Revenue
from contracts with           12,253,033,163.91          9,467,213,554.61               11,865,905,141.65           9,232,078,451.86
customers
     (2) Breakdown of revenue from contracts with customers by main categories
     1) Breakdown of revenue by goods or services

                                        Current period cumulative                             Preceding period comparative
  Items
                                    Revenue                     Cost                       Revenue                     Cost

Intelligent sanitation            10,242,746,845.76         8,023,297,059.91               9,237,262,348.48         7,255,659,678.83

Other businesses                   2,010,286,318.15         1,443,916,494.70               2,628,642,793.17         1,976,418,773.03

  Subtotal                        12,253,033,163.91         9,467,213,554.61            11,865,905,141.65           9,232,078,451.86
     2) Breakdown of revenue by operating regions

                                        Current period cumulative                             Preceding period comparative
  Items
                                    Revenue                     Cost                       Revenue                     Cost

Domestic                          12,234,221,595.20         9,451,301,571.85            11,823,070,767.91           9,196,686,878.55

Overseas                              18,811,568.71             15,911,982.76                42,834,373.74             35,391,573.31

  Subtotal                        12,253,033,163.91         9,467,213,554.61            11,865,905,141.65           9,232,078,451.86
     3) Breakdown of revenue by time of transferring goods or rendering services

  Items                                               Current period cumulative                   Preceding period comparative

Recognized at a point in time                                           6,705,692,980.49                            7,936,363,900.72

Recognized over time                                                    5,547,340,183.42                            3,929,541,240.93

  Subtotal                                                             12,253,033,163.91                           11,865,905,141.65
     2. Taxes and surcharges

  Items                                               Current period cumulative                   Preceding period comparative



                                                                181
  Items                                  Current period cumulative           Preceding period comparative

Urban maintenance and construction tax                     27,686,507.84                          20,078,805.96

Education surcharge                                        12,075,573.31                           8,704,420.76

Housing property tax                                        9,759,719.80                           6,991,844.08

Land use tax                                                8,282,959.61                           8,241,902.89

Local education surcharge                                   7,807,835.47                           5,684,439.06

Stamp duty                                                  7,540,686.80                           3,049,851.77

Vehicle and vessel use tax                                  1,481,678.21                           1,380,035.94

Environmental protection tax                                   50,061.01                              10,786.17

Others                                                                                                 1,728.81

  Total                                                    74,685,022.05                          54,143,815.44


    3. Selling expenses

  Items                                  Current period cumulative           Preceding period comparative

Employee benefits                                         340,290,000.65                         320,344,321.96

Marketing expenses and agency fees                        221,534,865.64                         203,886,678.86

Business entertainment                                     47,320,675.86                          45,787,322.29

Office expenses                                            39,159,155.49                          52,439,230.50

Expenses for tendering and bidding                         33,479,432.56                          27,560,842.44

Vehicle usage fees                                         27,886,649.81                          34,084,353.47

Business travelling expenses                               22,889,790.05                          29,426,404.02

Depreciation and amortization                               8,871,711.08                           1,634,177.49

After-sales service expenses                                8,427,436.37                           6,529,791.01

Share-based payments                                          789,290.58                           2,009,420.94

Others                                                     12,321,839.86                          15,131,028.07

  Total                                                   762,970,847.95                         738,833,571.05


    4. Administrative expenses

  Items                                   Current period cumulative           Preceding period comparative

Employee benefits                                           325,720,014.09                       308,636,988.29

Depreciation and amortization                                92,377,339.97                        90,950,246.67

Office expenses                                              49,435,534.41                        57,223,541.20

Business entertainment                                       47,088,220.88                        44,724,844.78

Agency consulting fees                                       38,554,467.66                        30,647,767.32

Vehicle usage fees                                           15,346,887.97                        10,477,269.96

Business travelling expenses                                  9,732,527.31                        13,652,785.76

Repair fees                                                   2,863,363.74                         2,929,951.84


                                                   182
  Items                                                Current period cumulative                    Preceding period comparative

Share-based payments                                                          1,905,828.75                                 4,002,420.59

Others                                                                       26,577,495.45                               22,107,591.16

  Total                                                                     609,601,680.23                              585,353,407.57


     5. R&D expenses

  Items                                               Current period cumulative                    Preceding period comparative

Employee benefits                                                         248,961,357.20                                159,381,200.38

Direct inputs                                                              40,506,455.35                                 58,423,533.28

Other expenses                                                             50,336,437.55                                 41,705,479.82

Share-based payments                                                         971,457.24                                    3,108,913.81

  Total                                                                   340,775,707.34                                262,619,127.29


     6. Financial expenses

  Items                                               Current period cumulative                    Preceding period comparative

Interest expenses                                                         170,568,834.86                                149,868,429.63

Interest income                                                           -86,389,951.68                               -107,324,690.38

Gains and losses on foreign exchange                                       -3,056,908.33                                   2,001,825.46

Others                                                                     20,717,449.06                                 14,059,239.82

  Total                                                                   101,839,423.91                                 58,604,804.53


     7. Other income
                                                                                Preceding period            Amount included in non-
  Items                                     Current period cumulative
                                                                                  comparative                recurring profit or loss
Government grants related to assets
                                                           8,085,032.61                    4,481,738.05                    8,085,032.61
[Note]
Government grants related to income
                                                         93,590,019.49                  76,124,682.16                    72,183,009.21
[Note]
Refund of handling fees for
                                                             429,102.26                      748,344.55                      429,102.26
withholding individual income tax
Extra deduction of input VAT                             17,460,524.12                     2,186,407.75                  17,460,524.12

  Total                                                 119,564,678.48                  83,541,172.51                    98,157,668.20
     Note: Please refer to section V (IV) 3 of notes to the financial statements for details on government grants included into other
income.


     8. Investment income

  Items                                               Current period cumulative                    Preceding period comparative
Investment income from long-term equity
                                                                            8,548,481.77                                 36,885,135.08
investments under equity method
Investment income from disposal of long-
                                                                                                                           8,040,787.90
term equity investments
Gains from fair value remeasurement at
                                                                           51,896,314.25
the time of obtaining control [Note]
Investment income from financial products                                  19,091,108.25                                 29,170,261.66



                                                                 183
  Items                                                Current period cumulative                    Preceding period comparative

Performance compensation                                                   -50,000,000.00                                163,460,620.00

Losses from debt restructuring                                              -5,380,200.00
Gains of factoring of accounts receivable
                                                                           -65,918,373.23
without recourse right
Others                                                                        296,543.34                                    2,377,190.95

  Total                                                                    -41,466,125.62                                239,933,995.59
     Note: It mainly refers to the combination of Lianjiang Company achieved in stages. For the equity of the acquiree held before
the purchase date, it is remeasured at the fair value of the equity on the purchase date, with the difference between the fair value and
its carrying amount recognized as current investment income.


     9. Gains on changes in fair value

  Items                                                Current period cumulative                    Preceding period comparative

Held-for-trading financial assets                                                                                         -73,146,774.32
Gains or losses on ineffective portion of
                                                                                                                               72,100.27
outstanding fair value hedges
  Total                                                                                                                   -73,074,674.05


     10. Credit impairment loss

  Items                                                Current period cumulative                    Preceding period comparative

Bad debts                                                                 -103,391,907.05                                 -95,707,579.99

Credit guarantee loss                                                       -1,445,255.37                                  -2,668,240.03

  Total                                                                   -104,837,162.42                                 -98,375,820.02
     11. Assets impairment loss

  Items                                                Current period cumulative                    Preceding period comparative

Inventory write-down loss                                                  -15,053,708.82                                 -21,599,097.67

Impairment loss of goodwill                                               -296,010,591.93                               -194,617,014.59
Impairment loss of other non-current
                                                                             2,080,536.79                                 -10,144,746.27
assets (quality guarantee reserve)
Impairment loss of contract assets                                          -1,192,023.34                                  -5,154,976.05
Impairment loss of non-current assets due
                                                                                                                              575,338.66
within one year (quality guarantee reserve)
Impairment loss of development
                                                                            -2,822,707.36
expenditures
  Total                                                                   -312,998,494.66                               -230,940,495.92


     12. Gains on asset disposal
                                                                                 Preceding period            Amount included in non-
  Items                                       Current period cumulative
                                                                                   comparative                recurring profit or loss
Gains on disposal of fixed assets                            301,250.20                  -2,254,626.67                        301,250.20

Gains on disposal of intangible assets                         10,073.29                                                       10,073.29
Gains on disposal of construction in
                                                                                            1,092,784.45
progress
Gains on disposal of right-of-use assets                     221,473.23                                                       221,473.23


                                                                  184
                                                                              Preceding period           Amount included in non-
  Items                                      Current period cumulative
                                                                                comparative               recurring profit or loss
  Total                                                    532,796.72                 -1,161,842.22                     532,796.72


     13. Non-operating revenue
                                                                            Preceding period            Amount included in non-
  Items                                      Current period cumulative
                                                                              comparative                recurring profit or loss
Gains on damage or retirement of non-
                                                             8,797.04                 883,148.89                           8,797.04
current assets
Penalty and confiscatory income                          9,298,430.37                5,865,087.13                      9,298,430.37

Others                                                   3,491,008.49                3,279,788.40                      3,491,008.49

  Total                                                 12,798,235.90               10,028,024.42                    12,798,235.90
     14. Non-operating expenditures
                                                                            Preceding period            Amount included in non-
  Items                                      Current period cumulative
                                                                              comparative                recurring profit or loss
Losses on damage or retirement of non-
                                                         2,913,020.22                1,424,842.60                      2,913,020.22
current assets
Donation expenditures                                    2,302,553.92                2,446,175.58                      2,302,553.92
Local water conservancy construction
                                                           409,764.78                3,814,764.68
special fund
Penalty and confiscatory expenses                        6,695,894.28                3,454,356.96                      6,695,894.28

Others                                                   1,626,755.62                 646,314.24                       1,626,755.62

  Total                                                 13,947,988.82               11,786,454.06                    13,538,224.04


     15. Income tax expenses
     (1) Details

  Items                                                 Current period cumulative                Preceding period comparative

Current period income tax expenses                                       110,132,217.76                             102,531,906.08

Deferred income tax expenses                                             -13,168,974.08                              -49,028,417.97

  Total                                                                   96,963,243.68                              53,503,488.11
     (2) Reconciliation of accounting profit to income tax expenses

  Items                                                 Current period cumulative                Preceding period comparative

Profit before tax                                                        556,255,365.25                             852,702,222.65
Income tax expenses based on tax rate
                                                                         139,063,841.31                             213,175,555.66
applicable to the parent company
Effect of different tax rate applicable to
                                                                         -14,174,894.59                            -120,536,448.40
subsidiaries
Effect of prior income tax reconciliation                                  2,488,907.40                              -16,697,363.73

Effect of non-taxable income                                             -10,408,754.85                              -14,748,654.06
Effect of non-deductible costs, expenses and
                                                                          10,640,861.01                                5,653,209.37
losses
Effect of utilization of deductible losses not
                                                                          -3,001,651.62                              -37,647,884.38
previously recognized as deferred tax assets
Effect of deducible temporary differences or
deductible losses not recognized as deferred                              20,910,057.40                              57,511,538.80
tax assets in the current period
Effect of extra deduction                                                -49,866,353.99                              -33,206,465.15




                                                                185
  Items                                                       Current period cumulative         Preceding period comparative
Difference between deferred and current
                                                                                 1,311,231.61
income tax rates
Income tax expenses                                                             96,963,243.68                       53,503,488.11


     16. Other comprehensive income, net of income tax
     Please refer to section V (I) 44 of notes to the financial statements for details.


     (III) Notes to items of the consolidated cash flow statement
     1. Other cash receipts related to operating activities

  Items                                                       Current period cumulative         Preceding period comparative
Receipts of deposits for notes, letters of credit
                                                                               385,183,093.29                      528,970,066.36
and letters of guarantee
Receipts of government grants                                                  112,106,818.35                       64,060,624.96

Receipts of security deposits                                                  109,630,599.89                      123,421,879.05
Recovery of petty cash and temporary advance
                                                                                76,785,785.58                       47,474,118.30
payment receivable
Temporary receipts payable                                                     152,028,816.71                       77,741,104.34

Receipts of interest income                                                     48,011,644.19                       34,375,977.08
Receipts of factoring payment and principal of
                                                                             1,128,899,220.36                    1,177,976,505.96
finance lease
Receipt of principal and interest of time
                                                                                67,760,782.25                      714,576,527.78
deposits
Recovery of current accounts from Foshan
                                                                                                                    99,092,452.39
Yingtong Electrical Materials Co., Ltd.
Others                                                                          16,659,857.72                       56,549,504.20

  Total                                                                      2,097,066,618.34                    2,924,238,760.42


     2. Other cash payments related to operating activities

  Items                                                        Current period cumulative        Preceding period comparative
Payments for deposits for notes, letters of credit
                                                                               130,498,826.74                      386,586,903.23
and letters of guarantee
Operating period expenses                                                      807,025,083.75                      564,282,900.37

Payments for security deposits                                                  64,966,788.26                       64,552,986.72
Payments for petty cash and temporary advance
                                                                               120,806,495.16                       75,087,728.42
payment receivable
Payments for factoring and principal of finance
                                                                             1,181,778,621.41                    1,322,074,716.14
lease
Temporary receipts payable                                                      80,648,317.53                      120,319,766.85

Time deposits                                                                                                       50,000,000.00

Others                                                                          10,338,831.68                       23,965,454.05

  Total                                                                      2,396,062,964.53                    2,606,870,455.78


     3. Other cash receipts related to investing activities

  Items                                                        Current period cumulative        Preceding period comparative

Redemption of financial products                                             5,398,900,000.00                    4,730,043,650.04


                                                                      186
  Items                                                       Current period cumulative                  Preceding period comparative
Receipts of special government funds for PPP
                                                                                                                             60,000,000.00
projects
Receipts of futures margin                                                                                                   12,531,843.01

Receipts of principal and interest of call loans                                2,961,000.00                                 47,541,031.18

  Total                                                                     5,401,861,000.00                              4,850,116,524.23


     4. Other cash payments related to investing activities

  Items                                                       Current period cumulative                  Preceding period comparative

Purchase of financial products                                              5,398,900,000.00                              4,728,990,700.00

Payments of margin for futures trading                                                                                       23,440,407.33
Payments for equity exchange deposit to
                                                                                                                             36,000,000.00
Property Rights Exchange Center
Net cash outflows from disposal of subsidiaries                                                                               1,450,610.39

  Total                                                                     5,398,900,000.00                              4,789,881,717.72


     5. Other cash receipts related to financing activities

  Items                                                       Current period cumulative                  Preceding period comparative
Receipts of payments for employee stock
                                                                              228,995,320.75                                180,000,000.00
ownership plan
Factoring of accounts receivable with recourse
                                                                               17,309,890.84                                 49,479,996.55
right
Receipts of call loans                                                         44,250,000.00                                  3,600,000.00

  Total                                                                       290,555,211.59                                233,079,996.55


     6. Other cash payments related to financing activities

  Items                                                                 Current period cumulative           Preceding period comparative

Repurchase of treasury shares                                                                                               446,383,180.08

Payments for factoring service fees and handling fees                                 14,049,209.58                           1,059,316.17

Payments for rents                                                                        6,227,752.76                        6,345,974.18

Recovery of call loans                                                                57,303,692.00

Prepaid IPO listing expenses                                                              5,703,500.00

Payments for employee stock ownership plan                                           180,112,670.02

Others                                                                                                                          364,129.20

  Total                                                                             263,396,824.36                          454,152,599.63


     7. Supplementary information to the cash flow statement
     (1) Supplementary information to the cash flow statement
                                                                                                                      Preceding period
  Supplementary information                                                     Current period cumulative
                                                                                                                        comparative
1) Reconciliation of net profit to cash flows from operating activities:

Net profit                                                                                   459,292,121.57                 799,198,734.54


                                                                    187
                                                                                                                Preceding period
  Supplementary information                                                   Current period cumulative
                                                                                                                  comparative
Add: Provision for assets impairment loss                                               417,835,657.08                329,316,315.94
      Depreciation of fixed assets, oil and gas assets, productive
                                                                                        217,634,741.39                169,587,581.86
      biological assets
     Depreciation of right-of-use assets                                                  7,064,171.89                   5,929,711.33

     Amortization of intangible assets                                                  458,736,681.20                364,198,624.40

     Amortization of long-term prepayments                                                8,520,526.60                 12,295,429.49
      Losses on disposal of fixed assets, intangible assets and other
                                                                                           -614,542.02                   1,161,842.22
      long-term assets (Less: gains)
     Fixed assets retirement loss (Less: gains)                                           2,904,223.18                    541,693.71

     Losses on changes in fair value (Less: gains)                                                                     73,074,674.05

     Financial expenses (Less: gains)                                                   177,688,052.22                133,836,548.78

     Investment losses (Less: gains)                                                    -24,239,932.54               -240,822,713.67

     Decrease of deferred tax assets (Less: increase)                                     -4,814,568.19                -14,295,043.84

      Increase of deferred tax liabilities (Less: decrease)                               -8,354,405.89                -44,875,587.45

     Decrease of inventories (Less: increase)                                           226,633,956.56                 -51,110,526.14

      Decrease of operating receivables (Less: increase)                               -409,725,335.43                632,657,980.48

     Increase of operating payables (Less: decrease)                                    129,881,870.69              -1,398,299,495.83

     Others [Note]                                                                        4,039,069.40                 36,822,950.26

Net cash flows from operating activities                                              1,662,482,287.71                809,218,720.13
2) Significant investing and financing activities not related to cash
receipts and payments:
     Conversion of debt into capital

     Convertible bonds due within one year

     Fixed assets leased in under finance leases

3) Net changes in cash and cash equivalents:

     Cash at the end of the period                                                    4,580,665,245.99               4,118,746,885.72

     Less: Cash at the beginning of the period                                        4,118,746,885.72               4,657,826,099.23

     Add: Cash equivalents at the end of the period

      Less: Cash equivalents at the beginning of the period

Net increase of cash and cash equivalents                                               461,918,360.27               -539,079,213.51
     Note: Others refer to share-based payments and unrealized finance income of long-term receivables.


     (2) Net cash payments for acquisition of subsidiaries in the current period

  Items                                                                                                   Current period cumulative
 Cash and cash equivalents paid in the current period as consideration for business combination in
                                                                                                                        94,000,002.00
the current period
      Including: Yolsh Company                                                                                          10,000,002.00

                  Lianjiang Company                                                                                     84,000,000.00

Less: Cash and cash equivalents held by subsidiaries on the purchase date                                               10,192,488.26



                                                                   188
  Items                                                                                                      Current period cumulative

      Including: Yolsh Company                                                                                              5,299,149.95

                   Lianjiang Company                                                                                        4,893,338.31

Net cash payments for acquisition of subsidiaries in the current period                                                    83,807,513.74
     (3) Net cash receipts from disposal of subsidiaries in the current period

  Items                                                                                                      Current period cumulative
Cash and cash equivalents received in the current period for subsidiary disposal in the current
period
Less: Cash and cash equivalents held by subsidiaries at the loss-of-control date
Add: Cash and cash equivalents received in the current period for subsidiary disposal in prior
                                                                                                                         115,100,000.00
periods
      Including: Foshan Yingtong Electrical Materials Co., Ltd.                                                          115,100,000.00

Net cash receipts from disposal of subsidiaries in the current period                                                    115,100,000.00
     (4) Composition of cash and cash equivalents

  Items                                                                            Closing balance                 Opening balance

1) Cash                                                                                4,580,665,245.99                 4,118,746,885.72

Including: Cash on hand                                                                          84,414.54                     89,806.02

            Cash in bank on demand for payment                                         4,580,210,453.03                 4,118,371,038.72

            Other cash and bank balances on demand for payment                               370,378.42                      286,040.98

            Central bank deposit on demand for payment

            Deposit in other banks

            Loans to other banks

2) Cash equivalents

Including: Bond investments maturing within three months

3) Cash and cash equivalents at the end of the period                                  4,580,665,245.99                 4,118,746,885.72
Including: Cash and cash equivalents of parent company or subsidiaries
with use restrictions
     On December 31, 2022, balance of cash and bank balances amounted to 4,728,203,530.46 yuan, while balance of cash and cash
equivalents amounted to 4,580,665,245.99 yuan. The difference of 147,538,284.47 yuan included deposit for notes of 46,878,240.34
yuan, deposit for letters of guarantee of 87,619,095.60 yuan, engineering deposits of 927,865.56 yuan, ETC deposits of 3,000.00
yuan, deposits for buyer’s credit of 901,432.50 yuan, deposits for land reclamation of 1,000,832.05 yuan, funds frozen due to
lawsuits of 1,100,000.00 yuan and engineering escrow accounts that are not available for separate use of 9,107,818.42 yuan, which
was not cash and cash equivalents.
     (5) Amount of endorsed commercial acceptance not involving cash receipts and payments

  Items                                                    Current period cumulative                Preceding period comparative

Amount of endorsed commercial acceptance                                  1,631,967,302.20                               498,785,469.51

Including: Payments for goods                                             1,463,149,825.79                               411,289,567.42
            Payments for acquisition of long-term
                                                                            168,817,476.41                                87,495,902.09
            assets, such as fixed assets


     (IV) Others
     1. Assets with title or use right restrictions


                                                                  189
  Items                                                       Closing carrying amount                     Reasons for restrictions
                                                                                          Deposits, escrow accounts, frozen due to
Cash and bank balances                                                     147,538,284.47
                                                                                                   litigation preservation
Accounts receivable                                                        276,390,131.13                        Pledged

Notes receivable – bank acceptance                                           2,732,733.00         Endorsed or discounted but undue

Notes receivable – trade acceptance                                          5,422,499.62         Endorsed or discounted but undue

Receivables financing                                                       42,293,141.00                        Pledged
Long-term receivables and non-current assets due
                                                                            66,716,222.75      Factoring financing with recourse right
within one year
Fixed assets                                                               477,655,980.05                      Mortgaged

Intangible assets                                                           47,082,404.81                      Mortgaged

100% equity of Funan Company                                                69,631,957.01
100% equity of Poyang Green Oriental Renewable
                                                                            80,733,192.59
Energy Co., Ltd.
                                                                                                             Pledged [Note]
50% equity of Lianjiang Company                                             68,922,363.62
100% equity of Biyang County Fenghe New
                                                                           105,525,597.14
Energy Power Co., Ltd.
25% equity of Lianjiang Company                                             34,461,181.81          Frozen due to litigation preservation

  Total                                                                   1,425,105,689.00
     Note: The pledged amount refers to the Company’s proportionate share in net assets of each entity.
     2. Monetary items in foreign currencies
                                         Closing balance in foreign                                           RMB equivalent at the end
  Items                                                                            Exchange rate
                                                currencies                                                         of the period
Cash and bank balances

 Including: USD                                         4,694,035.77                  6.9646                                32,692,081.52

               EUR                                      3,015,012.99                  7.4229                                22,380,139.92

               HKD                                      2,719,595.11                  0.8933                                  2,429,414.31

Accounts receivable

 Including: EUR                                         1,061,170.00                  7.4229                                  7,876,958.79


     3. Government grants
     (1) Details
     1) Government grants related to assets
                             Opening balance                                                          Amortization
                                                                                   Closing balance of
  Items                        of deferred         Increase        Amortization                        presented            Remarks
                                                                                    deferred income
                                 income                                                                  under
                                                                                                                      Pursuant to the
                                                                                                                      documents
Xiantao sludge harmless                                                                                    Other
                              17,700,000.00                           610,344.83      17,089,655.17                   numbered Xian Fa
treatment plant                                                                                           income
                                                                                                                      Gai Huan Zi [2019]
                                                                                                                      116 and [2019] 150.
Investment plan on the                                                                                                Pursuant to the
construction of ecological                                                                                 Other      document numbered
                               2,200,000.00        880,000.00          94,189.60        2,985,810.40
civilization of 2020                                                                                      income      Zhu Fa Gai Tou Zi
within the central budget                                                                                             [2020] 204.
No. 2 Sewage Treatment                                                                                                Pursuant to the
Plant and supporting pipe                                                                                  Other      document numbered
                               7,660,000.00                                             7,660,000.00
network projects in Daban                                                                                 income      Chi Cai Zhi Zi Huan
Town, Bahrain Right                                                                                                   [2019] 814.


                                                                  190
                             Opening balance                                                    Amortization
                                                                             Closing balance of
  Items                        of deferred      Increase      Amortization                       presented          Remarks
                                                                              deferred income
                                 income                                                            under
Banner

                                                                                                               Pursuant to the
                                                                                                               documents
Special subsidies for
                                                                                                   Other       numbered E Cai Jian
Xiantao waste power            9,936,051.24                     726,531.48       9,209,519.76
                                                                                                  income       Fa [2015] 199 and
generation project
                                                                                                               Huai Fa Gai Zi
                                                                                                               Huan [2016] 188.
                                                                                                               Pursuant to the
                                                                                                               documents
Shouxian domestic waste
                                                                                                   Other       numbered Huai Fa
incineration power plant      13,034,666.58                   1,002,666.73     12,031,999.85
                                                                                                  income       Gai Zi Huan [2016]
project
                                                                                                               188 and Cai Jian
                                                                                                               [2017] 569.
Urban sewage and
                                                                                                               Pursuant to the
garbage treatment
                                                                                                   Other       document numbered
facilities and sewage pipe     4,456,150.42                     441,822.07       4,014,328.35
                                                                                                  income       Fa Gai Huan Zi
network engineering
                                                                                                               [2015] 431.
projects
Development,
demonstration and
application of time of                                                                                         Pursuant to the
flight mass spectrometry                                                                           Other       document numbered
                                354,166.67                      141,666.72        212,499.95
for soft ionization-high                                                                          income       Shun Ke Fa [2021]
resolution on-line                                                                                             29.
detection of atmospheric
VOCS
Research and application
                                                                                                               Pursuant to the
of water quality and                                                                               Other
                               1,400,000.00                     466,666.68        933,333.32                   document numbered
environment monitoring                                                                            income
                                                                                                               Fo Ke [2021] 27.
technology
R&D and application
project of water quality
                                                                                                               Pursuant to the
comprehensive toxicity
                                                                                                               document numbered
rapid monitoring                               2,320,000.00     890,000.00       1,430,000.00
                                                                                                               Yue Ke Zi Zi [2022]
instrument based on
                                                                                                               145.
electrochemically active
microorganisms
Urban and rural domestic
                                                                                                               Pursuant to the
waste transfer, kitchen
                                                                                                   Other       document numbered
waste resource utilization    10,847,931.04                     388,620.69     10,459,310.35
                                                                                                  income       Xian Fa Gai Huan
and harmless treatment
                                                                                                               Zi [2020] 84.
projects
                                                                                                               Pursuant to the
Subsidies for enterprise
                                                                                                   Other       document numbered
technological                   714,285.72                      142,857.14        571,428.58
                                                                                                  income       Chang Gao Xin
transformation
                                                                                                               Guan Fa [2017] 33.
Subsidies for key projects                                                                                     Pursuant to the
of enterprise intelligent                                                                          Other       document numbered
                               1,527,957.44                     203,061.88       1,324,895.56
transformation of 2018 -                                                                          income       Qu Wei Ban [2019]
2020                                                                                                           36.
                                                                                                               Pursuant to the
Funds for provincial                                                                               Other       document numbered
                               1,055,749.60     800,000.00      360,917.96       1,494,831.64
“Kunpeng Action” plan                                                                           income       Zhe Wei Ban Fa
                                                                                                               [2020] 8.
                                                                                                               Pursuant to the
Incremental tax incentives
                                                                                                   Other       document numbered
for technological              7,586,240.00                     948,280.00       6,637,960.00
                                                                                                  income       Xiang Gong Xin
transformation
                                                                                                               Tou Zi [2019] 57.
                                                                                                               Pursuant to the
The second batch of
                                                                                                   Other       document numbered
awards for rental housing      5,743,156.33                     165,270.68       5,577,885.65
                                                                                                  income       Chang Zhu Zu Tong
in the high-tech zone
                                                                                                               [2020] 5.


                                                              191
                             Opening balance                                                         Amortization
                                                                                  Closing balance of
  Items                        of deferred        Increase        Amortization                        presented           Remarks
                                                                                   deferred income
                                 income                                                                 under
The third batch of
                                                                                                                    Pursuant to the
municipal subsidies for
                                                                                                        Other       document numbered
technological                   4,562,500.00                        500,000.00        4,062,500.00
                                                                                                       income       Chang Gong Xin
transformation of
                                                                                                                    Tou Zi Fa [2020] 72.
industrial enterprises
The fifth batch of special                                                                                          Pursuant to the
funds for raising                                                                                       Other       document numbered
                                1,000,000.00                        297,520.66         702,479.34
manufacturing power in                                                                                 income       Xiang Cai Qi Zhi
Hunan Province                                                                                                      [2019] 72.
                                                                                                                    Pursuant to the
Special funds for air
                                                                                                        Other       document numbered
pollution prevention and         800,000.00                         100,000.00         700,000.00
                                                                                                       income       Chang Cai Zi Huan
control
                                                                                                                    Zhi [2019] 41.
Special subsidies for                                                                                               Pursuant to the
construction and                                                                                        Other       document numbered
                                 416,444.76                          94,781.44         321,663.32
application of industrial                                                                              income       Chang Cai Qi Zhi
Internet platform                                                                                                   [2021] 62.
The third batch of special                                                                                          Pursuant to the
funds for raising                                                                                       Other       document numbered
                                 416,444.76                          94,781.44         321,663.32
manufacturing power in                                                                                 income       Chang Cai Qi Zhi
Hunan Province of 2021                                                                                              [2021] 54.
The fourth batch of                                                                                                 Pursuant to the
special funds for raising                                                                               Other       document numbered
                                 129,558.22                          13,381.99         116,176.23
manufacturing power in                                                                                 income       Chang Cai Qi Zhi
Hunan Province of 2021                                                                                              [2021] 55.
Special funds for                                                                                                   Pursuant to the
provincial modern service                                                                               Other       document numbered
                                  94,689.87                          28,569.01           66,120.86
industry of Hi-tech                                                                                    income       Chang Fa Gai Fu
District                                                                                                            Wu [2020] 284.
                                                                                                                    Special funds for the
                                                                                                                    integration of
                                                                                                                    advanced
Integrated construction of
                                                                                                                    manufacturing and
intelligent equipment and
                                                                                                        Other       modern service
intelligent sanitation                          30,400,000.00       304,680.09      30,095,319.91
                                                                                                       income       industries of 2021
services of Infore
                                                                                                                    from National
Zoomlion
                                                                                                                    Development and
                                                                                                                    Reform
                                                                                                                    Commission.
The second batch of
                                                                                                                    Pursuant to the
subsidized loans for
                                                                                                        Other       document numbered
industrial technology                            1,939,750.00        68,421.52      1,871,328.48
                                                                                                       income       Chang Cai Qi Zhi
transformation in
                                                                                                                    [2022] 15.
Changsha of 2021
The fifth batch of special                                                                                          Pursuant to the
funds for raising                                                                                       Other       document numbered
                                                 1,000,000.00                         1,000,000.00
manufacturing power in                                                                                 income       Chang Cai Qi Zhi
Hunan Province of 2022                                                                                              [2022] 53.
  Subtotal                    91,635,992.65     37,339,750.00      8,085,032.61    120,890,710.04
     2) Government grants related to income and used to compensate future relevant costs, expenses or losses
                                                                                              Amounts
                                                                              Closing
               Opening balance                 Amounts                                          carried
                                                                             balance of
  Items          of deferred   Increase         carried         Decrease                       forward                 Remarks
                                                                              deferred
                   income                      forward                                        presented
                                                                              income
                                                                                                 under
Central                                                                                                        Pursuant to the
special                                                                                                        “Agreement on the
construction                                                                                                   Appropriation of Central
                                                                                              Other non-
supporting      10,000,000.00                                10,000,000.00                                     Special Construction
                                                                                           current liabilities
funds for                                                                                                      Funds for PPP Project
Kaili PPP                                                                                                      Phase II of Kaili
Project                                                                                                        Municipal Domestic


                                                                  192
                                                                                             Amounts
                                                                             Closing
               Opening balance              Amounts                                            carried
                                                                            balance of
  Items          of deferred   Increase      carried         Decrease                         forward             Remarks
                                                                             deferred
                   income                   forward                                          presented
                                                                             income
                                                                                                under
                                                                                                          Waste Collection and
                                                                                                          Transportation System”.
  Subtotal      10,000,000.00                             10,000,000.00
     2) Government grants related to income and used to compensate incurred relevant costs, expenses or losses

  Items                                          Amount            Presented under       Remarks

VAT refund                                        18,822,951.14      Other income
                                                                                         Pursuant to the document numbered Yong
Enterprise supporting funds                       15,420,000.00      Other income
                                                                                         Mei Bao Jing [2019] 10.
                                                                                         Pursuant to the document numbered Chang
Subsidies for new energy vehicles                  9,558,600.00      Other income
                                                                                         Zheng Ban Han [2019] 11.
Subsidies for energy conservation and                                                    Pursuant to the document numbered Chang
                                                   7,300,000.00      Other income
emission reduction of 2022                                                               Cai Qi Zhi [2022] 16.
                                                                                         Pursuant to the document numbered Zhe Wei
Subsidies for “Kunpeng Action” plan              6,200,000.00      Other income
                                                                                         Ban Fa [2020] 8.
                                                                                         Pursuant to the document numbered Ren She
Subsidies for stabilizing employment               3,850,018.51      Other income
                                                                                         Bu Fa [2022] 31.
                                                                                         Pursuant to the “Notice on Applying for
Realization of industrial policies of Hi-
                                                   3,600,000.00      Other income        Supporting Items under Changsha Hi-tech
tech District of 2021
                                                                                         District Policy in 2021”.
Funds for ecological torch plan of                                                       Pursuant to the document numbered Chang
                                                   2,703,100.00      Other income
Changsha intelligent vehicle industry                                                    Zheng Ban Fa [2020] 12.
Special funds for raising
                                                                                         Pursuant to the document numbered Chang
manufacturing power in Hunan                       2,500,000.00      Other income
                                                                                         Cai Qi Zhi [2022] 45.
Province
                                                                                         Pursuant to the document numbered Shun
Subsidies for sludge treatment                     2,584,059.14      Other income
                                                                                         Guan [2010] 238.
Awards for purchasing local auxiliary                                                    Pursuant to the document numbered Chang
                                                   2,100,000.00      Other income
products                                                                                 Cai Qi Zhi [2022] 50.
Promotion and application of new
                                                                                         Pursuant to the document numbered Chang
energy vehicles in 2020 and previous               2,000,000.00      Other income
                                                                                         Cai Qi Zhi [2022] 54.
years
                                                                                         Pursuant to the document numbered Xiang
R&D fund awards                                    1,692,000.00      Other income
                                                                                         Ke Ji [2021] 13.
Subsidies for stabilizing employment                                                     Pursuant to the document numbered Yue Ren
                                                   1,411,493.00      Other income
and entrepreneurship                                                                     She Gui [2021] 12.
                                                                                         Pursuant to the document numbered Qu Wei
Subsidies for strong cluster chains                1,000,000.00      Other income
                                                                                         Ban [2021] 57.
The second batch of awards for talent                                                    Pursuant to the document numbered Chang
                                                   1,000,000.00      Other income
and science and technology                                                               Ke Fa [2021] 3.
                                                                                         Pursuant to the document numbered Qu Wei
Subsidies for talent policy                        2,000,000.00      Other income
                                                                                         Ban [2021] 57.
                                                                                         Pursuant to the document numbered Qu Wei
Capital market supporting awards                   1,000,000.00      Other income
                                                                                         [2016] 53.
                                                                                         Pursuant to the documents numbered Fo
Awards for enterprises above                                                             Gong Xin Han [2021] 517, [2022] 439,
                                                     950,000.00      Other income
designated scale                                                                         [2021] 382, and Shun Jing Han [2022] 234,
                                                                                         [2021] 629.
                                                                                         Pursuant to the document numbered Qu Wei
Awards for enterprise cultivation                    600,000.00      Other income
                                                                                         Ban [2021] 57.
                                                                                         Pursuant to the document “Notice on
Awards for military-civilian integration                                                 Carrying Out the Implementation of
                                                     468,551.00      Other income
policy                                                                                   Military-civilian Integration Policy in
                                                                                         Shangyu District in 2021”.
                                                                                         Pursuant to the document numbered Yu Qu
Subsidies for high-level talents                     359,982.22      Other income
                                                                                         Ren Ling [2017] 2.
Subsidies for stabilizing employment                                                     Pursuant to the document numbered Chang
                                                     269,000.00      Other income
of Hi-tech District                                                                      Gao Xin Guan Fa [2022] 4.


                                                               193
  Items                                               Amount           Presented under        Remarks
The second batch of subsidies and
                                                                                              Pursuant to the document numbered Chang
awards for accredited hi-tech                            200,000.00      Other income
                                                                                              Ke Fa [2019] 51.
enterprises in Changsha of 2020
Provincial air quality ecological                                                             Pursuant to the document numbered E Cai
                                                         200,000.00      Other income
compensation funds                                                                            Huan Fa [2021] 31.
Awards for Changsha green
                                                                                              Pursuant to the document numbered Chang
manufacturing system construction                        200,000.00      Other income
                                                                                              Cai Qi Zhi [2022] 43.
project of 2021
Awards for frontrunner of average                                                             Pursuant to the document numbered Qu Wei
                                                         200,000.00      Other income
benefit per mu                                                                                Ban [2021] 57.
Subsidies for vocational skill                                                                Pursuant to the document numbered Shao
                                                         186,960.00      Other income
enhancement                                                                                   Shi Ren She Fa [2020] 9.
                                                                                              Pursuant to the document numbered Fo Zu
Subsidies for talent program                             150,000.00      Other income
                                                                                              Tong [2022] 49.
                                                                                              Pursuant to the document numbered Shao
Awards for academician workstations                      150,000.00      Other income
                                                                                              Shi Ke Xie [2021] 10.
Awards for acceleration of scientific
                                                                                              Pursuant to the document numbered Qu Wei
and technological innovation and                         130,000.00      Other income
                                                                                              Ban [2021] 57.
modern service industry
Industrial and trade economic                                                                 Pursuant to the document numbered Cao
                                                         101,200.00      Other income
development incentives                                                                        Gong Wei [2019] 166.
Awards for accreditation projects under
                                                                                              Pursuant to the document numbered Qu Wei
scientific and technological innovation                   90,000.00      Other income
                                                                                              Ban [2021] 57.
policy
Subsidies for employment and                                                                  Pursuant to the document numbered Qu Wei
                                                          34,665.20      Other income
internship of college students                                                                [2019] 52.
                                                                                              Pursuant to the document numbered Zhu Fa
Enterprise supporting funds                               30,000.00      Other income
                                                                                              Gai Tou Zi [2020] 204.
Other piecemeal subsidies                              4,527,439.28      Other income

Subtotal                                              93,590,019.49
    (2) In the current period, government grants included into profit or loss totaled 101,675,052.10 yuan.


VI. Changes in the consolidation scope
    (I) Business combination not under common control
    1. Business combination not under common control in the current period
    (1) Basic information
                                                                                         Proportion of equity
  Acquirees                 Equity acquisition date      Equity acquisition cost                                  Equity acquisition method
                                                                                            acquired (%)
                                                                                                                     Business combination
Yolsh Company                     4/30/2022                       50,000,002.00                 70.00                 not under common
                                                                                                                            control
                                  9/17/2015                       43,750,000.00                 35.00                Business combination
Lianjiang Company                                                                                                     not under common
                                  2/28/2022                      120,000,000.00                 50.00                       control
    (Continued)
                                                                                   Acquiree’s income from
                                                 Determination basis for                                         Acquiree’s net profit from
  Acquirees              Acquisition date                                          acquisition date to period
                                                    acquisition date                                            acquisition date to period end
                                                                                              end
Yolsh Company                  4/30/2022          The equity transfer is                       49,388,868.87                  -8,190,158.87
                                                 completed and relevant
Lianjiang Company              2/28/2022         handover procedures are                       42,873,081.36                   2,537,111.74
                                                        finished


    2. Combination costs and goodwill
    (1) Details



                                                                   194
  Items                                                                         Yolsh Company                    Lianjiang Company

Combination costs                                                                          50,000,002.00                  240,000,000.00

    Cash                                                                                   50,000,002.00                  120,000,000.00
    Acquisition-date fair value of equity held before the
                                                                                                                          120,000,000.00
    acquisition date
Total combination costs                                                                    50,000,002.00                  240,000,000.00

Less: Share of fair value of net identifiable assets acquired                              36,610,769.39                  193,967,982.16

Goodwill                                                                                   13,389,232.61                    46,032,017.84
     3. Acquisition-date identifiable assets and liabilities of acquirees
     (1) Details

                                                  Yolsh Company [Note]                                     Lianjiang Company
  Items                                 Acquisition-date          Acquisition-date           Acquisition-date         Acquisition-date
                                           fair value             carrying amount               fair value            carrying amount
Assets

  Cash and bank balances                      5,299,149.95                  5,299,149.95          4,893,338.31                 4,893,338.31

  Notes receivable                              271,130.00                   271,130.00

  Accounts receivable                        15,757,462.39              15,757,462.39            29,888,953.53              29,888,953.53

  Receivables financing                         840,948.31                   840,948.31

  Advances paid                                 562,705.85                   562,705.85              66,217.14                   66,217.14

  Other receivables                           7,910,153.57                  7,910,153.57          4,615,314.47                 4,615,314.47

  Inventories                                20,099,445.54              20,099,445.54             3,094,224.43                 3,094,224.43

  Contract assets                                34,495.56                    34,495.56

  Other current assets                                                                            3,492,951.91                 3,492,951.91

  Fixed assets                               17,428,908.65              17,428,908.65             2,186,840.34                 2,186,840.34

  Construction in progress                    4,454,334.01                  4,454,334.01          3,796,874.62                 3,796,874.62

  Right-of-use assets                         1,931,035.27                  1,931,035.27

  Intangible assets                           1,196,518.08                  1,196,518.08        325,069,114.54            205,069,114.54

  Long-term prepayments                         512,670.00                   512,670.00           2,798,988.13                 2,798,988.13

  Deferred tax assets                                                                               196,637.85                  196,637.85

  Other non-current assets                      655,300.17                   655,300.17               9,551.32                    9,551.32

Liabilities

  Short-term borrowings                      15,534,884.77              15,534,884.77

  Accounts payable                           21,185,688.75              21,185,688.75            36,364,819.11              36,364,819.11

  Contract liabilities                        2,412,975.42                  2,412,975.42

  Employee benefits payable                   1,897,556.15                  1,897,556.15            986,052.40                  986,052.40

  Taxes and rates payable                       209,143.28                   209,143.28           4,660,003.12                 4,660,003.12

  Other payables                             41,383,842.93              41,383,842.93            25,979,380.96              25,979,380.96

  Other current liabilities                     313,686.80                   313,686.80



                                                                   195
                                                   Yolsh Company [Note]                                   Lianjiang Company
  Items                                  Acquisition-date         Acquisition-date            Acquisition-date          Acquisition-date
                                            fair value            carrying amount                fair value             carrying amount
  Lease liabilities                           1,217,134.58                  1,217,134.58

  Long-term payables                          2,368,245.54                  2,368,245.54

  Long-term borrowings                                                                             88,150,768.84              88,150,768.84

  Deferred tax liabilities                                                                         30,000,000.00
Capital increase by shareholders
                                             61,870,000.00
[Note]
Net assets                                   52,301,099.13              -9,568,900.87             193,967,982.16             103,967,982.16

Less: Non-controlling interest

Net assets acquired                          52,301,099.13              -9,568,900.87             193,967,982.16             103,967,982.16
       Note: On April 30, 2022, the Company’s subsidiary Guangdong Infore Environmental Investment Co., Ltd. acquired part of the
equity of Yolsh Company at a consideration of 2 yuan, and increased its capital by 61.87 million yuan together with original
shareholders after the acquisition, which were considered as a bundled transaction, and these two transactions as a whole are
considered as one transaction for obtaining the control in the accounting treatment.


       4. Gains/Losses on fair value remeasurement of equity held before the acquisition date
                                                                                                                         Changes in other
                                                                   Gains/Losses on         Determination method
                                             Acquisition-date                                                             comprehensive
                        Acquisition-date                               fair value          and major assumptions
                                               fair value of                                                         income/equity related to
                      carrying amount of                          remeasurement of         on acquisition-date fair
Acquirees                                       equity held                                                            equity held before the
                       equity held before                         equity held before         value of equity held
                                                 before the                                                               acquisition date
                      the acquisition date                          the acquisition         before the acquisition
                                             acquisition date                                                        transferred to investment
                                                                          date                       date
                                                                                                                    income/ retained earnings
Lianjiang
                          32,103,685.75       84,000,000.00             51,896,314.25          Purchase price
Company
     (II) Changes in the consolidation scope due to other reasons
       1. Entities brought into the consolidation scope
                                                            Equity                                                            Capital
                                                                                   Equity                Capital
  No.                         Entities                    acquisition                                                       contribution
                                                                               acquisition date        contribution
                                                            method                                                         proportion (%)
             Shaodong Tongying Environmental
   1                                                         Set up               1/7/2022                 283,200.00           100.00
             Sanitation Management Co., Ltd.
             Xiangyin County Yingsheng
   2                                                         Set up               1/24/2022                500,000.00           100.00
             Environmental Protection Co., Ltd.
             Shengzhou Yinglia Environmental
   3                                                         Set up               1/19/2022                100,000.00           100.00
             Sanitation Management Co., Ltd.
             Guilin Yingsheng Environmental
   4                                                         Set up               1/28/2022               [Note]                100.00
             Sanitation Management Co., Ltd.
             Guiyang Yinglian Environmental
   5                                                         Set up               2/11/2022               [Note]                100.00
             Equipment Co., Ltd.
             Taicang Zhongying Environmental
   6                                                         Set up               2/21/2022               [Note]                100.00
             Technology Co., Ltd.
             Baoding Yinghe Environmental
   7                                                         Set up               2/28/2022                500,000.00           100.00
             Sanitation Management Co., Ltd.
             Wenshui County Yingsheng
   8         Environmental Sanitation Service Co.,           Set up               2/16/2022                500,000.00           100.00
             Ltd.
             Maoming Yinghe Urban
   9         Environmental Sanitation Service Co.,           Set up               1/4/2022               7,000,000.00           100.00
             Ltd.
             Wushan County Tongying
  10         Environmental Sanitation Service Co.,           Set up               2/14/2022                500,000.00           100.00
             Ltd.


                                                                      196
                                                Equity                                                Capital
                                                                   Equity           Capital
No.                   Entities                acquisition                                           contribution
                                                               acquisition date   contribution
                                                method                                             proportion (%)
      Harbin Tongying Environmental
11                                              Set up           3/23/2022            200,000.00      100.00
      Sanitation Management Co., Ltd.
      Pengshui County Yingchuang
12    Environmental Sanitation Service Co.,     Set up           3/11/2022            500,000.00      100.00
      Ltd.
      Bengbu Tongying Environmental
13                                              Set up           1/29/2022            200,000.00      100.00
      Sanitation Management Co., Ltd.
      Daye Tongying Environmental
14                                              Set up           4/11/2022            100,000.00      100.00
      Service Co., Ltd.
      Urumqi Lianying Urban
15                                              Set up            6/2/2022          2,000,000.00      100.00
      Environmental Service Co., Ltd.
      Baoting Tongying Environmental
16                                              Set up            6/8/2022            100,000.00      100.00
      Sanitation Service Co., Ltd.
      Zhaoqing Duanzhou District
17    Zhongying Urban Environmental             Set up           5/25/2022          [Note]            100.00
      Management Co., Ltd.
      Zhanjiang Development Zone
18    Zhongying Urban Environmental             Set up           6/10/2022          1,000,000.00      100.00
      Service Co., Ltd.
      Shaoxing Lianbao Environmental
19                                              Set up           5/27/2022            100,000.00      100.00
      Sanitation Management Co., Ltd.
      Xingguo County Yinghe
20    Environmental Sanitation                  Set up            6/9/2022            300,000.00      100.00
      Management Co., Ltd.
      Huaibei Tongying Environmental
21                                              Set up           4/12/2022         33,000,000.00      100.00
      Sanitation Management Co., Ltd.
      Yongzhou Lingling District Tongying
22    Environmental Sanitation Service Co.,     Set up           6/21/2022          [Note]            100.00
      Ltd.
      Shaoyang Tongying Environmental
23                                              Set up           5/10/2022            100,000.00      100.00
      Sanitation Service Co., Ltd.
      Jianli Yinglian Environmental
24                                              Set up           4/29/2022            100,000.00      100.00
      Sanitation Management Co., Ltd.
      Suzhou Gusu District Zhongying
25                                              Set up            6/9/2022          [Note]            100.00
      Environmental Industry Co., Ltd.
      Guangzhou Zengcheng District
26    Yinghe Urban Environmental Service        Set up           5/24/2022          [Note]            100.00
      Co., Ltd.
      Baishan Yingyuan Environmental
27                                              Set up            6/9/2022            200,000.00      100.00
      Service Engineering Co., Ltd.
      Shenzhen Longhua District Yinglian
28                                              Set up            7/5/2022          3,000,000.00      100.00
      Urban Service Co., Ltd.
      Guzhang County Yinglian
29    Environmental Sanitation                  Set up           6/28/2022          7,200,000.00      100.00
      Management Co., Ltd.
      Changshu Zhongying Environmental
30                                              Set up           4/26/2022          [Note]            100.00
      Sanitation Service Co., Ltd.
      Suining Anju Yinglian Environmental
31                                              Set up            7/7/2022            200,000.00      100.00
      Sanitation Service Co., Ltd.
      Jieyang Yingdong Urban
32                                              Set up            7/7/2022          [Note]            100.00
      Environmental Management Co., Ltd.
      Tongdao Yinglian Jiamei
33                                              Set up            7/5/2022          2,652,000.00       51.00
      Environmental Industry Co., Ltd.
      Heyang Yinglian Urban
34                                              Set up           7/19/2022          1,000,000.00      100.00
      Environmental Service Co., Ltd.
      Ninghai County Tongying
35    Environmental Sanitation                  Set up           8/10/2022            100,000.00      100.00
      Management Co., Ltd.
      Zhanjiang Potou District Yingsheng
36    Environmental Sanitation                  Set up           8/24/2022          [Note]            100.00
      Management Co., Ltd.
      Liaoyang Yinglian Urban
37                                              Set up           8/10/2022          3,000,000.00      100.00
      Environmental Sanitation

                                                         197
                                                Equity                                                Capital
                                                                   Equity           Capital
No.                   Entities                acquisition                                           contribution
                                                               acquisition date   contribution
                                                method                                             proportion (%)
      Management Co., Ltd.

      Linqing Yinglian Urban
38                                              Set up            8/3/2022          1,000,000.00      100.00
      Environmental Service Co., Ltd.
      Zhanjiang Xiashan District Yinghe
39    Urban Environmental Management            Set up            8/8/2022          [Note]            100.00
      Co., Ltd.
      Haicheng Zhongying Environmental
40                                              Set up            9/8/2022          8,000,000.00      100.00
      Sanitation Management Co., Ltd.
      Foshan Shunde District Yingjia Urban
41                                              Set up            9/5/2022          1,680,000.00       70.00
      Environmental Service Co., Ltd.
      Xiamen Yingsheng Environmental
42                                              Set up            9/8/2022            500,000.00      100.00
      Service Co., Ltd.
      Nanfeng Yingniang Environmental
43                                              Set up           9/15/2022            255,000.00       51.00
      Sanitation Management Co., Ltd.
      Tengchong Yinglian Environmental
44                                              Set up           9/22/2022            200,000.00      100.00
      Protection Technology Co., Ltd.
      Chuzhou Yingsheng Environmental
45                                              Set up           10/20/2022           500,000.00      100.00
      Sanitation Management Co., Ltd.
      Fuyang Yingsheng Environmental
46                                              Set up           10/14/2022           300,000.00      100.00
      Sanitation Management Co., Ltd.
      Changsha Zhiying Environmental
47                                              Set up           10/9/2022            300,000.00       60.00
      Sanitation Management Co., Ltd.
      Foshan Shunde District Yingzhi
48    Smart City Environmental Service          Set up           12/14/2022         [Note]            100.00
      Co., Ltd.
      Pingdingshan Yingsheng
49    Environmental Sanitation                  Set up           11/10/2022         [Note]            100.00
      Management Co., Ltd.
      Chenzhou Zhongying Environmental
50                                              Set up           11/21/2022           600,000.00      100.00
      Service Co., Ltd.
      Zhenfeng Yinglian Environmental
51                                              Set up           12/6/2022          [Note]            100.00
      Sanitation Management Co., Ltd.
      Linfen Yaodu District Yingsheng
52    Environmental Sanitation                  Set up           12/12/2022         [Note]            100.00
      Management Co., Ltd.
      Fuyang Zhiying Environmental
53                                              Set up           11/24/2022           300,000.00      100.00
      Sanitation Management Co., Ltd.
      Chengdu Yinggang Urban
54    Environmental Sanitation Service Co.,     Set up           12/7/2022          [Note]            100.00
      Ltd.
      Foshan Shunde District Yingteng
55    Smart City Environmental Service          Set up           12/9/2022          1,500,000.00      100.00
      Co., Ltd.
      Qingyang County Yinghe
56    Environmental Sanitation                  Set up           11/30/2022         [Note]            100.00
      Management Co., Ltd.
      Changsha Fenglan Environmental
57                                              Set up           1/26/2022          [Note]            100.00
      Protection Technology Co., Ltd.
      Changsha Infore Environmental
58                                              Set up            1/6/2022          [Note]            100.00
      Industry Co., Ltd.
      Hubei Fenghe New Materials Co.,
59                                              Set up           9/26/2022          [Note]            100.00
      Ltd.
      Heyang Zhongying Environmental
60                                              Set up           9/19/2022          [Note]            100.00
      Sanitation Management Co., Ltd.
      Lanling County Lianying
61    Environmental Sanitation Service Co.,     Set up           11/4/2022          1,000,000.00      100.00
      Ltd.
      Pingdingshan Yinghe Environmental
62                                              Set up           11/30/2022         [Note]            100.00
      Sanitation Management Co., Ltd.
      Shenzhen Infore City Service
63                                              Set up           3/25/2022          [Note]            100.00
      Intelligent Technology Co., Ltd.


                                                         198
                                                           Equity                                                              Capital
                                                                                  Equity                 Capital
  No.                        Entities                    acquisition                                                         contribution
                                                                              acquisition date         contribution
                                                           method                                                           proportion (%)
           Guangdong Infore Mobile Charging
   64                                                   Set up              1/12/2022             [Note]                        100.00
           Technology Co., Ltd.
           Guangdong Infore Intelligent
   65                                                   Set up              8/12/2022               200,000.00                  100.00
           Cleaning Technology Co., Ltd.
           Changfeng County Yinghe
   66      Environmental Sanitation                     Set up             12/16/2022             [Note]                        100.00
           Management Co., Ltd.
     Note: As of December 31, 2022, these companies’ registered capitals have not been contributed.
     2. Entities excluded from the consolidation scope

  Entities                                                                 Equity disposal method                 Equity disposal date

Zoomlion Heavy (Ningxia) Environmental Industry Co., Ltd.                        Cancellation                            3/14/2022
Guangdong Yinglian Urban Environmental Management Co.,
                                                                                 Cancellation                            6/15/2022
Ltd.

Dali County Zoomlion Environmental Industry Co., Ltd.                            Cancellation                            6/17/2022
Kunming Zhongfeng Environmental Sanitation Equipment Co.,
                                                                                 Cancellation                            7/26/2022
Ltd.
Changsha Fenglan Environmental Protection Technology Co.,
                                                                                 Cancellation                            7/25/2022
Ltd.
Foshan Yinghe Investment Co., Ltd.                                               Cancellation                            11/18/2022


VII. Interest in other entities
     (I) Interest in significant subsidiaries
     1. Significant subsidiaries

                                   Main operating     Place of                                   Holding proportion (%)
  Subsidiaries                                                           Business nature                                  Acquisition method
                                       place        registration                                   Direct     Indirect
                                                                                                                               Business
                                                                        Fan equipment
Shangfeng Industrial                 Shaoxing,      Shaoxing,                                                               combination not
                                                                       manufacturing and           60.20
Company                              Zhejiang       Zhejiang                                                                 under common
                                                                            others
                                                                                                                                control
                                                                                                                               Business
                                                                         Environmental
                                    Shenzhen,       Shenzhen,                                                               combination not
Green Oriental Company                                                 monitoring and solid        70.00
                                    Guangdong       Guangdong                                                                under common
                                                                         waste treatment
                                                                                                                                control
                                                                                                                               Business
                                                                         Environmental
                                        Funan,        Funan,                                                                combination not
Funan Company                                                          monitoring and solid                    70.00
                                        Anhui         Anhui                                                                  under common
                                                                         waste treatment
                                                                                                                                control
Xiantao Green Oriental                                                                                                         Business
                                                                         Environmental
Environmental Power                     Xiantao,     Xiantao,                                                               combination not
                                                                       monitoring and solid                    70.00
Generation Co., Ltd. (the                Hubei        Hubei                                                                  under common
                                                                         waste treatment
“Xiantao Company”)                                                                                                            control
                                                                                                                               Business
Shouxian Green Oriental New                                              Environmental
                                     Shouxian,      Shouxian,                                                               combination not
Energy Co., Ltd. (the                                                  monitoring and solid                    70.00
                                      Anhui          Anhui                                                                   under common
“Shouxian Company”)                                                    waste treatment
                                                                                                                                control
Xiantao Yinghe                                                           Environmental
                                        Xiantao,     Xiantao,
Environmental Protection Co.,                                          monitoring and solid        74.88       5.70             Set up
                                         Hubei        Hubei
Ltd.                                                                     waste treatment
                                                                         Environmental
                                     Foshan,         Foshan,
Infore Technology Company                                              monitoring and solid       100.00                        Set up
                                    Guangdong       Guangdong
                                                                         waste treatment
                                                                                                                               Business
                                                                         Environmental
Foshan Infore Environmental          Foshan,         Foshan,                                                                combination not
                                                                       monitoring and solid       100.00
Water Treatment Co., Ltd.           Guangdong       Guangdong                                                                under common
                                                                         waste treatment
                                                                                                                                control

                                                                   199
                                 Main operating       Place of                                 Holding proportion (%)
  Subsidiaries                                                            Business nature                               Acquisition method
                                     place          registration                                 Direct    Indirect
                                                                                                                             Business
                                                                          Environmental
                                    Foshan,          Foshan,                                                             combination not
Huaqingyuan Company                                                     monitoring and solid                100.00
                                   Guangdong        Guangdong                                                             under common
                                                                          waste treatment
                                                                                                                              control
                                                                                                                             Business
Foshan Shunde District                                                    Environmental
                                    Foshan,          Foshan,                                                             combination not
Huaying Environmental                                                   monitoring and solid                100.00
                                   Guangdong        Guangdong                                                             under common
Water Co., Ltd.                                                           waste treatment
                                                                                                                              control
Foshan Shunde District                                                                                                       Business
                                                                          Environmental
Yuanrun Water                       Foshan,          Foshan,                                                             combination not
                                                                        monitoring and solid                100.00
Environmental Protection Co.,      Guangdong        Guangdong                                                             under common
                                                                          waste treatment
Ltd.                                                                                                                          control
                                                                                                                             Business
Foshan Shunde Huabo                                                       Environmental
                                    Foshan,          Foshan,                                                             combination not
Environmental Water Co.,                                                monitoring and solid                100.00
                                   Guangdong        Guangdong                                                             under common
Ltd.                                                                      waste treatment
                                                                                                                              control
                                                                                                                             Business
Zoomlion Environmental              Changsha,       Changsha,                                                              combination
                                                                          Smart sanitation      100.00
Company                              Hunan           Hunan                                                                under common
                                                                                                                              control
Changsha Zoomlion
                                     Changsha,       Changsha,
Changgao Environmental                                                  Smart sanitation                    100.00            Set up
                                       Hunan           Hunan
Industry Co., Ltd.
Fujian Nan’an Infore Urban
                                     Changsha,       Changsha,
Environmental Service Co.,                                              Smart sanitation                    80.00             Set up
                                       Hunan           Hunan
Ltd.
Zhangjiajie Zoomlion
                                    Zhangjiajie,    Zhangjiajie,
Environmental Industry Co.,                                             Smart sanitation                    90.00             Set up
                                       Hunan           Hunan
Ltd.
Cili County Zoomlion
Huabao Environmental                Cili, Hunan     Cili, Hunan         Smart sanitation                    60.00             Set up
Industry Co., Ltd.
Hanshou Zoomlion
                                      Hanshou,       Hanshou,
Environmental Industry Co.,                                             Smart sanitation                    90.00             Set up
                                       Hunan           Hunan
Ltd.
Longhui County Zoomlion
                                      Longhui,       Longhui,
Environmental Industry Co.,                                             Smart sanitation                    100.00            Set up
                                       Hunan           Hunan
Ltd.
Shimen Zoomlion
                                      Shimen,         Shimen,
Environmental Industry Co.,                                             Smart sanitation                    90.00             Set up
                                       Hunan           Hunan
Ltd.
Ningbo Infore Finance Lease           Ningbo,         Ningbo,
                                                                          Finance lease          99.31       0.69             Set up
Co., Ltd.                             Zhejiang       Zhejiang
      (II) Transactions resulting in changes in subsidiaries’ equity but without losing control
     1. Changes in subsidiaries’ equity

  Subsidiaries                             Date of change           Holding proportion before change Holding proportion after change
Liling Zhaoyang
Environmental Protection Co.,                April 2022                           85.00%                                90.00%
Ltd.
     2. Effect of transactions on non-controlling interest and equity attributable to parent company

  Items                                                                            Liling Zhaoyang Environmental Protection Co., Ltd.

Acquisition costs

  Cash                                                                                                                      12,000,000.00

Total acquisition costs                                                                                                     12,000,000.00
Less: Share in subsidiaries’ net assets based on acquired net assets
                                                                                                                            10,318,240.61
proportion


                                                                   200
  Items                                                                            Liling Zhaoyang Environmental Protection Co., Ltd.

Balance                                                                                                                     1,681,759.39

    Including: Capital reserve adjusted                                                                                     1,681,759.39
     (III) Interest in joint ventures or associates
     1. Significant associates

                            Main operating       Place of                             Holding proportion (%) Accounting treatment on
   Associates                                                    Business nature                               investments in joint
                                place          registration                            Direct      Indirect   ventures or associates
Foshan Yingtong
Electrical Materials             Foshan          Foshan           manufacturing                       49.00          Equity method
Co., Ltd.


     2. Main financial information of significant associates
                                                                   Closing balance/                         Opening balance/
                                                               Current period cumulative                 March to December 2021
  Items
                                                          Foshan Yingtong Electrical Materials      Foshan Yingtong Electrical Materials
                                                                       Co., Ltd.                                 Co., Ltd.
Current assets                                                               1,089,506,862.74                          1,217,742,853.56

Non-current assets                                                             201,274,064.95                            207,896,682.32

Total assets                                                                 1,290,780,927.69                          1,425,639,535.88

Current liabilities                                                            691,609,958.01                            785,232,779.36

Non-current liabilities                                                             520,544.08                               543,576.58

Total liabilities                                                              692,130,502.09                            785,776,355.94

Non-controlling interest                                                          68,425,663.17                           72,189,124.88

Equity attributable to owners of parent company                                530,224,762.44                            567,674,055.06

Proportionate share in net assets                                              259,810,133.60                            278,160,286.98

Adjustments

       Others                                                                   -30,876,879.51                            -27,872,012.67

Carrying amount of investments in associates                                   228,933,254.09                            250,288,274.31

Operating revenue                                                            2,238,921,694.12                          2,995,793,551.09

Net profit                                                                      -44,464,542.43                            13,526,119.01


     3. Aggregated financial information of insignificant joint ventures and associates
                                                                        Closing balance/                      Opening balance/
  Items
                                                                    Current period cumulative           Preceding period comparative
Associates

     Total carrying amount of investments                                          447,896,705.75                        353,292,507.00

               Net profit                                                           31,671,037.49                         31,596,860.77

               Other comprehensive income

               Total comprehensive income                                           31,671,037.49                         31,596,860.77


VIII. Risks related to financial instruments
     In risk management, the Company aims to seek the appropriate balance between the risks and benefits from its use of financial

                                                                    201
instruments and to mitigate the adverse effects that the risks of financial instruments have on the Company’s financial performance,
so as to maximize the profits of shareholders and other equity investors. Based on such risk management objectives, the Company’s
risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and
controls, and to monitor risks and adherence to limits on a timely and reliable basis.
     The Company has exposure to the following risks from its use of financial instruments, which mainly include: credit risk,
liquidity risk, and market risk. The Management has deliberated and approved policies concerning such risks, and details are:
     (I) Credit risk
     Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge
an obligation.
     1. Credit risk management practice
     (1) Evaluation method of credit risk
     At each balance sheet date, the Company assesses whether the credit risk on a financial instrument has increased significantly
since initial recognition. When assessing whether the credit risk has increased significantly since initial recognition, the Company
takes into account reasonable and supportable information, which is available without undue cost or effort, including qualitative and
quantitative analysis based on historical data, external credit risk rating, and forward-looking information. The Company determines
the changes in default risk of financial instruments during the estimated lifetime through comparison of the default risk at the balance
sheet date and the initial recognition date, on an individual basis or a collective basis.
     The Company considers the credit risk on a financial instrument has increased significantly when one or more of the following
qualitative and quantitative standards are met:
     1) Quantitative standard mainly relates to the scenario in which, at the balance sheet date, the probability of default in the
remaining lifetime has risen by more than a certain percentage compared with the initial recognition;
     2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or financial position, present or
expected changes in technology, market, economy or legal environment that will have significant adverse impact on the debtor’s
repayment ability.
     (2) Definition of default and credit-impaired assets
     A financial instrument is defined as defaulted when one or more following events have occurred, of which the standard is
consistent with that for credit-impairment:
     1) significant financial difficulty of the debtor;
     2) a breach of binding clause of contract;
     3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
     4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, having granted to
the debtor a concession(s) that the creditor would not otherwise consider.
     2. Measurement of expected credit losses
     The key factors in the measurement of expected credit loss include the probability of default, loss given default, and exposure to
default risk. The Company develops a model of the probability of default, loss given default, and exposure to default risk on the basis
of quantitative analysis of historical data (e.g. counterparty rating, guarantee measures and collateral type, payment method, etc.) and
forward-looking information.
     3. Please refer to section V (I) 2, 3, 6, 8, 11, and 23 of the notes to the financial statements for details on the reconciliation
statement of opening balance and closing balance of provision for losses of financial instrument.
     4. Exposure to credit risk and concentration of credit risk
     The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control such risks, the
Company has taken the following measures:
     (1) Cash and bank balances
     The Company deposits its bank balances and other cash and bank balances in financial institutions with relatively high credit
levels, hence, its credit risk is relatively low.

                                                                    202
     (2) Receivables
     The Company performs credit assessment on customers using credit settlement on a regular basis. The Company selects credible
and well-reputed customers based on credit assessment result, and conducts ongoing monitoring on balance of receivables, to avoid
significant risks in bad debts.
     As the Company’s credit risks fall into several business partners and customers, as of December 31, 2022, 9.38% (December 31,
2021: 6.62%) of the total accounts receivable was due from the five largest customers of the Company. The Company has no
significant central credit risk.
     The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial asset at the balance
sheet.
     (II) Liquidity risk
     Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated with cash or
other financial assets settlement, which is possibly attributable to failure in selling financial assets at fair value on a timely basis, or
failure in collecting liabilities from counterparties of contracts, or early redemption of debts, or failure in achieving estimated cash
flows.
     In order to control such risk, the Company comprehensively utilizes financing tools such as notes settlement, bank borrowings,
etc. and adopts long-term and short-term financing methods to optimize financing structures, and finally maintains a balance between
financing sustainability and flexibility. The Company has obtained credit limit from several commercial banks to meet working
capital requirements and expenditures.


     Financial liabilities classified based on remaining time period till maturity

                                                                           Closing balance
  Items                                             Contract amount not
                            Carrying amount                                     Within 1 year            1-3 years           Over 3 years
                                                      yet discounted
Bank borrowings               2,918,155,689.70         3,064,480,800.96         795,179,666.92        725,728,644.01       1,543,572,490.03
Held-for-trading
financial liabilities
Notes payable                 2,515,229,293.17         2,515,229,293.17       2,515,229,293.17

Accounts payable              2,771,961,271.66         2,771,961,271.66       2,771,961,271.66

Other payables                     657,122,287.53        657,122,287.53         657,122,287.53

Lease liabilities                   31,093,459.06         33,953,751.30            9,005,728.14        16,755,133.25            8,192,889.91

Long-term payables                 316,335,329.82        316,335,329.82              599,514.91                              315,735,814.91

Bonds payable                 1,308,690,556.32         1,573,618,113.60            7,380,948.00        11,809,516.80       1,554,427,648.80

  Subtotal                  10,518,587,887.26        10,932,700,848.04        6,756,478,710.33        754,293,294.06       3,421,928,843.65
     (Continued)

                                                                          December 31, 2021
  Items                                             Contract amount not
                            Carrying amount                                     Within 1 year            1-3 years           Over 3 years
                                                      yet discounted
Bank borrowings               2,510,063,715.18         2,890,446,695.70         903,057,645.84        823,095,870.05       1,164,293,179.81
Held-for-trading
financial liabilities
Notes payable                 2,468,799,189.71         2,468,799,189.71       2,468,799,189.71

Accounts payable              2,960,061,508.33         2,960,061,508.33       2,960,061,508.33

Other payables                     683,714,082.05        683,714,082.05         683,714,082.05

Lease liabilities                   23,838,477.91         26,991,613.43            5,689,725.04         9,207,622.33           12,094,266.06


                                                                    203
                                                                           December 31, 2021
  Items                                             Contract amount not
                            Carrying amount                                      Within 1 year          1-3 years          Over 3 years
                                                      yet discounted
Long-term payables              315,735,814.91           315,735,814.91                                                    315,735,814.91

Bonds payable                1,254,962,176.00          1,573,618,113.60             7,380,948.00      11,809,516.80      1,554,427,648.80

  Subtotal                  10,217,174,964.09         10,919,367,017.73        7,028,703,098.97      844,113,009.18      3,046,550,909.58
     (III) Market risk
     Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of financial instruments
due to changes in market price. Market risk mainly includes interest risk and foreign currency risk.
     1. Interest risk
     Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of financial instruments due
to changes in market interest. The Company’s fair value interest risks arise from fixed-rate financial instruments, while the cash flow
interest risks arise from floating-rate financial instruments. The Company determines the proportion of fixed-rate financial
instruments and floating-rate financial instruments based on the market environment, and maintains a proper financial instruments
portfolio through regular review and monitoring. The Company’s interest risk in cash flows relates mainly to bank borrowings with
floating interest rate.
     As of December 31, 2022, balance of borrowings with interest accrued at floating interest rate totaled 1,755,696,317.89 yuan
(December 31, 2021: 1,287,312,619.35 yuan). If interest rates had been 50 basis points higher/lower and all other variables were held
constant, the Company’s gross profit and equity will not be significantly affected.
     2. Foreign currency risk
     Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial instrument resulted from
changes in exchange rate. The Company is mainly operated in mainland China, whose main activities are denominated in RMB,
hence, the Company bears insignificant market risk arising from foreign exchange changes.
     Please refer to section V (IV) 2 of notes to the financial statements for details on foreign currency financial assets and liabilities
at the end of the period.


IX. Fair value disclosure
     (I) Details of fair value of assets and liabilities at fair value at the balance sheet date

                                                                            Fair value as at the balance sheet date
  Items                                            Level 1 fair value       Level 2 fair value     Level 3 fair value
                                                                                                                                Total
                                                     measurement              measurement            measurement
Recurring fair value measurement

  1. Receivables financing                                                                             107,316,593.41       107,316,593.41

  2. Other equity instrument investments                                                                 15,702,971.01        15,702,971.01
Total assets at recurring fair value
                                                                                                     123,019,564.42        123,019,564.42
measurement
     (II) Qualitative and quantitative information of valuation technique(s) and key input(s) for level 3 fair value at recurring and
non-recurring fair measurement
     1. For receivables financing, the Company uses specific valuation techniques to determine its fair value based on its par value.
     2. For other equity instrument investments, the Company uses specific valuation techniques to determine its fair value.


X. Related party relationships and transactions
     (I) Related party relationships
     1. Parent company


                                                                     204
     (1) Details
                                  Place of           Business          Registered     Holding proportion over Voting right proportion
      Parent company
                                registration           nature            capital          the Company (%)      over the Company (%)
                                 Foshan,             Industrial
Infore Group Co., Ltd.                                                   4.45 billion       43.33 [Note]                43.33
                               Guangdong            investment
     Note: Infore Group Co., Ltd. (the “Infore Group”) directly holds 11.31% equity of the Company, and indirectly holds 32.02%
equity of the Company through its wholly-owned subsidiary Ningbo Infore Asset Management Co., Ltd.
     (2) The Company’s ultimate controlling party is He Jianfeng, who directly holds 2.00% equity of the Company, and indirectly
holds 43.33% equity of the Company through Infore Group.
     2. Please refer to section VII of notes to the financial statements for details on the Company’s subsidiaries.
     3. Joint ventures and associates of the Company
     Please refer to section VII of notes to the financial statements for details on the Company’s significant joint ventures and
associates. Details of other joint ventures or associates carrying out related party transactions with the Company in current period or
in preceding period but with balance in current period are as follows:

  Joint ventures or associates                                                          Relationships with the Company

Tengine Innovation (Beijing) Monitoring Instrument Co., Ltd.                                Associate of the Company

Guangdong Shunkong Environmental Investment Co., Ltd.                                       Associate of the Company

Guangdong Tianshu New Energy Technology Co., Ltd.                                           Associate of the Company

Shenzhen Yingmei City Housekeeper Co., Ltd.                                                 Associate of the Company
China Urban Institute (Beijing) Environmental Technology Co.,
                                                                                            Associate of the Company
Ltd.
Lianjiang Company                                                                                   [Note 1]
Shantou Zoomlion Ruikang Environmental Sanitation Service       Associate of the Company’s subsidiary Zoomlion Environmental
Co., Ltd.                                                                                  Company
Shantou Chaoyang District Zoomlion Ruikang Environmental        Associate of the Company’s subsidiary Zoomlion Environmental
Sanitation Service Co., Ltd.                                                               Company
                                                                Associate of the Company’s subsidiary Zoomlion Environmental
Changsha Cowa Zoomlion Intelligent Technology Co., Ltd.
                                                                                           Company
Chongqing Sanfeng Urban Environmental Service Co., Ltd.         Associate of the Company’s subsidiary Zoomlion Environmental
[Note 2]                                                                                   Company
Yichun Development Investment Lianfeng Environmental            Associate of the Company’s subsidiary Zoomlion Environmental
Industry Co., Ltd. [Note 3]                                                                Company
                                                                 Associate of Guangdong Infore Environmental Investment Co.,
Guangdong Liangke Environmental Engineering Co., Ltd.
                                                                                              Ltd.
                                                                 Associate of Guangdong Infore Environmental Investment Co.,
Foshan Yingtong Electrical Materials Co., Ltd.
                                                                                              Ltd.
Guangxi Zoomlion Guilv Urban Environmental Service Co.,         Associate of the Company’s subsidiary Zoomlion Environmental
Ltd.                                                                                       Company
                                                                 Associate of Guangdong Infore Environmental Investment Co.,
Beijing Xingyun Zhixing Technology Co., Ltd.
                                                                                              Ltd.
     Note 1: In March 2022, the Company acquired 50% of the equity of Lianjiang Company, and it was changed from an associate
to a subsidiary after then. Transactions with it from January 1, 2021 to February 28, 2022 are disclosed as related party transactions.
     Note 2: Zoomlion Environmental Company disposed all the equity of Chongqing Sanfeng Urban Environmental Service Co.,
Ltd. in July 2020, and it was still disclosed as a related party one year after its disposal. Transactions with it from January to July
2021 were disclosed.
     Note 3: Zoomlion Environmental Company disposed all the equity of Yichun Development Investment Lianfeng Environmental
Industry Co., Ltd. in October 2020, and it was still disclosed as a related party one year after its disposal. Transactions with it from
January to October 2021 were disclosed.
     4. Other related parties of the Company

  Related parties                                                                        Relationships with the Company



                                                                   205
  Related parties                                                                  Relationships with the Company
                                                                     Shareholder holding more than 5% of the Company’s shares,
Ningbo Infore Asset Management Co., Ltd.
                                                                        which is also under the control of the actual controller
Zoomlion Heavy Industry Co., Ltd.                                    Shareholder holding more than 5% of the Company’s shares

Guangdong Infore Material Technology Co., Ltd.                                    Controlled by the actual controller

Foshan Shunde District Yinghai Investment Co., Ltd.                               Controlled by the actual controller

Shenzhen Infore Smart Technology Co., Ltd.                                        Controlled by the actual controller

Midea Group Co., Ltd.                                                   Controlled by immediate family of the actual controller

Guangdong Midea Electric Co., Ltd.                                      Controlled by immediate family of the actual controller
Guangdong Midea Environmental Electrical Manufacturing Co.,
                                                                        Controlled by immediate family of the actual controller
Ltd.
Guangdong Midea Refrigeration Equipment Co., Ltd.                       Controlled by immediate family of the actual controller

Guangdong Midea Building Technologies Co., Ltd.                         Controlled by immediate family of the actual controller

Guangdong Midea HVAC Equipment Co., Ltd.                                Controlled by immediate family of the actual controller

Wuhu Welling Motor Sales Co., Ltd.                                      Controlled by immediate family of the actual controller
Foshan Shunde District Midea Electric Heating Appliance
                                                                        Controlled by immediate family of the actual controller
Manufacturing Co., Ltd.
Anhui Meizhi Precision Manufacturing Co., Ltd.                          Controlled by immediate family of the actual controller

Anhui Meizhi Refrigeration Equipment Co., Ltd.                          Controlled by immediate family of the actual controller

Foshan Welling Washing Motor Manufacturing Co., Ltd.                    Controlled by immediate family of the actual controller

Guangdong Midea Kitchen Appliance Manufacturing Co., Ltd.               Controlled by immediate family of the actual controller

Guangdong Meizhi Precision Manufacturing Co., Ltd.                      Controlled by immediate family of the actual controller

Guangdong Meizhi Refrigeration Equipment Co., Ltd.                      Controlled by immediate family of the actual controller

Guangdong Welling Motor Manufacturing Co., Ltd.                         Controlled by immediate family of the actual controller

Ande Zhilian Technology Co., Ltd.                                       Controlled by immediate family of the actual controller

Foshan Shunde District Midea Hotel Management Co., Ltd.                 Controlled by immediate family of the actual controller

Chongqing Midea General Refrigeration Equipment Co., Ltd.               Controlled by immediate family of the actual controller

Wuxi Feiling Electronics Co., Ltd.                                      Controlled by immediate family of the actual controller
Guangdong Midea Kitchen and Bathroom Appliance
                                                                        Controlled by immediate family of the actual controller
Manufacturing Co., Ltd.
Guangdong Bomei Property Service Co., Ltd.                              Controlled by immediate family of the actual controller

Ningbo Midea Property Management Co., Ltd.                              Controlled by immediate family of the actual controller
                                                                      Controlled by the Company’s associate Foshan Yingtong
Guangdong Weiqi Electrical Materials Co., Ltd. [Note]
                                                                                    Electrical Materials Co., Ltd.
                                                                      Controlled by the Company’s associate Foshan Yingtong
Liaoning Donggang Magnet Wire Co., Ltd. [Note]
                                                                                    Electrical Materials Co., Ltd.
                                                                      Controlled by the Company’s associate Foshan Yingtong
Anhui Weiqi Electrical Materials Co., Ltd. [Note]
                                                                                    Electrical Materials Co., Ltd.
                                                                  Associate of the Company’s shareholder Zoomlion Heavy Industry
Zoomlion Hengtong Machinery Co., Ltd.
                                                                                               Co., Ltd.
                                                                   Investee of the Company’s subsidiary Zoomlion Environmental
Qianxi Jinjiang Sanitation Service Co., Ltd.
                                                                                              Company
Green Oriental Investment Holdings Co., Ltd.                                Non-controlling shareholder of the subsidiary

Jin Taotao                                                                                 Board Secretary
     Note: The Company disposed 51% of the equity of the former subsidiary Foshan Yingtong Electrical Materials Co., Ltd. (parent

                                                              206
company of Anhui Weiqi Electrical Materials Co., Ltd., Guangdong Weiqi Electrical Materials Co., Ltd., and Liaoning Donggang
Magnet Wire Co., Ltd.) in February 2021, and it was changed from a subsidiary to an associate after then. Transactions with it from
March 1, 2021 to December 31, 2022 are disclosed as related party transactions.


    (II) Related party transactions
    1. Purchase and sale of goods, rendering and receiving of services
    (1) Purchase of goods and receiving of services
                                                                                                                Preceding period
  Related parties                                     Content of transaction   Current period cumulative
                                                                                                                  comparative
Tengine Innovation (Beijing) Monitoring
                                                            Materials                      9,239,400.36                 4,255,866.47
Instrument Co., Ltd.
Guangdong Shunkong Environmental Investment
                                                         Labor services                    9,909,911.14                10,008,420.70
Co., Ltd.
Changsha Cowa Zoomlion Intelligent
                                                            Materials                     10,847,784.36                17,487,345.13
Technology Co., Ltd.
Guangdong Tianshu New Energy Technology
                                                            Materials                      7,638,710.54                 4,008,257.44
Co., Ltd.
Guangdong Liangke Environmental Engineering
                                                         Labor services                    1,415,094.34                   825,471.70
Co., Ltd.
Zoomlion Heavy Industry Co., Ltd.                           Materials                    105,493,871.91              165,728,113.90

Ande Zhilian Technology Co., Ltd.                        Labor services                                                    74,500.00
Foshan Shunde District Midea Hotel
                                                         Labor services                      180,887.93                   875,868.89
Management Co., Ltd.
Ningbo Midea Property Management Co., Ltd.               Labor services                      516,713.84                   101,650.94

  Subtotal                                                                               145,242,374.42              203,365,495.17



    (2) Sale of goods and rendering of services
                                                                                                                Preceding period
  Related parties                                     Content of transaction   Current period cumulative
                                                                                                                  comparative
                                                        Goods and labor
Lianjiang Company                                                                                                       2,071,112.39
                                                           services
Guangdong Tianshu New Energy Technology
                                                      Goods and factoring                 90,942,152.84                36,664,775.29
Co., Ltd.
Shantou Zoomlion Ruikang Environmental
                                                             Goods                             65,565.12                   70,430.81
Sanitation Service Co., Ltd.
Shantou Chaoyang District Zoomlion Ruikang
                                                             Goods                           589,792.61                 3,516,958.41
Environmental Sanitation Service Co., Ltd.
Chongqing Sanfeng Urban Environmental
                                                             Goods                                                      3,499,292.04
Service Co., Ltd.
Changsha Cowa Zoomlion Intelligent Technology
                                                             Goods                                                         49,417.06
Co., Ltd.
Guangdong Liangke Environmental Engineering
                                                      Goods and factoring                    781,333.30                -9,569,059.05
Co., Ltd.
Zoomlion Heavy Industry Co., Ltd.                            Goods                         1,995,580.83                 4,446,362.79

Guangdong Midea HVAC Equipment Co., Ltd.                     Goods                           543,008.85
                                                        Goods and labor
Guangdong Bomei Property Service Co., Ltd.                                                  3,118,410.25
                                                           services
Guangxi Zoomlion Guilv Urban Environmental              Goods and labor
                                                                                           6,862,177.99
Service Co., Ltd.                                          services
Guangdong Infore Material Technology Co., Ltd.               Goods                                                        222,817.99
Guangdong Midea Environmental Electrical                Goods and labor
                                                                                                                       18,308,649.75
Manufacturing Co., Ltd.                                    services
Foshan Shunde District Midea Electric Heating           Goods and labor
                                                                                                                        4,253,728.91
Appliance Manufacturing Co., Ltd.                          services


                                                                207
                                                                                                                        Preceding period
  Related parties                                        Content of transaction       Current period cumulative
                                                                                                                          comparative
Anhui Meizhi Precision Manufacturing Co., Ltd.                      Goods                                                         74,788,944.90

Anhui Meizhi Refrigeration Equipment Co., Ltd.                      Goods                                                          8,273,640.64
Foshan Welling Washing Motor Manufacturing
                                                                    Goods                                                          4,739,447.22
Co., Ltd.
Guangdong Midea Kitchen Appliance
                                                                    Goods                                                          8,689,087.00
Manufacturing Co., Ltd.
Guangdong Meizhi Precision Manufacturing Co.,
                                                                    Goods                                                         67,835,355.54
Ltd.
Guangdong Meizhi Refrigeration Equipment Co.,               Goods and labor
                                                                                                                                  64,391,718.91
Ltd.                                                           services
Guangdong Welling Motor Manufacturing Co.,
                                                                    Goods                                                           143,985.09
Ltd.
Wuxi Feiling Electronics Co., Ltd.                                  Goods                                                           434,430.62

Qianxi Jinjiang Sanitation Service Co., Ltd.                        Goods                                                             19,276.10
Yichun Development Investment Lianfeng
                                                                    Goods                                                         48,038,229.26
Environmental Industry Co., Ltd.
Anhui Weiqi Electrical Materials Co., Ltd.                Goods and factoring                      416,492.94                       877,546.38

Guangdong Weiqi Electrical Materials Co., Ltd.                     Factoring                      1,873,184.56                     1,824,062.44

Liaoning Donggang Magnet Wire Co., Ltd.                            Factoring                       124,354.60                      1,947,698.76

Foshan Yingtong Electrical Materials Co., Ltd.                     Factoring                       233,830.19

  Subtotal                                                                                     107,545,884.08                    345,537,909.25


     2. Related party leases
     (1) The Company as the lessor
                                                                         Lease income for the current     Lease income for the preceding
  Lessees                                 Types of assets leased
                                                                                   period                            period
Guangdong Tianshu New             Plant and comprehensive
                                                                                           988,266.74
Energy Technology Co., Ltd.               building
    (2) The Company as the lessee

                                                                                  Current period cumulative

                                                                                              Lease of right-of-use assets recognized
                                                   Expenses for short-term leases
                               Types of assets     and leases of low-value assets       Lease expenses paid
  Lessors                                          with simplified approach and          (excluding variable        Increased
                                   leased                                                                                              Interest
                                                    variable lease payments not          lease payments not         principal
                                                                                                                                      expenses
                                                  included in the measurement of           included in the           of lease
                                                                                                                                     recognized
                                                          lease liabilities             measurement of lease        liabilities
                                                                                              liabilities)
Foshan Shunde District
                           Office building,
Yinghai Investment                                                                               1,256,323.04                         63,604.54
                            parking space
Co., Ltd.
Shenzhen Infore Smart
                               Office building                           840,509.43
Technology Co., Ltd.
     (Continued)

                                                                               Preceding period comparative

                                                                                              Lease of right-of-use assets recognized
                                                   Expenses for short-term leases
                               Types of assets     and leases of low-value assets       Lease expenses paid
  Lessors                                          with simplified approach and         (excluding variable        Increased
                                   leased                                                                                             Interest
                                                    variable lease payments not         lease payments not        principal of
                                                                                                                                     expenses
                                                  included in the measurement of           included in the            lease
                                                                                                                                    recognized
                                                          lease liabilities               measurement of           liabilities
                                                                                          lease liabilities)

                                                                      208
                                                                           Preceding period comparative

                                                                                         Lease of right-of-use assets recognized
                                                Expenses for short-term leases
                            Types of assets     and leases of low-value assets     Lease expenses paid
  Lessors                                       with simplified approach and       (excluding variable       Increased
                                leased                                                                                        Interest
                                                 variable lease payments not       lease payments not       principal of
                                                                                                                             expenses
                                               included in the measurement of         included in the           lease
                                                                                                                            recognized
                                                       lease liabilities             measurement of          liabilities
                                                                                     lease liabilities)
Foshan Shunde District
                           Office building,
Yinghai Investment Co.,                                                                   1,211,475.03     3,095,959.57      17,392.41
                            parking space
Ltd.
Shenzhen Infore Smart
                            Office building                         460,904.20
Technology Co., Ltd.
     3. Related party guarantees
     The Company and its subsidiaries as guaranteed parties
                                                                                                           Whether the
                                                                Commencement
  Guaranteed parties                   Amount guaranteed                               Maturity date       guarantee is      Remarks
                                                                    date
                                                                                                             mature
Anhui Weiqi Electrical Materials
                                           40,000,000.00        6/28/2022           6/28/2023         No             None
Co., Ltd.
Anhui Weiqi Electrical Materials
                                           20,000,000.00        6/21/2022           6/21/2023         No             None
Co., Ltd.
Anhui Weiqi Electrical Materials
                                           30,000,000.00        5/10/2022           5/10/2023         No             None
Co., Ltd.
Anhui Weiqi Electrical Materials
                                           20,000,000.00        2/17/2022           2/17/2023         No             None
Co., Ltd.
Liaoning Donggang Magnet Wire
                                            5,000,000.00        7/22/2022           7/21/2023         No
Co., Ltd.
                                                                                                                       [Note]
Liaoning Donggang Magnet Wire
                                           10,000,000.00        8/22/2022           8/21/2023         No
Co., Ltd.
     Note: These guaranteed loans were also provided with mortgaged guarantee by Liaoning Donggang Magnet Wire Co., Ltd. with
its buildings and structures with cost of 30,603,925.53 yuan and net value of 8,306,077.76 yuan, and its land use right with cost of
9,747,692.64 yuan and net value of 6,536,721.11 yuan.


     4. Key management’s emoluments

  Items                                                         Current period cumulative                 Preceding period comparative

Key management’s emoluments                                                 6,500,407.42                                  9,318,141.11


     5. Special agreement on continued implementation of sales contract signed in the name of Zoomlion Heavy Industry Co., Ltd.
     Since June 1, 2017, the sanitation business of Zoomlion Heavy Industry Co., Ltd. was merged into Zoomlion Environmental
Company. In order to continue the implementation of the sales contract originally signed in the name of Zoomlion Heavy Industry
Co., Ltd., Zoomlion Environmental Company invoiced Zoomlion Heavy Industry Co., Ltd., which will then issue the invoice of the
same amount to end customers. The tax-excluded amount of income from such transactions in 2022 is -3,077,570.96 yuan. Zoomlion
Environmental Company related such transactions directly to end customers.


     6. Temporary call loans between related parties
     In 2022, Infore Group lent temporary funds to the Company and its subsidiaries, totaling 1.00 billion yuan, which were usually
returned within one working day. Therefore, the two parties have not settled the interest on the funds occupied.


     (III) Balance due to or from related parties
     1. Balance due from related parties




                                                                 209
                                                                Closing balance                    Opening balance
  Items                      Related parties                             Provision for bad                    Provision for bad
                                                        Book balance                         Book balance
                                                                               debts                                debts
                   Guangdong Shunkong
                                                          4,158,567.88       890,025.90        4,202,907.51       420,290.75
                   Environmental Investment Co., Ltd.
                   Guangdong Tianshu New Energy
                                                        200,788,348.94      8,569,313.68      46,417,357.14      1,431,117.86
                   Technology Co., Ltd.
                   Lianjiang Company                                                            378,000.00          18,900.00
                   Shantou Zoomlion Ruikang
                   Environmental Sanitation Service          10,711.00            535.55           7,095.00            354.75
                   Co., Ltd.
                   Guangdong Liangke Environmental
                                                         30,000,000.00       450,000.00
                   Engineering Co., Ltd.
                   Zoomlion Heavy Industry Co., Ltd.       665,051.93        126,337.58         365,661.93          36,566.19

                   Guangdong Midea Electric Co., Ltd.        54,018.62         54,018.62          54,018.62         54,018.62
                   Guangdong Midea Refrigeration
                                                             42,819.11         42,819.11          42,819.11         42,819.11
                   Equipment Co., Ltd.
                   Guangdong Midea Building
                                                             33,413.42         33,413.42          33,413.42         33,413.42
                   Technologies Co., Ltd.
Accounts           Guangdong Midea HVAC
                                                           233,371.88          51,798.38          42,241.88         42,241.88
receivable         Equipment Co., Ltd.
                   Zoomlion Hengtong Machinery Co.,
                                                                                                850,000.00          85,000.00
                   Ltd.
                   Guangdong Weiqi Electrical
                                                        112,174,999.99      1,682,625.00