新和成：2023年第三季度报告(英文版)

Zhejiang NHU Company Ltd.

Q3 2023 Report

The Company and whole members of the BOD guarantee that the information disclosed is authentic,accurate, complete and free from any false records, misleading statements or significant omissions.

Important Content Reminder:

1. The Board of Directors, Board of Supervisors, directors, supervisors and senior executives ofZhejiang NHU Company Ltd. (hereinafter referred to as the “Company”) hereby guarantee that theinformation presented in this report is authentic, accurate, complete and free of any false records,misleading statements or material omissions, and they will bear joint and several liabilities for suchinformation.

2. The Company’s legal representative, the person in charge of finance and accounting work, and theperson in charge of accounting institution (Accounting Officer) hereby declare and warrant that thefinancial statements in this report are authentic, accurate and complete.

3. Whether the Third Quarterly Report has been audited or not

□ Yes √ No

Note:

This Report has been prepared in both Chinese and English version, and the English version is forreference only. Should there be any discrepancies or misunderstandings between the two versions,the Chinese versions shall prevail. The complete published Chinese Third Quarterly Report may beobtained at www.cninfo.com.cn.

Section Ⅰ Key Accounting DataⅠ Key Accounting Data and Financial IndicatorsWhether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or not

√ Yes □ No

Retroactive adjustment or restatement of reasonsAccounting policy changes

[Note] On November 30, 2022, the Ministry of Finance ("MOF") issued and implemented ASBE Interpretation No. 16, "Accountingfor Deferred Taxes on Assets and Liabilities Arising from Individual Transactions that are not Subject to the Initial RecognitionExemption," which became effective on January 1, 2023. If taxable temporary differences and deductible temporary differences arisefrom lease liabilities and right-of-use assets recognized as a result of a single transaction to which this provision applies, as well asprojected liabilities related to abandonment obligations and related assets recognized at the beginning of the earliest period in whichthe financial statements of the first-time implementation of this provision are presented, the Company will recognize taxable temporarydifferences and deductible temporary differences in accordance with the provisions of this provision and Accounting Standard No. 18- "Income Taxes". -Income Taxes, the Company adjusts the cumulative effect to opening retained earnings and other related financialstatement items in the earliest period for which the financial statements are presented.

II Non-recurring gains and losses for this period

√ Applicable □ Not applicable

Unit: RMB

Remarks on other profit or loss satisfying the definition of non-recurring profit or loss:

□ Applicable √ Not Applicable

The Company has no other profit or loss satisfying the definition of non-recurring profit or loss.Remarks on defining non-recurring profit or loss listed in the “Interpretation Pronouncement on Information Disclosure Criteria forPublic Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or loss.

□ Applicable √ Not Applicable

The Company has no situation of defining non-recurring profit or loss listed in the “Interpretation Pronouncement on InformationDisclosure Criteria for Public Companies No. 1 – Non-Recurring Profit or Loss” as recurring profit or lossIII Major Changes of Main Items in Financial Statements and Financial Indicators within the ReportingPeriod, as well as the Reasons for the Changes

√ Applicable □Not applicable

1.Balance Sheet Position

(1) The closing balance of held-for-trading financial assets decreased by74.94% compared to the opening balance in this year. It wasmainly due to the maturity of wealth management products by idle raised funds during the reporting period of structured deposits offinancial products.

(2) The closing balance of Notes receivable decreased by 46.93% compared to the opening balance in this year. It was mainly due tothe increase in bankers' acceptance endorsements and due collections during the reporting period.

(3) The closing balance of Other receivables decreased by 55.32% compared to the opening balance in this year. It was mainly dueto the recovery of land deposits during the reporting period.

(4) The closing balance of other current assets decreased by79.39% compared to the opening balance in this year. It was mainly due to

the decrease in value-added tax credits during the reporting period.

(5) The closing balance of Long-term equity investments increased by 59.75% compared to the opening balance in this year. It wasmainly due to the investment in the joint venture during the reporting period.

(6) The closing balance of Right-of-use assets increased by 148.62% compared to the opening balance in this year. It was mainly dueto the addition of new housing leases during the reporting period.

(7) The closing balance of Intangible assets increased by 36.16% compared to the opening balance in this year. It was mainly due tothe acquisition of land during the reporting period.

(8) The closing balance of Notes payable decreased by 44.82% compared to the opening balance in this year. It was mainly due to thesettlement of bank acceptances at maturity during the reporting period.

(9) The closing balance of Accounts payable decreased by 32.43% compared to the opening balance in this year. It was mainly due tothe expiration of payments for projects under construction during the reporting period.

(10) The closing balance of Lease liabilities increased by 153.58% compared to the opening balance in this year. It was mainly due tothe addition of new housing leases during the reporting period.

(11) The closing balance of Other comprehensive income increased by 31.26% compared to the opening balance in this year. It wasmainly due to the exchange differences in foreign currency financial statements during the reporting period.

(12) The closing balance of Special reserve increased by 138.34% compared to the opening balance in this year. It was mainly due tothe increase in the provision for production safety expenses during the reporting period.

2. Income Statement Position

(1) Taxes and surcharges in the current Q1-Q3 period increased by 30.10% compared to the same period of last year. It was mainly dueto the increase in urban maintenance and construction tax and land use tax in the current Q1-Q3 period.

(2) Financial expenses in the current Q1-Q3 period increased by 89.15% compared to the same period of last year. It was mainly dueto decrease in foreign exchange earnings in the current Q1-Q3 period.

(3) Investment income in the current Q1-Q3 period decreased by40.57% compared to the same period of last year. It was mainly dueto the decrease in investment income from associates and financial management in the current Q1-Q3 period.

(4) Gains on changes in fair value in the current Q1-Q3 period decreased by 79.79% compared to the same period of last year. It wasmainly due to decrease in the fair value provision based on exchange rate fluctuations in the current Q1-Q3 period.

(5) Credit impairment loss in the current Q1-Q3 period decreased by 50.78% compared to the same period of last year. It was mainlydue to a decrease in credit impairment losses based on changes in accounts receivable in the current Q1-Q3 period.

(6) Assets impairment loss in the current Q1-Q3 period increased by 729.26% compared to the same period of last year. It was mainlydue to an increase in impairment losses on assets based on fluctuations in product market prices in the current Q1-Q3 period.

(7) Gains on asset disposal in the current Q1-Q3 period increased by 1,174.42% compared to the same period of last year. It was mainlydue to the increase in revenue from the recovery of land by the government in the current Q1-Q3 period.

3. Cash Flow Statement Position

(1) Net cash flows from investing activities in the current Q1-Q3 period decreased by 74.84% compared to the same period of last year.It was mainly due to the decrease in fund-raising for financial management and the increase in expenditure on purchasing andconstructing fixed assets in the current Q1-Q3 period.

(2) Net cash flows from financing activities in the current Q1-Q3 period decreased by 185.32% compared to the same period of lastyear. It was mainly due to the repayment of loans in the current Q1-Q3 period.

Section Ⅰ Shareholders Information

Ⅰ Total Number of Common Shareholders and Number of Preferred Shareholders with Voting RightsRecovered and Information about Top 10 Shareholders

Unit: share

Notes: Zhejiang NHU Co., Ltd. Repurchase Securities Account is among top 10 shareholders at the end of the reporting period, but donot participate in the listing of the top 10 shareholders of the company.II Total Number of Preferred Shareholders and Information about Top 10 Preferred Shareholders

□ Applicable √Not applicable

Section III Other Significant Events

√Applicable □Not applicable

I Progress of the Forth Employee Stock Ownership PlanThe forth employee stock ownership plan of the Company was deliberated and adopted by the first extraordinary shareholders’ meetingof 2023 held on June 26, 2023, the current employee stock ownership plan is managed by the Company itself, and the Company’sshares are acquired and held by stock purchase through secondary market, the duration shall not exceed 24 months. The Forth EmployeeStock Ownership Plan completed the stock purchase on September 25, 2023. The company purchased a total of 29,528,181 shares ofthe company's stock through secondary market bidding trading, accounting for 0.9553% of the company's total share capital. The totaltransaction amount is RMB 479,442,157.08 Yuan, the average price is approximately 16.2368 yuan per share. The lock-in period for

the underlying stocks obtained under the Forth Employee Stock Ownership Plan is 12 months, calculating from the date of thecompany's announcement of the last transfer of the underlying stocks to the account of the Forth Employee Stock Ownership Plan,which is from September 26, 2023 to September 25, 2024.For more details, please refer to Announcement on the Progress of the Implementation of the Fourth Employee Stock Ownership Planand the Completion of Stock Purchase (2023-060) published on the company's designated information disclosure media and cninfo(http://www.cninfo.com.cn).II Progress of Investment Project with Raised FundsWith the approval of [2017] No. 1684 document of China Securities Regulatory Commission, the company's lead underwriter, CSCSecurities Co., Ltd., privately issued 175 million common shares (A shares) to specific objects at an issue price of RMB 28.00/share,raising a total of RMB 4,900 million. After deducting the underwriting and recommendation fees of RMB 30 million yuan (includingtax), the raised funds amounted to RMB 4,870 million, which was remitted to the raised funds supervision account of the company bythe lead underwriter, CSC Securities Co., Ltd. on December 7, 2017. In addition, after deducting lawyer fees, audit fees, capitalverification fees and other issuance expenses of RMB 4.62 million (excluding tax), and considering the deductible VAT input tax ofRMB 1.70 million of underwriting fees and recommendation fees deducted by the lead underwriter, the net amount of funds raised wasRMB 4,867.08 million. The availability of the above raised funds has been verified by Tianjian Certified Public Accountants (specialgeneral partnership), who issued the capital verification report ([2017] No. 503).From January 1 to September 30, 2023, the actual use of the raised funds was RMB 1,236.83mn, and the accumulated investment ofthe raised funds project was RMB 5,015.03mn. By September 30, 2023, the balance of raised funds was RMB 597.70mn (includingbank financial products and structured deposits, the net amount of interest on cash in bank less handling charges and bank financialproducts income).III The BOD and Board of Supervisory Completed Election and Appointed Senior Management Personnel, Securities AffairsRepresentative, and Internal Audit LeaderThe company held second extraordinary general meeting of 2023 on September 19, 2023, and elected non-independent directors HuBaifan, Hu Baishan, Shi Guanqun, Wang Xuewen, Wang Zhengjiang, Zhou Guiyang, Yu Hongwei, and independent directors JiJianyang, Shen Yuping, Wan Feng, WangYang, forming the Ninth Board of Directors of the Company. The meeting also elected non-employee representative supervisors Lv Guofeng, Zhao Jia, Wang Xiaobi, along with employee representative supervisors YanHongyue, Li Huafeng, elected by the company's employee congress, forming the Ninth Board of Supervisors of the Company.On the same day, the company held the first meeting of the Ninth Board of Directors, elected Hu Baifan as Chairman of the board, HuBaishan as Vice Chairman of the board, and elected members of the specialized committees of the Ninth Board of Directors. The NinthBoard of Directors appointed Hu Baishan as the company's CEO, Shi Guanqun as the secretary of the BOD, Zeng Shuying as thesecurities affairs representative, Shi Guanqun, Wang Xuewen, Zhang Liying as the company's vice president, Shi Guanqun as thecompany's CFO, and Chen Boxiang as the company's internal audit leader. On the same day, the company held the first meeting of theNinth Board of Supervisors, elected Lv Guofeng as Chairman of the Board of Supervisors.For more details, please refer to Announcement on the Completion of BOD and Board of Supervisory Election and Appointment ofSenior Management Personnel, Securities Affairs Representatives, and Internal Audit Leaders (2023-059) published on the company'sdesignated information disclosure media and cninfo (http://www.cninfo.com.cn).

Section Ⅳ Quarterly Financial Statements

Ⅰ Financial statements

1. Consolidated balance sheet

Prepared by Zhejiang NHU Co., Ltd.

September 30, 2023

Unit: RMB Yuan

Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Zhang Lijin

2. Consolidated income statement for Q1-Q3

Unit: RMB Yuan

Net profit realized by the combined party in business combination under common control before the business combination in the currentperiod was 0.00 yuan, and net profit realized by the combined party in the previous period was 0.00 yuan.Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Zhang lijin

3.Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB Yuan

Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Zhang lijinII Independent Auditor’s ReportWhether the financial statements above have been audited by an independent auditor.

□Yes √ No

These financial statements have not been audited by such an auditor.

Board of Directors of Zhejiang NHU Company Ltd

October 27,2023