Interim Report2024

Corporate Information

2 Interim Report 2024

China Electronics Optics Valley Union Holding Company Limited

COMPANY WEBSITE

http://www.ceovu.com/

Financial Summary

The summary of the unaudited interim results and assets and liabilities of the Group for the six months ended 30 June

2024 are as follows:

4 Interim Report 2024

China Electronics Optics Valley Union Holding Company Limited

Management Discussion and Analysis

REVIEW OF FINANCIAL INFORMATION

The independent auditor of the Company, PricewaterhouseCoopers, has reviewed the unaudited interim financial information for the six months ended 30 June 2024 in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity".

HIGHLIGHTS OF THE FIRST HALF OF 2024

In 2024, the Company's operations had been closely aligned with practicality. Based on its deep understanding on the new requirements of the national reform and development, the Company closely monitored the trends in China's reconstruction of the electronics industry and seized new opportunities for reform and development, fully responding to CEC's vision of building strategic scientific and technological strength for the national network and information industry. By enhancing efforts in commercial model transformation, the Company steadily advanced in its comprehensive business development within the parks and strengthened systematic service capabilities. Additionally, the Company further push forward industrial organization and construction in the parks through equity investments and has been persistent in providing comprehensive solutions for the upgrading of regional economic transformation and sustainable development.

During the Reporting Period, the Group entered into new contracts with aggregated contracted value of approximately RMB1,430.2 million, representing a decrease of RMB384.8 million as compared to the same period of last year (excluding projects in Jurong and Foshan Nanhai), among which contracted value of development of industrial parks decreased by RMB487.9 million as compared to the same period of last year, due to a RMB588.5 million decrease in contracted value of office based industrial parks as compared to the same period of last year and a RMB100.6 million increase in contracted value of manufacturing based industrial parks as compared to the same period of last year, with a 23% growth rate. The contracted value of the integrated operation business increased by RMB103.0 million as compared to the same period of last year (excluding projects in Jurong and Foshan Nanhai), with a 19% growth rate. The Group recorded a decrease of RMB637.2 million of sales collection to RMB1,729.5 million as compared to the same period of last year.

During the Reporting Period, the Group achieved a revenue of RMB1,459.2 million, representing a decrease of RMB744.2 million as compared to the same period of the previous year, mainly due to the impact of changes in the macroeconomic environment, policy orientation and market demand, resulting a year-on-year decrease in the park development business revenue; and the profit of the Company for the period was RMB3.2 million, representing a decrease of RMB36.1 million as compared to the same period of the previous year.

The income from industrial park operation services of RMB1,107.0 million accounted for 75.9% of the total revenue of the Group, which well reflected the Company's strategic development landscape based on the integrated operation business of the industrial parks.

As at 30 June 2024, the Group has approximately 4,686,000 sq.m. of high-quality land bank for industrial parks in various cities. The high-quality lands for industrial parks are mainly located in cities such as Chengdu, Changsha, Tianjin, Qingdao, Shanghai and Xianyang.

6 Interim Report 2024

China Electronics Optics Valley Union Holding Company Limited

Management Discussion and Analysis (Continued)

BUSINESS REVIEW

As of 30 June 2024, the Group has established the business layout of "One Body Two Wings (一體兩翼)" which is based on the operational services in the industrial parks, supported by the development of the industrial parks and driven by the investment in the industry. The Group has the following three segments: (i) industrial park operation services (including design and construction services, property management services, property leasing services, energy services, digital park services, incubator and office sharing services, group catering and hotel services, digital apartment services); (ii) industrial park development services (including sales of industrial park space and leasing services of properties in self-owned parks); and (iii) industrial investment (equity investment business relevant to industrial theme parks business). In recent years, the income structure and composition of profit reflected the result of the Group's strategic transformation and reform to a certain extent.

REVENUE BY BUSINESS SEGMENTS

Management Discussion and Analysis (Continued)

Industrial Park Operation Services

With profound experience and professional expertise in the development and operation of a wide range of industrial parks in various cities for over ten years, and based on the "OVU Industrial Cloud (OVU產業雲)", CEOVU provides systematic operation services for the local government or local state- owned platform companies, including promotion of investment and operation, property management, professional operation of incubators and co-working spaces, group catering, hotels and apartments, and has established a full-life cycle industrial park operation service system led by digitalization.

During the Reporting Period, the Group provided comprehensive operation services such as planning consultation, EPC (Engineering Procurement Construction), property management and regional energy for key projects of local government platform companies and large enterprises, while offering diversified and one-stop industrial park operation services to enterprises stationed in our industrial parks. The operating revenue of the industrial park operation services of the Group was RMB1,107.0 million, representing a decrease of RMB185.0 million as compared with the same period in 2023.

Design and Construction Services

The "P+OEPC" integrated operation services

In recent years, CEOVU has been making vigorous efforts in the promotion of P+OEPC innovative integrated operation business model, based on the needs of investment and operation, to provide whole- process integrated services. In particular, "P" stands for industrial park consulting, "OEPC" stands for whole-process project management in relation to promotion of investment and operation of industrial parks, which are generally welcomed by the local government.

Under the guidance of "one platform and two methodologies (一平台兩方法論)", CEVOU gave full play to the leading and strategic outpost functions of consulting and planning business, provide a full range of consulting services, including strategic planning, industrial planning, spatial planning and operational planning, throughout the business process and life cycle of projects, further develop the sustainable mode of "consulting +", explore more industrial resources, diversify the platform for sharing industrial resources of CEOVU.

CEOVU has accumulated rich strategic emerging industry resources by virtue of its systematic operation capability, and has played the role of cross-regional collaborative investment promotion platform, with the unique "OEPC" model, to provide local governments and large enterprises with whole-process project management service in relation to promotion of investment and operation of industrial parks. During the Reporting Period, the Group signed a new contract for the "OEPC" project in Baoding Network Information Valley with the contracted value amounting to RMB242.4 million.

By optimizing and integrating its industrial chain resources including architectural design institute and construction subsidiaries (namely Jitian Construction, Lidao Technology and Qianbao Design), CEOVU provides EPC integrated design and construction services throughout the whole process from design to tendering and procurement to construction for governments, institutions and related enterprises. During the Reporting Period, the Group's design and construction service income was RMB487.8 million, representing a decrease of RMB114.5 million as compared to the same period of 2023.

8 Interim Report 2024

China Electronics Optics Valley Union Holding Company Limited

Management Discussion and Analysis (Continued)

Property Management Services

On the basis of the established "five-heart" service, Lidao Property has devoted active efforts to transform and upgrade and promote the development of information technology. At present, an ecological system comprising intelligent communities and intelligent industrial parks has been built, and a three-in-one management system comprising "i-Lidao" APP (i麗島 APP), OVU Park Pass (OVU園區通) and EMS Integrated Operation Platform has been established, providing households and enterprises in the industrial parks with real estate services, infrastructure services, financial services, big data services and living facility services.

Lidao Property actively integrates its resources and develops the "whole industry chain" of property services, and owns industry chain companies such as Domainblue Smart* (藍域智能), ChuWei Defense* (楚衛防綫), Quanpai Catering* (全 派餐飲), Industrial Operation* (產業運營), Lidao Human Resources* (麗島人力資源) and Lixiang Life* (麗享生活), which provide consulting and early intervention services for the development and construction companies, intelligent operation and asset management services for industrial parks, professional support services for other property management companies, and all-around and one-stop property management services for property owners.

Lidao Property had continuously won bids on providing property services to projects outside the Group's properties, which include governments, schools, art galleries, office buildings of large corporates, rail transit, and multi-city mobile business offices with its smart service system. During the Reporting Period, the Group had new contracted projects including Three Gorges Base Hangzhou* (三峽基地杭州) and Changlong Mountain Area* (長龍山地區), Hubei Provincial Public Security Department* (湖北省公安廳), Chengdu Sino Microelectronics High-end Integrated Circuit Industrial Park* (成都華微高端 集成電路產業園) and Wuhan Metro* (武漢軌道交通), amounting to RMB45.0 million. During the Reporting Period, the income from the property management services of the Group was RMB376.4 million, representing a decrease of RMB42.0 million as compared to the same period in 2023. At the end of June 2024, the area covered by the property management services of Lidao Property reached 27,696,000 sq.m., representing an increase of 1,982,000 sq.m. or 7.7% as compared to the same period in 2023, of which corporate customer services accounted for 72.53%. In the future, Lidao Property will continue to promote the community management model of intelligent industrial parks and intelligent communities and at that time, the revenue of property management services is expected to grow rapidly.

Property Leasing Services

Founded in August 2015, OVU Maker Star* (OVU創客星) is a professional operator of technology business incubator and co-working space under CEOVU. OVU Maker Star closely follows the national development strategy and is positioned to introduce and cultivate strategic emerging industry clusters for different regions and industries. With scientific and technological innovation services as its core competitiveness, it empowers enterprises to innovate in science and technology and increase their value. Adhering to the purpose of "connecting all resources for entrepreneurs", we have built a technological innovation service system with "1+2+3+4+5+N" as the core framework, covering mass entrepreneurship and innovation ecological creation, multi-level incubation system, accelerated empowerment and comprehensive operating management. It can effectively promote collaborative innovation among large, small and medium-sized enterprises. Operating 35 sites with a total area of 400,000 sq.m. in 21 innovative and entrepreneurial cities across the country such as Shanghai, Shenzhen, Wuhan, Chengdu, Xi'an and Changsha, serving over 2,000 innovation teams and start-ups and gathering over 80,000 innovative businessmen and entrepreneurs, it has become the largest shared office brand in Central China.