Maase Inc.

Segment reporting

In November 2023, the FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The Company adopted this ASU commencing July 1, 2024 and the adoption of the ASU does not have a material effect on its unaudited combined financial statements.

Based on the criteria established by ASC 280, the Company’s CODM has been identified as the Chief Executive Officer, who reviews combined results when making decisions about allocating resources and assessing performance of the Company as a whole and hence, the Company has only one operating segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. The CODM considers year-over-year fluctuations and budget-to-actual variances of these combined results when assessing performance and making operating decisions. The Company manages assets on a combined basis as reported on the unaudited combined balance sheets.

The Company’s CODM uses year-over-year fluctuations as the overall key performance indicator and budget-to-actual variances of these combined results for a single year as the measures of segment profit or loss. The Company operates as one operating and reportable segment, and as such significant segment expenses are consistent with those reported on the unaudited combined statements of operations and comprehensive loss, and include costs of revenue, selling expenses, general and administrative expenses, research and development expenses and net recovery of credit losses. Other segment items that are presented on the unaudited combined statements of operations and comprehensive loss include investment income on short-term investments and derivative financial assets, interest income, interest expenses, other expenses, net, and income tax expense. For significant segment expenses and other segment items incurred during the six months ended December 31, 2025, refer to the Unaudited Combined Statements of Operations and Comprehensive Loss. The Company manages assets on a combined basis as reported on the unaudited combined balance sheets. The Company’s long-lived assets are all located in the PRC.