Shenzhen Topband Co., Ltd.
Annual Report 2023
[Date of disclosure]
Topband Investor Relations Applet
March 2024

Annual Report 2023
Section I Important Notes, Contents and Interpretations
The Board of Directors, the Board of Supervisors and directors, supervisors and senior
executives of the Company hereby guarantee that the content set out in the Annual Report is free
from false records, misleading statements or major omissions, and undertake joint and several
liabilities for the authenticity, accuracy and integrity of the report.
Wu Yongqiang, the principal of the Company, Luo Muchen, the accounting head, and Luo
Muchen, the accounting department head (the accountant in charge) hereby guarantee the truth,
accuracy and completeness of the financial statements in thisAnnual Report.
All directors have attended the Board Meeting at which thisAnnual Report was deliberated.
Forward-looking statements such as future plans and development strategies covered in the
Report involve uncertainty, so they do not represent the Company's profit forecasts, nor are they
regarded as the substantive commitment to investors.
Topband has no material risks that affect its financial position and sustained profitability, and
the possible risks in the operation of the Company are described in detail in Section III
"Management Discussion and Analysis" of the Report. Investors are kindly reminded to pay
attention to relevant content.
The profit distribution plan approved by the Board of Directors of the Company: cash
dividends of RMB 0.6 (tax inclusive) per 10 shares are paid to all shareholders based on the
1,229,476,988 shares (excluding the repurchased shares and restricted shares to be canceled), 0
shares of bonus shares (tax inclusive), and reserves would not be converted into share capital. If
the Company's total share capital changes before the implementation of the profit distribution plan
due to share repurchase, cancellation of restricted shares or other reasons, the total distribution
amount will be adjusted accordingly based on the principle of maintaining the same distribution
ratio per share.
The Report is prepared in Chinese and translated into English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.

Chairman's Statement
Dear shareholders, partners, and all friends concerning about Topband,
Thank you for your continuous attention and firm support to Topband. In 2023, we were
faced with multiple challenges such as demand and industry inventory, but we remained confident
in the future development prospects of the industry, increased R&D investment in key new areas
and accelerated our implementation of overseas businesses, laying a solid foundation for growth
in the future while realizing sound and healthy operations.
In 2023, we realized operating income of RMB 8.992 billion, up 1.32% YoY, and net profit
of RMB 512 million, up 5.76% YoY. Our product competitiveness and internal efficiency were
improved, with a 2.17% YoY increase in gross profit margin. In addition, we made three key
advances:
I. Reduced costs and increased efficiency, with the operational efficiency and
significantly improved. We clearly set out our strategy to reduce costs and increase efficiency in
2023. All departments worked together and effectively controlled the costs of raw materials and
various expenses, significantly reducing the total costs. Meanwhile, the inventory dropped
significantly and the inventory turnover was improved, significantly improving our health
indicators and operational efficiency.
II. Technological innovation for high-value growth. In 2023, with our existing technology
and product platforms, we strengthened our machine and system solution capabilities and
increased the value volume of our products. We also accurately identified market demands and
enhanced the value chain by self-defined products. In 2023, we increased R&D investment and
business integration in the new energy business segment, and launched many new products that
are autonomous and controllable, represented by DC charging piles and all-in-one industrial and
commercial storage products. This will drive our future growth and become our third growth
curve.
III. International layout with highlighted overseas strengths. After years of international
strategy implementation and promotion, the Vietnam and India bases have achieved large-scale
mass production and stable operation, with excellent profitability. The Romanian and Mexican
bases have realized mass production, marking our significant breakthroughs in overseas markets.
We always believe that the "intelligent, low-carbon and international" long-term trend
remains unchanged. The Company is about to see major development opportunities in the context
of the emergence of smart products, the transformation from the old economy to the new one and